SEC Contract Filing

Filing Date: 2020-05-07

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ex102_securityagreementwar.htm
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
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<div><a name="sE5ED1263FDF3311D3FE2F0456EEEA102"></a></div><div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">EXHIBIT 10.2</font></div></div><div><br></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">SECURITY AGREEMENT</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This Security Agreement (this &#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Security Agreement</font><font style="font-family:inherit;font-size:12pt;">&#8221; or &#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Agreement</font><font style="font-family:inherit;font-size:12pt;">&#8221;) is entered into as of May 1, 2020 by and between QUMU CORPORATION, a Minnesota corporation (&#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Debtor</font><font style="font-family:inherit;font-size:12pt;">&#8221;) and ESW HOLDINGS, INC.</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">&#32;</font><font style="font-family:inherit;font-size:12pt;">(&#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Secured Party</font><font style="font-family:inherit;font-size:12pt;">&#8221;) pursuant to the Secured Promissory Note dated as of the date hereof between Debtor and Secured Party (as amended, restated, supplemented or otherwise modified from time to time, the &#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Note</font><font style="font-family:inherit;font-size:12pt;">&#8221;). Capitalized terms used herein without definition have the meanings provided in the Note.</font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Whereas, the execution and delivery of this Security Agreement is a condition the financial accommodations provided to Debtor under the Note;</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Now, therefore, Debtor agrees with Secured Party as follows: </font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">1.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Definitions</font><font style="font-family:inherit;font-size:12pt;">. All terms defined in the Uniform Commercial Code of the State of New York (the &#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">UCC</font><font style="font-family:inherit;font-size:12pt;">&#8221;) and used herein, unless defined herein or in the Note, shall have the same definitions herein as specified in the UCC.</font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">2.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Security Interest</font><font style="font-family:inherit;font-size:12pt;">. Debtor hereby grants Secured Party, effective upon the occurrence of the Trigger Event (as defined below), a security interest in the following properties, assets and rights of Debtor, whether now owned or hereafter acquired: all cash deposited by or on behalf of Debtor deposited in those certain deposit accounts with Wells Fargo, National Association and identified as Account No. 4946319456 and 4125676627 (collectively, the &#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Deposit Accounts</font><font style="font-family:inherit;font-size:12pt;">&#8221;), together with all proceeds thereof, any contract rights, accounts or rights to the payment of money including accounts receivable, and all interest, products, proceeds and replacements of any of the foregoing (all of the foregoing being hereinafter called the &#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Collateral</font><font style="font-family:inherit;font-size:12pt;">&#8221;). For purposes of this Agreement, the term &#8220;Trigger Event&#8221; shall mean the earliest to occur of: (a) the consummation of the transactions contemplated by that certain Agreement and Plan of Merger and Reorganization by and among Synacor, Inc., Quantum Merger Sub I, Inc. and Debtor dated February 11, 2020 (the &#8220;</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Merger Agreement</font><font style="font-family:inherit;font-size:12pt;">&#8221;), (b) the termination of the Merger Agreement, (c) </font><font style="font-family:inheri