Document:

SECURITY
      AGREEMENT

    

    SECURITY
      AGREEMENT, dated as of April 6, 2007 (this “Agreement”),
      by
      and among Universal
      Property Development and Acquisition Corporation,
      a
      Nevada corporation (the
      “Company”),
      Canyon Creek Oil and Gas, Inc. and Catlin Oil and Gas, Inc. (the “Operating
      Subsidiaries”), Nevada corporations whose principal place of business is located
      at 14255 US HWY, 1 Suite 209, Juno Beach, FL 33408, Kamal Abdallah, a US citizen
      and resident of the state of Texas, whose primary residence is 8 Links Green,
      San Antonio, TX 78257, Christopher J. McCauley, a US citizen and resident of
      the
      state of Ohio, whose primary residence is 5408 Valley Pkwy., Brecksville, OH
      44141 (Messrs. Abdallah and McCauley and the Operating Subsidiaries,
      collectively, the “Guarantors”)(the
      Company and Guarantors are collectively
      referred to as the “Debtors”)
      and
Sheridan
      Asset Management LLC,
      as the
      holder of the Company’s Subordinated Secured Promissory Note due April 6, 2008
      in the original aggregate principal amount of $3,635,000 (the “Note”)
      of the
      Company, and each of it endorsees, transferees and assigns (collectively
      referred to as, the “Secured
      Party”).

    

    WITNESSETH:

    

    WHEREAS,
      pursuant to the Note, the Secured Party has severally agreed to extend the
      loan
      to the Company evidenced by the Note; 

    

    WHEREAS,
      the Company has agreed to cause any and all of its subsidiaries to execute
      a
      Subsidiary Guarantee in the form of Exhibit A attached hereto dated as of the
      date hereof (the “Guaranty”),
      pursuant to which the Operating
      Subsidiaries shall
      jointly and severally guaranty and act as surety for payment of such loan;
      

    

    WHEREAS,
      Messrs. Abdallah and McCauley have executed Guaranties pursuant to which they
      shall guaranty and act as surety for payment of such loan; and

    

    WHEREAS,
      in order to induce the Secured Party to extend the loan evidenced by the Note,
      the Company has agreed to, and to cause any and all Guarantors to, execute
      and
      deliver to the Secured Party this Agreement and to grant the Secured Party,
      a
      perfected security interest in the property of such Debtor to secure the prompt
      payment, performance and discharge in full of all of the Obligations (as
      hereinafter defined).

    

    NOW,
      THEREFORE, in consideration of the agreements herein contained and for other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto hereby agree as follows:

    

    1.
       Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the meanings set forth in
      this
      Section 1. Terms used but not otherwise defined in this Agreement that are
      defined in Article 9 of the UCC (such as “account”, “chattel paper”, “commercial
      tort claim”, “deposit account”, “document”, “equipment”, “fixtures”, “general
      intangibles”, “goods”, “instruments”, “inventory”, “investment property”,
“letter-of-credit rights”, “proceeds” and “supporting obligations”) shall have
      the respective meanings given such terms in Article 9 of the UCC. Terms used
      and
      not otherwise defined in this Agreement shall have the meaning provided in
      the
      Note.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (a) “Business
      Day”
shall
      have the meaning set forth in the Note. 

    

    (b) “Collateral”
shall
      include the following personal property of the Debtors, whether presently owned
      or existing or hereafter acquired or coming into existence, wherever situated,
      and all additions and accessions thereto and all substitutions and replacements
      thereof, and all proceeds, products and accounts thereof, including, without
      limitation, all proceeds from the sale or transfer of the Collateral and of
      insurance covering the same and of any tort claims in connection
      therewith,
      all
      Pledged Securities (defined below) and all dividends, interest, cash, notes,
      securities, equity interest or other property at any time and from time to
      time
      acquired, receivable or otherwise distributed in respect of, or in exchange
      for,
      any or all of the Pledged Securities:

    

    (i)
      All
      goods, including, without limitations, (A) all machinery, equipment, computers,
      motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special
      and
      general tools, fixtures, test and quality control devices and other equipment
      of
      every kind and nature and wherever situated, together with all documents of
      title and documents representing the same, all additions and accessions thereto,
      replacements therefor, all parts therefor, and all substitutes for any of the
      foregoing and all other items used and useful in connection with any Debtor’s
      businesses and all improvements thereto; and (B) all inventory;

    

    (ii)
       All
      contract rights and other general intangibles, including, without limitation,
      all partnership interests, membership interests, stock or other securities,
      rights
      under any of the Organizational Documents, agreements related to the Pledged
      Securities, licenses,
      distribution and other agreements, computer software (whether “off-the-shelf”,
      licensed from any third party or developed by any Debtor), computer software
      development rights, leases, franchises, customer lists, quality control
      procedures, grants and rights, goodwill, trademarks, service marks, trade
      styles, trade names, patents, patent applications, copyrights, Intellectual
      Property, and income tax refunds; 

     

    (iii)
       All
      accounts, together with all instruments, all documents of title representing
      any
      of the foregoing, all rights in any merchandising, goods, equipment, motor
      vehicles and trucks which any of the same may represent, and all right, title,
      security and guaranties with respect to each account, including any right of
      stoppage in transit; 

    

    (iv)
       All
      documents, letter-of-credit rights, instruments and chattel paper;

    

    (v) All
      commercial tort claims;

     

    
      
         

      

      
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    (vi) All
      deposit accounts and all cash (whether or not deposited in such deposit
      accounts);

    

    (vii) All
      investment property;

    

    (viii) All
      supporting obligations; and

    

    (ix) All
      files, records, books of account, business papers, and computer programs;
      and

    

    (x) the
      products and proceeds of all of the foregoing Collateral set forth in clauses
      (i)-(ix) above.

    

    Without
      limiting the generality of the foregoing, the “Collateral”
shall
      include all investment property and general intangibles respecting ownership
      and/or other equity interests in the Company and each Operating Subsidiary,
      including, without limitation, the shares of capital stock and the other equity
      interests listed on Schedule
      H
      hereto
      (as the same may be modified from time to time pursuant to the terms hereof),
      and any other shares of capital stock and/or other equity interests of any
      other
      direct or indirect subsidiary of any Debtor obtained in the future, and, in
      each
      case, all certificates representing such shares and/or equity interests and,
      in
      each case, all rights, options, warrants, stock, other securities and/or equity
      interests that may hereafter be received, receivable or distributed in respect
      of, or exchanged for, any of the foregoing (all of the foregoing being referred
      to herein as the “Pledged
      Securities”)
      and
      all rights arising under or in connection with the Pledged Securities,
      including, but not limited to, all dividends, interest and cash.

     

    Notwithstanding
      the foregoing, nothing herein shall be deemed to constitute an assignment of
      any
      asset which, in the event of an assignment, becomes void by operation of
      applicable law or the assignment of which is otherwise prohibited by applicable
      law (in each case to the extent that such applicable law is not overridden
      by
      Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law);
      provided, however, that to the extent permitted by applicable law, this
      Agreement shall create a valid security interest in such asset and, to the
      extent permitted by applicable law, this Agreement shall create a valid security
      interest in the proceeds of such asset.

    

    (c)
       “Intellectual
      Property”
means
      the collective reference to all rights, priorities and privileges relating
      to
      intellectual property, whether arising under United States, multinational or
      foreign laws or otherwise, including, without limitation, (i) all copyrights
      arising under the laws of the United States, any other country or any political
      subdivision thereof, whether registered or unregistered and whether published
      or
      unpublished, all registrations and recordings thereof, and all applications
      in
      connection therewith, including, without limitation, all registrations,
      recordings and applications in the United States Copyright Office, (ii) all
      letters patent of the United States, any other country or any political
      subdivision thereof, all reissues and extensions thereof, and all applications
      for letters patent of the United States or any other country and all divisions,
      continuations and continuations-in-part thereof, (iii) all trademarks, trade
      names, corporate names, company names, business names, fictitious business
      names, trade dress, service marks, logos, domain names and other source or
      business identifiers, and all goodwill associated therewith, now existing or
      hereafter adopted or acquired, all registrations and recordings thereof, and
      all
      applications in connection therewith, whether in the United States Patent and
      Trademark Office or in any similar office or agency of the United States, any
      State thereof or any other country or any political subdivision thereof, or
      otherwise, and all common law rights related thereto, (iv) all trade secrets
      arising under the laws of the United States, any other country or any political
      subdivision thereof, (v) all rights to obtain any reissues, renewals or
      extensions of the foregoing, (vi) all licenses for any of the foregoing, and
      (vii) all causes of action for infringement of the foregoing.

     

    
      
         

      

      
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    (d) “Necessary
      Endorsement”
shall
      mean undated stock powers endorsed in blank or other proper instruments of
      assignment duly executed and such other instruments or documents as the Secured
      Party may reasonably request.

    

    (e)
       “Obligations”
means
      all of the Debtors’ obligations under this Agreement, the
      Note,
      the Guaranties,
      the Subordinate Guaranties, the Security Documents, the Loan Agreement and
      any
      other instruments, agreements or other documents executed and/or delivered
      in
      connection herewith or therewith, in each case, whether now or hereafter
      existing, voluntary or involuntary, direct or indirect, absolute or contingent,
      liquidated or unliquidated, whether or not jointly owed with others, and whether
      or not from time to time decreased or extinguished and later increased, created
      or incurred, and all or any portion of such obligations or liabilities that
      are
      paid, to the extent all or any part of such payment is avoided or recovered
      directly or indirectly from any of the Secured Party as a preference, fraudulent
      transfer or otherwise as such obligations may be amended, supplemented,
      converted, extended or modified from time to time. Without limiting the
      generality of the foregoing, the term “Obligations” shall include, without
      limitation: (i) principal of and interest on the Note
      and
      the
      loans extended pursuant thereto; (ii) any and all other fees, indemnities,
      costs, obligations and liabilities of the Debtors from time to time under or
      in
      connection with this Agreement, the Note, the Guaranty and any other
      instruments, agreements or other documents executed and/or delivered in
      connection herewith or therewith; and (iii) all amounts (including but not
      limited to post-petition interest) in respect of the foregoing that would be
      payable but for the fact that the obligations to pay such amounts are
      unenforceable or not allowable due to the existence of a bankruptcy,
      reorganization or similar proceeding involving any Debtor.

    

    (f) “Organizational
      Documents”
means
      with respect to any of the Company or any Operating Subsidiary, the documents
      by
      which such Debtor was organized (such as a certificate of incorporation,
      certificate of limited partnership or articles of organization, and including,
      without limitation, any certificates of designation for preferred stock or
      other
      forms of preferred equity) and which relate to the internal governance of such
      Debtor (such as bylaws, a partnership agreement or an operating, limited
      liability or members agreement).

     

    
      
         

      

      
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    (g) “UCC”
means
      the Uniform Commercial Code of the State of New York and or any other applicable
      law of any state or states which has jurisdiction with respect to all, or any
      portion of, the Collateral or this Agreement, from time to time. It is the
      intent of the parties that defined terms in the UCC should be construed in
      their
      broadest sense so that the term “Collateral” will be construed in its broadest
      sense. Accordingly if there are, from time to time, changes to defined terms
      in
      the UCC that broaden the definitions, they are incorporated herein and if
      existing definitions in the UCC are broader than the amended definitions, the
      existing ones shall be controlling. 

    

    2.
       Grant
      of Perfected Security Interest.
      As an
      inducement for the Secured Party to extend the loan as evidenced by the Note
      and
      to secure the complete and timely payment, performance and discharge in full,
      as
      the case may be, of all of the Obligations, each Debtor hereby unconditionally
      and irrevocably pledges, grants and hypothecates to the Secured Party a
      continuing and perfected security interest in and to, a lien upon and a right
      of
      set-off against all of such Debtor’s respective right, title and interest of
      whatsoever kind and nature in and to, the Collateral (the “Security
      Interest”).
      

    

    3. Delivery
      of Certain Collateral.
      Contemporaneously or prior to the execution of this Agreement, each Debtor
      shall
      deliver or cause to be delivered to the Secured Party (a) any and all
      certificates and other instruments representing or evidencing the Pledged
      Securities, and (b) any and all certificates and other instruments or documents
      representing any of the other Collateral, in each case, together with all
      Necessary Endorsements. The Debtors are, contemporaneously with the execution
      hereof, delivering to the Secured Party, or have previously delivered to the
      Secured Party, a true and correct copy of each Organizational Document governing
      any of the Pledged Securities.

    

     4.  Representations,
      Warranties, Covenants and Agreements of the Debtors.
      Each
      Debtor represents and warrants to, and covenants and agrees with, the Secured
      Party as follows:

    

    (a)
      Each
      Debtor which is a corporation has the requisite corporate power and authority
      to
      enter into this Agreement and otherwise to carry out its obligations hereunder.
      The execution, delivery and performance by each such Debtor of this Agreement
      and the filings contemplated therein have been duly authorized by all necessary
      action on the part of such Debtor and no further action is required by such
      Debtor. This Agreement has been duly executed by each Debtor. This Agreement
      constitutes the legal, valid and binding obligation of each Debtor, enforceable
      against each Debtor in accordance with its terms except as such enforceability
      may be limited by applicable bankruptcy, insolvency, reorganization and similar
      laws of general application relating to or affecting the rights and remedies
      of
      creditors and by general principles of equity.

     

    
      
         

      

      
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    (b)
       The
      Debtors have no place of business or offices where their respective books of
      account and records are kept (other than temporarily at the offices of its
      attorneys or accountants) or places where Collateral is stored or located,
      except as set forth on Schedule
      A
      attached
      hereto. Except as specifically set forth on Schedule
      A,
      each
      Debtor is the record owner of the real property where such Collateral is
      located, and there exist no mortgages or other liens on any such real property.
      Except as disclosed on Schedule
      A,
      none of
      such Collateral is in the possession of any consignee, bailee, warehouseman,
      agent or processor.

    

    (c)
       Except
      as
      set forth on Schedule
      B
      attached
      hereto, the Debtors are the sole owner of the Collateral (except for
      non-exclusive licenses granted by any Debtor in the ordinary course of
      business), free and clear of any liens, security interests, encumbrances, rights
      or claims, and are fully authorized to grant the Security Interest . There
      is
      not on file in any governmental or regulatory authority, agency or recording
      office an effective financing statement, security agreement, license or transfer
      or any notice of any of the foregoing (other than those that will be filed
      in
      favor of the Secured Party pursuant to this Agreement) covering or affecting
      any
      of the Collateral. So long as this Agreement shall be in effect, the Debtors
      shall not execute and shall not knowingly permit to be on file in any such
      office or agency any such financing statement or other document or instrument
      (except to the extent filed or recorded in favor of the Secured Party pursuant
      to the terms of this Agreement).

    

    (d)
       Except
      as
      set forth on Schedule
      I
      attached
      hereto, no written claim has been received that any Collateral or Debtor's
      use
      of any Collateral violates the rights of any third party. There has been no
      adverse decision to any Debtor's claim of ownership rights in or exclusive
      rights to use the Collateral in any jurisdiction or to any Debtor's right to
      keep and maintain such Collateral in full force and effect, and there is no
      proceeding involving said rights pending or, to the best knowledge of any
      Debtor, threatened before any court, judicial body, administrative or regulatory
      agency, arbitrator or other governmental authority.

    

    (e)
       Each
      Debtor shall at all times maintain its books of account and records relating
      to
      the Collateral at its principal place of business and its Collateral at the
      locations set forth on Schedule
      A
      attached
      hereto and may not relocate such books of account and records or tangible
      Collateral unless it delivers to the Secured Party at least 30 days prior to
      such relocation (i) written notice of such relocation and the new location
      thereof (which must be within the United States) and (ii) evidence that
      appropriate financing statements under the UCC and other necessary documents
      have been filed and recorded and other steps have been taken to perfect the
      Security Interest to create in favor of the Secured Party a valid, perfected
      and
      continuing perfected first priority lien in the Collateral.

    

    (f)
       This
      Agreement creates in favor of the Secured Party a valid, security interest
      in
      the Collateral, securing the payment and performance of the Obligations. Upon
      making the filings described in the immediately following paragraph, all
      security interests created hereunder in any Collateral which may be perfected
      by
      filing Uniform Commercial Code financing statements shall have been duly
      perfected. Except for the filing of the Uniform Commercial Code financing
      statements referred to in the immediately following paragraph, the recordation
      of the Intellectual Property Security Agreement (as defined below) with respect
      to copyrights and copyright applications in the United States Copyright Office
      referred to in paragraph (p), the execution and delivery of deposit account
      control agreements satisfying the requirements of Section 9-104(a)(2) of the
      UCC
      with respect to each deposit account of the Debtors,
      and the
      delivery of the certificates and other instruments provided in Section
      3,
      no
      action is necessary to create, perfect or protect the security interests created
      hereunder. Without limiting the generality of the foregoing, except for the
      filing of said financing statements, the recordation of said Intellectual
      Property Security Agreement, and the execution and delivery of said deposit
      account control agreements, no consent of any third parties and no
      authorization, approval or other action by, and no notice to or filing with,
      any
      governmental authority or regulatory body is required for (i) the execution,
      delivery and performance of this Agreement, (ii) the creation or perfection
      of
      the Security Interests created hereunder in the Collateral or (iii) the
      enforcement of the rights of the Secured Party hereunder.

     

    
      
         

      

      
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    (g)
       Each
      Debtor hereby authorizes the Secured Party to file one or more financing
      statements under the UCC, with respect to the Security Interest with the proper
      filing and recording agencies in any jurisdiction deemed proper by
      them.

    

    (h)
       The
      execution, delivery and performance of this Agreement by the Debtors does not
      (i) violate any of the provisions of any Organizational Documents of any Debtor
      which is a corporation or any judgment, decree, order or award of any court,
      governmental body or arbitrator or any applicable law, rule or regulation
      applicable to any Debtor or (ii) conflict with, or constitute a default (or
      an
      event that 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 (with or without notice, lapse of time or both) of, any agreement,
      credit facility, debt or other instrument (evidencing any Debtor's debt or
      otherwise) or other understanding to which any Debtor is a party or by which
      any
      property or asset of any Debtor is bound or affected. No consent (including,
      without limitation, from stockholders or creditors of any Debtor) is required
      for any Debtor to enter into and perform its obligations hereunder.

    

    (i)
       The
      capital stock and other equity interests listed on Schedule
      H
      hereto
      represent all of the capital stock and other equity interests in the Company
      owned by Messrs. Abdallah and McCauley, and represent all capital stock and
      other equity interests owned, directly or indirectly, by the Company. All of
      the
      Pledged Securities are validly issued, fully paid and nonassessable, and the
      Company is the legal and beneficial owner of the Pledged Securities issued
      by
      the Operating Subsidiaries, free and clear of any lien, security interest or
      other encumbrance except for the security interests created by this
      Agreement.

     

    
      
         

      

      
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    (j)
       The
      ownership and other equity interests in partnerships and limited liability
      companies (if any)
      included
      in the Collateral
      (the
“Pledged
      Interests”)
      by
      their express terms do not provide that they are securities governed by Article
      8 of the UCC and are not held in a securities account or by any financial
      intermediary.

    

    (k)
       Each
      Debtor shall at all times maintain the liens and Security Interest provided
      for
      hereunder as valid and perfected first priority liens and security interests
      in
      the Collateral in favor of the Secured Party until this Agreement and the
      Security Interest hereunder shall be terminated pursuant to Section 11 hereof.
      Each Debtor hereby agrees to defend the same against the claims of any and
      all
      persons and entities. Each Debtor shall safeguard and protect all Collateral
      for
      the account of the Secured Party. At the request of the Secured Party, each
      Debtor will sign and deliver to the Secured Party at any time or from time
      to
      time one or more financing statements pursuant to the UCC in form reasonably
      satisfactory to the Secured Party and will pay the cost of filing the same
      in
      all public offices wherever filing is, or is deemed by the Secured Party to
      be,
      necessary or desirable to effect the rights and obligations provided for herein.
      Without limiting the generality of the foregoing, each Debtor shall pay all
      fees, taxes and other amounts necessary to maintain the Collateral and the
      Security Interest hereunder, and each Debtor shall obtain and furnish to the
      Secured Party from time to time, upon demand, such releases and/or
      subordinations of claims and liens which may be required to maintain the
      priority of the Security Interest hereunder.

    

    (l)
       No
      Debtor
      will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose
      of any of the Collateral (except for non-exclusive licenses granted by a Debtor
      in its ordinary course of business and sales of inventory by a Debtor in its
      ordinary course of business) without the prior written consent of the Secured
      Party.

    

    (m) Each
      Debtor shall keep and preserve its equipment, inventory and other tangible
      Collateral in good condition, repair and order and shall not operate or locate
      any such Collateral (or cause to be operated or located) in any area excluded
      from insurance coverage.

    

    (n) Each
      Debtor shall maintain with financially sound and reputable insurers, insurance
      with respect to the Collateral against loss or damage of the kinds and in the
      amounts customarily insured against by entities of established reputation having
      similar properties similarly situated and in such amounts as are customarily
      carried under similar circumstances by other such entities and otherwise as
      is
      prudent for entities engaged in similar businesses but in any event sufficient
      to cover the full replacement cost thereof. Each Debtor shall cause each
      insurance policy issued in connection herewith to provide, and the insurer
      issuing such policy to certify to the Secured Party that (a) the Secured Party
      will be named as lender loss payee and additional insured under each such
      insurance policy; (b) if such insurance be proposed to be cancelled or
      materially changed for any reason whatsoever, such insurer will promptly notify
      the Secured Party and such cancellation or change shall not be effective as
      to
      the Secured Party for at least thirty (30) days after receipt by the Secured
      Party of such notice, unless the effect of such change is to extend or increase
      coverage under the policy; and (c) the Secured Party will have the right (but
      no
      obligation) at its election to remedy any default in the payment of premiums
      within thirty (30) days of notice from the insurer of such default. If no Event
      of Default (as defined in the Debenture) exists and if the proceeds arising
      out
      of any claim or series of related claims do not exceed $50,000, loss payments
      in
      each instance will be applied by the applicable Debtor to the repair and/or
      replacement of property with respect to which the loss was incurred to the
      extent reasonably feasible, and any loss payments or the balance thereof
      remaining, to the extent not so applied, shall be payable to the applicable
      Debtor, provided, however, that payments received by any Debtor after an Event
      of Default occurs and is continuing or in excess of $50,000 for any occurrence
      or series of related occurrences shall be paid to the Secured Party and, if
      received by such Debtor, shall be held in trust for and immediately paid over
      to
      the Secured Party unless otherwise directed in writing by the Secured Party.
      Copies of such policies or the related certificates, in each case, naming the
      Secured Party as lender loss payee and additional insured shall be delivered
      to
      the Secured Party at least annually and at the time any new policy of insurance
      is issued.

     

    
      
         

      

      
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    (o)
       Each
      Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the
      Secured Party promptly, in sufficient detail, of any substantial change in
      the
      Collateral, and of the occurrence of any event which would have a material
      adverse effect on the value of the Collateral or on the Secured Party’s security
      interest therein.

    

    (p)
       Each
      Debtor shall promptly execute and deliver to the Secured Party such further
      deeds, mortgages, assignments, security agreements, financing statements or
      other instruments, documents, certificates and assurances and take such further
      action as the Secured Party may from time to time request and may in its sole
      discretion deem necessary to perfect, protect or enforce its security interest
      in the Collateral including, without limitation, if applicable, the execution
      and delivery of a separate security agreement with respect to each Debtor’s
      Intellectual Property (“Intellectual
      Property Security Agreement”)
      in
      which the Secured Party has been granted a security interest hereunder,
      substantially in a form acceptable to the Secured Party, which Intellectual
      Property Security Agreement, other than as stated therein, shall be subject
      to
      all of the terms and conditions hereof.

    

    (q)
       Each
      Debtor shall permit the Secured Party and its representatives and agents to
      inspect the Collateral at any time, and to make copies of records pertaining
      to
      the Collateral as may be requested by the Secured Party from time to
      time.

    

    (r)
       Each
      Debtor shall take all steps reasonably necessary to diligently pursue and seek
      to preserve, enforce and collect any rights, claims, causes of action and
      accounts receivable in respect of the Collateral.

    

    (s)
       Each
      Debtor shall promptly notify the Secured Party in sufficient detail upon
      becoming aware of any attachment, garnishment, execution or other legal process
      levied against any Collateral and of any other information received by such
      Debtor that may materially affect the value of the Collateral, the Security
      Interest or the rights and remedies of the Secured Party hereunder.

     

    
      
         

      

      
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    (t)
       All
      information heretofore, herein or hereafter supplied to the Secured Party by
      or
      on behalf of any Debtor with respect to the Collateral is accurate and complete
      in all material respects as of the date furnished.

    

    (u)
       The
      Debtors shall at all times preserve and keep in full force and effect their
      respective valid existence and good standing and any rights and franchises
      material to its business.

    

    (v)
       No
      Debtor
      will change its name, type of organization, jurisdiction of organization,
      organizational identification number (if it has one), legal or corporate
      structure, or identity, or add any new fictitious name unless it provides at
      least 20 days prior written notice to the Secured Party of such change and,
      at
      the time of such written notification, such Debtor provides any financing
      statements or fixture filings necessary to perfect and continue perfected the
      perfected security Interest granted and evidenced by this
      Agreement.

    

    (w) No
      Debtor
      may consign any of its Inventory or sell any of its Inventory on bill and hold,
      sale or return, sale on approval, or other conditional terms of sale without
      the
      consent of the Secured Party which shall not be unreasonably withheld, except
      to
      the extent such consignment or sale does not exceed 15% of the total value
      of
      all of the Company’s finished goods in Inventory.

    

    (x)
       No
      Debtor
      may relocate its chief executive office to a new location without providing
      30
      days prior written notification thereof to the Secured Party and so long as,
      at
      the time of such written notification, such Debtor provides any financing
      statements or fixture filings necessary to perfect and continue perfected the
      perfected Security Interest granted and evidenced by this
      Agreement.

    

    (y) Each
      Debtor which is a corporation was organized and remains organized solely under
      the laws of the state set forth next to such Debtor’s name in the first
      paragraph of this Agreement. Schedule
      D
      attached
      hereto sets forth each Debtor’s organizational identification number or, if any
      Debtor does not have one, states that one does not exist.

    

    (z) 
      (i) The
      actual name of each Debtor is the name set forth in the preamble above; (ii)
      no
      Debtor has any trade names except as set forth on Schedule
      E
      attached
      hereto; (iii) no Debtor has used any name other than that stated in the preamble
      hereto or as set forth on Schedule
      E
      for the
      preceding five years; and (iv) no entity has merged into any Debtor or been
      acquired by any Debtor within the past five years except as set forth on
Schedule
      E.

     

    
      
         

      

      
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    (aa) At
      any
      time and from time to time that any Collateral consists of instruments,
      certificated securities or other items that require or permit possession by
      the
      secured party to perfect the security interest created hereby, the applicable
      Debtor shall deliver such Collateral to the
      Secured Party.

    

    (bb)
       Each
      of
      the Company and each Operating Subsidiary, in its capacity as issuer, hereby
      agrees to comply with any and all orders and instructions of the Secured Party
      regarding the Pledged Interests consistent with the terms of this Agreement
      without the further consent of any Debtor as contemplated by Section 8-106
      (or
      any successor section) of the UCC. Further, each Debtor agrees that it shall
      not
      enter into a similar agreement (or one that would confer “control” within the
      meaning of Article 8 of the UCC) with any other person or entity.

     

    (cc) Each
      Debtor shall cause all tangible chattel paper constituting Collateral to be
      delivered to the
      Secured Party,
      or, if
      such delivery is not possible, then to cause such tangible chattel paper to
      contain a legend noting that it is subject to the security interest created
      by
      this Agreement. To the extent that any Collateral consists of electronic chattel
      paper, the applicable Debtor shall cause the underlying chattel paper to be
      “marked” within the meaning of Section 9-105 of the UCC (or successor section
      thereto).

    

    (dd) Reserved.

    

    (ee)
       To
      the
      extent that any Collateral consists of letter-of-credit rights, the applicable
      Debtor shall cause the issuer of each underlying letter of credit to consent
      to
      an assignment of the proceeds thereof to the Secured Party.

    

    (ff)
       To
      the
      extent that any Collateral is in the possession of any third party, the
      applicable Debtor shall join with the Secured Party in notifying such third
      party of the Secured Party’ security interest in such Collateral and shall use
      its best efforts to obtain an acknowledgement and agreement from such third
      party with respect to the Collateral, in form and substance satisfactory to
      the
      Secured Party.

    

    (gg) If
      any
      Debtor shall at any time hold or acquire a commercial tort claim, such Debtor
      shall promptly notify the Secured Party in a writing signed by such Debtor
      of
      the particulars thereof and grant to the Secured Party in such writing a
      security interest therein and in the proceeds thereof, all upon the terms of
      this Agreement, with such writing to be in form and substance satisfactory
      to
      the Secured Party.

    

    (hh) Each
      Debtor shall immediately provide written notice to the Secured Party of any
      and
      all accounts which arise out of contracts with any governmental authority and,
      to the extent necessary to perfect or continue the perfected status of the
      Security Interest in such accounts and proceeds thereof, shall execute and
      deliver to the Secured Party an assignment of claims for such accounts and
      cooperate with the Secured Party in taking any other steps required, in their
      judgment, under the Federal Assignment of Claims Act or any similar federal,
      state or local statute or rule to perfect or continue the perfected status
      of
      the Security Interest in such accounts and proceeds thereof.

     

    
      
         

      

      
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    (ii) The
      Company and each Operating Subsidiary shall cause each subsidiary
      of such
      Debtor to immediately become a party hereto (an “Additional
      Debtor”),
      by
      executing and delivering an Additional Debtor Joinder in substantially the
      form
      of Annex A attached hereto and comply with the provisions hereof applicable
      to
      the Debtors. Concurrent therewith, the Additional Debtor shall deliver
      replacement schedules for, or supplements to all other Schedules to (or referred
      to in) this Agreement, as applicable, which replacement schedules shall
      supersede, or supplements shall modify, the Schedules then in effect. The
      Additional Debtor shall also deliver such opinions of counsel, authorizing
      resolutions, good standing certificates, incumbency certificates, organizational
      documents, financing statements and other information and documentation as
      the
      Secured Party may reasonably request. Upon delivery of the foregoing to the
      Secured Party, the Additional Debtor shall be and become a party to this
      Agreement with the same rights and obligations as the Debtors, for all purposes
      hereof as fully and to the same extent as if it were an original signatory
      hereto and shall be deemed to have made the representations, warranties and
      covenants set forth herein as of the date of execution and delivery of such
      Additional Debtor Joinder, and all references herein to the “Debtors” shall be
      deemed to include each Additional Debtor.

    

    (jj)
       Each
      Debtor shall vote the Pledged Securities of such Debtor to comply with the
      covenants and agreements set forth herein and in the Note.

    

    (kk) Each
      of
      the Company and each Operating Subsidiary shall register the pledge of the
      applicable Pledged Securities on the books of such Debtor. Each Debtor shall
      notify each issuer of Pledged Securities to register the pledge of the
      applicable Pledged Securities in the name of the Secured Party on the books
      of
      such issuer. Further, except with respect to certificated securities delivered
      to the Secured Party, the applicable Debtor shall deliver to the Secured Party
      an acknowledgement of pledge (which, where appropriate, shall comply with the
      requirements of the relevant UCC with respect to perfection by registration)
      signed by the issuer of the applicable Pledged Securities, which acknowledgement
      shall confirm that: (a) it has registered the pledge on its books and records;
      and (b) at any time directed by the Secured Party during the continuation of
      an
      Event of Default, such issuer will transfer the record ownership of such Pledged
      Securities into the name of any designee of the Secured Party, will take such
      steps as may be necessary to effect the transfer, and will comply with all
      other
      instructions of the Secured Party regarding such Pledged Securities without
      the
      further consent of the applicable Debtor.

    

    (ll)
      In
      the
      event that, upon an occurrence of an Event of Default, the Secured Party shall
      sell all or any of the Pledged Securities to another party or parties (herein
      called the “Transferee”)
      or
      shall purchase or retain all or any of the Pledged Securities, each Debtor
      shall, to the extent applicable: (i) deliver to the Secured Party or the
      Transferee, as the case may be, the articles of incorporation, bylaws, minute
      books, stock certificate books, corporate seals, deeds, leases, indentures,
      agreements, evidences of indebtedness, books of account, financial records
      and
      all other Organizational Documents and records of the Debtors and their direct
      and indirect subsidiaries; (ii) use its best efforts to obtain resignations
      of
      the persons then serving as officers and directors of the Debtors and their
      direct and indirect subsidiaries, if so requested; and (iii) use its best
      efforts to obtain any approvals that are required by any governmental or
      regulatory body in order to permit the sale of the Pledged Securities to the
      Transferee or the purchase or retention of the Pledged Securities by the Secured
      Party and allow the Transferee or the Secured Party to continue the business
      of
      the Debtors and their direct and indirect subsidiaries.

     

    
      
         

      

      
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    (mm) Without
      limiting the generality of the other obligations of the Debtors hereunder,
      each
      Debtor shall promptly (i) cause to be registered at the United States Copyright
      Office all of its material copyrights, (ii) cause the security interest
      contemplated hereby with respect to all Intellectual Property registered at
      the
      United States Copyright Office or United States Patent and Trademark Office
      to
      be duly recorded at the applicable office, and (iii) give the
      Secured Party
      notice
      whenever it acquires (whether absolutely or by license) or creates any
      additional material Intellectual Property.

    

    (nn) Each
      Debtor will from time to time, at the joint and several expense of the Debtors,
      promptly execute and deliver all such further instruments and documents, and
      take all such further action as may be necessary or desirable, or as the Secured
      Party may reasonably request, in order to perfect and protect any security
      interest granted or purported to be granted hereby or to enable the Secured
      Party to exercise and enforce their rights and remedies hereunder and with
      respect to any Collateral or to otherwise carry out the purposes of this
      Agreement.

    

    (oo) Schedule
      F
      attached
      hereto lists all of the patents, patent applications, trademarks, trademark
      applications, registered copyrights, and domain names owned by any of the
      Debtors as of the date hereof. Schedule
      F
      lists
      all material licenses in favor of any Debtor for the use of any patents,
      trademarks, copyrights and domain names as of the date hereof. All material
      patents and trademarks of the Debtors have been duly recorded at the United
      States Patent and Trademark Office and all material copyrights of the Debtors
      have been duly recorded at the United States Copyright Office.

    

    (pp) Except
      as
      set forth on Schedule
      G
      attached
      hereto, none of the account debtors or other persons or entities obligated
      on
      any of the Collateral is a governmental authority covered by the Federal
      Assignment of Claims Act or any similar federal, state or local statute or
      rule
      in respect of such Collateral.

    

    5. Effect
      of Pledge on Certain Rights. If
      any of
      the Collateral subject to this Agreement consists of nonvoting equity or
      ownership interests (regardless of class, designation, preference or rights)
      that may be converted into voting equity or ownership interests upon the
      occurrence of certain events (including, without limitation, upon the transfer
      of all or any of the other stock or assets of the issuer), it is agreed that
      the
      pledge of such equity or ownership interests pursuant to this Agreement or
      the
      enforcement of any of the Secured Party’ rights hereunder shall not be deemed to
      be the type of event which would trigger such conversion rights notwithstanding
      any provisions in the Organizational Documents or agreements to which any Debtor
      is subject or to which any Debtor is party.

     

    
      
         

      

      
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    6.  Defaults.
      The
      following events shall be “Events
      of Default”:

    

    (a)
      The
      occurrence of an Event of Default (as defined in the Note) under the
      Note;

    

    (b)
      Any
      representation or warranty of any Debtor in this Agreement shall prove to have
      been incorrect in any material respect when made;

    

    (c)
      The
      failure by any Debtor to observe or perform any of its obligations hereunder
      for
      two (2) Business Days; or

    

    (d)
      If
      any provision of this Agreement shall at any time for any reason be declared
      to
      be null and void, or the validity or enforceability thereof shall be contested
      by any Debtor, or a proceeding shall be commenced by any Debtor, or by any
      governmental authority having jurisdiction over any Debtor, seeking to establish
      the invalidity or unenforceability thereof, or any Debtor shall deny that any
      Debtor has any liability or obligation purported to be created under this
      Agreement.

     

    7. Duty
      To Hold In Trust.
      

    

    (a) Upon
      the
      occurrence of any Event of Default and at any time thereafter, each Debtor
      shall, upon receipt of any revenue, income,
      dividend, interest
      or other
      sums subject to the Security Interest, whether payable pursuant to the Note
      or
      otherwise, or of any check, draft, note, trade acceptance or other instrument
      evidencing an obligation to pay any such sum, hold the same in trust for the
      Secured Party and shall forthwith endorse and transfer any such sums or
      instruments, or both (to the extent permitted by law), to the Secured Party
      for
      application to the satisfaction of the Obligations. 

    

    (b) If
      any
      Debtor shall become entitled to receive or shall receive any securities or
      other
      property (including, without limitation, shares of Pledged Securities or
      instruments representing Pledged Securities acquired after the date hereof,
      or
      any options, warrants, rights or other similar property or certificates
      representing a dividend, or any distribution in connection with any
      recapitalization, reclassification or increase or reduction of capital, or
      issued in connection with any reorganization of such Debtor or any of its direct
      or indirect subsidiaries) in respect of the Pledged Securities (whether as
      an
      addition to, in substitution of, or in exchange for, such Pledged Securities
      or
      otherwise), such Debtor agrees to (i) accept the same as the agent of the
      Secured Party; (ii) hold the same in trust on behalf of and for the benefit
      of
      the Secured Party; and (iii) to deliver any and all certificates or instruments
      evidencing the same to the Secured Party on or before the close of business
      on
      the fifth business day following the receipt thereof by such Debtor, in the
      exact form received together with the Necessary Endorsements, to be held by
      the
      Secured Party subject to the terms of this Agreement as Collateral.

     

    
      
         

      

      
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    8.  Rights
      and Remedies Upon Default.
      

    

    (a) Upon
      the
      occurrence of any Event of Default and at any time thereafter, the Secured
      Party, acting through any agent it appoints for such purpose, shall have the
      right to exercise all of the remedies conferred hereunder and under the Note,
      and the Secured Party shall have all the rights and remedies of a secured party
      under the UCC. Without limitation, the Secured Party shall have the following
      rights and powers to the extent permitted by applicable law:

    

    (i)
      The
      Secured Party shall have the right to take possession of the Collateral and,
      for
      that purpose, enter, with the aid and assistance of any person, any premises
      where the Collateral, or any part thereof, is or may be placed and remove the
      same, and each Debtor shall assemble the Collateral and make it available to
      the
      Secured Party at places which the Secured Party shall reasonably select, whether
      at such Debtor's premises or elsewhere, and make available to the Secured Party,
      without rent, all of such Debtor’s respective premises and facilities for the
      purpose of the Secured Party taking possession of, removing or putting the
      Collateral in saleable or disposable form.

    

    (ii) Upon
      notice to the Debtors by the Secured Party, all rights of each Debtor to
      exercise the voting and other consensual rights which it would otherwise be
      entitled to exercise and all rights of each Debtor to receive the dividends
      and
      interest which it would otherwise be authorized to receive and retain, shall
      cease. Upon such notice, the Secured Party shall have the right to receive
      any
      interest, cash dividends or other payments on the Collateral and, at its option,
      to exercise in its discretion all voting rights pertaining thereto. Without
      limiting the generality of the foregoing, the Secured Party shall have the
      right
      (but not the obligation) to exercise all rights with respect to the Collateral
      as if it were the sole and absolute owners thereof, including, without
      limitation, to vote and/or to exchange, at its sole discretion, any or all
      of
      the Collateral in connection with a merger, reorganization, consolidation,
      recapitalization or other readjustment concerning or involving the Collateral
      or
      any Debtor or any of its direct or indirect subsidiaries.

    

    (iii)
      The
      Secured Party shall have the right to operate the business of each Debtor using
      the Collateral and shall have the right to assign, sell, lease or otherwise
      dispose of and deliver all or any part of the Collateral, at public or private
      sale or otherwise, either with or without special conditions or stipulations,
      for cash or on credit or for future delivery, in such parcel or parcels and
      at
      such time or times and at such place or places, and upon such terms and
      conditions as the Secured Party may deem commercially reasonable, all without
      (except as shall be required by applicable statute and cannot be waived)
      advertisement or demand upon or notice to any Debtor or right of redemption
      of a
      Debtor, which are hereby expressly waived. Upon each such sale, lease,
      assignment or other transfer of Collateral, the Secured Party may, unless
      prohibited by applicable law which cannot be waived, purchase all or any part
      of
      the Collateral being sold, free from and discharged of all trusts, claims,
      right
      of redemption and equities of any Debtor, which are hereby waived and
      released.

     

    
      
         

      

      
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    (iv) The
      Secured Party shall have the right (but not the obligation) to notify any
      account debtors and any obligors under instruments or accounts to make payments
      directly to the Secured Party and to enforce the Debtors’ rights against such
      account debtors and obligors.

    

    (v) The
      Secured Party may (but is not obligated to) direct any financial intermediary
      or
      any other person or entity holding any investment property to transfer the
      same
      to the Secured Party or their designee.

    

    (vi) The
      Secured Party may (but is not obligated to) transfer any or all Intellectual
      Property registered in the name of any Debtor at the United States Patent and
      Trademark Office and/or Copyright Office into the name of the Secured Party
      or
      any designee or any purchaser of any Collateral.

    

    (b) The
      Secured Party may comply with any applicable law in connection with a
      disposition of Collateral and such compliance will not be considered adversely
      to affect the commercial reasonableness of any sale of the Collateral. The
      Secured Party may sell the Collateral without giving any warranties and may
      specifically disclaim such warranties. If the Secured Party sells any of the
      Collateral on credit, the Debtors will only be credited with payments actually
      made by the purchaser in cash. In addition, to the extent permitted by
      applicable law, each Debtor waives any and all rights that it may have to a
      judicial hearing in advance of the enforcement of any of the Secured Party’
rights and remedies hereunder, including, without limitation, its right
      following an Event of Default to take immediate possession of the Collateral
      and
      to exercise its rights and remedies with respect thereto.

     

    (c) For
      the
      purpose of enabling the Secured Party to further exercise rights and remedies
      under this Section 8 or elsewhere provided by agreement or applicable law,
      each
      Debtor hereby grants to the Secured Party an irrevocable, nonexclusive license
      (exercisable without payment of royalty or other compensation to such Debtor)
      to
      use, license or sublicense following an Event of Default, any Intellectual
      Property now owned or hereafter acquired by such Debtor, and wherever the same
      may be located, and including in such license access to all media in which
      any
      of the licensed items may be recorded or stored and to all computer software
      and
      programs used for the compilation or printout thereof.

    

    9.  Applications
      of Proceeds.
      The
      proceeds of any such sale, lease or other disposition of the Collateral
      hereunder shall be applied first, to the expenses of retaking, holding, storing,
      processing and preparing for sale, selling, and the like (including, without
      limitation, any taxes, fees and other costs incurred in connection therewith)
      of
      the Collateral, to the reasonable attorneys’ fees and expenses incurred by the
      Secured Party in enforcing its rights hereunder and in connection with
      collecting, storing and disposing of the Collateral, and then to satisfaction
      of
      the other Obligations, and to the payment of any other amounts required by
      applicable law, after which the Secured Party shall pay to the applicable Debtor
      any surplus proceeds. If, upon the sale, license or other disposition of the
      Collateral, the proceeds thereof are insufficient to pay all amounts to which
      the Secured Party is legally entitled, the Debtors will be liable for the
      deficiency, together with interest thereon, at the rate of 16% per annum or
      the
      lesser amount permitted by applicable law (the “Default Rate”), and the
      reasonable fees of any attorneys employed by the Secured Party to collect such
      deficiency. To the extent permitted by applicable law, each Debtor waives all
      claims, damages and demands against the Secured Party arising out of the
      repossession, removal, retention or sale of the Collateral, unless due solely
      to
      the gross negligence or willful misconduct of the Secured Party as determined
      by
      a final judgment (not subject to further appeal) of a court of competent
      jurisdiction.

     

    
      
         

      

      
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    10. Securities
      Law Provision.
      Each
      Debtor recognizes that the Secured Party may be limited in its ability to effect
      a sale to the public of all or part of the Pledged Securities by reason of
      certain prohibitions in the Securities Act of 1933, as amended, or other federal
      or state securities laws (collectively, the “Securities
      Laws”),
      and
      may be compelled to resort to one or more sales to a restricted group of
      purchasers who may be required to agree to acquire the Pledged Securities for
      their own account, for investment and not with a view to the distribution or
      resale thereof. Each Debtor agrees that sales so made may be at prices and
      on
      terms less favorable than if the Pledged Securities were sold to the public,
      and
      that the Secured Party has no obligation to delay the sale of any Pledged
      Securities for the period of time necessary to register the Pledged Securities
      for sale to the public under the Securities Laws. Each Debtor shall cooperate
      with the Secured Party in its attempt to satisfy any requirements under the
      Securities Laws (including, without limitation, registration thereunder if
      requested by the Secured Party) applicable to the sale of the Pledged Securities
      by the Secured Party.

     

     11.  Costs
      and Expenses.
      Each
      Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses
      incurred in connection with any filing required hereunder, including without
      limitation, any financing statements pursuant to the UCC, continuation
      statements, partial releases and/or termination statements related thereto
      or
      any expenses of any searches reasonably required by the Secured Party. The
      Debtors shall also pay all other claims and charges which in the reasonable
      opinion of the Secured Party might prejudice, imperil or otherwise affect the
      Collateral or the Security Interest therein. The Debtors will also, upon demand,
      pay to the Secured Party the amount of any and all reasonable expenses,
      including the reasonable fees and expenses of its counsel and of any experts
      and
      agents, which the Secured Party may incur in connection with (i) the enforcement
      of this Agreement, (ii) the custody or preservation of, or the sale of,
      collection from, or other realization upon, any of the Collateral, or (iii)
      the
      exercise or enforcement of any of the rights of the Secured Party under the
      Note. Until so paid, any fees payable hereunder shall be added to the principal
      amount of the Note and shall bear interest at the Default Rate.

     

    
      
         

      

      
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     12.  Responsibility
      for Collateral.
      The
      Debtors assume all liabilities and responsibility in connection with all
      Collateral, and the Obligations shall in no way be affected or diminished by
      reason of the loss, destruction, damage or theft of any of the Collateral or
      its
      unavailability for any reason. The Secured Party agrees to act in accordance
      with commercially reasonable standards and the UCC. Without limiting the
      generality of the foregoing, (a) no Secured Party (i) has any duty (either
      before or after an Event of Default) to collect any amounts in respect of the
      Collateral or to preserve any rights relating to the Collateral, or (ii) has
      any
      obligation to clean-up or otherwise prepare the Collateral for sale, and (b)
      each Debtor shall remain obligated and liable under each contract or agreement
      included in the Collateral to be observed or performed by such Debtor
      thereunder. The Secured Party shall have no obligation or liability under any
      such contract or agreement by reason of or arising out of this Agreement or
      the
      receipt by the Secured Party of any payment relating to any of the Collateral,
      nor shall the Secured Party be obligated in any manner to perform any of the
      obligations of any Debtor under or pursuant to any such contract or agreement,
      to make inquiry as to the nature or sufficiency of any payment received by
      the
      Secured Party in respect of the Collateral or as to the sufficiency of any
      performance by any party under any such contract or agreement, to present or
      file any claim, to take any action to enforce any performance or to collect
      the
      payment of any amounts which may have been assigned to the Secured Party may
      be
      entitled at any time or times.

    

    13.  Security
      Interest Absolute.
      All
      rights of the Secured Party and all obligations of the Debtors hereunder, shall
      be absolute and unconditional, irrespective of: (a) any lack of validity or
      enforceability of this Agreement, the Note or any agreement entered into in
      connection with the foregoing, or any portion hereof or thereof; (b) any change
      in the time, manner or place of payment or performance of, or in any other
      term
      of, all or any of the Obligations, or any other amendment or waiver of or any
      consent to any departure from the Note or any other agreement entered into
      in
      connection with the foregoing; (c) any exchange, release or nonperfection of
      any
      of the Collateral, or any release or amendment or waiver of or consent to
      departure from any other collateral for, or any guaranty, or any other security,
      for all or any of the Obligations; (d) any action by the Secured Party to
      obtain, adjust, settle and cancel in its sole discretion any insurance claims
      or
      matters made or arising in connection with the Collateral; or (e) any other
      circumstance which might otherwise constitute any legal or equitable defense
      available to a Debtor, or a discharge of all or any part of the Security
      Interest granted hereby. Until the Obligations shall have been paid and
      performed in full, the rights of the Secured Party shall continue even if the
      Obligations are barred for any reason, including, without limitation, the
      running of the statute of limitations or bankruptcy. Each Debtor expressly
      waives presentment, protest, notice of protest, demand, notice of nonpayment
      and
      demand for performance. In the event that at any time any transfer of any
      Collateral or any payment received by the Secured Party hereunder shall be
      deemed by final order of a court of competent jurisdiction to have been a
      voidable preference or fraudulent conveyance under the bankruptcy or insolvency
      laws of the United States, or shall be deemed to be otherwise due to any party
      other than the Secured Party, then, in any such event, each Debtor’s obligations
      hereunder shall survive cancellation of this Agreement, and shall not be
      discharged or satisfied by any prior payment thereof and/or cancellation of
      this
      Agreement, but shall remain a valid and binding obligation enforceable in
      accordance with the terms and provisions hereof. Each Debtor waives all right
      to
      require the Secured Party to proceed against any other person or entity
      or
to
      apply
      any Collateral which the Secured Party may hold at any time, or to marshal
      assets, or to pursue any other remedy. Each Debtor waives any defense arising
      by
      reason of the application of the statute of limitations to any obligation
      secured hereby.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

     14.
       Term
      of Agreement.
      This
      Agreement and the Security Interest shall terminate on the date on which all
      payments under the Note have been indefeasibly paid in full and all other
      Obligations have been paid or discharged; provided, however, that all
      indemnities of the Debtors contained in this Agreement shall survive and remain
      operative and in full force and effect regardless of the termination of this
      Agreement.

    

    15.
       Power
      of Attorney; Further Assurances.

    

    (a)
       Each
      Debtor authorizes the Secured Party, and does hereby make, constitute and
      appoint the Secured Party and its officers, agents, successors or assigns with
      full power of substitution, as such Debtor’s true and lawful attorney-in-fact,
      with power, in the name of the Secured Party or such Debtor, to (i) endorse
      any
      note, checks, drafts, money orders or other instruments of payment (including
      payments payable under or in respect of any policy of insurance) in respect
      of
      the Collateral that may come into possession of the Secured Party; (ii) sign
      and
      endorse any financing statement pursuant to the UCC or any invoice, freight
      or
      express bill, bill of lading, storage or warehouse receipts, drafts against
      debtors, assignments, verifications and notices in connection with accounts,
      and
      other documents relating to the Collateral; (iii) pay or discharge taxes,
      liens, security interests or other encumbrances at any time levied or placed
      on
      or threatened against the Collateral; (iv) demand, collect, receipt for,
      compromise, settle and sue for monies due in respect of the Collateral; (v)
      transfer any Intellectual Property or provide licenses respecting any
      Intellectual Property; and (vi) generally, at the option of the Secured Party,
      and at the expense of the Debtors, at any time, or from time to time, execute
      and deliver any and all documents and instruments and to do all acts and things
      which the Secured Party deems necessary to protect, preserve and realize upon
      the Collateral and the Security Interest granted therein in order to effect
      the
      intent of this Agreement and the Note all as fully and effectually as the
      Debtors might or could do; and each Debtor hereby ratifies all that said
      attorney shall lawfully do or cause to be done by virtue hereof. This power
      of
      attorney is coupled with an interest and shall be irrevocable for the term
      of
      this Agreement and thereafter as long as any of the Obligations shall be
      outstanding. The
      designation set forth herein shall be deemed to amend and supersede any
      inconsistent provision in the Organizational Documents or other documents or
      agreements to which any Debtor is subject or to which any Debtor is a party.
      Without
      limiting the generality of the foregoing, after the occurrence and during the
      continuance of an Event of Default, the Secured Party is specifically authorized
      to execute and file any applications for or instruments of transfer and
      assignment of any patents, trademarks, copyrights or other Intellectual Property
      with the United States Patent and Trademark Office and the United States
      Copyright Office.

    

    (b)
       On
      a
      continuing basis, each Debtor will make, execute, acknowledge, deliver, file
      and
      record, as the case may be, with the proper filing and recording agencies in
      any
      jurisdiction, including, without limitation, the jurisdictions indicated on
      Schedule
      C
      attached
      hereto, all such instruments, and take all such action as may reasonably be
      deemed necessary or advisable, or as reasonably requested by the Secured Party,
      to perfect the Security Interest granted hereunder and otherwise to carry out
      the intent and purposes of this Agreement, or for assuring and confirming to
      the
      Secured Party the grant or perfection of a perfected security interest in all
      the Collateral under the UCC.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

    (c)
       Each
      Debtor hereby irrevocably appoints the Secured Party as such Debtor’s
      attorney-in-fact, with full authority in the place and instead of such Debtor
      and in the name of such Debtor, from time to time in the Secured Party’
discretion, to take any action and to execute any instrument which the Secured
      Party may deem necessary or advisable to accomplish the purposes of this
      Agreement, including the filing, in its sole discretion, of one or more
      financing or continuation statements and amendments thereto, relative to any
      of
      the Collateral without the signature of such Debtor where permitted by law,
      which financing statements may (but need not) describe the Collateral as “all
      assets” or “all personal property” or words of like import, and ratifies all
      such actions taken by the Secured Party. This power of attorney is coupled
      with
      an interest and shall be irrevocable for the term of this Agreement and
      thereafter as long as any of the Obligations shall be outstanding.

    

     16.  Notices.
      All
      notices, requests, demands and other communications hereunder shall be subject
      to the notice provision of the Loan Agreement.

    

     17.  Other
      Security.
      To the
      extent that the Obligations are now or hereafter secured by property other
      than
      the Collateral or by the guarantee, endorsement or property of any other person,
      firm, corporation or other entity, then the Secured Party shall have the right,
      in its sole discretion, to pursue, relinquish, subordinate, modify or take
      any
      other action with respect thereto, without in any way modifying or affecting
      any
      of the Secured Party’ rights and remedies hereunder.

    

    18.  Intentionally
      Omitted.
      

     

    19.  Miscellaneous.

    

    (a)
       No
      course
      of dealing between the Debtors and the Secured Party, nor any failure to
      exercise, nor any delay in exercising, on the part of the Secured Party, any
      right, power or privilege hereunder or under the Note shall operate as a waiver
      thereof; nor shall any single or partial exercise of any right, power or
      privilege hereunder or thereunder preclude any other or further exercise thereof
      or the exercise of any other right, power or privilege.

    

    (b)
       All
      of
      the rights and remedies of the Secured Party with respect to the Collateral,
      whether established hereby or by the Note or by any other agreements,
      instruments or documents or by law shall be cumulative and may be exercised
      singly or concurrently.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    (c)
       This
      Agreement constitutes the entire agreement of the parties with respect to the
      subject matter hereof and is intended to supersede all prior negotiations,
      understandings and agreements with respect thereto. Except as specifically
      set
      forth in this Agreement, no provision of this Agreement may be modified or
      amended except by a written agreement specifically referring to this Agreement
      and signed by the parties hereto.

    

    (d)
       In
      the
      event any provision of this Agreement is held to be invalid, prohibited or
      unenforceable in any jurisdiction for any reason, unless such provision is
      narrowed by judicial construction, this Agreement shall, as to such
      jurisdiction, be construed as if such invalid, prohibited or unenforceable
      provision had been more narrowly drawn so as not to be invalid, prohibited
      or
      unenforceable. If, notwithstanding the foregoing, any provision of this
      Agreement is held to be invalid, prohibited or unenforceable in any
      jurisdiction, such provision, as to such jurisdiction, shall be ineffective
      to
      the extent of such invalidity, prohibition or unenforceability without
      invalidating the remaining portion of such provision or the other provisions
      of
      this Agreement and without affecting the validity or enforceability of such
      provision or the other provisions of this Agreement in any other
      jurisdiction.

    

    (e)
       No
      waiver
      of any breach or default or any right under this Agreement shall be considered
      valid unless in writing and signed by the party giving such waiver, and no
      such
      waiver shall be deemed a waiver of any subsequent breach or default or right,
      whether of the same or similar nature or otherwise.

    

    (f)
       This
      Agreement shall be binding upon and inure to the benefit of each party hereto
      and its successors and assigns.

    

    (g)
       Each
      party shall take such further action and execute and deliver such further
      documents as may be necessary or appropriate in order to carry out the
      provisions and purposes of this Agreement.

    

    (h)
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each Debtor agrees that all proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement and the Note (whether brought against a party
      hereto or its respective affiliates, directors, officers, shareholders,
      partners, members, employees or agents) shall be commenced exclusively in the
      state and federal courts sitting in the City of New York, Borough of Manhattan.
      Each Debtor hereby irrevocably submits to the exclusive jurisdiction of the
      state and federal courts sitting in the City of New York, Borough of Manhattan
      for the adjudication of any dispute hereunder or in connection herewith or
      with
      any transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any proceeding, any claim that it is not
      personally subject to the jurisdiction of any such court, that such proceeding
      is improper. Each party hereto hereby irrevocably waives personal service of
      process and consents to process being served in any such proceeding by mailing
      a
      copy thereof via registered or certified mail or overnight delivery (with
      evidence of delivery) to such party at the address in effect for notices to
      it
      under this Agreement and agrees that such service shall constitute good and
      sufficient service of process and notice thereof. Nothing contained herein
      shall
      be deemed to limit in any way any right to serve process in any manner permitted
      by law. Each party hereto hereby irrevocably waives, to the fullest extent
      permitted by applicable law, any and all right to trial by jury in any legal
      proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby. If any party shall commence a proceeding to enforce any
      provisions of this Agreement, then the prevailing party in such proceeding
      shall
      be reimbursed by the other party for its reasonable attorney’s fees and other
      costs and expenses incurred with the investigation, preparation and prosecution
      of such proceeding.

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    (i)
       This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

    

    (j) All
      Debtors shall jointly and severally be liable for the obligations of each Debtor
      to the Secured Party hereunder.

    

    (k) Each
      Debtor shall indemnify, reimburse and hold harmless the Secured Party and its
      partners, members, shareholders, officers, directors, employees and agents
      (collectively, “Indemnitees”)
      from
      and against any and all losses, claims, liabilities, damages, penalties, suits,
      costs and expenses, of any kind or nature, (including fees relating to the
      cost
      of investigating and defending any of the foregoing) imposed on, incurred by
      or
      asserted against such Indemnitee in any way related to or arising from or
      alleged to arise from this Agreement or the Collateral, except any such losses,
      claims, liabilities, damages, penalties, suits, costs and expenses which result
      from the gross negligence or willful misconduct of the Indemnitee as determined
      by a final, nonappealable decision of a court of competent jurisdiction. This
      indemnification provision is in addition to, and not in limitation of, any
      other
      indemnification provision in the Note, the Loan Agreement or any other
      agreement, instrument or other document executed or delivered in connection
      herewith or therewith.

    

    (l) Nothing
      in this Agreement shall be construed to subject the Secured Party to liability
      as a partner in any Debtor or any if its direct or indirect subsidiaries that
      is
      a partnership or as a member in any Debtor or any of its direct or indirect
      subsidiaries that is a limited liability company, nor shall the Secured Party
      be
      deemed to have assumed any obligations under any partnership agreement or
      limited liability company agreement, as applicable, of any such Debtor or any
      of
      its direct or indirect subsidiaries or otherwise, unless and until any the
      Secured Party exercises its right to be substituted for such Debtor as a partner
      or member, as applicable, pursuant hereto.

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    

    (m)
       To
      the
      extent that the grant of the Security Interest in the Collateral and the
      enforcement of the terms hereof require the consent, approval or action of
      any
      Debtor or any direct or indirect subsidiary of any Debtor, such Debtor hereby
      grants, or shall cause its Subsidiary to grant, such consent and approval and
      waive any such noncompliance with the terms of said documents. The Company
      shall
      cause each of its subsidiaries formed or acquired on or subsequent to the date
      hereof to become a Guarantor for all purposes of this Agreement by executing
      and
      delivering an Assumption Agreement in the form attached as Annex 1 to the
      Subsidiary Guarantee.

    

    [SIGNATURE
      PAGES FOLLOW]

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Security Agreement to
      be
      duly executed on the day and year first above written.

    

    
      	
              UNIVERSAL
                PROPERTY DEVELOPMENT AND ACQUISITION CORPORATION

               

            
	
              __________________________________________

              Name:

              Title:

            
	 
	
              KAMAL
                ABDALLAH

               

            
	
              __________________________________________

            
	 
	
              CHRISTOPHER
                MCCAULEY

               

            
	
              __________________________________________

            
	 
	
              CANYON
                CREEK OIL AND GAS INC.

               

               

            
	
              _________________________________________

              Name:
                

              Title: 

            
	 
	
              CATLIN
                OIL AND GAS, INC.

            
	
              _________________________________________

              Name:
                

              Title:
                

            
	 
	
              SHERIDAN
                ASSET MANAGEMENT LLC 

               

            
	
              __________________________________________

              Name:

              Title:

            

    

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    SCHEDULE
      A

    

    LOCATION
      OF COLLATERAL

    

    

    Principal
      Place of Business of Debtors:

    

    UNIVERSAL
      PROPERTY DEVELOPMENT AND ACQUISITION CORPORATION

    14255
      US
      HWY, 

    1
      Suite
      209, 

    Juno
      Beach, FL 33408

    

    CATLIN
      OIL AND GAS, INC.

    14255
      US
      HWY, 

    1
      Suite
      209, 

    Juno
      Beach, FL 33408

    

    CANYON
      CREEK OIL AND GAS, INC

    14255
      US
      HWY, 

    1
      Suite
      209, 

    Juno
      Beach, FL 33408

    

    KAMAL
      ABDALLAH

    14255
      US
      HWY, 

    1
      Suite
      209, 

    Juno
      Beach, FL 33408

    

    CHRISTOPHER
      J. MCCAULEY

    5408
      Valley Pkwy.,

    Brecksville,
      OH 44141

     

    Locations
      Where Collateral is Located or Stored:

     

    Corporate
      Assets

    

    CATLIN
      OIL AND GAS, INC.

    14255
      US
      HWY, 

    1
      Suite
      209, 

    Juno
      Beach, FL 33408

    

    CANYON
      CREEK OIL AND GAS, INC

    14255
      US
      HWY, 

    1
      Suite
      209, 

    Juno
      Beach, FL 33408

     

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    SCHEDULE
      B

    

    EXISTING
      LIENS ON COLLATERAL

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    SCHEDULE
      C

    

    JURISDICTIONS
      IN WHICH COLLATERAL LOCATED

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    SCHEDULE
      D

    

    ORGANIZATIONAL
      IDENTIFICATION NUMBERS

     

      
        	
                CORPORATION

              	
                FIEN

              
	
                CANYON
                  CREEK OIL AND GAS INC.

              	
                20-3110367

              
	
                 CATLIN
                  OIL AND GAS, INC.

              	
                20-5336700

              
	
                 

              	
                 

              
	
                 

              	
                 

              

      

    

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    SCHEDULE
      E

    

    NAMES;
      MERGERS AND ACQUISITIONS

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    SCHEDULE
      F

    

    INTELLECTUAL
      PROPERTY

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    SCHEDULE
      G

    

    ACCOUNT
      DEBTORS

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    SCHEDULE
      H

    

    PLEDGED
      SECURITIES

     

    60,000
      shares of Common Stock of Canyon Creek Oil and Gas Inc., par value $0.001 per
      share, Certificate No. 101 Dated March 7, 2007

    

    90,000
      shares of Common Stock of Catlin Oil and Gas, Inc., par value $0.001 per share,
      Certificate No. 101 Dated March 7, 2007

    

    2,060,000
      common shares in Universal Property Development and Acquisition Corporation,
      par
      value $0.001 per share, Certificate Nos. 2074, 2075, 2097, 2101 and 2126 dated
      August 18, 2005, August 18, 2005, October 1, 2005, September 30, 2005, and
      November 29, 2005. 

    

    80,000
      Class “A” Convertible Preferred stock in Universal Property Development and
      Acquisition Corporation, par value $10.00 per share, Certificate No. 8001,
      dated
      July 27, 2005

    

    20,000
      Class “A” Convertible Preferred stock of Universal Property Development and
      Acquisition Corporation, par value $10.00 per share, Certificate No. 8002 Dated
      July 27, 2005

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    

    SCHEDULE
      I

    

    CLAIMS

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    ANNEX
      A

    to

    SECURITY

    AGREEMENT

    

    FORM
      OF ADDITIONAL DEBTOR JOINDER

    

    Security
      Agreement dated as of ________ ___, 2007 made by

    Universal
      Property Development and Acquisition Corporation

    and
      its
      subsidiaries party thereto from time to time, as Debtors

    to
      and in
      favor of

    the
      Secured Party identified therein (the “Security
      Agreement”)

    

    Reference
      is made to the Security Agreement as defined above; capitalized terms used
      herein and not otherwise defined herein shall have the meanings given to such
      terms in, or by reference in, the Security Agreement.

    

    The
      undersigned hereby agrees that upon delivery of this Additional Debtor Joinder
      to the Secured Party referred to above, the undersigned shall (a) be an
      Additional Debtor under the Security Agreement, (b) have all the rights and
      obligations of the Debtors under the Security Agreement as fully and to the
      same
      extent as if the undersigned was an original signatory thereto and (c) be deemed
      to have made the representations and warranties set forth in Section ___ therein
      as of the date of execution and delivery of this Additional Debtor Joinder.
      WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY
      GRANTS TO THE SECURED PARTY A SECURITY INTEREST IN THE COLLATERAL AS MORE FULLY
      SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER
      OF
      JURY TRIAL PROVISIONS SET FORTH THEREIN.

    

    Attached
      hereto are supplemental and/or replacement Schedules to the Security Agreement,
      as applicable.

    

    An
      executed copy of this Joinder shall be delivered to the Secured Party, and
      the
      Secured Party may rely on the matters set forth herein on or after the date
      hereof. This Joinder shall not be modified, amended or terminated without the
      prior written consent of the Secured Party.

     

    
      
        
           

        

        
          34

          
            

          

        

        
           

        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in
      the
      name and on behalf of the undersigned.

     

    
      	 	 	 
	 	
            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

            
	 	Address: 
	 	 
	Dated:	 

    

    
 

    
      
         

      

      
        35ESCROW
        AGREEMENT

       

      ESCROW
        AGREEMENT, dated
        April 6, 2007, between Sheridan Asset Management, LLC (“Sheridan”), Universal
        Property Development and Acquisition Company (“UPDA”) and Katten Muchin Rosenman
        LLP (the “Escrow
        Agent”).

       

      WHEREAS,
        SHERIDAN proposes to extend certain financial accommodations (the
“Accommodation”) to UPDA in the amount of approximately $2,726,250 and SHERIDAN
        and UPDA have agreed upon the general terms and conditions of the Accommodation
        and anticipate closing the Accommodation on April 9, 2007 (the
“Closing”).

       

      NOW,
        THEREFORE,
        SHERIDAN and UPDA agree as follows:

       

      1. On
        the
        date hereof, SHERIDAN has transferred to an Escrow Account maintained by
        the
        Escrow Agent the sum of $2,726,250 (the “Escrow Fund”). The Escrow Fund shall be
        maintained in cash in a non-interest bearing account of the Escrow Agent
        and
        disbursed by the Escrow Agent only in accordance with the provisions of this
        Agreement. 

       

      2. Upon
        delivery to Escrow Agent of a written notice in the form attached hereto
        (the
“Escrow Notice”) signed by SHERIDAN and UPDA, the Escrow Agent shall deliver the
        entire Escrow Fund in accordance with the payment instructions contained
        therein.

       

      3. If
        SHERIDAN and UPDA fail to deliver an Escrow Notice with respect to the Escrow
        Fund to the Escrow Agent within one month of the date hereof, the entire
        amount
        of the Escrow Fund shall be transferred to SHERIDAN in accordance with payment
        instructions delivered by SHERIDAN at that time.

       

      4. The
        Escrow Agent may act or refrain from acting in respect of any matter arising
        in
        connection with the administration of the Escrow Fund, shall have no duties
        or
        obligations other than as stated herein and shall be protected in acting
        upon
        any notice, certificate or other communication, not only as to the due execution
        and the validity and effectiveness of its provisions, but also as to the
        truth
        and acceptability of any information therein contained, which it shall in
        good
        faith reasonably believe to be valid and to have been signed or presented
        by a
        proper person or persons. The Escrow Agent shall have no liability or
        responsibility hereunder for any act or omission to act except for its own
        gross
        negligence or willful misconduct. The Escrow Agent shall not be bound by
        any
        notice, or demand with respect thereto, or any waiver, modification, amendment,
        termination or rescission of this Agreement unless in writing delivered to
        the
        Escrow Agent, and, if the duties of the Escrow Agent are affected, unless
        it
        shall have given its prior written consent thereto. The Escrow Agent may,
        at any
        time, upon notice to SHERIDAN and UPDA, for any reason whatsoever, either
        (a)
        hold the Escrow Fund until otherwise directed by a written instrument signed
        by
        SHERIDAN and UPDA or (b) deposit the Escrow Fund in any court of competent
        jurisdiction pending the final determination of any dispute between the parties
        hereto.

       

      5. Nothing
        contained herein shall prevent the Escrow Agent from acting as counsel to
        SHERIDAN, its affiliated companies or any of their respective directors,
        officers, equity holders or employees in any dispute with UPDA or any third
        party which may arise relating to the provisions of the Agreement, the
        provisions hereof or those of any other agreement, document or instrument
        delivered in connection therewith or herewith.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6. All
        reasonable costs and expenses incurred by the Escrow Agent in performing
        its
        services under this Agreement shall be paid by UPDA.

       

      7. The
        Escrow Agent’s duties and responsibilities shall be limited to those expressly
        set forth in this Agreement, and the Escrow Agent shall not be subject to,
        nor
        obliged to recognize, any agreement between, or direction or instruction
        of,
        SHERIDAN and UPDA, or any of their respective directors, officers, equity
        holders or employees, unless reference thereto is made herein; provided,
        however, that with the Escrow Agent’s written consent, this Agreement may be
        amended at any time or times by an instrument in writing signed by the Escrow
        Agent, SHERIDAN and UPDA.

       

      8. If
        any
        property subject hereto is at any time attached, garnished or levied upon
        under
        any court order, or in case the payment, assignment, transfer, conveyance
        or
        delivery of any such property shall be stayed or enjoined by any court order,
        or
        in case any order, writ, judgment or decree shall be made or entered by any
        court affecting such property, or any part thereof, then in any of such events,
        the Escrow Agent is authorized to rely upon and comply with any such order,
        writ, judgment or decree, and if it complies with any such order, writ, judgment
        or decree, it shall not be liable to SHERIDAN or UPDA, their respective
        affiliates or to any other person, firm or corporation by reason of such
        compliance, even though such order, writ, judgment or decree may be subsequently
        reversed, modified, annulled, set aside or vacated.

       

      9. The
        Escrow Agent may resign at any time upon ten (10) business days’ prior written
        notice to SHERIDAN and UPDA. In the case of the Escrow Agent’s resignation, the
        Escrow Agent’s only duty shall be to deliver all remaining deposits in the
        Escrow Fund to a successor escrow agent acceptable to SHERIDAN, which acceptance
        shall be evidenced by the written and signed order of SHERIDAN. If no such
        order
        is received by the Escrow Agent within five (5) days after giving such notice,
        the Escrow Agent is unconditionally and irrevocably authorized and empowered,
        in
        its discretion, to appoint a successor escrow agent, which shall be a nationally
        recognized bank or financial institution of its choosing, and to send any
        and
        all items deposited and maintained hereunder to such successor escrow
        agent.

       

      10. All
        notices or other communications required or permitted hereunder shall be
        in
        writing and shall be deemed given or delivered (i) when delivered personally
        or
        by private courier, (ii) when actually delivered by registered United States
        mail, return receipt requested or, (iii) when sent by telecopy if confirmed
        as
        received that day by the receiving party (provided that the original of such
        notice or communication is sent that day by a means specified in clause (i)
        or
        (ii)), addresses and telecopy numbers provided for in the draft transaction
        documents relating to the Accommodation or at such other address (or addresses)
        as any of the parties may furnish in writing to the other parties. For all
        purposes hereof (a) any notice mailed by the Escrow Agent shall be effective
        at
        the time it is deposited by the Escrow Agent in the United States mail, whether
        or not it is actually received, and (b) any notice mailed to the Escrow Agent
        shall not be effective until actually received by the Escrow Agent.

       

      11. SHERIDAN
        and UPDA, jointly and severally, agree to indemnify and hold the Escrow Agent
        harmless from any and all loss, damage, claims, liabilities, judgments and
        other
        costs and expenses of every kind and nature which may be incurred by the
        Escrow
        Agent by reason of its acceptance of, and its performance under, this Agreement,
        including, without limitation, attorneys’ fees either paid to retained attorneys
        or amounts representing the fair value of legal services rendered to itself
        for
        liabilities incurred (the “Losses”), except to the extent the Losses arise from
        the gross negligence or willful misconduct of the Escrow Agent.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      12. The
        Escrow Agent shall be automatically released from all responsibility and
        liability under this Agreement upon the Escrow Agent’s delivery or deposit of
        the entire amount of the Escrow Fund in accordance with the provisions of
        this
        Agreement.

       

      13. This
        Escrow Agreement constitutes the entire understanding among the parties as
        to
        the subject matter hereof and no waiver or modification of the terms hereof
        shall be valid unless in writing signed by SHERIDAN, UPDA and the Escrow
        Agent
        and only to the extent therein set forth.

       

      14. This
        Escrow Agreement shall be governed by, and construed in accordance with,
        the
        laws of the State of New York.

       

      15. This
        Escrow Agreement shall be binding upon and inure to the benefit of the parties
        hereto, their respective heirs, administrators, executors, successors and
        permitted assigns.

       

      16. This
        Escrow Agreement may be executed in one or more counterparts, each of which
        shall be deemed an original.

       

      IN
        WITNESS WHEREOF, each of the parties hereto has executed this Agreement as
        of
        the day and year first above written.

       

      
        	
                SHERIDAN
                  ASSET
                  MANAGEMENT

                 

                 

              	 	KATTEN
                MUCHIN
                ROSENMAN LLP
	By: 	 	 	By:	 
	 	
                

                Name:       

                Title:

              	 	 	
                
                  

                

                Name:

                Title:

              
	 	 	 	 	 
	 	 	 	 	 
	UNIVERSAL PROPERTY DEVELOPMENT
                AND
                ACQUISITION CORP.	 	 	 
	 	 	 	 
	By:	 	 	 	 
	 	
                
Name:
                Title:

              	 	 	 

      

        

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      ESCROW
        NOTICE

      ________________,
        200__

      

       

      Katten
        Muchin Rosenman LLP

      575
        Madison Avenue

      New
        York,
        New York 10022-2585

      

      You
        are
        hereby directed to transfer the Escrow Fund (as such term is defined in the
        Escrow Agreement attached thereto) to the following accounts:

      

      1)
        $100,000 to Sheridan Asset Management, LLC:

      

      JP
        Morgan
        Chase

      [insert
        account information]

      Account:
        Sheridan Asset Management, LLC

      

      2)
        [insert accounts and amounts for payment of counsel to Sheridan and other
        closing expenses]

      

      3)
        $1,031,959.63 to SDS Capital Group SPC, Ltd:

      

      [insert
        account information]

      

      4)
        $468,040.37 to BayStar Capital II, LP:

      

      [insert
        account information]

      

      5)
        $1,000,000 to:

      

      [insert
        account information for shareholders of Heartland]

      
         

        
          	
                  
                    Very
                      truly yours,

                     

                    SHERIDAN
                      ASSET MANAGEMENT, LLC

                     

                  

                   

                	 	
                
	By: 	
                	 	 	 
	 	
                  

                  Name:       

                  Title:

                	 	 	
                   

                
	 

        

        
           

          
            	
                    UNIVERSAL PROPERTY DEVELOPMENT AND ACQUISITION
                      CORPORATION

                     

                  	 	
                  
	By: 	
                  	 	 	 
	 	
                    

                    Name:       

                    Title:

                  	 	 	
                     

                  
	 

          

        

        

        
          
            
            

          

          
            -4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]