Document:

EXECUTION VERSION

                               PLEDGE AGREEMENT

            PLEDGE AGREEMENT (this "AGREEMENT"), dated as of June 14, 2006, made
by each  entity  listed as a  pledgor  on the  signature  pages  hereto  (each a
"PLEDGOR" and collectively,  the "PLEDGORS"),  in favor of Smithfield  Fiduciary
LLC, in its capacity as  collateral  agent (in such  capacity,  the  "COLLATERAL
AGENT") for the Buyers referred to below.

                             W I T N E S S E T H:
                             - - - - - - - - - -

            WHEREAS, American United Global, Inc. (the "COMPANY") and each party
listed  as a  "Buyer"  on the  Schedule  of Buyers  attached  to the  Securities
Purchase Agreement referred to below (collectively, the "BUYERS") are parties to
that certain Securities Purchase  Agreement,  dated as of even date herewith (as
amended,  restated or  otherwise  modified  from time to time,  the  "SECURITIES
PURCHASE  AGREEMENT"),  pursuant to which the Company shall be required to sell,
and the Buyers shall purchase or have the right to purchase,  the Notes referred
to below;

            WHEREAS,  certain of the Pledgors (the  "GUARANTORS")  have executed
and delivered a Guaranty dated the date hereof (the  "GUARANTY") in favor of the
Collateral  Agent for the benefit of themselves and the Buyers,  with respect to
the Company's  obligations under the Securities  Purchase  Agreement,  the Notes
referred to below and the Transaction Documents referred to below; and

            WHEREAS, it is a condition precedent to the Buyers entering into the
Securities  Purchase  Agreement  that  the  Pledgors  shall  have  executed  and
delivered to the Collateral  Agent for the benefit of itself and the Buyers this
Agreement  to secure  all of the  Company's  obligations  under  the  Securities
Purchase  Agreement,  the "Notes" issued pursuant  thereto (as such Notes may be
amended,  restated,  replaced  or  otherwise  modified  from  time  to  time  in
accordance with the terms thereof,  collectively, the "NOTES"), the "Transaction
Documents" (as defined in the Securities  Purchase  Agreement,  the "TRANSACTION
DOCUMENTS") and the Guarantors' obligations under the Guaranty;

            WHEREAS,  the Company and each of the Guarantors shall have executed
and delivered to the Collateral Agent, for the benefit of itself and the Buyers,
a Security  Agreement,  dated as of the date hereof (the "SECURITY  AGREEMENT"),
granting  the  Collateral  Agent a first  priority  perfected  lien in all their
personal property;

            WHEREAS,  the Pledgors  are mutually  dependent on each other in the
conduct of their  respective  businesses  as an integrated  operation,  with the
credit  needed from time to time by each Pledgor  often being  provided  through
financing  obtained  by the  other  Pledgors  and the  ability  to  obtain  such
financing being dependent on the successful operations of all of the Pledgors as
a whole; and

            WHEREAS,  each Pledgor has determined  that the execution,  delivery
and performance of this Agreement directly benefits, and is in the best interest
of, such Pledgor.
<PAGE>

            NOW, THEREFORE,  in consideration of the premises and the agreements
herein  and in  order to  induce  the  Collateral  Agent to  perform  under  the
Securities Purchase Agreement,  each Pledgor agrees with the Collateral Agent as
follows:

      SECTION 1. Definitions and Rules of Interpretation.

            (a)  Definitions.  Reference  is  made  to the  Securities  Purchase
Agreement and the Notes for a statement of terms thereof. All terms used in this
Agreement which are defined in the Securities Purchase Agreement or in Article 8
or Article 9 of the  Uniform  Commercial  Code as in effect from time to time in
the State of New York (the "CODE") and which are not  otherwise  defined  herein
shall have the same meanings herein as set forth therein;  provided,  that terms
used herein  which are defined in the Code as in effect in the State of New York
on the date hereof shall continue to have the same meaning  notwithstanding  any
replacement  or  amendment of such statute  except as the  Collateral  Agent may
otherwise  determine.  In the event  that any such term is  defined  in both the
Securities  Purchase  Agreement and the Code, the definition of such term in the
Securities Purchase Agreement shall control.

                                      -2-
<PAGE>

            (b) Rules of Interpretation.  Except as otherwise expressly provided
in  this  Agreement,  the  following  rules  of  interpretation  apply  to  this
Agreement:  (i) the  singular  includes  the plural and the plural  includes the
singular;  (ii) "or" and "any" are not exclusive  and "include" and  "including"
are not limiting;  (iii) a reference to any agreement or other contract includes
permitted  supplements  and  amendments;  (iv) a reference to a law includes any
amendment  or  modification  to such  law and any  rules or  regulations  issued
thereunder;  (v) a reference to a person  includes its permitted  successors and
assigns; and (vi) a reference in this Agreement to an Article,  Section,  Annex,
Exhibit or Schedule is to the Article,  Section,  Annex,  Exhibit or Schedule of
this Agreement.

      SECTION 2. Pledge and Grant of Security Interest.  As collateral  security
for all of the  Obligations  (as  defined  in  Section  3  hereof),  each of the
Pledgors  hereby  pledges  and  assigns  and  grants to the  Collateral  Agent a
continuing security interest in, and Lien on, all of such Pledgor's right, title
and interest in and to the following (collectively, the "PLEDGED COLLATERAL"):

            (a) all present, as set forth in Schedule I, and all future,  issued
and  outstanding  shares  of  capital  stock,  or  other  equity  or  investment
securities of, or partnership,  membership,  or joint venture interests in, each
Subsidiary,  whether now owned or hereafter acquired by such Pledgor and whether
or not evidenced or represented by any stock certificate,  certificated security
or other  instrument,  together with the certificates  representing  such equity
interests,  all options and other rights,  contractual or otherwise,  in respect
thereof and all dividends, distributions, cash, instruments, investment property
and any other  property  (including,  but not limited to, any stock dividend and
any  distribution  in connection with a stock split) from time to time received,
receivable or otherwise  distributed in respect of or in exchange for any or all
of the foregoing and all cash and noncash  proceeds thereof  (collectively,  the
"PLEDGED SHARES");

            (b)  all  present  and  future  increases,  profits,   combinations,
reclassifications,  and  substitutes  and  replacements  for  all or part of the
foregoing Collateral heretofore described;

            (c) all investment property,  financial assets, securities,  capital
stock,  other equity  interests,  stock options and commodity  contracts of such
Pledgor, all notes,  debentures,  bonds,  promissory notes or other evidences of
indebtedness  payable  or owing to such  Pledgor,  and all other  assets  now or
hereafter received or receivable with respect to the foregoing;

            (d) all  securities  entitlements  of such Pledgor in any and all of
the foregoing; and

            (e) all proceeds  (including proceeds of proceeds) of any and all of
the foregoing;

in each case,  whether  now owned or  hereafter  acquired  by such  Pledgor  and
howsoever  its  interest  therein  may arise or appear  (whether  by  ownership,
security interest, Lien, claim or otherwise).

      SECTION 3. Security for Obligations.  The security interest created hereby
in the Pledged Collateral  constitutes continuing collateral security for all of
the  following  obligations,  whether now  existing or hereafter  incurred  (the
"OBLIGATIONS"):

            (a) the  payment by the  Company,  as and when due and  payable  (by
scheduled maturity, required prepayment,  acceleration, demand or otherwise), of
all amounts from time to time owing by it in respect of the Securities  Purchase
Agreement,  the Notes and the other Transaction Documents,  and (ii) the payment
by each of the  Guarantors,  as and  when  due and  payable  of all  "Guaranteed
Obligations" under (as defined in) the Guaranty,  including, without limitation,
(A) all principal of and interest on the Notes (including,  without  limitation,
all interest that accrues after the commencement of any bankruptcy proceeding of
any Pledgor,  whether or not the payment of such interest is unenforceable or is
not allowable due to the existence of such bankruptcy  proceeding),  and (B) all
fees,  commissions,  expense  reimbursements,  indemnifications  and  all  other
amounts due or to become due under any of the Transaction Documents; and

            (b) the due performance and observance by each Pledgor of all of its
other  obligations  from  time  to  time  existing  in  respect  of  any  of the
Transaction Documents for so long as the Notes are outstanding.

SECTION 4.  Delivery of the Pledged Collateral.

            (a) All certificates currently representing the Pledged Shares shall
be delivered to the  Collateral  Agent on or prior to the execution and delivery
of this Agreement.  All other  promissory  notes,  certificates  and instruments
constituting  Pledged  Collateral from time to time or required to be pledged to
the  Collateral  Agent pursuant to the terms of this Agreement or the Securities
Purchase  Agreement  (the  "ADDITIONAL  COLLATERAL")  shall be  delivered to the
Collateral  Agent  promptly  upon receipt  thereof by or on behalf of any of the
Pledgors. All such promissory notes,  certificates and instruments shall be held
by the Collateral  Agent pursuant hereto and shall be delivered in suitable form
for transfer by delivery or shall be accompanied by duly executed instruments of
transfer or assignment or undated  stock powers  executed in blank,  all in form
and substance  reasonably  satisfactory to the Collateral  Agent. If any Pledged
Collateral  consists  of  uncertificated  securities,   unless  the  immediately
following  sentence  is  applicable  thereto,   the  Pledgors  shall  cause  the
Collateral  Agent (or its designated  custodian,  nominee or other  designee) to
become the registered holder thereof, or cause each issuer of such securities to
agree that it will comply with  instructions  originated by the Collateral Agent
(or its designated  custodian,  nominee or other  designee) with respect to such
securities  without further consent by the Pledgors.  If any Pledged  Collateral
consists of securities entitlements, the Pledgors shall transfer such securities
entitlements to the Collateral  Agent (or its designated  custodian,  nominee or
other designee) or cause the applicable securities intermediary to agree that it
will comply with  entitlement  orders by the Collateral Agent (or its designated
custodian, nominee or other designee) without further consent by the Pledgors.

                                      -3-
<PAGE>

            (b)  Promptly  upon the  receipt by any  Pledgor  of any  Additional
Collateral, a Pledge Amendment,  duly executed by such Pledgor, in substantially
the form of Annex I hereto (a "PLEDGE  AMENDMENT"),  shall be  delivered  to the
Collateral Agent, in respect of the Additional  Collateral which is or are to be
pledged pursuant to this Agreement and the Securities Purchase Agreement,  which
Pledge  Amendment  shall  from and after  delivery  thereof  constitute  part of
Schedules I and II hereto.  Each Pledgor hereby  authorizes the Collateral Agent
to attach each Pledge Amendment to this Agreement and agrees that all promissory
notes,  certificates or instruments listed on any Pledge Amendment shall for all
purposes  hereunder  constitute  Pledged  Collateral  and such Pledgor  shall be
deemed upon delivery thereof to have made the representations and warranties set
forth in Section 5 with respect to such Additional Collateral.

            (c) If any Pledgor shall receive,  by virtue of such Pledgor's being
or having been an owner of any  Pledged  Collateral,  any (i) stock  certificate
(including, without limitation, any certificate representing a stock dividend or
distribution   in  connection   with  any  increase  or  reduction  of  capital,
reclassification,  merger, consolidation, sale of assets, combination of shares,
stock split, spin-off or split-off),  promissory note or other instrument,  (ii)
option or right,  whether as an addition  to,  substitution  for, or in exchange
for, any Pledged  Collateral,  or  otherwise,  (iii)  dividends  payable in cash
(except such  dividends  permitted  to be retained by such  Pledgor  pursuant to
Section  7  hereof)  or in  securities  or  other  property  or (iv)  dividends,
distributions,  cash,  instruments,  investment  property and other  property in
connection  with a partial or total  liquidation or dissolution or in connection
with a reduction of capital,  capital surplus or paid-in  surplus,  such Pledgor
shall  receive such stock  certificate,  promissory  note,  instrument,  option,
right, payment or distribution in trust for the benefit of the Collateral Agent,
shall  segregate it from such  Pledgor's  other  property  and shall  deliver it
forthwith to the Collateral Agent in the exact form received, with any necessary
endorsement  and/or  appropriate stock powers duly executed in blank, to be held
by the Collateral Agent as Pledged Collateral and as further collateral security
for the Obligations.

                                      -4-
<PAGE>

      SECTION 5.  Representations  and  Warranties.  Each  Pledgor  jointly  and
severally represents and warrants as follows:

            (a) Each Pledgor (i) is a corporation,  limited liability company or
limited partnership duly organized,  validly existing and in good standing under
the laws of the  state or  jurisdiction  of its  organization,  and (ii) has all
requisite power and authority to execute, deliver and perform this Agreement.

            (b) The execution,  delivery and performance by each Pledgor of this
Agreement (i) have been duly authorized by all necessary action, (ii) do not and
will not  contravene  its charter or bylaws,  its limited  liability  company or
operating agreement or its certificate of partnership or partnership  agreement,
as applicable,  or any applicable law or any contractual  restriction binding on
or affecting it or any of its  properties,  and (iii) do not and will not result
in or  require  the  creation  of any Lien  upon or with  respect  to any of its
properties other than pursuant to this Agreement.

            (c) The issuers of the Pledged Shares set forth in Schedule I hereto
are the Pledgors'  only  Subsidiaries  existing on the date hereof.  The Pledged
Shares  have  been duly  authorized  and  validly  issued,  are  fully  paid and
nonassessable  and the holders thereof are not entitled to any preemptive  first
refusal or other  similar  rights.  Except as noted in  Schedule  I hereto,  the
Pledged  Shares   constitute  100%  of  the  issued  shares  of  capital  stock,
partnership interests or membership or other equity interests, as applicable, of
the Subsidiaries. All other shares of stock constituting Pledged Collateral will
be,  when  issued,   duly  authorized  and  validly   issued,   fully  paid  and
nonassessable.

            (d) The promissory  notes currently  evidencing the Pledged Debt, if
any,  have been,  and all other  promissory  notes from time to time  evidencing
Pledged Debt,  when executed and  delivered,  will have been,  duly  authorized,
executed and delivered by the respective makers thereof, and all such promissory
notes are or will be, as the case may be, legal,  valid and binding  obligations
of such  makers,  enforceable  against  such  makers in  accordance  with  their
respective terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws.

            (e)  The  Pledgors  are and  will  be at all  times  the  legal  and
beneficial owners of the Pledged Collateral free and clear of any Lien, security
interest, option or other charge or encumbrance except for the security interest
and Lien created by this Agreement or any Permitted Liens.

            (f) The  exercise by the  Collateral  Agent of any of its rights and
remedies  hereunder will not contravene any law or any  contractual  restriction
binding on or affecting any Pledgor or any of the  properties of any Pledgor and
will not result in or require  the  creation of any Lien,  security  interest or
other charge or encumbrance upon or with respect to any of the properties of any
Pledgor  other  than  pursuant  to  this  Agreement  and the  other  Transaction
Documents.

                                      -5-
<PAGE>

            (g) No  authorization  or approval or other action by, and no notice
to or filing with, any governmental authority is required to be obtained or made
by any  Pledgor  for (i) the due  execution,  delivery  and  performance  by any
Pledgor of this Agreement,  (ii) the grant by any Pledgor, or the perfection, of
the  security  interest and Lien  purported to be created  hereby in the Pledged
Collateral  or (iii) the exercise by the  Collateral  Agent of any of its rights
and remedies hereunder, except as may be required in connection with any sale of
any Pledged  Collateral  by laws  affecting  the offering and sale of securities
generally.

            (h) This  Agreement  creates a valid  security  interest and Lien in
favor of the  Collateral  Agent in the Pledged  Collateral,  as security for the
Obligations.  The Collateral  Agent's having  possession of the promissory notes
evidencing Pledged Collateral,  the certificates representing the Pledged Shares
and all other certificates, instruments and cash constituting Pledged Collateral
from time to time results in the perfection of such security  interest and Lien.
Such  security  interest  and Lien is, or in the case of Pledged  Collateral  in
which any of the  Pledgors  obtains  rights  after the date  hereof,  will be, a
perfected  Lien.  All action  necessary or desirable to perfect and protect such
security  interest  and Lien has been  duly  taken,  except  for the  Collateral
Agent's having  possession of  certificates,  instruments and cash  constituting
Pledged Collateral after the date hereof.

      SECTION  6.  Covenants  as to  the  Pledged  Collateral.  So  long  as any
Obligations shall remain  outstanding and the Securities  Purchase Agreement and
the other  Transaction  Documents shall not have been  terminated,  each Pledgor
will, unless the Collateral Agent shall otherwise consent in writing:

            (a) keep adequate  records  concerning  the Pledged  Collateral  and
permit the Collateral Agent, or any designees or representatives  thereof at any
time or from time to time to examine and make copies of and abstracts  from such
records;

            (b) at the Pledgors' joint and several expense,  promptly deliver to
the  Collateral  Agent  a  copy  of  each  material  notice  or  other  material
communication received by any Pledgor in respect of the Pledged Collateral;

            (c)  at  the  Pledgors'  joint  and  several  expense,   defend  the
Collateral  Agent's  right,  title and  security  interest in and to the Pledged
Collateral against the claims of any Person;

            (d) at the Pledgors' joint and several expense, at any time and from
time to time, promptly execute and deliver all further instruments and documents
and take all  further  action that may be  necessary  or  desirable  or that the
Collateral Agent may reasonably request in order to (i) perfect and protect,  or
maintain  the  perfection  of, the security  interest  and Lien  purported to be
created  hereby,  (ii) enable the  Collateral  Agent to exercise and enforce its
rights and  remedies  hereunder  in respect of the Pledged  Collateral  or (iii)
otherwise effect the purposes of this Agreement,  including, without limitation,
delivering to the Collateral Agent irrevocable proxies in respect of the Pledged
Collateral;

            (e) not sell, assign (by operation of law or otherwise), exchange or
otherwise  dispose of any Pledged  Collateral or any interest  therein except as
expressly permitted by the Securities Purchase Agreement;

                                      -6-
<PAGE>

            (f) not create or suffer to exist any Lien,  upon or with respect to
any Pledged  Collateral  except for the Lien created hereby or for any Permitted
Lien;

            (g) not make or consent to any  amendment or other  modification  or
waiver with  respect to any Pledged  Collateral  or enter into any  agreement or
permit to exist any  restriction  with respect to any Pledged  Collateral  other
than pursuant to the Transaction Documents;

            (h)  except  as  expressly  permitted  by  the  Securities  Purchase
Agreement,  not permit the issuance of (i) any additional shares of any class of
capital stock,  partnership  interests,  member interests or other equity of any
Subsidiary, (ii) any securities convertible voluntarily by the holder thereof or
automatically  upon the occurrence or  non-occurrence  of any event or condition
into,  or  exchangeable  for,  any such  shares  of  capital  stock or (iii) any
warrants,  options,  contracts  or other  commitments  entitling  any  Person to
purchase or otherwise acquire any such shares of capital stock;

            (i) not issue any stock certificate,  certificated security or other
instrument to evidence or represent any shares of capital stock, any partnership
interest or membership interest described in Schedule I hereto; and

            (j) not take or fail to take any  action  which  would in any manner
impair  the  validity  or  enforceability  of the  Collateral  Agent's  security
interest in and Lien on any Pledged Collateral.

      SECTION 7.  Voting  Rights,  Dividends,  Etc.  in  Respect of the  Pledged
Collateral.

            (a) So long as no Event of  Default  (as  defined  in the Notes) (an
"EVENT OF DEFAULT") shall have occurred and be continuing:

                  (i) each  Pledgor  may  exercise  any and all voting and other
consensual  rights  pertaining  to any  Pledged  Collateral  for any purpose not
inconsistent with the terms of this Agreement, the Securities Purchase Agreement
or the other Transaction Documents;  provided, however, that (A) no Pledgor will
exercise or refrain from  exercising any such right,  as the case may be, if the
Collateral Agent gives it notice that, in the Collateral Agent's judgment,  such
action (or inaction) is reasonably  likely to have a Material Adverse Effect and
(B) each Pledgor will give the Collateral Agent at least five (5) Business Days'
notice  of the  manner in which it  intends  to  exercise,  or the  reasons  for
refraining from exercising,  any such right which is reasonably likely to have a
Material Adverse Effect;

                  (ii)  the   Pledgors  may  receive  and  retain  any  and  all
dividends,  interest  or other  distributions  paid in  respect  of the  Pledged
Collateral  to the  extent  permitted  by  the  Securities  Purchase  Agreement;
provided,  however,  that any and all (A) dividends and interest paid or payable
other than in cash in respect of, and instruments  and other property  received,
receivable  or  otherwise  distributed  in respect of or in  exchange  for,  any
Pledged  Collateral,  (B) dividends and other  distributions  paid or payable in
cash in respect of any Pledged  Collateral in connection with a partial or total
liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid-in surplus, and (C) cash paid, payable or otherwise  distributed
in redemption of, or in exchange for, any Pledged Collateral,  together with any
dividend,  distribution,  interest  or other  payment  which at the time of such
dividend,  distribution,  interest  or other  payment was not  permitted  by the
Securities Purchase Agreement, shall be, and shall forthwith be delivered to the
Collateral Agent to hold as, Pledged Collateral and shall, if received by any of
the  Pledgors,  be received in trust for the  benefit of the  Collateral  Agent,
shall be segregated from the other property or funds of the Pledgors,  and shall
be forthwith  delivered to the Collateral  Agent in the exact form received with
any  necessary  indorsement  and/or  appropriate  stock powers duly  executed in
blank, to be held by the Collateral  Agent as Pledged  Collateral and as further
collateral security for the Obligations; and

                                      -7-
<PAGE>

                  (iii) the Collateral  Agent will execute and deliver (or cause
to  be  executed  and  delivered)  to a  Pledgor  all  such  proxies  and  other
instruments as such Pledgor may  reasonably  request for the purpose of enabling
such  Pledgor to exercise  the voting and other  rights  which it is entitled to
exercise  pursuant  to  paragraph  (i) of this  Section  7(a) and to receive the
dividends, distributions,  interest and other payments which it is authorized to
receive and retain  pursuant to  paragraph  (ii) of this Section  7(a),  in each
case,  to the extent that the  Collateral  Agent has  possession of such Pledged
Collateral.

            (b) Upon the  occurrence  and during the  continuance of an Event of
Default:

                  (i) all  rights of each  Pledgor  to  exercise  the voting and
other  consensual  rights  which it would  otherwise  be  entitled  to  exercise
pursuant to paragraph  (i) of  subsection  (a) of this Section 7, and to receive
the  dividends,  distributions,  interest  and  other  payments  which  it would
otherwise be  authorized  to receive and retain  pursuant to  paragraph  (ii) of
subsection  (a) of this  Section  7,  shall  cease,  and all such  rights  shall
thereupon  become vested in the Collateral  Agent which shall thereupon have the
sole right to exercise  such voting and other  consensual  rights and to receive
and hold as Pledged Collateral such dividends, distributions, interest and other
payments;

                  (ii) without  limiting the  generality of the  foregoing,  the
Collateral  Agent may at its option  exercise any and all rights of  conversion,
exchange,  subscription or any other rights, privileges or options pertaining to
any  of the  Pledged  Collateral  as if it  were  the  absolute  owner  thereof,
including, without limitation, the right to exchange, in its discretion, any and
all of the Pledged  Collateral upon the merger,  consolidation,  reorganization,
recapitalization  or other adjustment of any issuer of the Pledged Collateral or
upon  the  exercise  by any  issuer  of the  Pledged  Collateral  of any  right,
privilege or option  pertaining  to any Pledged  Collateral,  and, in connection
therewith, to deposit and deliver any and all of the Pledged Collateral with any
committee,  depository, transfer Collateral Agent, registrar or other designated
Collateral Agent upon such terms and conditions as it may determine; and

                  (iii)  all  dividends,   distributions,   interest  and  other
payments  which are  received  by any  Pledgor  contrary  to the  provisions  of
paragraph (i) of this Section 7(b) shall be received in trust for the benefit of
the Collateral Agent, shall be segregated from other funds of such Pledgor,  and
shall be forthwith  paid over to the Collateral  Agent as Pledged  Collateral in
the exact form received with any necessary  indorsement and/or appropriate stock
powers duly  executed in blank,  to be held by the  Collateral  Agent as Pledged
Collateral and as further collateral security for the Obligations.

                                      -8-
<PAGE>

      SECTION 8. Additional Provisions Concerning the Pledged Collateral.

            (a) Each Pledgor hereby (i) authorizes the Collateral  Agent to file
one or more  financing  or  continuation  statements,  and  amendments  thereto,
relating to the Pledged Collateral,  without the signature of such Pledgor where
permitted  by law,  (ii)  ratifies  such  authorization  to the extent  that the
Collateral  Agent has filed any such financing or  continuation  statements,  or
amendments  thereto,  without the  signature of such  Pledgor  prior to the date
hereof and (iii)  authorizes  the  Collateral  Agent to execute any  agreements,
instruments  or  other  documents  in  such  Pledgor's  name  and to  file  such
agreements,  instruments  or other  documents  that are related to the  security
interest  and Lien of the  Collateral  Agent  in the  Pledged  Collateral  or as
provided  under  Article  8 or  Article 9 of the UCC in any  appropriate  filing
office.

            (b) Each Pledgor hereby irrevocably appoints the Collateral Agent as
its  attorney-in-fact  and proxy, with full authority in the place and stead and
in its name or otherwise, from time to time in the Collateral Agent's discretion
to take any action and to execute any instrument  which the Collateral Agent may
deem  necessary  or  advisable  to  accomplish  the  purposes of this  Agreement
(subject to the rights of such Pledgor under  Section 7(a)  hereof),  including,
without limitation, to receive, indorse and collect all instruments made payable
to  such  Pledgor   representing   any  dividend,   interest  payment  or  other
distribution in respect of any Pledged Collateral and to give full discharge for
the same.  This power is coupled with an interest and is  irrevocable  until the
termination of this Agreement in accordance with Section 13(e) hereof.

            (c) If any Pledgor  fails to perform  any  agreement  or  obligation
contained herein, the Collateral Agent itself may perform,  or cause performance
of, such  agreement  or  obligation,  and the expenses of the  Collateral  Agent
incurred in connection  therewith shall be jointly and severally  payable by the
Pledgors  pursuant  to Section  10 hereof  and shall be  secured by the  Pledged
Collateral.

            (d) Other than the  exercise of  reasonable  care to assure the safe
custody of the Pledged  Collateral  while held hereunder,  the Collateral  Agent
shall have no duty or liability to preserve rights pertaining  thereto and shall
be relieved of all  responsibility  for the Pledged Collateral upon surrendering
it or tendering  surrender of it to any of the Pledgors.  The  Collateral  Agent
shall  be  deemed  to  have  exercised   reasonable  care  in  the  custody  and
preservation  of the  Pledged  Collateral  in  its  possession  if  the  Pledged
Collateral  is  accorded  treatment   substantially  equal  to  that  which  the
Collateral  Agent  accords  its own  property,  it  being  understood  that  the
Collateral  Agent shall not have  responsibility  for (i) ascertaining or taking
action with respect to calls,  conversions,  exchanges,  maturities,  tenders or
other matters relating to any Pledged Collateral,  whether or not the Collateral
Agent has or is deemed to have  knowledge  of such  matters,  or (ii) taking any
necessary  steps to preserve  rights  against any  parties  with  respect to any
Pledged Collateral.

                                      -9-
<PAGE>

            (e) The powers  conferred  on the  Collateral  Agent  hereunder  are
solely to protect its  interest in the Pledged  Collateral  and shall not impose
any duty upon it to exercise  any such  powers,  except as required by the Code.
Except for the safe custody of any Pledged  Collateral in its possession and the
accounting for monies actually  received by it hereunder,  the Collateral  Agent
shall  have no duty as to any  Pledged  Collateral  or as to the  taking  of any
necessary  steps to preserve  rights  against  prior parties or any other rights
pertaining to any Pledged Collateral, except as requires by the Code.

            (f) Upon the occurrence and during the  continuation  of any Default
or Event of Default,  the Collateral Agent may at any time in its discretion (i)
without  notice  to the  Pledgors,  transfer  or  register  in the  name  of the
Collateral  Agent or any of its nominees  any or all of the Pledged  Collateral,
subject only to the revocable  rights of the Pledgors under Section 7(a) hereof,
and (ii) exchange  certificates or instruments  constituting  Pledged Collateral
for certificates or instruments of smaller or larger denominations.

      SECTION 9.  Remedies  Upon  Default.  If any Event of  Default  shall have
occurred and be continuing:

            (a) The  Collateral  Agent may  exercise  in respect of the  Pledged
Collateral,  in addition to other  rights and  remedies  provided  for herein or
otherwise  available to it, all of the rights and remedies of a secured party on
default  under the Code then in  effect  in the State of New York;  and  without
limiting the  generality of the foregoing and without notice except as specified
below, sell the Pledged Collateral or any part thereof in one or more parcels at
public or private sale, at any exchange or broker's board or elsewhere,  at such
price or  prices  and on such  other  terms  as the  Collateral  Agent  may deem
commercially  reasonable.  The Pledgors agree that, to the extent notice of sale
shall be required by law, at least ten (10) days'  notice to any of the Pledgors
of the time and place of any  public  sale or the time after  which any  private
sale is to be made shall  constitute  reasonable  notification.  The  Collateral
Agent shall not be obligated to make any sale of Pledged  Collateral  regardless
of notice of sale having been given. The Collateral Agent may adjourn any public
or private  sale from time to time by  announcement  at the time and place fixed
therefor,  and such sale may,  without further  notice,  be made at the time and
place to which it was so adjourned.

            (b) Each Pledgor recognizes that it may be impracticable to effect a
public  sale of all or any part of the  Pledged  Shares or any other  securities
constituting  Pledged  Collateral and that the Collateral Agent may,  therefore,
determine  to  make  one or more  private  sales  of any  such  securities  to a
restricted  group of  purchasers  who will be  obligated  to agree,  among other
things,  to acquire such securities for its own account,  for investment and not
with a view to the  distribution  or resale thereof.  Each Pledgor  acknowledges
that any such private  sale may be at prices and on terms less  favorable to the
seller  than the prices and other  terms  which  might have been  obtained  at a
public sale and,  notwithstanding the foregoing,  agrees that such private sales
shall be deemed to have been made in a commercially  reasonable  manner and that
the  Collateral  Agent  shall  have no  obligation  to  delay  sale of any  such
securities  for the  period  of time  necessary  to  permit  the  issuer of such
securities to register such  securities for public sale under the Securities Act
of 1933, as amended (the "SECURITIES  ACT").  Each Pledgor further  acknowledges
and agrees that any offer to sell such  securities  which has been (i)  publicly
advertised on a bona fide basis in a newspaper or other  publication  of general
circulation in the financial community of New York, New York (to the extent that
such  an  offer  may be so  advertised  without  prior  registration  under  the
Securities Act) or (ii) made privately in the manner described above to not less
than  fifteen  (15) bona  fide  offerees  shall be  deemed to  involve a "public
disposition"  for the purposes of Section 9-610 of the Code (or any successor or
similar,  applicable  statutory provision) as then in effect in the State of New
York,  notwithstanding  that such sale may not  constitute  a "public  offering"
under the Securities Act, and that the Collateral  Agent may, in such event, bid
for the purchase of such securities.

                                      -10-
<PAGE>

            (c) Any cash held by the Collateral Agent as Pledged  Collateral and
all cash proceeds  received by the  Collateral  Agent in respect of any sale of,
collection  from,  or other  realization  upon,  all or any part of the  Pledged
Collateral  may,  in the  discretion  of the  Collateral  Agent,  be held by the
Collateral  Agent as  collateral  for,  and/or  then or at any  time  thereafter
applied (after payment of any amounts  payable to the Collateral  Agent pursuant
to Section 10 hereof) in whole or in part by the Collateral  Agent against,  all
or any part of the Obligations in such order as the Collateral Agent shall elect
consistent with the provisions of the Securities Purchase Agreement.

            (d) In the event that the proceeds of any such sale,  collection  or
realization are insufficient to pay all amounts to which the Collateral Agent is
legally  entitled,  the Pledgors  shall be jointly and severally  liable for the
deficiency,  together with interest thereon at the highest rate specified in the
Securities  Purchase Agreement for interest on overdue principal thereof or such
other  rate as shall be fixed by  applicable  law,  together  with the  costs of
collection and the reasonable fees, costs and expenses of any attorneys employed
by the Collateral Agent to collect such deficiency.

      SECTION 10. Indemnity and Expenses.

            (a) Each of the Pledgors,  jointly and  severally,  hereby agrees to
indemnify and hold the  Collateral  Agent (and all of its  officers,  directors,
employees, attorneys, consultants) harmless from and against any and all claims,
damages, losses, liabilities,  obligations,  penalties, fees, costs and expenses
(including,  without  limitation,  reasonable  legal fees and  disbursements  of
counsel)  to the extent  that they arise out of or  otherwise  result  from this
Agreement (including, without limitation, enforcement of this Agreement), except
claims,  losses or liabilities  arising or resulting directly from such Person's
gross  negligence  or willful  misconduct  as determined by a court of competent
jurisdiction.

            (b) Each Pledgor shall be jointly and severally  obligated  for, and
will upon demand pay to the Collateral  Agent the  reasonable  amount of any and
all  out-of-pocket  costs  and  expenses,  including  the  reasonable  fees  and
disbursements  of the  Collateral  Agent's  counsel and of any experts which the
Collateral Agent may incur in connection with (i) the preparation,  negotiation,
execution,  delivery,  recordation,  administration,  amendment, waiver or other
modification or termination of this Agreement,  (ii) the custody,  preservation,
use or operation of, or the sale of, collection from, or other realization upon,
any Pledged  Collateral,  (iii) the exercise or enforcement of any of the rights
of the Collateral Agent hereunder, or (iv) the failure by any Pledgor to perform
or observe any of the provisions hereof.

      SECTION 11. Notices,  Etc. All notices and other  communications  provided
for  hereunder  shall be in  writing  and shall be mailed  (by  certified  mail,
postage prepaid and return receipt requested),  sent by Federal Express or other
recognized courier service (return receipt requested),  telecopied or delivered,
if to any  Pledgor,  to it at the  address  specified  for  the  Company  in the
Securities  Purchase  Agreement  or if to  the  Collateral  Agent,  to it at the
address  specified in the Securities  Purchase  Agreement;  or as to either such
Person at such other  address as shall be designated by such Person in a written
notice to such other  Person  complying  as to  delivery  with the terms of this
Section 11. All such notices and other  communications shall be effective (i) if
sent by certified mail, postage prepaid, return receipt requested, when received
or three (3)  Business  Days after  mailing,  whichever  first  occurs,  (ii) if
telecopied, when transmitted and confirmation is received, provided same is on a
Business Day and, if not, on the next Business Day or (iii) if delivered or sent
by  Federal  Express  or  other  recognized   courier  service  (return  receipt
requested),  upon  delivery,  provided same is on a Business Day and, if not, on
the next Business Day.

                                      -11-
<PAGE>

      SECTION  12.  Security  Interest  Absolute.  All rights of the  Collateral
Agent, all Liens and all obligations of each of the Pledgors  hereunder shall be
absolute  and  unconditional  irrespective  of:  (i)  any  lack of  validity  or
enforceability  of the Securities  Purchase  Agreement or any other agreement or
instrument  relating  thereto,  (ii) any change in the time,  manner or place of
payment of, or in any other term in respect  of, all or any of the  Obligations,
or any other  amendment  or  waiver  of or  consent  to any  departure  from the
Securities  Purchase  Agreement  or any other  Transaction  Document,  (iii) any
exchange or release of, or non-perfection of any Lien on any Collateral,  or any
release or amendment or waiver of or consent to departure from any guaranty, for
all or any of the  Obligations,  or (iv)  any  other  circumstance  which  might
otherwise  constitute  a defense  available  to, or a  discharge  of, any of the
Pledgors  in respect of the  Obligations  (other than the payment in full of the
Obligations).  All  authorizations and agencies contained herein with respect to
any of the  Pledged  Collateral  are  irrevocable  and  powers  coupled  with an
interest.

      SECTION 13. Miscellaneous.

            (a) No  amendment  of any  provision  of  this  Agreement  shall  be
effective  unless it is in writing and signed by each Pledgor and the Collateral
Agent,  and no waiver of any provision of this Agreement,  and no consent to any
departure by the Pledgors therefrom,  shall be effective unless it is in writing
and signed by the  Collateral  Agent,  and then such waiver or consent  shall be
effective only in the specific  instance and for the specific  purpose for which
given.

            (b) No failure on the part of the Collateral Agent to exercise,  and
no delay in  exercising,  any right  hereunder  or under  any other  Transaction
Document  shall  operate  as a waiver  thereof;  nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other  right.  The rights and remedies of the  Collateral  Agent
provided herein and in the other Transaction Documents are cumulative and are in
addition to, and not exclusive  of, any rights or remedies  provided by law. The
rights of the Collateral Agent under any Transaction  Document against any party
thereto are not conditional or contingent on any attempt by the Collateral Agent
to exercise any of its rights under any other Transaction  Document against such
party or against any other Person.

            (c)  Any  provision  of  this  Agreement   which  is  prohibited  or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining  portions hereof or affecting the validity or  enforceability  of such
provision in any other jurisdiction.

                                      -12-
<PAGE>

            (d) This Agreement  shall create a continuing  security  interest in
and Lien on the Pledged Collateral and shall (i) remain in full force and effect
until the termination of this Agreement in accordance with Section 13 (e) hereof
and (ii) be binding on the Pledgors and their respective  successors and assigns
and shall inure,  together with all rights and remedies of the Collateral Agent,
to the  benefit of the  Collateral  Agent and its  successors,  transferees  and
assigns.  Without  limiting  the  generality  of clause (ii) of the  immediately
preceding  sentence,  the Collateral Agent may assign or otherwise  transfer its
rights and obligations under this Agreement and any other  Transaction  Document
to any other Person pursuant to the terms of the Securities  Purchase Agreement,
and such other Person shall thereupon  become vested with all of the benefits in
respect  thereof granted to the Collateral  Agent herein or otherwise.  Upon any
such assignment or transfer,  all references in this Agreement to the Collateral
Agent shall mean the  assignee of the  Collateral  Agent.  None of the rights or
obligations  of any of the  Pledgors  hereunder  may be  assigned  or  otherwise
transferred  without the prior written consent of the Collateral  Agent, and any
such assignment or transfer shall be null and void.

            (e) Notwithstanding  anything to the contrary in this Agreement, (i)
this  Agreement  (along with all powers of attorney  granted  hereunder) and the
security interests and Lien created hereby shall terminate and all rights to the
Pledged  Collateral  shall revert to the Pledgors upon the repayment in full and
/or complete  conversion to equity securities of the Company of all indebtedness
obligations  owed  by the  Company  to the  Collateral  Agent  under  the  Notes
(including,  without limitation, all principal, interest and fees related to the
Notes),  and (ii) the  Collateral  Agent  will,  promptly,  upon each  Pledgor's
request and at each such Pledgor's  expense,  (A) return to such Pledgor such of
the Pledged  Collateral  (to the extent  delivered to the  Collateral  Agent) as
shall not have been sold or  otherwise  disposed  of or applied  pursuant to the
terms  hereof,  and (B) execute and deliver to such Pledgor,  without  recourse,
representation  or warranty,  such  documents as such Pledgor  shall  reasonably
request to evidence such termination.

            (f) The internal  laws,  and not the laws of conflicts,  of New York
shall govern the enforceability and validity of this agreement, the construction
of its terms and the  interpretation  of the rights  and duties of the  parties,
except as required by mandatory  provisions of law and except to the extent that
the validity and  perfection or the  perfection  and the effect of perfection or
non-perfection  of the security  interest and Lien created  hereby,  or remedies
hereunder,  in respect of any particular  Pledged Collateral are governed by the
law of a jurisdiction other than the State of New York.

            (g)  Each   party  to  this   agreement   hereby   irrevocably   and
unconditionally   submits,  for  itself  and  its  property,  to  the  exclusive
jurisdiction  of the united states  district court for the southern  district of
New York sitting in Manhattan or the  commercial  division,  civil branch of the
supreme  court of the State of Yew York sitting in New York county in connection
with any suit, action or proceeding directly or indirectly arising out of, under
or in connection with the Transaction Documents or the transactions contemplated
thereby.  No party to this  agreement  may move to (i)  transfer  any such suit,
action or proceeding  brought in such New York court or federal court to another
jurisdiction,  (ii) consolidate any such suit,  action or proceeding  brought in
such New York  court or  federal  court  with a suit,  action or  proceeding  in
another  jurisdiction  or (iii)  dismiss  any such  suit,  action or  proceeding
brought in such New York court or federal  court for the purpose of bringing the
same in another  jurisdiction.  Each party to this agreement agrees that a final
judgment in any such suit,  action or proceeding  shall be conclusive and may be
enforced  in any  other  jurisdiction  by suit on the  judgment  or in any other
manner  provided by law. Each party to this  agreement  hereby  irrevocably  and
unconditionally  waives, to the fullest extent it may legally and effectively do
so, any objection  which it may now or hereafter  have to the laying of venue of
any suit,  action or  proceeding  arising out of or relating to the  transaction
documents,  the shares or the conversion shares in any New York court sitting in
the county of New York or any federal court sitting in the southern  district of
New York. Each party to this agreement hereby consents to the service of process
in any such suit,  action or  proceeding  by notice in the manner  specified  in
Section 11.

                                      -13-
<PAGE>

            (h) Each Pledgor  irrevocably  consents to the service of process of
any of the  aforesaid  courts  in any such  action,  suit or  proceeding  by the
mailing of copies thereof by registered or certified mail (or any  substantially
similar form of mail),  postage prepaid, to such Pledgor at its address provided
herein,  such service to become  effective  when  received or 10 days after such
mailing, whichever first occurs.

            (i)  Nothing   contained  herein  shall  affect  the  right  of  the
Collateral  Agent to serve  process  in any  other  manner  permitted  by law or
commence  legal  proceedings  or  otherwise  proceed  against any Pledgor or any
property of any Pledgor in any other jurisdiction.

            (j) Each Pledgor irrevocably and unconditionally waives any right it
may have to claim or recover in any legal action, suit or proceeding referred to
in this Section any special, exemplary, punitive or consequential damages.

            (k) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY  APPLICABLE  LAW,  ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
SUIT,  ACTION OR PROCEEDING  DIRECTLY OR INDIRECTLY  ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR OTHER TRANSACTION DOCUMENTS.

            (l) The headings herein are for convenience  only, do not constitute
a part of this  Agreement  and shall not be deemed to limit or affect any of the
provisions  hereof. The language used in this Agreement will be deemed to be the
language  chosen by the parties to express their mutual intent,  and no rules of
strict construction will be applied against any party.

            (m) This Agreement may be executed in any number of counterparts and
by different  parties  hereto in separate  counterparts,  each of which shall be
deemed to be an original,  but all of which taken together shall  constitute one
and the same agreement.

            (n) All of the  obligations of the Pledgors  hereunder are joint and
several. The Collateral Agent may, in its sole and absolute discretion,  enforce
the  provisions  hereof against any of the Pledgors and shall not be required to
proceed against all Pledgors jointly or seek payment from the Pledgors  ratably.
In addition,  the  Collateral  Agent may, in its sole and  absolute  discretion,
select the Pledged  Collateral  of any one or more of the  Pledgors  for sale or
application to the Obligations,  without regard to the ownership of such Pledged
Collateral,  and shall not be required to make such  selection  ratably from the
Pledged Collateral owned by all of the Pledgors. The release or discharge of any
Pledgor by the Collateral Agent shall not release or discharge any other Pledgor
from the obligations of such Person hereunder.

                                      -14-
<PAGE>

                           [Signature Page Follows]

                                      -15-
<PAGE>

            IN WITNESS  WHEREOF,  each  Pledgor has caused this  Agreement to be
executed and delivered by its officer thereunto duly authorized,  as of the date
first above written.

                                    PLEDGORS:

                                    AMERICAN UNITED GLOBAL, INC.

                                    By:
                                       ---------------------------------
                                    Name:
                                    Title:
                                    Address:  108 Village Square, #327
                                               Somers, New York 10589

ACCEPTED BY:
-----------

SMITHFIELD FIDUCIARY LLC,
as Collateral Agent

By: __________________________
    Name:
    Title:

Address:

<PAGE>

                        SCHEDULE I TO PLEDGE AGREEMENT

                                Pledged Shares

                                    Number of
                                    ----------                      Certificate
        Pledgor     Name of Issuer    Shares    % of       Class      No.(s)
        -------     --------------    ------    -----      -----      ------
                                                 Shares
                                                 ------
                  KRAFT                4,775      95.5%   Ordinary   (serial
                  ELEKTRONIKAI                            Shares,     no.s)
                  ZARTKORUEN MUKODO                       HUF
American United   RESZVENYTARSASAG                        10,000      1-350;
Global, Inc.                                              par value   576-5000

<PAGE>

                                   ANNEX I

                                      TO

                               PLEDGE AGREEMENT

                               PLEDGE AMENDMENT

            This  Pledge  Amendment,  dated  [_______],   20[__],  is  delivered
pursuant to Section 4 of the Pledge Agreement referred to below. The undersigned
hereby  agrees  that  this  Pledge  Amendment  may be  attached  to  the  Pledge
Agreement,  dated as of May __,  2006,  made by  [Pledgor]  and  certain  of its
affiliates in favor of  Smithfield  Fiduciary  LLC, as Collateral  Agent for the
Buyers referred to therein,  (the "COLLATERAL  AGENT") as it may heretofore have
been or hereafter may be amended or otherwise modified or supplemented from time
to time and that the promissory  notes [and/or] shares or other equity interests
listed on this Pledge  Amendment  shall be hereby  pledged  and  assigned to the
Collateral Agent and become part of the Pledged  Collateral  referred to in such
Pledge  Agreement  and shall secure all of the  obligations  referred to in such
Pledge Agreement.

                         Pledged Shares
      Pledgor   Name of Issuer     Number of Shares      Class      Certificate
                                   or Other Equity                     No(s)
                                       Interests
      -------   --------------     ----------------      -----      -----------

                             [PLEDGOR]

                              By:
                                ---------------------------------
                                Name:
                                Title:2

                     ACCOUNTS RECEIVABLES LIEN AGREEMENT

      ACCOUNTS RECEIVABLES LIEN AGREEMENT (as amended, supplemented or otherwise
modified from time to time, the  "AGREEMENT"),  dated as of June 12, 2006 by and
among Kraft  Elektronikai  Zartkoruen  Mukodo  Reszvenytarsasag,  a  corporation
formed under the laws of the Republic of Hungary,  whose registered office is at
H-1112  Budapest,  Koerberki ut 36.,  registered  by the  Metropolitan  Court of
Budapest acting as Court of Registration  under  registration  No.  01-10-044503
(the  "CHARGOR"),  the lenders  signatory  hereto (each lender  including  their
respective  successors,  endorsees,  transferees and assigns, a "SECURED PARTY",
and  collectively,  the "SECURED  PARTIES")  and  Smithfield  Fiduciary  LLC (as
defined,  as collateral  agent for the Secured  Parties (in such  capacity,  the
"COLLATERAL AGENT").

                              WITNESSETH:

      WHEREAS, pursuant to a Securities Purchase Agreement ("SECURITIES PURCHASE
AGREEMENT")  dated as of on or around the date hereof, by and among the American
United  Global,  Inc.,  with  headquarters  located at 108 Village  Square #327,
Somers, New York 10589,  U.S.A. whose U.S. Federal Tax Identification  Number is
95-4359228 (the  "BORROWER"),  the Secured  Parties  referred to above and Alpha
Capital  Aktiengesellschaft  with  headquarters  at c/o  Alpha  Capital,  AG 160
Central  Park  South  #2701 New York,  New York  10019,  and  certain  ancillary
agreements  (collectively  the  "TRANSACTION  DOCUMENTS")  the  Secured  Parties
severally,  but not jointly, agrees to grant a loan facility ("LOAN") in a total
principal amount equal to USD 5,700,000 to the Borrower which shall be evidenced
by the issuance by the Borrower to such Secured Parties of the Borrower's senior
secured convertible notes ("NOTES").

      WHEREAS,  the  Borrower  is an  affiliate  of the  Chargor and the Chargor
acknowledges  that it will  derive  substantial  benefit  from the  making of an
inter-company  loan to be made  from  the Loan  under  the  Securities  Purchase
Agreement to finance the purchasing of equipment for the Chargor.

      WHEREAS,  in  order to  induce  the  Secured  Parties  to  enter  into the
transactions  contemplated  by  the  Securities  Purchase  Agreement  and  other
Transaction Documents,  the Chargor has agreed to create the Liens on all of its
Accounts  Receivables (each as defined below) in favor of the Secured Parties by
execution of this Agreement.

      NOW,  THEREFORE,  in consideration of the agreements  herein contained and
for other good and valuable consideration,  the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

      1. Certain Definitions.

      (a) As used in this  Agreement,  the  following  terms  have the  meanings
specified below:

            "ACCOUNTS RECEIVABLES" means all claims on any legal ground existing
      in the present, as specifically set forth in Schedule B, or arising in the
      future in favor of the Chargor,  including inter-company loans, demands on
      bank  accounts  and any right to  payment  of a  monetary  obligation  for
      property that has been or is to be sold, leased or otherwise  disposed of,
      for services  rendered or to be rendered,  policies of insurance,  deposit
      accounts, letters of credit etc.

<PAGE>

            "AGGREGATE  LOAN  AMOUNTS"  means the  aggregate of the Loan Amounts
      owing to all Secured Parties set out in Schedule A.

            "BUSINESS  DAYS" means any day other than Saturday,  Sunday or other
      day on which  commercial  banks in the City of New York are  authorized or
      required by law to remain closed.

            "CIVIL  CODE" means Act IV of 1959 of the Civil Code of the Republic
      of Hungary, as amended.

            "GOOD  INDUSTRY  PRACTICE"  means at any  time,  in  respect  of any
      person,  the  exercise  of that  degree  of  skill,  diligence,  prudence,
      foresight and operating  practice which would reasonably and ordinarily be
      expected  from a  skilled  and  experienced  operator  in the same type of
      business and undertaking as such person at such time.

            "LOAN AMOUNT" means the amount set opposite the name of each Secured
      Party in Schedule A.

            "OBLIGATIONS" means, with respect to each Secured Party, the due and
      punctual  payment  of (i) the Loan  Amount  owing to such  Secured  Party,
      having a maturity  date of June 12,  2009 as may be extended at the option
      of the  respective  Secured  Party in  accordance  with the  provisions of
      Section 1 (Maturity) of the Notes and (ii) interest on overdue  amounts at
      a rate of 18%  (eighteen  percent) per annum from the date such amount was
      due,  whether at maturity by acceleration or otherwise,  until the same is
      paid in full, and (iii) all other monetary obligations,  including without
      limitation  in  respect  of  fees,   commissions,   costs,   expenses  and
      indemnities,  whether primary,  secondary,  direct,  contingent,  fixed or
      otherwise  (including monetary obligations incurred during the pendency of
      any  bankruptcy,  insolvency,  receivership  or other similar  proceeding,
      regardless  of whether  allowed or allowable in such  proceeding),  of the
      Borrower to such Secured Party under any of the Transaction Documents.

            "PERMITTED LIENS" means the following:

                  (i)  Liens  in  favor  of  the  Secured   Parties  and/or  the
      Collateral Agent pursuant to the Transaction Documents; and

                  (ii) Liens arising by mandatory provisions of applicable laws.

            "SALE VALUE" means,  with respect to any Accounts  Receivables,  the
      value thereof  (expressed in U.S.  Dollars) as proposed by the  Collateral
      Agent and agreed to by the  Chargor,  provided  that in the event that the
      Chargor  shall not have agreed to any such  proposal  within five (5) days
      thereof,  the maximum value thereof (expressed in U.S. Dollars) determined
      by any independent valuation expert of recognized standing selected by the
      Collateral  Agent using any reasonable  method as would, in the reasonable
      judgment of such expert,  allow for either of the  following to occur,  in
      accordance with the other terms and conditions of this  Agreement,  within
      no more than three (3) months of the date such expert  sends notice of the
      amount of such valuation to each of the Collateral  Agent and the Chargor:
      (i) the assignment of such Accounts Receivables,  or (ii) the entry by the
      Collateral Agent into an agreement with a reputable and financially  sound
      third party for the assignment of such Accounts  Receivables by such third
      party within no more than three months of the date of such agreement.

                                       2
<PAGE>

      (b)  Terms  used  in this  Agreement  but not  otherwise  defined  in this
Agreement  that  are  defined  in  the  Transaction  Documents  shall  have  the
respective  meanings given such terms in the Transaction  Documents as in effect
on the date hereof  and, by signing  this  Agreement,  the Chargor  acknowledges
having received and reviewed a copy of each Transaction Document.

            2. Granting of Lien on Accounts  Receivables.  As an inducement  for
each  Secured  Party  to  enter  into  the  transactions   contemplated  by  the
Transaction Documents and to secure the complete and timely payment, performance
and  discharge  in full,  as the case may be, of the  Obligations  owing to such
Secured Party, each Secured Party and the Chargor hereby create in favor of such
Secured Party in accordance  with Section 267 (1) of the Civil Code a lien (each
a "LIEN" and  collectively  the "LIENS") in and to all of the  Chargor's  right,
title and interest in the Accounts Receivables.

            3. Registration;  Notification to the Obligors.  (a) Each Lien shall
be  effective  from the date  hereof  or,  in case of any  Accounts  Receivables
arising hereafter,  from such time as the Chargor acquires the right of disposal
over such Accounts  Receivables.  The Chargor shall,  immediately after the date
hereof,  register in its accounting  system and indicate in all of its financial
reports the fact that the Liens are created over its Accounts Receivables.

                  (b) The Chargor  shall  execute and deliver to the  Collateral
Agent,   substantially   in  the  form  attached   hereto  as  Schedule  D,  the
notifications  addressed to each obligor of the Accounts Receivables existing as
of  the  date  hereof  about  the  creation  of the  Liens  over  such  Accounts
Receivables,  stating that after the receipt of such  notification  the obligors
shall only be  entitled to pay any and all amounts  payable  under the  Accounts
Receivables to the Collateral  Agent.  The Chargor shall,  immediately  after an
Accounts Receivables having arisen, execute and deliver such notification to the
Collateral  Agent. The notifications may be delivered by the Collateral Agent to
the obligors only after the occurrence of an Event of Default in accordance with
the provisions of Section 8 (Rights and Remedies Upon Default).

            4.  Ranking.  Each Lien shall rank pari passu with each other  Lien.
The Liens  shall not be  subject  to any other lien that would rank ahead of the
Liens.

            5.  Representations,  Warranties,  Covenants  and  Agreements of the
Chargor.  The Chargor represents and warrants to, and covenants and agrees with,
each of the Secured Parties as follows:

                                       3
<PAGE>

            (a) The Chargor has the requisite  corporate  power and authority to
enter into this Agreement and to otherwise  perform its obligations  thereunder.
The  execution,  delivery and  performance by the Chargor of this Agreement have
been duly  authorized by all necessary  action on the part of the Chargor and no
further action is required by the Chargor.

(b) The Chargor is the sole legal owner of the existing Accounts Receivables and
the  Accounts  Receivables  are free from any liens,  encumbrances,  third party
rights and third party  claims that would  impede the  Chargor's  right to fully
dispose of the title to the Accounts Receivables, except for Permitted Liens. So
long as this Agreement shall be in effect,  the Chargor shall not enter into any
lien agreement covering the Accounts  Receivables or any portion thereof without
the prior consent of the Collateral Agent.

            (c) This  Agreement  creates in favor of each Secured Party a valid,
perfected  and  effective  first  priority  security  interest  in the  Accounts
Receivables.  No  authorization  or  approval of or filing with or notice to any
governmental  authority or regulatory body is required either: (i) for the grant
by the Chargor of, or the  effectiveness of, the Liens granted hereby or for the
execution, delivery and performance of this Agreement by the Chargor or (ii) for
the  perfection  of or exercise by such Secured Party of its rights and remedies
hereunder.

            (d) Schedule B attached hereto is a complete and correct list of the
Accounts Receivables existing as of April 30, 2006.

            (e) The Chargor has no knowledge of any claim that any Lien violates
the rights of any third party.  There has been no adverse  decision of which the
Chargor  is  aware  as  to  the  Chargor's  exclusive  rights  to  the  Accounts
Receivables in any  jurisdiction,  and, to the knowledge of the Chargor there is
no proceeding  involving  said rights  pending or  threatened  before any court,
judicial  body,   administrative  or  regulatory  agency,  arbitrator  or  other
governmental authority.

            (f) No counter-claim challenging the Accounts Receivables exists.

            (g) The Chargor shall at all times maintain its books of account and
records relating to the Accounts  Receivables at its principal place of business
and may not relocate such books of account and records unless it delivers to the
Collateral  Agent at least thirty (30) days prior to such relocation (i) written
notice of such relocation and the new location thereof (which must be within the
United States or the Republic of Hungary).

            (h) The execution,  delivery and  performance of this Agreement does
not conflict with or cause a breach or default, or an event that with or without
the passage of time or notice,  shall constitute a breach or default,  under any
agreement to which the Chargor is a party or by which the Chargor is bound.

            (i) The Chargor  shall at all times  maintain the Liens as valid and
perfected first priority security interests in the Accounts Receivables in favor
of each Secured  Party and insure that such Liens remain  senior to all existing
and  hereafter  created  liens.  The  Chargor  hereby  agrees to defend the same
against any and all persons.

                                       4
<PAGE>

            (j) The Chargor shall,  within ten (10) days of obtaining  knowledge
thereof, advise the Collateral Agent, in sufficient detail, of any claim, event,
physical or legal fact that may  adversely  impact any  material  portion of the
Accounts Receivables.

            (k) The Chargor  shall  promptly  execute and deliver to the Secured
Parties  such  further  deeds,   assignments,   security   agreements  or  other
instruments, documents, certificates and assurances and take such further action
as necessary to perfect or protect any Lien.

            (l)  The  Chargor  shall  permit  the   Collateral   Agent  and  its
representatives  and agents,  upon prior written notice by the Collateral  Agent
(acting upon  instruction of any Secured Party),  to monitor whether the Chargor
operates its business in accordance with Good Industry  Practice,  including the
right to enter the  Chargor's  premises  to inspect the books and records at any
time  during  normal  business  hours,  and to make  copies of books and records
pertaining to any material item of the Accounts Receivables as may be reasonably
requested by the Collateral Agent (acting upon instruction of any Secured Party)
from time to time,  all of which shall be at the sole cost and expense of (i) if
an Event of Default  shall have  occurred and be  continuing at the inception of
such  inspection,  the Chargor,  or (ii) in all other events,  the Secured Party
initiating such inspection.

            (m) The  Chargor  shall  promptly  notify  the  Collateral  Agent in
reasonable detail upon becoming aware of any attachment,  garnishment, execution
or other legal process levied against any Accounts  Receivables and of any other
information received by the Chargor that reasonably would be expected to have an
adverse impact on the Accounts  Receivables  as a whole,  any Lien or the rights
and remedies of the Secured Parties hereunder.

            (n) The Chargor shall not cause or suffer to exist any charge on the
Accounts  Receivables  other than  Permitted  Liens  without  the prior  written
consent of the Collateral Agent.

            (o) The Chargor shall notify the  Collateral  Agent of any change in
the Chargor's name, identity, chief place of business, chief executive office or
residence within thirty (30) days of such change.

            6.  Information  Covenant.  (a) The Chargor  hereby  covenants  that
within  fifteen (15) days after the end of each  calendar  quarter,  it will (i)
deliver to the  Collateral  Agent a  restatement  of  Schedule  B hereto  (which
delivery  may be effected by  attaching  the same to the  Officer's  Certificate
referred  to in Section 6 (b) below  setting  forth a list in detail  consistent
with that set forth in Schedule B) of any  agreements  or  instruments  that are
subject  to the  Liens  under  this  Agreement  (which  list,  in the  case of a
restatement  of  Schedule  B,  shall  also  include  all  such   agreements  and
instruments previously listed in Schedule B).

            (b) The Chargor hereby covenants that within fifteen (15) days after
the end of each  calendar  quarter,  it will provide to the  Collateral  Agent a
certificate  of the director of the Chargor  substantially  in the form attached
hereto  as  Schedule  C  stating  that as of the  date of such  certificate  all
documents  required to be delivered,  and actions  required to be taken,  by the
Chargor under Section 6 (a) hereof to pledge such  agreements and instruments in
favor of the Secured  Parties under this Agreement have been delivered and taken
(and attaching  copies of any of such documents to such certificate and evidence
of any such required actions).

                                       5
<PAGE>

      7. Defaults. Each of the following events shall be an "EVENT OF DEFAULT":

            (a) the failure by the Borrower to perform any of the Obligations;

            (b) the  occurrence  of an Event of Default  under and as defined in
any Note; and

            (c) the Chargor breaches any representation,  warranty,  covenant or
obligation under this Agreement, except in the case of a breach of a covenant or
obligation  which is curable,  only if such breach  continues for a period of at
least ten (10) consecutive Business Days.

       8. Rights and Remedies Upon Default.  Upon the  occurrence and during the
continuation  of any Event of Default  and the  delivery  to the  Borrower of an
Event of Default  Redemption  Notice (as defined in each Note),  the  Collateral
Agent (on behalf of, and for the benefit of each  Secured  Party)  shall  become
entitled  to seek  satisfaction  from  the  Accounts  Receivables  on the  third
Business Day following  the date of delivery of the Event of Default  Redemption
Notice and the  Collateral  Agent  shall have the right to  exercise  all of the
remedies  conferred  hereunder,  under the Notes, and the Collateral Agent shall
have all the rights and  remedies  of a secured  creditor  under the Civil Code.
Without  limitation,  the Collateral  Agent shall have the following  rights and
powers:

            (a) After the occurrence of an Event of Default which is continuing,
the Collateral Agent may notify the obligors of the Accounts  Receivables  about
the creation of the Liens by giving the notification delivered by the Chargor in
accordance  with Section 3 (b)  (Registration;  Notification  to the  Obligors).
Simultaneously,  the Collateral  Agent shall inform the Chargor by giving a copy
of such notification. After the earlier of the Chargor's receipt of such copy of
notification and the Chargor becoming aware of an Event of Default,  the Chargor
shall  procure  that the obligors of the  Accounts  Receivables  pay any and all
amounts payable under the Accounts Receivables to the Collateral Agent.

            (b) The Collateral  Agent shall have the right to seek  satisfaction
of all of the  Obligations  owing  to the  Secured  Parties  from  the  Accounts
Receivables via court execution,  as provided under Section 255 (1) of the Civil
Code.

            (c) The  Collateral  Agent shall have the right to assign all or any
part of the Accounts  Receivables  (or designate a person who  officially  deals
with granting loans against security and/or organizing public sales to do so) as
provided under Sections 257 and 258 of the Civil Code, at public or private sale
or otherwise,  for a consideration not less than the Sale Value, in U.S. Dollars
(or an  equivalent  amount  in any other  currency  selected  by the  Collateral
Agent),  for cash or on  credit  or for  future  delivery,  in such  portion  or
portions  and at such time or times  within a maximum  period  of  fifteen  (15)
months  from the date of the Event of  Default  Redemption  Notice  giving  rise
thereto,  and at such place or places, and upon such terms and conditions as the
Collateral Agent may deem commercially  reasonable and as are in compliance with
any applicable laws. Upon each such assignment of the Accounts Receivables,  the
Collateral  Agent  and/or any  Secured  Party may acquire all or any part of the
Accounts  Receivables  being  assigned,  free from and discharged of all trusts,
claims, right of redemption and equities of the Chargor, which are hereby waived
and released.

                                       6
<PAGE>

            (d) The Collateral  Agent shall have the right to seek  satisfaction
from the Accounts  Receivables in such other manner as shall be permitted by the
applicable laws at time of exercising such right.

            (e) The  Collateral  Agent may, in order to implement the assignment
of any of the Accounts Receivables pursuant to this Section, execute and deliver
(pursuant  to the  authority  provided  for in  Section  12 (Power of  Attorney;
Further  Assurances))  on  behalf  of the  Chargor  one or more  instruments  of
assignment  of the  Accounts  Receivables  in form as the  Secured  Parties  may
determine advisable.

        9.  Applications  of  Proceeds;  Expenses.  (a) The proceeds of any such
assignment of the Accounts Receivables  hereunder shall be applied first, to the
reasonable expenses of retaking,  holding, and preparing for assignment, and the
like (including, without limitation, any taxes, fees and other costs incurred in
connection therewith) of the Accounts Receivables,  to the reasonable attorneys'
fees and expenses  incurred by the Collateral  Agent and/or  Secured  Parties in
enforcing its rights hereunder and in connection with collecting and transfer of
the Accounts  Receivables,  and then to satisfaction of the Obligations,  and to
the payment of any other  amounts  required by applicable  law,  after which the
Secured  Parties  shall pay to the Chargor any  surplus  proceeds.  If, upon the
assignment of the Accounts Receivables, the proceeds thereof are insufficient to
pay all amounts to which the Secured Parties are legally entitled,  the Chargor,
in its  capacity  of charger  under this  Agreement,  will not be liable for the
deficiency.  To the extent  permitted by applicable  law, the Chargor waives all
claims,  damages and demands  against  the  Secured  Parties  arising out of the
assignment of the Accounts  Receivables,  unless due to the gross  negligence or
willful misconduct of the Collateral Agent and/or Secured Parties.

            (b) The  Chargor  shall  pay all  claims  and  charges  (other  than
Permitted Liens) which in the reasonable  opinion of the Collateral Agent and/or
Secured Parties would reasonably be expected to prejudice,  imperil or otherwise
affect the Accounts  Receivables or any Liens therein.  Without prejudice to the
provisions of Section 5(l) above, the Chargor will also, upon demand, pay to the
Collateral  Agent the amount of any and all reasonable  expenses,  including the
reasonable fees and expenses of its counsel and of any experts and agents, which
the  Collateral  Agent and/or Secured  Parties may incur in connection  with the
inspection,  preservation  of, or the assignment of,  collection  from, or other
realization upon, any of the Accounts Receivables.

      10. Responsibility for the Accounts Receivables. The Chargor shall ensure,
during the term of this  Agreement,  that the  aggregate  amount of the Accounts
Receivables shall be at any time not less than USD 100,000.

      11. Term of the Liens.  Each Lien shall terminate on the date on which all
payments  under  the  respective  Notes  have  been  made in  full or  otherwise
converted pursuant to the terms thereof and the respective Obligations have been
paid or discharged in full. Upon such termination,  the respective Secured Party
shall, at the request of the Chargor to be delivered to the Collateral Agent, at
the expense of the Chargor,  execute and deliver to the Chargor  statements  and
such other  documentation  as shall be  reasonably  requested  by the Chargor to
effect the termination and release of the Lien on the Accounts Receivables.

                                       7
<PAGE>

      12.  Power  of  Attorney;  Further  Assurances.  (a)  The  Chargor  hereby
authorizes the Collateral  Agent (acting on behalf of each Secured  Party),  and
its  respective  officers,  agents,  successors  or  assigns  with full power of
substitution, as the Chargor's true and lawful attorney-in-fact,  with power, in
the name of the Chargor,  to, after the occurrence and during the continuance of
an Event of  Default,  execute  and  deliver  such  documents  to  perfect  such
interests  and take such actions in  accordance  with this  Agreement  which the
attorney may consider to be reasonably  required to accomplish the provisions of
this Agreement, including (i) carrying out any obligation imposed on the Chargor
by this Agreement  (including the execution and delivery of any deeds,  charges,
assignments  or other  security and any transfers of the Accounts  Receivables);
and (ii) enabling the Collateral Agent (acting on behalf of the Secured Parties)
to  exercise,  or  delegate  the  exercise  of,  any of the  rights,  powers and
authorities  conferred  on  it  by or  pursuant  to  this  Agreement  or by  law
(including,  the  exercise  of any right of a legal or  beneficial  owner of the
Accounts  Receivables);  and  generally,  to do, at the option of the Collateral
Agent (acting on behalf of the Secured Parties),  as the case may be, and at the
Chargor's expense,  at any time, or from time to time, all acts and things which
the Collateral  Agent, as the case may be, deems necessary to protect,  preserve
and realize upon the Accounts  Receivables  and the Liens  granted  therein,  in
order to effect the provisions of this Agreement and the Notes, all as fully and
effectually  as the Chargor might or could do; and the Chargor  hereby  ratifies
all that said attorney shall lawfully do or cause to be done by virtue hereof.

            (b) The Chargor shall (i) execute and deliver and cause to be filed,
at Chargor's expense, such documents and instruments, and do such other acts and
things, as may be necessary to maintain the perfection and first priority of the
Liens;  and (ii) without  limiting the effect of the  preceding  clause (i), the
Chargor  shall at any time and from time to time,  upon  written  request of the
Collateral Agent delivered to the Chargor after an Event of Default has occurred
and is  continuing,  execute  and deliver  and cause to be filed,  at  Chargor's
expense,  such documents and instruments,  and do such other acts and things, as
the  Collateral  Agent may  reasonably  deem  desirable  in  obtaining  the full
benefits of this Agreement and of the rights and powers herein granted.

            (c) The Chargor  shall,  upon the occurrence of any Event of Default
which is continuing,  upon request of the Collateral Agent, promptly notify (and
the Chargor hereby authorizes the Collateral Agent so to notify) each obligor of
any  Accounts  Receivables  that such has been  pledged in favor of the  Secured
Parties, and that any payments due or to become due in respect thereof are to be
made directly to the Collateral Agent.

      13. Collateral Agent. (a) The Collateral Agent shall give prompt notice to
each Secured  Party of each notice or request  required or permitted to be given
to the Collateral  Agent by the Chargor pursuant to the terms of this Agreement.
The Collateral  Agent will  distribute to each Secured Party each instrument and
other agreement received for its account and copies of all other  communications
received  by the  Collateral  Agent from the  Chargor  for  distribution  to the
Secured  Parties by the  Collateral  Agent in accordance  with the terms of this
Agreement.  Notwithstanding  anything  herein  contained  to the  contrary,  all
notices to and  communications  with the Chargor under this  Agreement  shall be
effected by the Secured Party through the Collateral Agent.

                                       8
<PAGE>

      (b) All Cash Proceeds  received by the Collateral  Agent in respect of any
sale of or collection  from, or other  realization  upon, all or any part of the
Collateral  may,  in the  discretion  of the  Collateral  Agent,  be held by the
Collateral  Agent as  collateral  for,  and/or  then or at any  time  thereafter
applied (after payment of any amounts payable to the Collateral  Agent) in whole
or in part by the Collateral  Agent against,  all or any part of the Obligations
in  such  order  as the  Collateral  Agent  shall  elect,  consistent  with  the
provisions of the Securities Purchase Agreement.

      14. Notices. (a) Any and all notices or other communications or deliveries
hereunder  (including without limitation any Event of Default Redemption Notice)
shall be in writing and shall be deemed  given and  effective on the earliest of
(i) the date of  transmission,  if such notice or communication is delivered via
facsimile at the facsimile  number specified in this Section prior to 12:00 p.m.
(New York City time) on a Business  Day, or (ii) the next Business Day after the
date of transmission, if such notice or communication is delivered via facsimile
at the  facsimile  number  specified  in  this  Section  on a day  that is not a
Business Day or later than 12:00 p.m.  (New York City time) on any Business Day,
or (iii) the Business Day following  the date of mailing,  if sent by nationally
recognized  overnight courier service,  or (iv) upon actual receipt by the party
to whom such notice is required to be given,  in each case if  delivered  to the
following addresses:

If to the  Borrower  (this  address  being set forth  solely for the purposes of
evidencing  the date of deemed  receipt by the  Borrower  of an Event of Default
Redemption  Notice in the  application  of Section 8 (Rights and  Remedies  Upon
Default) hereunder):

                  American United Global, Inc.
                  108 Village Square #327
                  Somers, New York 10589 USA
                  Telephone: 425-869-7410
                  Facsimile: 631-254-2136
                  Attention: Robert Rubin, CEO

            With a copy to:

                  Sichenzia Ross Friedman Ference LLP
                  1065 Avenue of the Americas, 21st Floor
                  New York, New York  10018 USA
                  Telephone: 212-930-9700
                  Facsimile: 212-930-9725
                  Attention: Richard A. Friedman, Esq.

                                       9
<PAGE>

If to the Chargor:

                  Kraft Elektronikai Zartkoruen Mukodo Reszvenytarsasag,
                  H-1112 Budapest
                  Koerberki ut 36.
                  Hungary
                  Mailing address: H-1506 Budapest, P. O. Box: 89, Hungary
                  Telephone: +36 1 248 2880
                  Facsimile: +36 1 248 2890

                  With a copy to:

                  Sichenzia Ross Friedman Ference LLP
                  1065 Avenue of the Americas, 21st Floor
                  New York, New York 10018 USA
                  Telephone: 212-930-9700
                  Facsimile: 212-930-9725
                  Attention: Richard A. Friedman, Esq.

If to any
Secured Party: To the  address set forth under such  Secured  Party's  name on
               its signature page hereto.

If to the
Collateral
Agent:         To the address set forth under the  Collateral  Agent's name on
               its signature page hereto.

            (b) All notices,  communications and deliveries hereunder to or from
the Chargor must be sent through the  Collateral  Agent.  Any and all notices or
other  communications  or deliveries  made by the Chargor through the Collateral
Agent shall be deemed to be properly sent by the Chargor to each Secured Party.

        15.  Other  Security.  To the  extent  that the  Obligations  are now or
hereafter  secured by property  other than the  Accounts  Receivables  or by the
guarantee,  endorsement  or property of any other person,  firm,  corporation or
other  entity,  then the  Secured  Parties  shall have the right,  in their sole
discretion, to pursue, relinquish,  subordinate, modify or take any other action
with respect  thereto,  without in any way  modifying  or  affecting  any of the
Secured Parties' rights and remedies hereunder.

        16. Miscellaneous.  (a) No course of dealing between the Chargor and the
Collateral  Agent or any Secured  Party,  nor any failure to  exercise,  nor any
delay in exercising,  on the part of the Collateral  Agent or any Secured Party,
any right, power or privilege hereunder, under the Notes or under this Agreement
shall operate as a waiver thereof;  nor shall any single or partial  exercise of
any right,  power or  privilege  hereunder or  thereunder  preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.

                                       10
<PAGE>

            (b) All of the rights  and  remedies  of the  Secured  Parties  with
respect to the Accounts Receivables, whether established hereby, by the Notes or
by any other agreements,  instruments or documents or by law shall be cumulative
and may be exercised through the Collateral Agent singly or concurrently.

            (c) This Agreement  constitutes the entire  agreement of the parties
with respect to the subject matter hereof and is intended to supersede all prior
negotiations,  understandings  and agreements  with respect  thereto.  Except as
specifically set forth in this Agreement,  no provision of this Agreement may be
modified or amended except by a written agreement signed by the parties hereto.

            (d) In the event that any provision of this  Agreement is held to be
invalid,  prohibited or unenforceable in any jurisdiction for any reason, unless
such provision is narrowed by judicial construction, this Agreement shall, as to
such jurisdiction,  be construed as if such invalid, prohibited or unenforceable
provision  had been more narrowly  drawn so as not to be invalid,  prohibited or
unenforceable.   If,  notwithstanding  the  foregoing,  any  provision  of  this
Agreement  is  held  to  be  invalid,   prohibited  or   unenforceable   in  any
jurisdiction,  such provision, as to such jurisdiction,  shall be ineffective to
the  extent  of  such  invalidity,   prohibition  or  unenforceability   without
invalidating the remaining  portion of such provision or the other provisions of
this  Agreement  and without  affecting the validity or  enforceability  of such
provision or the other provisions of this Agreement in any other jurisdiction.

            (e) This Agreement shall be binding upon and inure to the benefit of
each party hereto and its successors and assigns.

            (f) Each  party  shall take such  further  action  and  execute  and
deliver such further  documents as may be necessary or  appropriate  in order to
carry out the provisions of this Agreement.

            (g) This Agreement shall be construed in accordance with the laws of
the Republic of Hungary. The parties hereto irrevocably agree that the Hungarian
courts  shall  have  jurisdiction  to  settle  any  dispute,   suit,  action  or
proceedings which may arise out of or in connection with this Agreement.

            (h) This  Agreement  may be executed in any number of  counterparts,
each of which when so  executed  shall be deemed to be an original  and,  all of
which taken together shall  constitute one and the same Agreement.  In the event
that any signature is delivered by facsimile transmission,  such signature shall
create a valid  binding  obligation  of the party  executing (or on whose behalf
such  signature is executed)  the same with the same force and effect as if such
facsimile signature were the original thereof.

                                       11
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                              KRAFT ELEKTRONIKAI ZARTKORUEN MUKODO
                              RESZVENYTARSASAG

                              By:_____________________________________
                              Name:
                              Title:          managing director

                                       12
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                           SMITHFIELD FIDUCIARY LLC, as Collateral Agent

                           Company  Registration No.: 94284 (registered by the
                           Registrar of Companies for the Cayman Islands)

                           Registered Office:

                           c/o Maples and Calder Attorneys-at-Law
                           Ugland House, P.O. Box 309
                           George Town, Grand Cayman
                           Cayman Islands
                           British West Indies

                           Address for Notice:

                           Smithfield Fiduciary LLC
                           c/o Highbridge Capital Management, LLC
                           9 West 57th Street, 27th Floor
                           New York, NY 10019
                           Facsimile: (212) 751-0755
                           Attn: Ari J. Storch/Adam J. Chill

                           By:_____________________________________
                           Name:              dr. Endre Palfi
                           Title:             proxy

                                       13
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        SMITHFIELD FIDUCIARY LLC, as Secured Party

                        Company  Registration  No.:  94284  (registered by the
                        Registrar of Companies for the Cayman Islands)

                        Registered Office:

                        c/o Maples and Calder Attorneys-at-Law
                        Ugland House, P.O. Box 309
                        George Town, Grand Cayman
                        Cayman Islands
                        British West Indies

                        Address for Notice:

                        Smithfield Fiduciary LLC
                        c/o Highbridge Capital Management, LLC
                        9 West 57th Street, 27th Floor
                        New York, NY 10019
                        Facsimile: (212) 751-0755
                        Attn: Ari J. Storch/Adam J. Chill

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       14
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        IROQUOIS MASTER FUND LTD., as Secured Party

                        Registered Office:

                        641 Lexington Avenue, 26th Floor
                        New York, New York 10022 U.S.A

                        Address for Notice:

                        Iroquois Master Fund Ltd.
                        641 Lexington Avenue 26th Floor
                        New York, New York 10022 USA
                        Facsimile:  (212) 207-3452
                        Telephone: (212) 974-3070
                        Attention:  Joshua Silverman

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       15
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        ROCKMORE  INVESTMENT  MASTER  FUND,  LTD.,  as Secured
                        Party

                        Registered Office:

                        650 Fifth Avenue 24th Floor
                        New York, New York 10019 U.S.A.

                        Address for Notice:

                        Rockmore Investment Master Fund, Ltd.
                        650 Fifth Avenue 24th Floor
                        New York, New York 10019 USA
                        Facsimile:  (212) 258-2315
                        Telephone: (212) 803-5261
                        Attention:   Bruce Bernstein

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       16
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        CRANSHIRE CAPITAL, L.P., as Secured Party

                        Registered Office:

                        666 Dundee Road, Suite 1901
                        Northbrook, IL 60062 U.S.A.

                        Address for Notice:

                        Cranshire Capital, L.P.
                        666 Dundee Road Suite 1901
                        Northbrook, Illinois 60062 USA
                        Facsimile:  (847) 784-9031
                        Telephone: (847) 562-9030
                        Attention:  Mitch Kopin

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       17
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        GRACE BROTHERS, LTD., as Secured Party

                        Registered Office:

                        1560 Sherman Ave Evanston
                        Illinois 60201 U.S.A.

                        Address for Notice:

                        Grace Brothers, Ltd.
                        1560 Sherman Ave
                        Evanston, Illinois 60201 USA
                        Facsimile:  (847) 733-0339
                        Telephone: (847) 733-1230
                        Attention:  Bradford T. Whitmore

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       18
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        RAQ, LLC, as Secured Party

                        Registered Office:

                        787 7th Avenue 48th Floor
                        New York, New York 10019 U.S.A.

                        Address for Notice:

                        RAQ LLC
                        787 7th Avenue 48th Floor
                        New York, New York 10019 USA
                        Facsimile:  (212) 554-4490
                        Telephone: (212) 554-4300
                        Attention:  J. Jay Lobell
                                    Steve Rocamboli

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       19
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        PARAGON CAPITAL, L.P., as Secured Party

                        Registered Office:

                        110 East 59th St
                        New York, New York 10022 U.S.A.

                        Address for Notice:

                        Paragon Capital, L.P.
                        110 East 59th St
                        New York, New York 10022 USA
                        Facsimile:  (212) 894-0279
                        Telephone: (212) 894-0275
                        Attention: Alan P. Donenfeld

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       20
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        NITE CAPITAL, L.P., as Secured Party

                        Registered Office:

                        100 E Cook Avenue #201
                        Libertyville, Illinois 60048 U.S.A.

                        Address for Notice:

                        Nite Capital, L.P.
                        100 E Cook Avenue #201
                        Libertyville, Illinois 60048 USA
                        Facsimile:  (847) 968-2648
                        Telephone: (847) 968-2655
                        Attention:  Keith Goodman

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       21
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        BRISTOL INVESTMENT FUND, LTD., as Secured Party

                        Registered Office:

                        10990 Wilshire Blvd #1410
                        Los Angeles, California 90024 U.S.A.

                        Address for Notice:

                        c/o Bristol Investment Fund, Ltd.
                        10990 Wilshire Blvd #1410
                        Los Angeles, California 90024 USA
                        Facsimile:  (310) 696-0334
                        Telephone: (310) 696-0333
                        Attention:  Paul Kessler
                                          Amy Wong

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       22
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        GLOBAL HUNTER HOLDINGS, L.P., as Secured Party

                        Registered Office:

                        1808 Point de Vue Suite 1000
                        Ft Mound, Texas 75022 U.S.A.

                        Address for Notice:

                        Global Hunter Holdings, L.P.
                        1808 Point de Vue Suite 1000
                        Ft. Mound, Texas 75022 USA
                        Facsimile:  (504) 525-5607
                        Telephone: (504) 527-0333
                        Attention:  Daniel O. Conwill

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       23
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        HUDSON BAY FUND L.P., as Secured Party

                        Registered Office:

                        120 Broadway 40th Floor
                        New York, New York 10271 U.S.A.

                        Address for Notice:

                        Hudson Bay Fund L.P.
                        120 Broadway  40th Floor
                        New York, New York 10271 USA
                        Facsimile:  (212) 571-1279
                        Telephone: (212) 571-1244
                        Attention:  Yoav Roth

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       24
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        RONALD HART, as Secured Party

                        Permanent Address:

                        4821 Crestwood Drive Little Rock
                        Arkansas 72207 U.S.A.

                        Address for Notice:

                        Ronald Hart
                        4821 Crestwood Drive
                        Little Rock, Arkansas 72207 USA
                        Telephone: (501) 265-0063

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       25
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        KUEKENHOF CAPITAL MANAGEMENT, LLC, as Secured Party

                        Registered Office:

                        22 Church St Suite #5
                        Ramsey, New Jersey 07446 U.S.A.

                        Address for Notice:

                        Kuekenhof Capital Management, LLC
                        22 Church St Suite #5
                        Ramsey, New Jersey 07446 USA
                        Facsimile:  (201) 995-1954
                        Telephone: (201) 995-1950
                        Attention:  Michael C. James

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       26
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        SIMON HALEGOUA, as Secured Party

                        Permanent Address:

                        1 Crescent Road
                        Bellterre, New York 11777 U.S.A.

                        Address for Notice:

                        Simon Halegoua
                        1 Crescent Road
                        Belle Teere, New York 11777 USA
                        Telephone: (631) 928-9225

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       27
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        ISAAK HALEGOUA, as Secured Party

                        Permanent Address:

                        25 Bell Circle
                        Bellterre, New York 11777 U.S.A.

                        Address for Notice:

                        Isaak Halegoua
                        1 Crescent Road
                        Belle Teere, New York 11777 USA
                        Telephone: (631) 928-9225

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       28
<PAGE>

      IN  WITNESS  WHEREOF,   the  parties  hereto  have  caused  this  Accounts
Receivables  Lien  Agreement to be duly executed on the day and year first above
written.

                        AUDREY HALEGOUA, as Secured Party

                        Permanent Address:

                        25 Bell Circle
                        Bellterre, New York 11777 U.S.A.

                        Address for Notice:

                        Audrey Halegoua
                        1 Crescent Road
                        Belle Teere, New York 11777 USA
                        Telephone: (631) 928-9225

                        By:_____________________________________
                        Name:                 dr. Endre Palfi
                        Title:                proxy

                                       29
<PAGE>

                                  SCHEDULE A

                                 LOAN AMOUNTS

-------------------------------------------------------------------------

    NAME OF THE SECURED PARTIES                  LOAN AMOUNTS
-------------------------------------------------------------------------
     Smithfield Fiduciary LLC                   USD 1,000,000
-------------------------------------------------------------------------

     Iroquois Master Fund, Ltd.                  USD 600,000
-------------------------------------------------------------------------

  Rockmore Investment Master Fund,               USD 500,000
                Ltd.
-------------------------------------------------------------------------

      Cranshire Capital, L.P.                    USD 500,000
-------------------------------------------------------------------------

        Grace Brothers, Ltd.                    USD 1,250,000
-------------------------------------------------------------------------

              RAQ, LLC                           USD 250,000
-------------------------------------------------------------------------

        Paragon Capital L.P.                     USD 350,000
-------------------------------------------------------------------------

         Nite Capital, L.P.                      USD 250,000
-------------------------------------------------------------------------

   Bristol Investment Fund, Ltd.                 USD 250,000
-------------------------------------------------------------------------

    Global Hunter Holdings, L.P.                 USD 250,000
-------------------------------------------------------------------------

        Hudson Bay Fund L.P.                     USD 250,000
-------------------------------------------------------------------------

            Ronald Hart                          USD 50,000
-------------------------------------------------------------------------

 Kuekenhof Capital Management, LLC               USD 100,000
-------------------------------------------------------------------------

           Simon Halegoua                        USD 50,000
-------------------------------------------------------------------------

           Isaak Halegoua                        USD 25,000
-------------------------------------------------------------------------

          Audrey Halegoua                        USD 25,000
-------------------------------------------------------------------------

       AGGREGATE LOAN AMOUNTS                   USD 5,700,000
-------------------------------------------------------------------------

                                       30
<PAGE>

                                  SCHEDULE B

                         LIST OF ACCOUNTS RECEIVABLES

                                       31
<PAGE>

                                  SCHEDULE C

                            OFFICER'S CERTIFICATE

            Reference is made to (i) the  Accounts  Receivables  Lien  Agreement
dated as of June 12,  2006 (the  "AGREEMENT")  by and among  Kraft  Elektronikai
Zartkoruen  Mukodo  Reszvenytarsasag  (the  "CHARGOR"),  the  lenders  signatory
thereto (the "SECURED  PARTIES") and Smithfield  Fiduciary LLC (the  "COLLATERAL
AGENT").  Terms used but not defined  herein are used as defined in the Accounts
Receivables Lien Agreement.

            I, [___________],  a Director of the Chargor, hereby certify to each
Secured Party under the Accounts Receivables Lien Agreement that:

            (i) the Chargor has entered into no agreements or  instruments  that
      is subject to the Liens under the Accounts  Receivables  Lien  Agreement ,
      other than the  agreements or  instruments  listed on the  restatement  of
      Schedule B of the Accounts  Receivables  Lien  Agreement  attached to this
      certificate;

            (ii) such restatement has been appropriately completed and is in the
      form,  and  specifies  such  agreements  and  instruments  in the  detail,
      required by Section 6 (a) of the Accounts Receivables Lien Agreement; and

            (iii) the Chargor has taken all actions  necessary  to create  valid
      and enforceable  Liens in the agreements and instruments set forth in such
      restatement.

            IN WITNESS WHEREOF,  I have executed this certificate in my capacity
as a Director of the Chargor this [__] day of ______, 200[__].

                                          By
                                            ---------------------------
                                            Name:
                                            Title:

                                       32
<PAGE>

                                  SCHEDULE D

                                   FORM OF

               NOTIFICATION ABOUT THE ENFORCEMENT OF THE LIENS

                    [on the letter headed paper of the Chargor]

FAO: [Obligor]

                                                                    Date: [date]

Dear Sirs,

REF: NOTIFICATION

We refer to the Accounts Receivables Lien Agreement  ("AGREEMENT")  concluded on
June 12 2006, by and among Kraft Elektronikai Zartkoruen Mukodo Reszvenytarsasag
(the  "CHARGOR"),  the lenders  signatory  thereto (the  "SECURED  PARTIES") and
Smithfield  Fiduciary LLC (the  "COLLATERAL  AGENT") (the  Chargor,  the Secured
Parties and the Collateral Agent hereinafter collectively the "PARTIES").

We hereby  inform You, that  pursuant to the  provisions of the above  mentioned
Agreement,  the Parties have  created in favor of each  Secured  Party a lien on
each  and  every   right,   title  and   interest   (hereinafter   collectively:
"RECEIVABLES") of the Chargor vis-a-vis You, arising at present or in the future
from the following contract/order ("CONTRACT").

Contract:   [___]

                             Date: [___]

Subject:    [___]

After the receipt of the present  Notification the Receivables  shall be paid to
the following bank account: [___].

WE KINDLY  INFORM YOU THAT YOU SHALL  BEAR THE RISK OF NOT ACTING IN  CONFORMITY
WITH THE PRESENT  NOTIFICATION  AND THE SECURED  PARTIES SHALL HAVE THE RIGHT TO
CLAIM PAYMENT FROM YOU  INDEPENDENTLY OF THE FACT THAT YOU MADE A PAYMENT TO THE
CHARGOR.

YOURS FAITHFULLY:

KRAFT ELEKTRONIKAI ZARTKORUEN MUKODO RESZVENYTARSASAG
[corporate signature]

                                       33

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