Filed by Automated Filing Services Inc. (604) 609-0244 - Mistral Ventures, Inc. - Exhibit 10.3






SECURITY AGREEMENT 

THIS AGREEMENT is executed on September 7, 2007 between
CYPHEREDGE TECHNOLOGIES, INC. a Delaware company (hereinafter called the
"Borrower"), and MISTRAL VENTURES, INC., a Nevada corporation (hereinafter
called the "Lender"). 

FOR VALUABLE CONSIDERATION, the Borrower hereby grants
to Lender a security interest in all of the Borrower's right, title and interest
in and to all of the Borrower's personal property and assets including without
limitation the following property, including without limitation any and all
additions, accessions and substitutions thereto or therefor, whether now held or
hereafter acquired (hereinafter called the "Collateral"): (a) accounts; (b)
instruments; (c) documents; (d) chattel paper; (e) supporting obligations; (f)
letter of credit rights; (g) equipment; (h) fixtures; (i) general intangibles;
(j) inventory; (k) investment property; (l) deposit accounts; (m) cash, money,
currency, and liquid funds, wherever held; (n) goods; (o) intellectual property;
and (p) all proceeds of each of the foregoing (the "Proceeds"), to secure
payment and performance of all of the Borrower's present or future debts or
obligations to the Lender, whether absolute or contingent (hereafter referred to
as "Debt"). Unless otherwise defined, words used herein have the meanings given
them in the Delaware Uniform Commercial Code. 

THE BORROWER REPRESENTS, WARRANTS AND AGREES: 

	1. 	
      The Borrower will immediately pay:

	 	 	 
		(a) 	
      any Debt when due;

	 	 	 
		(b) 	
      the Lender's costs of collecting the Debt, of protecting,
      insuring or realizing on Collateral, and any expenditure of the Lender
      pursuant hereto, including attorneys' fees and expenses, with interest at
      the rate of 10% per annum from the date of expenditure; and

	 	 	 
		(c) 	
      any deficiency after realization of Collateral.

	 	 	 
	2. 	
      The Borrower will use the proceeds of any loan that
      becomes Debt hereunder for general corporate purposes subject to approval
      by Lender, which approval shall not be unreasonably withheld or
      delayed.

	 	 	 
	3. 	
      As to all Collateral in the Borrower's possession (unless
      specifically otherwise agreed to by the Lender in writing), the Borrower
      will:

	 	 	 
		(a) 	
      have, or has, possession of the Collateral at the
      location disclosed to the Lender and will not remove the Collateral from
      the location;

	 	 	 
		(b) 	
      keep the Collateral separate and identifiable;

	 	 	 
		(c) 	
      maintain the Collateral in good and saleable condition,
      repair it if necessary, and otherwise deal with the Collateral in all such
      ways as are considered good practice by owners of like property, use it
      lawfully and only as permitted by insurance policies, and permit the
      Lender to inspect the Collateral at any reasonable time; and

	 	 	 
		(d) 	
      not sell, contract to sell, lease, encumber or transfer
      the Collateral (other than inventory Collateral) until the Debt has been
      paid, even though the Lender has a security interest in proceeds of such
      Collateral.








	4. 	
      As to Collateral which is inventory and accounts, the
      Borrower:

	 	 	 
		(a) 	
      may, until notice from the Lender, sell, lease or
      otherwise dispose of inventory Collateral in the ordinary course of
      business only, and collect the cash proceeds thereof;

	 	 	 
		(b) 	
      will, upon notice from the Lender, deposit all cash
      proceeds as received in a demand deposit account with the Lender,
      containing only such proceeds and deliver statements identifying units of
      inventory disposed of, accounts which gave rise to proceeds, and all
      acquisitions and returns of inventory as required by the Lender;

	 	 	 
		(c) 	
      will receive in trust, schedule on forms satisfactory to
      the Lender and deliver to the Lender all non-cash proceeds other than
      inventory received in trade; and

	 	 	 
		(d) 	
      if not in default, may obtain release of the Lender's
      interest in individual units of inventory upon request, therefore, payment
      to the Lender of the release price of such units shown on any Collateral
      schedule supplementary hereto, and compliance herewith as to proceeds
      thereof.

	 	 	 
	5. 	
      As to Collateral which are accounts, chattel paper,
      general intangibles and proceeds described in 4(c) above, the Borrower
      warrants, represents and agrees:

	 	 	 
		(a) 	
      all such Collateral is genuine, enforceable in accordance
      with its terms, free from default, prepayment, defense and conditions
      precedent (except as disclosed to and accepted by the Lender in writing),
      and is supported by consecutively numbered invoices to, or rights against,
      the debtors thereon; and the Borrower will supply the Lender with
      duplicate invoices or other evidence of the Borrower's rights on the
      Lender's request;

	 	 	 
		(b) 	
      all persons appearing to be obligated on such Collateral
      have authority and capacity to contract;

	 	 	 
		(c) 	
      all chattel paper is in compliance with law as to form,
      content and manner of preparation and execution and has been properly
      registered, recorded, and/or filed to protect the Borrower's interest
      thereunder;

	 	 	 
		(d) 	
      if an account debtor shall also be indebted to the
      Borrower on another obligation, any payment made by him not specifically
      designated to be applied on any particular obligation shall be considered
      to be a payment on the account in which the Lender has a security
      interest; and should any remittance include a payment not on an account,
      it shall be delivered to the Lender and, if no event of default has
      occurred, the Lender shall pay the Borrower the amount of such payment;
      and

	 	 	 
		(e) 	
      the Borrower agrees not to compromise, settle or adjust
      any account or renew or extend the time of payment thereof without the
      Lender's prior written consent.

	 	 	 
	6. 	
      The Borrower owns all Collateral absolutely, and no other
      person has or claims any interest in any Collateral, except that, as
      disclosed to and accepted by the Lender in writing, a third party has an
      existing first priority security interest in the Collateral to secure
      obligations outstanding and incurred in the future, and subject to the
      foregoing the Borrower will defend any proceeding which may affect title
      to or the Lender's security interest in any Collateral, and will indemnify
      and hold the Lender free and harmless from all costs and expenses of the
      Lender's defense.



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	7. 	
      The Borrower will pay when due all existing or future
      charges, liens or encumbrances on and all taxes and assessments now or
      hereafter imposed on or affecting the Collateral and, if the Collateral is
      in the Borrower's possession, the realty on which the Collateral is
      located.

	 	 	 
	8. 	
      The Borrower will insure the Collateral with the Lender
      as a loss payee in form and amounts with companies, and against risks and
      liability satisfactory to the Lender, and hereby assigns such policies to
      the Lender, agrees to deliver them to the Lender at the Lender's request,
      and authorizes the Lender to make any claim thereunder, to cancel the
      insurance on the Borrower's default, and to receive payment of and endorse
      any instrument in payment of any loss or return premium. If the Borrower
      should fail to deliver the required policy or policies to the Lender, the
      Lender may, at the Borrower's cost and expense, without any duty to do so,
      get and pay for insurance naming as the insured, at the Lender's option,
      either both the Borrower and the Lender, or only the Lender, and the cost
      thereof shall be secured by this Agreement, and shall be repayable as
      provided in Paragraph 1 above.

	 	 	 
	9. 	
      The Borrower will give the Lender any information it
      reasonably requires. All information at any time supplied to the Lender by
      the Borrower (including, but not limited to, the value and condition of
      Collateral, financial statements, financing statements, and statements
      made in documentary Collateral) is correct and complete, and the Borrower
      will notify the Lender of any adverse change in such information. The
      Borrower will promptly notify the Lender of any change of the Borrower's
      residence, chief executive office or mailing address.

	 	 	 
	10. 	
      The Lender is irrevocably appointed the Borrower's
      attorney-in-fact to do any act which the Borrower is obligated hereby to
      do, to exercise such rights as the Borrower may exercise, to use such
      equipment as the Borrower might use, to enter the Borrower's premises to
      give notice of the Lender's security interest, and to collect Collateral
      and proceeds and to execute and file in the Borrower's name any financing
      statements and amendments thereto required to perfect the Lender's
      security interest hereunder, all to protect and preserve the Collateral
      and the Lender's rights hereunder. The Lender may:

	 	 	 
		(a) 	
      endorse, collect and receive delivery or payment of
      instruments and documents constituting Collateral;

	 	 	 
		(b) 	
      make extension agreements with respect to or affecting
      Collateral, exchange it for other Collateral, release persons liable
      thereon or take security for the payment thereof, and compromise disputes
      in connection therewith; and

	 	 	 
		(c) 	
      use or operate Collateral for the purpose of preserving
      Collateral or its value and for preserving or liquidating
    Collateral.

	 	 	 
	11. 	
      Until the Debt shall have been paid or performed in full,
      the Lender's rights shall continue even if the Debt is outlawed. The
      Borrower waives:

	 	 	 
		(a) 	
      any right to require the Lender to pursue any other
      remedy;

	 	 	 
		(b) 	
      presentment, protest and notice of protest, demand and
      notice of non-payment, demand or performance, notice of sale, and
      advertisement of sale;

	 	 	 
		(c) 	
      any right to the benefit of or to direct the application
      of any Collateral until the Debt shall have been paid;
  and



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	 	(d) 	
      any right of subrogation to the Lender until Debt shall
      have been paid or performed in full.




	12. 	
      Upon default, at the Lender's option, without demand or
      notice, all or any part of the Debt shall immediately become due. The
      Lender shall have all rights given by law, and may sell, in one or more
      sales, Collateral in any county. The Lender may purchase at such sale.
      Sales for cash or on credit to a wholesaler, retailer or user of the
      Collateral, or at public or private auction, are all to be considered
      commercially reasonable. The Lender may require the Borrower to assemble
      the Collateral and make it available to the Lender at the entrance to the
      location of the Collateral, or a place designated by the Lender. Defaults
      shall include:

	 	 	 
		(a) 	
      the Borrower's failure to pay or perform this or any
      agreement with the Lender or breach of any warranty herein, or the
      Borrower's failure to pay or perform any agreement with the
  Lender;

	 	 	 
		(b) 	
      any change in the Borrower's financial condition which in
      the Lender's judgment impairs the prospect of the Borrower's payment or
      performance;

	 	 	 
		(c) 	
      any actual or reasonably anticipated deterioration of the
      Collateral or in the market price thereof which causes it, in the Lender's
      judgment, to become unsatisfactory as security;

	 	 	 
		(d) 	
      any levy or seizure against the Borrower or any of the
      Collateral;

	 	 	 
		(e) 	
      death, termination of business, assignment for creditors,
      insolvency, appointment of receiver, or the filing of any petition under
      bankruptcy or debtor's relief laws of, by or against the Borrower or any
      guarantor of the Debt; or

	 	 	 
		(f) 	
      any warranty or representation which is false or is
      believed in good faith by the Lender to be false.

	 	 	 
	13. 	
      The Lender's acceptance of partial or delinquent payments
      or the failure of the Lender to exercise any right or remedy shall not
      waive any obligation of the Borrower or right of the Lender to modify this
      Agreement, or waive any other similar default.

	 	 	 
	14. 	
      This Agreement benefits the Lender's successors and
      assigns and binds the Borrower's successors and assigns. This Agreement
      contains the entire security agreement between the Lender and the
      Borrower. The Borrower will execute any additional agreements, assignments
      or documents reasonably required by the Lender to carry this Agreement
      into effect.

	 	 	 
	15. 	
      THIS AGREEMENT AND THE VALIDITY AND ENFORCEABILITY HEREOF
      SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE
      LAWS OF THE STATE OF NEW YORK `WITHOUT GIVING EFFECT TO CONFLICT OF LAWS
      RULES OR CHOICE OF LAWS RULES THEREOF. EACH PARTY AGREES THAT ALL LEGAL
      PROCEEDINGS CONCERNING THE INTERPRETATIONS, ENFORCEMENT AND DEFENSE OF THE
      TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BROUGHT AGAINST A
      PARTY HERETO OR ITS RESPECTIVE AFFILIATES, DIRECTORS, OFFICERS,
      SHAREHOLDERS, EMPLOYEES OR AGENTS) SHALL BE COMMENCED IN THE STATE AND
      FEDERAL COURTS SITTING IN THE COUNTY OF NEW YORK, CITY AND STATE OF NEW
      YORK (THE "NEW YORK



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      COURTS"). EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO
      THE EXCLUSIVE JURISDICTION OF THE NEW YORK COURTS FOR THE ADJUDICATION OF
      ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION
      CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE
      ENFORCEMENT OF ANY TERM OF THIS AGREEMENT), AND HEREBY IRREVOCABLY WAIVES,
      AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT
      IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF THE NEW YORK COURTS OR
      THAT SUCH NEW YORK COURTS ARE IMPROPER OR AN INCONVENIENT VENUE FOR SUCH
      PROCEEDING. The Borrower agrees that service of process may be
      accomplished by any means authorized by New York law.

	 	 
	16. 	
      To the extent that the Borrower acquires any trademarks,
      service marks, trade names and service names and/or the goodwill
      associated therewith, copyrights, patents and/or patent applications
      (collectively "Intellectual Property"), the Borrower shall give prompt
      notice thereof to the Lender and shall take any and all actions requested
      from time to time by the Lender to perfect the Borrower's interest in such
      Intellectual Property and to perfect the Lender's first priority interest
      therein.



IN WITNESS WHEREOF, this Agreement has been executed by the
parties as of the day and year first above written. 

	CYPHEREDGE TECHNOLOGIES, INC.
    	 	MISTRAL VENTURES, INC. 
	  	  	 	 	  
	  	  	 	 	  
	Per: 	/s/ James
      Linkous 	 	Per:	/s/ John
      Xinos 
	  	James Linkous, President and CEO 	 	 	John Xinos, President and CEO 


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