Exhibit 4.10
SECURITY AGREEMENT
THIS SECURITY AGREEMENT (the "AGREEMENT"), is entered into and made
effective as of June , 2003, by and between PICK-UPS PLUS INC., (the "COMPANY")
▇▇▇▇▇▇ ▇▇▇▇▇ and the BUYER(S) listed on Schedule I attached to the Securities
Purchase Agreement dated the date hereof. (the "SECURED PARTY").
WHEREAS, the Company shall issue and sell to the Secured Party, as
provided in the Securities Purchase Agreement dated the date hereof, and the
Secured Party shall purchase up to One Hundred Eighty Thousand Dollars
($180,000) of five percent (5%) secured convertible debentures (the "CONVERTIBLE
DEBENTURES"), which shall be convertible into shares of the Companys Company's
common stock, par value $.001 (the "COMMON STOCK") (as converted, the
"CONVERSION SHARES"), for a total purchase price of up to One Hundred Eighty
Thousand Dollars ($180,000), in the respective amounts set forth opposite each
Buyer(s) name on Schedule I attached to the Securities Purchase Agreement;
WHEREAS, to induce the Secured Party to enter into the transaction
contemplated by the Securities Purchase Agreement, the Secured Convertible
Debenture, the Registration Rights Agreement, the Irrevocable Transfer Agent
Instructions, and the Escrow Agreement (collectively referred to as the
"TRANSACTION DOCUMENTS"), the Company hereby grants to the Secured Party a
security interest in and to the pledged property identified on EXHIBIT "A"
hereto (collectively referred to as the "Pledged Property") pursuant to the
terms and conditions of this Agreement .
NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, and for other good and valuable consideration, the
adequacy and receipt of which are hereby acknowledged, the parties hereto hereby
agree as follows:
ARTICLE 1.
DEFINITIONS AND INTERPRETATIONS
Section 1.1. RECITALS.
The above recitals are true and correct and are incorporated herein, in
their entirety, by this reference.
Section 1.2. INTERPRETATIONS.
Nothing herein expressed or implied is intended or shall be construed
to confer upon any person other than the Secured Party any right, remedy or
claim under or by reason hereof.
Section 1.3. OBLIGATIONS SECURED.
The obligations secured hereby are any and all obligations of the
Company to the Secured Party, whether oral or written and whether arising
before, on or after the date hereof including, without limitation, those
obligations of the Company to the Secured Party under the Securities Purchase
Agreement, Secured Convertible Debenture, Registration Rights Agreement and
Irrevocable Transfer Agent Instructions, in the principal amounts thereof
outstanding from time to time, and any other amounts payable by or chargeable to
the Company there under or hereunder (collectively, the "OBLIGATIONS").
ARTICLE 2.
PLEDGED COLLATERAL AND ADMINISTRATION OF COLLATERAL
Section 2.1. PLEDGED PROPERTY.
(a) ▇▇▇▇▇▇ ▇▇▇▇▇ hereby pledges to the Secured Party, and
creates in the Secured Party for its benefit, a security interest, for such time
as the Obligations shall remain outstanding, in and to four million (4,000,000)
restricted shares of the Company, which have subsequently been transferred into
the name of the Secured Party as set forth in EXHIBIT "A" attached hereto
(collectively, the "PLEDGED PROPERTY"):
The Pledged Property, as set forth in EXHIBIT "A" attached hereto, and
the products thereof and the proceeds of all such items are hereinafter
collectively referred to as the "PLEDGED COLLATERAL."
(b) Simultaneously with the execution and delivery of this
Agreement, the ▇▇▇▇▇▇ ▇▇▇▇▇ shall make, execute, acknowledge, file, record and
deliver to the Secured Party any documents reasonably requested by the Secured
Party to perfect its security interest in the Pledged Property. Simultaneously
with the execution and delivery of this Agreement, ▇▇▇▇▇▇ ▇▇▇▇▇ shall make,
execute, acknowledge and deliver to the Secured Party such documents and
instruments, including, without limitation, financing statements, certificates,
affidavits and forms as may, in the Secured Party's reasonable judgment, be
necessary to effectuate, complete or perfect, or to continue and preserve, the
security interest of the Secured Party in the Pledged Property, and the Secured
Party shall hold such documents and instruments as secured party, subject to the
terms and conditions contained herein.
Section 2.2 RIGHTS; INTERESTS; ETC.
(a) So long as no Event of Default (as hereinafter defined)
shall have occurred and be continuing:
(i) ▇▇▇▇▇▇ ▇▇▇▇▇ shall not be entitled to exercise
any and all rights pertaining to the Pledged
Property or any part thereof for any purpose; and
(ii) ▇▇▇▇▇▇ ▇▇▇▇▇ shall not be entitled to receive
and retain any and all payments paid or made in
respect of the Pledged Property.
(b) Upon the occurrence and during the continuance of an Event
of Default:
(i) All rights of ▇▇▇▇▇▇ Ellisto exercise the rights
which it would otherwise be entitled to exercise pursuant to Section 2.2(a)(i)
hereof and to receive payments which it would otherwise be authorized to receive
and retain pursuant to Section 2.2(a)(ii) hereof shall be suspended, and all
such rights shall thereupon become vested in the Secured Party who shall
thereupon have the sole right to exercise such rights and to receive and hold as
Pledged
2
Collateral such payments; PROVIDED, HOWEVER, that if the Secured Party shall
become entitled and shall elect to exercise its right to realize on the Pledged
Collateral pursuant to Article V hereof, then all cash sums received by the
Secured Party, or held by Company for the benefit of the Secured Party and paid
over pursuant to Section 2.2(b)(ii) hereof, shall be applied against any
outstanding Obligations; and
(ii) All interest, dividends, income and other
payments and distributions which are received by ▇▇▇▇▇▇ ▇▇▇▇▇ contrary to the
provisions of Section 2.2(b)(i) hereof shall be received in trust for the
benefit of the Secured Party, and shall be forthwith paid over to the Secured
Party; or
(iii) The Secured Party in its sole discretion shall
be authorized to sell any or all of the Pledged Property at public or private
sale in order to recoup all of the outstanding principal plus accrued interest
owed pursuant to the Convertible Debenture as described herein
(c) Each of the following events shall constitute a default
under this Agreement (each an "EVENT OF DEFAULT"):
(i) any default, whether in whole or in part, shall
occur in the payment to the Secured Party of principal, interest or other item
comprising the Obligations as and when due or with respect to any other debt or
obligation of the Company to a party other than the Secured Party;
(ii) any default, whether in whole or in part, shall
occur in the due observance or performance of any obligations or other
covenants, terms or provisions to be performed under this Agreement or the
Transaction Documents;
(iii) the Company shall: (1) make a general
assignment for the benefit of its creditors; (2) apply for or consent to the
appointment of a receiver, trustee, assignee, custodian, sequestrator,
liquidator or similar official for itself or any of its assets and properties;
(3) commence a voluntary case for relief as a debtor under the United States
Bankruptcy Code; (4) file with or otherwise submit to any governmental authority
any petition, answer or other document seeking: (A) reorganization, (B) an
arrangement with creditors or (C) to take advantage of any other present or
future applicable law respecting bankruptcy, reorganization, insolvency,
readjustment of debts, relief of debtors, dissolution or liquidation; (5) file
or otherwise submit any answer or other document admitting or failing to contest
the material allegations of a petition or other document filed or otherwise
submitted against it in any proceeding under any such applicable law, or (6) be
adjudicated a bankrupt or insolvent by a court of competent jurisdiction; or
(iv) any case, proceeding or other action shall be
commenced against the Company for the purpose of effecting, or an order,
judgment or decree shall be entered by any court of competent jurisdiction
approving (in whole or in part) anything specified in Section 2.2(c)(iii)
hereof, or any receiver, trustee, assignee, custodian, sequestrator, liquidator
or other official shall be appointed with respect to the Company, or shall be
appointed to take or shall otherwise acquire possession or control of all or a
substantial part of the assets and
3
properties of the Company, and any of the foregoing shall continue unstayed and
in effect for any period of thirty (30) days.
ARTICLE 3.
ATTORNEY-IN-FACT; PERFORMANCE
Section 3.1. SECURED PARTY APPOINTED ATTORNEY-IN-FACT.
Upon the occurrence of an Event of Default, ▇▇▇▇▇▇ ▇▇▇▇▇ hereby
appoints the Secured Party as its attorney-in-fact, with full authority in the
place and stead of the Company and in the name of ▇▇▇▇▇▇ ▇▇▇▇▇ or otherwise,
from time to time in the Secured Party's discretion to take any action and to
execute any instrument which the Secured Party may reasonably deem necessary to
accomplish the purposes of this Agreement, including, without limitation, to
receive and collect all instruments made payable to ▇▇▇▇▇▇ ▇▇▇▇▇ representing
any payments in respect of the Pledged Collateral or any part thereof and to
give full discharge for the same. The Secured Party may demand, collect, receipt
for, settle, compromise, adjust, ▇▇▇ for, foreclose, or realize on the Pledged
Property as and when the Secured Party may determine. To facilitate collection,
the Secured Party may notify account debtors and obligors on any Pledged
Property or Pledged Collateral to make payments directly to the Secured Party.
Section 3.2. SECURED PARTY MAY PERFORM.
If the Company fails to perform any agreement contained herein, the
Secured Party, at its option, may itself perform, or cause performance of, such
agreement, and the expenses of the Secured Party incurred in connection
therewith shall be included in the Obligations secured hereby and payable by the
Company under Section 8.3.
ARTICLE 4.
REPRESENTATIONS AND WARRANTIES
Section 4.1. AUTHORIZATION; ENFORCEABILITY.
Each of the parties hereto represents and warrants that it has taken
all action necessary to authorize the execution, delivery and performance of
this Agreement and the transactions contemplated hereby; and upon execution and
delivery, this Agreement shall constitute a valid and binding obligation of the
respective party, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors' rights or by the principles
governing the availability of equitable remedies.
Section 4.2. OWNERSHIP OF PLEDGED PROPERTY.
▇▇▇▇▇▇ ▇▇▇▇▇ warrants and represents that it is the legal and
beneficial owner of the Pledged Property free and clear of any lien, security
interest, option or other charge or encumbrance except for the security
interests identified on EXHIBIT A hereto and the security interest created by
this Agreement.
4
ARTICLE 5.
DEFAULT; REMEDIES; SUBSTITUTE COLLATERAL
Section 5.1. DEFAULT AND REMEDIES.
(a) If an Event of Default described in Section 2.2(c)(i) and
(ii) occurs, then in each such case the Secured Party may declare the
Obligations to be due and payable immediately, by a notice in writing to the
Company, and upon any such declaration, the Obligations shall become immediately
due and payable. If an Event of Default described in Sections 2.2(c)(iii) or
(iv) occurs and is continuing for the period set forth therein, then the
Obligations shall automatically become immediately due and payable without
declaration or other act on the part of the Secured Party.
(b) Upon the occurrence of an Event of Default, the Secured
Party shall,: (i) be entitled to receive all distributions with respect to the
Pledged Collateral, (ii) to cause the Pledged Property to be transferred into
the name of the Secured Party or its nominee, (iii) to dispose of the Pledged
Property, and (iv) to realize upon any and all rights in the Pledged Property
then held by the Secured Party.
Section 5.2. METHOD OF REALIZING UPON THE PLEDGED PROPERTY : OTHER
REMEDIES.
Upon the occurrence of an Event of Default, in addition to any rights
and remedies available at law or in equity, the following provisions shall
govern the Secured Party's right to realize upon the Pledged Property:
(a) Any item of the Pledged Property may be sold for cash or
other value in any number of lots at brokers board, public auction or private
sale and may be sold without demand, advertisement or notice (except that the
Secured Party shall give ▇▇▇▇▇▇ ▇▇▇▇▇ ten (10) business days' prior written
notice of the time and place or of the time after which a private sale may be
made (the "SALE NOTICE")), which notice period shall in any event is hereby
agreed to be commercially reasonable. At any sale or sales of the Pledged
Property, the Company may bid for and purchase the whole or any part of the
Pledged Property and, upon compliance with the terms of such sale, may hold,
exploit and dispose of the same without further accountability to the Secured
Party. ▇▇▇▇▇▇ ▇▇▇▇▇ will execute and deliver, or cause to be executed and
delivered, such instruments, documents, assignments, waivers, certificates, and
affidavits and supply or cause to be supplied such further information and take
such further action as the Secured Party reasonably shall require in connection
with any such sale.
(b) Any cash being held by the Secured Party as Pledged
Collateral and all cash proceeds received by the Secured Party in respect of,
sale of, collection from, or other realization upon all or any part of the
Pledged Collateral shall be applied as follows:
(i) to the payment of all amounts due the Secured
Party for the expenses reimbursable to it hereunder
or owed to him pursuant to Section 8.3 hereof;
(ii) to the payment of the Obligations then due and
unpaid.
5
(iii) the balance, if any, to the person or persons
entitled thereto, including, without limitation, the Company.
(c) In addition to all of the rights and remedies which the
Secured Party may have pursuant to this Agreement, the Secured Party shall have
all of the rights and remedies provided by law, including, without limitation,
those under the Uniform Commercial Code.
(d)
(i) If the Company fails to pay such amounts due upon
the occurrence of an Event of Default which is
continuing, then the Secured Party may institute a judicial proceeding for the
collection of the sums so due and unpaid, may prosecute such proceeding to
judgment or final decree and may enforce the same against the Company and
collect the monies adjudged or decreed to be payable in the manner provided by
law out of the property of Company, wherever situated.
(ii) The Company agrees that it shall be liable for
any reasonable fees, expenses and costs incurred by
the Secured Party in connection with enforcement, collection and preservation of
the Transaction Documents, including without limitation, reasonable legal fees
and expenses.
(iii) ▇▇▇▇▇▇ ▇▇▇▇▇ agrees that he shall be liable for
any reasonable fees , expenses and costs incurred by
the Secured Party in connection with enforcement, collection and preservation of
without limitation, reasonable legal fees and expenses, and such amounts shall
be deemed included as Obligations secured hereby and payable as set forth in
Section 8.3 hereof.
Section 5.3. PROOFS OF CLAIM.
In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relating to the Company or the property of the Company
or of such other obligor or its creditors, the Secured Party (irrespective of
whether the Obligations shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Secured Party shall
have made any demand on the Company for the payment of the Obligations), subject
to the rights of Previous Security Holders, shall be entitled and empowered, by
intervention in such proceeding or otherwise:
(i) to file and prove a claim for the whole amount of
the Obligations and to file such other papers or documents as may be necessary
or advisable in order to have the claims of the Secured Party (including any
claim for the reasonable legal fees and expenses and other expenses paid or
incurred by the Secured Party permitted hereunder and of the Secured Party
allowed in such judicial proceeding), and
(ii) to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
the Secured Party to make such payments to the Secured Party and, in the event
6
that the Secured Party shall consent to the making of such payments directed to
the Secured Party, to pay to the Secured Party any amounts for expenses due it
hereunder.
Section 5.4. DUTIES REGARDING PLEDGED COLLATERAL.
The Secured Party shall have no duty as to the collection or protection
of the Pledged Property or any income thereon or as to the preservation of any
rights pertaining thereto, beyond the safe custody and reasonable care of any of
the Pledged Property actually in the Secured Party's possession.
ARTICLE 6.
AFFIRMATIVE COVENANTS
▇▇▇▇▇▇ ▇▇▇▇▇ covenants and agrees that, from the date hereof and until
the Obligations have been fully paid and satisfied, unless the Secured Party
shall consent otherwise in writing (as provided in Section 8.4 hereof):
Section 6.1. EXISTENCE, PROPERTIES, ETC.
▇▇▇▇▇▇ ▇▇▇▇▇ shall do, or cause to be done, all things, or
proceed with due diligence with any actions or courses of action, that may be
reasonably necessary to execute or deliver this Agreement or any other document
delivered in connection herewith, including, without limitation, any UCC-1
Financing Statements required by the Secured Party (which other loan instruments
collectively shall be referred to as the "LOAN INSTRUMENTS") to which it is or
will be a party, or perform any of its obligations hereunder or thereunder.
Section 6.2. DEFENSE OF COLLATERAL, ETC.
▇▇▇▇▇▇ ▇▇▇▇▇ shall defend and enforce its right, title and interest in
and to any part of: (a) the Pledged Property ; and (b) ▇▇▇▇▇▇ ▇▇▇▇▇ shall defend
the Secured Party's right, title and interest in and to each and every part of
the Pledged Property, each against all manner of claims and demands on a timely
basis to the full extent permitted by applicable law.
6.3. NOTICE OF DEFAULT.
▇▇▇▇▇▇ ▇▇▇▇▇ and the Company shall give written notice to the Secured
Party of the occurrence of any default or Event of Default under this Agreement,
the Transaction Documents or any other Loan Instrument or any other agreement of
Company for the payment of money, promptly upon the occurrence thereof.
6.4. NOTICE OF LITIGATION.
▇▇▇▇▇▇ ▇▇▇▇▇ shall give notice, in writing, to the Secured Party of (a)
any actions, suits or proceedings wherein instituted by any persons against the
Pledged Prperty
7
ARTICLE 7.
NEGATIVE COVENANTS
▇▇▇▇▇▇ ▇▇▇▇▇ covenants and agrees that, from the date hereof until the
Obligations have been fully paid and satisfied, he shall not:
Section 7.1. LIENS AND ENCUMBRANCES.
Shall not directly or indirectly make, create, incur, assume or permit
to exist any assignment, transfer, pledge, mortgage, security interest or other
lien or encumbrance of any nature in, to or against any part of the Pledged
Property or offer or agree to do so, or own or acquire or agree to acquire any
asset or property of any character subject to any of the foregoing encumbrances
(including any conditional sale contract or other title retention agreement), or
assign, pledge or in any way transfer or encumber its right to receive any
income or other distribution or proceeds from any part of the Pledged Property
or the Company's capital stock; or enter into any sale-leaseback financing
respecting any part of the Pledged Property as lessee, or cause or assist the
inception or continuation of any of the foregoing.
ARTICLE 8.
MISCELLANEOUS
Section 8.1. NOTICES.
All notices or other communications required or permitted to be given
pursuant to this Agreement shall be in writing and shall be considered as duly
given on: (a) the date of delivery, if delivered in person, by nationally
recognized overnight delivery service or (b) five (5) days after mailing if
mailed from within the continental United States by certified mail, return
receipt requested to the party entitled to receive the same:
If to the Secured Party: ▇▇▇▇▇▇ ▇▇▇▇▇
With a copy to:
8
If to the Company: Pick Ups Plus Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ - ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
With a Copy to: Sichenzia ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ LLP
1065 Avenue of the Americas - 21st Floor
New York, New York 10018
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, Esq.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
If to Secured Party: Cornell Capital Partners, LP
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ -▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇
Portfolio Manager
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
With a Copy to: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - ▇▇▇▇▇ ▇
▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇, Esq.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Any party may change its address by giving notice to the other party
stating its new address. Commencing on the tenth (10th) day after the giving of
such notice, such newly designated address shall be such party's address for the
purpose of all notices or other communications required or permitted to be given
pursuant to this Agreement.
Section 8.2. SEVERABILITY.
If any provision of this Agreement shall be held invalid or
unenforceable, such invalidity or unenforceability shall attach only to such
provision and shall not in any manner affect or render invalid or unenforceable
any other severable provision of this Agreement, and this Agreement shall be
carried out as if any such invalid or unenforceable provision were not contained
herein.
Section 8.3. EXPENSES.
In the event of an Event of Default, ▇▇▇▇▇▇ ▇▇▇▇▇ will pay to the
Secured Party the amount of any and all reasonable expenses, including the
reasonable fees and expenses of its counsel, which the Secured Party may incur
in connection with: (i) the custody or preservation of, or the sale, collection
from, or other realization upon, any of the Pledged Property; (ii) the exercise
or enforcement of any of the rights of the Secured Party hereunder or (iii) the
failure by the Company to perform or observe any of the provisions hereof.
9
Section 8.4. WAIVERS, AMENDMENTS, ETC.
The Secured Party's delay or failure at any time or times hereafter to
require strict performance by Company or ▇▇▇▇▇▇ ▇▇▇▇▇ of any undertakings,
agreements or covenants shall not waiver, affect, or diminish any right of the
Secured Party under this Agreement to demand strict compliance and performance
herewith. Any waiver by the Secured Party of any Event of Default shall not
waive or affect any other Event of Default, whether such Event of Default is
prior or subsequent thereto and whether of the same or a different type. None of
the undertakings, agreements and covenants of the Company or ▇▇▇▇▇▇ ▇▇▇▇▇
contained in this Agreement, and no Event of Default, shall be deemed to have
been waived by the Secured Party, nor may this Agreement be amended, changed or
modified, unless such waiver, amendment, change or modification is evidenced by
an instrument in writing specifying such waiver, amendment, change or
modification and signed by the Secured Party.
Section 8.5. CONTINUING SECURITY INTEREST.
This Agreement shall create a continuing security interest in the
Pledged Property and shall: (i) remain in full force and effect until the
registration statement filed pursuant to the Registration Rights Agreement dated
the date hereof is declared effective by the United States Securities and
Exchange Commission; and (ii) be binding upon ▇▇▇▇▇▇ ▇▇▇▇▇ and his successors
and heirs and (iii) inure to the benefit of the Secured Party and its successors
and assigns. Upon the registration statement bing declared effective by the
United States Securities and Exchange Commission or satisfaction in full of the
Obligations, ▇▇▇▇▇▇ ▇▇▇▇▇ shall be entitled to the return, at its expense, of
such of the Pledged Property as shall not have been sold in accordance with
Section 5.2 hereof or otherwise applied pursuant to the terms hereof.
Section 8.6. INDEPENDENT REPRESENTATION.
Each party hereto acknowledges and agrees that it has received or has
had the opportunity to receive independent legal counsel of its own choice and
that it has been sufficiently apprised of its rights and responsibilities with
regard to the substance of this Agreement.
Section 8.7. APPLICABLE LAW: JURISDICTION.
This Agreement shall be governed by and interpreted
in accordance with the laws of the State of New Jersey without regard to the
principles of conflict of laws. The parties further agree that any action
between them shall be heard in ▇▇▇▇▇▇ County, New Jersey, and expressly consent
to the jurisdiction and venue of the Superior Court of New Jersey, sitting in
▇▇▇▇▇▇ County and the United States District Court for the District of New
Jersey sitting in Newark, New Jersey for the adjudication of any civil action
asserted pursuant to this Paragraph.
Section 8.8. WAIVER OF JURY TRIAL.
AS A FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS
AGREEMENT AND TO MAKE THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY
HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY
WAY TO THIS AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS RELATED TO THIS
TRANSACTION.
Section 8.9. ENTIRE AGREEMENT.
This Agreement constitutes the entire agreement among the parties and
supersedes any prior agreement or understanding among them with respect to the
subject matter hereof.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
11
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.
COMPANY:
PICK-UPS PLUS INC.
By:
Name: ▇▇▇▇▇▇ ▇▇▇▇▇
Title: Chief Financial Officer
▇▇▇▇▇▇ ▇▇▇▇▇
By:_________________________________
SECURED PARTY:
CORNELL CAPITAL PARTNERS, LP
By: Yorkville Advisors, LLC
Its: General Partner
By:_________________________________
Name: ▇▇▇▇ ▇▇▇▇▇▇
Title: Portfolio Manager
12
A-1
EXHIBIT B
DEFINITION OF PLEDGED PROPERTY
For the purpose of securing prompt and complete payment and performance
by the Company of all of the Obligations, the Company unconditionally and
irrevocably hereby grants to the Secured Party a continuing security interest in
and to, and lien upon, the following Pledged Property of the Company:
------------------------------------------------------------------------------
Number of Shares Stock Certificate Number
------------------------------------------------------------------------------
4,000,000 01641
------------------------------------------------------------------------------
A-2