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SECURITY AGREEMENT

Security Agreement

SECURITY AGREEMENT | Document Parties: ORGANIC TO GO FOOD CORP | Inventages Whealth Management Inc | IVC SA | WHealth LP You are currently viewing:
This Security Agreement involves

ORGANIC TO GO FOOD CORP | Inventages Whealth Management Inc | IVC SA | WHealth LP

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Title: SECURITY AGREEMENT
Governing Law: California     Date: 2/11/2009
Industry: Communications Equipment     Law Firm: Loeb Loeb     Sector: Technology

SECURITY AGREEMENT, Parties: organic to go food corp , inventages whealth management inc , ivc sa , whealth lp
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SECURITY AGREEMENT

 

This Security Agreement (this “ Agreement ”) is made as of the ___ day of February, 2009, by and between Organic To Go Food Corporation, a Delaware corporation (the “ Company ” or the “ Securing Party ”), and W.Health L.P., a limited partnership organized under the laws of the Bahamas (the “ Secured Party ”).

 

RECITALS

 

 

A.

The Securing Party and the Secured Party are parties to a Note Purchase Agreement, dated February 11, 2009 (the “ Purchase Agreement ”), pursuant to which the Secured Party shall purchase the Note (as defined in the Purchase Agreement); and

 

 

B.

The parties intend that the Securing Party’s obligations to repay the Note (whether now owned or hereafter purchased by the Secured Party) and any other obligation in favor of Secured Party arising under the Purchase Agreement and the Note be secured by all of the tangible and intangible assets of the Securing Party, and shall be governed by the terms and conditions of this Agreement.

 

AGREEMENT

 

In consideration of the purchase of the Note by the Secured Party and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Grant of Security Interest .

 

(a) To secure the Securing Party’s full and timely performance of the Obligations, the Securing Party hereby grants to the Secured Party a continuing Lien on and security interest (the “ Security Interest ”) in, all of the Securing Party’s right, title and interest in and to all of its personal property and assets (both tangible and intangible), including, without limitation, the following, whether now owned or hereafter acquired and wherever located: (a) all Receivables; (b) all Equipment; (c) all Fixtures; (d) all General Intangibles; (e) all Inventory; (f) all Investment Property; (g) all Deposit Accounts; (h) all Cash; (i) all other Goods of the Securing Party; (j) all Intellectual Property; and (k) all Proceeds of each of the foregoing and all accessions to, and replacements for, each of the foregoing (collectively, the “ Collateral ”).

 

Notwithstanding the foregoing, the grant, assignment and transfer of a Security Interest as provided herein shall not extend to, and the term “Collateral” shall not include:  (a) “intent-to-use” trademarks at all times prior to the first use thereof, whether by the actual use thereof in commerce, the recording of a statement of use with the United States Patent and Trademark Office or otherwise, or (b) any Account, Chattel Paper, General Intangible, or Promissory Note in which Securing Party has any right, title or interest if and to the extent such Account,  Chattel Paper, General Intangible, or Promissory Note includes a provision containing a restriction on assignment such that the creation of a security interest in the right, title or interest of Securing Party therein would be prohibited and would, in and of itself, cause or result in a default thereunder enabling another person party to such Account, Chattel Paper, General Intangible, or Promissory Note to enforce any remedy with respect thereto; provided that the foregoing exclusion shall not apply if (i) such prohibition has been waived or such other person has otherwise consented to the creation hereunder of a security interest in such Account,  Chattel Paper, General Intangible, or Promissory Note or (ii) such prohibition would be rendered ineffective pursuant to Sections 9-406(d), 9-407(a) or 9-408(a) of the UCC, as applicable and as then in effect in any relevant jurisdiction, or any other applicable law (including the Bankruptcy Code) or principles of equity; provided further that immediately upon the ineffectiveness, lapse or termination of any such provision, the Collateral shall include, and the Securing Party shall be deemed to have granted a security interest in, all its rights, title and interests in and to such Account,  Chattel Paper, General Intangible, or Promissory Note as if such provision had never been in effect; and provided further that the foregoing exclusion shall in no way be construed so as to limit, impair or otherwise affect the Secured Party’s unconditional continuing security interest in and to all rights, title and interests of Securing Party in or to any payment obligations or other rights to receive monies due or to become due under any such Account,  Chattel Paper, General Intangible, or Promissory Note and in any such monies and other proceeds of such Account, General Intangible, Contract, Promissory Note or Chattel Paper.

 


 

(b) The following terms shall have the following meanings for purposes of this Agreement:

 

“Account” means any “Account,” as such term is defined in the UCC now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all accounts receivable, book debts, rights to payment and other forms of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments) now owned or hereafter received or acquired by or belonging or owing to the Securing Party whether or not arising out of goods or software sold or services rendered by the Securing Party or from any other transaction, whether or not the same involves the sale of goods or services by the Securing Party and all of the Securing Party’s rights in, to and under all purchase orders or receipts now owned or hereafter acquired by it for goods or services, and all of the Securing Party’s rights to any goods represented by any of the foregoing, and all monies due or to become due to the Securing Party under all purchase orders and contracts for the sale of goods or the performance of services or both by the Securing Party or in connection with any other transaction (whether or not yet earned by performance on the part of the Securing Party), now in existence or hereafter occurring, including, without limitation, the right to receive the proceeds of said purchase orders and contracts, and all collateral security and guarantees of any kind given by any Person with respect to any of the foregoing.

 

Bankruptcy Code ” means Title XI of the United States Code.

 

“Cash” means all cash, money, currency, and liquid funds, wherever held, in which the Securing Party now or hereafter acquires any right, title, or interest.

 

“Chattel Paper” means any “Chattel paper,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest.

 

2


 

“Contracts” means all contracts (including any customer, vendor, supplier, service or maintenance contract), leases, licenses, undertakings, purchase orders, permits, franchise agreements or other agreements (other than any right evidenced by Chattel Paper, Documents or Instruments), whether in written or electronic form, in or under which Securing Party now holds or hereafter acquires any right, title or interest, including, without limitation, with respect to an Account, any agreement relating to the terms of payment or the terms of performance thereof.

 

“Deposit Accounts” means any “Deposit accounts,” as such term is defined in the UCC, and includes any checking account, savings account, or certificate of deposit, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest.

 

“Documents” means any “Documents,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest.

 

“Equipment” means any “Equipment,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest and any and all additions, upgrades, substitutions and replacements of any of the foregoing, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires interest.

 

Event of Default ” shall have the meaning given that term in the Purchase Agreement.

 

“Fixtures” means any “Fixtures,” as such term is defined in the UCC, together with all right, title and interest of the Securing Party in and to all extensions, improvements, betterments, accessions, renewals, substitutes, and replacements of, and all additions and appurtenances to any of the foregoing property, and all conversions of the security constituted thereby, immediately upon any acquisition or release thereof or any such conversion, as the case may be, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest.

 

“General Intangible” means any “General intangible,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all right, title and interest that the Securing Party may now or hereafter have in or under any contracts, rights to payment, payment intangibles, confidential information, interests in partnerships, limited liability companies, corporations, joint ventures and other business associations, permits, goodwill, claims in or under insurance policies, including unearned premiums and premium adjustments, uncertificated securities, deposit, checking and other bank accounts, but shall not include any Intellectual Property (including the right to receive all proceeds and damages therefrom), rights to receive tax refunds and other payments and rights of indemnification.

 

3


 

“Goods” means any “Goods,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest.

 

“Instruments” means any “Instrument,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest.

 

“Intellectual Property” means all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or material for use in connection with the Company’s respective businesses as described in the SEC Reports (as defined in the Purchase Agreement).

 

“Inventory” means any “Inventory,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest, and, in any event, shall include, without limitation, all inventory, goods and other personal property that are held by or on behalf of the Securing Party for sale or lease or are furnished or are to be furnished under a contract of service or that constitute raw materials, work in process or materials used or consumed or to be used or consumed in the Securing Party’s business, or the processing, packaging, promotion, delivery or shipping of the same, and all finished goods, whether or not the same is in transit or in the constructive, actual or exclusive possession of the Securing Party or is held by others for the Securing Party’s account, including, without limitation, all goods covered by purchase orders and contracts with suppliers and all goods billed and held by suppliers and all such property that may be in the possession or custody of any carriers, forwarding agents, truckers, warehousemen, vendors, selling agents or other Persons.

 

“Investment Property” means any “Investment property,” as such term is defined in the UCC, and includes certificated securities, uncertificated securities, money market funds and U.S. Treasury bills or notes, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest.

 

“Letter of Credit Right” means any “Letter of credit right,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest, including any right to payment or performance under any letter of credit.

 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, any lease in the nature of a security interest, and the filing of any financing statement (other than a precautionary financing statement with respect to a lease that is not in the nature of a security interest) under the UCC or comparable law of any jurisdiction.

 

“Obligations” shall mean and include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the Securing Party to the Secured Party of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), direct or indirect, absolute or contingent, due or to become due, now existing or hereafter owed by the Securing Party to the Secured Party, under or in connection with the Purchase Agreement and the Note, including without limitation all interest, fees, charges, expenses, attorneys’ fees and accountants’ fees chargeable to the Securing Party or payable by the Securing Party thereunder.

 

4


 

Permitted Lien ” means: (a) Liens in favor of the Secured Party; (b) any Liens existing on the date of this Agreement and set forth on Exhibit A attached hereto; (c) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings; (d) Liens (i) upon or in any Equipment acquired or held by Securing Party to secure the purchase price of such Equipment or indebtedness (including capital leases) incurred solely for the purpose of financing the acquisition of such Equipment or (ii) existing on such Equipment at the time of its acquisition, provided that the Lien is confined solely to the Equipment so acquired, improvements thereon and the Proceeds of such Equipment; (e) leases or subleases and licenses or sublicenses granted to others in the ordinary course of the Securing Party’s business; (f) any right, title or interest of a licensor under a license; (g) Liens arising from judgments, decrees or attachments; (h) easements, reservations, rights-of-way, restrictions, minor defects or irregularities in title and other similar Liens affecting real property not interfering in any material respect with the ordinary conduct of the business of the Securing Party; (i) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods; (j) Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of setoff or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depository institution; (k) Liens in favor of a depository bank or a securities intermediary pursuant to such depository bank’s or securities intermediary’s customary customer account agreement; provided that any such Liens shall at no time secure any indebtedness or obligations other than customary fees and charges payable to such depository bank or securities intermediary; (l) statutory or common law Liens of landlords and carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and other similar Liens, arising in the ordinary course of business and securing obligations that are not yet delinquent or are being contested in good faith by appropriate proceedings; (m) Liens incurred or deposits made to secure the performance of tenders, bids, leases, statutory or regulatory obligations, surety and appeal bonds, government contracts, performance and return-of-money bonds, and other obligations of like nature, in each case, in the ordinary course of business; (n) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security; and (o) pledges and deposits securing liability for reimbursement or indemnification obligations in respect of letters of credit or bank guarantees for the benefit of landlords.

 

 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, public benefit corporation, other entity or government (whether federal, state, county, city, municipal, local, foreign, or otherwise, including any instrumentality, division, agency, body or department thereof).

 

5


 

“Proceeds” means “Proceeds,” as such term is defined in the UCC and, in any event, shall include, without limitation, (a) any and all Accounts, Chattel Paper, Instruments, cash or other forms of money or currency or other proceeds payable to the Securing Party from time to time in respect of the Collateral, (b) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Securing Party from time to time with respect to any of the Collateral, (c) any and all payments (in any form whatsoever) made or due and payable to the Securing Party from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or any Person acting under color of governmental authority), (d) the proceeds, damages, or recovery based on any claim of the Securing Party against third parties (i) for past, present or future infringement of any copyright, patent or patent license or (ii) for past, present or future infringement or dilution of any trademark or trademark license or for injury to the goodwill associated with any trademark, trademark registration or trademark licensed under any trademark license and (e) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral.

 

“Receivables” means all of the Securing Party’s Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, and letters of credit and Letter of Credit Rights.

 

“Supporting Obligation” means any “Supporting obligation,” as such term is defined in the UCC, now owned or hereafter acquired by the Securing Party or in which the Securing Party now holds or hereafter acquires any interest.

 

“UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of Delaware; provided , that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, the Secured Party’s Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of Delaware, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect, from time to time, in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.

 

Unless otherwise defined herein, all capitalized terms used herein and defined in the Purchase Agreement shall have the respective meaning given to those terms in the Purchase Agreement, and the terms that are defined in the UCC and used herein shall have the meanings given to them in the UCC.

 

2. Representations and Warranties .   The Securing Party hereby represents and warrants to the Secured Party that:

 

(a) Ownership of Collateral .   The Securing Party is the legal and beneficial owner of the Collateral (or, in the case of after-acquired Collateral, at the time the Securing Party acquires rights in the Collateral, will be the legal and beneficial owner thereof).  Except for Permitted Liens, the Securing Party has rights in or the power to transfer the Collateral free and clear of any Lien, security interest or encumbrance.

 

6


 

(b) Valid Security Interest .   The Security Interest granted pursuant to this Agreement will constitute a valid and continuing perfected security interest in favor of the Secured Party in the Collateral for which perfection is governed by the UCC or filing with the United States Copyright Office or United States Patent and Trademark Office.  The Security Interest will be prior to all other Liens on the Collateral except for Permitted Liens.

 

(c) Organization and Good Standing .   The Securing Party has been duly incorporated, and is validly existing and in good standing, under the laws of the State of Delaware.

 

(d) Receivables . Each Receivable is genuine and enforceable against the parties obligated to pay the same free from any right of rescission, defense, setoff or discount.

 

(e) Insurance .   Each insurance policy maintained by the Securing Party is validly existing and is in full force and effect.  The Securing Party is not in default under the provisions of any insurance policy, and there are no facts which, with the giving of notice or


 
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