Document:

Unassociated Document

 

SECURITY AGREEMENT

 

1.           Identification.

 

This Security Agreement (the “Agreement”), dated as of February 3, 2012, is entered into by and between IZEA, INC., a Nevada corporation ("Holdings") and IZEA Innovations, Inc., a Nevada corporation (Holdings and Izea, collectively, the “Company”), with its primary offices located at 150 N. Orange Avenue, Suite 412, Orlando, Fl.32801, and Barry Honig and Michael Brauser (collectively, the “Holder”).

 

2.           Recitals.

 

2.1           At or about the date hereof, the Holder is making a bridge loan (the “Loan”) to theCompany. The Holder and the Company acknowledge that it is beneficial to Company that the Loan is  made.

 

2.2           The Loan will be evidenced by a senior secured promissory note (the “Note”) issued by Company on or about the date of this Agreement.  The Note is in the principal amount of $550,000 and were or will be executed by Company as “Maker” or “Company” for the benefit of the Holder as the“Holder” or “Payee” thereof.

 

2.3           In consideration of the Loan made and to be made by Holder to Company and for other good and valuable consideration, and as security for the performance by Company of its obligations under the Note, and as security for the repayment of the Loan and all other sums due from Company to Holder (collectively, the “Obligations”), Company, for good and valuable consideration, receipt of which is acknowledged, has agreed to grant to the Holder a security interestin the Collateral (as such term is hereinafter defined), on the terms and conditions hereinafter set forth.  Obligations include all future advances and loans by Holder to Company that may be made pursuant to the Note or any other agreements.

 

2.4           The following defined terms which are defined in the Uniform Commercial Code in effect in the State of New York on the date hereof are used herein as so defined:  Accounts, Chattel Paper, Documents, General Intangibles, Instruments, Inventory and Proceeds.  Other capitalized terms employed herein and not otherwise defined shall have the meanings attributed to them in the Note.

 

3.           Grant of General Security Interest in Collateral.

 

3.1           As security for the Obligations of Company, Company hereby grants the Holder, a security interest in the Collateral.

 

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

 

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

 

 

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

 

(ii)           Goods:  All now owned and hereafter acquired right, title and interest of Company in, to and in respect of goods, including, but not limited to all Inventory, wherever located, whether now owned or hereafter acquired, of whatever kind, nature or description, including all raw materials, work-in-process, finished goods, and materials to be used or consumed in Company’s business and all names or marks affixed to or to be affixed thereto for purposes of selling same by the seller, manufacturer, lessor or licensor thereof and all Inventory which may be returned to Company by its customers or repossessed by Company and all of Company’s right, title and interest in and to the foregoing (including all of Company’s rights as a seller of goods);

 

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

 

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

 

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

 

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

 

4.           Perfection of Security Interest.

 

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

 

 

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

 

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

 

5.           Distribution.

 

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

 

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

 

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

 

 

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6.           Further Action By Company; Covenants and Warranties.

 

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

 

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

 

6.3           Company will, at all reasonable times during regular business hours and upon reasonable notice, allow Holderor itsrepresentatives free and complete access to the Collateral and all of Company’s records that in any way relate to the Collateral, for such inspection and examination as Holder reasonably deems necessary.

 

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

 

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

 

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

 

 

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6.7           In order to protect the Collateral and Holder’s interest therein, Holder may, at Holder’s option, and without any obligation to do so, pay, perform and discharge any and all amounts, costs, expenses and liabilities herein agreed to be paid or performed by Company upon Company’s failure to do so.  All amounts expended by Holder in so doing shall become part of the Obligations secured hereby, and shall be immediately due and payable by Company to Holder upon demand and shall bear interest at the lesser of 16% per annum or the highest legal amount allowed from the dates of such expenditures until paid.

 

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

 

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

 

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

 

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

           

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

 

7.           Power of Attorney.

 

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

 

 

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8.           Performance By The Holder.

 

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

 

9.           Event of Default.

 

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

 

10.           Disposition of Collateral.

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

 

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12.           Miscellaneous.

 

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

 

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

 

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

 

	 	
To the Company: 

	
IZEA, Inc.

150 North Orange Avenue

Suite 412

Orlando, Florida 32801

Attn: Ted Murphy, CEO

T:321.332.6830

F: 407-264-8489

 

	 	
To Holder: 

	
4400 Biscayne Boulevard

Miami, FL 33137

 

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

 

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

 

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

 

  

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

 

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

 

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

 

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

 

14.           Holder Powers.

 

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

 

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

 

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

  

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

 

 

 

___________________________________________

	
 

 

___________________________________________

 

 

___________________________________________

 

 

	 
HOLDER:

	 
	 	 
	 
 
/s/ Barry Honig

	 
	 
Barry Honig

	 
	 	 
	 
/s/ Michael Brauser

	 
	 
Michael Brauser

	 
	 	 
	 
COMPANY:

	 
	 	 
	 
/s/ Edward Murphy

	 
	
IZEA, Inc.

By: Edward Murphy

Title: Chief Executive Officer

	 
	 	 
	 
 
/s/ Edward Murphy

	 
	 
 
 
IZEA Innovations, Inc. 
By: Edward Murphy

Title: Chief Executive Officer

	 
	 	 

 

  

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Schedule 6.1

 

Security Interests

 

None.

 

 

11DD-12.31.2011-EX10.2

Exhibit 10.2

SUPPLEMENTAL RETIREMENT INCOME
PLAN

Originally Adopted - August 21, 1978

Last Amended - December 18, 1996

E. I. duPont de Nemours and Company

SUPPLEMENTAL  RETIREMENT INCOME PLAN

I.     PURPOSE

The purpose of this Plan is to supplement an employee's pension payable under the Company's Pension and Retirement Plan to provide Monthly Retirement Income which represents an appropriate percentage of Average Total Monthly Pay. Supplemental retirement income generally will be provided under the Plan to those eligible employees for whom awards under the Variable Compensation Plan, the Incentive Compensation Plan or the former Dividend Unit Plan of the Company are a significant part of Average Total Monthly Pay.

II.     ELIGIBILITY

An employee whose effective date of retirement is after August 1, 1977 will participate in this Plan

		
	1.
	to  the  extent  of  the  benefits provided herein  if  he  is  eligible for  an unreduced monthly pension payable under Section IV (the Normal, Incapability, Early or Optional Retirement provisions) of the Company's Pension and Retirement Plan; or

		
	2.
	to  the  extent  deemed  appropriate  by  the  Compensation and  Benefits Committee or its delegate if he is eligible for a reduced monthly pension payable under Section IV (the Early or Optional Retirement provisions) of the Company's Pension and Retirement Plan.

III.     AMOUNT OF SUPPLEMENTAL RETIREMENT INCOME

		
	A. 
	The  amount  of  monthly  supplemental  retirement  income  payable  to  an employee will be the excess, if any, of (1) the employee's Monthly Retirement Income, as determined under paragraph B of this Section, over (2) the employee's monthly pension under the Company's Pension and Retirement Plan, as determined under paragraph C of this Section.

		
	B. 
	The amount of an employee's Monthly Retirement Income will be Average Total Monthly Pay multiplied by the applicable percentage factor from the following table, minus 50% of Primary Social Security Benefit.

2

YEARS OF SERVICE

	
							
	Average Total Monthly Pay
($thousands)
	15
	20
	25
	30
	35
	40 & Over

	$15 & Under
	20.80%
	27.60%
	34.40%
	41.20%
	48.00%
	54.80%

	20
	19.50%
	26.30%
	33.10%
	39.90%
	46.70%
	53.50%

	30
	19.20%
	25.90%
	32.50%
	39.10%
	45.70%
	52.30%

	40
	19.10%
	25.50%
	32.00%
	38.50%
	44.90%
	51.40%

	50
	19.00%
	25.40%
	31.80%
	38.30%
	44.70%
	51.20%

	80 & Over
	18.90%
	25.20%
	31.60%
	37.90%
	44.30%
	50.70%

For  intermediate Average  Total  Monthly  Pay  and  Service  combinations,  the  percentage  factor  will  be interpolated from the above.

The amount determined  above may not be greater  than 50% of Average Total Monthly Pay.

		
	C. 
	The amount of an  employee's monthly pension taken  into  account  under paragraph A of this Section will be the benefit, exclusive of any supplement for Incapability Retirement, determined without regard to the limitations imposed under paragraphs A(2)(b)(iii) and A(2)(b)(v) and D of Section IX of the Company's Pension and Retirement Plan and prior to any adjustment on account of (1) Early or Optional Retirement, (2) the Income-Leveling Option, (3) any spouse or survivor benefit provision, or (4) benefits to which an employee is entitled from any other private organization or from, or under the law of, any foreign government.

		
	D.
	If an employee's monthly pension under the Company's Pension and Retirement Plan is reduced with the Early or Optional Retirement provisions of that Plan, the same percentage reduction factor used in that Plan will be applied to the monthly supplemental retirement income determined under paragraph A of this Section.

		
	E.
	If the limitation set forth in Section IX.A(2)(b)(iii) of the Company's Pension and Retirement Plan relating to any deferred Variable Compensation Award has been applied, effective January 1, 1996, the amount of monthly supplemental retirement income payable to an employee under this Plan will include the amount of pension benefit attributable to the deferred Variable Compensation Award.

IV.     PAYMENTS BENEFITS

		
	A. 
	Subject to paragraphs B and C below, an eligible employee will be entitled to monthly supplemental retirement income payments for the period beginning on

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the day after he retires under the Company's Pension and Retirement Plan and ending on the last day of the month in which he dies.

		
	B. 
	If the monthly supplemental retirement income is or becomes less than or equal to the minimum monthly payment amount fixed by the Board of Benefits and Pensions, the actuarial equivalent of all such remaining monthly payments shall be paid in a lump sum.

		
	C. 
	An eligible employee may irrevocably elect under rules prescribed by the Board of Benefits and Pensions to receive the actuarial equivalent of all or part of the monthly supplemental retirement income in a lump sum.

		
	D. 
	Except as otherwise provided, benefits under this Plan are determined based on the Plan in effect at the time of retirement.

V.    DEFINITIONS AND GENERAL CONDITIONS

A.     Definitions

		
	1. 
	All terms used in this Plan which are defined in the Company's Pension and Retirement Plan will have the same meaning for purposes of this Plan except as expressly provided herein.

2.     (a)     The term "Average Total Monthly Pay" means the higher of

(i)     total  pay  for  the  thirty-six  consecutive  calendar  months  for which the employee's pay is the highest, divided by 36; or

(ii)   average  pay per month  based on total pay over a number  of calendar years, and a fraction of total pay for a calendar year if necessary, sufficient to obtain an aggregate amount of service equivalent to three full years.   Such calendar years shall be selected beginning with the calendar year in which average pay per month was the highest and taking in turn calendar years of successively lower average pay per month.  A fraction of total pay  for  a  calendar  year  shall  be by multiplying average pay per month for that year by the number of months needed to yield an aggregate amount of service equivalent  to three full years.

Only pay for the 120 calendar months up to  and  including  the calendar   month   in  which   the  employee   retires   under  the Company's Pens1on Plan will be taken into  account in computing Average Total Monthly Pay.

(b)     The term "pay" includes variable pay and awards under the Variable
Compensation  Plan,  the  Incentive  Compensation  Plan  and  former

4

Dividend Unit Plan of the Company or similar plans of any of its affiliated companies, which are not forfeited, but does not include (i) allowances in connection with transfer of employment or termination of employment and other special payments, or (ii) awards, pay under a gain sharing program or payments under the Special Compensation Plan or Stock Option Plan of the Company or similar plans of the Company or any of its affiliated companies.

(c)    The value of an award under the Company's Variable Compensation Plan, the Incentive Compensation Plan or former Dividend Unit Plan for any calendar year will be prorated over the length of an employee's service for that year which is used in computing his benefit under this Plan to the extent the award is attributable to such service.  The value of an award under the Variable Compensation Plan, or the Incentive Compensation Plan will be the total award value approved by the Compensation and Benefits Committee.  The value of an award under the former Dividend Unit Plan will be the value used by the Compensation and Benefits Committee in determining the number of dividend units awarded to an employee.

(d)    Where a retired employee is granted an award under the Variable Compensation Plan, the Incentive Compensation Plan or the former Dividend Unit Plan for the calendar year in which his retirement is effective, his Average Total Monthly Pay will be recomputed and, if applicable, his monthly supplemental retirement income will be increased beginning the month following that in which such award is granted.

		
	3. 
	The term "Service" means the length, in years and fractions of a year, of an employee's period of "continuous service" as determined under the Company's Continuity of Service Rules for computing the amount of a pension and, to the extend prescribed in such Rules, recognition will be given for service which the employee has rendered to an affiliated company or to a company whose assets have been acquired in whole or in part, by the Company.

		
	4.
	The term "Company" means E. I. du Pont de Nemours and Company, any wholly owned subsidiary or part thereof and any partnership or joint venture in which E. I. du Pont de Nemours and Company is joined which adopts this Plan with the approval of the Company, or such person or persons as the Company may designate.

B.    Payments Rounded to Next Higher Full Dollar

Each monthly payment which is computed in accordance with this Plan will, if not in whole dollars, be increased to the next higher whole dollar.   Such rounding shall be made after applying any applicable reduction factors.

5

C.     Nonassignment

No assignment of the rights and interests under this Plan will be permitted or recognized under any circumstances, nor shall such rights and interests be subject to attachment or other legal processes for debt.

D.    Forfeiture of Benefits

If an employee forfeits all or part of an award under the Company's Variable Compensation Plan, the Incentive Compensation Plan or former Dividend Unit Plan, all rights and interests of the employee under this Plan will be forfeited.

E.     Administration

		
	1. 
	The administration of this Plan is vested in the Board of Benefits and Pensions appointed by the Company, except that the Compensation and Benefits Committee shall determine the discount rate to be used in calculating the lump sum payment described in Section N.  The Board shall have the discretionary right to determine eligibility for benefits hereunder and to construe the terms and conditions of this Plan. The Board may adopt, subject to the approval of the Compensation and Benefits Committee, or its delegate, such rules as it may deem necessary for the proper administration of the Plan, and its decision in all matters involving the interpretation and application of the Plan shall be final, conclusive and binding.

		
	2. 
	All expenses and costs in connection with the operation of this Plan shall be borne by the Company out of its general assets.

F.    Amendment

The Company reserves the right to change this Plan in its discretion by action of the Compensation and Benefits Committee or its delegate, or to discontinue this Plan in its discretion by action of the Board of Directors, provided that the right to an amount payable to a person for any calendar year, calculated in accordance with the terms of this Plan at the time of benefit commencement, will not be reduced or eliminated by an amendment or termination of this Plan.

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