Document:

FACTORING
      AND SECURITY AGREEMENT

     

    THIS
      FACTORING AND SECURITY AGREEMENT is made as of August 5, 2008, by and between
      Zoo Games, Inc. ("Seller") and Working
      Capital Solutions, Inc. ("Purchaser").

     

    Definitions
      and Index to Definitions.
      The
      following terms used herein shall have the following meaning. All capitalized
      terms not herein defined
      shall have the meaning set forth in the Uniform Commercial Code:

     

    "Advance
      Rate" – 80%

     

    "Avoidance
      Claim" - Any
      claim
      that any payment received by Purchaser from or for the account of an Account
      Debtor is avoidable under the Bankruptcy Code or any other debtor relief
      statute.

     

    "Balance
      Subject to Discount" – The
      difference between the unpaid Face Amount of Purchased Accounts and the Reserve
      Account.

     

    "Base
      Fees" - Primary
      Factoring Fee, Factoring Fee and Discount.

     

    "Chosen
      State” - Illinois.

     

    "Clearance
      Days"- 3
      days
      for checks drawn on banks located within the Chosen State and for all electronic
      funds transfers, and (ii) 3 days for all other payments.

     

    "Closed"
      - A
      Purchased Account is closed upon the first to occur of (i) receipt of full
      payment by Purchaser or (ii) the unpaid Face Amount has been charged to the
      Reserve Account by Purchaser pursuant to the terms hereof.

     

    "Collateral"-
      All
      now
      owned and hereafter acquired personal property and fixtures, and proceeds
      thereof, (including proceeds of proceeds)
      including without limitation Accounts, Chattel Paper, Goods (including Inventory
      and Equipment), Instruments, Investment
      Property, Documents, and General Intangibles.

     

    "Default
      Discount Rate" – The
      Discount Rate plus 5% per annum.

     

    "Discount"
      - The
      product of the Discount Rate multiplied by the average daily Balance Subject
      to
      Discount.

     

    "Discount
      Rate" 0%
      per
      annum in excess of the Prime Rate. "Early
      Termination Date" – Within
      original one year term.

     

    "Early
      Termination Fee" – If
      Seller
      terminates the Agreement prior to the one year term, it will owe Working Capital
      Solutions 3% of
      Maximum Amount Outstanding.

     

    "Eligible
      Account" - An
      Account that is acceptable for purchase as determined by Purchaser in the
      exercise of its reasonable sole credit
      or
      business judgment.

     

    "Events
      of Default" - See
      Section re: Defaults.

     

    "Exposed
      Payments" – Payments
      received by Purchaser from an Account Debtor that has become subject to a
      bankruptcy proceeding, to
      the
      extent such payments cleared said Account Debtor's deposit account within ninety
      days of the commencement of said bankruptcy case.

     

    "Face
      Amount" - The
      face
      amount due on an Account at the time of Purchase.

     

    "Factoring
      Fee" - The
      Factoring Fee Percentage multiplied by the Face Amount of a Purchased Account,
      for each Factoring Fee Period or
      portion thereof, that any portion thereof remains unpaid, computed from the
      date
      on which a Purchased Account was purchased to and including the Late Payment
      Date.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Factoring
      Fee Percentage" 0.6%.

     

    "Factoring
      Fee Period" 10
      days.

     

    "Initial
      Fee" — 0.6%
      for
      first 10 days, 0.6% for each 10 day period thereafter of the Face
      Amount.

     

    "Invoice"
      - The
      document that evidences or is intended to evidence an Account. Where the context
      so requires, reference to an Invoice shall be deemed to refer to the Account
      to
      which it relates.

     

    "Late
      Payment Date" - Ninety
      days from the date on which a Purchased Account was Purchased.

     

    "Maximum
      Amount"- $2,500,000.

     

    "Minimum
      Monthly Factoring Volume” $600,000.

     

    "Misdirected
      Payment Fee"1-
      Fifteen
      percent (15%) of the amount of any payment on account of a Purchased Account
      which has been
      received by Seller and not delivered in kind to Purchaser within five business
      days following the date of receipt by Seller.

     

    "Missing
      Notation Fee" — 15%
      of
      the Face Amount if not corrected by seller within five business
      days.

     

    "Obligations"
      - All
      present and future obligations owing by Seller to Purchaser whether arising
      hereunder or otherwise, and whether arising before, during or after the
      commencement of any Bankruptcy Case in which Seller is a Debtor.

     

    "Parties"
      - Seller
      and Purchaser.

     

    "Purchase
      Date" - The
      date
      on which Seller has been advised in writing that Purchaser has agreed to
      purchase an Account.

     

    "Purchase
      Price" - The
      Face
      Amount of a Purchased Account less the Initial Fee.

     

    "Purchased
      Accounts" - Accounts
      purchased hereunder which have not been closed.

     

    "Repurchased"
      - An
      Account has been repurchased when Seller has paid to Purchaser the then unpaid
      Face Amount.

     

    "Required
      Reserve Amount" - The
      Reserve Percentage multiplied by the unpaid balance of Purchased
      Accounts.

     

    "Reserve
      Account" - A
      bookkeeping account on the books of the Purchaser representing an unpaid portion
      of the Purchase Price, maintained by Purchaser to ensure Seller's performance
      with the provisions hereof.

     

    "Reserve
      Percentage" -20%.

     

    "Reserve
      Shortfall" - The
      amount by which the Reserve Account is less than the Required Reserve
      Amount."

     

    “Schedule
      of Accounts" - A
      form
      supplied by Purchaser from time to time wherein Seller lists such of its
      Accounts as it requests that Purchaser purchase under the terms of this
      Agreement.

     

    Sale;
      Purchase Price; Billing

     

    
      	 	
              Assignment
                and Sale.

            

    

     

    Seller
      shall sell to Purchaser as absolute owner, with full recourse, such of Seller's
      Accounts as are listed from time to time on Schedules
      of Accounts. Each Schedule of Accounts shall be accompanied by such
      documentation supporting and evidencing
      the Account, as Purchaser shall from time to time request.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Purchaser
      may, but need not purchase from Seller such Accounts as Purchaser determines
      to
      be Eligible Accounts, so long as the unpaid balance of Purchased Accounts does
      not exceed, before and after such purchase, the Maximum Amount. Should Purchaser
      reject Eligible Accounts, the parties agree to reduce the Minimum Monthly
      Factoring Volume in a proportionate so as not to penalize Seller.

     

    Purchaser
      shall pay the Purchase Price, less any amounts due to Purchaser from Seller,
      including, without limitation, any amounts due hereof, of any Purchased Account,
      to Seller within two (2) business days of the Purchase Date, whereupon the
      Accounts shall be deemed purchased hereunder.

     

    Billing. Purchaser
      may send a monthly statement to all Account Debtors itemizing their account
      activity during the preceding billing period. All Account Debtors will be
      instructed to make payments to Purchaser.

     

    Reserve
      Account.

     

    Seller
      shall pay to Purchaser on demand the amount of any Reserve
      Shortfall.

     

    Purchaser
      shall pay to Seller any amount by which the Reserve Account exceeds the Required
      Reserve Amount on demand, on the last business day of each week in which the
      demand is made.

     

    Purchaser
      may charge the Reserve Account with any Obligation. Purchaser further agrees
      to
      provide Seller with unlimited access to review the Reserve Account including
      all
      transactions which effect that account. The access shall include on-line access
      to this account.

     

    Purchaser
      may pay any amounts due Seller hereunder by a credit to the Reserve Account;
      

     

    Exposed
      Payments.

     

    Upon
      termination of this Agreement Seller shall pay to Purchaser (or Purchaser may
      retain), to hold in a non-segregated non-interest bearing account the amount
      of
      all Exposed Payments (the "Preference Reserve").

     

    Purchaser
      may charge the Preference Reserve with the amount of any Exposed Payments that
      Purchaser pays to the bankruptcy
      estate of the Account Debtor that made the Exposed Payment, on account of a
      claim asserted under Section 547 of the Bankruptcy Code.

     

    Purchaser
      shall refund to Seller from time to time that balance of the Preference Reserve
      for which a claim under Section 547 of
      the
      Bankruptcy Code can no longer be asserted due to the passage of the statute
      of
      limitations, settlement with the bankruptcy estate of the Account Debtor or
      otherwise.

     

    Purchaser
      may retain the Reserve Account unless and until Seller has executed and
      delivered to Purchaser a general release.

     

    Authorization
      for Purchases. 
      Subject
      to the terms and conditions of this Agreement, Purchaser is authorized to
      purchase Accounts upon telephonic,
      facsimile or other instructions received from anyone purporting to be an
      officer, employee or representative of Seller.

     

    Fees
      and Expenses. 
      Seller
      shall pay to Purchaser:

     

    Discount.
      The
      Discount, on the first day of the month following the month in which it
      accrues.

     

    Factoring
      Fee. The
      Factoring Fee on the date on which a Purchased Account is Closed.

     

    Minimum
      Monthly Fee. Any
      amount by which the Base Fees earned in any month (prorated for partial months)
      is less than the Minimum
      Monthly Fee, to be paid on the first day of the following month.

     

    Misdirected
      Payment Fee. Any
      Misdirected Payment Fee immediately upon its accrual.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Missing
      Notation Fee. The
      Missing Notation Fee on any Invoice that is sent by Seller to an Account Debtor
      that does not contain the notice
      as
      required.

     

    Early
      Termination Fee. The
      Early
      Termination Fee, on the Early Termination Date, in the event that Seller
      terminates this Agreement other
      than as provided.

     

    Out-of-pocket
      Expenses. The
      out-of-pocket expenses directly incurred by Purchaser in the administration
      of
      this Agreement such as wire
      transfer fees, postage and audit fees. Purchaser agrees that Seller shall not
      be
      responsible for the costs associated with an audit
      except upon a default or breach of this Agreement and if an initial audit is
      performed. Seller will thereafter be responsible for all
      audit
      fees.

     

    Repurchase
      Of Accounts. 
      Purchaser may require that Seller repurchase, by payment of the then unpaid
      Face
      Amount thereof, together with any unpaid fees relating to the Purchased Account
      on demand, or, at Purchaser's option, by Purchaser's charge to the Reserve
      Account. Prior to repurchase,
      Purchaser shall endeavor, but shall not be required, to give Seller two days
      notice and afford Seller the opportunity within that period to
      resolve the following prior to repurchase:

     

    Any
      Purchased Account, the payment of which has been disputed by the Account Debtor
      obligated thereon, Purchaser being under no obligation to determine the bona
      fides of such dispute;

     

    Any
      Purchased Account for with Seller has breached any warranty as set
      forth..

     

    Any
      Purchased Account owing from an Account Debtor which (i) in Purchaser's
      reasonable credit judgment has become insolvent or (ii)
      which has indicated an inability or unwillingness to pay the Purchased Account
      when due;

     

    All
      Purchased Accounts upon the occurrence of an Event of Default, or upon the
      termination date of this Agreement; and Any
      Purchased Account that remains unpaid beyond the Late Payment Date.

     

    Security
      Interest.

     

    As
      collateral securing the Obligations, Seller grants to Purchaser a continuing
      first priority security interest in the Collateral, except in those cases where
      Seller cannot due to license restrictions, in which case Purchaser shall not
      be
      obligated to purchase Eligible account.

     

    Notwithstanding
      the creation of this security interest, the relationship of the parties shall
      be
      that of Purchaser and Seller of accounts, and
      not
      that of lender and borrower.

     

    Clearance
      Days. 
      For all
      purposes under this Agreement, Clearance Days will be added to the date on
      which
      Purchaser receives any payment. 

     

    Authorization
      to Purchaser.

     

    Seller
      irrevocably authorizes Purchaser at Seller's expense, to exercise at any time
      any of the following powers until all of the Obligations have been paid in
      full:

     

    Receive,
      take, endorse, assign, deliver, accept and deposit, in the name of Purchaser
      or
      Seller, any and all proceeds of any collateral securing the Obligations or
      the
      proceeds thereof;

     

    Take
      or
      bring, in the name of Purchaser or Seller, all steps, actions, suits or
      proceedings deemed by Purchaser necessary or desirable to effect collection
      of
      or other realization upon Purchaser's Accounts;

     

    Pay
      any
      sums necessary to discharge any lien or encumbrance which is senior to
      Purchaser's security interest in any assets of Seller, which sums shall be
      included as Obligations hereunder;

     

    File
      in
      the name of Seller or Purchaser or both:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Mechanics
      lien or related notices, or

     

    Claims
      under any payment bond, in connection with goods or services sold by Seller
      in
      connection with the improvement
      of realty;

     

    Notify
      any Account Debtor obligated with respect to any Account, that the underlying
      Account has been assigned to Purchaser
      by Seller and that payment thereof is to be made to the order of and directly
      and solely to Purchaser, and communicate directly with Seller's Account Debtors
      to verify the amount and validity of any Account created by Seller.

     

    Notice
      will be given to Seller if such action is taken and cooperate with Seller to
      identify any proceedings such as arbitration or litigation or provide the status
      of any current negotiations. The parties shall use their best efforts to
      cooperate in any proceeding or to effectuate any turnover of material relative
      to any such proceeding,; including but not limited to any formal substitutions
      which may be required relative to the exercise of such rights of the Repurchase
      of any Account.

     

    After
      an
      Event of Default:

     

    Change
      the address for delivery of mail to Seller and to receive and open mail
      addressed to Seller;

     

    Extend
      the time of payment of, compromise or settle for cash, credit, return of
      merchandise, and upon any terms or conditions, any and all Accounts and
      discharge or release any account debtor or other obligor (including filing
      of
      any public record releasing any lien granted to Seller by such account debtor),
      without affecting any of the Obligations;

     

    File
      any
      initial financing statements, with notice to Seller, and amendments thereto
      that:

     

    Indicate
      the collateral as all assets of the Seller or words of similar effect,
      regardless of whether any particular asset comprised
      in the collateral falls within the scope of Article 9 of the UCC, or as being
      of
      an equal or lesser scope
      or
      with greater detail;

     

    Contain
      any other information required by part 5 of Article 9 of the UCC for the
      sufficiency or filing office acceptance
      of any financing statement or amendment, including (i) whether the Seller is
      an
      organization, the type of organization, and any organization identification
      number issued to the Seller and, (ii) in the case of a financing statement
      filed
      as a fixture filing or indicating collateral as extracted collateral or timber
      to be cut, a sufficient description of real property to which the collateral
      relates; and

     

    Contain
      a
      notification that the Seller has granted a negative pledge to the Purchaser,
      and
      that any subsequent lienor may be tortuously interfering with Purchaser's
      rights;

     

    Advises
      third parties that any notification of Seller's Account Debtors will interfere
      with Purchaser's collection rights.

     

    Notice
      will be given to Seller of any such filing.

     

    Seller
      hereby releases and exculpates Purchaser, its officers, employees and designees,
      from any liability arising from any acts under this
      Agreement or in furtherance thereof whether of omission or commission, and
      whether based upon any error of judgment or mistake
      of law or fact, except for willful misconduct. In no event will Purchaser have
      any liability to Seller for lost profits or other
      special or consequential damages.

     

    Seller
      authorizes Purchaser to accept, endorse and deposit on behalf of Seller any
      checks tendered by an account debtor "in full payment"
      of its obligation to Seller. Seller shall not assert against Purchaser any
      claim
      arising therefrom, irrespective of whether such action by Purchaser effects
      an
      accord and satisfaction of Seller's claims, under §3-311 of the Uniform
      Commercial Code, or otherwise.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ACH
      Authorization. 
      In order
      to satisfy any of the Obligations, Seller authorizes Purchaser to initiate
      electronic debit or credit entries through the
      ACH
      system to any deposit account maintained by Seller.

     

    Covenants
      By Seller.

     

    After
      written notice by Purchaser to Seller, and automatically, without notice, after
      an Event of Default, Seller shall not, without the prior
      written consent of Purchaser in each instance, (a) grant any extension of time
      for payment of any of its Accounts, (b) compromise
      or settle any of its Accounts for less than the full amount thereof, (c) release
      in whole or in part any Account Debtor, or (d) grant any credits, discounts,
      allowances, deductions, return authorizations or the like with respect to any
      of
      the Accounts.

     

    From
      time
      to time as requested by Purchaser, but not more than once per year at the sole
      expense of Seller, Purchaser or its designee shall
      have access, during reasonable business hours if prior to an Event of Default
      and at any time on or after an Event of Default, to all premises where
      Collateral is located for the purposes of inspecting (and removing, if after
      the
      occurrence of an Event of Default)
      any of the Collateral, including Seller's books and records, and Seller shall
      permit Purchaser or its designee to make copies
      of
      such books and records or extracts therefrom as Purchaser may request. Without
      expense to Purchaser, Purchaser may use
      any
      of Seller's personnel, equipment, including computer equipment, programs,
      printed output and computer readable media, supplies and premises for the
      collection of accounts and realization on other Collateral as Purchaser, in
      its
      sole discretion, deems appropriate. Seller hereby irrevocably authorizes all
      accountants and third parties to disclose and deliver to Purchaser at Seller's
      expense all financial information, books and records, work papers, management
      reports and other information in their possession relating
      to Seller. Before sending any Invoice to an Account Debtor, Seller shall mark
      same with a notice of assignment as may be required
      by Purchaser.

     

    Seller
      shall pay when due all payroll and other taxes, and shall provide proof thereof
      to Purchaser in such form as Purchaser shall reasonably require.

     

    Seller
      shall not create, incur, assume or permit to exist any lien upon or with respect
      to any assets in which Purchaser now or hereafter holds a security
      interest.

     

    Notwithstanding
      Seller's obligation to pay the Misdirected Payment Fee, Seller shall pay to
      Purchaser on the next banking day
      following the date of receipt by Seller the amount of any payment on account
      of
      a Purchased Account.

     

    Avoidance
      Claims.

     

    Seller
      shall indemnify Purchaser from any loss arising out of the assertion of any
      Avoidance Claim and shall pay to Purchaser on
      demand
      the amount thereof.

     

    Seller
      shall notify Purchaser within two business days of it becoming aware of the
      assertion of an Avoidance Claim. This
      provision shall survive termination of this Agreement.

     

    Account
      Disputes. 
      Seller
      shall notify Purchaser promptly of and, if requested by Purchaser, will settle
      all disputes concerning any Purchased Account, at Seller's sole cost and
      expense. Purchaser may, but is not required to, attempt to settle, compromise,
      or litigate (collectively, "Resolve") the dispute upon such terms, as Purchaser
      in its sole discretion deem advisable, for Seller's account and risk and at
      Seller's sole expense. Upon the occurrence of an Event of Default Purchaser
      may
      Resolve such issues with respect to any Account of Seller.

     

    Representation
      and Warranties. 
      Seller
      represents and warrants that:

     

    It
      is
      fully authorized to enter into this Agreement and to perform hereunder;
This
      Agreement constitutes its legal, valid and binding obligation; and Seller
      is
      solvent and in good standing in the State of its organization.

     

    The
      Purchased Accounts are and will remain:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Bona
      fide
      existing obligations created by the sale and delivery of goods or the rendition
      of services in the ordinary course of Seller's business;

     

    Unconditionally
      owed and will be paid to Purchaser without defenses, disputes, offsets,
      counterclaims, or rights of return or cancellation;

     

    Not
      sales
      to any entity that is affiliated with Seller or in any way not an "arms length"
      transaction.

     

    Seller
      has not received notice or otherwise learned of actual or imminent bankruptcy,
      insolvency, or material impairment of the financial condition of any applicable
      account debtor regarding Purchased Accounts.

     

    Default.

     

    Events
      of Default. The
      following events will constitute an Event of Default hereunder: (a) Seller
      defaults in the payment of any Obligations
      or in the performance of any provision hereof or of any other agreement now
      or
      hereafter entered into with Purchaser, or any warranty or representation
      contained herein proves to be false in any way, howsoever minor, (b) Seller
      or
      any guarantor of the Obligations becomes subject to any debtor-relief
      proceedings, (c) any such guarantor fails to perform or observe any of such
      Guarantor's obligations to Purchaser or shall notify Purchaser of its intention
      to rescind, modify, terminate or revoke any guaranty of the Obligations, or
      any
      such guaranty shall cease to be in full force and effect for any reason
      whatever, (d) Purchaser for any reason, in good faith, deems itself insecure
      with respect to the prospect of repayment or performance of the
      Obligations.

     

    Waiver
      of Notice. SELLER WAIVES ANY REQUIREMENT THAT PURCHASER INFORM SELLER BY
      AFFIRMATIVE ACT OR OTHERWISE OF ANY ACCELERATION OF SELLER'S OBLIGATIONS
      HEREUNDER. FURTHER, PURCHASER'S
      FAILURE TO CHARGE OR ACCRUE INTEREST OR FEES AT ANY "DEFAULT" OR "PAST DUE"
      RATE
      SHALL NOT BE DEEMED A WAIVER BY PURCHASER OF ITS CLAIM
      THERETO.

     

    Effect
      of Default.

     

    Upon
      the
      occurrence of any Event of Default, in addition to any rights Purchaser has
      under this Agreement or applicable law, Purchaser
      may immediately terminate this Agreement, at which time all Obligations shall
      immediately become due and payable without notice.

     

    Discount
      shall accrue and be payable at the Default Discount Rate on the Balance Subject
      to Discount.

     

    Account
      Stated. 
      Purchaser shall render to Seller a statement setting forth the transactions
      arising hereunder. Each statement shall be considered correct and binding upon
      Seller as an account stated, except to the extent that Purchaser receives,
      within sixty (60) days after the mailing of such statement, written notice
      from
      Seller of any specific exceptions by Seller to that statement, and then it
      shall
      be binding against Seller as to any items to which it has not
      objected.

     

    Amendment
      and Waiver.
      Only a
      writing signed by all parties hereto may amend this Agreement. No failure or
      delay in exercising any right hereunder
      shall impair any such right that Purchaser may have, nor shall any waiver by
      Purchaser hereunder be deemed a waiver of any default
      or breach subsequently occurring. Purchaser's rights and remedies herein are
      cumulative and not exclusive of each other or of any rights or remedies that
      Purchaser would otherwise have.

     

    Termination;
      Effective Date.

     

    This
      Agreement will be effective for one year from the date on which it has been
      signed by the Parties, and shall be automatically extended for successive
      six month periods unless Seller shall provide written notice to Purchaser of
      its
      intention to terminate on a date other than an anniversary
      date (an "Early Termination Date") at least ninety (90) days prior to the next
      anniversary date hereof, whereupon this Agreement shall
      terminate on the Early Termination Date.

     

    Purchaser
      may terminate this Agreement by giving Seller thirty-day's prior written notice
      of termination, whereupon this Agreement shall terminate
      on the earlier date of the date of termination or on the anniversary date
      hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    No
      Lien Termination without Release.
      In
      recognition of the Purchaser's right to have its attorneys' fees and other
      expenses incurred in connection
      with this Agreement secured by the Collateral, notwithstanding payment in full
      of all Obligations by Seller, Purchaser shall not be
      required to record any terminations or satisfactions of any of Purchaser's
      liens
      on the Collateral unless and until Seller and all Guarantors has executed and
      delivered to Purchaser a general release. Seller
      understands that this provision constitutes a waiver of its rights under
§9-513
      of
      the UCC.

     

    Conflict.
      Unless
      otherwise expressly stated in any other agreement between Purchaser and Seller,
      if a conflict exists between the provisions of this
      Agreement and the provisions of such other agreement, the provisions of this
      Agreement shall control.

     

    Severability.
      In
      the
      event any one or more of the provisions contained in this Agreement is held
      to
      be invalid, illegal or unenforceable in any respect,
      then such provision shall be ineffective only to the extent of such prohibition
      or invalidity, and the validity, legality, and enforceability
      of the remaining provisions contained herein shall not in any way be affected
      or
      impaired thereby.

     

    Enforcement.
      This
      Agreement and all agreements relating to the subject matter hereof is the
      product of negotiation and preparation by and among
      each party and its respective attorneys, and shall be construed
      accordingly.

     

    Relationship
      of Parties.
      The
      relationship of the parties hereto shall be that of Seller and Purchaser of
      Accounts, and Purchaser shall not be a fiduciary of the Seller, although Seller
      may be a fiduciary of the Purchaser.

     

    Attorneys'
      Fees.
      Seller
      agrees to reimburse Purchaser on demand for:

     

    The
      actual amount of all costs and expenses, including reasonable attorneys' fees,
      which Purchaser has incurred in the occurrence of an Event of Default and
      for:

     

    The
      actual negotiation and preparation, of this Agreement and all supporting
      documents.

     

    The
      enforcement of any act or provision of this Agreement.

     

    Protecting,
      preserving or enforcing any lien, security interest or other right granted
      by
      Seller to Purchaser or arising under applicable law, whether or not suit is
      brought, including but not limited to the defense of any Avoidance
      Claims;

     

    The
      actual costs, including photocopying (which, if performed by Purchaser's
      employees, shall be at the rate of $.10/page), travel, and attorneys' fees
      and
      expenses incurred in complying with any subpoena or other legal process in
      any
      way relating to Seller. This provision shall survive termination of this
      Agreement.

     

    The
      actual amount of all costs and expenses, including attorneys' fees, which
      Purchaser may incur in enforcing this Agreement and any documents prepared
      in
      connection herewith, or in connection with any federal or state insolvency
      proceeding commenced by or against Seller, including those (i) arising out
      the
      automatic stay, (ii) seeking dismissal or conversion of the bankruptcy
      proceeding or (ii) opposing confirmation of Seller's plan there
      under.

     

    Entire
      Agreement.
      No
      promises of any kind have been made by Purchaser or any third party to induce
      Seller to execute this Agreement. No course
      of
      dealing, course of performance or trade usage, and no parole evidence of any
      nature, shall be used to supplement or modify any terms of this
      Agreement.

     

    Choice
      of Law.
      This
      Agreement and all transactions contemplated hereunder and/or evidenced hereby
      shall be governed by, construed under, and
      enforced in accordance with the internal laws of the Chosen State.

     

    Jury
      Trial Waiver.
      IN RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY RESULT FROM
      A JURY
      TRIAL, THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
      ACTION OR CAUSE OF ACTION (A)
      ARISING
      HEREUNDER, OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
      DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT HERETO, IN EACH
      CASE
      WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT
      OR
      TORT OR OTHERWISE; AND EACH PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE ANY
      SUCH ACTION IN WHICH A
      JURY
      TRIAL HAS BEEN
      WAIVED WITH ANY OTHER ACTION IN WHICH A
      JURY
      TRIAL CANNOT BE OR HAS NOT BEEN WAIVED; AND EACH
      PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE
      OF
ACTION
      SHALL BE DECIDED BY COURT TRIAL WITHOUT A
      JURY,
      AND THAT ANY PARTY HERETO MAY FILE AN
      ORIGINAL
      COUNTERPART OR A
      COPY
      OF THIS SECTION WITH ANY COURT AS
      WRITTEN
      EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT
      TO
      TRIAL BY JURY.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Venue;
      Jurisdiction.
      Any
      suit, action or proceeding arising hereunder, or the interpretation, performance
      or breach hereof, shall, if Purchaser so elects, be instituted in any court
      sitting in the Chosen State, in the city in which Purchaser's chief executive
      office is located, or if none, any court sitting in the Chosen State (the
      "Acceptable Forums"). Seller agrees that the Acceptable Forums are convenient
      to
      it, and submits to the
      jurisdiction of the Acceptable Forums and waives any and all objections to
      jurisdiction or venue. Should such proceeding be initiated in any
      other
      forum, Seller waives any right to oppose any motion or application made by
      Purchaser to transfer such proceeding to an Acceptable
      Forum.

     

    Service
      of Process. 
      Seller
      agrees that Purchaser may effect service of process upon Seller by regular
      mail
      at the address set forth in this Agreement,
      or at the option of Purchaser if Seller is a Registered Organization, by service
      upon Seller's agent for the service of process.

     

    Assignment.
      Purchaser may assign its rights and delegate its duties hereunder. Upon such
      assignment, Seller shall be deemed to have agreed to such
      assignee and shall owe the same obligations to such assignee and shall accept
      performance hereunder by such assignee as if such assignee
      were Purchaser.

     

    Counterparts.
      This
      Agreement may be signed in any number of counterparts, each of which shall
      be an
      original, with the same effect as if all signatures
      were upon the same instrument. Delivery of an executed counterpart of the
      signature page to this Agreement by facsimile shall be
      effective as delivery of a manually executed counterpart of this Agreement,
      and
      any party delivering such an executed counterpart of the signature
      page to this Agreement by facsimile to any other party shall thereafter also
      promptly deliver a manually executed counterpart of this
      Agreement to such other party, provided that the failure to deliver such
      manually executed counterpart shall not affect the validity, enforceability,
      or
      binding effect of this Agreement.

     

    Notice.

     

    All
      notices required to be given to any party other than Purchaser shall be deemed
      given upon the first to occur of (i) deposit thereof in a
      receptacle under the control of the United States Postal Service, (ii)
      transmittal by electronic means to a receiver under the control
      of such party; or (iii) actual receipt by such party or an employee or agent
      of
      such party. All notices to Purchaser hereunder
      shall be deemed given upon actual receipt by a responsible officer of Purchaser.
      For the purposes hereof, notices hereunder
      shall be sent to the following addresses, or to such other addresses as each
      such party may in writing hereafter indicate:

    

      SELLER

      

      
        	
                Address:

              	
                700
                  Liberty Place

              
	 	
                Camden,
                  New Jersey 08081

              
	
                Officer:

              	
                Susan
                  Kain-Jurgensen

              
	
                Fax
                  Number:

              	 

      

      

      PURCHASER

      

      
        	
                Address:

              	
                2400
                  East Devon Ave. Suite 211

              
	 	
                Des
                  Plaines, IL 60018

              
	
                Officer:

              	
                John
                  Neifing

              
	
                Fax
                  Number:

              	
                847-297-3520

              

      

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

      IN
        WITNESS WHEREOF, the Parties have executed this agreement on the day and
        year
        first above written.

    

    
       

      SELLER:

      
        	 	
                By:

              	 
                	 
	 	
                Name:

              	 	 
                
	 	
                Title:

              	 	 
                
	
                PURCHASER:

              	
                By:

              	 
                	
                /s/
                  Susan Kain

              
	 	
                Name:

              	 	
                Susan
                  Kain

              
	 	
                Title:

              	 	
                  
                  PresidentPromissory
        Note

      

      $647,830.00

      January
        1, 2007

      Sewell,
        NJ

      

      WHEREAS,
        Stuart Kaye was the founder and shareholder of Destination Software, Inc.,
        a New
        Jersey Corporation, a recognized industry leader in the licensing, development,
        publication, manufacture and sale of certain video related products worldwide;
        and

      

      WHEREAS,
        Stuart Kaye was an integral part of the development of Destination Software,
        Inc., as a worldwide leader in the licensing, development, publication and
        sale
        Of video related products; and

      

      WHEREAS,
        Stuart Kaye was a shareholder in Destination Software, Inc., a New Jersey
        Corporation, having acquired 90 shares in the Company based upon his association
        and leadership within the Company; and

      

      WHEREAS,
        prior to his death, Stuart Kaye had transferred title to the shares to Stuart
        Kaye and Debra Kaye, husband and wife, as community property with rights
        of
        survivorship; and

      

      WHEREAS,
        Stuart Kaye and Debra Kaye did continue to own such shares of stock at the
        time
        of his death on or about May 21, 2006; and

      

      WHEREAS,
        prior to his death, the Shareholders of Destination Software, Inc., had
        discussed and subsequently implemented a Shareholders Agreement which provides
        for the purchase of all outstanding common stock from the Estate of a deceased
        shareholder; and

      

      WHEREAS,
        Debra Kaye is the wife of Stuart Kaye has
        duly
        survived him:
        and

      

      WHEREAS,
        pursuant to the formula established for the purchase of the shares of common
        stock of a deceased shareholder, Destination Software, Inc., has agreed to
        pay
        to Debra Kaye, individually and as surviving spouse of Stuart Kaye, deceased,
        in
        exchange for the immediate return, transfer, assignment and conveyance of
        the
        ninety (90) shares of common stock owned by Stuart Kaye and Debra to Destination
        Software, Inc., upon execution of this Note and payment of the initial payment
        hereunder which shall constitute payment in full of all
        claims
        including any claims based upon testate or intestate succession or any claims
        which may arise or be due to the Estate of Stuart Kaye; and

      

      WHEREAS,
        based upon the within
        valuation
        formula, the parties agree that Destination Software, Inc., is obligated
        to pay
        to Debra Kaye, Individually as the surviving spouse of Stuart Kaye, deceased,
        the sum of Six Hundred and Forty Seven Thousand,
        Eight Hundred and Thirty ($647,830.00) Dollars in full payment of all common
        stock owned or otherwise controlled by Stuart Kaye and Debra Kaye which is
        represented to be ninety (90) shares ofcommon stock issued to Stuart Kaye
        and
        Debra Kaye, husband and wife, as community property with rights of survivorship
        in Destination Software, Inc.; and

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      WHEREAS,
        the parties agree that upon the execution of this Note by Destination Software,
        Inc., and the payment of the initial amount under this Note, Debra Kaye,
        as the
        surviving spouse of Stuart Kaye, deceased, will deliver to Destination Software,
        Inc., all shares of common stock owned by the late Stuart Kaye and Debra
        Kaye,
        represented to be ninety (90) shares to Destination Software, Inc., or execute
        such documents as may be required to evidence the transfer or conveyance
        of all
        outstanding shares held by Stuart Kaye and Debra Kaye to Destination Software,
        Inc., and

      

      WHEREAS,
        in consideration for making this payment, Debra Kaye, as the surviving spouse
        of
        Stuart Kaye, agrees to indemnify and hold harmless Destination Software,
        Inc.,
        from any and all claims or assertions relative to the ownership of said stock
        from any heir, beneficiary, personal representative, administrator, executor
        or
        claimant under the Estate of Stuart Kaye, deceased further

      

      1.
        TERMS
AND
        CONDITIONS: DESTINATION
        SOFTWARE ("Obligor"), a New Jersey Corporation, with a principal business
        address of 137 Hurffville Cross- Keys Road, Sewell, New Jersey 08080, for
        value
        received, hereby promises to pay to Debra Kaye, individually and as surviving
        spouse of Stuart Kaye and the Estate of Stuart Kaye, deceased, ("Obligee"),
        with
        a principal address of30422 Le Port, Laguna Niguel, California 92677, in
        lawful
        money of the United States at the within address, the principal sum of Six
        Hundred and Forty Seven Thousand, Eight Hundred and Thirty Dollars
        ($647,830.00), together with all accrued but unpaid nominal interest fixed
        at
        the rate of 2.95 %
        thereon,
        in accordance with the following terms:

      

      On
        or
        before January 15,2007, Obligor shall pay to Obligee the sum of Forty Seven
        thousand, Eight Hundred and Thirty Dollars ($47,830.00) as an initial payment
        under this Note.

      

      Within
        ten (10) days following the receipt of this initial payment, Obligee agrees
        to
        deliver, transfer, assign and convey to the Obligor, all shares or certificates
        in the common stock in Destination Software, Inc., owned by Stuart Kaye and
        Debra Kaye and hereafter releases on behalf herself and on behalf of Stuart
        Kaye, deceased any and all future claims or rights to the aforesaid common
        stock, including but not limited too, the further right to transfer or convey,
        the further right to participate in the management and control of Destination
        Software, Inc., including the right to vote the within shares of common stock,
        the right to participate in the day to day operation ofthe Destination Software,
        Inc., the right to convey, transfer or otherwise pledge or hypothecate the
        common stock with the intent that Obligee will irrevocably renounce all claims
        to the within common stock.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Thereafter,
        commencing on or about February 15, 2007, Obligor agrees to pay to Obligee
        the
        sum of Six Hundred Thousand Dollars ($600,000.00) Dollars, inclusive of
        principal and interest, in monthly increments of Ten Thousand Dollars
        ($10,000.00) per month for sixty-five (65) months until paid in full, with
        any
        balance and any accrued interest to be paid in full prior to June
        15,2012.

      

      2. 
        SECURITY: The Note shall be secured only by the full faith and credit of
        the
        Obligor. No other security interest shall be provided to Obligee. Obligor
        agrees
        to make all payments called for under the within Note. In
        the
        event
        of the sale of Destination Software, Inc., all sums due and owing under this
        Note shall become immediately due and payable to the Obligee.

      

      3.
         PAYMENT
        SCHEDULE:
        Obligor
        shall make payments ofprincipal and interest in accordance with the terms
        set
        forth above. Obligor understands that the within payments are principal and
        interest. At the conclusion of all payments set forth herein, Obligor shall
        have
        paid Obligee all sums due and owing under the terms of this Note. The
final
        payment
        under this Note, will discharge the obligations of the Obligor and shall
        satisfy
        all sums due and owing between the parties in exchange for the outright
        conveyance of the common stock. Thereafter, neither party shall have any
        claim
        against the other.. Obligor shall pay the principal and interest payment
        in
        accordance with the following schedule:

      

      (a)
        Obligor shall pay to the order of the Obligee, Debra Kaye, individually and
        as
        the surviving spouse of Stuart Kaye, its successors or assigns at 30422 LaPort,
        Laguna Niguel, California 92677 or at any other place the Obligee designates
        in
        writing, certain monthly amounts limited to principal and interest ofthe
        principal balance in the sum of$647,830.00, in accordance with the schedule
        set
        forth above.

      

      (ii)
        All
        sums
        due on this obligation, inclusive of principal and interest payments, late
        charges, or other charges shall be due and payable on or before June 15,
        2012,
        unless modified by the agreement of the parties hereto.

      

      (iii)
        Notwithstanding
        anything to the contrary herein, Obligee reserves the right to pre-pay the
        principal and interest on this Note at any time during the term of this
        obligation. Any prepayment shall be made without any penalty or additional
        surcharge. Should Obligor desire to make a pre-payment, in whole or in part
        of
        any of the principal sum due, Obligor shall so advise Obligee in writing
        of any
        pre-payment. Thereafter, such pre-payment shall be applied as follows: (a)
        accrued late charges; (b)
        accrued
        or delinquent interest payments; (c) to any accrued loan charges and (d)
        to the
        principal balance due under the terms hereunder.

      

      (iv)
        The
        annual interest rate for this Note is computed on a yearly basis, which is
        by
        applying the ratio of the annual interest rate over a calendar year by the
        outstanding principal balance. The interest rate is fixed and applied equally
        to
        the unpaid principal
        for the term of the Note which the parties agree is at a nominal rate of
        interest which shall be fixed at 2.95 %..

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      (4)
         LATE
        CHARGES- Ifany
        payment which is to be made hereunder is not paid within fifteen (15) days
        after
        the date when due, the Obligor shall pay to the Obligee a late charge offive
        cents ($0.05) for each dollar which is overdue for the purpose of defraying
        the
        expenses incident to handling such delinquency. The provision shall not be
        deemed to affect or lengthen the time to cure any default
        hereunder.

      

      (5)  EVENTS
        OF DEFAULT: The
        occurrence of any one or more of the following events shall, at the sole
        discretion of the Obligee, constitute Events of Default hereunder:

      

      (a)
        The
        failure of the Obligor to pay any installment required
        pursuant
        to the terms of this Note when same is payable;

      

      (b)
        The
        failure of the Obligor to pay any other sum required to be paid under this
        Note:

      

      (c)
        The
        failure of the Obligor to perform any covenant or agreement in this Note
        or the
        failure of the Obligor to discharge its obligations as set forth in the within
        Note;

      

      (d)
        Any
        assignment for the benefit of Obligor's creditors, or the filing of any other
        proceeding s by Obligor or by any other person or entity rendering Obligor
        subject to a proceeding in insolvency or in bankruptcy, either for liquidation
        or for reorganization;

      

      (e)
        In
        the case of the Obligee, the failure of the Obligee to deliver, assign, transfer
        or convey all common stock certificates to Destination Software, Inc., or
        to
        execute such documents necessary to deliver, assign, transfer, convey, release,
        cancel, discharge or otherwise void the stock certificates issued by Destination
        Software, Inc., to Stuart Kaye and Debra Kaye.

      

      Notwithstanding
        anything herein otherwise stated, Obligor may cure an Event of Default: (a)
        if
        the default consists of a failure to pay money, by payment of such sum within
        ten (10) days from such date when the sum was due and payable; or (b)
        if
        the
        default consists of anything other than a failure to pay a sum of money,
        by
        correction thereofto the Obligee's satisfaction within fifteen (15) days
        after
        the occurrence of such default. Notwithstanding anything herein otherwise
        stated, Obligee may cure

      

      (6).  REMEDIES
        UPON DEFAULT: Should
        any Event of Default occur and not be cured by the Obligor in accordance
        with
        the last paragraph of Paragraph 5, than the entire unpaid balance of the
        principal sum with interest accrued thereon at the rates hereinbefore specified
        to the date of said default, and thereafter at the rate of5% above the interest
        rate in effect at the time of such default, and all other sums due by Obligor
        hereunder,
        at the option of the Obligee and without notice to Obligor, shall become
        due and
        payable immediately. Payments of the same may be enforced and recovered in
        whole
        or in part at any time by one or more of the remedies provided to the Obligee.
        Following the date of said default, interest at the above stated rate shall
        accrue and compound on the principal due and on all interest, charges,
        assessments, costs and fees than or thereafter due hereunder. In
        such
        case, Obligee may also recover all
        reasonable
        costs of suit and other expenses in connection therewith ( including, but
        not
        limited to, costs and attorney's fees incurred in any insolvency or bankruptcy
        proceeding, or any negotiations related thereto, involving Obligee or any
        other
        person or entity if such proceeding shall in any way jeopardize Obligee's
        rights
        under this Note or in any way limit or impair Obligee's ability to enforce
        a
        claim

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      (7). 
        RESTRICTIONS ON TRANSFER-
        Without
        the prior written consent of the Obligee, which consent shall not be
        unreasonably withheld, Obligor will not sell or transfer, or permit or suffer
        to
        be sold or transferred, voluntarily or by operation of law the within Note
        or
        the obligations arising thereof. Any violation of or failure to comply with
        the
        provisions of this section shall constitute an immediate Event of Default
        hereunder.

      

      (8).
         RIGHTS
        AND REMEDIES CUMULATIVE-
        The
        rights and remedies of the Obligee as provided in the Note shall be cumulative
        and concurrent and may be pursued separately, successively or together against
        Obligor, at the sole discretion of Obligee, and may be exercised as often
        as
        occasion therefore shall arise. The failure to exercise such right or remedy
        shall in no event be construed as a waiver or release thereof. Any failure
        by
        Obligee to insist upon strict performance by the Obligor of any of the terms
        or
        conditions of this Note shall not be deemed to be a waiver of any of the
        terms
        or provisions thereof; and Obligee shall have the right to insist upon strict
        performance by the Obligee at any time.

      

      (9). 
        WAIVERS:

      

      (a)
        Obligor hereby waives and releases (1) all procedural errors, defects and
        imperfections in any proceeding instituted by Obligee under this Note; (2)
        all
        benefit that might accrue to Obligor by virtue of any present or future law;
        (3)
        all notices not otherwise specifically required of Obligor's default on the
        terms herewith.

      

      (b)
        Obligee shall by any act of omission or commission be deemed to waive any
        of her
        rights or remedies hereunder unless such waiver be in writing and signed
        by
        Obligor and than only to the extent specifically set forth therein. A waiver
        on
        one event shall not be construed as continuing or as a bar to or waiver of
        such
        right or remedy on a subsequent event.

      

      (10).
        REPLACEMENT
        DOCUMENTS-
        Upon
        receipt of a written request by the Obligee as to the loss, theft, destruction
        or mutilation of the Note and, in the case of any such destruction or
        mutilation, upon surrender and cancellation of such Note or other document(s),
        the Obligor will issue, in lieu thereof, a replacement Note or other document(s)
        in the same principal amount and otherwise of like tenor.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (11). 
        DEFINITIONS-
        The
        words "Obligor" and "Obligee" include singular and plural, individual or
        corporation, and the respective heirs, executors, administrators successors
        and
        assigns of Obligor or Obligee, as the case may be. The use ofany gender applies
        to all genders. If more than one party is named as
        Obligor,
        the obligation hereunder of each party is joint and several.

      

      (12). 
        GOVERNING LAW- The
        within Note and Mortgage are governed pursuant to the laws of the State of
        New
        Jersey. The sole jurisdiction and venue for actions related to this Agreement
        shall be the state and federal courts located in New Jersey.

      

      (13) 
        PAYMENT:
        Upon
        payment in full
        of
        all
        principal and interest payable hereunder, this Note shall be surrendered
        to
        Obligor for cancellation.

      

      (14)
         MODIFICATION:
        This
        Note may not be changed, modified, amended or terminated other than by a
        written
        instrument executed by the Obligor and Obligee.

      

      (15) 
        NOTICES:
        Except
        as otherwise expressly provided in this Agreement, all notices or other
        communications required or desired to be sent to either party hereto shall
        be in
        writing and shall be sent by registered or certified mail, postage prepaid,
        return receipt requested, by telegram, charges prepaid, overnight carrier,
        or by
        facsimile. The addresses for all notices required to be sent to Obligor or
        Obligee, respectively, shall be at the mailing address or facsimile number
        stated below. Either party may change such address or facsimile number by
        notice
        in writing to the other party.

      "Obligor":

      

      Destination
        Software Inc.

      137
        Hurffville Cross-Keys Road

      Sewell,
        New Jersey 08080

      Attn:
        Susan Kain

      Facsimile:
        856 262-0066

      

      "Obligee":

      Debra
        Kaye

      30422
        Le
        Port

      Laguna
        Niguel, California 92677

      Attn:
        Debra Kaye

      

      16) 
        SEVERABILITY:
        The
        provisions of this Note are intended by Obligor and Obligee to be severable
        and
        divisible and the invalidity or unenforceability of a provision or term herein
        shall not invalidate or render unenforceable the remainder of this Note or
        any
        part thereof. If
        any
        provision of this Note is held by a court of competent jurisdiction to be
        illegal, invalid or unenforceable, that provision shall be limited or eliminated
        to the minimum extent necessary so that this Note shall otherwise remain
        in full
        force and effect and enforceable.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      17. 
        INDEMNIFICATION:
        For and
        in consideration of the terms of this Note, Debra Kaye, Individually and
        as the
        surviving spouse of Stuart Kaye agrees to indemnify and hold harmless
        Destination Software for any claims, assertions made alleged or otherwise
        brought by any beneficiary, heir, personal representative, executor or
        administrator of the Estate of Stuart Kaye.

      

      IN
        WITNESS WHEREOF, the Obligor has caused this Note to be duly executed and
        delivered on the day and year first written above. The Obligee has executed
        and
        delivered as their act for the purposes herein stated specifically with respect
        executing any documents relative to the return of all
        stock
        certificates or the appropriate Releases thereto and for the Indemnification
        as
        set forth in Paragraph 17 herein.

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