Document:

curm_ex1021.htm

  EXHIBIT 10.21
 
SECURITY AGREEMENT
 
THIS SECURITY AGREEMENT (“Agreement”) is made and entered into as of__________ ___, 2017, by and among CÜR Media, Inc., a Delaware corporation (“CUR Media””), CUR Holdings, Inc., a Delaware corporation (“Holdings”), each subsidiary of CÜR Media listed on the signature pages hereof (each a “Subsidiary”), and the secured party listed on the signature pages hereof.
 
WITNESSETH:
 
WHEREAS, pursuant to that certain Securities Purchase Agreement, dated as of even date herewith (as such may be amended, restated, supplemented, or otherwise modified from time to time, including all schedules thereto, collectively, the “Purchase Agreement”), by and among CÜR Media, Holdings, and the secured party set forth as the Buyer on the signature page affixed thereto (the “Buyer” or “Secured Party”), Holdings has agreed to sell, and the Buyer has agreed to purchase, the New Note; and
 
WHEREAS, simultaneously with the closing of the sale of the New Note, Holdings shall consummate an initial closing, and may consummate additional closings, of its offering of Preferred Stock Units (the “Preferred Stock Unit Offering”), each Preferred Stock Unit consisting of (i) Unit Shares, which are convertible into shares of common stock of Holdings, and (ii) Unit Warrants to purchase shares of common stock of Holdings; and
 
WHEREAS, Holdings is negotiating a transaction with CÜR Media, pursuant to which, under certain circumstances, it will either (i) merge with and into CÜR Media (the “Merger”), or (ii) acquire all of the intellectual property and other assets and liabilities of CÜR Media related to CÜR Media’s Music Streaming Business (the “Asset Acquisition” and, together with the Merger, the “Combination Transaction”), as further described in the Term Sheet, dated September 11, 2017, by and between Holdings and CÜR Media, a copy of which is attached to the Purchase Agreement as Exhibit E; and
 
WHEREAS, each Grantor (as defined below) will receive direct and substantial benefits from the purchase by the Secured Party of the New Note; and
 
WHEREAS, it is a condition precedent to the Buyer purchasing the New Note that the Company (as defined below) and each other Grantor (as defined below) have granted a first priority security interest in and lien on the Collateral to the Secured Party, pari passu with the first priority security interest in and lien on the Collateral granted to holders of Preferred Stock Units sold by the Borrower in the Borrower’s Preferred Stock Unit Offering; and
 
	 
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NOW, THEREFORE, for and in consideration of the Purchase Agreement and the New Note, the other premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties covenant and agree as follows: 
 
1. Definitions.
 
Capitalized terms used herein without definition shall have the meanings ascribed to them in the Purchase Agreement. In addition to the words and terms defined elsewhere in this Agreement, the following words and terms shall have the following meanings, unless the context otherwise clearly requires:
 
“Accounts” shall have the meaning given to that term in the Code and shall include without limitation all rights of each Grantor, whenever acquired, to payment for goods sold or leased or for services rendered, whether or not earned by performance.
 
“Chattel Paper” shall have the meaning given to that term in the Code and shall include without limitation all writings owned by each Grantor, whenever acquired, which evidence both a monetary obligation and a security interest in or a lease of specific goods.
 
“Code” shall mean the Uniform Commercial Code as in effect on the date of this Agreement and as amended from time to time, of the state or states having jurisdiction with respect to all or any portion of the Collateral from time to time.
 
“Collateral” shall mean (i) all tangible and intangible assets of each Grantor, including, without limitation, collectively the Accounts, Chattel Paper, Deposit Accounts, Documents, Equipment, Fixtures, General Intangibles, Instruments, Intellectual Property, Inventory and Investment Property of each Grantor, and (ii) Proceeds of each of them.
 
“Company” shall mean (i) initially, Holdings, (ii) following the consummation of the Asset Acquisition, Holdings, and (iii) following the consummation of the Merger, CÜR Media.
 
“Deposit Accounts” shall have the meaning given to that term in the Code and shall include a demand, time, savings, passbook or similar account maintained with a bank, savings bank, savings and loan association, credit union, trust company or other organization that is engaged in the business of banking.
 
“Documents” shall have the meaning given to that term in the Code and shall include without limitation all warehouse receipts (as defined by the Code) and other documents of title (as defined by the Code) owned by each Grantor, whenever acquired.
 
“Equipment” shall have the meaning given to that term in the Code and shall include without limitation all goods owned by each Grantor, whenever acquired and wherever located, used or brought for use primarily in the business or for the benefit of each Grantor, and not included in Inventory of each Grantor, together with all attachments, accessories and parts used or intended to be used with any of those goods or Fixtures, whether now or in the future installed therein or thereon or affixed thereto, as well as all substitutes and replacements thereof in whole or in part.
 
	 
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“Event of Default” shall mean (i) any of the Events of Default described in the New Note or (ii) any default by a Grantor in the performance of its obligations under this Agreement. 
 
“Fixtures” shall have the meaning given to that term in the Code, and shall include without limitation leasehold improvements.
 
“General Intangibles” shall have the meaning given to that term in the Code and shall include, without limitation, all leases under which each Grantor, now or in the future leases and or obtains a right to occupy or use real or personal property, or both, all of the other contract rights of each Grantor, whenever acquired, and customer lists, choses in action, claims (including claims for indemnification), books, records, Intellectual Property, contracts, licenses, license agreements, tax and any other types of refunds, returned and unearned insurance premiums, rights and claims under insurance policies, and computer information, software, records and data, and oil, gas, or other minerals before extraction now owned or acquired after the date of this Agreement by each Grantor.
 
“Grantor” shall mean (i) initially, Holdings, (ii) following the consummation of the Asset Acquisition, Holdings, and (iii) following the consummation of the Merger, CÜR Media and any Subsidiary.
 
“Holder” means the Buyer and any person to whom a Buyer assigns all or any portion of the New Note in accordance with the terms thereof.
 
“Instruments” shall have the meaning given to that term in the Code and shall include, without limitation, all negotiable instruments (as defined in the Code), all certificated securities (as defined in the Code) and all other writings which evidence a right to the payment of money now or after the date of this Agreement owned by each Grantor.
 
“Intellectual Property” shall mean, all intellectual property of the Grantors including, without limitation all copyrights, trademarks, service marks, trade names, trade secrets, patents, all documented and undocumented research, ideas, data, theories, conclusions, reports, drawings, designs, blueprints, schematics, exhibits, models, prototypes, source code, object code, flow charts, manuals, processes, specifications, formulae, product configurations, notes, inventions (whether or not patentable and whether or not reduced to practice) and any other information of any kind developed, in development or maintained by the Grantors.
 
“Inventory” shall have the meaning given to that term in the Code and shall include without limitation all goods owned by each Grantor, whenever acquired and wherever located, held for sale or lease or furnished or to be furnished under contracts of service, and all raw materials, work in process and materials owned by each Grantor, and used or consumed in each Grantor’s business, whenever acquired and wherever located.
 
“Investment Property,” “Securities Intermediary” and “Commodities Intermediary” each shall have the meaning set forth in the Code.
 
“Loan Documents” shall mean collectively, this Agreement, the New Note, the Purchase Agreement, and all other agreements, documents and instruments executed and delivered in connection therewith, as each may be amended, restated, supplemented, replaced or otherwise modified from time to time in accordance with the terms thereof.
 
“Permitted Liens” shall mean all (i) all existing liens on the assets of a Grantor which have been disclosed to the Buyer by the Company on a Schedule I attached hereto, and (ii) all purchase money security interests hereinafter incurred by a Grantor in the ordinary course of business.
 
	 
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“Proceeds” shall have the meaning given to that term in the Code and shall include without limitation whatever is received when Collateral or Proceeds are sold, exchanged, collected or otherwise disposed of, whether cash or non-cash, and includes without limitation proceeds of insurance payable by reason of loss of or damage to Collateral.
 
Capitalized terms not otherwise defined in this Agreement or the Purchase Agreement shall have the meanings attributed to such terms in the Code.
 
2. Security Interest.
 
(a) As security for the full and timely payment of the amounts due pursuant to the New Note in accordance with the terms of the Purchase Agreement and the performance of the obligations of the Borrower under the Purchase Agreement, the New Note and the other Loan Documents, each Grantor agrees that the Holder shall have, and each Grantor hereby grants and conveys to and creates in favor of the Holder, a first priority security interest under the Code in and to its Collateral, pari passu with the first priority security interest in and lien on the Collateral granted to holders of Preferred Stock Units sold by the Company in the Company’s Preferred Stock Unit Offering, regardless of where located. The security interest granted to the Holder in this Agreement shall be a senior security interest, prior and superior to the rights of all third parties existing on or arising after the date of this Agreement, pari passu with the first priority security interest in and lien on the Collateral granted to holders of Preferred Stock Units sold by the Company in the Company’s Preferred Stock Unit Offering, subject to the Permitted Liens. 
 
(b) All of the Equipment, Inventory and Goods owned by each Grantor is located in the states as specified on Schedule I attached hereto (except to the extent any such Equipment, Inventory or Goods is in transit or located at such Grantor’s job site in the ordinary course of business). Except as disclosed on Schedule I, no material Collateral is in the possession of any bailee, warehousemen, processor or consignee. Schedule I discloses such Borrower name as of the date hereof as it appears in official filings in the state or province, as applicable, of its incorporation, formation or organization, the type of entity of Borrower (including corporation, partnership, limited partnership or limited liability company), the organizational identification number issued by Borrower’s state of incorporation, formation or organization (or a statement that no such number has been issued), and the chief place of business, chief executive officer and the office where Borrower keeps its books and records. Each Grantor has only one state or province, as applicable, of incorporation, formation or organization except as disclosed on Schedule I attached hereto. Each Grantor does not do business and have not done business during the past five (5) years under any trade name or fictitious business name except as disclosed on Schedule I attached hereto.
 
3. Provisions Applicable to the Collateral.
 
The parties agree that the following provisions shall be applicable to the Collateral: 
 
(a) Each Grantor covenants and agrees that at all times during the term of this Agreement it shall keep accurate and complete books and records concerning the Collateral that is now owned by the Grantor. 
 
	 
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(b) The Holder or his, her or its representatives shall have the right, upon reasonable prior written notice to a Grantor and during the regular business hours of the Grantor, to examine and inspect the Collateral and to review the books and records of the Grantor concerning the Collateral that is now owned or acquired after the date of this Agreement by the Grantor and to copy the same and make excerpts therefrom; provided, however, that from and after the occurrence of an Event of Default, the rights of inspection and entry shall be subject to the requirements of the Code. 
 
(c) Each Grantor shall at all times during the term of this Agreement keep the Equipment, Inventory and Fixtures that are now owned by each Grantor in the states set forth on Schedule I or, upon written notice to the Holder, at such other locations for which the Holder has filed financing statements, and in no other states without ten (10) days’ prior written notice to the Holder, except that each Grantor shall have the right until one or more Events of Default shall occur to sell, move or otherwise dispose of Inventory and other Collateral in the ordinary course of business. 
 
(d) Each Grantor shall not move the location of its principal executive offices without prior written notification to the Holder. 
 
(e) Without the prior written consent of the Holder, each Grantor shall not sell, lease or otherwise dispose of any Equipment or Fixtures, except in the ordinary course of their business. 
 
(f) Promptly upon request of the Holder, from time to time, each Grantor shall furnish the Holder with such information and documents regarding the Collateral and each Grantor’s financial condition, business, assets or liabilities, at such times and in such form and detail as the Holder may reasonably request.
 
(g) During the term of this Agreement, each Grantor shall deliver to the Holder, upon his, her or its reasonable, written request from time to time, without limitation, 
 
(i) all invoices and customer statements rendered to account debtors, documents, contracts, chattel paper, instruments and other writings pertaining to each Grantor’s contracts or the performance of each Grantor’s contracts, 
 
(ii) evidence of each Grantor’s accounts and statements showing the aging, identification, reconciliation and collection thereof, and 
 
(iii) reports as to each Grantor’s inventory and sales, shipment, damage or loss thereof, all of the foregoing to be certified by authorized officers or other employees of each Grantor, and Borrower shall take all necessary action during the term of this Agreement to perfect any and all security interests in favor of each Grantor and to assign to the Holder all such security interests in favor of each Grantor. 
 
(h) Notwithstanding the security interest in the Collateral granted to and created in favor of the Holder under this Agreement, each Grantor shall have the right until one or more Events of Default shall occur, at its own cost and expense, to collect the Accounts and the Chattel Paper and to enforce their contract rights. 
 
	 
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(i) Subject to restrictions applicable to the Preferred Stock Units and the Permitted Liens, after the occurrence of an Event of Default, the Holder shall have the right, in his, her or its sole discretion, to give notice of the Holder’s security interest to account debtors obligated to each Grantor and to take over and direct collection of the Accounts and the Chattel Paper, to notify such account debtors to make payment directly to the Holder and to enforce payment of the Accounts and the Chattel Paper and to enforce each Grantor’s contract rights. It is understood and agreed by each Grantor that the Holder shall have no liability whatsoever under this subsection, except for his, her or its own gross negligence or willful misconduct. 
 
(j) At all times during the term of this Agreement, each Grantor shall promptly deliver to the Holder, upon the written request of the Holder, all existing leases, and all other leases entered into by each Grantor from time to time, covering any material Equipment or Inventory (the “Leased Inventory”) which is leased to third parties. 
 
(k) Each Grantor shall not change its name, entity status, federal taxpayer identification number, or provincial organizational or registration number, or the state under which it is organized without the prior written consent of the Holder, which consent shall not be unreasonably withheld, conditioned or delayed. 
 
(l) Each Grantor shall not close any of its Deposit Accounts or open any new or additional Deposit Accounts without first giving the Holder at least ten (10) days’ prior written notice thereof; however, the Holder has the power to waive a portion of the notice period if such waiver does not harm Holder’s security position. 
 
(m) Subject to restrictions applicable to the Preferred Stock Units and the Permitted Liens, each Grantor shall cooperate with the Holder, at each Grantor’s reasonable expense, in perfecting Holder’s security interest in any of the Collateral. Each Grantor agrees that from time to time, at its own expense, such Grantor will promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or that the Holder may reasonably request, in order to perfect and protect the security interest granted or purported to be granted hereby or to enable the Holder to exercise and enforce his, her or its rights and remedies hereunder with respect to any of the Collateral. 
 
(n) Subject to restrictions applicable to the Preferred Stock Units and the Permitted Liens, the Holder may file any necessary financing statements and other documents they deem reasonably necessary in order to perfect the Holder’s security interest without either Grantor’s signature. Each Grantor grants to the Holder a power of attorney for the sole purpose of executing any documents on behalf of each Grantor which the Holder deems reasonably necessary to perfect the Holder’s security interest. Such power, coupled with an interest, is irrevocable.
 
	 
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4. Actions with Respect to Accounts.
 
Each Grantor irrevocably makes, constitutes and appoints the Holder its true and lawful attorney-in-fact with power to sign its name and to take any of the following actions after the occurrence and prior to the cure of an Event of Default, at any time without notice to either Grantor and at each Grantor’s reasonable expense, subject to restrictions applicable to the Preferred Stock Units and the Permitted Liens: 
 
(a) Verify the validity and amount of, or any other matter relating to, the Collateral by mail, telephone, telegraph or otherwise;
 
(b) Notify all account debtors that the Accounts have been assigned to the Holder and that the Holder has a security interest in the Accounts;
 
(c) Direct all account debtors to make payment of all Accounts directly to the Holder;
 
(d) Take control in any reasonable manner of any cash or non-cash items of payment or proceeds of Accounts;
 
(e) Receive, open and respond to all mail addressed to each Grantor;
 
(f) Take control in any manner of any rejected, returned, stopped in transit or repossessed goods relating to Accounts;
 
(g) Enforce payment of and collect any Accounts, by legal proceedings or otherwise, and for such purpose the Holder may:
 
(i) Demand payment of any Accounts or direct any account debtors to make payment of Accounts directly to the Holder; 
 
(ii) Receive and collect all monies due or to become due to each Grantor pursuant to the Accounts; 
 
(iii) Exercise all of each Grantor’s rights and remedies with respect to the collection of Accounts;
 
	 
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(iv) Settle, adjust, compromise, extend, renew, discharge or release Accounts in a commercially reasonable manner; 
 
(v) Sell or assign Accounts on such reasonable terms, for such reasonable amounts and at such reasonable times as the Holder reasonably deems advisable; 
 
(vi) Prepare, file and sign each Grantor’s name or names on any Proof of Claim or similar documents in any proceeding filed under federal or state bankruptcy, insolvency, reorganization or other similar law as to any account debtor; 
 
(vii) Prepare, file and sign each Grantor’s name or names on any notice of lien, claim of mechanic’s lien, assignment or satisfaction of lien or mechanic’s lien or similar document in connection with the Collateral; 
 
(viii) Endorse the name of each Grantor upon any chattel papers, documents, instruments, invoices, freight bills, bills of lading or similar documents or agreements relating to Accounts or goods pertaining to Accounts or upon any checks or other media of payment or evidence of a security interest that may come into the Holder’s possession; 
 
(ix) Sign the name or names of each Grantor to verifications of Accounts and notices of Accounts sent by account debtors to each Grantor; or 
 
(x) Take all other actions that the Holder reasonably deems to be necessary or desirable to protect each Grantor’s interest in the Accounts. 
 
(h) Negotiate and endorse any Document in favor of the Holder or his, her or its designees, covering Inventory which constitutes Collateral, and related documents for the purpose of carrying out the provisions of this Agreement and taking any action and executing in the name(s) of Borrower any instrument which the Holder may reasonably deem necessary or advisable to accomplish the purpose hereof. Without limiting the generality of the foregoing, the Holder shall have the right and power to receive, endorse and collect checks and other orders for the payment of money made payable to each Grantor representing any payment or reimbursement made under, pursuant to or with respect to, the Collateral or any part thereof and to give full discharge to the same. Each Grantor does hereby ratify and approve all acts of said attorney and agrees that said attorney shall not be liable for any acts of commission or omission, nor for any error of judgment or mistake of fact or law, except for said attorney’s own gross negligence or willful misconduct. This power, being coupled with an interest, is irrevocable until the New Note is paid in full (at which time this power shall terminate in full) and each Grantor shall have performed all of its obligations under this Agreement. Each Grantor further agrees to use its reasonable efforts to assist the Holder in the collection and enforcement of the Accounts and will not hinder, delay or impede the Holder in any manner in his, her or its collection and enforcement of the Accounts.
 
	 
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5. Preservation and Protection of Security Interest.
 
Each Grantor represents and warrants that it has, and covenants and agrees that at all times during the term of this Agreement, it will have, good and marketable title to the Collateral now owned by it free and clear of all mortgages, pledges, liens, security interests, charges or other encumbrances, except for the Preferred Stock Units and the Permitted Liens and those junior in right of payment and enforcement to that of the Holder or in favor of the Holder, and shall defend the Collateral against the claims and demands of all persons, firms and entities whomsoever. Assuming the Holder has taken all required action to perfect a security interest in the Collateral as provided by the Code, each Grantor represents and warrants that as of the date of this Agreement the Holder has, and that all times in the future the Holder will have, a first priority perfected security interest in the Collateral, prior and superior to the rights of all third parties in the Collateral existing on the date of this Agreement or arising after the date of this Agreement, pari passu with the first priority security interest in and lien on the Collateral granted to holders of Preferred Stock Units sold by the Company in the Company’s Preferred Stock Unit Offering, subject to the Permitted Liens. Except as permitted by this Agreement, each Grantor covenants and agrees that it shall not, without the prior written consent of the Holder (i) borrow against the Collateral or any portion of the Collateral from any other person, firm or entity, except for borrowings which are subordinate to the rights of the Holder, (ii) grant or create or permit to attach or exist any mortgage, pledge, lien, charge or other encumbrance, or security interest on, of or in any of the Collateral or any portion of the Collateral except those in favor of the Holder, the holders of Preferred Stock Units, or the Permitted Liens, (iii) permit any levy or attachment to be made against the Collateral or any portion of the Collateral, except those subject to the Preferred Stock Units, or the Permitted Liens, or (iv) permit any financing statements to be on file with respect to any of the Collateral, except financing statements in favor of the Holder, the holders of the Preferred Stock Units, or those with respect to the Permitted Liens. Each Grantor shall faithfully preserve and protect the Holder’s security interest in the Collateral and shall, at its own reasonable cost and expense, cause, or assist the Holder to cause that security interest to be perfected and continue perfected so long as the New Note or any portion of the New Note is outstanding, unpaid or executory. For purposes of the perfection of the Holder’s security interest in the Collateral in accordance with the requirements of this Agreement, each Grantor shall from time to time at the request of the Holder file or record, or cause to be filed or recorded, such instruments, documents and notices, including assignments, financing statements and continuation statements, as the Holder may reasonably deem necessary or advisable from time to time in order to perfect and continue perfected such security interest. Each Grantor shall do all such other acts and things and shall execute and deliver all such other instruments and documents, including further security agreements, pledges, endorsements, assignments and notices, as the Holder in his, her or its discretion may reasonably deem necessary or advisable from time to time in order to perfect and preserve the priority of such security interest as a first lien security interest in the Collateral prior to the rights of all third persons, firms and entities, pari passu with the first priority security interest in and lien on the Collateral granted to holders of Preferred Stock Units sold by the Company in the Company’s Preferred Stock Unit Offering, and subject to the Permitted Liens, and except as may be otherwise provided in this Agreement. Each Grantor agrees that a carbon, photographic or other reproduction of this Agreement or a financing statement is sufficient as a financing statement and may be filed instead of the original.
 
	 
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6. Insurance.
 
Risk of loss of, damage to or destruction of the Equipment, Inventory and Fixtures is on each Grantor. Each Grantor shall insure the Equipment, Inventory and Fixtures against such risks and casualties and in such amounts and with such insurance companies as is ordinarily carried by corporations or other entities engaged in the same or similar businesses and similarly situated or as otherwise reasonably required by the Holder in his, her or its sole discretion. In the event of loss of, damage to or destruction of the Equipment, Inventory or Fixtures during the term of this Agreement, each Grantor shall promptly notify the Holder of such loss, damage or destruction. At the reasonable request of the Holder, each Grantor’s policies of insurance shall contain loss payable clauses in favor of each Grantor and the Holder as his, her or its respective interests may appear and shall contain provision for notification of the Holder thirty (30) days prior to the termination of such policy. At the request of the Holder, copies of all such policies, or certificates evidencing the same, shall be deposited with the Holder. If any Grantor fails to effect and keep in full force and effect such insurance or fail to pay the premiums when due, the Holder may (but shall not be obligated to) do so for the account of such Grantor and add the cost thereof to the New Note. The Holder are irrevocably appointed attorney-in-fact of each Grantor to endorse any draft or check which may be payable to each Grantor in order to collect the proceeds of such insurance. Unless an Event of Default has occurred and is continuing, the Holder will turn over to each Grantor the proceeds of any such insurance collected by the Holder on the condition that each Grantor apply such proceeds either (i) to the repair of damaged Equipment, Inventory or Fixtures, or (ii) to the replacement of destroyed Equipment, Inventory or Fixtures with Equipment, Inventory or Fixtures of the same or similar type and function and of at least equivalent value (in the sole judgment of the Holder), provided such replacement Equipment, Fixtures or Inventory is made subject to the security interest created by this Agreement and constitutes a first lien security interest in the Equipment, Inventory and Fixtures subject only to Permitted Liens and other security interests permitted under this Agreement, including under the Preferred Stock Units, and is perfected by the filing of financing statements in the appropriate public offices and the taking of such other action as may be necessary or desirable in order to perfect and continue perfected such security interest. Any balance of insurance proceeds remaining in the possession of the Holder after payment in full of the New Note shall be paid over to the applicable Grantor or its order.
 
7. Maintenance and Repair.
 
Each Grantor shall maintain the Equipment, Inventory and Fixtures, and every portion thereof, in good condition, repair and working order, reasonable wear and tear alone excepted, and shall pay and discharge all taxes, levies and other impositions assessed or levied thereon as well as the cost of repairs to or maintenance of the same. If any Grantor fails to do so, the Holder may (but shall not be obligated to) pay the cost of such repairs or maintenance and such taxes, levies or impositions for the account of such Grantor and add the amount of such payments to the principal of the New Note.
 
	 
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8. Preservation of Rights against Third Parties; Preservation of Collateral in Holder’s Possession.
 
Until such time as the Holder exercises his, her or its right to effect direct collection of the Accounts and the Chattel Paper and to effect the enforcement of each Grantor’s contract rights, each Grantor assumes full responsibility for taking any and all commercially reasonable steps to preserve rights in respect of the Accounts and the Chattel Paper and their contracts against prior parties. The Holder shall be deemed to have exercised reasonable care in the custody and preservation of such of the Collateral as may come into its possession from time to time if the Holder take such action for that purpose as the relevant Grantor shall request in writing, provided that such requested action shall not, in the judgment of the Holder, impair the Holder’s security interest in the Collateral or its right in, or the value of, the Collateral, and provided further that the Holder receives such written request in sufficient time to permit the Holder to take the requested action.
 
9. Events of Default and Remedies.
 
(a) If any one or more of the Events of Default shall occur or shall exist, the Holder may then or at any time thereafter, so long as such default shall continue, foreclose the lien or security interest in the Collateral in any way permitted by law, or upon twenty (20) days’ prior written notice to the relevant Grantor, sell any or all Collateral at private sale at any time or place in one or more sales, at such price or prices and upon such terms, either for cash or on credit, as the Holder, in his, her or its sole discretion, may elect, or sell any or all Collateral at public auction, either for cash or on credit, as the Holder, in his, her or its sole discretion, may elect, and at any such sale, the Holder may bid for and become the Buyer of any or all such Collateral. Pending any such action the Holder may liquidate the Collateral. 
 
(b) If any one or more of the Events of Default shall occur or shall exist, the Holder may then, or at any time thereafter, so long as such default shall continue, grant extensions to, or adjust claims of, or make compromises or settlements with, debtors, guarantors or any other parties with respect to Collateral or any securities, guarantees or insurance applying thereon, without notice to or the consent of any Grantor, without affecting each Grantor’s liability under this Agreement or the New Note. Each Grantor waives notice of acceptance, of nonpayment, protest or notice of protest of any Accounts or Chattel Paper, any of its contract rights or Collateral and any other notices to which each Grantor may be entitled.
 
	 
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(c) If any one or more of the Events of Default shall occur or shall exist and be continuing, then in any such event, the Holder shall have such additional rights and remedies in respect of the Collateral or any portion thereof as are provided by the Code and such other rights and remedies in respect thereof which him, her or it may have at law or in equity or under this Agreement, including without limitation the right to enter any premises where Equipment, Inventory and/or Fixtures are located and take possession and control thereof without demand or notice and without prior judicial hearing or legal proceedings, which each Grantor expressly waives.
 
(d) The Holder shall apply the Proceeds of any sale or liquidation of the Collateral, and, subject to Section 5 hereof, any Proceeds received by the Holder from insurance, first to the payment of the reasonable costs and expenses incurred by the Holder in connection with such sale or collection, including without limitation reasonable attorneys’ fees and legal expenses; second to the repayment of the New Note and to the payment of amount due to the holders of Preferred Stock Units, pro rata, whether on account of principal or interest or otherwise as the Holder, in his, her or its sole discretion, may elect, and then to pay the balance, if any, to the relevant Grantor or as otherwise required by law. If such Proceeds are insufficient to pay the amounts required by law, the Grantors shall be liable for any deficiency.
 
(e) Upon the occurrence of any Event of Default, each Grantor shall promptly upon written demand by the Holder assemble the Equipment, Inventory and Fixtures and make them available to the Holder at a place or places to be designated by the Holder. The rights of the Holder under this paragraph to have the Equipment, Inventory and Fixtures assembled and made available to them is of the essence of this Agreement and the Holder may, at his, her or its election, enforce such right by an action in equity for injunctive relief or specific performance, without the requirement of a bond. 
 
10. Defeasance.
 
Notwithstanding anything to the contrary contained in this Agreement, upon payment and performance in full of the New Note, this Agreement shall terminate and be of no further force and effect, and the Holder shall thereupon terminate his, her or its security interest in the Collateral. Until such time, however, this Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns, provided that, without the prior written consent of the Holder, no Grantor may assign this Agreement or any of its rights under this Agreement or delegate any of its duties or obligations under this Agreement and any such attempted assignment or delegation shall be null and void. This Agreement is not intended and shall not be construed to obligate the Holder to take any action whatsoever with respect to the Collateral or to incur expenses or perform or discharge any obligation, duty or disability of any Grantor.
 
11. Miscellaneous.
 
(a) The provisions of this Agreement are intended to be severable. If any provision of this Agreement shall for any reason be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability of such provision in any other jurisdiction or any other provision of this Agreement in any jurisdiction. 
 
	 
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(b) No failure or delay on the part of the Holder in exercising any right, remedy, power or privilege under this Agreement and the New Note shall operate as a waiver thereof or of any other right, remedy, power or privilege of the Holder under this Agreement, the New Note or any of the other Loan Documents; nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other right, remedy, power or privilege or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges of the Holder under this Agreement, the New Note and the other Loan Documents are cumulative and not exclusive of any rights or remedies which they may otherwise have.
 
(c) Unless otherwise provided herein, all demands, notices, consents, service of process, requests and other communications hereunder shall be in writing and shall be delivered in person or by overnight courier service, or mailed by certified mail, return receipt requested, addressed:
 
If to Borrower or any other Grantor: At the address for the Borrower set forth in the Purchase Agreement. 
 
If to the Holder: At the address for the Holder set forth in the Holder’s signature page to the Purchase Agreement or the address otherwise communicated by the Holder to the Borrower in writing for such notice purposes.
 
Any such notice shall be effective when delivered, if delivered by hand delivery, overnight courier service, or U.S. Mail return receipt requested.
 
(d) The section headings contained in this Agreement are for reference purposes only and shall not control or affect its construction or interpretation in any respect. 
 
(e) Unless the context otherwise requires, all terms used in this Agreement which are defined by the Code shall have the meanings stated in the Code. 
 
(f) The Code shall govern the settlement, perfection and the effect of attachment and perfection of the Holder’s security interest in the Collateral, and the rights, duties and obligations of the Holder and each Grantor with respect to the Collateral. This Agreement shall be deemed to be a contract under the laws of the State of Delaware and the execution and delivery of this Agreement and, to the extent not inconsistent with the preceding sentence, the terms and provisions of this Agreement shall be governed by and construed in accordance with the laws of that State. EACH GRANTOR HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
 
(g) This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. All of such counterparts shall be read as though one, and they shall have the same force and effect as though all the signers had signed a single page. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.
 
[The remainder of the page is left blank intentionally. Signature page follows.]
 
	 
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IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed and delivered this Security Agreement as of the day and year set forth at the beginning of this Security Agreement.
 
 
	GRANTORS:	CUR HOLDINGS, INC., a Delaware corporation	
	 	 	 	 
	Date	By:		
	 
	Name: 
	William F. Duker
	 
	 	Title: 	President	 
	 	 	 	 
	 
	 
	 
	 

	 
	CÜR MEDIA, INC., a Delaware corporation
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	Name: 
	Thomas Brophy
	 

	 
	Title: 
	Chief Executive Officer 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	CUR MEDIA, LLC, 
a Connecticut limited liability company
	 

	 
	 
	 
	 

	 
	By: 
	 
	 

	 
	Name:
	Thomas Brophy
	 

	 
	Title:
	President
	 

 
[SECURED PARTY SIGNS BY EXECUTING OMNIBUS SIGNATURE PAGE 
TO THE PURCHASE AGREEMENT]
 
 
	14curm_ex1022.htm

  EXHIBIT 10.22
 
ASSIGNMENT AND TRANSFER AGREEMENT
 
THIS ASSIGNMENT AND TRANSFER AGREEMENT (this “Agreement”) is made as of [__________ __], 2017, by and among CÜR Media, Inc., a Delaware corporation (the “Company”), CUR Holdings, Inc., a Delaware corporation (the “Assignee”), and the undersigned noteholders of the Company (each, an “Assignor” and, collectively, the “Assignors”).
 
RECITALS
 
WHEREAS, each Assignor is a party to a securities purchase agreement by and between the Company and such Assignor (as amended, restated, supplemented or otherwise modified from time to time, the “Note Purchase Agreement”), and certain related documents, that evidence a loan from such Assignor to the Company, which are listed on Exhibit A attached hereto and are incorporated herein by this reference (together with the Note Purchase Agreement, collectively referred to herein as the “Transaction Documents”); and
 
WHEREAS, pursuant to the Transaction Documents, the Company issued to the Assignors 12% Senior Secured Convertible Promissory Notes in the aggregate principal amount of Two Million Five Hundred Fifteen Thousand and 00/100 Dollars ($2,515,000.00), in the denominations set forth on Exhibit B hereto (each, a “Note” and, collectively, the “Notes”), and granted each Assignor a first priority security interest in all of the Company’s intellectual property and other assets, to secure the Company’s obligation to repay any and all amounts due under the Notes, pari passu with the other Assignors, on a pro rata basis; and
 
WHEREAS, pursuant to the terms of the Transaction Documents, as amended, the principal amount of, and any accrued and unpaid interest due under, the Notes, is currently convertible into units of the Company’s securities on an optional and/or a mandatory basis, under certain circumstances; and
 
WHEREAS, the Assignee seeks to complete a private placement offering (“Offering”) of a minimum of $6,000,000 of units of securities of the Assignee, pursuant to the terms of a securities purchase agreement (the “Unit Purchase Agreement”) by and among the Assignee, the Company and certain Subscribers (individually, a “Subscriber” and, collectively, the “Subscribers”); and
 
WHEREAS, the Assignee is negotiating a transaction with the Company, pursuant to which, under certain circumstances, the Assignee will either (a) merge with and into the Company (the “Merger”), or (b) acquire the assets and liabilities of the Company related to the Company’s music streaming business (the “Asset Transfer’), as further described in the Term Sheet, dated September 11, 2017, by and between the Company and the Assignee, a copy of which is attached hereto as Exhibit C; and
 
WHEREAS, as a material condition to the execution and delivery of the Unit Purchase Agreement by the Subscribers, the Subscribers are requiring that (a) the Assignors grant, assign, convey, transfer and set over to the Assignee all of the Assignors’ right, title, interest and obligations in, to and under the Notes in exchange for units of securities of the Assignee, and (b) that the Assignors execute and deliver a Voting Agreement, substantially in the form of Exhibit D to this Agreement (the “Voting Agreement”), agreeing to vote the Secured Note Conversion Unit Shares (as defined below) and the Secured Note Conversion Unit Warrant Shares (as defined below) in favor of the Merger and/or the Asset Transfer, as applicable; and
 
	 
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WHEREAS, the Assignee, the Assignors and the Company desire for each Assignor’s entire Assigned Interest (as defined below) to be assigned, conveyed, transferred and set over to the Assignee, in exchange for the Assignee’s issuance to the Assignors of units of securities of the Assignee (each, a “Secured Note Conversion Unit” and, collectively, the “Secured Note Conversion Units”), each Secured Note Conversion Unit consisting of (a) one (1) share (each a “Secured Note Conversion Unit Share” and, collectively, the “Secured Note Conversion Unit Shares”) of the Assignee’s common stock, $0.0001 par value per share (“Assignee Common Stock”), and (b) a 5-year warrant, substantially in the form of Exhibit E to this Agreement (each a “Secured Note Conversion Unit Warrant” and, collectively, the “Secured Note Conversion Unit Warrants”), to purchase one (1) share of Assignee Common Stock (each a “Secured Note Conversion Unit Warrant Share” and, collectively, the “Secured Note Conversion Unit Warrant Shares”) for every Secured Note Conversion Unit Share received upon exchange, at an exchange rate of $2.00 of principal and interest due under the Notes per Secured Note Conversion Unit, subject to the terms and conditions set forth herein; and
 
WHEREAS, in the event of the consummation of the Merger, the Company has agreed to provide the Assignors with registration rights with respect to their Secured Note Conversion Unit Shares and Secured Note Conversion Unit Warrant Shares, or securities of the Company they receive in exchange for their Secured Note Conversion Unit Shares and Secured Note Conversion Unit Warrant Shares, pursuant to the terms of a Registration Rights Agreement among the Company, the Assignors and certain other parties thereto, substantially in the form of Exhibit F to this Agreement (the “Registration Rights Agreement”).
 
AGREEMENT
 
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
 
1. Assignment of Transaction Documents. 
 
(a) Simultaneously with the initial closing of the Offering (the “Effective Time”), and in consideration for the assignment to the Assignee by each Assignor of such Assignor’s Assigned Interest (as defined below), the Assignee will issue to the Assignors Secured Note Conversion Units, each Secured Note Conversion Unit consisting of (i) one (1) Secured Note Conversion Unit Share, and (ii) a Secured Note Conversion Unit Warrant to purchase one (1) Secured Note Conversion Unit Warrant Share for every Secured Note Conversion Unit Share received upon exchange, in the denominations set forth on Exhibit B hereto. The issuance of the Secured Note Conversion Units from the Assignee to the Assignors shall constitute full payment to the Assignors of all amounts due and owing to them under the Notes and other Transaction Documents, and, thereafter, the Assignors shall cease to be the holders of the Notes and shall have no further rights or obligations under the Transaction Documents.
 
	 
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(b) At the Effective Time, and in consideration for the issuance to each Assignor by the Assignee of the Secured Note Conversion Units, in the denominations set forth on Exhibit B hereto, each Assignor will grant, assign, convey, transfer and set over to Assignee, and Assignee will assume and accept, (x) all of such Assignor’s right, title, interest and obligations in, to and under the Notes and all of the other Transaction Documents, and its rights and remedies thereunder, and (y) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other rights Assignor (in its capacity as “Buyer” (as defined in the Note Purchase Agreement)) has against any person, whether known or unknown, arising under or in connection with the Transaction Documents or the loan transactions governed thereby or in any way related to any of the foregoing, including, but not limited to, contract claims, statutory claims and all other claims at law or equity related to the right, title and interest sold and assigned pursuant to clause (x) above (the right, title and interest and claims, suits, causes of action and other rights sold and assigned by the Assignors to the Assignee pursuant to clauses (x) and (y) above being referred to herein collectively as the “Assigned Interest”). Immediately following the initial closing of the Offering, each Assignor shall: (i) deliver to Assignee each of the original Transaction Documents in Assignor’s possession; and (ii) execute any other documents the Assignee reasonably requests to facilitate such Assignor’s assignment and transfer to the Assignor of the Assignor’s Assigned Interest, at Assignee’s sole cost and expense.
 
2. Scope of Assigned Transaction Documents; Acceptance of Assignment. At the Effective Time, the Company and the Assignee shall accept the assignment set forth in Section 1 hereof. The Company and the Assignee each hereby expressly acknowledge and agree that this Agreement shall be effective as to the Transaction Documents referenced on Exhibit A hereto; provided, however, that the term “Holder,” as defined in the Note shall thereafter mean the Assignee. 
 
3. Assignee and Assignor Information. As a condition precedent to the effectiveness of the assignment set forth in Section 1 hereof: (a) the Assignee shall complete and deliver to the Company (i) the Investor Certification, attached hereto as Exhibit G, (ii) the Investor Profile, attached hereto as Exhibit H, and (iii) the Anti-Money Laundering Information Form, attached hereto as Exhibit I, and (b) each Assignor shall complete and deliver to the Assignee (i) the Investor Certification, attached hereto as Exhibit G, (ii) the Investor Profile, attached hereto as Exhibit H, and (iii) the Anti-Money Laundering Information Form, attached hereto as Exhibit I.
 
4. Company’s Representations. The Company represents, warrants, and covenants to the Assignee and the Assignors that the execution by the Company of this Agreement and the performance by the Company of the Company’s obligations hereunder, respectively, have been duly authorized by all requisite corporate action, and will not violate any order of any court or governmental agency or any agreement by which the Company is bound. This Agreement has been duly executed and delivered by the Company and, upon the execution and delivery of it by the other parties hereto, assuming the due execution and delivery by the other parties hereto, constitutes, and will constitute, the legal and binding obligation of the Company in accordance with its terms.
 
	 
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5. Assignors’ Representations. Each Assignor represents, warrants, and covenants to the Assignee and the Company that:
 
(a) General. (i) the execution by the Assignor of this Agreement and the performance by the Assignor of the Assignor’s obligations hereunder, respectively, (A) have been duly authorized by all requisite corporate action, and (B) will not violate any order of any court or governmental agency or any agreement by which the Assignor is bound; (ii) the Assignor is the legal and beneficial owner of such Assignor’s portion of the Assigned Interest; and (iii) the Assignor has not previously assigned or conveyed any of its right, title and interest in such Assignor’s portion of the Assigned Interest.
 
(b) Investment Purpose. The Assignor is acquiring the Secured Note Conversion Unit Shares and Secured Note Conversion Unit Warrants, and, upon exercise of the Secured Note Conversion Unit Warrants, the Assignor will acquire the Secured Note Conversion Unit Warrant Shares (the Secured Note Conversion Unit Shares, Secured Note Conversion Unit Warrants, and Secured Note Conversion Unit Warrant Shares to be referred to herein, collectively, as the “Assignee Securities”), for its own account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities Act of 1933, as amended (the “Securities Act”); provided, however, that by making the representations herein, the Assignor reserves the right to dispose of the Assignee Securities at any time in accordance with or pursuant to an effective registration statement covering such Assignee Securities, or an available exemption under the Securities Act. The Assignor agrees not to sell, hypothecate or otherwise transfer the Assignee Securities unless such Assignee Securities are registered under the federal and applicable state securities laws or unless, in the opinion of counsel satisfactory to the Company, an exemption from such law is available.
 
(c) Residence of Assignor. The Assignor resides in the jurisdiction set forth in the Investor Profile attached hereto as Exhibit H.
 
(d) Accredited Investor Status. The Assignor meets the requirements of at least one of the suitability standards for an “Accredited Investor” as that term is defined in Rule 501(a)(3) of Regulation D as promulgated under the Securities Act, for the reason set forth on the Investor Certification attached hereto as Exhibit G, or is not a “U.S. Person” as that term is defined in Rule 902(k) of Regulation S as promulgated under the Securities Act.
 
(e) Accredited Investor Qualifications. The Assignor (i) if a natural person, represents that the Assignor has reached the age of 21 and has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Secured Note Conversion Units, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Secured Note Conversion Units, the execution and delivery of this Agreement has been duly authorized by all necessary action, this Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or (iii) if executing this Agreement in a representative or fiduciary capacity, represents that it has full power and authority to execute and deliver this Agreement in such capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation, or limited liability company or partnership, or other entity for whom the Assignor is executing this Agreement, and such individual, partnership, ward, trust, estate, corporation, or limited liability company or partnership, or other entity has full right and power to perform pursuant to this Agreement and make an investment in the Assignee, and represents that this Agreement constitutes a legal, valid and binding obligation of such entity. The execution and delivery of this Agreement will not violate or be in conflict with any order, judgment, injunction, agreement or controlling document to which the Assignee is a party or by which it is bound.
 
	 
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(f) Assignor Relationship with Brokers. The Assignor’s substantive relationship with a broker, if any, for the transactions contemplated hereby, or subagent thereof (collectively, “Brokers”), through which the Assignor may be acquiring the Secured Note Conversion Units predates such Broker’s contact with the Assignor regarding an investment in the Secured Note Conversion Units.
 
(g) Solicitation. The Assignor is unaware of, is in no way relying on, and did not become aware of the issuance of the Secured Note Conversion Units in exchange for the Notes through or as a result of, any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, in connection with the issuance of the Secured Note Conversion Units in exchange for the Notes, and is acquiring the Secured Note Conversion Units and did not become aware of the issuance of the Secured Note Conversion Units in exchange for the Notes through or as a result of any seminar or meeting to which the Assignor was invited by, or any solicitation of a subscription by, a person not previously known to the Assignor in connection with investments in securities generally.
 
(h) Brokerage Fees. Except as otherwise provided herein, the Assignor has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Agreement or the transaction contemplated hereby.
 
(i) Assignor’s Advisors. The Assignor and the Assignor’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, the “Advisors”), as the case may be, has such knowledge and experience in financial, tax, and business matters, and, in particular, investments in securities, so as to enable it to utilize the information made available to it in connection with the Secured Note Conversion Units to evaluate the merits and risks of an investment in the Secured Note Conversion Units and the Assignee and to make an informed investment decision with respect thereto.
 
(j) Assignor Liquidity. The Assignor has adequate means of providing for Assignor’s current financial needs and foreseeable contingencies and has no need for liquidity of its investment in the Secured Note Conversion Units for an indefinite period of time, and after acquiring the Secured Note Conversion Units the Assignor will be able to provide for any foreseeable current needs and possible personal contingencies. The Assignor must bear and acknowledges the substantial economic risks of the investment in the Secured Note Conversion Units including the risk of illiquidity and the risk of a complete loss of this investment.
 
(k) High Risk Investment. The Assignor is aware that an investment in the Assignee Securities involves a number of very significant risks and has carefully researched and reviewed and understands the risks of, and other considerations relating to, the acquisition of the Assignee Securities.
 
	 
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(l) Reliance on Exemptions. The Assignor understands that the Secured Note Conversion Units are being issued to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Assignee is relying in part upon the truth and accuracy of, and the Assignor’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Assignor set forth herein in order to determine the availability of such exemptions and the eligibility of the Assignor to acquire the Securities.
 
(m) Information. The Assignor and its Advisors have been furnished with all documents and materials relating to the business, finances and operations of the Assignee and its subsidiaries and information that the Assignor requested and deemed material to making an informed investment decision regarding Assignor’s acquisition of the Secured Note Conversion Units and the underlying securities. The Assignor and its Advisors have been afforded the opportunity to review such documents and materials, and the information contained therein. The Assignor and its Advisors have been afforded the opportunity to ask questions of the Assignee and its management. The Assignee understands that such discussions, as well as any written information provided by the Assignee, were intended to describe the aspects of the Assignee’s business and prospects which the Assignee believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Assignee makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Assignee. Some of such information may include projections as to the future performance of the Assignee and its subsidiaries, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Assignee’s control. Additionally, the Assignor understands and represents that he, she or it is acquiring the Secured Note Conversion Units notwithstanding the fact that the Assignee may disclose in the future certain material information the Assignor has not received, including the financial results of the Assignee for its current fiscal quarters. The Assignor has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Secured Note Conversion Units.
 
(n) No Other Representations or Information. In evaluating the suitability of an investment in the Secured Note Conversion Units and if applicable, the underlying securities, the Assignor has not relied upon any representation or information (oral or written) with respect to the Assignee, or otherwise, other than as stated in this Agreement and the Secured Note Conversion Units. No oral or written representations have been made, or oral or written information furnished, to the Assignor or its Advisors, if any, in connection with the acquisition of the Secured Note Conversion Units.
 
(o) No Governmental Review. The Assignor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Secured Note Conversion Units (or the other Assignee Securities), or the fairness or suitability of the investment in the Secured Note Conversion Units (or the other Assignee Securities), nor have such authorities passed upon or endorsed the merits of the issuance of the Secured Note Conversion Units (or the other Assignee Securities).
 
	 
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(p) Transfer or Resale. The Assignor understands that: (i) the Secured Note Conversion Units (including the underlying securities) have not been and may not be registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, or (B) the Assignor shall have delivered to the Assignee an opinion of counsel, in a generally acceptable form, to the effect that such securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration requirements; (ii) any sale of such securities made in reliance on Rule 144 under the Securities Act (or a successor rule thereto) (“Rule 144”) may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of such securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the Securities and Exchange Commission (“SEC”) thereunder; and (iii) except as set forth in the Unit Purchase Agreement, neither the Assignee nor the Company is under any obligation to register such securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. The Assignee reserves the right to place stop transfer instructions against the shares and certificates for the Secured Note Conversion Unit Shares and Secured Note Conversion Unit Warrants, and, upon exercise of the Secured Note Conversion Unit Warrants, the Secured Note Conversion Unit Warrant Shares, to the extent specifically set forth under this Agreement. There can be no assurance that there will be any market or resale for the Secured Note Conversion Unit Shares and Secured Note Conversion Unit Warrants, or, upon exercise of the Secured Note Conversion Unit Warrants, the Secured Note Conversion Unit Warrant Shares, nor can there be any assurance that the Secured Note Conversion Unit Shares and Secured Note Conversion Unit Warrants, or, upon exercise of the Secured Note Conversion Unit Warrants, the Secured Note Conversion Unit Warrant Shares, will be freely transferable at any time in the foreseeable future.
 
(q) Legends. The Assignor understands that the certificates or other instruments representing the Assignee Securities shall bear a restrictive legend in substantially the following form (and a stop transfer order may be placed against transfer of such stock certificates):
 
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.
 
 
 
	 
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The legend set forth above shall be removed and the Assignee, within three (3) business days, and Assignee shall issue a certificate without such legend to the holder of the Assignee Securities upon which it is stamped, if, unless otherwise required by state securities laws, (i) the Assignor or its broker make the necessary representations and warranties to the transfer agent for the Assignee’s common stock that it has complied with the prospectus delivery requirements in connection with a sale transaction, provided the Assignee Securities are registered under the Securities Act or (ii) in connection with a sale transaction, after such holder provides the Assignee with an opinion of counsel satisfactory to the Assignee, which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale, assignment or transfer of the Secured Note Conversion Unit Shares and Secured Note Conversion Unit Warrants and, upon exercise of the Secured Note Conversion Unit Warrants, the Secured Note Conversion Unit Warrant Shares, may be made without registration under the Securities Act.
 
(r) Organization and Standing of Assignor. If the Assignor is an entity, it is a corporation, partnership or other entity duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization. If the Assignor is an individual, he or she is at least the greater of (i) eighteen (18) years of age or (ii) the age of legal majority in his or her jurisdiction of residence.
 
(s) Authorization, Enforcement. The Assignor has the requisite power and authority to enter into and perform under this Agreement, and to acquire the Secured Note Conversion Units being issued to it hereunder. The execution, delivery and performance of this Agreement by the Assignor and the consummation by the Assignor of the transactions contemplated hereby have been duly authorized by all necessary corporate or partnership action, and no further consent or authorization of the Assignor or the Assignor’s board of directors, stockholders, partners, members, as the case may be, is required. This Agreement have been duly authorized, executed and delivered by such the Assignor and upon execution of this Agreement by the other parties hereto and thereto, constitute, or shall constitute when executed and delivered, a valid and binding obligation of the Assignor enforceable against the Assignor in accordance with the terms hereof and thereof, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.
 
(t) No Conflicts. The execution, delivery and performance of this Agreement, and the consummation by the Assignor of the transactions contemplated hereby, or relating hereto, do not and will not (i) if the Assignor is not an individual, result in a violation of the Assignor’s charter documents or bylaws or other organizational documents or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument or obligation to which the Assignor is a party or by which its properties or assets are bound, or result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to the Assignor or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on the Assignor). The Assignor is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or to acquire the Secured Note Conversion Units in accordance with the terms hereof, provided that for purposes of the representation made in this sentence, the Assignor is assuming and relying upon the accuracy of the relevant representations and agreements of the Assignee herein.
 
	 
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(u) Receipt of Documents. The Assignor, its counsel and/or its Advisors have received and read in their entirety: (i) this Agreement and each representation, warranty and covenant set forth herein; and (ii) all due diligence and other information necessary to verify the accuracy and completeness of such representations, warranties and covenants; the Assignor has received answers to all questions the Assignor submitted to the Assignee regarding an investment in the Assignee, and the Assignor has relied on the information contained therein and has not been furnished any other documents, literature, memorandum or prospectus.
 
(v) Confidential Information. The Assignor acknowledges and agrees that certain of the information received by it in connection with the transactions contemplated by this Agreement is of a confidential nature, and that such information has been furnished to the Assignor for the sole purpose of enabling the Assignor to consider and evaluate an investment in the Secured Note Conversion Units. The Assignor agrees that it will treat such information in a confidential manner, will not use such information for any purpose other than evaluating an investment in the Secured Note Conversion Units, and will not, directly or indirectly, disclose or permit the Assignor’s agents, representatives or affiliates to disclose any of such information without the Assignee’s prior written consent. The Assignor shall make its agents, affiliates and representatives aware of the confidential nature of the information contained herein and the terms of this section including the Assignor’s agreement to not disclose such information, and to be responsible for any disclosure or other improper use of such information by such agents, affiliates or representatives. Likewise, without the Assignee’s prior written consent, the Assignor will not, directly or indirectly, make any statements, public announcements or other release or provision of information in any form to any trade publication, to the press or to any other person or entity whose primary business is or includes the publication or dissemination of information related to the transactions contemplated by this Agreement.
 
(w) No Legal Advice from the Assignee. The Assignor acknowledges that it had the opportunity to review this Agreement and the transactions contemplated by this Agreement with its own legal counsel and investment and tax Advisors. The Assignor is relying solely on such Advisors and not on any statements or representations of the Assignee or any of its employees, representatives or agents for legal, tax, economic and related considerations or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.
 
(x) Reliance. Any information which the Assignor has heretofore furnished or is furnishing herewith to Assignee or any Broker is complete and accurate and may be relied upon by the Assignee and any Broker in determining the availability of an exemption from registration under U.S. federal and state securities laws in connection with the offering of securities as described in this Agreement. The Assignor further represents and warrants that it will notify and supply corrective information to the Assignee immediately upon the occurrence of any change therein occurring prior to the Assignee’s issuance of the Secured Note Conversion Units. Within five (5) days after receipt of a request from the Assignee or any Broker, the Assignor will provide such information and deliver such documents as may reasonably be necessary to comply with any and all laws and ordinances to which the Assignee or any Broker is subject.
 
	 
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(y) Anti-Money Laundering; OFAC. 
 
[The Assignor should check the Office of Foreign Assets Control (“OFAC”) website at http://www.treas.gov/ofac before making the following representations.] The Assignor represents that the amounts invested by it in the Assignee in the Secured Note Conversion Units were not and are not directly or indirectly derived from activities that contravene U.S. federal or state or international laws and regulations, including anti-money laundering laws and regulations. U.S. federal regulations and Executive Orders administered by OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at http://www.treas.gov/ofac. In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing with individuals or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists.
 
To the best of the Assignor’s knowledge, none of: (1) the Assignor; (2) any person controlling or controlled by the Assignor; (3) if the Assignor is a privately-held entity, any person having a beneficial interest in the Assignor; or (4) any person for whom the Assignor is acting as agent or nominee in connection with this investment is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the Assignee may not accept any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding paragraph. The Assignor agrees to promptly notify the Assignee should the Assignor become aware of any change in the information set forth in these representations. The Assignor understands and acknowledges that, by law, the Assignee may be obligated to “freeze the account” of the Assignor, either by prohibiting additional subscriptions from the Assignor, declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations, and a Broker may also be required to report such action and to disclose the Assignor’s identity to OFAC. The Assignor further acknowledges that the Assignee may, by written notice to the Assignor, suspend the redemption rights, if any, of the Assignor if the Assignee reasonably deems it necessary to do so to comply with anti-money laundering regulations applicable to the Assignee or any Broker or any of the Assignee’s other service providers. These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs;
 
To the best of the Assignor’s knowledge, none of: (1) the Assignor; (2) any person controlling or controlled by the Assignor; (3) if the Assignor is a privately-held entity, any person having a beneficial interest in the Assignor; or (4) any person for whom the Assignor is acting as agent or nominee in connection with this investment is a senior foreign political figure, or any immediate family member or close associate of a senior foreign political figure, as such terms are defined in the footnotes below; and
 
	 
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If the Assignor is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Assignor receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Assignor represents and warrants to the Assignee that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in any country and that is not a regulated affiliate.
 
6. Assignee’s Representations. Assignee represents, warrants, and covenants to the Assignors and the Company that:
 
(a) General. The execution by Assignee of this Agreement and the performance by Assignee of Assignee’s obligations hereunder, respectively, (i) have been duly authorized by all requisite corporate action, and (ii) will not violate any order of any court or governmental agency or any agreement by which Assignee is bound.
 
(b) Investment Purpose. The Assignee is acquiring the Notes and, upon conversion of the Notes, will acquire the underlying securities (collectively, the “Company Securities”), for its own account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities Act; provided, however, that by making the representations herein, the Assignee reserves the right to dispose of the Company Securities at any time in accordance with or pursuant to an effective registration statement covering such Company Securities, or an available exemption under the Securities Act. The Assignee agrees not to sell, hypothecate or otherwise transfer the Company Securities unless such Company Securities are registered under the federal and applicable state securities laws or unless, in the opinion of counsel satisfactory to the Company, an exemption from such law is available.
 
(c) Residence of Assignee. The Assignee resides in the jurisdiction set forth in the Investor Profile attached hereto as Exhibit H.
 
(d) Accredited Investor Status. The Assignee meets the requirements of at least one of the suitability standards for an “Accredited Investor” as that term is defined in Rule 501(a)(3) of Regulation D as promulgated under the Securities Act, for the reason set forth on the Investor Certification attached hereto as Exhibit G, or is not a “U.S. Person” as that term is defined in Rule 902(k) of Regulation S as promulgated under the Securities Act.
 
	 
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(e) Accredited Investor Qualifications. The Assignee (i) if a natural person, represents that the Assignee has reached the age of 21 and has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose of acquiring the Notes, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Notes, the execution and delivery of this Agreement has been duly authorized by all necessary action, this Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or (iii) if executing this Agreement in a representative or fiduciary capacity, represents that it has full power and authority to execute and deliver this Agreement in such capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation, or limited liability company or partnership, or other entity for whom the Assignee is executing this Agreement, and such individual, partnership, ward, trust, estate, corporation, or limited liability company or partnership, or other entity has full right and power to perform pursuant to this Agreement and make an investment in the Company, and represents that this Agreement constitutes a legal, valid and binding obligation of such entity. The execution and delivery of this Agreement will not violate or be in conflict with any order, judgment, injunction, agreement or controlling document to which the Assignee is a party or by which it is bound.
 
(f) Assignee Relationship with Brokers. The Assignee’s substantive relationship with a Broker, if any, through which the Assignee may be acquiring the Notes predates such Broker’s contact with the Assignee regarding an investment in the Notes.
 
(g) Solicitation. The Assignee is unaware of, is in no way relying on, and did not become aware of the assignment and transfer of the Notes through or as a result of, any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, in connection with the assignment and transfer of the Notes and is acquiring the Notes, and did not become aware of the assignment and transfer of the Notes, through or as a result of any seminar or meeting to which the Assignee was invited by, or any solicitation of a subscription by, a person not previously known to the Assignee in connection with investments in securities generally.
 
(h) Brokerage Fees. Except as otherwise provided herein, the Assignee has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees or the like relating to this Agreement or the transaction contemplated hereby.
 
	 
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(i) Assignee’s Advisors. The Assignee and the Assignee’s Advisors, as the case may be, has such knowledge and experience in financial, tax, and business matters, and, in particular, investments in securities, so as to enable it to utilize the information made available to it in connection with the Notes to evaluate the merits and risks of an investment in the Notes and the Company and to make an informed investment decision with respect thereto.
 
(j) Assignee Liquidity. The Assignee has adequate means of providing for Assignee’s current financial needs and foreseeable contingencies and has no need for liquidity of its investment in the Notes for an indefinite period of time, and after acquiring the Notes the Assignee will be able to provide for any foreseeable current needs and possible personal contingencies. The Assignee must bear and acknowledges the substantial economic risks of the investment in the Notes including the risk of illiquidity and the risk of a complete loss of this investment.
 
(k) High Risk Investment. The Assignee is aware that an investment in the Notes, and the other Company Securities, involves a number of very significant risks and has carefully researched and reviewed and understands the risks of, and other considerations relating to, the acquisition of the Notes, and upon conversion of the Notes, the other Company Securities.
 
(l) Reliance on Exemptions. The Assignee understands that the Notes are being assigned and transferred to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company and Assignors are relying in part upon the truth and accuracy of, and the Assignee’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Assignee set forth herein in order to determine the availability of such exemptions and the eligibility of the Assignee to acquire the Company Securities.
 
(m) Information. The Assignee and its Advisors have been furnished with all documents and materials relating to the business, finances and operations of the Company and its subsidiaries and information that the Assignee requested and deemed material to making an informed investment decision regarding Assignee’s purchase of the Notes and the underlying securities. The Assignee and its Advisors have been afforded the opportunity to review such documents and materials, as well as the filings the Company makes with the SEC (hard copies of which were made available to the Assignee upon request to the Company or were otherwise accessible to the Assignee via the SEC’s EDGAR system), and the information contained therein. The Assignee and its Advisors have been afforded the opportunity to ask questions of the Company and its management. The Assignee understands that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s business and prospects which the Company believes to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement, the Company makes no representation or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information may include projections as to the future performance of the Company and its subsidiaries, which projections may not be realized, may be based on assumptions which may not be correct and may be subject to numerous factors beyond the Company’s and its subsidiaries’ control. Additionally, the Assignee understands and represents that it is acquiring the Notes notwithstanding the fact that the Company and its subsidiaries may disclose in the future certain material information the Assignee has not received, including the financial results of the Company and its subsidiaries for their current fiscal quarters. The Assignee has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Notes.
 
	 
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(n) No Other Representations or Information. In evaluating the suitability of an investment in the Notes and the other Company Securities, the Assignee has not relied upon any representation or information (oral or written) with respect to the Company or its subsidiaries, or otherwise, other than as stated in this Agreement and the Notes. No oral or written representations have been made, or oral or written information furnished, to the Assignee or its Advisors, if any, in connection with the acquisition of the Notes.
 
(o) No Governmental Review. The Assignee understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Notes or other Company Securities, or the fairness or suitability of the investment in the Notes or the other Company Securities, nor have such authorities passed upon or endorsed the merits of the sale of the Notes or other Company Securities.
 
(p) Transfer or Resale. The Assignee understands that: (i) the Notes and other Company Securities have not been and may not be registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, or (B) the Assignee shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that such securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration requirements; (ii) any sale of such securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of such securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC thereunder; and (iii) the Company is not, and except as otherwise set forth in this Agreement or the Transaction Documents, no other person is, under any obligation to register such securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. The Company reserves the right to place stop transfer instructions against the shares and certificates for the Notes and other Company Securities to the extent specifically set forth under this Agreement. There can be no assurance that there will be any market or resale for the Notes or other Company Securities, nor can there be any assurance that the Notes or other Company Securities will be freely transferable at any time in the foreseeable future.
 
	 
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(q) Legends. The Assignee understands that the certificates or other instruments representing the Notes and other Company Securities shall bear a restrictive legend in substantially the following form (and a stop transfer order may be placed against transfer of such stock certificates):
 
 
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE â€œSECURITIES ACTâ€�). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.
 
The legend set forth above shall be removed and the Company, within three (3) business days, shall issue a certificate without such legend to the holder of the Notes and/or other Company Securities upon which it is stamped, if, unless otherwise required by state securities laws, (i) the Assignee or its broker make the necessary representations and warranties to the transfer agent for the Company’s common stock that it has complied with the prospectus delivery requirements in connection with a sale transaction, provided the Notes or other Company Securities, as applicable, are registered under the Securities Act or (ii) in connection with a sale transaction, after such holder provides the Company with an opinion of counsel satisfactory to the Company, which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale, assignment or transfer of the Notes or other Company Securities, as applicable, may be made without registration under the Securities Act.
 
(r) Organization and Standing of Assignee. If the Assignee is an entity, it is a corporation, partnership or other entity duly incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization. If the Assignee is an individual, he or she is at least the greater of (a) eighteen (18) years of age or (b) the age of legal majority in his or her jurisdiction of residence.
 
	 
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(s) Authorization, Enforcement. The Assignee has the requisite power and authority to enter into and perform under this Agreement and Transaction Documents, and to acquire the Notes being assigned and transferred to it hereunder. The execution, delivery and performance of this Agreement by the Assignee and the consummation by the Assignee of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or partnership action, and no further consent or authorization of the Assignee or the Assignee’s board of directors, stockholders, partners, members, as the case may be, is required. This Agreement has been duly authorized, executed and delivered by such the Assignee and upon execution of this Agreement by the other parties hereto and thereto, constitute, or shall constitute when executed and delivered, a valid and binding obligation of the Assignee enforceable against the Assignee in accordance with the terms hereof and thereof, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.
 
(t) No Conflicts. The execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation by the Assignee of the transactions contemplated hereby and thereby or relating hereto do not and will not (i) if the Assignee is not an individual, result in a violation of the Assignee’s charter documents or bylaws or other organizational documents or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement, indenture or instrument or obligation to which the Assignee is a party or by which its properties or assets are bound, or result in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to the Assignee or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on the Assignee). The Assignee is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or to acquire the Notes in accordance with the terms hereof, provided that for purposes of the representation made in this sentence, the Assignee is assuming and relying upon the accuracy of the relevant representations and agreements of the Company herein.
 
(u) Receipt of Documents. The Assignee, its counsel and/or its Advisors have received and read in their entirety: (i) this Agreement and each representation, warranty and covenant set forth herein; and (ii) all due diligence and other information necessary to verify the accuracy and completeness of such representations, warranties and covenants; the Assignee has received answers to all questions the Assignee submitted to the Company regarding an investment in the Company; and the Assignee has relied on the information contained therein and has not been furnished any other documents, literature, memorandum or prospectus.
 
	 
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(v) Status as a Former Shell Company. The Assignee understands that the Company is a former “shell company” as such term is defined in Rule 12b-2 under the Exchange Act. The Company ceased to be a “shell company” on January 28, 2014, and filed Form 10 type information under cover of Form 8-K on February 3, 2014. Pursuant to Rule 144(i), securities issued by a current or former shell company (such as the Securities) that otherwise meet the holding period and other requirements of Rule 144 nevertheless cannot be sold in reliance on Rule 144 until one year after such company (a) is no longer a shell company; and (b) has filed current “Form 10 information” (as defined in Rule 144(i)) with the SEC reflecting that it is no longer a shell company, and provided that at the time of a proposed sale pursuant to Rule 144, such company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all reports and other materials required to be filed by section 13 or 15(d) of the Exchange Act, as applicable, during the preceding 12 months (or for such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports. As a result, the restrictive legends on certificates for the Securities cannot be removed except in connection with an actual sale meeting the foregoing requirements or pursuant to an effective registration statement.
 
(w) Trading Activities. The Assignee’s trading activities with respect to the Company’s common stock shall be in compliance with all applicable federal and state securities laws, rules and regulations and the rules and regulations of the principal market on which the Company’s common stock is listed or traded. Neither the Assignee nor its affiliates has an open short position in the Company’s common stock and, except as set forth below, the Assignee shall not, and shall not cause any of its affiliates under common control with the Assignee, to engage in any short sale as defined in any applicable SEC or Financial Industry Regulatory Authority (FINRA) rules on any hedging transactions with respect to the Company’s common stock until the earlier to occur of (i) the third anniversary of the date hereof and (ii) the date the Assignee no longer owns the Company’s common stock. Without limiting the foregoing, the Assignee agrees not to engage in any naked short transactions in excess of the amount of shares owned (or an offsetting long position) by the Assignee.
 
(x) Regulation FD. The Assignee acknowledges and agrees that certain of the information received by it in connection with the transactions contemplated by this Agreement is of a confidential nature and may be regarded as material non-public information under Regulation FD promulgated by the SEC and that such information has been furnished to the Assignee for the sole purpose of enabling the Assignee to consider and evaluate an investment in the Notes. The Assignee agrees that it will treat such information in a confidential manner, will not use such information for any purpose other than evaluating an investment in the Notes, will not, directly or indirectly, trade or permit the Assignee’s agents, representatives or affiliates to trade in any securities of the Company while in possession of such information and will not, directly or indirectly, disclose or permit the Assignee’s agents, representatives or affiliates to disclose any of such information without the Company’s prior written consent. The Assignee shall make its agents, affiliates and representatives aware of the confidential nature of the information contained herein and the terms of this section including the Assignee’s agreement to not disclose such information, to not trade in the Company’s securities while in the possession of such information and to be responsible for any disclosure or other improper use of such information by such agents, affiliates or representatives. Likewise, without the Company’s prior written consent, the Assignee will not, directly or indirectly, make any statements, public announcements or other release or provision of information in any form to any trade publication, to the press or to any other person or entity whose primary business is or includes the publication or dissemination of information related to the transactions contemplated by this Agreement.
 
	 
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(y) No Legal Advice from the Company. The Assignee acknowledges that it had the opportunity to review this Agreement and the transactions contemplated by this Agreement with its own legal counsel and investment and tax Advisors. The Assignee is relying solely on such Advisors and not on any statements or representations of the Company or any of its employees, representatives or agents for legal, tax, economic and related considerations or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.
 
(z) Reliance. Any information which the Assignee has heretofore furnished or is furnishing herewith to the Company or any Broker is complete and accurate and may be relied upon by the Company and any Broker in determining the availability of an exemption from registration under U.S. federal and state securities laws in connection with the offering of securities as described in this Agreement and the related summary term sheet and transmittal letter, if any. The Assignee further represents and warrants that it will notify and supply corrective information to the Company immediately upon the occurrence of any change therein occurring prior to the Company’s transfer of the Notes. Within five (5) days after receipt of a request from the Company or any Broker, the Assignee will provide such information and deliver such documents as may reasonably be necessary to comply with any and all laws and ordinances to which the Company or any Broker is subject.
 
(aa) Anti-Money Laundering; OFAC. 
 
[The Assignee should check the OFAC website at http://www.treas.gov/ofac before making the following representations.] The Assignee represents that the amounts invested by it in the Company in the Notes were not and are not directly or indirectly derived from activities that contravene U.S. federal or state or international laws and regulations, including anti-money laundering laws and regulations. U.S. federal regulations and Executive Orders administered by OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at http://www.treas.gov/ofac. In addition, the OFAC Programs prohibit dealing with individuals1 or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists;
 
To the best of the Assignee’s knowledge, none of: (1) the Assignee; (2) any person controlling or controlled by the Assignee; (3) if the Assignee is a privately-held entity, any person having a beneficial interest in the Assignee; or (4) any person for whom the Assignee is acting as agent or nominee in connection with this investment is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the Company may not accept any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding paragraph. The Assignee agrees to promptly notify the Company should the Assignee become aware of any change in the information set forth in these representations. The Assignee understands and acknowledges that, by law, the Company may be obligated to “freeze the account” of the Assignee, either by prohibiting additional subscriptions from the Assignee, declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations, and a Broker may also be required to report such action and to disclose the Assignee’s identity to OFAC. The Assignee further acknowledges that the Company may, by written notice to the Assignee, suspend the redemption rights, if any, of the Assignee if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations applicable to the Company or any Broker or any of the Company’s other service providers. These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs;
________________ 
	1	These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs.

 
	 
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To the best of the Assignee’s knowledge, none of: (1) the Assignee; (2) any person controlling or controlled by the Assignee; (3) if the Assignee is a privately-held entity, any person having a beneficial interest in the Assignee; or (4) any person for whom the Assignee is acting as agent or nominee in connection with this investment is a senior foreign political figure2, or any immediate family3 member or close associate4 of a senior foreign political figure, as such terms are defined in the footnotes below; and 
 
If the Assignee is affiliated with a Foreign Bank, or if the Assignee receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Assignee represents and warrants to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in any country and that is not a regulated affiliate.
 
7. Mutual Release.
 
(a) Release by the Company and the Company Parties. The Company and the Company Parties (as defined below) hereby fully and forever waive, release, acquit and discharge the Assignors, together with all of their officers, directors, shareholders, principals, managers, members, partners, employees, agents, servants, attorneys and legal representatives (hereinafter collectively referred to as the “Assignor Parties”), from any and all actions, suits, arbitrations, proceedings, controversies, disputes, causes of action, claims, rights, obligations, demands, agreements, covenants, promises, responsibilities, liabilities, indemnifications, contributions, damages, costs, expenses and fees, of whatever kind and nature, including, but not limited to, any claims or causes of action, whether contractual, extra-contractual, tort or otherwise, which the Company or any of the Company Parties may now have, ever had, or will ever have against the Assignors or the Assignor Parties, whether known or unknown, matured or unmatured, foreseeable or unforeseeable, fixed, contingent, class, individual, derivative or otherwise, arising in connection with of the Notes or other Transaction Documents (the “Company Released Claims”). The Company and the Company Parties understand that they may later discover facts relating to the Company Released Claims in addition to or different from the facts now known or believed by them to be true, and accept and assume such risk. Notwithstanding anything to the contrary herein, it is further understood and agreed by the parties hereto that this release shall not apply to acts of fraud or gross negligence by the Assignors or the Assignor Parties, or release the Assignors or the Assignor Parties from any claims arising out of or related to this Agreement.
__________________
	2	A “senior foreign political figure” is defined as a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a “senior foreign political figure” includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure.
	 
	 

	3	“Immediate family” of a senior foreign political figure typically includes the figure’s parents, siblings, spouse, children and in-laws.
	 
	 

	4	A “close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the senior foreign political figure.

 
	 
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(b) Release by Assignors and the Assignor Parties. The Assignors and the Assignor Parties do hereby fully and forever waive, release, acquit and discharge the Company, together with all of its past and present predecessors-in-interest, successors-in-interest, assigns, and affiliates, and all of their officers, directors, shareholders, principals, managers, members, partners, employees, agents, servants, attorneys and legal representatives (hereinafter collectively referred to as the “Company Parties”), from any and all actions, suits, arbitrations, proceedings, controversies, disputes, causes of action, claims, rights, obligations, demands, agreements, covenants, promises, responsibilities, liabilities, indemnifications, contributions, damages, costs, expenses and fees, of whatever kind and nature, whether contractual, extra-contractual, tort or otherwise, which the Assignors or any of the Assignor Parties may now have, ever had, or will ever have against the Company or the Company Parties, whether known or unknown, matured or unmatured, foreseeable or unforeseeable, fixed, contingent, class, individual, derivative or otherwise, arising in connection with of the Notes or other Transaction Documents (the “Assignor Released Claims”). The Assignors and the Assignor Parties understand that they may later discover facts relating to the Assignor Released Claims in addition to or different from the facts now known or believed by them to be true, and accept and assume such risk. Notwithstanding anything to the contrary herein, it is further understood and agreed by the parties hereto that this release shall not apply to acts of fraud or gross negligence by the Company or the Company Parties or release the Company or the Company Parties from any claims arising out of or related to this Settlement Agreement.
 
8. Survival of Transaction Documents. Except as otherwise specifically set forth herein, the Transaction Documents shall remain in full force and effect, and the terms and conditions contained therein are hereby ratified and confirmed by the Assignors, the Assignee and the Company; provided, however, that the term “Holder,” as defined in the Note, shall thereafter mean the Assignee.
 
9. Further Assurances. The Assignors, the Assignee and the Company shall execute, acknowledge, file, and record such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to carry out the intent and purposes of this Agreement. 
 
10. Binding on Heirs and Successors; Further Transfers. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto.
 
11. Entire Agreement; Modification, Waiver. This Agreement contains the entire agreement of the parties relating to the subject matter hereof. Any oral representations, supplements or modifications concerning this Agreement shall be of no force or effect unless contained in a subsequent written modification signed by the party to be charged. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.
 
	 
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12. Execution; Counterparts. This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed signature page hereof by facsimile transmission or by electronic transmission (such as PDF or other similar means) shall be effective as delivery of a manually executed counterpart hereof.
 
13. Parties in Interest. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties to it and their respective successors and assigns.
 
14. Invalidity. In the event that any condition, covenant, promise, or other provision herein contained is held to be invalid or void by any court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall in no way affect any other covenant, promise, condition, or other provision herein contained. If such condition, covenant, promise, or other provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law.
 
15. Exhibits. All Exhibits referred to herein are hereby attached hereto and incorporated herein by this reference with the same force and effect as if fully set forth herein.
 
16. Notices. All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and five (5) days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below. Assignor or Assignee may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 15.
 
	If to Assignors:
	To the Assignor’s address set forth on Exhibit B hereto.

	 
	 

	If to Assignee:
	CUR Holdings, Inc.

	 
	2 Tower Place
Albany, NY 12203
Attn: William F. Duker, President 

	 
	Email: bill@sybaris2015.com

	 
	 

	If to Company:
	CÜR Media, Inc.

	 
	__________________

	 
	__________________

	 
	Attn: Thomas Brophy, Chief Executive Officer

	 
	Email: tbrophy@curmusic.com

 
	 
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	If to the Assignee or the Company, with a copy to:

		 

		CKR Law LLP
1330 Avenue of the Americas, 14th Floor
New York, NY 10019
Attn: Eric C. Mendelson
Facsimile: (212) 259-8200
Telephone: (212) 259-7300
Email: emendelson@ckrlaw.com 

   17. Assignment. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by any party without the prior written consent of the other parties.
 
18. Section and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not be deemed to be a part of this Agreement or to affect the meaning or interpretation of this Agreement.
 
19. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the City of New York, State of New York, without giving effect to the conflicts of law provisions thereof.
 
20. Consent to Jurisdiction. Each of the parties hereto: (i) consents and submits to the jurisdiction of the Courts of the State of New York and of the Courts of the United States for a judicial district within the territorial limits of the State of New York for all purposes of this Agreement, including, without limitation, any action or proceeding instituted for the enforcement of any right, remedy, obligation and liability arising under or by reason of this Agreement; and (ii) consents and submits to the venue of such action or proceeding in the City and County of New York (or such judicial district of a Court of the United States as shall include the same).
 
21. Omnibus Signature Page. This Agreement is intended to be read and construed in conjunction with the Voting Agreement, Secured Note Conversion Unit Warrant and Registration Rights Agreement. Accordingly, pursuant to the terms and conditions of this Agreement and such related agreements, it is hereby agreed that the execution by the Assignor of this Agreement, in the place set forth on the Signature Page below, shall constitute agreement to be bound by the terms and conditions hereof and the terms and conditions of the Voting Agreement, Secured Note Conversion Unit Warrant and Registration Rights Agreement, with the same effect as if such separate but related agreement were separately signed.
 
[signature page follows]
 
	 
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IN WITNESS WHEREOF, the parties have executed this Agreement as set forth below.
 
 
	 	ASSIGNEE:
CUR HOLDINGS, INC.
	
	 	 	 	 
	 
	By:		
	 
	Name: 
	William F. Duker 
	 
	 	Title:	President 
	 
	 	 	 	 
	 
	 
	 
	 

	 
	COMPANY:
 
CÜR MEDIA, INC.
	 

	 
	 
	 
	 

	 
	By: 
	 
	 

	 
	Name:
	Thomas Brophy 
	 

	 
	Title: 
	Chief Executive Officer 
	 

 
	ASSIGNOR (individual)	 	 	ASSIGNOR (entity)	 
	 
	 
	 
	 
	 

		 	 		 
	Signature	 	 	Name of Entity	 
		 	 		 
	 
	 
	 
	 
	 

	Print Name
	 
	 
	Signature of Authorized Person
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Print Name: _____________________
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Title: ______________________
	 

 
 
Signature Page to Assignment and Transfer Agreement
 
 
 
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