Document:

Exhibit
10.17

    

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXCHANGEABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

     

    FORM
OF 10% SECURED PROMISSORY NOTE

     

    
      	
              $___________

            	
              ____________,
      2010

            

    

    

    FOR VALUE
RECEIVED, rVUE, Inc., a Delaware corporation (the “Maker”), with its primary
offices located at 900 S.E. 3rd Avenue, Third Floor Fort Lauderdale, FL 33316,
promises to pay to the order of ____________________, (the “Payee”) or his or
its registered assigns (with the Payee, the “Holder”), upon the terms set forth
below, the principal sum of ____________ Dollars ($________) plus interest on
the unpaid principal sum outstanding at the rate of 10% per annum (this “Note”). Defined terms
not otherwise defined herein shall have the meanings ascribed to such terms in
that certain note purchase agreement of even date herewith among the Maker, the
Holder and certain other holders of Notes substantially identical to this Note
(the “Purchase
Agreement”).

     

    1.           Payments.

     

    (a)           Unless
an Event of Default shall have previously occurred and be continuing or this
Note shall be exchanged by the Holder for securities in connection with the
Subsequent Financing (as defined in the Purchase Agreement) pursuant to Section
3, the full amount of principal and accrued interest under this Note shall be
due and payable on a date (the “Maturity Date”) that
shall be the earlier to occur of: (i) September 2, 2010 or (ii) the date the
Maker (or any successor in interest of the Maker) consummates the Subsequent
Financing  in an amount that Maker realizes at least $1.0 million of
gross proceeds therefrom.

     

    (b)           The
Maker shall pay interest to the Holder on the aggregate and then outstanding
principal amount of this Note at the rate of 10% per annum, payable in arrears
on the earlier of (i) the Maturity Date or (ii) acceleration of this Note
following an Event of Default pursuant to Section 3(b). Interest on this Note
shall commence to accrue as of the date of acceptance by the Company of the
Purchase Agreement as executed and delivered by the Holder (the “Original Issue
Date”).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (c)           Interest
shall be calculated on the basis of a 360-day year, consisting of twelve 30
calendar day periods, and shall accrue monthly commencing on the Original Issue
Date until payment in full of the outstanding principal, together with all
accrued and unpaid interest, and other amounts which may become due hereunder,
has been made. Interest hereunder will be paid to the Person in whose name this
Note is registered on the records of the Maker regarding registration and
transfers of this Note.

     

    (d)           All
overdue accrued and unpaid principal and interest to be paid hereunder shall
entail a late fee at the rate of 16% per annum (or such lower maximum amount of
interest permitted to be charged under applicable law) which will accrue daily,
from the date such principal and/or interest is due hereunder through and
including the date of payment. Except as otherwise set forth in this Note, the
Maker may not prepay any portion of the principal amount of this Note without
the 10 Business Day advance written notice to the Holder.

     

    2.           Secured Obligation.
The obligations of the Maker under this Note are secured by certain assets of
the Maker pursuant to that certain Security Agreement, dated as of the date
hereof, by and among the Maker and the secured parties signatory
thereto.

     

    3.           Events of
Default.

     

    (a)           “Event of Default”,
wherever used herein, means any one of the following events (whatever the reason
and whether it shall be voluntary or involuntary or effected by operation of law
or pursuant to any judgment, decree or order of any court, or any order, rule or
regulation of any administrative or governmental body):

     

    (i)           any
default in the payment of the principal of, or the interest on, this Note, as
and when the same shall become due and payable;

     

    (ii)           Maker
shall fail to observe or perform any obligation or shall breach any term or
provision of this Note and such failure or breach shall not have been remedied
within ten (10) Business Days after the date on which notice of such failure or
breach shall have been delivered (other than those occurences described in other
provisions of this Section 3 for which a different grace or cure period is
specified, or for which no cure period is specified and which constitute
immediate Events of Default);

     

    (iii)           Maker
shall fail to observe or perform any of its material obligations owed to the
Holder or any other material covenant, agreement, representation or warranty
contained in, or otherwise commit any material breach hereunder or in any other
agreement executed in connection herewith;

     

    (iv)           Maker
shall commence, or there shall be commenced against the Maker a case under any
applicable bankruptcy or insolvency laws as now or hereafter in effect or any
successor thereto, or the Maker commences any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency or liquidation or similar law of any jurisdiction whether now or
hereafter in effect relating to the Maker, or there is commenced against the
Maker any such bankruptcy, insolvency or other proceeding which remains
undismissed for a period of sixty (60) days; or the Maker is adjudicated
insolvent or bankrupt; or any order of relief or other order approving any such
case or proceeding is entered; or the Maker suffers any appointment of any
custodian or the like for it or any substantial part of its property which
continues undischarged or unstayed for a period of 60 days; or the Maker makes a
general assignment for the benefit of creditors; or the Maker shall fail to pay,
or shall state that it is unable to pay, or shall be unable to pay, its debts
generally as they become due; or the Maker shall call a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its
debts; or the Maker shall by any act or failure to act expressly indicate its
consent to, approval of or acquiescence in any of the foregoing; or any
corporate or other action is taken by the Maker for the purpose of effecting any
of the foregoing;

    
      
         

      

      
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    (v)           Maker
shall default in any of its respective obligations under any other Note or any
mortgage, credit agreement or other facility, indenture agreement, factoring
agreement or other instrument under which there may be issued, or by which there
may be secured or evidenced any indebtedness for borrowed money or money due
under any long term leasing or factoring arrangement of the Maker, whether such
indebtedness now exists or shall hereafter be created and such default shall
result in indebtedness aggregating more than $10,000 becoming or being declared
due and payable prior to the date on which it would otherwise become due and
payable; or

     

    (vi)           except
in connection with the Subsequent Financing or the Reverse Merger Transaction,
the Maker shall (a) be a party to any Change of Control Transaction (as defined
below), (b) agree to sell or dispose all or in excess of 50% of its assets in
one or more transactions (whether or not such sale would constitute a Change of
Control Transaction), (c) redeem or repurchase more than a de minimis number of
shares of Common Stock or other equity securities of the Maker, or (d) make any
distribution or declare or pay any dividends (in cash or other property, other
than common stock) on, or purchase, acquire, redeem, or retire any of the
Maker’s capital stock, of any class, whether now or hereafter outstanding.
“Change of Control
Transaction” means the occurrence of any of: (i) an acquisition after the
date hereof by an individual or legal entity or “group” (as described in Rule
13d-5(b)(1) promulgated under the Securities Exchange Act of 1934, as amended)
of effective control (whether through legal or beneficial ownership of capital
stock of the Maker, by contract or otherwise) of in excess of 51% of the voting
securities of the Maker, (ii) a replacement at one time or over time of more
than one-half of the members of the Maker’s board of directors which is not
approved by a majority of those individuals who are members of the board of
directors on the date hereof (or by those individuals who are serving as members
of the board of directors on any date whose nomination to the board of directors
was approved by a majority of the members of the board of directors who are
members on the date hereof), (iii) the merger of the Maker with or into another
entity that is not wholly owned by the Maker, consolidation or sale of 33% or
more of the assets of  the Maker in one or a series of related
transactions, or (iv) the execution by the Maker of an agreement to which the
Maker is a party or by which it is bound, providing for any of the events set
forth above in (i), (ii) or (iii).

     

    (b)           If
any Event of Default occurs and shall be continuing, the full principal amount
of this Note, together with all accrued interest thereon, shall become, at the
Holder’s election, immediately due and payable in cash.

     

    (c)           The
Holder need not provide and the Maker hereby waives any presentment, demand,
protest or other notice of any kind, and the Holder may immediately and without
expiration of any grace period enforce any and all of its rights and remedies
hereunder and all other remedies available to it under applicable law. Such
declaration may be rescinded and annulled by the Holder at any time prior to
payment hereunder. No such rescission or annulment shall affect any subsequent
Event of Default or impair any right consequent thereon.

    
      
         

      

      
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    4.           Exchange of Note. The
Holder of this Note may, at his or its sole option, elect by written notice to
the Company given at any time on or before the Maturity Date, to exchange any or
all of the face amount of the Notes, plus any accrued and unpaid interest
thereon, into the applicable dollar amount of any other securities issued by the
Company in connection with the Subsequent Financing. Upon such exchange, this
Note will be immediately cancelled upon delivery of the securities.

     

    5.           Reverse Merger Transaction
Exchange.  The Holder of this Note may, at his or its sole
option, elect by written notice to the Company and in accordance with the
Purchase Agreement, exchange any or all of the face amount of the Notes, plus
any accrued and unpaid interest thereon, into the applicable dollar amount of
any other securities issued by the Company in connection with a Reverse Merger
Transaction. Upon such exchange, this Note will be immediately cancelled upon
delivery of the securities.

     

    6.           Negative Covenants.
So long as any portion of this Note is outstanding, the Maker will not directly
or indirectly:

     

    (a)           other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or
suffer to exist any indebtedness for borrowed money of any kind, including but
not limited to, a guarantee, on or with respect to any of its property or assets
now owned or hereafter acquired or any interest therein or any income or profits
therefrom;

     

    (b)           other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any
liens of any kind, on or with respect to any of its property or assets now owned
or hereafter acquired or any interest therein or any income or profits
therefrom;

     

    (c)           amend
its certificate of incorporation, bylaws or other charter documents so as to
adversely affect any rights of the Holder;

     

    (d)           repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de
minimis number of securities other then the Notes subject to the prepayment
provisions herein;

     

    (e)           except
in connection with the Subsequent Financing or the Reverse Merger Transaction,
enter into any agreement with respect to any of the foregoing; or

     

    (f)      
     pay cash dividends or distributions on any equity
securities of the Maker.

     

    “Permitted
Indebtedness” shall mean either (a) the indebtedness of the Maker
existing on the date of issuance of this Note and set forth on Schedule I of the
Purchase Agreement, and (b) any indebtedness incurred by the Maker or any
successor-in-interest to the Maker in connection with a Subsequent Financing,
(c) any indebtedness the proceeds of which are used to repay the Notes in full
after giving of appropriate notice as set forth in Section 1(e) above and (d)
any indebtedness incurred in the ordinary course of business or consented to by
holders a majority of the outstanding principal and interest on the Notes, which
consent shall be binding upon the Holder.

    
      
         

      

      
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    “Permitted Lien” shall
mean the individual and collective reference to the following: (a) liens for
taxes, assessments and other governmental charges or levies not yet due or liens
for taxes, assessments and other governmental charges or levies being contested
in good faith and by appropriate proceedings for which adequate reserves (in the
good faith judgment of the management of the Maker) have been established in
accordance with generally accepted accounting procedures, (b) liens imposed by
law which were incurred in the ordinary course of business, such as carriers’,
warehousemen’s and mechanics’ liens, statutory landlords’ liens, and other
similar liens arising in the ordinary course of business, and (x) which do not
individually or in the aggregate materially detract from the value of such
property or assets or materially impair the use thereof in the operation of the
business of the Maker or (y) which are being contested in good faith by
appropriate proceedings, which proceedings have the effect of preventing the
forfeiture or sale of the property or asset subject to such lien, (c) purchase
money security interests, and (d) liens set forth on Schedule 6.1 of the
Security Agreement .

     

    7.           No Waiver of the Holder’s
Rights. All payments of principal and interest shall be made without
setoff, deduction or counterclaim. No delay or failure on the part of the Holder
in exercising any of its options, powers or rights, nor any partial or single
exercise of its options, powers or rights shall constitute a waiver thereof or
of any other option, power or right, and no waiver on the part of the Holder of
any of its options, powers or rights shall constitute a waiver of any other
option, power or right.  Maker hereby waives presentment of payment,
protest, and all notices or demands in connection with the delivery, acceptance,
performance, default or endorsement of this Note. Acceptance by the Holder of
less than the full amount due and payable hereunder shall in no way limit the
right of the Holder to require full payment of all sums due and payable
hereunder in accordance with the terms hereof.

     

    8.           Modifications. No
term or provision contained herein may be modified, amended or waived except by
written agreement or consent signed by the party to be bound
thereby.

     

    9.           Cumulative Rights and
Remedies; Usury. The rights and remedies of the Holder expressed herein
are cumulative and not exclusive of any rights and remedies otherwise available
under this Note, or applicable law (including at equity). The election of the
Holder to avail itself of any one or more remedies shall not be a bar to any
other available remedies, which the Maker agrees the Holder may take from time
to time. If it shall be found that any interest due hereunder shall violate
applicable laws governing usury, the applicable rate of interest due hereunder
shall be reduced to the maximum permitted rate of interest under such
law.

     

    10.          Use of Proceeds.
Maker shall use the proceeds from this Note hereunder for working capital
purposes or as otherwise contemplated by the Purchase Agreement and not for the
satisfaction of any portion of the Maker’s debt (other than payment of trade
payables in the ordinary course of the Maker’s business and prior practices), to
redeem any of the Maker’s equity or equity-equivalent securities or to settle
any outstanding litigation.

    
      
         

      

      
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    11.           Severability. If any
provision of this Note is declared by a court of competent jurisdiction to be in
any way invalid, illegal or unenforceable, the balance of this Note shall remain
in effect, and if any provision is inapplicable to any person or circumstance,
it shall nevertheless remain applicable to all other persons and circumstances.
If it shall be found that any interest or other amount deemed interest due
hereunder shall violate applicable laws governing usury, the applicable rate of
interest due hereunder shall automatically be lowered to equal the maximum
permitted rate of interest.

     

    12.           Successors and
Assigns. This Note shall be binding upon the Maker and its successors and
shall inure to the benefit of the Holder and its successors and assigns. The
term “Holder”
as used herein, shall also include any endorsee, assignee or other holder of
this Note.

     

    13.           Lost or Stolen Promissory
Note. If this Note is lost, stolen, mutilated or otherwise destroyed, the
Maker shall execute and deliver to the Holder a new promissory note containing
the same terms, and in the same form, as this Note. In such event, the Maker may
require the Holder to deliver to the Maker an affidavit of lost instrument and
customary indemnity in respect thereof as a condition to the delivery of any
such new promissory note.

     

    14.           Governing Law. All
questions concerning the construction, validity, enforcement and interpretation
of this Note shall be governed by and construed and enforced in accordance with
the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each of the Maker and the Holder agree that all legal
proceedings concerning the interpretations, enforcement and defense of this Note
shall be commenced in the state and federal courts sitting in the City of New
York, County of New York (the “New York Courts”).
Each of the Maker and the Holder hereby irrevocably submit to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute
hereunder (including with respect to the enforcement of this Note), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is improper. Each of the Maker and
the Holder hereby irrevocably waive personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to the other at the address in effect for notices to it under this
Note and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. Each of
the Maker and the Holder hereby irrevocably waive, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Note or the transactions
contemplated hereby.

     

    15.           Notice. Whenever
notice is required to be given under this Note, unless otherwise provided
herein, such notice shall be given in accordance with Section 10(b) of the
Purchase Agreement.

     

    16.           Required Notice to the
Holder. The Holder is to be notified by the Maker, within five (5),
Business Days, in accordance with Section 15, of the existence or occurrence, of
any Event of Default.

    

    [Signature
page follows]

    
      
         

      

      
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    The
undersigned has executed this Note as a maker and not as a surety or guarantor
or in any other capacity.

    

    
      
        	
                RVUE,
      INC.

              
	 
      
	
                By:

              	
                   

              
	 
      	
                Jason
      Kates

              
	 
      	
                Chief
      Executive Officer

              

      

    

    
      
         

      

      
        7Exhibit
10.18

      

      FORM OF SECURITY
AGREEMENT

      

      
        	
                1.

              	
                Identification.

              

      

      

      This
Security Agreement (the “Agreement”), dated as of ________, 2010, is entered
into by and between rVUE, Inc., a Delaware corporation (“Debtor”), the lenders
set forth on Schedule
I hereto (the “Lenders”).

      

      
        	
                2.

              	
                Recitals.

              

      

      

      2.1           At
or about the date hereof, the Lenders are making loans (the “Loan”) to Debtor.
It is beneficial to Debtor that the Loan is made.

      

      2.2           The
Loan will be evidenced by secured promissory notes (“Notes”) issued by Debtor on
or about the date of this Agreement pursuant to a note purchase agreement (the
“Purchase Agreement”) to which Debtor and Lenders are parties.  The
Notes are in the principal amount of up to $200,000 and were or will be executed
by Debtor as “Maker” or “Debtor” for the benefit of each Lender as the “Holder”
or “Payee” thereof.

      

      2.3           In
consideration of the Loan made and to be made by Lenders to Debtor and for other
good and valuable consideration, and as security for the performance by Debtor
of its obligations under the Notes, and as security for the repayment of the
Loan and all other sums due from Debtor to Lenders arising under the Transaction
Documents (as defined in the Purchase Agreement) and any other agreement between
or among them (collectively, the “Obligations”), Debtor, for good and valuable
consideration, receipt of which is acknowledged, has agreed to grant to the
Lenders a first priority security interest senior to all other security
interests in the Collateral (as such term is hereinafter defined), on the terms
and conditions hereinafter set forth.  Obligations include all future
advances and loans by Lenders to Debtor that may be made pursuant to the
Purchase Agreement or any other agreements.

      

      2.4           The
following defined terms which are defined in the Uniform Commercial Code in
effect in the State of New York on the date hereof are used herein as so
defined:  Accounts, Chattel Paper, Documents, General Intangibles,
Instruments, Inventory and Proceeds.  Other capitalized terms employed
herein shall have the meanings attributed to them in the Purchase
Agreement.

      

      
        	
                3.

              	
                Grant of General
      Security Interest in
Collateral.

              

      

      

      3.1           As
security for the Obligations of Debtor, Debtor hereby grants the Lenders, a
first priority senior security interest in the Collateral.

      

      3.2           “Collateral”
shall mean all of the following property of Debtor:

      

       (A)          All
now owned and hereafter acquired right, title and interest of Debtor in, to and
in respect of all Accounts, Goods, real or personal property, all present and
future books and records relating to the foregoing and all products and Proceeds
of the foregoing, and as set forth below:

      

      (i)           All
now owned and hereafter acquired right, title and interest of Debtor in, to and
in respect of all: Accounts, interests in goods represented by Accounts,
returned, reclaimed or repossessed goods with respect thereto and rights as an
unpaid vendor; contract rights; Chattel Paper; investment property; General
Intangibles (including but not limited to, tax and duty claims and refunds,
registered and unregistered patents, trademarks, service marks, certificates,
copyrights trade names, applications for the foregoing, trade secrets, goodwill,
processes, drawings, blueprints, customer lists, licenses, whether as licensor
or licensee; Documents; Instruments; letters of credit, bankers’ acceptances or
guaranties; cash moneys, deposits; securities, bank accounts, deposit accounts,
credits and other property now or hereafter owned or held in any capacity by
Debtor, as well as agreements or property securing or relating to any of
the items referred to above;

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      (ii)           Goods:  All
now owned and hereafter acquired right, title and interest of Debtor in, to and
in respect of goods, including, but not limited to:

      

       (a)           All
Inventory, wherever located, whether now owned or hereafter acquired, of
whatever kind, nature or description, including all raw materials,
work-in-process, finished goods, and materials to be used or consumed in
Debtor’s business and all names or marks affixed to or to be affixed thereto for
purposes of selling same by the seller, manufacturer, lessor or licensor thereof
and all Inventory which may be returned to Debtor by its customers or
repossessed by Debtor and all of Debtor’s right, title and interest in and to
the foregoing (including all of Debtor’s rights as a seller of
goods);

      

      (iii)         Property:  All
now owned and hereafter acquired right, title and interests of Debtor in, to and
in respect of any other personal property in or upon which Debtor has or may
hereafter have a security interest, lien or right of setoff;

      

      (iv)       
 Books and
Records:  All present and future books and records relating to
any of the above including, without limitation, all computer programs, printed
output and computer readable data in the possession or control of the Debtor,
any computer service bureau or other third party; and

      

      (v)          Products and
Proceeds:  All products and Proceeds of the foregoing in
whatever form and wherever located, including, without limitation, all insurance
proceeds and all claims against third parties for loss or destruction of or
damage to any of the foregoing.

      

      3.3           The
Lenders are hereby specifically authorized, after the Maturity Date (defined in
the Notes) accelerated or otherwise, and after the occurrence of an Event of
Default (as defined herein) and the expiration of any applicable cure period, to
transfer any Collateral into the name of the Lenders and to take any and all
action deemed advisable to the Lenders to remove any transfer restrictions
affecting the Collateral.

      

      
        	
                4.

              	
                Perfection of Security
      Interest.

              

      

      

      4.1           Debtor
shall prepare, execute and deliver to the Lenders UCC-1 Financing
Statements.  The Lenders are instructed to prepare and file at
Debtor’s cost and expense, financing statements in such jurisdictions deemed
advisable to Lenders, including but not limited to the State of
Delaware.

      

      4.2             All
other certificates and instruments constituting Collateral from time to time
required to be pledged to Lenders pursuant to the terms hereof (the “Additional
Collateral”) shall be delivered to Lenders promptly upon receipt thereof by or
on behalf of Debtor.  All such certificates and instruments shall be
held by or on behalf of Lenders pursuant hereto and shall be delivered in
suitable form for transfer by delivery, or shall be accompanied by duly executed
instruments of transfer or assignment or undated stock powers executed in blank,
all in form and substance satisfactory to Lenders.  If any Collateral
consists of uncertificated securities, unless the immediately following sentence
is applicable thereto, Debtor shall cause Lenders (or its custodian, nominee or
other designee) to become the registered holder thereof, or cause each issuer of
such securities to agree that it will comply with instructions originated by
Lenders with respect to such securities without further consent by
Debtor.  If any Collateral consists of security entitlements, Debtor
shall transfer such security entitlements to Lenders (or its custodian, nominee
or other designee) or cause the applicable securities intermediary to agree that
it will comply with entitlement orders by Lenders without further consent by
Debtor.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      4.3           If
Debtor shall receive, by virtue of Debtor being or having been an owner of any
Collateral, any (i) stock certificate (including, without limitation, any
certificate representing a stock dividend or distribution in connection with any
increase or reduction of capital, reclassification, merger, consolidation, sale
of assets, combination of shares, stock split, spin-off or split-off),
promissory note or other instrument, (ii) option or right, whether as an
addition to, substitution for, or in exchange for, any Collateral, or otherwise,
(iii) dividends payable in cash (except such dividends permitted to be retained
by Debtor pursuant to Section 5.2 hereof) or in securities or other property or
(iv) dividends or other distributions in connection with a partial or total
liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid-in surplus, Debtor shall receive such stock certificate,
promissory note, instrument, option, right, payment or distribution in trust for
the benefit of Lenders, shall segregate it from Debtor’s other property and
shall deliver it forthwith to Lenders, in the exact form received, with any
necessary endorsement and/or appropriate stock powers duly executed in blank, to
be held by Lenders as Collateral and as further collateral security for the
Obligations.

      

      
        	
                5.

              	
                Distribution.

              

      

      

      5.1           So
long as an Event of Default does not exist, Debtor shall be entitled to exercise
all voting power pertaining to any of the Collateral, provided such exercise is
not contrary to the interests of the Lenders and does not impair the
Collateral.

      

      5.2.           At
any time an Event of Default exists or has occurred and is continuing, all
rights of Debtor, upon notice given by Lenders, to exercise the voting power and
receive payments, which it would otherwise be entitled to pursuant to Section
5.1, shall cease and all such rights shall thereupon become vested in Lenders,
which shall thereupon have the sole right to exercise such voting power and
receive such payments.

      

      5.3           All
dividends, distributions, interest and other payments which are received by
Debtor contrary to the provisions of Section 5.2 shall be received in trust for
the benefit of Lenders as security and Collateral for payment of the Obligation,
shall be segregated from other funds of Debtor, and shall be forthwith paid over
to Lenders as Collateral in the exact form received with any necessary
endorsement and/or appropriate stock powers duly executed in blank, to be held
by Lenders as Collateral and as further collateral security for the
Obligations.

      

      
        	
                6.

              	
                Further Action By
      Debtor; Covenants and
Warranties.

              

      

      

      6.1           Subject
to the terms of this Agreement, Lenders at all times shall have a perfected
security interest in the Collateral. Debtor represents that, other than the
security interests described on Schedule 6.1, it has and will
continue to have full title to the Collateral free from any liens, leases,
encumbrances, judgments or other claims.  The Lenders’ security
interest in the Collateral constitutes and will continue to constitute a first,
prior and indefeasible security interest in favor of Lenders, subject only to
the security interests described on Schedule
6.1.  Debtor will do all acts and things, and will execute and
file all instruments (including, but not limited to, security agreements,
financing statements, continuation statements, etc.) reasonably requested by
Lenders to establish, maintain and continue the perfected security interest of
Lenders in the perfected Collateral, and will promptly on demand, pay all costs
and expenses of filing and recording, including the costs of any searches
reasonably deemed necessary by Lenders from time to time to establish and
determine the validity and the continuing priority of the security interest of
Lenders, and also pay all other claims and charges that, in the opinion of
Lenders are reasonably likely to materially prejudice, imperil or otherwise
affect the Collateral or Lenders’ security interests therein.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      6.2           Except
(i) in connection with sales of Collateral, in the ordinary course of business,
for fair value and in cash and (ii) for Collateral which is substituted by
assets of identical or greater value (subject to the consent of
the Lenders) or which is inconsequential in value, Debtor will not sell,
transfer, assign or pledge those items of Collateral (or allow any such items to
be sold, transferred, assigned or pledged), without the prior written consent of
Lenders other than a transfer of the Collateral to a wholly-owned United States
formed and located subsidiary on prior notice to Lenders, and provided the
Collateral remains subject to the security interest herein
described.  Although Proceeds of Collateral are covered by this
Agreement, this shall not be construed to mean that Lenders consent to any sale
of the Collateral, except as provided herein.  Sales of Collateral in
the ordinary course of business and as described above shall be free of the
security interest of Lenders and Lenders shall promptly execute such documents
(including without limitation releases and termination statements) as may be
required by Debtor to evidence or effectuate the same.

      

      6.3           Debtor
will, at all reasonable times during regular business hours and upon reasonable
notice, allow Lenders or their representatives free and complete access to the
Collateral and all of Debtor’s records that in any way relate to the Collateral,
for such inspection and examination as Lenders reasonably deem
necessary.

      

      6.4           Debtor,
at its sole cost and expense, will protect and defend this Security Agreement,
all of the rights of Lenders hereunder, and the Collateral against the claims
and demands of all other persons.

      

      6.5           Debtor
will promptly notify Lenders of any levy, distraint or other seizure by legal
process or otherwise of any part of the Collateral, and of any threatened or
filed claims or proceedings that are reasonably likely to affect or impair any
of the rights of Lenders under this Security Agreement in any material
respect.

      

      6.6           Debtor,
at its own expense, will obtain and maintain in force insurance policies
covering losses or damage to those items of Collateral which constitute physical
personal property, which insurance shall be of the types customarily insured
against by companies in the same or similar business, similarly situated, in
such amounts (with such deductible amounts) as is customary for such companies
under the same or similar circumstances, similarly situated.  Debtor
shall make the Lenders loss payee thereon to the extent of its interest in the
Collateral. Lenders are hereby irrevocably (until the Obligations are
indefeasibly paid in full) appointed Debtor’s attorney-in-fact to endorse any
check or draft that may be payable to Debtor so that Lenders may collect
the proceeds payable for any loss under such insurance.  The proceeds
of such insurance, less any costs and expenses incurred or paid by Lenders in
the collection thereof, shall be applied either toward the cost of the repair or
replacement of the items damaged or destroyed, or on account of any sums secured
hereby, whether or not then due or payable.

      

      6.7           In
order to protect the Collateral and Lenders’ interest therein, Lenders may, at
Lenders’ option, and without any obligation to do so, pay, perform and discharge
any and all amounts, costs, expenses and liabilities herein agreed to be paid or
performed by Debtor upon Debtor’s failure
to do so.  All amounts expended by Lenders in so doing shall become
part of the Obligations secured hereby, and shall be immediately due and payable
by Debtor to Lenders upon demand and shall bear interest at the lesser of 12%
per annum or the highest legal amount allowed from the dates of such
expenditures until paid.

      

      6.8           Upon
the request of Lenders, Debtor will furnish to Lenders within five (5) business
days thereafter, or to any proposed assignee of this Security Agreement, a
written statement in form reasonably satisfactory to Lenders, duly acknowledged,
certifying the amount of the principal and interest and any other sum then owing
under the Obligations, whether to its knowledge any claims, offsets or defenses
exist against the Obligations or against this Security Agreement, or any of the
terms and provisions of any other agreement of Debtor securing the
Obligations.  In connection with any assignment by Lenders of this
Security Agreement, Debtor hereby agrees to cause the insurance policies
required hereby to be carried by Debtor, if any, to be endorsed in form
satisfactory to Lenders or to such assignee, with loss payable clauses in favor
of such assignee, and to cause such endorsements to be delivered to Lenders
within ten (10) calendar days after request therefor by
Lenders.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      6.9           Debtor
will, at its own expense, make, execute, endorse, acknowledge, file and/or
deliver to the Lenders from time to time such vouchers, invoices, schedules,
confirmatory assignments, conveyances, financing statements, transfer
endorsements, powers of attorney, certificates, reports and other reasonable
assurances or instruments and take further steps relating to the Collateral and
other property or rights covered by the security interest hereby granted, as the
Lenders may reasonably require to perfect their security interest
hereunder.

      

      6.10         Debtor
represents and warrants that they are the true and lawful exclusive owners of
the Collateral, free and clear of any liens, encumbrances and claims other than
those listed on Schedule
6.1.

      

      6.11         Debtor
hereby agrees not to divest itself of any right under the Collateral except as
permitted herein absent prior written approval of the Lenders, except to a
subsidiary organized and located in the United States on prior notice to Lenders
provided the Collateral remains subject to the security interest herein
described.

                 

      6.12         Debtor
will notify Lenders within ten (10) days of the occurrence of any change of
Debtor’s name, domicile, address or jurisdiction of
incorporation.  The timely giving of this notice is a material
obligation of Debtor.

      

      
        	
                7.

              	
                Power of
      Attorney.

              

      

      

      At any
time an Event of Default has occurred, and only after the applicable cure period
as set forth in this Agreement and the other Transaction Documents, and is
continuing, Debtor hereby irrevocably constitutes and appoints Lenders as the
true and lawful attorney of Debtor, with full power of substitution, in the
place and stead of Debtor and in the name of Debtor or otherwise, at any time or
times, in the discretion of the Lenders, to take any action and to execute any
instrument or document which the Lenders may deem necessary or advisable to
accomplish the purposes of this Agreement.  This power of attorney is
coupled with an interest and is irrevocable until the Obligations are
satisfied.

      

      
        	
                8.

              	
                Performance By The
      Lenders.

              

      

      

      If Debtor
fails to perform any material covenant, agreement, duty or obligation of Debtor
under this Agreement, Lenders may, after any applicable cure period, at any time
or times in its discretion, take action to effect performance of such
obligation.  All reasonable expenses of the Lenders incurred in
connection with the foregoing authorization shall be payable by Debtor as
provided in Paragraph
12.1 hereof.  No discretionary right, remedy or power granted
to the Lenders under any part of this Agreement shall be deemed to impose any
obligation whatsoever on the Lenders with respect thereto, such rights, remedies
and powers being solely for the protection of the Lenders.

      

      
        	
                9.

              	
                Event of
      Default.

              

      

      

      An event
of default (“Event of Default”) shall be deemed to have occurred hereunder upon
the occurrence of any event of default as defined and described in this
Agreement, in the Notes, the Purchase Agreement, Transaction Documents (as
defined in the Purchase Agreement), and any other agreement to which Debtor and
Lenders are parties.   Upon and after any Event of Default,
after the applicable cure period, if any, any or all of the Obligations
shall become immediately due and payable at the option of the Lenders, and the
Lenders may dispose of Collateral as provided below.  A default by
Debtor of any of its material obligations pursuant to this Agreement and any of
the Transaction Documents shall be an Event of Default hereunder and an “Event
of Default” as defined in the Notes and Purchase Agreement.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
        	
                10.

              	
                Disposition of
      Collateral.

              

      

      

      Upon and
after any Event of Default which is then continuing,

      

      10.1         The
Lenders may exercise their rights with respect to each and every component of
the Collateral, without regard to the existence of any other security or source
of payment for, in order to satisfy the Obligations.  In addition to
other rights and remedies provided for herein or otherwise available to it, the
Lenders shall have all of the rights and remedies of a lender on default under
the Uniform Commercial Code then in effect in the State of New
York.

      

      10.2         If
any notice to Debtor of the sale or other disposition of Collateral is required
by then applicable law, five (5) business days prior written notice (which
Debtor agrees is reasonable notice within the meaning of Section 9.612(a) of the
Uniform Commercial Code) shall be given to Debtor of the time and place of any
sale of Collateral which Debtor hereby agrees may be by private
sale.  The rights granted in this Section are in addition to any and
all rights available to Lenders under the Uniform Commercial Code.

      

      10.3         The
Lenders are authorized, at any such sale, if the Lenders deem it advisable to do
so, in order to comply with any applicable securities laws, to restrict the
prospective bidders or purchasers to persons who will represent and agree, among
other things, that they are purchasing the Collateral for their own account for
investment, and not with a view to the distribution or resale thereof, or
otherwise to restrict such sale in such other manner as the Lenders deem
advisable to ensure such compliance.  Sales made subject to such
restrictions shall be deemed to have been made in a commercially reasonable
manner.

      

      10.4         All
proceeds received by the Lenders in respect of any sale, collection or other
enforcement or disposition of Collateral, shall be applied (after deduction of
any amounts payable to the Lenders pursuant to Paragraph 12.1
hereof) against the Obligations.   Upon payment in full of all
Obligations, Debtor shall be entitled to the return of all Collateral, including
cash, which has not been used or applied toward the payment of Obligations or
used or applied to any and all costs or expenses of the Lenders incurred in
connection with the liquidation of the Collateral (unless another person is
legally entitled thereto).  Any assignment of Collateral by the
Lenders to Debtor shall be without representation or warranty of any nature
whatsoever and wholly without recourse.  To the extent allowed by law,
Lenders may purchase the Collateral and pay for such purchase by offsetting the
purchase price with sums owed to Lenders by Debtor arising under the Obligations
or any other source.

      

      10.5         Rights of Lenders to Appoint
Receiver.   Without limiting, and in addition to, any
other rights, options and remedies Lenders have under the Transaction Documents,
the UCC, at law or in equity, or otherwise, upon the occurrence and continuation
of an Event of Default, Lenders shall have the right to apply for and have a
receiver appointed by a court of competent jurisdiction.  Debtor
expressly agrees that such a receiver will be able to manage, protect and
preserve the Collateral and continue the operation of the business of Debtor to
the extent necessary to collect all revenues and profits thereof and to apply
the same to the payment of all expenses and other charges of such receivership,
including the compensation of the receiver, until a sale or other disposition of
such Collateral shall be finally made and consummated.  Debtor waives
any right to require a bond to be posted by or on behalf of any such
receiver.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      11.           Waiver of Automatic
Stay.   Debtor
acknowledges and agrees that should a proceeding under any bankruptcy or
insolvency law be commenced by or against Debtor, or if any of the Collateral
should become the subject of any bankruptcy or insolvency proceeding, then the
Lenders should be entitled to, among other relief to which the Lenders may be
entitled under the Notes, Purchase Agreement, Transaction Documents, and any
other agreement to which the Debtor and Lenders are parties (collectively “Loan
Documents”) and/or applicable law, an order from the court granting immediate
relief from the automatic stay pursuant to 11 U.S.C. Section 362 to permit the
Lenders to exercise all of their rights and remedies pursuant to the Loan
Documents and/or applicable law.  DEBTOR EXPRESSLY WAIVES THE BENEFIT
OF THE AUTOMATIC STAY IMPOSED BY 11 U.S.C. SECTION 362.  FURTHERMORE,
DEBTOR EXPRESSLY ACKNOWLEDGES AND AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR
ANY OTHER SECTION OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING,
WITHOUT LIMITATION, 11 U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION,
REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF THE LENDERS TO ENFORCE ANY OF ITS
RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE
LAW.   Debtor
hereby consents to any motion for relief from stay which may be filed by the
Lenders in any bankruptcy or insolvency proceeding initiated by or against
Debtor, and further agrees not to file any opposition to any motion for relief
from stay filed by the Lenders.  Debtor represents, acknowledges and
agrees that this provision is a specific and material aspect of this Agreement,
and that the Lenders would not agree to the terms of this Agreement if this
waiver were not a part of this Agreement.  Debtor further represents,
acknowledges and agrees that this waiver is knowingly, intelligently and
voluntarily made, that neither the Lenders nor any person acting on behalf of
the Lenders has made any representations to induce this waiver, that Debtor has
been represented (or has had the opportunity to be represented) in the signing
of this Agreement and in the making of this waiver by independent legal counsel
selected by Debtor and that Debtor has had the opportunity to discuss this
waiver with counsel.   Debtor further agrees that any bankruptcy
or insolvency proceeding initiated by Debtor will only be brought in the Federal
Court within the Southern District of New York.

      

      
        	
                12.

              	
                Miscellaneous.

              

      

      

      12.1         Expenses.  Debtor
shall pay to the Lenders, on demand, the amount of any and all reasonable
expenses, including, without limitation, attorneys’ fees, legal expenses and
brokers’ fees, which the Lenders may incur in connection with (a) sale,
collection or other enforcement or disposition of Collateral; (b) exercise or
enforcement of any the rights, remedies or powers of the Lenders hereunder or
with respect to any or all of the Obligations upon breach or threatened breach;
or (c) failure by Debtor to perform and observe any agreements of Debtor
contained herein which are performed by Lenders.

      

      12.2         Waivers,
Amendment and
Remedies.  No course of dealing by the Lenders and no failure
by the Lenders to exercise, or delay by the Lenders in exercising, any right,
remedy or power hereunder shall operate as a waiver thereof, and no single or
partial exercise thereof shall preclude any other or further exercise thereof or
the exercise of any other right, remedy or power of the Lenders.  No
amendment, modification or waiver of any provision of this Agreement and no
consent to any departure by Debtor therefrom shall, in any event, be effective
unless contained in a writing signed by the Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given. The rights, remedies and powers of the Lenders, not
only hereunder, but also under any instruments and agreements evidencing or
securing the Obligations and under applicable law are cumulative, and may be
exercised by the Lenders from time to time in such order as the Lenders may
elect.

      

      12.3         Notices.  All
notices or other communications given or made hereunder shall be in writing and
shall be personally delivered or deemed delivered the first business day after
being faxed (provided that a copy is delivered by first class mail) to the party
to receive the same at its address set forth below or to such other address
as either party shall hereafter give to the other by notice duly made under this
Section:

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	 	
                To
      the Company or Parent:

              	
                rVue,
      Inc.

              

      

      900 S.E.
3rd Avenue, Third Floor

      Fort
Lauderdale, FL 33316

      Att:
Jason Kates, CEO

      T:
954-525-6464 

      F:
954-728-9029

       

      
        	 	
                With
      a copy to:

              	
                Akerman
      Senterfitt

              

      

      One S.E.
Third Avenue, Suite 2500

      Miami, FL
33131-1714

      Att:
Jonathan L. Awner, Esq.

      T:
305-982-5615

      F:
305-374-5095

       

      
        
          	 	
                  To
      Lender:

                	
                  To
      the address on the signature page attached
  hereto.

                

        

      

      

      Any party
may change its address by written notice in accordance with this
paragraph.

      

      12.4         Term; Binding
Effect.  This Agreement shall (a) remain in full force and
effect until payment and satisfaction in full of all of the Obligations; (b) be
binding upon Debtor, and its successors and permitted assigns; and (c) inure to
the benefit of the Lenders and its successors and assigns.

      

      12.5         Captions.  The
captions of Paragraphs, Articles and Sections in this Agreement have been
included for convenience of reference only, and shall not define or limit the
provisions of this agreement and have no legal or other significance
whatsoever.

      

      12.6         Governing Law; Venue;
Severability.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard to
conflicts of laws principles that would result in the application of the substantive
laws of another jurisdiction, except to the extent that the perfection of
the security interest granted hereby in respect of any item of Collateral may be
governed by the law of another jurisdiction.  Any legal action or
proceeding against Debtor with respect to this Agreement must be brought only in
the courts in the State of New York or of the United States for the Southern
District of New York, and, by execution and delivery of this Agreement, Debtor
hereby irrevocably accepts for itself and in respect of its property, generally
and unconditionally, the jurisdiction of the aforesaid courts. Debtor hereby
irrevocably waives any objection which they may now or hereafter have to the
laying of venue of any of the aforesaid actions or proceedings arising out of or
in connection with this Agreement brought in the aforesaid courts and hereby
further irrevocably waives and agrees not to plead or claim in any such
court that any such action or proceeding brought in any such court has been
brought in an inconvenient forum.  If any provision of this Agreement,
or the application thereof to any person or circumstance, is held invalid, such
invalidity shall not affect any other provisions which can be given effect
without the invalid provision or application, and to this end the provisions
hereof shall be severable and the remaining, valid provisions shall remain of
full force and effect.

       

      12.7         Entire
Agreement.  This Agreement contains the entire agreement of the
parties and supersedes all other agreements and understandings, oral or written,
with respect to the matters contained herein.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      12.8         Counterparts/Execution.  This
Agreement may be executed in any number of counterparts and by the different
signatories hereto on separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument.  This Agreement may be executed by facsimile
signature and delivered by electronic transmission.

      

      13.           Termination;
Release.  When the Obligations have been indefeasibly paid and
performed in full or all outstanding Notes have been converted to common stock
pursuant to the terms of the Notes and the Purchase Agreements, this Agreement
shall be terminated, and the Lenders, at the request and sole expense of the
Debtor, will execute and deliver to the Debtor the proper instruments (including
UCC termination statements) acknowledging the termination of the Security
Agreement, and duly assign, transfer and deliver to the Debtor, without
recourse, representation or warranty of any kind whatsoever, such of the
Collateral,  as may be in the possession of the Lenders.

      

      
        	
                14.

              	
                Lenders
      Powers.

              

      

      

      14.1         Lenders
Powers.  The powers conferred on the Lenders hereunder are
solely to protect Lenders’ interest in the Collateral and shall not impose any
duty on it to exercise any such powers.

      

      14.2         Reasonable
Care.  The Lenders are required to exercise reasonable care in
the custody and preservation of any Collateral in its possession; provided,
however, that the Lenders shall be deemed to have exercised reasonable care in
the custody and preservation of any of the Collateral if it takes such
action for that purposes as any owner thereof reasonably requests in writing at
times other than upon the occurrence and during the continuance of any Event of
Default, but failure of the Lenders to comply with any such request at any time
shall not in itself be deemed a failure to exercise reasonable
care.

      

      14.3         Majority in
Interest.   The rights of the Lenders hereunder, except as
otherwise set forth herein shall be exercised upon the approval of Lenders
holding 70% of the outstanding Obligations (“Majority in Interest”) at the time
such approval is sought or given.

      

      [THIS
SPACE INTENTIONALLY LEFT BLANK]

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
undersigned have executed and delivered this Security Agreement, as of the date
first written above.

      

      “DEBTOR”

      

      RVUE,
INC.

      

      
        
          
            	
                    By:

                  	 
      	 
      
	 
      	
                    Jason
      Kates

                  	 
      
	 
      	
                    Chief
      Executive Officer

                  	 
      

          

        

      

      

      This
Security Agreement may be signed by facsimile signature and

      delivered
by confirmed facsimile transmission.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      Schedule
I

      

      
        
          	
                  LENDER AND ADDRESS

                	 
      	
                  PURCHASE

                  PRICE

                	 
      	
                  NOTE

                  PRINCIPAL

                
	 
      	
                    

                	 
      	
                    

                	 
      

        

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      Schedule
6.1

      

      Security
Interests

      

      Purchase
money security interest in the amount of $5,000 for capital leasing of
equipment.

      
        
           

        

        
          12

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