Document:

Promissory Note (00195593).DOC

EXHIBIT A

THIS SECURED CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), NOR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE PLEDGED, SOLD, ASSIGNED OR TRANSFERRED UNLESS (I) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAW REQUIREMENTS HAVE BEEN MET OR (II) THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT AND THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS ARE AVAILABLE.

No. 0409-1

$718,500.00

LENCO MOBILE, INC.

SECURED CONVERTIBLE PROMISSORY NOTE

DATED: July 31, 2009

DUE: January 16, 2010

FOR VALUE RECEIVED, Lenco Mobile, Inc., a Delaware corporation (the "Company") with an address at 30 S. La Patera Lane, Goleta, CA 93117, hereby promises to pay to the order of Agile Opportunity Fund, LLC (the "Payee") or its registered assigns (together with the Payee, the "Holder"), at the address set forth under their signature below, the sum of Seven Hundred Eighteen Thousand Five-Hundred Dollars ($718,500.00).

This Note is being issued in connection with that certain Asset Purchase Agreement (the "Purchase Agreement") dated as of February 28, 2009 by and among the Company, Lenco USA, Inc., a Nevada corporation (the "Purchaser"), Superfly Advertising, Inc., a Delaware corporation ("Superfly"), and Superfly Advertising, Inc., an Indiana corporation ("Seller"), pursuant to which Purchaser is acquiring from Seller certain assets, and is assuming certain liabilities, related to the business the Seller acquired from Legacy Media LLC and Consumer Loyalty Group LLC under an Amended and Restated Asset Purchase Agreement dated as of December 16, 2008.  This Note is being issued to the Payee in substitution of the obligation of Superfly to Payee under a Secured Convertible Promissory Note dated January 16, 2009 between Superfly and Payee (the "Superfly Note").  By accepting this Note and signing below, Payee (i) consents to the transfer of assets to Purchaser pursuant to the Purchase Agreement, (ii) accepts this Note as payment in full, and in complete satisfaction of all of Superfly's obligations to Payee under the Superfly Note, and (iii) releases any claim, lien or security interest in any of the assets transferred by Superfly or Seller to Purchaser under the Purchase Agreement.   

The following is a statement of the rights of the Holder of this Note and the conditions to which this Note is subject, and to which the Holder hereof, by the acceptance of this Note, agrees:

Section 1.  Interest.  This Note shall bear interest at the annual rate of eighteen percent (18%) per annum calculated on the basis of a 360 day year.  Notwithstanding the foregoing, any payment which is not made when due shall bear interest at the rate of twenty three percent (23%) per annum, until repaid (all such accrued interest collectively, the "Penalty Interest") which shall be due and payable as and when accrued.

Section 2.  Payment.  Principal in the amount of $93,750, together with all accrued and unpaid interest shall be payable within 30 days following the date of this Note.  Thereafter, accrued and unpaid interest shall be due and payable on the last day of each month following the date hereof.  Any remaining principal and interest shall be due and payable on January 16, 2010 (the "Maturity Date").  The Company shall have the right, upon 10 days prior written notice to the Holder, to prepay all or any portion of this Note at any time or from time to time prior to the Maturity Date.

Section 3.  Security.  The Company's repayment obligations under this Note are secured bythat certain Security Agreement of even date herewith between the Company, AdMax Media Inc. and the Holder.

Section 4.  Default.  Notwithstanding any other provision of this Note, the Holder shall have the right to demand, upon written notice to the Company, that the entire principal and unpaid accrued interest hereon immediately due and payable if:

(i) the Company fails to make any payment when due hereunder and such failure continues for a period of three business days following notice of such failure;

(ii) the Company or AdMax breaches any terms of the Security Agreement and such breach continues for a period of ten days following notice of such breach; or 

(iii) the Company institutes proceedings to be adjudicated as bankrupt or insolvent, or consents to the institution of bankruptcy or insolvency proceedings against it or the filing by it of a petition or answer or consent seeking reorganization or release under the federal Bankruptcy Act, or any other applicable federal or state law, or the consent by it to the filing of any such petition or the appointment of a receiver, liquidator, assignee, trustee or other similar official of the Company, as applicable, or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the taking of corporate action by the Company in furtherance of any such action and if, within sixty (60) days after the commencement of an action against the Company (and service of process in connection therewith on the Company) seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such action shall not have been resolved in favor of the Company, as applicable, or all orders or proceedings thereunder affecting the operations or the business of the Company, as applicable, stayed, or if the stay of any such order or proceeding shall thereafter be set aside, or if, within sixty (60) days after the appointment without the consent or acquiescence of the Company, as applicable, of any trustee, receiver or liquidator of the Company, as applicable, or of all or any substantial part of the properties of the Company, such appointment shall not have been vacated.

Section 5.  Conversion.

Section 5.1.

Voluntary Conversion.  The Holder shall have the right at any time that any amounts remain outstanding under this Note to convert all or any portion of the outstanding principal or accrued and unpaid interest under this Note into shares of the Company's fully paid non-assessable common stock (the "Conversion Shares") at a conversion price of $3.00 per Conversion Share.   The number of Conversion Shares shall be subject to adjustment as provided below.

Section 5.2.

Conversion Notice.  If the Holder elects to convert any portion of this Note into Conversion Shares, it shall surrender this Note at the principal office of the Company and shall give written notice, in the form annexed hereto as Exhibit A and made a part hereof, by facsimile, certified or registered mail, postage prepaid (or any other reasonable means of communication), to the Company at its principal corporate office, of the election to convert the same and shall state therein the name or names in which the certificate or certificates for Common Stock are to be issued (the "Conversion Notice").  The Company shall, as soon as practicable thereafter (but in no event more than five (5) business days), issue and deliver at such office to the Holder of this Note a certificate or certificates for the number of Common Stock to which the Holder of this Note shall be entitled as aforesaid.  Such conversion shall be deemed to have been made on the date of the Conversion Notice, and the person or persons entitled to receive the Common Stock issuable upon such conversion shall be treated for all purposes as the record Holder or Holders of such Common Stock as of such date.

Section 5.3.

Stock Certificates and Replacement Note.  Upon any such conversion pursuant to this Section 5 the Company shall issue and deliver to the Holder stock certificates for the applicable number of Conversion Shares into which this Note was converted and this Note shall be deemed cancelled to the extent converted, and (b) if the entire principal amount together with interest accrued thereon of this Notes shall not have been converted, the Holder of this Note shall receive from the Company, together with the applicable number of Conversion Shares, a new Note in the appropriate principal amount.

Section 5.4.

FAST Delivery.  In lieu of delivering physical certificates representing the Conversion Shares, provided the Company's transfer agent is participating in the Depository Trust Company ("DTC") Fast Automated Securities Transfer program, upon the option and request of the Holder and its compliance with the provisions contained in this Section 5.4, the Company shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder's Prime Broker with DTC through its Deposit Withdrawal Agent Commission system.

Section 5.5.

Restrictions on Transfer.  The Conversion Shares issuable upon conversion of the Holder's Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Securities Act, (ii) the Company or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration; (iii) such shares are sold or transferred pursuant to Rule 144 under the Securities Act (or a successor rule) ("Rule 144"), or (iv) such shares are sold or transferred outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, or (v) such shares are transferred to an "affiliate"(as defined in Rule 144) of the Company who agrees to sell or otherwise transfer the shares only in accordance with this Section 5.5.  

Section 5.6.

Legends.  Until such time as the Conversion Shares issuable upon conversion of the Holder's Note have been registered under the Securities Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for Conversion Shares that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT").  THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, (C) WITHIN THE UNITED STATES AFTER REGISTRATION OR IN ACCORDANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF APPLICABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) WITHIN THE UNITED STATES IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS AND THE HOLDER HAS PRIOR TO SUCH SALE FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION.

The legend set forth above shall be removed and the Company shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Company or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration under the Securities Act and the shares are so sold or transferred, (ii) such Holder provides the Company or its transfer agent with reasonable assurances that the Common Stock issuable upon conversion of this Note (to the extent such securities are deemed to have been acquired on the same date) can be sold pursuant to Rule 144 or (iii) in the case of the Common Stock issuable upon conversion of the Holder's Note, such security is registered for sale by the Holder under an effective registration statement filed under the Securities Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold.  The Company shall use its best efforts to cause its counsel to issue a legal opinion to the Company's transfer agent promptly alter the effective date of any registration statement under the Securities Act registering the resale of the Common Stock issuable upon conversion of the Notes if required by the Company's transfer agent to effect the removal of the legend hereunder.

Section 5.7.

Conversion Share Adjustments.

(a)

Adjustments for Stock Dividends and Subdivisions.  In the event the Company should at any time or from time to time after the date of issuance hereof fix a record date for the effectuation of a split or subdivision of the outstanding Common Stock, or entitling the Holder thereof to receive directly or indirectly, a dividend or distribution of additional Common Stock or other securities that are convertible into or exercisable for additional shares of Common Stock (hereinafter referred to as "Common Stock Equivalents") without payment of any consideration by such Holder for the additional shares of Common Stock or the Common Stock Equivalents, then, as of such record date (or the date of such dividend distribution, split or subdivision if no record date is fixed), the number of Conversion Shares issuable upon conversion of this Note shall be increased in proportion to such increase of the Company's outstanding shares of Common Stock.

(b)

Adjustments for Reverse Stock Splits.  If the number of Conversion Shares outstanding at any time after the date hereof is decreased by a reverse stock split or other combination of the outstanding Common Stock, then, following the record date of such reverse split or combination, the number of Conversion Shares issuable on conversion of this Note shall be decreased in proportion to such decrease in the Company's outstanding Common Stock as a result thereof.

Section 5.8.

Notice of Adjustments.  Upon the occurrence of each adjustment or readjustment of the Conversion Shares, the Company, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to each Holder of Notes a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based.  

Section 5.9.

No Fractional Shares.  No fractional Common Stock shall be issued upon conversion of this Note.  In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Note, the Company shall pay to the Holder an amount in cash applicable to such fractional shares.

Section 5.10.

Reservation of Common Stock Issuable Upon Conversion.  The Company shall at all times while this Note is outstanding reserve and keep available out of its authorized but unissued Common Stock such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of the Note; and if at any time the number of authorized but unissued Common Stock shall not be sufficient to effect the conversion of the entire outstanding principal amount of this Note, in addition to such other remedies as shall be available to the Holder of this Note, the Company will use its best efforts to take such corporate action as may, in the opinion of its counsel, be necessary to increase the Company's authorized but unissued Common Stock to such number of shares as shall be sufficient for such purposes.

Section 6.  Waiver of Demand, Presentment, Etc.  The Company hereby waives presentment, notice of dishonor, protest and notice of protest, and any or all other notices or demands (other than demand for payment) in connection with this Note.  The liability of the Company hereunder shall be unconditional and shall not be in any manner affected by any indulgence whatsoever granted or consented to by the Holder hereof, including, but not limited to any extension of time, renewal, waiver or other modification.  Any failure of the Holder to exercise any right hereunder shall not be construed as a waiver of the right to exercise the same or any other right at any time and from time to time thereafter.  Holder may accept late payments, or partial payments, even though marked "payment in full" or containing words of similar import or other conditions, without waiving any of its rights.  No amendment, modification or waiver of any provision of this Note nor consent to any departure by the Company therefrom shall be effective, irrespective of any course of dealing, unless the same shall be in writing and signed by Payee, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  This Note cannot be changed or terminated orally or by estoppel or waiver or by any alleged oral modification regardless of any claimed partial performance referable thereto.

Section 7.  Independent Obligations.  The obligations of the Company under this Note are independent of the obligations of any other person or entity.  The Company expressly waives any right to require Holder to proceed against any other person or entity, or to proceed against or exhaust any security for the obligations.  A separate action or actions may be brought and prosecuted against the Company whether or not any other person or entity shall be joined in any such action or actions.

Section 8.  Treatment of Note.  To the extent permitted by law and generally accepted accounting principles, the Company will treat, account and report the Note as debt and not equity for accounting purposes and with respect to any returns filed with federal, state or local tax authorities.

Section 9.  No Shareholder Rights.  Nothing contained in this Note shall be construed as conferring upon the Holder or any other person the right to vote or to consent or to receive notice as a shareholder in respect of any extraordinary or general meetings of the shareholders of the Company for the election of directors of the Company or any other matters or any rights whatsoever as a shareholder of the Company; and no interest shall be payable or accrued in respect of the Conversion Shares obtainable hereunder until, and only to the extent that, this Note shall have been converted.  This limitation does not apply to or in any way restrict a Holder's rights as a shareholder of the Company in connection with any Common Stock of the Company otherwise held by the Holder.

Section 10.  Assignment.  The rights and obligations of the Company and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

Section 11.  Waiver and Amendment.  Any provision of this Note may be amended, waived or modified only upon the written consent of the Company and the Holder.

Section 12.  Notices.  Any notice, request or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given on the date of service if personally served on the party to whom such notice is to be given, on the date of delivery by a recognized overnight courier providing receipt for delivery, on the date of transmittal of service via telecopy to the party to whom notice is to be given (with a confirming copy delivered within 24 hours thereafter), or on the third day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified mail, postage prepaid.  Any party hereto may by notice so given change its address for future notice hereunder.

Section 13.  Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California, excluding that body of law relating to conflict of laws.

IN WITNESS WHEREOF, the Company has executed and delivered this Note the date and year first above written.

LENCO MOBILE, INC.

By: ___________________________________

Name:  Michael Levinsohn

Title:    Chief Executive Officer

PAYEE

AGILE OPPORTUNITY FUND, LLC

By: ___________________________________

Name:  David Propis

Title:    Manager

Address for payment:

 ___________________________________

 ___________________________________

 ___________________________________

 ___________________________________

EXHIBIT A

NOTICE OF CONVERSION

(To Be Signed Only Upon Conversion of Note)

The undersigned, the Holder of the foregoing Note, hereby elects to convert an aggregate of $____________ principal amount of such Note, together with all interest accrued thereon through the date of this Notice, into Conversion Shares of Lenco Mobile, Inc., or its successor-in-interest.  

Upon delivery to the undersigned of certificates registered in the name of _______________________ and delivered to, _______________, whose address is _______________________ for the applicable amount of Conversion Shares, the undersigned shall surrender this Note to Lenco Mobile, Inc., and (to the extent of a partial conversion), shall receive from Lenco Mobile, Inc., or its successor-in-interest a new Note in principal amount equal to the unconverted principal amount of the original Note together with the applicable interest accrued thereon.

Dated:__________________

__________________________________________

(Signature must conform in all respects to name of

Holder as specified on the face of the Note)

__________________________________________

Print Signature

__________________________________________

(Address)

__________________________________________Security Agreement (AdMax)-4 (00219758).DOC

SECURITY AGREEMENT

This Security Agreement (the "Security Agreement"), dated as of July 31, 2009, is by and between (i) AdMax Media, Inc., a Nevada corporation (the "Debtor"), and (ii) Agile Opportunity Fund, LLC, a Nevada limited liability company (the "Secured Party"). 

Background

1.

Lenco Mobile, Inc., the parent of Debtor, (the "Parent") issued the Secured Party a Secured Convertible Promissory Note (the "Note") in the principal amount of $718,500, pursuant to a Securities Purchase and Restructuring Agreement among the Parent, the Secured Party and the other parties signatory thereto dated of even date herewith (the "Securities Purchase Agreement").  Capitalized terms used herein and not otherwise defined herein shall have the meanings specified in the Securities Purchase Agreement.

2.

To induce the Secured Party to enter into the Securities Purchase Agreement, the Debtor has agreed to provide the Secured Party with a first priority security interest in the Collateral (as hereinafter defined).

Now, therefore, in consideration of the promises and the mutual covenants and agreements herein set forth, and in order to induce the Secured Party to purchase the Note, the Debtor hereby agrees with the Secured Party as follows:

Section 1.

Grant of Security Interest.  The Debtor hereby grants to the Secured Party, on the terms and conditions hereinafter set forth, a first priority lien and security interest in the collateral hereinafter identified (the "Collateral").    

Section 2.

Collateral.  The Collateral is all tangible and intangible assets of the Debtor of whatever kind and nature (including, without limitation, all intellectual property of whatever kind or nature of the Debtor including patents, trademarks, tradenames, copyrights and all other intellectual property and any applications or registrations therefore, accounts, chattel paper, commercial tort claims, documents, equipment, farm products, general intangibles, instruments, inventory, investment property, and the equity of all of Debtor's subsidiaries), in each case whether now owned or hereafter acquired and wherever located, and all proceeds thereof, together with all proceeds, products, replacements and renewals thereof.  

Section 3.

Representations and Warranties; Covenants.  The Debtor hereby represents, warrants and covenants as follows:

(a)

The Debtor has title to the Collateral free from any lien, security interest, encumbrance or claim.  

(b)

The Debtor will maintain the Collateral so as to preserve its value subject to wear and tear in the ordinary course.

(c)

The Debtor is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada.

(d)

The Debtor will pay when due all existing or future charges, liens, or encumbrances on the Collateral, and will pay when due all taxes and assessments now or hereafter imposed or affecting the Collateral unless such taxes or assessments are diligently contested by the Debtor in good faith and reasonable reserves are established therefor.

(e)

All information with respect to the Note and the Collateral and account debtors set forth in any schedule, certificate or other writing at any time heretofore or hereafter furnished by the Debtor to the Secured Party, and all other written information heretofore or hereafter furnished by the Debtor to the Secured Party, is or will be true and correct in all material respects, as of the date furnished.

(f)

As soon as practicable following the date of execution of this Security Agreement and in any event within five (5) business days of such date, the Secured Party will prepare, execute and file with the Secretary of State in the State of Nevada, a UCC-1 Financing Statement covering the Collateral, naming the Secured Party as Secured Party thereunder.

(g)

The Debtor will keep its records concerning the Collateral at its address shown in Section 2(b) of the Perfection Certification.  Such records will be of such character as to enable the Secured Party or their representatives to determine at any time the status thereof, and the Debtor will not, unless the Secured Party shall otherwise consent in writing, maintain any such record at any other address.

(h)

The Debtor will furnish the Secured Party information on a quarterly basis concerning the Debtor, the Note and the Collateral as the Secured Party may at any time reasonably request.

(i)

The Debtor will permit the Secured Party and its representatives at any reasonable time during normal business hours and on five (5) day prior written notice to inspect and audit any and all of the Collateral and all records and all other papers in possession of the Debtor pertaining to the Note and the Collateral and will, on the written request of the Secured Party, deliver to the Secured Party all such records and papers for the purpose of enabling the Secured Party to inspect and audit.   Any of the Debtor's records delivered to the Secured Party shall be returned to the Debtor as soon as the Secured Party shall have completed its inspection, audit and/or copying thereof. The Secured Party covenants and agrees to keep and hold all records and all other papers in possession of the Debtor pertaining to the Note and the Collateral confidential and shall not copy,  reproduce or disclose the same to any third party without the prior written consent of the Debtor.

(j)

The Debtor has set forth on Schedule 3(j) a schedule identifying the material assets that comprise the Collateral subject to the security interest of this Security Agreement as of the date hereof.

(k)

If and when so requested by the Secured Party, the Debtor will stamp on the records of the Debtor concerning the Collateral a notation, in a form reasonably satisfactory to the Secured Party, of the security interest of the Secured Party under this Security Agreement.

Section 4.

Disposition of Collateral in Ordinary Course.  Debtor shall not sell, transfer, assign, convey, license, grant any right to use or otherwise dispose of any Collateral  except in the ordinary course of business, without the prior written consent of the Secured Party.

Section 5.

Secured Party May Perform.  Upon the occurrence and continuation of an "Event of Default" under the Note, at the option of the Secured Party the Secured Party may discharge taxes, liens or security interests, or other encumbrances at any time hereafter levied or placed on the Collateral; may pay for insurance required to be maintained on the Collateral pursuant to Section 3; and may pay for the maintenance and preservation of the Collateral.  The Debtor agrees to reimburse the Secured Party on demand for any payment made, or any expense incurred, by the Secured Party pursuant to the foregoing authorization.  Until the occurrence and continuation of an Event of Default, the Debtor may have possession of the Collateral and use it in any lawful manner not inconsistent with this the Security Agreement.

Section 6.

Obligations Secured; Certain Remedies.  This Security Agreement secures the payment and performance of all obligations of the Parent to the Secured Party under the Note and the other Loan Documents executed in connection therewith, whether now existing or hereafter arising and whether for principal, interest, costs, fees or otherwise (collectively, the "Obligations").  Upon the occurrence and continuation of an Event of Default under the Note and/or the other Loan Documents, the Secured Party may declare all obligations secured hereby immediately due and payable and may exercise the remedies of a secured party under the Uniform Commercial Code.  Without limiting the foregoing, the Secured Party may require the Debtor to assemble the Collateral and make it available to the Secured Party at a place to be designated by the Secured Party which is reasonably convenient to both parties or to execute appropriate documents of assignment, transfer and conveyance, in each case, in order to permit the Secured Party to take possession of and title to the Collateral.  Unless the Collateral is perishable or threatens to decline rapidly in value or is of a type customarily sold on a recognized market, the Secured Party will give the Debtor reasonable notice of the time and place of any public sale thereof or of the time after which any private sale or any other intended disposition thereof is to be made.  The requirements of reasonable notice shall be met if such notice is mailed to the Debtor via registered or certified mail, postage prepaid, at least thirty (30) days before the time of sale or disposition.  Expenses of retaking, holding, preparing for sale, selling or the like, shall include the Secured Party's reasonable attorneys' fees and legal expenses.

Section 7.

Debtor Remains Liable.  Anything herein to the contrary notwithstanding:

(a)

Notwithstanding the exercise of any remedy available to the Secured Party hereunder or at law in connection with an Event of Default, the Parent shall remain liable to repay the balance remaining unpaid and outstanding under the Note after the value or proceeds received by the Secured Party in connection with such remedy is subtracted.  The Secured Party shall promptly deliver and pay over to the Debtor any portion of the value or proceeds received in connection with such remedy that remains after the unpaid and outstanding portion of the Note is paid in full.

(b)

The Debtor shall remain liable under the contracts and agreements included in the Collateral to the extent set forth therein and shall perform all of its duties and obligations under such contracts and agreements to the same extent as if this Security Agreement had not been executed.

(c)

The exercise by the Secured Party of any of its rights hereunder shall not release the Debtor from any of its duties or obligations under any such contracts or agreements included in the Collateral.

(d)

The Secured Party shall not have any obligation or liability under any such contracts or agreements included in the Collateral by reason of this Security Agreement, nor shall the Secured Party be obligated to perform any of the obligations or duties of the Debtor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

Section 8.

Security Interest Absolute.  All rights of the Secured Party and the security interests granted to the Secured Party hereunder shall be absolute and unconditional, to the maximum extent permitted by law, irrespective of:

(a)

Any lack of validity or enforceability of the Note or any other document or instrument relating thereto;

(b)

Any change in the time, manner or place of payment of, or in any other term of, all or any part of the Obligations or any other amendment to or waiver of or any consent to any departure from the Note or any other Loan Document;

(c)

Any exchange, release or non-perfection of any collateral (including the Collateral), or any release of or amendment to or waiver of or consent to or departure from any guaranty, for all or any of the Obligations; or

(d)

Any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Debtor, a guarantor or a third party grantor of a security interest. 

Section 9.

Additional Assurances.  At the request of the Secured Party, the Debtor will join in executing or will execute, as appropriate, all necessary financing statements in a form reasonably satisfactory to the Secured Party, and the Debtor will pay the cost of filing such statements, including all statutory fees.  The Debtor will further execute all other instruments deemed necessary by the Secured Party and pay the cost of filing such instruments.  The Debtor warrants that no financing statement covering Collateral or any part or proceeds thereof is presently on file in any public office.  The Debtor covenants that it will not grant any other security interest in the Collateral without first obtaining the written consent of the Secured Party.

Section 10.

Representations, Warranties and Covenants Concerning Debtor's Legal Status.

(a)

The Debtor has previously executed and delivered to the Secured Party a Perfection Certificate in the form of Schedule I hereto.  The Debtor represents and warrants to the Secured Party as follows:

(i)

Debtor's exact legal name is as indicated on the Perfection Certificate and on the signature page hereof;

(ii)

Debtor is an organization of the type, and is organized in the jurisdiction, set forth in the Perfection Certificate;

(iii)

the Perfection Certificate accurately sets forth Debtor's organizational identification number or accurately states that Debtor has none;

(iv)

the Perfection Certificate accurately sets forth Debtor's place of business or, if more than one, its chief executive office as well as Debtor's mailing address, if different; and

(v)

all other information set forth on the Perfection Certificate is accurate and complete.

(b)

The Debtor covenants with the Secured Party as follows:

(i)

without providing fifteen (15) days' prior written notice to the Secured Party, Debtor will not change its name, its place of business, or, if more than one, its chief executive offices or its mailing address or organizational identification number, if it has one;

(i)

if Debtor does not have an organizational identification number and later obtains one, Debtor shall forthwith notify the Secured Party of such organizational identification number; and

(ii)

without providing fifteen (15) days prior written notice to the Secured Party, Debtor will not change its type of organization or jurisdiction of organization.

Section 11.

Expenses.  The Debtor will upon demand pay to the Secured Party the amount of any and all reasonable expenses, including the reasonable fees and disbursements of its counsel and of any experts and agents, which the Secured Party may incur in connection with (i) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any of the Collateral upon the occurrence and continuation of an Event of Default, (ii) the exercise or enforcement of any of the rights of the Secured Party hereunder, or (iii) the failure by the Debtor to perform or observe any of the provisions hereof.

Section 12.

Notices of Loss or Depreciation.  The Debtor will immediately notify the Secured Party of any material claim, suit or proceeding against any Collateral or any material event causing loss or depreciation in the value of Collateral, including an estimate the amount of such loss or depreciation

Section 13. 

No Waivers.  No waiver by the Secured Party of any default shall operate as a waiver of any other default or of the same default on any subsequent occasion. 

Section 14.

Successor and Assigns.  The Secured Party shall have the right to assign this Security Agreement and its rights hereunder without the consent of the Debtor.  All rights of the Secured Party shall inure to the benefit of the successors and assigns of the Secured Party.  All obligations of the Debtor shall be binding upon the Debtor's successors and assigns.

Section 15.

No Grant of Security Interest on Assets.  The Debtor covenants that it shall not grant a security interest in any of its assets, tangible or intangible, except for the security interest granted in the Collateral to the Secured Party hereunder.  

Section 16.

Governing Law; Jurisdiction.  This Security Agreement shall be governed by the laws of the State of New York, without giving effect to such jurisdiction's principles of conflict of laws, except to the extent that the validity or the perfection of the security interest hereunder, or remedies hereunder, in respect of any particular Collateral are governed by the laws of a jurisdiction other than the State of New York.  Each of the parties hereto submits to the personal jurisdiction of and each agrees that all proceedings relating hereto shall be brought in federal or state courts located in the State of New York.

Section 17.

Counterparts.  This Security Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together shall constitute one and the same instrument.

Section 18. 

Remedies Cumulative.  The rights and remedies herein are cumulative, and not exclusive of other rights and remedies which may be granted or provided by law. 

Section 19.

Notices.  Any notices required or permitted to be given under the terms of this Note shall be sent by certified or registered mail (return receipt requested) or delivered personally or by courier (including a recognized overnight delivery service) or by facsimile and shall be effective five days after being placed in the mail, if mailed by regular United States mail, or upon receipt, if delivered personally or by courier (including a recognized overnight delivery service) or by facsimile, in each case addressed to a party.  The addresses for such communications shall be:

If to the Lender:

Agile Opportunity Fund, LLC

1175 Walt Whitman Road, Suite 100A

Melville, NY 11747

Attn:  David Propis

Facsimile: (631) 424-9010    

With a copy to (which shall not constitute notice):      

Westerman Ball Ederer Miller & Sharfstein, LLP

170 Old Country Road

Mineola, NY 11501

Attn:  Alan C. Ederer, Esq.

Facsimile: (516) 622-9212   

            If to the Debtor:

AdMax Media, Inc.

10409 Strathmore Drive

Santee, CA  92071

Attn:  Michael Levinsohn

Facsimile: (619) 890-8747

With a copy to (which shall not constitute notice):

Sheppard, Mullin, Richter & Hampton, LLP

12275 El Camino Real, Suite 200

San Diego, CA 92130

Attn:  James A. Mercer III

Facsimile: (858) 523-6705

Section 20.

Entire Agreement.  This Security Agreement and the documents and instruments referred to herein embody the entire agreement entered into between the parties relating to the subject matter hereof, and may not be amended, waived, or discharged except by an instrument in writing executed by the Secured Party.

  Section 21.

Termination.  This Security Agreement shall terminate upon the repayment in full of the Note upon which the Secured Party shall cooperate in the filing of the necessary or appropriate documents and instruments to release the security interest created hereby and will execute and deliver any and all documents and/or instruments reasonably requested by Debtor in connection therewith.

[Intentionally Left Blank; Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto, by their duly authorized agents, have executed this Security Agreement as of the date set forth above.

ADMAX MEDIA, INC.

By:___________________________________________

      Name:

      Title:   

AGILE OPPORTUNITY FUND, LLC

By: AGILE INVESTMENTS, LLC, Managing Member

    

 

By:___________________________________________

     Name: David I. Propis

 Title:  Managing Member

[SIGNATURE PAGE TO SECURITY AGREEMENT]

SCHEDULE I

PERFECTION CERTIFICATE

The undersigned, the President of AdMax Media, Inc., a Nevada corporation (the "Company"), hereby certifies, with reference to a certain Security Agreement, dated as of May __, 2009 (terms defined in such Security Agreement having the same meanings herein as specified therein), between the Company and the Secured Party named therein (the "Secured Party"), to the Secured Party as follows:

1.

Name.

The exact legal name of the Company as that name appears on its Certificate of Incorporation is as follows:  AdMax Media, Inc.

2.

Other Identifying Factors.  

(a) The following is the mailing address of the Company:

Address

County

State

345 Chapala Street

Santa Barbara

CA

(b)

If different from its mailing address, the Company's place of business or, if more than one, its chief executive office is located at the following address:

Address

County

State

(c)

The following is the type of organization of the Company:  Corporation

(d)

The following is the jurisdiction of the Company's organization: Nevada

(e)

The following is the Company's state issued organizational identification 

number:  EØØ96262ØØ9-7

3.

Other Names, Etc.

The following is a list of all other names (including trade names or similar appellations) used by the Company, or any other business or organization to which the Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years:  

Superfly Advertising, Inc.

Lenco USA, Inc.

4.

Other Current Locations.  

(a)

The following are all other locations in the United States of America in which the Company maintain any books or records relating to any of the Collateral consisting of accounts, instruments, chattel paper, general intangibles or mobile goods:

Address

County

State

None

(b)

The following are all other places of business of the Company in the United States of America:

Address

County

State

None

(c)

The following are all other locations in the United States of America where any of the Collateral consisting of inventory or equipment is located:

Address

County

State

One Wilshire Blvd.

Los Angeles

CA

(d)

The following are the names and addresses of all persons or entities other than the Company, such as lessees, consignees, warehousemen or purchasers of chattel paper, which have possession or are intended to have possession of any of the Collateral consisting of instruments, chattel paper, inventory or equipment:

Name

Mailing Address

County

State

None

IN WITNESS WHEREOF, I have hereunto signed this Perfection Certificate on July 23, 2009.

_____________________________

Name: 

Title:   President

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