Common use of COLLATERAL SECURITIES Clause in Contracts

COLLATERAL SECURITIES. On the Issue Date, the Borrower shall issue an irrevocable instruction letter to its transfer agent in the form attached hereto as Exhibit D (the “Instruction Letter”) instructing the transfer agent to reserve three million (3,000,000) shares of its common stock, restricted in accordance with Rule 144 (the “Collateral Securities”), for the benefit of the Agent to secure the payment of the Obligations. In the event the Obligations are not paid in full by the Maturity Date, the Agent may instruct the transfer agent to issue the shares to the Agent in accordance with the Instruction Letter. Once in receipt of the Collateral Securities, and once the Agent is able to sell the Collateral Securities in accordance with federal and state securities laws, the Agent may sell the Collateral Securities until such time as the Agent has received sufficient funds to pay all the Obligations in full. Any shares of the Collateral Securities that remain after such funds have been received will be returned to the Borrower. These shares are subject to adjustment in the event the Borrower subdivides or combines its outstanding shares of common stock.

COLLATERAL SECURITIES. On the Issue Date, the Borrower shall issue an irrevocable instruction letter to its transfer agent in the form attached hereto as Exhibit D (the “Instruction Letter”) instructing the transfer agent to reserve three million (3,000,000) shares of its common stock, restricted in accordance with Rule 144 (the “Collateral Securities”), for the benefit of the Agent to secure the payment of the Obligations. In the event the Obligations are not paid in full by the Maturity Date, the Agent may instruct the transfer agent to issue the shares to the Agent in accordance with the Instruction Letter. Once in receipt of the Collateral Securities, and once the Agent is able to sell the Collateral Securities in accordance with federal and state securities laws, the Agent may sell the Collateral Securities until such time as the Agent has received sufficient funds to pay all the Obligations in full. Any shares of the Collateral Securities that remain after such funds have been received will be returned to the Borrower. These shares are subject to adjustment in the event the Borrower subdivides or combines its outstanding shares of common stock. In connection with the issuance of the Instruction Letter and the payment of the Advance (and related payoff of the Existing Cedarview Obligations), the Agent (or the Lenders, as applicable) will cancel any irrevocable instruction letter currently on file with the Borrower’s transfer agent that is related to the Existing Cedarview Obligations.