WINWIN GAMING INC
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>v041492_ex10-4.htm
<TEXT>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXECUTIVE
      COPY</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WINWIN
      GAMING, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITY
      AGREEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Security Agreement is entered into as of April&#160;21, 2006 (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Agreement</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      by
      and among WinWin Gaming, Inc., a Delaware corporation (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Borrower</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      the
      parties listed on </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit&#160;A</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      hereto
      (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Secured
      Parties</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      with
      reference to the following facts:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Concurrently
      herewith, Borrower is selling secured convertible notes and warrants pursuant
      to
      the terms of a Secured Convertible Note and Warrant Purchase Agreement dated
      of
      even date herewith (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Purchase
      Agreement</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      by and
      among Borrower and the Secured Parties.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">B.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      an
      inducement to the Secured Parties to enter into the Purchase Agreement and
      to
      acquire the secured convertible promissory notes provided for thereunder (the
      &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      Borrower agreed to secure the repayment of the Notes with a security interest
      in
      certain assets of Borrower.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">C.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      parties hereto desire that the all of the Secured Parties be </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>pari
      passu</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      with one
      another as to the debt represented by the Notes and the security interest
      securing the repayment thereof on the terms and conditions set forth
      herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AGREEMENT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Borrower
      and the Secured Parties hereby agree as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Certain
      Definitions</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      purposes of this Agreement, capitalized terms used herein which are not defined
      herein shall have the meanings set forth in the Purchase Agreement. All terms
      used herein which are defined in Division 1 or Division 9 of the UCC (as defined
      below) shall have the meanings given therein unless otherwise defined in this
      Agreement or the Purchase Agreement; provided, however, that if a term is
      defined in Division 9 of the UCC differently than in another Article of the
      UCC,
      the term has the meaning specified in Division 9. In addition, the following
      terms shall have the following meanings:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Borrower&#8217;s
      Books</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      all of Borrower&#8217;s books and records including ledgers, records indicating,
      summarizing, or evidencing such Borrower&#8217;s properties or assets or liabilities,
      all information relating to Borrower&#8217;s business operations or financial
      condition, and all computer programs, disc or tape files, printouts, runs,
      or
      other computer prepared information, and the equipment containing such
      information. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Collateral</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
shall
      mean the property described on </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
      B</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      annexed
      hereto and made a part hereof to this Agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Copyrights</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      all copyrights and applications for copyright, domestic or foreign, together
      with the underlying works of authorship (including titles), whether or not
      the
      underlying works of authorship have been published and whether said copyrights
      are statutory or arise under the common law, and all other rights and works
      of
      authorship, all rights, claims, and demands in any way relating to any such
      copyrights or works, including royalties and rights to sue for past, present,
      or
      future infringement, and all rights of renewal and extension of copyright,
      including, but not limited to, those described on </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
      C</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      annexed
      hereto and made a part hereof; and the right to sue for past, present and future
      infringements of any of the foregoing. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Debt</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      (a) indebtedness or liability for borrowed money; (b) obligations evidenced
      by
      bonds, debentures, notes, or other similar instruments; (c) obligations for
      the
      deferred purchase price of property or services (including trade obligations);
      (d) obligations as lessee under capital leases; (e) current liabilities in
      respect of unfunded vested benefits under Plans covered by ERISA; (f)
      obligations under letters of credit; (g) obligations under acceptance
      facilities; (h) all contingent obligations to purchase, to provide funds for
      payment, to supply funds to invest in any Person or entity, or otherwise to
      assure a creditor against loss; and (i) obligations secured by any Liens,
      whether or not the obligations have been assumed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Intellectual
      Property Collateral</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      the following properties and assets owned or held by Borrower or in which
      Borrower otherwise has any interest, now existing or hereafter acquired or
      arising: (a) all Patents; (b) all Copyrights; (c) all Trademarks; (d) all trade
      secrets, confidential information, customer lists, license rights, advertising
      materials, operating manuals, methods, processes, know how, sales literature,
      drawings, specifications, blue prints, descriptions, inventions, name plates,
      and catalogs; and (e) all licenses of any Patents, Trademarks or Copyrights;
      and
      (f) the entire goodwill of or associated with the businesses now or hereafter
      conducted by Borrower connected with and symbolized by any of the aforementioned
      properties and assets.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Lien</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means,
      with respect to any asset: (a) any mortgage, lien, charge, security interest,
      or
      encumbrance of any kind in respect of such asset (or any agreement to give
      any
      of the foregoing, whether or not contingent on the occurrence of any future
      event); or (b) any undertaking (whether or not contingent) by a Person to grant
      any mortgage, lien, pledge, charge, security interest, or encumbrance to another
      Person on such asset. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Obligations</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      (a) all obligations of Borrower under the Purchase Agreement and each of the
      Notes, whether for payment of principal, interest (including, without
      limitation, interest accruing after the commencement of any case, proceeding
      or
      other action relating to the bankruptcy, insolvency or reorganization of
      Borrower), fees, breakage costs, indemnities, expenses or otherwise; (b) the
      performance of all obligations of Borrower under the Purchase Agreement and
      each
      of the Notes, whether for payment of principal, interest (including, without
      limitation, interest accruing after the commencement of any case, proceeding
      or
      other action relating to the bankruptcy, insolvency or reorganization of
      Borrower), fees, breakage costs, indemnities, expenses or otherwise; (c) all
      loans, advances, indebtedness, and other obligations owed by Borrower to Secured
      Parties of every description whether now existing or hereafter arising
      (including those owed by Borrower to others and acquired by Secured Parties
      by
      purchase, assignment, or otherwise), whether or not for the payment of money,
      whether or not evidenced by any note or other instrument, whether direct or
      indirect, absolute or contingent, due or to become due, joint or several,
      primary or secondary, liquidated or unliquidated, secured or unsecured, original
      or renewed or extended, whether arising before, during or after the commencement
      of any insolvency proceeding in which Borrower is a debtor, any obligations
      arising pursuant to any letter of credit transactions and any other financial
      accommodations, obligations to perform or forbear from performing acts; (d)
      all
      obligations of Borrower under this Agreement; (e) the repayment of (i) any
      amounts that Secured Parties may advance or spend for the maintenance or
      preservation of the Collateral; and (ii) any other expenditures that Secured
      Parties may make under the provisions of this Agreement or for the benefit
      of
      Borrower; (f) all amounts owed under any modifications, renewals or extensions
      of any of the foregoing obligations; (g) all other amounts now or in the future
      owed by Borrower to Secured Parties whether or not of the same kind or class
      as
      the other obligations owed by Borrower to Secured Parties; and (h) any of the
      foregoing that arises after the filing of a petition by or against Borrower
      under the Bankruptcy Code, even if the obligations do not accrue because of
      the
      automatic stay under Bankruptcy Code &#167;362 or otherwise. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">-2-</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(h)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Patents</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      all patents and patent applications, domestic or foreign, all licenses relating
      to any of the foregoing, and all income and royalties with respect to any
      licenses, all rights to sue for past, present or future infringement thereof,
      all rights arising therefrom and pertaining thereto and all reissues, divisions,
      continuations, renewals, extensions, and continuations in part thereof
      including, but not limited to, those described on </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
      D</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      annexed
      hereto and made a part hereof; and the right to sue for past, present and future
      infringements of any of the foregoing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Permitted
      Liens</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means:
      (i)&#160;Liens imposed by law, such as carriers&#8217;, warehousemen&#8217;s, materialmen&#8217;s
      and mechanics&#8217; liens, or Liens arising out of judgments or awards against
      Borrower with respect to which Borrower at the time shall currently be
      prosecuting an appeal or proceedings for review; (ii)&#160;Liens for taxes not
      yet subject to penalties for nonpayment and Liens for taxes the payment of
      which
      is being contested in good faith and by appropriate proceedings and for which,
      to the extent required by generally accepted accounting principles then in
      effect, proper and adequate book reserves relating thereto are established
      by
      Borrower; (iii)&#160;Liens (a)&#160;upon or in any equipment acquired, licensed,
      leased or held by Borrower to secure the purchase price of such equipment or
      indebtedness incurred solely for the purpose of financing the acquisition of
      such equipment, or (b)&#160;existing on such equipment at the time of its
      acquisition, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>provided</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      that the
      Lien is confined solely to the property so acquired and improvements thereon,
      and the proceeds of such equipment and other equipment financed by the holder
      of
      such Lien; (iv)&#160;Liens consisting of leases or subleases and licenses and
      sublicenses granted to others in the ordinary course of</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Borrower&#8217;s
      business not interfering in any material respect with the business of Borrower
      and any interest or title of a lessor or licensor under any lease or license,
      as
      applicable; (v)&#160;Liens incurred or deposits made in the ordinary course of
      the Borrower&#8217;s business in connection with worker&#8217;s compensation, unemployment
      insurance, social security and other like laws; (vi)&#160;Liens to which the
      holders of a majority of the outstanding principal amount due and owing under
      the Notes (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Majority
      Note Holders</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      have
      expressly consented in writing; and (ix)&#160;Liens incurred in connection with
      the extension, renewal or refinancing of the indebtedness secured by the Liens
      described in clauses&#160;(i) through (iii) hereof provided that any extension,
      renewal or replacement lien shall be limited to the property encumbered by
      the
      existing Lien and the principal amount of the indebtedness being extended,
      renewed or replaced does not increase. </font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(j)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Person</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      an individual, partnership, corporation, limited liability company, business
      trust, joint stock company, trust, unincorporated association, joint venture,
      or
      governmental authority. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(k)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Trademarks</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      all state (including common law), federal and foreign trademarks, service marks,
      and trade names, and applications for registration of such trademarks, service
      marks and trade names, all of the goodwill of the business connected with the
      use of, and symbolized by, each trademark; all licenses relating to any of
      the
      foregoing and all income and royalties with respect to any licenses, whether
      registered or unregistered and wherever registered, all rights to sue for past,
      present, or future infringement or unconsented use thereof, all rights arising
      therefrom and pertaining thereto and all reissues, extensions and renewals
      thereof, including, but not limited to, those described on </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
      E</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      annexed
      hereto and made a part hereof; and the right to sue for past, present and future
      infringements of any of the foregoing.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(l)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>UCC</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
means
      the Uniform Commercial Code as in effect in the State of New York, as the same
      may be amended from time to time.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Security
      Agreement</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.
      </strong></font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Grant</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In
      order to secure the payment, performance and observance of the Obligations
      in
      accordance with the terms thereof, Borrower hereby grants to Secured Parties,
      for the benefit of the Secured Parties, a continuing security interest in,
      and a
      right of set off against, as applicable, all right, title and interest of
      Borrower in all personal property of Borrower, whether now owned or existing
      or
      hereafter acquired or arising and regardless of where located including, without
      limitation, the Collateral.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Relative
      Priorities</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      security interests of the Secured Parties in the Collateral shall rank
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>pari
      passu</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      with one
      another as to all Obligations as defined below. </font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Borrower
      Remains Liable</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Anything herein to the contrary notwithstanding, (i)&#160;Borrower shall remain
      liable under any contracts, agreements and other documents included in the
      Collateral, to the extent set forth therein, to perform all of its duties and
      obligations thereunder to the same extent as if this Agreement had not been
      executed, (ii)&#160;the exercise by the Secured Parties of any of the rights
      hereunder shall not release Borrower from any of its duties or obligations
      under
      such contracts, agreements and other documents included in the Collateral,
      and
      (iii)&#160;no Secured Party shall have any obligation or liability under any
      contracts, agreements and other documents included in the Collateral by reason
      of this Agreement, nor shall any Secured Party be obligated to perform any
      of
      the obligations or duties of Borrower thereunder or to take any action to
      collect or enforce any such contract, agreement or other document included
      in
      the Collateral.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Continuing
      Security Interest</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Borrower agrees that this Agreement shall create a continuing security interest
      in the Collateral which shall remain in effect until the indefeasible payment
      and performance in full of all of the Obligations or the conversion of the
      principal and accrued interest under the Notes into equity securities as
      described in the Notes.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Other
      Actions as to Any and All Collateral</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Borrower further agrees, at the request and option of Secured Parties, to take
      any and all other actions Secured Parties may determine to be necessary or
      useful for the attachment, perfection and priority of, and the ability of
      Secured Parties to enforce, Secured Parties&#8217; security interest in any and all of
      the Collateral, including, without limitation, (a) executing, delivering and,
      where appropriate, filing financing statements and amendments relating thereto
      under the UCC, to the extent, if any, that Borrower&#8217;s signature thereon is
      required therefor; (b) causing Secured Parties&#8217; name to be noted as secured
      party on any certificate of title for a titled good if such notation is a
      condition to attachment, perfection or priority of, or ability of Secured
      Parties to enforce, Secured Parties&#8217; security interest in such Collateral; (c)
      complying with any provision of any statute, regulation or treaty of the United
      States as to any Collateral if compliance with such provision is a condition
      to
      attachment, perfection or priority of, or ability of Secured Parties to enforce,
      Secured Parties&#8217; security interest in such Collateral; (d) obtaining
      governmental and other third party waivers, consents and approvals in form
      and
      substance satisfactory to Secured Parties, including, without limitation, any
      consent of any licensor, lessor or other person obligated on Collateral; (e)
      obtaining waivers from mortgagees and landlords in form and substance
      satisfactory to Secured Parties; and (f) taking all actions under any earlier
      versions of the UCC or under any other law, as reasonably determined by Secured
      Parties to be applicable in any relevant Uniform Commercial Code or other
      jurisdiction, including any foreign jurisdiction.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Right
      to Inspect</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Secured
      Parties (through any of its officers, employees, or agents) shall have the
      right, upon reasonable prior notice, from time to time during Borrower&#8217;s usual
      business hours, to inspect Borrower&#8217;s Books and to make copies thereof and to
      check, test, and appraise the Collateral in order to verify Borrower&#8217;s financial
      condition or the amount, condition of, or any other matter relating to, the
      Collateral.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Discharge
      Liens</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In
      order to protect or perfect any security interest which Secured Parties is
      granted hereunder, Secured Parties may, upon an Event of Default, in its sole
      discretion, discharge any lien or encumbrance or bond or the same, pay any
      insurance, maintain guards, warehousemen, or any personnel to protect the
      Collateral, pay any service bureau, or, obtain any records, and all costs for
      the same shall be added to the Secured Obligations and shall be payable on
      demand.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Borrower&#8217;s
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      Borrower
      hereby represents, warrants and covenants to the Secured Parties
      that:</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Location</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Borrower&#8217;s principal place of business is the address set forth on the signature
      page to this Agreement, and Borrower keeps its records concerning accounts,
      contract rights and other property at that location. Borrower will promptly
      notify the Secured Parties in writing of the establishment of any new place
      of
      business where any of the Collateral is kept. Borrower is a corporation
      organized under the laws of the State of Delaware. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Books
      and Records</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Borrower
      will at all times keep accurate and complete records of the Collateral and
      will
      keep such Collateral insured to the extent similarly situated companies insure
      their assets of a like type or nature. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      <div id="HDR">
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        </div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Ownership
      and Liens</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Borrower has title to, or valid leasehold interests in, all of its properties
      and assets, real and personal, including the Collateral and properties and
      assets and leasehold interests reflected in the financial statements delivered
      to Secured Parties pursuant to the Purchase Agreement (other than any properties
      or assets disposed of in the ordinary course of business), and none of the
      properties and assets, real and personal, including the Collateral owned by
      Borrower and none of its leasehold interests is subject to any Lien, except
      for
      Permitted Liens and Liens set forth in Schedule 1.3 to the Purchase
      Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Other
      Financing Statements</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Other
      than financing statements, security agreements, equipment leases and related
      filings, chattel mortgages, assignments, copyright security agreements or
      collateral assignments, patent or trademark security agreements or collateral
      assignments, fixture filings and other agreements or instruments executed,
      delivered, filed or recorded for the purpose of granting or perfecting any
      Lien
      or executed, delivered, filed or recorded in connection with the Notes
      (collectively, &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financing
      Statements</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      no
      effective Financing Statement naming Borrower as debtor, assignor, grantor,
      mortgagor, pledgor or the like and covering all or any part of the Collateral
      is
      currently on file in any filing or recording office in any jurisdiction, except
      for Financing Statements relating to the Liens set forth in Schedule 1.3 to
      the
      Purchase Agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Notices,
      Reports and Information</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Borrower
      will notify the Secured Parties of any material claim made or asserted against
      the Collateral by any person or entity and of any change in the composition
      of
      the Collateral or other event which could materially adversely affect the value
      of the Collateral or the Secured Parties&#8217; Lien thereon.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Separate
      Obligations and Liens</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Borrower
      acknowledges and agrees that (i)&#160;the Obligations represent separate and
      distinct indebtedness, obligations and liabilities of Borrower to each of the
      Secured Parties, which Borrower is separately obligated to each Secured Party
      to
      pay and perform, in each case regardless of whether or not any indebtedness,
      obligation or liability to any other Secured Party or any other person or
      entity, or any agreement, instrument or guaranty that evidences any such other
      indebtedness, liability or obligation, or any provision thereof, shall for
      any
      reason be or become void, voidable, unenforceable or discharged, whether by
      payment, performance, avoidance or otherwise; (ii)&#160;the Lien that secures
      each of the Secured Parties&#8217; respective Obligations (a)&#160;is separate and
      distinct from any and all other Liens on the Collateral, and (b)&#160;is
      enforceable without regard to whether or not any other Lien shall be or become
      void, voidable or unenforceable or the indebtedness, obligations or liabilities
      secured by any such other Lien shall be discharged, whether by payment,
      performance, avoidance or otherwise. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Other
      Agreements</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Except
      for agreements that the Borrower has entered into with Solidus Networks, Inc.,
      the Borrower is not a party to any indenture, loan, or credit agreement, or
      to
      any lease or other agreement or instrument or subject to any charter or
      corporate restriction which could have a material adverse effect on the
      business, properties, assets, operations, or conditions, financial or otherwise,
      of Borrower, or the ability of Borrower to carry out its obligations under
      this
      Agreement, the Purchase Agreement, or any other agreement by and between Secured
      Parties and Borrower. Borrower is not in default in any respect in the
      performance, observance, or fulfillment of any of the obligations, covenants,
      or
      conditions contained in any agreement or instrument material to its business
      to
      which it is a party. </font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(h)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Powers</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Borrower
      has the right and full power and authority to enter into this Agreement and
      to
      perform its obligations in accordance with the terms of this Agreement, without
      the consent or approval of any other Person, except as already obtained. This
      Agreement is enforceable against Borrower in accordance with its terms, except
      as may be limited by applicable bankruptcy insolvency, moratorium,
      reorganization, or other laws affecting creditor&#8217;s rights and remedies
      generally.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>No
      Violation</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Neither
      the execution, delivery nor performance by Borrower of this Agreement violates
      any provision of law or Borrower&#8217;s Certificate of Incorporation or Bylaws, each
      as amended to date, or results in a breach of or constitutes a default under
      any
      contract, obligation, indenture or other instrument to which Borrower is a
      party
      or by which Borrower may be bound.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(j)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Insurance</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Borrower shall maintain insurance relating to Borrower&#8217;s ownership and use of
      the Collateral in amounts and of a type that are reasonable and customary to
      businesses similar to Borrower&#8217;s. </font></div>
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      Covenants</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Borrower covenants and agrees that, until the indefeasible payment and
      performance in full of the outstanding Obligations, Borrower will not do any
      of
      the following without the prior written consent of the Majority Note Holders,
      unless required to do so pursuant to the provisions of any senior debt existing
      as of the date hereof:</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sell,
      lease, assign, transfer, or otherwise dispose of, any of its now owned or
      hereafter acquired material assets (including, without limitation, shares of
      stock and indebtedness of subsidiaries, accounts, and leasehold interests),
      except: (1) inventory disposed of in the ordinary course of business; (2) the
      sale or other disposition of assets no longer used or useful in the conduct
      of
      its business; or (3) that any subsidiary may sell, lease, assign, or otherwise
      transfer its assets to Borrower;</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Wind
      up,
      liquidate or dissolve itself, reorganize, merge or consolidate with or into,
      or
      convey, sell, assign, transfer, lease, or otherwise dispose of (whether in
      one
      transaction or in a series of transactions) all or substantially all of its
      assets (whether now owned or hereafter acquired) to any Person, or acquire
      all
      of substantially all of the assets or the business of any Person, or permit
      any
      subsidiary to do so, except that (1) any subsidiary may merge into or transfer
      assets to Borrower; and (2) any subsidiary may merge into or consolidate with
      or
      transfer assets to any other subsidiary; </font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Create,
      incur, assume or be or remain liable with respect to any Debt, other than (1)
      Debt of Borrower in favor of Secured Parties arising under any agreement by
      and
      between Borrower and Secured Parties; (2) accounts payable to trade creditors
      for goods or services incurred in the ordinary course of business, as presently
      conducted, and paid within the specified time, unless contested in good faith
      and by appropriate proceedings; (3) Debt of Borrower secured by Permitted Liens;
      and (4) Debt set forth on </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Schedule
      1.3</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of the
      Purchase Agreement; </font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Create,
      incur, assume or suffer to exist any Lien with respect to any of its assets,
      or
      assign or otherwise convey any right to receive income, including the sale
      of
      any accounts, except for Permitted Liens; and</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assume,
      guarantee, endorse, or otherwise be or become directly or contingently
      responsible or liable, (including, but not limited to, an agreement to purchase
      any obligation, stock, assets, goods, or services, or to supply or advance
      any
      funds, assets, goods, or services, or an agreement to maintain or cause such
      Person to maintain a minimum working capital or net worth or otherwise to assure
      the creditors of any Person against loss), for obligations of any Person, except
      guaranties by endorsement of negotiable instruments for deposit or collection
      or
      similar transactions in the ordinary course of business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Financing
      Statements</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Borrower
      authorizes the Secured Parties to file a financing statement describing the
      Collateral. Borrower shall cooperate with Secured Parties in obtaining control
      with respect to Collateral consisting of: (a) deposit accounts; (b) investment
      property; (c) letter of credit rights; and (d) electronic chattel
      paper.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Borrower&#8217;s
      Rights Until Default</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      So long
      as an Event of Default does not exist, Borrower shall have the right to possess
      the Collateral, manage its property, operate its business and sell its inventory
      in the ordinary course of business.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Event
      of Default</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      An Event
      of Default, as defined in the Notes, shall be deemed to be an Event of Default
      hereunder.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Rights
      and Remedies on Event of Default</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
      any
      Event of Default shall have occurred and while such Event of Default is
      continuing, the Majority Note Holders, acting on behalf of the Secured Parties,
      shall have the right to any or all of the Collateral, by any available judicial
      procedure, or without judicial process (provided, however, that it is in
      compliance with the UCC), to exercise any and all rights afforded to a secured
      party under the UCC or other applicable law. Without limiting the generality
      of
      the foregoing, the Majority Note Holders, acting on behalf of the Secured
      Parties, shall have the right to sell or otherwise dispose of the Collateral
      (subject to applicable state and federal securities laws), either at public
      or
      private sale, in lots or in bulk, for cash or for credit, with or without
      warranties or representations, and upon such terms and conditions, all as
      Secured Parties, in their sole discretion (as determined by holders of a
      majority of the outstanding principal amount under the Notes), may deem
      advisable, and Secured Parties shall have the right to purchase all or any
      part
      of the Collateral at any such sale; provided that the Majority Note Holders,
      acting on behalf of the Secured Parties, shall give Borrower ten (10) days
      advance notice of such sale. The proceeds of any such sale, or other Collateral
      disposition shall be applied, first to the expenses of retaking, holding,
      storing, processing and preparing for sale, selling, and the like, and to
      reasonable attorneys&#8217; fees and legal expenses for one attorney representing
      Secured Parties, and then to the Obligations and to the payment of any other
      amounts required by applicable law, after which Secured Parties shall account
      to
      Borrower for any surplus proceeds.</font></div>
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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        </div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      the Secured Parties&#8217; rights and remedies with respect to the Collateral, whether
      established hereby or by any other agreements, instruments or documents or
      by
      law shall be cumulative and may be exercised singly or
      concurrently.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      there
      are insufficient funds to pay in full in cash each of the Notes, funds available
      therefor shall be distributed and paid among the Secured Parties in a manner
      so
      that each Secured Party receives his or its Pro Rata Share (as hereinafter
      defined; provided, however, that the foregoing shall in no way offset the
      conversion of the Notes in accordance with their terms, which Notes may be
      converted without regard to conversion of any other Notes) thereof. For purposes
      hereof, &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pro
      Rata Share</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
shall
      mean, as to any Secured Party, the aggregate unpaid principal amount, plus
      accrued but unpaid interest, under all Notes held by such Secured Party as
      compared to the aggregate unpaid principal amount, plus accrued but unpaid
      interest, under all Notes held by the Secured Parties. If any Secured Party
      receives any payment under or with respect to such Secured Party&#8217;s Notes in
      excess in trust of an amount equal to his or its Pro Rata Share, such Secured
      Party shall be deemed to hold such excess for the benefit of the other Secured
      Parties and shall promptly remit such amount to and among the Secured Parties
      so
      as to ensure all Secured Parties receive their full Pro Rata Share of all cash
      payments, under or with respect to the Notes. </font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Borrower
      hereby assigns, transfers and conveys to Secured Parties, effective upon the
      occurrence and continuance of an Event of Default if Secured Parties so elect,
      and in any event upon the acceleration of the Obligations, all Intellectual
      Property Collateral together with any goodwill associated therewith, all to
      the
      extent necessary to enable Secured Parties to realize on the Collateral and
      any
      successor or assign to enjoy the benefits of the Collateral. This right and
      assignment shall inure to the benefit of all successors, assigns and transferees
      of Secured Parties and its successors, assigns and transferees, whether by
      voluntary conveyance, operation of law, assignment, transfer, foreclosure,
      deed
      in lieu of foreclosure or otherwise. Such right and assignment is and is to
      be
      granted free of charge, without requirement that any monetary payment whatsoever
      (including, without limitation, any royalty or license fee) be made to Borrower
      or any other person by Secured Parties (except that if Secured Parties shall
      receive proceeds from the disposition of any such Collateral, such proceeds
      shall be applied to the Obligations in accordance with the UCC. </font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      the
      exercise by Secured Parties of any power, right, privilege, or remedy pursuant
      to this Agreement which requires any consent, approval, registration,
      qualification, or authorization of any governmental authority, Borrower agrees
      to execute and deliver, or will cause the execution and delivery of, all
      applications, certificates, instruments, assignments, and other documents and
      papers that Secured Parties or any purchaser of the Collateral may be required
      to obtain for such governmental consent, approval, registration, qualification,
      or authorization.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>No
      Waivers by Secured Parties</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
      failure to exercise and no delay in exercising any right, power, or remedy
      hereunder shall impair any right, power, or remedy which Secured Parties may
      have, nor shall any such delay be construed to be a waiver of any of such
      rights, powers, or remedies, or any acquiescence in any breach or default
      hereunder; nor shall any waiver by Secured Parties of any breach or default
      by
      Borrower hereunder be deemed a waiver of any default or breach subsequently
      occurring. All rights and remedies granted to Secured Parties hereunder shall
      remain in full force and effect notwithstanding any single or partial exercise
      of, or any discontinuance of action begun to enforce, any such right or remedy.
      The rights and remedies specified herein are cumulative and not exclusive of
      each other or of any rights or remedies which Secured Parties would otherwise
      have.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Indemnification</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Borrower hereby agrees to indemnify Secured Parties, any affiliate thereof,
      and
      its directors, officers, employees, agents, counsel, and other advisors (each
      an
&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Indemnified
      Person</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      against, and hold each of them harmless from, any and all liabilities,
      obligations, losses, claims, damages, penalties, actions, judgments, suits,
      costs, expenses, or disbursements of any kind or nature whatsoever, including
      the reasonable fees and disbursements of counsel to an Indemnified Person
      (including allocated costs of internal counsel), which may be imposed on,
      incurred by, or asserted against any Indemnified Person, in any way relating
      to
      or arising out of this Agreement or the transactions contemplated hereby or
      any
      action taken or omitted to be taken by it hereunder (the &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Indemnified
      Liabilities</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;);
      provided that Borrower shall not be liable to any Indemnified Person for any
      portion of such Indemnified Liabilities to the extent they are found by a final
      decision of a court of competent jurisdiction to have resulted from such
      Indemnified Person&#8217;s gross negligence or willful misconduct. If and to the
      extent that the foregoing indemnification is for any reason held unenforceable,
      Borrower agrees to make the maximum contribution to the payment and satisfaction
      of each of the Indemnified Liabilities which is permissible under applicable
      law. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Certain
      Waivers</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Borrower waives, to the fullest extent permitted by law, (a) any right of
      redemption with respect to the Collateral, whether before or after sale
      hereunder; (b) all rights, if any, of marshalling of the Collateral or other
      collateral or security for the Obligations; (c) any right to require Secured
      Parties (i) to proceed against any Person; (ii) to exhaust any other collateral
      or security for any of the Obligations; (iii) to pursue any remedy in Secured
      Parties&#8217; power; or (iv) to make or give any presentments, demands for
      performance, notices of nonperformance, protests, notices of protests, or
      notices of dishonor in connection with any of the Collateral; (d) all claims,
      damages, and demands against Secured Parties arising out of the repossession,
      retention, sale, or application of the proceeds of any sale of the Collateral;
      and (e) demand, protest, notice of protest, notice of default or dishonor,
      notice of payment and nonpayment, notice of any default, nonpayment at maturity,
      release, compromise, settlement, extension, or renewal of accounts, documents,
      instruments, chattel paper, and guarantees at any time held by Secured Parties
      on which Borrower may in any way be liable. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>12.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>General
      Provisions</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Amendment
      and Waiver</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Neither
      this Agreement nor any provisions hereof may be changed, waived, discharged
      or
      terminated, nor may any consent to the departure from the terms hereof be given,
      orally (even if supported by new consideration), but only by an instrument
      in
      writing signed by the Majority Note Holders and by Borrower. Any waiver or
      consent so given shall be effective only in the specific instance and for the
      specific purpose for which given.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Action
      by Majority Note Holders</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      All
      action required or permitted to be taken by the Majority Note Holders, shall
      be
      taken by approval, consent, vote or resolution authorized by the holders of
      the
      Notes representing at least a majority of the principal amount of all then
      outstanding Notes.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Notices</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Any
      notice required or permitted under this Agreement shall be given in writing
      and
      in accordance with </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Section&#160;9.6</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of the
      Purchase Agreement (for purposes of which the term &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Purchasers</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
shall
      mean the Secured Parties hereunder), except as otherwise expressly provided
      in
      this Agreement, to a Secured Party&#8217;s address for notice specified on such
      Secured Party&#8217;s signature page hereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Entire
      Agreement</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      This
      Agreement, together with the Purchase Agreement, the Stock Pledge Agreement,
      Investor Rights Agreement, the Notes and the Warrants (as defined in the
      Purchase Agreement), constitutes the entire contract between the Secured Parties
      and Borrower relative to the subject matter hereof. Any previous agreement
      between the Secured Parties and Borrower with respect to the subject matter
      hereof is superceded by this Agreement, the Purchase Agreement, the Stock Pledge
      Agreement, Investor Rights Agreement, the Notes and the Warrants. If and to
      the
      extent of any conflicts between the terms hereof and the provisions in the
      Notes
      regarding the security interest therein granted, the terms of this Agreement
      shall control.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Successors
      and Assigns</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Except
      as otherwise expressly provided in this Agreement, the provisions of this
      Agreement shall inure to the benefit of, and be binding upon, the respective
      successors and assigns of the parties hereto. Nothing in this Agreement, express
      or implied, is intended to confer upon any party other than the parties hereto
      or their respective successors and assigns any rights, remedies, obligations
      or
      liabilities under or by reason of this Agreement, except as expressly provided
      in this Agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Interpretation</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      This
      Agreement and all agreements relating to the subject matter hereof are the
      product of negotiation and preparation by and among each party and its
      respective attorneys, and shall be construed accordingly. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Governing
      Law</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      This
      Agreement and all transactions contemplated hereunder and/or evidenced hereby
      shall be governed by, construed under, and enforced in accordance with the
      internal laws of the State of New York, without regard to its conflicts of
      laws
      principles.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(h)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Choice
      of Venue; Waiver of Right to Jury Trial</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THIS
      AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
      DEEMED MADE, EXECUTED, PERFORMED AND CONSTRUED IN ACCORDANCE WITH AND BE
      GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING
      WITH RESPECT TO THIS AGREEMENT OR ANY OTHER DOCUMENT MAY BE BROUGHT IN THE
      COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
      DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK,
      AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY IRREVOCABLY
      ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
      UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH
      PARTY HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK
      PERSONAL JURISDICTION OVER SUCH PARTY, AND AGREES NOT TO PLEAD OR CLAIM IN
      ANY
      LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER DOCUMENT
      BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS PERSONAL
      JURISDICTION OVER SUCH PARTY. EACH PARTY FURTHER IRREVOCABLY CONSENTS TO THE
      SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION
      OR
      PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
      POSTAGE PREPAID, TO ANY SUCH PARTY AT ITS ADDRESS FOR NOTICES AS PROVIDED
      HEREIN, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH PARTY
      HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER
      IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING
      COMMENCED HEREUNDER OR UNDER ANY OTHER DOCUMENT THAT SUCH SERVICE OF PROCESS
      WAS
      IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF
      THE
      PARTY UNDER THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
      LAW
      OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PARTY IN
      ANY
      OTHER JURISDICTION.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT 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 OR ANY OTHER DOCUMENT BROUGHT IN
      THE
      COURTS REFERRED TO IN CLAUSE (i) ABOVE 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.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 108pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EACH
      OF
      THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL
      BY
      JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
      THIS AGREEMENT, THE OTHER DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY
      OR
      THEREBY.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Counterparts</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      This
      Agreement may be signed in any number of counterparts, each of which shall
      be an
      original, with the same effect as if all signatures were upon the same
      instrument. Delivery of an executed counterpart of the signature page to this
      Agreement by facsimile shall be effective as delivery of a manually executed
      counterpart of this Agreement, and any party delivering such an executed
      counterpart of the signature page to this Agreement by facsimile to any other
      party shall thereafter also promptly deliver a manually executed counterpart
      of
      this Agreement to such other party, provided that the failure to deliver such
      manually executed counterpart shall not affect the validity, enforceability,
      or
      binding effect of this Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(j)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Titles
      and Subtitles</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(k)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Severability</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      In the
      event any one or more of the provisions contained in this Agreement is held
      to
      be invalid, illegal or unenforceable in any respect, then such provision shall
      be ineffective only to the extent of such prohibition or invalidity, and the
      validity, legality, and enforceability of the remaining provisions contained
      herein shall not in any way be affected or impaired thereby.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(l)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Further
      Acts</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Borrower shall, on a continuing basis, make, execute, acknowledge and deliver,
      and file and record in the proper filing and recording places, all such
      Financing Statements and take all such action as may be necessary or advisable
      or may be requested by the Secured Parties to carry out the intent and purposes
      of this Agreement.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      OF THIS PAGE INTENTIONALLY LEFT BLANK]</font></div>
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              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12/E
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