EXHIBIT 10.41
SECURITY AGREEMENT
1. Identification.
This Security Agreement (the "Agreement"), dated December 31, 2001, is
entered into by and between Commercial Consolidators Corp., a corporation
incorporated under the laws of the Province of Xxxxxx, Canada ("Debtor"), and
Xxxxxxx Xxxxxxx, as collateral agent [acting in the manner and to the extent
described in the Collateral Agent Agreement defined below] (the "Collateral
Agent"), for the benefit of the parties identified on Schedule A hereto
(collectively, the "Lenders").
2. Recitals.
2.1 The Lenders have made loans to Debtor (the "Loans").
2.2 The Loans are evidenced by those certain Secured Convertible Notes
described on Schedule A hereto ("Notes") and executed by Debtor as the
"Borrower" thereof, for the benefit of each individual Lender as the "Holder"
thereof. The Notes are issued pursuant and subject to a subscription agreement
dated at or about the date of this Agreement ("Subscription Agreement").
2.3 In order to induce Lenders to make the Loans, and as security for
Debtor's performance of its obligations under the Notes and as security for the
repayment of the Loans and any and all other sums due from Debtor to Lender
whether arising under the Notes issued pursuant to the Subscription Agreement,
including all of the Debtor's obligations arising under the Notes and the
Subscription Agreement relating thereto (collectively, the "Obligations"),
Debtor, for good and valuable consideration, receipt of which is acknowledged,
has agreed to grant to the Collateral Agent, for the benefit of the Lenders, a
security interest in the Collateral (as such term is hereinafter defined), on
the terms and conditions hereinafter set forth.
2.4 The Lenders have appointed Xxxxxxx Xxxxxxx as Collateral Agent
pursuant to that certain Collateral Agent Agreement dated as of December 31,
2001 ("Collateral Agent Agreement"), among the Lenders and Collateral Agent.
Defined Terms. The following defined terms which are defined
in the Uniform Commercial Code in effect in the State of New York on the date
hereof are used herein as so defined: Accounts, Chattel Paper, Documents,
Equipment, General Intangibles, Instruments, Inventory and Proceeds.
3. Grant of General Subordinated Security Interest in Collateral.
3.1 As security for the Obligations, Debtor hereby grants the
Collateral Agent, for the benefit of the Lenders, a security interest in the
Collateral.
3.2 "Collateral" shall mean all of the following property of Debtor:
(a) All now owned and hereafter acquired right, title and
interest of Debtor in, to and in respect of all: Accounts, interests in goods
represented by Accounts, returned, reclaimed or repossessed goods with respect
thereto and rights as an unpaid vendor; contract rights; Chattel Paper;
investment property; General Intangibles (including but not limited to, tax and
duty claims and refunds, registered and unregistered patents, trademarks,
service marks, certificates, copyrights trade names, applications for the
foregoing, trade secrets, goodwill, processes, drawings, blueprints, customer
lists, licenses, whether as licensor or licensee, choses in action and other
claims, and existing and future leasehold interests in equipment, real estate
and fixtures); Documents; Instruments; letters of credit, bankers' acceptances
or guaranties; cash moneys, deposits; securities, bank accounts, deposit
accounts, credits and other property now or hereafter held in any capacity by
Lender, its affiliates or any entity which, at any time, participates in
Lender's financing of Debtor at any other depository or other institution;
(b) All now owned and hereafter acquired right, title and
interest of Debtor in, to and in respect of goods, including, but not limited
to:
(i) All Inventory, wherever located, whether now
owned or hereafter acquired, of whatever kind, nature or description, including
all raw materials, work-in-process, finished goods, and materials to be used or
consumed in Debtor's business; and all names or marks affixed to or to be
affixed thereto for purposes of selling same by the seller, manufacturer, lessor
or licensor thereof and all Inventory which may be returned to Debtor by its
customers or repossessed by Debtor and all of Debtor's right, title and interest
in and to the foregoing (including all of Debtor's rights as a seller of goods);
(ii) All Equipment and fixtures, wherever located,
whether now owned or hereafter acquired, including, without limitation, all
machinery, motor vehicles, furniture and fixtures, and any and all additions,
substitutions, replacements (including spare parts), and accessions thereof and
thereto (including, but not limited to Debtor's rights to acquire any of the
foregoing, whether by exercise of a purchase option or otherwise);
(c) All now owned and hereafter acquired right, title and
interests of Debtor in, to and in respect of any real or other personal property
in or upon which Debtor has or may hereafter have a security interest, lien or
right of setoff;
(d) All present and future books and records relating to any
of the above including, without limitation, all computer programs, printed
output and computer readable data in the possession or control of the Debtor,
any computer service bureau or other third party; and
(e) All products and Proceeds of the foregoing in whatever
form and wherever located, including, without limitation, all insurance proceeds
and all claims against third parties for loss or destruction of or damage to any
of the foregoing.
4. Subordination of Security Interest; Substitution of Collateral.
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(a) The security interest in the Collateral granted by the Debtor to
the Collateral Agent hereunder is and shall at all times be fully subject and
subordinated to the prior liens and security interests granted by the Debtor and
its subsidiaries to all persons, firms or corporations (collectively, "Senior
Lenders") who have extended credit or made loans to Debtor and/or its
subsidiaries under lines of credit, notes payable and term loans (a) as
disclosed in footnotes 10, 11 and 12 to the Notes to Consolidated Financial
Statements of Debtor as at February 28, 2001 and for the fiscal year then ended,
and (b) for any period subsequent to March 1, 2001 through the date hereof, as
disclosed on Schedule B annexed hereto and made a part hereof and any
refinancings or restatements of any such indebtedness (collectively, the "Senior
Debt"), and (c) such other miscellaneous liens and security interests on other
non-material assets and properties as may be determined pursuant to a lien and
judgment search (collectively, the "Existing Liens and Security Interests"). The
Collateral Agent shall have no right to foreclose on the Collateral or transfer
any of the Collateral into the name of the Collateral Agent unless and until
either (i) all Senior Debt shall have been paid in full, or (ii) the Collateral
Agent and the holders of Senior Debt shall have executed and delivered an
intercreditor and subordination agreement in form and content satisfactory to
the holders of such Senior Debt. . If and to the extent required by any Senior
Lender, the Collateral Agent agrees to execute and deliver in favor of such
Senior Lender, such intercreditor and subordination agreements as may be
required to acknowledge that the Lenders' and Collateral Agents rights under
this Security Agreement and in the Collateral are subject to the prior payment
in full of all Senior Debt to the Senor Lender(s), but only to the extent
secured by specified Collateral.
(b) In lieu of the grant of a security interest in the Collateral,
notwithstanding anything to the contrary contained in this Security Agreement,
if the Collateral Agent shall request in writing within twenty (20) days after
the effective date of this Security Agreement (the "Collateral Substitution
Date"), Debtor substitute all of the Collateral referred to in this Agreement by
the pledge to the Collateral Agent of 100% of the capital stock of MAX Systems
Group, Inc. ("MAX"), a wholly owned- subsidiary of Debtor. The Debtor represents
that it currently owns and on the Collateral Substitution Date will own 100% of
the outstanding shares of capital stock of MAX free and clear of all Liens,
pledges or other encumbrances. In the event that the Collateral Agent elects to
substitute Collateral through a pledge of the Capital Stock of MAX, upon
execution and delivery of a pledge agreement between Debtor , as pledgor, and
the Collateral Agent, as pledgee, and delivery to the Collateral Agent of the
100% of the outstanding shares of capital stock of MAX, duly endorsed for
transfer (the "MAX Stock"); all in form and content satisfactory to the
Collateral Agent, this Security Agreement shall terminate and be of no further
force or effect. Failure by Debtor to comply with the provisions of this Section
4(b) shall be deemed to be an Event of Default under the Notes.
5. Perfection of Security Interest.
Unless otherwise terminated in accordance with Section 4(b) above,
within twenty (20) days from the date of this Agreement, Debtor shall execute
and deliver to the Collateral Agent UCC-1 Financing Statements and other
documents required to be filed in Canada ("Financing Statements") relating to
the security interests in Debtor's right, title and interest in and to the
Collateral. Debtor hereby authorizes the Collateral Agent to file such Financing
Statements at the Debtor's expense, in such filing locations as the Collateral
Agent deems appropriate.
6. Distribution on Liquidation.
6.1 If any sum is paid as a liquidating distribution on or with respect
to the Collateral, Debtor shall deliver same to the Collateral Agent to be
applied to the Obligations then due, in accordance with the terms of the Notes.
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6.2 Prior to any Event of Default (as defined herein), Debtor shall be
entitled to exercise all voting power pertaining to any of the Collateral,
provided such exercise is not contrary to the interests of the Lenders and does
not impair the Collateral.
7. Further Action By Debtor; Covenants and Warranties.
7.1 Collateral Agent at all times shall have a perfected security
interest in the Collateral. Subject to the security interests of the Senior
Lenders described herein and other immaterial liens and security interests
(collectively, the "Prior Liens"), Debtor has and will continue to have full
title to the Collateral free from any liens, leases, encumbrances, judgments or
other claims. Debtor will do all acts and things, and will execute and file all
instruments (including, but not limited to, security agreements, financing
statements, continuation statements, etc.) reasonably requested by Collateral
Agent to establish, maintain and continue the perfected security interest of
Collateral Agent in the Collateral, and will promptly on demand, pay all costs
and expenses of filing and recording, including the costs of any searches
reasonably deemed necessary by Collateral Agent from time to time to establish
and determine the validity and the continuing priority of the security interest
of Collateral Agent, and also pay all other claims and charges that, in the
opinion of Collateral Agent, exercised in good faith, is reasonably likely to
materially prejudice, imperil or otherwise affect the Collateral or its security
interest therein.
7.2 Other than with respect to the purchase and sale of inventory or
otherwise in the ordinary course of business, and except for Collateral which
has become obsolete or is of inconsequential in value, Debtor will not sell,
transfer, assign or pledge those items of Collateral (or allow any such items to
be sold, transferred, assigned or pledged), without the prior written consent of
Collateral Agent. Although Proceeds of Collateral are covered by this Security
Agreement, this shall not be construed to mean that Collateral Agent consents to
any sale of the Collateral, except as provided herein.
7.3 Debtor will, at all reasonable times, allow Collateral Agent or its
representatives free and complete access to all of Debtor 's records which in
any way relate to the Collateral, for such inspection and examination as
Collateral Agent reasonably deems necessary; provided, that any such inspection
shall not unreasonably interrupt the customary business operations of Debtor.
7.4 Debtor, at its sole cost and expense, will protect and defend this
Security Agreement, all of the rights of Collateral Agent hereunder, and the
Collateral against the claims and demands of all other parties.
7.5 Debtor will promptly notify Collateral Agent of any levy, distraint
or other seizure by legal process or otherwise of any part of the Collateral,
and of any threatened or filed claims or proceedings that are reasonably likely
to affect or impair any of the rights of Collateral Agent under this Security
Agreement.
7.6 Debtor, at its own expense, will obtain and maintain in force
insurance policies covering losses or damage to those items of Collateral which
constitute physical personal property. The insurance policies to be obtained by
Debtor shall be in form and amounts reasonably acceptable to Collateral Agent.
Debtor shall make the Collateral Agent a loss payee thereon to the extent of its
interest. Collateral Agent is hereby irrevocably (until the Obligations are paid
in full) appointed Debtor's attorney-in-fact to endorse any check or draft that
may be payable to Debtor so that Collateral Agent may collect the proceeds
payable for any loss under such insurance. The proceeds of such insurance, less
any costs and expenses incurred or paid by Collateral Agent in the collection
thereof, shall be applied either toward the cost of the repair or replacement of
the items damaged or destroyed, or on account of any sums secured hereby,
whether or not then due or payable.
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7.7 Collateral Agent may, at its option, and without any obligation to
do so, pay, perform and discharge any and all amounts, costs, expenses and
liabilities herein agreed to be paid or performed by Debtor, upon Debtor's
failure to do so, and all amounts expended by Collateral Agent in so doing shall
become part of the Obligations secured hereby, and shall be immediately due and
payable by Debtor to Collateral Agent upon demand and shall bear interest at 18%
per annum from the dates of such expenditures until paid.
7.8 Upon the request of Collateral Agent, Debtor will furnish within
five (5) days thereafter to Collateral Agent, or to any proposed assignee of
this Security Agreement, a written statement in form reasonably satisfactory to
Collateral Agent, duly acknowledged, certifying the amount of the principal and
interest then owing under the Obligations, whether to its knowledge any claims,
offsets or defenses exist against the Obligations or against this Security
Agreement, or any of the terms and provisions of any other agreement of Debtor
securing the Obligations. In connection with any assignment by Collateral Agent
of this Security Agreement, Debtor hereby agrees to cause the insurance policies
required hereby to be carried by Debtor, if any, to be endorsed in form
satisfactory to Collateral Agent or to such assignee, with loss payable clauses
in favor of such assignee, and to cause such endorsements to be delivered to
Collateral Agent within ten (10) calendar days after request therefor by
Collateral Agent.
7.9 The Debtor will, at its own expense, make, execute, endorse,
acknowledge, file and/or deliver to the Collateral Agent from time to time such
vouchers, invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, reports and
other assurances or instruments and take further steps relating to the
Collateral and other property or rights covered by the security interest hereby
granted, as the Collateral Agent may reasonably require to perfect its security
interest hereunder.
7.10 Except for the Prior Liens, Debtor represents and warrants that it
is the true and lawful exclusive owner of the Collateral, free and clear of any
liens and encumbrances.
7.11 Debtor hereby agrees not to divest itself of any right under the
Collateral absent prior written approval of the Collateral Agent.
8. Power of Attorney.
Debtor hereby irrevocably constitutes and appoints the Collateral Agent
as the true and lawful attorney of Debtor, with full power of substitution, in
the place and stead of Debtor and in the name of Debtor or otherwise, at any
time or times, in the discretion of the Collateral Agent, to take any action and
to execute any instrument or document which the Collateral Agent may deem
necessary or advisable to accomplish the purposes of this Agreement which Debtor
fails to take or fails to execute within five (5) business days of the
Collateral Agent's reasonable request therefor. This power of attorney is
coupled with an interest and is irrevocable.
9. Performance By The Collateral Agent.
If Debtor fails to perform any material covenant, agreement, duty or
obligation of Debtor under this Agreement, the Collateral Agent may, after any
applicable cure period, at any time or times in its discretion, take action to
effect performance of such obligation. All reasonable expenses of the Collateral
Agent incurred in connection with the foregoing authorization shall be payable
by Debtor as provided in Paragraph 13.1 hereof. No discretionary right, remedy
or power granted to the Collateral Agent under any part of this Agreement shall
be deemed to impose any obligation whatsoever on the Collateral Agent with
respect thereto, such rights, remedies and powers being solely for the
protection of the Collateral Agent.
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10. Event of Default.
An event of default ("Event of Default") shall be deemed to have
occurred hereunder upon the occurrence of any event of default as defined in the
Notes or Subscription Agreement. Upon and after any Event of Default, after the
applicable cure period, if any, any or all of the Obligations shall become
immediately due and payable at the option of the Collateral Agent, for the
benefit of the Lenders, and the Collateral Agent may dispose of Collateral as
provided below. A default by Debtor of any of its obligations pursuant to this
Agreement shall be deemed an Event of Default hereunder and an event of default
as defined in the Obligations.
11. Disposition of Collateral.
Upon and after any Event of Default which is then continuing, but
subject at all times to the prior rights of the Senior Lenders in and to the
Collateral:
11.1 The Collateral Agent may exercise its rights with respect to each
and every component of the Collateral, without regard to the existence of any
other security or source of payment for the Obligations. In addition to other
rights and remedies provided for herein or otherwise available to it, the
Collateral Agent shall have all of the rights and remedies of a lender on
default under the Uniform Commercial Code then in effect in the State of New
York.
11.2 If any notice to Debtor of the sale or other disposition of
Collateral is required by then applicable law, five (5) days' prior notice (or,
if longer, the shortest period of time permitted by then applicable law) to
Debtor of the time and place of any public sale of Collateral or of the time
after which any private sale or any other intended disposition is to be made,
shall constitute reasonable notification.
11.3 The Collateral Agent is authorized, at any such sale, if the
Collateral Agent deems it advisable to do so, in order to comply with any
applicable securities laws, to restrict the prospective bidders or purchasers to
persons who will represent and agree, among other things, that they are
purchasing the Collateral for their own account for investment, and not with a
view to the distribution or resale thereof, or otherwise to restrict such sale
in such other manner as the Collateral Agent deems advisable to ensure such
compliance. Sales made subject to such restrictions shall be deemed to have been
made in a commercially reasonable manner.
11.4 All cash proceeds received by the Collateral Agent for the benefit
of the Lenders in respect of any sale, collection or other enforcement or
disposition of Collateral, shall be applied (after deduction of any amounts
payable to the Collateral Agent pursuant to Paragraph 13.1 hereof) against the
Obligations pro rata among the Lenders in proportion to their interests in the
Obligations. Upon payment in full of all Obligations, Debtor shall be entitled
to the return of all Collateral, including cash, which has not been used or
applied toward the payment of Obligations or used or applied to any and all
costs or expenses of the Collateral Agent incurred in connection with the
liquidation of the Collateral (unless another person is legally entitled
thereto). Any assignment of Collateral by the Collateral Agent to Debtor shall
be without representation or warranty of any nature whatsoever and wholly
without recourse. Each Lender may purchase the Collateral and pay for such
purchase by offsetting any sums owed to such Lender by Debtor arising under the
Obligations or any other source.
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12. [Intentionally Deleted]
13. Waiver of Automatic Stay. The Debtor acknowledges and agrees that should a
proceeding under any bankruptcy or insolvency law be commenced by or against the
Debtor, or if any of the Collateral (as defined in this Security Agreement)
should become the subject of any bankruptcy or insolvency proceeding, then the
Collateral Agent should be entitled to, among other relief to which the
Collateral Agent may be entitled under the Note, Security Agreement,
Subscription Agreement and any other agreement to which the Debtor, Lenders or
Collateral Agent are parties, (collectively "Loan Documents") and/or applicable
law, an order from the court granting immediate relief from the automatic stay
pursuant to 11 U.S.C. Section 362 to permit the Collateral Agent to exercise all
of its rights and remedies pursuant to the Loan Documents and/or applicable law.
THE DEBTOR EXPRESSLY WAIVE THE BENEFIT OF THE AUTOMATIC STAY IMPOSED BY 11
U.S.C. SECTION 362. FURTHERMORE, THE DEBTOR EXPRESSLY ACKNOWLEDGES AND AGREES
THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE BANKRUPTCY CODE
OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION, 11 U.S.C. SECTION 105)
SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF
THE COLLATERAL AGENT TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES UNDER THE LOAN
DOCUMENTS AND/OR APPLICABLE LAW. The Debtor hereby consents to any motion for
relief from stay which may be filed by the Collateral Agent in any bankruptcy or
insolvency proceeding initiated by or against the Debtor, and further agrees not
to file any opposition to any motion for relief from stay filed by the
Collateral Agent. The Debtor represents, acknowledges and agrees that this
provision is a specific and material aspect of this Agreement, and that the
Collateral Agent would not agree to the terms of this Agreement if this waiver
were not a part of this Agreement. The Debtor further represents, acknowledges
and agrees that this waiver is knowingly, intelligently and voluntarily made,
that neither the Collateral Agent nor any person acting on behalf of the
Collateral Agent has made any representations to induce this waiver, that the
Debtor has been represented (or has had the opportunity to be represented) in
the signing of this Agreement and in the making of this waiver by independent
legal counsel selected by the Debtor and that the Debtor has had the opportunity
to discuss this waiver with counsel. The Debtor further agrees that any
bankruptcy or insolvency proceeding initiated by the Debtor will only be brought
in the Federal Court within the Southern District of New York.
14. Miscellaneous.
14.1 Expenses. Debtor shall pay to the Collateral Agent, on demand, the
amount of any and all reasonable expenses, including, without limitation,
attorneys' fees, legal expenses and brokers' fees, which the Collateral Agent
may incur in connection with (a) sale, collection or other enforcement or
disposition of Collateral; (b) exercise or enforcement of any the rights,
remedies or powers of the Collateral Agent hereunder or with respect to any or
all of the Obligations; or (c) failure by Debtor to perform and observe any
agreements of Debtor contained herein which are performed by the Collateral
Agent.
14.2 Waivers, Amendment and Remedies. No course of dealing by the
Collateral Agent and no failure by the Collateral Agent to exercise, or delay by
the Collateral Agent in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, and no single or partial exercise thereof shall
preclude any other or further exercise thereof or the exercise of any other
right, remedy or power of the Collateral Agent. No amendment, modification or
waiver of any provision of this Agreement and no consent to any departure by
Debtor therefrom, shall, in any event, be effective unless contained in a
writing signed by the Collateral Agent, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. The rights, remedies and powers of the Collateral Agent, not only
hereunder, but also under any instruments and agreements evidencing or securing
the Obligations and under applicable law are cumulative, and may be exercised by
the Collateral Agent from time to time in such order as the Collateral Agent may
elect.
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14.3 Notices. Any notice or other communications under the provisions
of this Agreement shall be given in writing and delivered to the recipient in
person, by reputable overnight courier or delivery service, by facsimile machine
(receipt conformed) with a copy sent by first class mail on the date of
transmission, or by registered or certified mail, return receipt requested,
directed to its address set forth below (or to any new address of which a party
hereto shall have informed the others by the giving of notice in the manner
provided herein):
To Debtor: Commercial Consolidators Corp.
0000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxx X0X 0X0 Xxxxxx
(000) 000-0000 (Telecopier)
With a copy to: Xxxxxxxxx Xxxxxxx, LLP
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxxx Xxxxx, Esq.
(000) 000-0000 (Telecopier)
To Lenders: To the addresses and telecopier numbers
Set forth on Schedule A hereto
To the Collateral Agent: Xxxxxxx X. Xxxxxxx
c/o Grushko & Xxxxxxx, P.C.
000 Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxx, Xxx Xxxx 00000
(000) 000-0000 (Telecopier)
Any party may change its address by written notice in accordance with this
paragraph.
14.4 Term; Binding Effect. This Agreement shall (a) remain in full
force and effect until payment and satisfaction in full of all of the
Obligations; (b) be binding upon Debtor, and its successors and permitted
assigns; and (c) inure to the benefit of the Collateral Agent, for the benefit
of the Lenders and their respective successors and assigns.
14.5 Captions. The captions of Paragraphs, Articles and Sections in
this Agreement have been included for convenience of reference only, and shall
not define or limit the provisions hereof and have no legal or other
significance whatsoever.
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14.6 Governing Law; Venue; Severability. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without regard to principles of conflicts or choice of law, except to the extent
that the perfection of the security interest granted hereby in respect of any
item of Collateral may be governed by the law of another jurisdiction. Any legal
action or proceeding against the Debtor with respect to this Agreement may be
brought in the courts of the State of New York or of the United States for the
Southern District of New York, and, by execution and delivery of this Agreement,
the Debtor hereby irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts. The
Debtor hereby irrevocably waives any objection which they may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings
arising out of or in connection with this Agreement brought in the aforesaid
courts and hereby further irrevocably waives and agrees not to plead or claim in
any such court that any such action or proceeding brought in any such court has
been brought in an inconvenient forum. If any provision of this Agreement, or
the application thereof to any person or circumstance, is held invalid, such
invalidity shall not affect any other provisions which can be given effect
without the invalid provision or application, and to this end the provisions
hereof shall be severable and the remaining, valid provisions shall remain of
full force and effect.
14.7 Counterparts/Execution. This Agreement may be executed in any
number of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument. This
Agreement may be executed by facsimile signature and delivered by facsimile
transmission.
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IN WITNESS WHEREOF, the undersigned have executed and delivered this
Security Agreement, as of the date first written above.
"DEBTOR" "THE COLLATERAL AGENT"
COMMERCIAL CONSOLIDATORS CORP. XXXXXXX X. XXXXXXX
an Alberta, Canada corporation
By: _____________________________________ ___________________________________
Its: _____________________________________
APPROVED BY "LENDERS":
This Security Agreement may be executed by facsimile signature and delivered by
confirmed facsimile transmission.
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SECURITY AGREEMENT - SCHEDULE A
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LENDER PRINCIPAL NOTE AMOUNT
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TOTAL $750,000.00
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