Document:

SECURITY
      AGREEMENT

     

    THIS
      SECURITY AGREEMENT
      (the
“Agreement”), is
      entered into and made effective as of June 30, 2005, by and among GLOBAL
      IT HOLDINGS, INC. (“GITN”),
      and
PLATINUM
      IT CONSULTING, INC. (“PICI”; and together with GITN, the “Company”);
      and the
PURCHASER
      listed
      on Schedule I attached to the Convertible Debenture Purchase Agreement dated
      the
      date hereof (the
      “Secured
      Party”).

     

    WHEREAS,
      the
      GITN
      shall issue and sell to the Secured Party, as provided in the Convertible
      Debenture Purchase Agreement dated the date hereof, and the Secured Party shall
      purchase Nine Hundred Fifty Thousand Dollars ($950,000) of five percent (5%)
      secured convertible debentures (the “Convertible
      Debentures”),
      which
      shall be convertible into shares of the GITN’s common stock, par value $ .001
      (the “Common
      Stock”)
      (as
      converted, the “Conversion
      Shares”),
      for a
      total purchase price of Nine Hundred Fifty Thousand Dollars
      ($950,000).

     

    WHEREAS,
      to
      induce
      the Secured Party to enter into the transaction contemplated by the Convertible
      Debenture Purchase Agreement, the Convertible Debenture, the Registration Rights
      Agreement, the Warrant, the Power of Attorney and the Escrow Agreement
      (collectively referred to as the “Transaction
      Documents”),
      GITN
      and PICI hereby grant to the Secured Party a security interest in and to the
      pledged property identified on Exhibit
      “A”
      hereto
      (collectively referred to as the “Pledged
      Property”)
      until
      the satisfaction of the Obligations, as defined herein below. 

     

    NOW,
      THEREFORE, in
      consideration of the premises and the mutual covenants herein contained, and
      for
      other good and valuable consideration, the adequacy and receipt of which are
      hereby acknowledged, the parties hereto hereby agree as follows:

     

    ARTICLE
      1.

    DEFINITIONS
      AND INTERPRETATIONS

     

    Section
      1.1. Recitals.
      

     

    The
      above
      recitals are true and correct and are incorporated herein, in their entirety,
      by
      this reference.

     

    Section
      1.2. Interpretations.
      

     

    Nothing
      herein expressed or implied is intended or shall be construed to confer upon
      any
      person other than the Secured Party any right, remedy or claim under or by
      reason hereof.

     

    Section
      1.3. Obligations
      Secured.

     

    The
      obligations secured hereby are any and all obligations of the Company now
      existing or hereinafter incurred to the Secured Party, whether oral or written
      and whether arising before, on or after the date hereof including, without
      limitation, those obligations of GITN to the Secured Party under the Convertible
      Debenture Purchase Agreement, the Convertible Debenture, the Registration Rights
      Agreement, the Power of Attorney and the Warrant, and any other amounts now
      or
      hereafter owed to the Secured Party by GITN and PICI thereunder or hereunder
      (collectively, the “Obligations”).

     

    
      
        
        

      

      
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    ARTICLE
      2.

    PLEDGED
      COLLATERAL, ADMINISTRATION OF COLLATERAL 

    AND
      TERMINATION OF SECURITY INTEREST

     

    Section
      2.1. Pledged
      Property.

     

    (a) Company
      hereby pledges to the Secured Party, and creates in the Secured Party for its
      benefit, a security interest for such time until the Obligations are paid in
      full, in and to all of the property of the Company as set forth in Exhibit “A”
      attached
      hereto (collectively, the “Pledged
      Property”):

     

    The
      Pledged Property, as set forth in Exhibit “A”
      attached
      hereto, and the products thereof and the proceeds of all such items are
      hereinafter collectively referred to as the “Pledged
      Collateral.”

     

    (b) Simultaneously
      with the execution and delivery of this Agreement, the Company shall make,
      execute, acknowledge, file, record and deliver to the Secured Party any
      documents reasonably requested by the Secured Party to perfect its security
      interest in the Pledged Property. Simultaneously with the execution and delivery
      of this Agreement, the Company shall make, execute, acknowledge and deliver
      to
      the Secured Party such documents and instruments, including, without limitation,
      financing statements, certificates, affidavits and forms as may, in the Secured
      Party’s reasonable judgment, be necessary to effectuate, complete or perfect, or
      to continue and preserve, the security interest of the Secured Party in the
      Pledged Property, and the Secured Party shall hold such documents and
      instruments as secured party, subject to the terms and conditions contained
      herein.

     

    Section
      2.2. Rights;
      Interests; Etc.

     

    (a) So
      long
      as no Event of Default (as hereinafter defined) shall have occurred and be
      continuing:

     

    (i) the
      Company shall be entitled to exercise any and all rights pertaining to the
      Pledged Property or any part thereof for any purpose not inconsistent with
      the
      terms hereof; and

     

    (ii) the
      Company shall be entitled to receive and retain any and all payments paid or
      made in respect of the Pledged Property.

     

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

     

    (i) All
      rights of the Company to exercise the rights which it would otherwise be
      entitled to exercise pursuant to Section 2.2(a)(i) hereof and to
      receive payments which it would otherwise be authorized to receive and retain
      pursuant to Section 2.2(a)(ii) hereof shall be suspended, and all such
      rights shall thereupon become vested in the Secured Party who shall thereupon
      have the sole right to exercise such rights and to receive and hold as Pledged
      Collateral such payments; provided,
      however,
      that if
      the Secured Party shall become entitled and shall elect to exercise its right
      to
      realize on the Pledged Collateral pursuant to Article 5 hereof, then all
      cash sums received by the Secured Party, or held by Company for the benefit
      of
      the Secured Party and paid over pursuant to Section 2.2(b)(ii) hereof,
      shall be applied against any outstanding Obligations; and

     

    
      
        
        

      

      
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    (ii) All
      interest, dividends, income and other payments and distributions which are
      received by the Company contrary to the provisions of
      Section 2.2(b)(i) hereof shall be received in trust for the benefit of
      the Secured Party, shall be segregated from other property of the Company and
      shall be forthwith paid over to the Secured Party; or 

     

    (iii) The
      Secured Party in its sole discretion shall be authorized to sell
      any
      or all of the Pledged Property at public or private sale in order to recoup
      all
      of the outstanding principal plus accrued interest owed pursuant to the
      Convertible Debenture as described herein

     

    (c) Each
      of
      the following events shall constitute a default under this Agreement (each
      an
“Event
      of Default”):

     

    (i) any
      default, whether in whole or in part, shall occur in the payment to the Secured
      Party of principal, interest or other item comprising the Obligations as and
      when due or with respect to any other debt or obligation of the Company to
      a
      party other than the Secured Party;

     

    (ii) any
      default, whether in whole or in part, shall occur in the due observance or
      performance of any obligations or other covenants, terms or provisions to be
      performed under this Agreement or the Transaction Documents; 

     

    (iii) the
      Company shall: (1) make a general assignment for the benefit of its
      creditors; (2) apply for or consent to the appointment of a receiver,
      trustee, assignee, custodian, sequestrator, liquidator or similar official
      for
      itself or any of its assets and properties; (3) commence a voluntary case
      for relief as a debtor under the United States Bankruptcy Code; (4) file
      with or otherwise submit to any governmental authority any petition, answer
      or
      other document seeking: (A) reorganization, (B) an arrangement with
      creditors or (C) to take advantage of any other present or future
      applicable law respecting bankruptcy, reorganization, insolvency, readjustment
      of debts, relief of debtors, dissolution or liquidation; (5) file or
      otherwise submit any answer or other document admitting or failing to contest
      the material allegations of a petition or other document filed or otherwise
      submitted against it in any proceeding under any such applicable law, or
      (6) be adjudicated a bankrupt or insolvent by a court of competent
      jurisdiction; or

     

    
      
        
        

      

      
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      (iv) any
        case,
        proceeding or other action shall be commenced against the Company for the
        purpose of effecting, or an order, judgment or decree shall be entered by
        any
        court of competent jurisdiction approving (in whole or in part) anything
        specified in Section 2.2(c)(iii) hereof, or any receiver, trustee,
        assignee, custodian, sequestrator, liquidator or other official shall be
        appointed with respect to the Company, or shall be appointed to take or shall
        otherwise acquire possession or control of all or a substantial part of the
        assets and properties of the Company, and any of the foregoing shall continue
        unstayed and in effect for any period of thirty
        (30) days.

    

     

    ARTICLE
      3.

    ATTORNEY-IN-FACT;
      PERFORMANCE

     

    Section
      3.1. Secured
      Party Appointed Attorney-In-Fact.

     

    Upon
      the
      occurrence of an Event of Default, the Company hereby appoints the Secured
      Party
      as its attorney-in-fact, with full authority in the place and stead of the
      Company and in the name of the Company or otherwise, from time to time in the
      Secured Party’s discretion to take any action and to execute any instrument
      which the Secured Party may reasonably deem necessary to accomplish the purposes
      of this Agreement, including, without limitation, to receive and collect all
      instruments made payable to the Company representing any payments in respect
      of
      the Pledged Collateral or any part thereof and to give full discharge for the
      same. The Secured Party may demand, collect, receipt for, settle, compromise,
      adjust, sue for, foreclose, or realize on the Pledged Property as and when
      the
      Secured Party may determine. To facilitate collection, the Secured Party may
      notify account debtors and obligors on any Pledged Property or Pledged
      Collateral to make payments directly to the Secured Party.

     

    Section
      3.2. Secured
      Party May Perform.

     

    If
      the
      Company fails to perform any agreement contained herein, the Secured Party,
      at
      its option, may itself perform, or cause performance of, such agreement, and
      the
      expenses of the Secured Party incurred in connection therewith shall be included
      in the Obligations secured hereby and payable by the Company under
      Section 8.3.

     

    ARTICLE
      4.

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      4.1. Authorization;
      Enforceability.

     

    Each
      of
      the parties hereto represents and warrants that it has taken all action
      necessary to authorize the execution, delivery and performance of this Agreement
      and the transactions contemplated hereby; and upon execution and delivery,
      this
      Agreement shall constitute a valid and binding obligation of the respective
      party, subject to applicable bankruptcy, insolvency, reorganization, moratorium
      and similar laws affecting creditors’ rights or by the principles governing the
      availability of equitable remedies.

     

    
      
        
        

      

      
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      Section
        4.2. Ownership
        of Pledged Property.

       

      The
        Company warrants and represents that it is the legal and beneficial owner
        of the
        Pledged Property free and clear of any lien, security interest, option or
        other
        charge or encumbrance except for the security interest created by this
        Agreement.

       

    

    ARTICLE
      5.

    DEFAULT;
      REMEDIES; SUBSTITUTE COLLATERAL

     

    Section
      5.1. Default
      and Remedies.

     

    (a) If
      an
      Event of Default described in Section 2.2(c)(i) and (ii) occurs,
      then in each such case the Secured Party may declare the Obligations to be
      due
      and payable immediately, by a notice in writing to the Company, and upon any
      such declaration, the Obligations shall become immediately due and payable.
      If
      an Event of Default described in Sections 2.2(c)(iii) or
      (iv) occurs and is continuing for the period set forth therein, then the
      Obligations shall automatically become immediately due and payable without
      declaration or other act on the part of the Secured Party.

     

    (b) Upon
      the
      occurrence of an Event of Default, the Secured Party shall: (i) be entitled
      to receive all distributions with respect to the Pledged Collateral,
      (ii) to cause the Pledged Property to be transferred into the name of the
      Secured Party or its nominee, (iii) to dispose of the Pledged Property, and
      (iv) to realize upon any and all rights in the Pledged Property then held
      by the Secured Party.

     

    Section
      5.2. Method
      of Realizing Upon the Pledged Property: Other Remedies.

     

    Upon
      the
      occurrence of an Event of Default, in addition to any rights and remedies
      available at law or in equity, the following provisions shall govern the Secured
      Party’s right to realize upon the Pledged Property:

     

    (a) Any
      item
      of the Pledged Property may be sold for cash or other value in any number of
      lots at brokers board, public auction or private sale and may be sold without
      demand, advertisement or notice (except that the Secured Party shall give the
      Company ten (10) days’ prior written notice of the time and place or
      of the time after which a private sale may be made (the “Sale
      Notice”)),
      which notice period shall in any event is hereby agreed to be commercially
      reasonable. At any sale or sales of the Pledged Property, the Company may bid
      for and purchase the whole or any part of the Pledged Property and, upon
      compliance with the terms of such sale, may hold, exploit and dispose of the
      same without further accountability to the Secured Party. The Company will
      execute and deliver, or cause to be executed and delivered, such instruments,
      documents, assignments, waivers, certificates, and affidavits and supply or
      cause to be supplied such further information and take such further action
      as
      the Secured Party reasonably shall require in connection with any such
      sale.

     

    
      
        
        

      

      
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      (b) Any
        cash
        being held by the Secured Party as Pledged Collateral and all cash proceeds
        received by the Secured Party in respect of, sale of, collection from, or
        other
        realization upon all or any part of the Pledged Collateral shall be applied
        as
        follows:

       

      (i) to
        the
        payment of all amounts due the Secured Party for the expenses reimbursable
        to it
        hereunder or owed to it pursuant to Section 8.3 hereof;

       

      (ii) to
        the
        payment of the Obligations then due and unpaid.

       

    

    (iii) the
      balance, if any, to the person or persons entitled thereto, including, without
      limitation, the Company.

     

    (c) In
      addition to all of the rights and remedies which the Secured Party may have
      pursuant to this Agreement, the Secured Party shall have all of the rights
      and
      remedies provided by law, including, without limitation, those under the Uniform
      Commercial Code.

     

    (i) If
      the
      Company fails to pay such amounts due upon the occurrence of an Event of Default
      which is continuing, then the Secured Party may institute a judicial proceeding
      for the collection of the sums so due and unpaid, may prosecute such proceeding
      to judgment or final decree and may enforce the same against the Company and
      collect the monies adjudged or decreed to be payable in the manner provided
      by
      law out of the property of Company, wherever situated.

     

    (ii) The
      Company agrees that it shall be liable for any reasonable fees, expenses and
      costs incurred by the Secured Party in connection with enforcement, collection
      and preservation of the Transaction Documents, including, without limitation,
      reasonable legal fees and expenses, and such amounts shall be deemed included
      as
      Obligations secured hereby and payable as set forth in Section 8.3
      hereof.

     

    Section
      5.3. Proofs
      of Claim.

     

    In
      case
      of the pendency of any receivership, insolvency, liquidation, bankruptcy,
      reorganization, arrangement, adjustment, composition or other judicial
      proceeding relating to the Company or the property of the Company or of such
      other obligor or its creditors, the Secured Party (irrespective of whether
      the
      Obligations shall then be due and payable as therein expressed or by declaration
      or otherwise and irrespective of whether the Secured Party shall have made
      any
      demand on the Company for the payment of the Obligations), subject to the rights
      of Previous Security Holders, shall be entitled and empowered, by intervention
      in such proceeding or otherwise:

     

    (i) to
      file
      and prove a claim for the whole amount of the Obligations and to file such
      other
      papers or documents as may be necessary or advisable in order to have the claims
      of the Secured Party (including any claim for the reasonable legal fees and
      expenses and other expenses paid or incurred by the Secured Party permitted
      hereunder and of the Secured Party allowed in such judicial proceeding),
      and

     

    
      
        
        

      

      
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      (ii) to
        collect and receive any monies or other property payable or deliverable on
        any
        such claims and to distribute the same; and any custodian, receiver, assignee,
        trustee, liquidator, sequestrator or other similar official in any such judicial
        proceeding is hereby authorized by the Secured Party to make such payments
        to
        the Secured Party and, in the event that the Secured Party shall consent
        to the
        making of such payments directed to the Secured Party, to pay to the Secured
        Party any amounts for expenses due it hereunder.

       

      Section
        5.4. Duties
        Regarding Pledged Collateral.

       

      The
        Secured Party shall have no duty as to the collection or protection of the
        Pledged Property or any income thereon or as to the preservation of any rights
        pertaining thereto, beyond the safe custody and reasonable care of any of
        the
        Pledged Property actually in the Secured Party’s possession.

       

    

    ARTICLE
      6.

    AFFIRMATIVE
      COVENANTS

     

    The
      Company covenants and agrees that, from the date hereof and until the
      Obligations have been fully paid and satisfied, unless the Secured Party shall
      consent otherwise in writing (as provided in Section 8.4
      hereof):

     

    Section
      6.1. Existence,
      Properties, Etc.

     

    (a) The
      Company shall do, or cause to be done, all things, or proceed with due diligence
      with any actions or courses of action, that may be reasonably necessary
      (i) to maintain Company’s due organization, valid existence and good
      standing under the laws of its state of incorporation, and (ii) to preserve
      and keep in full force and effect all qualifications, licenses and registrations
      in those jurisdictions in which the failure to do so could have a Material
      Adverse Effect (as defined below); and (b) the Company shall not do, or
      cause to be done, any act impairing the Company’s corporate power or authority
      (i) to carry on the Company’s business as now conducted, and (ii) to
      execute or deliver this Agreement or any other document delivered in connection
      herewith, including, without limitation, any UCC-1 Financing Statements required
      by the Secured Party to which it is or will be a party, or perform any of
      its obligations hereunder or thereunder. For purpose of this Agreement, the
      term
“Material
      Adverse Effect”
shall
      mean any material and adverse affect as determined by Secured Party in its
      sole
      discretion, whether individually or in the aggregate, upon (a) the
      Company’s assets, business, operations, properties or condition, financial or
      otherwise; (b) the Company’s to make payment as and when due of all or any
      part of the Obligations; or (c) the Pledged Property.

     

    Section
      6.2. Financial
      Statements and Reports.

     

    The
      Company shall furnish to the Secured Party such financial data as the Secured
      Party may reasonably request. Without limiting the foregoing, the Company shall
      furnish to the Secured Party (or cause to be furnished to the Secured Party)
      the
      following:

     

    (a) as
      soon
      as practicable and in any event within ninety (90) days after the end of each
      fiscal year of the Company, the balance sheet of the Company as of the close
      of
      such fiscal year, the statement of earnings and retained earnings of the Company
      as of the close of such fiscal year, and statement of cash flows for the Company
      for such fiscal year, all in reasonable detail, prepared in accordance with
      generally accepted accounting principles consistently applied, certified by
      the
      chief executive and chief financial officers of the Company as being true and
      correct and accompanied by a certificate of the chief executive and chief
      financial officers of the Company, stating that the Company has kept, observed,
      performed and fulfilled each covenant, term and condition of this Agreement
      during such fiscal year and that no Event of Default hereunder has occurred
      and
      is continuing, or if an Event of Default has occurred and is continuing,
      specifying the nature of same, the period of existence of same and the action
      the Company proposes to take in connection therewith;

     

    
      
        
        

      

      
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    (b) within
      thirty (30) days of the end of each calendar month, a balance sheet of the
      Company as of the close of such month, and statement of earnings and retained
      earnings of the Company as of the close of such month, all in reasonable detail,
      and prepared substantially in accordance with generally accepted accounting
      principles consistently applied, certified by the chief executive and chief
      financial officers of the Company as being true and correct; and

     

    (c) promptly
      upon receipt thereof, copies of all accountants' reports and accompanying
      financial reports submitted to the Company by independent accountants in
      connection with each annual examination of the Company.

     

    Section
      6.3. Accounts
      and Reports.

     

    The
      Company shall maintain a standard system of accounting in accordance with
      generally accepted accounting principles consistently applied and provide,
      at
      its sole expense, to the Secured Party the following:

     

    (a) as
      soon
      as available, a copy of any notice or other communication alleging any
      nonpayment or other material breach or default, or any foreclosure or other
      action respecting any material portion of its assets and properties, received
      respecting any of the indebtedness of the Company in excess of $15,000 (other
      than the Obligations), or any demand or other request for payment under any
      guaranty, assumption, purchase agreement or similar agreement or arrangement
      respecting the indebtedness or obligations of others in excess of $15,000,
      including any received from any person acting on behalf of the Secured Party
      or
      beneficiary thereof; and

     

    (b) within
      fifteen (15) days after the making of each submission or filing, a copy of
      any report, financial statement, notice or other document, whether periodic
      or
      otherwise, submitted to the shareholders of the Company, or submitted to or
      filed by the Company with any governmental authority involving or affecting
      (i)
      the Company that could have a Material Adverse Effect; (ii) the
      Obligations; (iii) any part of the Pledged Collateral; or (iv) any of
      the transactions contemplated in this Agreement or the Loan
      Instruments.

     

    Section
      6.4. Maintenance
      of Books and Records; Inspection.

     

    The
      Company shall maintain its books, accounts and records in accordance with
      generally accepted accounting principles consistently applied, and permit the
      Secured Party, its officers and employees and any professionals designated
      by
      the Secured Party in writing, at any time to visit and inspect any of its
      properties (including but not limited to the collateral security described
      in
      the Transaction Documents and/or the Loan Instruments), corporate books and
      financial records, and to discuss its accounts, affairs and finances with any
      employee, officer or director thereof.

    
      
        
        

      

      
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      Section
        6.5. Maintenance
        and Insurance.

       

      (a) The
        Company shall maintain or cause to be maintained, at its own expense, all
        of its
        assets and properties in good working order and condition, making all necessary
        repairs thereto and renewals and replacements thereof.

       

    

    (b) The
      Company shall maintain or cause to be maintained, at its own expense, insurance
      in form, substance and amounts (including deductibles), which the Company deems
      reasonably necessary to the Company’s business, (i) adequate to insure all
      assets and properties of the Company, which assets and properties are of a
      character usually insured by persons engaged in the same or similar business
      against loss or damage resulting from fire or other risks included in an
      extended coverage policy; (ii) against public liability and other tort
      claims that may be incurred by the Company; (iii) as may be required by the
      Transaction Documents and/or applicable law and (iv) as may be reasonably
      requested by Secured Party, all with adequate, financially sound and reputable
      insurers.

     

    Section
      6.6. Contracts
      and Other Collateral.

     

    The
      Company shall perform all of its obligations under or with respect to each
      instrument, receivable, contract and other intangible included in the Pledged
      Property to which the Company is now or hereafter will be party on a timely
      basis and in the manner therein required, including, without limitation, this
      Agreement.

     

    Section
      6.7. Defense
      of Collateral, Etc.

     

    The
      Company shall defend and enforce its right, title and interest in and to any
      part of: (a) the Pledged Property; and (b) if not included within the
      Pledged Property , those assets and properties whose loss could have a Material
      Adverse Effect, the Company shall defend the Secured Party’s right, title and
      interest in and to each and every part of the Pledged Property, each against
      all
      manner of claims and demands on a timely basis to the full extent permitted
      by
      applicable law.

     

    Section
      6.8. Payment
      of Debts, Taxes, Etc.

     

    The
      Company shall pay, or cause to be paid, all of its indebtedness and other
      liabilities and perform, or cause to be performed, all of its obligations in
      accordance with the respective terms thereof, and pay and discharge, or cause
      to
      be paid or discharged, all taxes, assessments and other governmental charges
      and
      levies imposed upon it, upon any of its assets and properties on or before
      the
      last day on which the same may be paid without penalty, as well as pay all
      other
      lawful claims (whether for services, labor, materials, supplies or
      otherwise) as and when due

     

    
      
        
        

      

      
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      Section
        6.9. Taxes
        and Assessments; Tax Indemnity.

       

      The
        Company shall (a) file all tax returns and appropriate schedules thereto
        that are required to be filed under applicable law, prior to the date of
        delinquency, (b) pay and discharge all taxes, assessments and governmental
        charges or levies imposed upon the Company, upon its income and profits or
        upon
        any properties belonging to it, prior to the date on which penalties attach
        thereto, and (c) pay all taxes, assessments and governmental charges or
        levies that, if unpaid, might become a lien or charge upon any of its
        properties; provided,
        however,
        that
        the Company in good faith may contest any such tax, assessment, governmental
        charge or levy described in the foregoing clauses (b) and (c) so long as
        appropriate reserves are maintained with respect thereto. 

       

    

    Section
      6.10. Compliance
      with Law and Other Agreements.
      

     

    The
      Company shall maintain its business operations and property owned or used in
      connection therewith in compliance with (a) all applicable federal, state
      and local laws, regulations and ordinances governing such business operations
      and the use and ownership of such property, and (b) all agreements,
      licenses, franchises, indentures and mortgages to which the Company is a party
      or by which the Company or any of its properties is bound. Without limiting
      the
      foregoing, the Company shall pay all of its indebtedness promptly in accordance
      with the terms thereof.

     

    Section
      6.11. Notice
      of Default.
      

     

    The
      Company shall give written notice to the Secured Party of the occurrence of
      any
      default or Event of Default under this Agreement, the Transaction Documents
      or
      any other Loan Instrument or any other agreement of Company for the payment
      of
      money, promptly upon the occurrence thereof.

     

    Section
      6.12. Notice
      of Litigation.

     

    The
      Company shall give notice, in writing, to the Secured Party of (a) any
      actions, suits or proceedings wherein the amount at issue is in excess of
      $50,000, instituted by any persons against the Company, or affecting any of
      the
      assets of the Company, and (b) any dispute, not resolved within fifteen
      (15) days of the commencement thereof, between the Company on the one hand
      and
      any governmental or regulatory body on the other hand, which might reasonably
      be
      expected to have a Material Adverse Effect on the business operations or
      financial condition of the Company.

     

    
      
        
        

      

      
        D-10

        
          

        

      

      
        
        

      

    

    
       

      ARTICLE
        7.

      NEGATIVE
        COVENANTS

       

      The
        Company covenants and agrees that, from the date hereof until the Obligations
        have been fully paid and satisfied, the Company shall not, unless the Secured
        Party shall consent otherwise in writing:

       

      Section
        7.1. Indebtedness.

       

      Except
        as
        permitted under the Convertible Debenture Purchase Agreement, the Company
        shall
        not directly or indirectly permit, create, incur, assume, permit to exist,
        increase, renew or extend on or after the date hereof any indebtedness on
        its
        part, including commitments, contingencies and credit availabilities, or
        apply
        for or offer or agree to do any of the foregoing.

       

      Section
        7.2. Liens
        and Encumbrances.

       

      The
        Company shall not directly or indirectly make, create, incur, assume or permit
        to exist any assignment, transfer, pledge, mortgage, security interest or
        other
        lien or encumbrance of any nature in, to or against any part of the Pledged
        Property or of the Company’s capital stock, or offer or agree to do so, or own
        or acquire or agree to acquire any asset or property of any character subject
        to
        any of the foregoing encumbrances (including any conditional sale contract
        or
        other title retention agreement), or assign, pledge or in any way transfer
        or
        encumber its right to receive any income or other distribution or proceeds
        from
        any part of the Pledged Property or the Company’s capital stock; or enter into
        any sale-leaseback financing respecting any part of the Pledged Property
        as
        lessee, or cause or assist the inception or continuation of any of the
        foregoing.

       

    

    Section
      7.3. Certificate
      of Incorporation, By-Laws, Mergers, Consolidations, Acquisitions and
      Sales.

     

    Without
      the prior express written consent of the Secured Party, the Company shall not:
      (a) Amend its Certificate of Incorporation or By-Laws; (b) issue or sell
      its stock, stock options, bonds, notes or other corporate securities or
      obligations, (c) be a party to any merger, consolidation or corporate
      reorganization, (d) purchase or otherwise acquire all or substantially all
      of the assets or stock of, or any partnership or joint venture interest in,
      any
      other person, firm or entity, (e) sell, transfer, convey, grant a security
      interest in or lease all or any substantial part of its assets, nor
      (f) create any subsidiaries nor convey any of its assets to any
      subsidiary.

     

    Section
      7.4. Management,
      Ownership.

     

    The
      Company shall not materially change its ownership, executive staff or management
      without the prior written consent of the Secured Party. The ownership, executive
      staff and management of the Company are material factors in the Secured Party's
      willingness to institute and maintain a lending relationship with the
      Company.

     

    Section
      7.5. Dividends,
      Etc.

     

    The
      Company shall not declare or pay any dividend of any kind, in cash or in
      property, on any class of its capital stock, nor purchase, redeem, retire or
      otherwise acquire for value any shares of such stock, nor make any distribution
      of any kind in respect thereof, nor make any return of capital to shareholders,
      nor make any payments in respect of any pension, profit sharing, retirement,
      stock option, stock bonus, incentive compensation or similar plan (except as
      required or permitted hereunder), without the prior written consent of the
      Secured Party.

     

    
      
        
        

      

      
        D-11

        
          

        

      

      
        
        

      

    

    
       

      Section
        7.6. Guaranties;
        Loans.

       

      The
        Company shall not guarantee nor be liable in any manner, whether directly
        or
        indirectly, or become contingently liable after the date of this Agreement
        in
        connection with the obligations or indebtedness of any person or persons,
        except
        for (i) the indebtedness currently secured by the liens identified on the
        Pledged Property identified on Exhibit A hereto and (ii) the endorsement
        of
        negotiable instruments payable to the Company for deposit or collection in
        the
        ordinary course of business. The Company shall not make any loan, advance
        or
        extension of credit to any person other than in the normal course of its
        business.

       

      Section
        7.7. Debt.

       

      The
        Company shall not create, incur, assume or suffer to exist any additional
        indebtedness of any description whatsoever in an aggregate amount in excess
        of
        $25,000 (excluding any indebtedness of the Company to the Secured Party,
        trade
        accounts payable and accrued expenses incurred in the ordinary course of
        business and the endorsement of negotiable instruments payable to the Company,
        respectively for deposit or collection in the ordinary course of
        business).

       

    

    Section
      7.8. Conduct
      of Business.

     

    The
      Company will continue to engage, in an efficient and economical manner, in
      a
      business of the same general type as conducted by it on the date of this
      Agreement.

     

    Section
      7.9. Places
      of Business.

     

    The
      location of the Company’s chief place of business is 589 8th
      Avenue,
      18th
      Floor,
      New York, NY 10018. The Company shall not change the location of its chief
      place
      of business, chief executive office or any place of business disclosed to the
      Secured Party or move any of the Pledged Property from its current location
      without thirty (30) days' prior written notice to the Secured Party in each
      instance. 

     

    
      
        
        

      

      
        D-12

        
          

        

      

      
        
        

      

    

    
       

      ARTICLE
        8.

      MISCELLANEOUS

       

      Section
        8.1. Notices.

       

      All
        notices or other communications required or permitted to be given pursuant
        to
        this Agreement shall be in writing and shall be considered as duly given
        on:
        (a) the date of delivery, if delivered in person, by nationally recognized
        overnight delivery service or (b) five (5) days after mailing if
        mailed from within the continental United States by certified mail, return
        receipt requested to the party entitled to receive the same:

       

      
        	 	
                If
                  to the Secured Party:

              	
                Highgate
                  House, LLC

              
	 	 	
                8400
                  Normandale Lake Blvd.

              
	 	 	
                Minneapolis,
                  Minnesota

              
	 	 	
                Telephone: 

              
	 	 	
                Facsimile: 

              
	 	 	 
	 	
                With
                  a copy to:

              	
                Gottbetter
                  & Partners, LLP

              
	 	 	
                488
                  Madison Ave.

              
	 	 	
                New
                  York, New York 10022

              
	 	 	
                Attention: Adam
                  S. Gottbetter, Esq.

              
	 	 	
                Telephone:   
                  (212)
                  400-6900

              
	 	 	
                Facsimile:      
                  (212)
                  400-6901

              
	 	 	 

      

    

    
      	 	
              And
                if to GITN or PICI:

            	
              Global
                IT Holdings, Inc.

            
	 	 	
              589
                8th
                Avenue, 18th
                Floor

            
	 	 	
              New
                York, NY 10018

            
	 	 	
              Attn:
                Ralph Clark

            
	 	 	
              Tel:      
                (212) 983-5630 

              Fax:      
                (212) 972-4012 

            
	 	 	 
	 	
              With
                a copy to:

            	
              Anslow
                & Jaclin, LLP

            
	 	 	
              195
                Route 9 South, Suite 204

            
	 	 	
              Manalapan,
                NJ 07726

            
	 	 	
              Attn:
                Gregg Jaclin, Esq.

            
	 	 	
              Tel:   
                (732) 409-1212

            
	 	 	
              Fax:   
                (732) 577-1188

            

    

    

    Any
      party
      may change its address by giving notice to the other party stating its new
      address. Commencing on the tenth (10th) day
      after the giving of such notice, such newly designated address shall be such
      party’s address for the purpose of all notices or other communications required
      or permitted to be given pursuant to this Agreement.

     

    Section
      8.2. Severability.

     

    If
      any
      provision of this Agreement shall be held invalid or unenforceable, such
      invalidity or unenforceability shall attach only to such provision and shall
      not
      in any manner affect or render invalid or unenforceable any other severable
      provision of this Agreement, and this Agreement shall be carried out as if
      any
      such invalid or unenforceable provision were not contained herein.

     

    Section
      8.3. Expenses.

     

    In
      the
      event of an Event of Default, the Company will pay to the Secured Party the
      amount of any and all reasonable expenses, including the reasonable fees and
      expenses of its counsel, which the Secured Party may incur in connection with:
      (i) the custody or preservation of, or the sale, collection from, or other
      realization upon, any of the Pledged Property; (ii) the exercise or
      enforcement of any of the rights of the Secured Party hereunder or
      (iii) the failure by the Company to perform or observe any of the
      provisions hereof.

    
      
        
        

      

      
        D-13

        
          

        

      

      
        
        

      

    

    
       

      Section
        8.4. Waivers,
        Amendments, Etc.

       

      The
        Secured Party’s delay or failure at any time or times hereafter to require
        strict performance by Company of any undertakings, agreements or covenants
        shall
        not waiver, affect, or diminish any right of the Secured Party under this
        Agreement to demand strict compliance and performance herewith. Any waiver
        by
        the Secured Party of any Event of Default shall not waive or affect any other
        Event of Default, whether such Event of Default is prior or subsequent thereto
        and whether of the same or a different type. None of the undertakings,
        agreements and covenants of the Company contained in this Agreement, and
        no
        Event of Default, shall be deemed to have been waived by the Secured Party,
        nor
        may this Agreement be amended, changed or modified, unless such waiver,
        amendment, change or modification is evidenced by an instrument in writing
        specifying such waiver, amendment, change or modification and signed by the
        Secured Party.

       

    

    Section
      8.5. Continuing
      Security Interest.

     

    This
      Agreement shall create a continuing security interest in the Pledged Property
      and shall: (i) remain in full force and effect until payment in full of the
      Obligations or full conversion of the Convertible Debenture; and (ii) be
      binding upon the Company and its successors and heirs and (iii) inure to
      the benefit of the Secured Party and its successors and assigns. Upon the
      payment or satisfaction in full of the Obligations, the Company shall be
      entitled to the return, at its expense, of such of the Pledged Property as
      shall
      not have been sold in accordance with Section 5.2 hereof or otherwise
      applied pursuant to the terms hereof.

     

    Section
      8.6. Independent
      Representation.

     

    Each
      party hereto acknowledges and agrees that it has received or has had the
      opportunity to receive independent legal counsel of its own choice and that
      it
      has been sufficiently apprised of its rights and responsibilities with regard
      to
      the substance of this Agreement.

     

    Section
      8.7. Applicable
      Law: Jurisdiction.

     

    The
      parties hereto acknowledge that the transactions contemplated by this Agreement
      and the exhibits hereto bear a reasonable relation to the State of New York.
      The
      parties hereto agree that the internal laws of the State of New York shall
      govern this Agreement and the exhibits hereto. Any action to enforce the terms
      of this Agreement or any of its exhibits shall be brought exclusively in the
      state and/or federal courts situated in the County and State of New York.
      Service of process in any action by the Secured Party to enforce the terms
      of
      this Agreement may be made by serving a copy of the summons and complaint,
      in
      addition to any other relevant documents, by commercial overnight courier to
      the
      Company at its principal address set forth in this Agreement. .

     

    
      
         

      

      
        D-14

        
          

        

      

      
         

      

    

     

    Section
      8.8. Waiver
      of Jury Trial.

     

    AS
      A
      FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS AGREEMENT AND TO
      MAKE THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY HEREBY WAIVES
      ANY
      RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS
      AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS RELATED TO THIS TRANSACTION.

     

    Section
      8.9. Entire
      Agreement.

     

    This
      Agreement constitutes the entire agreement among the parties and supersedes
      any
      prior agreement or understanding among them with respect to the subject matter
      hereof.

     

    
      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

    

    
      
        
        

      

      
        D-15

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, the
      parties hereto have executed this Agreement as of the date first above
      written.

    

    
      	 	
              GITN:

            
	 	
              GLOBAL
                IT HOLDINGS, INC.

            
	 	 
	 	
              By:_________________________________      

            
	 	
              Name: 
                Craig Press 

            
	 	
              Title: 
                Chairman and Senior Vice President

            
	 	 
	 	
              PICI:

            
	 	
              PLATINUM
                IT CONSULTING, INC.

            
	 	 
	 	
              By:_________________________________

            
	 	
              Name: 

            
	 	
              Title:
                

            
	 	 
	 	
              SECURED
                PARTY:

            
	 	
              HIGHGATE
                HOUSE, LLC

            
	 	 
	 	
              By: HH
                Advisors, LLC, its managing 

              member

            
	 	
              By: Spencer
                Investment Group, Inc., 

              its
                managing member

            
	 	 
	 	
              By:_________________________________      

            
	 	
              Name: 
                Adam S. Gottbetter

            
	 	
              Title: President

            

    

     

    
      
        
        

      

      
        D-16

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    DEFINITION
      OF PLEDGED PROPERTY

     

    For
      the
      purpose of securing prompt and complete payment and performance by the Company
      of all of the Obligations, the Company unconditionally and irrevocably hereby
      grants to the Secured Party a continuing security interest in and to, and lien
      upon, the following Pledged Property of the Company:

     

    (a) all
      goods
      of the Company, including, without limitation, machinery, equipment, furniture,
      furnishings, fixtures, signs, lights, tools, parts, supplies and motor vehicles
      of every kind and description, now or hereafter owned by the Company or in
      which
      the Company may have or may hereafter acquire any interest, and all
      replacements, additions, accessions, substitutions and proceeds thereof, arising
      from the sale or disposition thereof, and where applicable, the proceeds of
      insurance and of any tort claims involving any of the foregoing;

     

    (b) all
      inventory of the Company, including, but not limited to, all goods, wares,
      merchandise, parts, supplies, finished products, other tangible personal
      property, including such inventory as is temporarily out of Company’s custody or
      possession and including any returns upon any accounts or other proceeds,
      including insurance proceeds, resulting from the sale or disposition of any
      of
      the foregoing;

     

    (c) contract
      rights and general intangibles of the Company, including, without limitation,
      goodwill, trademarks, trade styles, trade names, leasehold interests,
      copyrights, deposit accounts whether now owned or hereafter created; excluding
      partnership or joint venture interests, patents and patent applications now
      owned or hereafter created;

     

    (d) all
      documents, warehouse receipts, instruments and chattel paper of the Company
      whether now owned or hereafter created;

     

    (e) all
      accounts and other receivables, instruments or other forms of obligations and
      rights to payment of the Company (herein collectively referred to as
“Accounts”),
      together with the proceeds thereof, all goods represented by such Accounts
      and
      all such goods that may be returned by the Company’s customers, and all proceeds
      of any insurance thereon, and all guarantees, securities and liens which the
      Company may hold for the payment of any such Accounts including, without
      limitation, all rights of stoppage in transit, replevin and reclamation and
      as
      an unpaid vendor and/or lienor, all of which the Company represents and warrants
      will be bona fide and existing obligations of its respective customers, arising
      out of the sale of goods by the Company in the ordinary course of
      business;

     

    (f) to
      the
      extent assignable, all of the Company’s rights under all present and future
      authorizations, permits, licenses and franchises issued or granted in connection
      with the operations of any of its facilities excluding sublicense agreements
      now
      owned or hereafter created;

     

    (g) all
      products and proceeds (including, without limitation, insurance proceeds) from
      the above-described Pledged Property.

     

    (h)
      20 %
      ownership in International Foam Solutions, Inc. (see attached bylaws and stock
      certificate).

     

    
      
        
        

      

      
        D-17SECURITY
      AGREEMENT

     

    THIS
      SECURITY AGREEMENT
      (the
      "Aaeement"), is
      entered
      into
      and
      made
      effective
      as of August 24, 2004,
      by
      and among GLOBAL
      IT HOLDINGS, INC., a
      Nevada
corporation,
      with its principal office located at 535 5th
      Avenue,
      Suite 1004, New York, NY 10017 (the "Company"), and
      ADVANTAGE
      CAPITAL DEVELOPMENT CORP. ("Secured
      Party"),
      a Nevada corporation with its principal office at 2999 NE 191" Street, NW
      Aventura, Florida
      33180.

     

    WHEREAS,
      the
      Company shall issue and sell to the Secured Party, and the Secured Party
      shall purchase Five Hundred Thousand Dollars ($500,000) of 6.5% secured
      convertible debentures (the "Convertible
      Debentures"),
      which
      shall be convertible into shares of
      the
Company's
      common stock, $.001
      par
      value (the "Common
      Stock") (as
      converted, the "Conversion Shares"),
      for a
      total purchase price of up to Five Hundred Thousand Dollars
      ($500,000);

     

    WHEREAS,
      to
      induce
      the Secured Party to enter into the transaction contemplated by the
      Secured Convertible Debenture and the Registration Rights Agreement
      (collectively referred to
      as the
"Transaction
      Documents"), the
      Company hereby grants to the Secured Party a security interest
      in and to the pledged property identified on Exhibit
      "A" hereto
      (collectively referred to as the "Pledged
      Property")
      until
      the satisfaction of the Obligations, as defined herein below.

     

    NOW,
      THEREFORE, in
      consideration of the premises and the mutual covenants herein contained,
      and for other good and valuable consideration, the adequacy and receipt of
      which
are
      hereby
      acknowledged, the parties hereto hereby agree as follows:

     

    ARTICLE
      1. 

     

    DEFINITIONS
      AND INTERPRETATIONS 

     

    Section
      1.1. Recitals.

    

    The
      above
      recitals are true and correct and are incorporated herein, in their entirety,
      by
      this
      reference.

     

    Section
      1.2. Interpretations.

    

    Nothing
      herein expressed or implied is intended or shall be construed to confer upon
      any
      person other than the Secured Party any right, remedy or claim under or by
      reason hereof.

     

    Section
      1.3. Obligations
      Secured.

    

    The
      obligations secured hereby are any and all obligations of the Company now
      existing or
      hereinafter incurred to the Secured Party, whether oral or written and whether
      arising before, on
      or
      after the date hereof including, without limitation, those obligations of the
      Company to the
      Secured
      Party under the Secured Convertible Debenture and the Registration Rights
      Agreement, and any other amounts now or hereafter owed to the Secured Party
      by
      the Company thereunder or hereunder (collectively, the "Obligations").

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      2.

     

    PLEDGED
      COLLATERAL,
      ADMINISTRATION
      OF
      COLLATERAL

    AND
      TERMINATION OF
      SECURITY INTEREST

     

    Section
      2.1. Pledged Property.

    

    (a)
      Company
      hereby pledges to the Secured Party, and creates in the Secured Party
      for
      its benefit, a security interest for such time until the Obligations are paid
      in
      full, in
      and
to
      all of
      the property of the Company as set forth in Exhibit
      "A" attached
      hereto (collectively, the "Pledged
      Property"):

     

    The
      Pledged Property, as set forth in Exhibit
      "A" attached
      hereto, and the products thereof
      and the proceeds of all such items are hereinafter collectively referred to
      as
      the "Pledged Collateral."

     

    (b)
      Simultaneously
      with the execution and delivery of this Agreement, the Company shall make,
      execute, acknowledge, file, record and deliver to the Secured Party any
      documents reasonably requested by the Secured Party to perfect its
      security interest in the Pledged
      Property. Simultaneously
      with the execution and delivery of this Agreement, the Company shall make,
      execute, acknowledge and deliver to the Secured Party such documents
and
      instruments, including, without limitation, financing statements, certificates,
      affidavits and forms as may, in the Secured Party's reasonable judgment, be
      necessary to effectuate, complete
      or
      perfect, or to continue and preserve, the security interest of the Secured
      Party
      in the Pledged
      Property,
      and the Secured Party shall hold such documents and instruments as
      secured party, subject
      to the terms and conditions contained herein.

     

    Section
      2.2. Rights;
      Interests; Etc.

    

    (a) So
      long
      as no Event of Default (as hereinafter defined) shall have occurred and be
      continuing:

     

    (i)
      the
      Company shall be entitled to exercise any and all
      rights pertaining
      to the Pledged Property or any part thereof for any purpose not inconsistent
      with
      the
terms
      hereof, and

     

    (ii) the
      Company shall be entitled to receive and retain any and all payments paid or
      made in respect of the Pledged Property.

     

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

     

    (i)
      All
      rights of the Company to exercise the rights which it would otherwise be
      entitled to exercise pursuant to Section 2.2(a)(i) hereof
      and to receive payments which
      it
      would otherwise be authorized to receive and retain pursuant to Section
      2.2(a)(ii) hereof shall
      be
      suspended, and all such rights shall thereupon become vested in the Secured
      Party who shall
      thereupon have the sole right to exercise such rights and to receive and hold
      as
      Pledged Collateral
      such payments; provided,
      however, that
      if
      the Secured Party shall become entitled and shall
      elect to exercise its right to realize on the Pledged Collateral pursuant to
      Article 5 hereof,
      then
      all
      cash sums received by the Secured Party, or held by Company for the benefit
      of
      the
Secured
      Party and paid over pursuant to Section 2.2(b)(ii) hereof, shall
      be
      applied against any outstanding Obligations; and

    
       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

     

    (ii)
      All
      interest,
      dividends, income
      and
      other
      payments
      and distributions
      which
      are
      received
      by
      the
      Company
      contrary to
      the
      provisions
      of
      Section
      2.2(b)(i) hereof shall be received in trust for the benefit of the Secured
      Party, shall
      be
segregated
      from other property of the Company and shall be forthwith paid over to the
      Secured
      Party; or

    

    (iii)
      The
      Secured Party in its sole discretion shall be authorized to sell any
      or
      all of the Pledged Property at public or private sale in order to recoup all
      of
      the outstanding principal
      plus accrued interest owed pursuant to the Convertible Debenture as described
      herein

    

    (c) Each
      of
      the following events shall constitute a default under this Agreement
      (each an "Event
      of Default"):

    

    (i)
      any
      default, whether in whole or in part, shall occur in the payment to
      the
      Secured Party of principal, interest or other item comprising the Obligations
      as
      and
      when due
      or
      with respect to any other debt or obligation of the Company to a party other
      than
      the
Secured
      Party;

    

    (ii)
      any
      default, whether in whole or in part, shall occur in the due observance
      or performance of any obligations or other covenants, terms
      or
      provisions to be performed
      under this Agreement or the Transaction Documents;

    

    (iii)
      the
      Company shall: (1) make a general assignment for the benefit of
      its
      creditors; (2) apply for or consent to the appointment of a receiver,
trustee,
      assignee, custodian,
      sequestrator, liquidator or similar official for itself or any of its
assets
      and properties; (3)
      commence a voluntary case for relief as a debtor under the United States
      Bankruptcy Code; (4)
      file
      with or otherwise submit to any governmental authority any petition,
answer
      or
      other document seeking: (A)
      reorganization, (B) an arrangement with creditors or (C) to take advantage
      of any other present or future applicable law respecting bankruptcy,
      reorganization, insolvency, readjustment of debts, relief of debtors,
      dissolution or liquidation; (5) file or otherwise submit any answer or other
      document admitting or failing to contest the material allegations
      of a petition or other document filed or otherwise submitted
      against it in any proceeding under any such applicable law, or (6) be
      adjudicated a bankrupt or insolvent by a court of competent jurisdiction;
      or

    

    (iv)
      any
      case,
      proceeding or other action shall be commenced against the Company for the
      purpose of effecting, or an order, judgment or decree shall be entered by any
      court of competent jurisdiction approving (in whole or in part) anything
      specified in Section
      2.2(c)(iii) hereof, or any receiver, trustee, assignee, custodian, sequestrator,
      liquidator or other
      official shall be appointed with respect to the Company, or shall be appointed
      to
      take
      or shall
      otherwise acquire possession or control of all or
      a
      substantial part of the assets and properties
      of the Company, and any of the foregoing shall continue unstayed and in effect
      for any
      period of thirty (30) days.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      3.

     

    ATTORNEY-IN-FACT;
      PERFORMANCE 

     

    Section
      3.1. Secured
      Party Appointed Attorney-In-Fact.

    

    Upon
      the
      occurrence of an Event of Default, the Company hereby appoints the Secured
      Party
      as
      its attorney-in-fact, with full authority in the place and stead of the Company
      and in
      the
name
      of
      the Company or otherwise, from time to time in the Secured Party's discretion
      to
take
      any
      action and to execute any instrument which the Secured Party may reasonably
      deem
      necessary to accomplish the purposes of this Agreement, including, without
      limitation, to
      receive and
      collect all instruments made payable to the Company representing any payments
      in
      respect of
      the
      Pledged Collateral or any part thereof and to give full discharge for
      the
      same. The
      Secured
      Party may demand, collect, receipt for, settle, compromise, adjust, sue for,
      foreclose,
      or realize
      on the Pledged Property as and when the Secured Party may determine.
To
      facilitate collection,
      the Secured Party may notify account debtors and obligors on any Pledged
      Property or
      Pledged Collateral to make payments directly to the Secured Party.

     

    Section
      3.2. Secured
      Party May Perform.

    

    If
      the
      Company fails to perform any agreement contained herein, the Secured Party,
      at
      its option,
      may itself perform, or cause performance of, such agreement, and the expenses
      of
      the Secured
      Party incurred in connection therewith shall be included in
      the
      Obligations secured hereby
      and payable by the Company under Section 8.3.

    

    ARTICLE
      4.
      

     

    REPRESENTATIONS
      AND WARRANTIES 

     

    Section
      4.1. Authorization;
      Enforceability.

    

    Each
      of
      the parties hereto represents and warrants that it has taken all action
      necessary to authorize
      the execution, delivery and performance of
      this
      Agreement and the transactions contemplated hereby; and upon execution and
      delivery, this Agreement shall constitute
      a valid and binding obligation of the respective party, subject to applicable
      bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
      creditors'
      rights or by the principles governing
      the availability of equitable remedies.

     

    Section
      4.2. Ownership
      of Pledged Property.

    

    The
      Company warrants and represents that it is the legal and beneficial owner
      of
      the Pledged
      Property free and clear of any lien, security
      interest, option or other charge or encumbrance
      except for the security interest created by this Agreement.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    ARTICLE
      5.

     

    DEFAULT;
      REMEDIES; SUBSTITUTE COLLATERAL 

     

    Section
      5.1. Default
      and Remedies.

    

    (a)
      If
      an
      Event of Default described in Section 2.2(c)(i)
      and (ii) occurs, then in each such case the Secured Party may declare the
      Obligations to be due and payable immediately, by a notice in writing to the
      Company, and upon any such declaration, the Obligations shall become immediately
      due and payable. If
      an
      Event of Default described in Sections
      2.2(c)(iii) or (iv) occurs and is continuing for the period set forth therein,
      then the Obligations
      shall automatically become immediately due and payable without
      declaration or other
      act
      on the part of the Secured Party.

    

    (b)
      Upon
      the
      occurrence of an Event of Default, the Secured Party shall,: (i)
      be
      entitled to receive all distributions with respect to the Pledged Collateral,
      (ii)
      to
      cause the Pledged
      Property to be transferred into the name of the Secured Party or its nominee,
      (iii) to dispose of the Pledged Property, and (iv) to realize upon any and
      all
      rights in the Pledged Property then held by the Secured Party.

     

    Section
      5.2. Method
      of Realizing Upon the Pledged Property: Other
      Remedies.

    

    Upon
      the
      occurrence of an Event of Default, in addition to any rights and
      remedies available
      at law or in equity, the following provisions shall govern the Secured Party's
      right
      to
realize
      upon the Pledged Property:

     

    (a)
      Any
      item
      of the Pledged Property may be sold for cash or other value in any
      number of lots at brokers board, public auction or private sale and may be
      sold
      without demand,
      advertisement or notice (except that the Secured Party shall give the Company
      ten
      (10)
      days' prior written notice of the time and place or of the time after which
      a
      private sale
      may
      be
      made (the "Sale
      Notice")), which
      notice period shall in any event is hereby agreed to be commercially
      reasonable. At
      any
      sale or sales of the Pledged Property, the Company may bid for
      and
      purchase the whole or any part of the Pledged Property and, upon compliance
      with
      the terms
      of
      such sale, may hold, exploit and dispose of the same without further
      accountability to
      the
      Secured Party. The
      Company will execute and deliver, or cause to be executed and
      delivered,
      such instruments, documents, assignments, waivers, certificates, and affidavits
      and supply or cause to be supplied such further information and take such
      further action as the Secured
      Party reasonably shall require in connection with any such sale.

    

    (b)
      Any
      cash being held by the Secured Party as Pledged Collateral and all cash
      proceeds received by the Secured Party in respect of, sale of, collection
      from, or other realization
      upon all or any part of the Pledged Collateral shall be applied as
      follows:

    

    (i) to
      the
      payment of all amounts due the Secured Party for the expenses reimbursable
      to it
      hereunder or owed to it pursuant to Section 8.3 hereof;

    

    (ii) to
      the
      payment of the Obligations then due and unpaid.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (iii) the
      balance, if any, to the person or persons entitled thereto, including, without
      limitation, the Company.

    

    (c)
      In
      addition to all of the rights and remedies which the Secured Party may
have
      pursuant to this Agreement, the Secured Party shall have all of the rights
      and
      remedies provided by law, including, without limitation, those under the Uniform
      Commercial Code.

    

    (i)
      If
      the
      Company fails to pay such amounts due upon the occurrence of
      an
      Event of Default which is continuing, then the Secured Party may institute
      a
      judicial proceeding
      for the collection of the sums so due and unpaid, may prosecute such proceeding
      to
      judgment
      or final decree and may enforce the same against the Company and collect the
      monies adjudged
      or decreed to be payable in the manner provided by law out
      of
      the property of Company,
      wherever situated.

    

    (ii)
      The
      Company agrees that it shall be liable for any reasonable fees, expenses
      and costs incurred by the Secured Party in connection with enforcement,
      collection and
      preservation
      of the Transaction Documents, including, without limitation, reasonable
      legal fees and
      expenses, and such amounts shall be deemed included as Obligations secured
      hereby and
      payable
      as set forth in Section 8.3 hereof.

    

    Section
      5.3. Proofs
      of Claim.

     

    In
      case
      of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization,
      arrangement, adjustment, composition or other judicial proceeding relating
      to
      the
Company
      or the property of the Company or of such other obligor or its creditors,
the
      Secured Party
      (irrespective of whether the Obligations shall then be due and payable as
      therein expressed or by declaration or otherwise and irrespective of whether
      the
      Secured Party shall have made any
      demand
      on
      the Company for the payment of the Obligations), subject to the rights of
      Previous Security Holders, shall be entitled and empowered, by intervention
      in
      such proceeding or otherwise:

    

    (i)
      to
      file
      and prove a claim for the whole amount of the Obligations and
      to
      file such other papers or documents as may be necessary or advisable in order
      to
      have the claims
      of
      the Secured Party (including any claim for the reasonable legal fees and
      expenses and
      other
      expenses paid or incurred by the Secured Party permitted hereunder and
of
      the
      Secured Party
      allowed in such judicial proceeding), and

    

    (ii)
      to
      collect and receive any monies or other property payable or deliverable
      on any such claims and to distribute the same; and any custodian, receiver,
      assignee,
      trustee,
      liquidator, sequestrator or other similar official in any such judicial
      proceeding is
      hereby
authorized
      by the Secured Party to make such payments to the Secured Party and,
in
      the
      event that the Secured Party shall consent to the making of such payments
      directed to
      the
      Secured Party,
      to
      pay to the Secured Party any amounts for expenses due it hereunder.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    Section
      5.4. Duties
      Regarding Pledged Collateral.

    

    The
      Secured Party shall have no duty as to the collection or protection of the
      Pledged Property
      or any income thereon or as to the preservation of any rights pertaining
      thereto, beyond
      the
      safe
      custody and reasonable care of any of the Pledged Property actually in the
      Secured Party's
      possession.

    

    ARTICLE
      6.

     

    AFFIRMATIVE
      COVENANTS

    

    The
      Company covenants and agrees that, from the date hereof and until the
      Obligations have
      been
      fully paid and satisfied, unless the Secured Party shall consent otherwise
      in
      writing (as
      provided
      in Section 8.4 hereof):

    

    Section
      6.1. Existence,
      Properties, Etc.

     

    (a)
      The
      Company shall do, or cause to be done, all things, or proceed with due
diligence
      with any actions or courses of action, that may be reasonably necessary (i)
      to
maintain
      Company's due organization, valid existence and good standing under the laws
      of
      its
      state of incorporation,
      and (ii) to preserve and keep in full force and effect all qualifications,
      licenses
      and registrations
      in those jurisdictions in which the failure to do so could have a Material
      Adverse
      Effect (as defined below); and (b) the Company shall not do, or
      cause
      to be done, any act impairing the Company's corporate power or authority (i)
      to
      carry on the Company's business as
      now
      conducted, and (ii) to execute or deliver this Agreement or any other document
      delivered in
      connection
      herewith, including, without limitation, any UCC-1 Financing Statements required
      by the
      Secured Party to which it is or will be a party, or perform any of its
      obligations hereunder or
      thereunder.
      For purpose of this Agreement, the term "Material
      Adverse Effect" shall
      mean any material
      and adverse affect as determined by Secured Party in its
      sole
      discretion, whether individually
      or in the aggregate, upon (a) the Company's assets, business, operations,
properties
      or
      condition, financial or otherwise; (b) the Company's to make payment as and
      when
      due of all or any part of the Obligations; or (c) the Pledged
      Property.

    

    Section
      6.2. Financial
      Statements and Reports.

    

    The
      Company shall furnish to the Secured Party such financial data as the Secured
      Party may
      reasonably request. Without
      limiting the foregoing, the Company shall furnish to the
      Secured
      Party (or cause to be. furnished
      to the Secured Party) the following:

    

    (a)
      as
      soon as practicable and in any event within ninety (90) days after the
end
      of
      each fiscal year of the Company, the balance sheet of the Company as of the
      close of such fiscal
      year, the statement of earnings and retained earnings of the Company as
of
      the
      close of such
      fiscal year, and statement of cash flows for the Company for such fiscal year,
      all in reasonable detail, prepared in accordance
      with generally accepted accounting
      principles consistently
      applied, certified by the chief executive and chief financial officers
of
      the
      Company as
      being
      true and correct and accompanied by a certificate of the chief executive
and
      chief
financial
      officers of the Company, stating that the Company has kept, observed, performed
      and
      fulfilled
      each covenant, term and condition of this Agreement during such fiscal year
      and
      that no
      Event
      of
      Default hereunder has occurred and is continuing, or
      if an
      Event of Default has occurred and is continuing, specifying the nature of same,
      the period of existence of
      same
      and the
      action the Company proposes to take in connection therewith;

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (b)
      within
      thirty (30) days of the end of each calendar month, a balance sheet of
      the
      Company as of the close of such month, and statement of earnings and retained
      earnings of the
      Company as of the close of such month, all in reasonable detail, and prepared
      substantially in accordance
      with generally accepted accounting principles consistently applied, certified
      by
      the chief
      executive and chief financial officers of the Company as being true and correct;
      and

     

    (c)
      promptly
      upon receipt thereof, copies of all accountants'
      reports and accompanying
      financial reports submitted to the Company
      by independent accountants in connection
      with each annual examination of the Company.

     

    Section
      6.3. Accounts
      and Reports.

    

    The
      Company shall maintain a standard system of accounting in
      accordance with generally
      accepted accounting principles consistently applied and provide, at its
sole
      expense, to the
      Secured Party the following:

     

    (a)
      as
      soon
      as available, a copy of any notice or other communication alleging any
      nonpayment or other material breach or default, or any foreclosure or other
      action respecting any
      material portion of its assets and properties, received respecting any of the
      indebtedness of the
      Company in excess of $15,000 (other than the Obligations), or any demand or
      other request for
      payment under any guaranty, assumption, purchase agreement
      or similar agreement or arrangement
      respecting the indebtedness or obligations of others in excess of $15,000,
      including
      any
      received from any person acting on behalf of the Secured Party or beneficiary
      thereof; and

     

    (b)
      within
      fifteen (15) days after the making of each submission or filing, a copy
      of
      any report, financial statement, notice or other document, whether periodic
      or
      otherwise, submitted
      to the shareholders of the Company, or submitted to or filed by the Company
      with
      any governmental
      authority involving or affecting (i) the Company that could have a Material
      Adverse Effect; (ii) the Obligations; (iii) any part of the Pledged Collateral;
      or
      (iv)
      any of the transactions
      contemplated in this Agreement or the Transaction Documents.

     

    Section
      6.4. Maintenance
      of Books and Records; Inspection.

    

    The
      Company shall maintain its books, accounts
      and records in accordance with generally
      accepted accounting principles consistently applied, and permit the Secured
      Party, its officers
      and employees and any professionals designated by the Secured Party in writing,
      at
      any
time
      to
      visit and inspect any of its properties (including but not limited to the
      collateral security
      described
      in the Transaction Documents), corporate books and financial records,
and
      to
      discuss its accounts, affairs and finances with any employee, officer or
      director thereof.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Section
      6.5. Maintenance
      and Insurance.

    

    (a)
      The
      Company shall maintain or cause to be maintained, at
      its
      own expense,
      all of its assets and properties in good working order and
      condition, making all necessary
      repairs thereto and renewals and replacements thereof.

    

    (b)
      The
      Company shall maintain or cause to be maintained, at
      its
      own expense,
      insurance in form, substance and amounts (including deductibles), which the
      Company
      deems reasonably necessary to the Company's business, (i) adequate to insure
      all
      assets and properties
      of the Company, which assets and properties are of a character usually
insured
      by persons
      engaged in the same or similar business against loss or damage resulting
from
      fire
      or other
      risks included in an extended coverage policy; (ii) against public liability
      and
      other tort claims
      that may be incurred by the Company; (iii) as may be required by
      the
      Transaction Documents
      and/or applicable law and (iv) as may be reasonably requested by Secured Party,
      all
      with
      adequate, financially sound and reputable insurers.

     

    Section
      6.6. Contracts
      and Other Collateral.

    

    The
      Company shall perform all of its obligations under or with respect to each
      instrument,
      receivable, contract and other intangible included in the Pledged Property
      to
      which
the
      Company is now or hereafter will be party on a timely basis and in the manner
      therein
      required,
      including, without limitation, this Agreement.

     

    Section
      6.7. Defense
      of Collateral, Etc.

    

    The
      Company shall defend and enforce its right, title and interest in and to any
      part of: (a)
      the
      Pledged Property; and (b) if not included within the Pledged Property
,
      those
      assets and properties whose loss could have a Material Adverse Effect, the
      Company shall defend the Secured
      Party's right, title and interest in and to each and every part of the Pledged
      Property,
      each
      against all manner of claims and demands on a timely basis to the full extent
      permitted by applicable
      law.

     

    Section
      6.8. Payment
      of Debts, Taxes, Etc.

    

    The
      Company shall pay, or cause to be paid, all of its indebtedness and other
      liabilities and
      perform, or cause to be performed, all of its obligations in accordance with
      the
      respective terms thereof, and pay and discharge, or cause to be paid or
      discharged, all taxes, assessments
      and
      other
      governmental charges and levies imposed upon it, upon any of its assets and
      properties on or before the last day on which the same may be paid without
      penalty, as well as pay all other lawful claims (whether for services, labor,
      materials, supplies or otherwise) as and when due

     

    Section
      6.9. Taxes
      and Assessments: Tax Indemnity.

    

    The
      Company shall (a) file all tax returns and appropriate schedules thereto
      that are required
      to be filed under applicable law, prior to the date of delinquency, (b) pay
      and
discharge
      all
      taxes, assessments and governmental charges or levies imposed upon the Company,
      upon
      its
income
      and profits or upon any properties belonging to it, prior to the date on which
      penalties attach
      thereto, and (c) pay all taxes, assessments and governmental charges or levies
      that, if unpaid,
      might become a lien or charge upon any of its properties; provided,
      however, that
      the
      Company in good faith may contest any such tax, assessment, governmental charge
      or levy described
      in the foregoing
      clauses
      (b) and (c) so long as appropriate reserves are maintained with respect
      thereto.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    Section
      6.10. Compliance
      with Law and Other Agreements.

    

    The
      Company shall maintain its business operations and property owned or
      used
      in connection therewith in compliance with (a)
      all
      applicable federal, state and local laws,
      regulations
      and ordinances governing such business operations and the use and
      ownership of such
      property, and (b) all agreements, licenses, franchises, indentures and
      mortgages to which the
      Company is a party or by which the Company or any of its properties is bound.
      Without
      limiting
      the foregoing,
      the
      Company shall pay all of its indebtedness promptly in accordance with
      the
      terms thereof.

    

    Section
      6.11. Notice
      of Default.

    

    The
      Company shall give written notice to the Secured Party of the occurrence
of
      any
default
      or Event of Default under this Agreement, the Transaction Documents or any
      other
      Loan Instrument
      or any other agreement of Company for the payment of money, promptly upon
the
      occurrence thereof.

    

    Section
      6.12. Notice
      of Litigation.

    

    The
      Company shall give notice, in writing, to the Secured Party of (a) any actions,
      suits
      or
      proceedings wherein the amount at issue is in excess of $50,000, instituted
      by
      any persons against the Company, or affecting any of the assets of the Company,
      and
      (b)
      any dispute, not resolved
      within fifteen (15) days of the commencement thereof, between the Company on
      the
      one hand and any governmental or regulatory body on the other hand, which might
      reasonably be expected
      to have a Material Adverse Effect on the business operations or financial
condition
      of the
      Company.

    

    ARTICLE
      7.

     

    NEGATIVE
      COVENANTS

    

    The
      Company covenants and agrees that, from the date hereof until the Obligations
      have been
      fully paid and satisfied, the Company shall not, unless the Secured
      Party shall consent otherwise
      in writing:

    

    Section
      7.1. Indebtedness.

     

    The
      Company shall not directly or indirectly permit, create, incur,
      assume, permit to exist,
      increase, renew or extend on or after the date hereof any indebtedness on its
      part, including commitments,
      contingencies and credit availabilities, or apply for or offer or agree
to
      do any
      of the
      foregoing.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Section
      7.2. Liens
      and Encumbrances.

    

    The
      Company shall not directly or indirectly make, create, incur, assume or permit
      to exist
      any
      assignment, transfer, pledge, mortgage, security interest or other lien
or
      encumbrance of
      any
      nature in, to or against any part of the Pledged Property or of the Company's
      capital stock, or
      offer
      or agree to do so, or own or acquire or agree to acquire any asset or property
      of
      any
character
      subject to any of the foregoing encumbrances (including any conditional sale
      contract or
      other
      title retention agreement), or assign, pledge or in any way transfer or encumber
      its right
      to
      receive any income or other distribution or proceeds from any part of the
      Pledged Property or the
      Company's capital stock; or enter into any sale-leaseback financing respecting
      any part of the Pledged
      Property as
      lessee, or cause or assist the inception or continuation of any of the
foregoing.

    

    Section
      7.3. Articles,
      By-Laws, Mergers, Consolidations, Acquisitions and Sales.

    

    Without
      the prior express written consent of the Secured Party, the Company shall not:
      (a) Amend its Articles of Incorporation or By-Laws; (b) issue or sell its
stock,
      stock options, bonds,
      notes or other corporate securities or obligations; (c) be a party to any
      merger, consolidation
      or corporate reorganization, (d) purchase or otherwise acquire all
      or
      substantially all of the assets or stock of, or any partnership or joint venture
      interest in, any other person, firm
      or
      entity, (e) sell, transfer, convey, grant a security interest in or lease all
      or
      any substantial part
      of
      its
      assets, nor (f) create any subsidiaries nor convey any of its assets to any
      subsidiary.

     

    Section
      7.4. Management,
      Ownership.

    

    The
      Company shall not materially change its ownership, executive staff or management
      without
      the prior written consent of the Secured Party. The
      ownership, executive staff and management
      of the Company are material factors in the Secured Party's willingness
to
      institute and
      maintain a lending relationship with the Company.

     

    Section
      7.5. Dividends,
      Etc.

    

    The
      Company shall not declare or pay any dividend of any kind, in cash or in
      property, on
      any
      class of its capital stock, nor purchase, redeem, retire or otherwise acquire
      for
      value
      any shares of such stock, nor make any distribution of any kind in respect
      thereof, nor
      make
      any return
      of
      capital to shareholders, nor make any payments in respect of
      any
      pension, profit sharing, retirement, stock option, stock bonus, incentive
      compensation or similar plan (except as required
      or permitted hereunder), without the prior written consent of the Secured
      Party.

     

    Section
      7.6. Guaranties;
      Loans.

    

    The
      Company shall not guarantee nor be liable in any manner, whether
      directly or indirectly,
      or become contingently liable after the date of this Agreement in connection
      with
      the
obligations
      or indebtedness of any person or persons, except for (i) the indebtedness
currently
      secured by the liens identified on the Pledged Property identified on Exhibit
      A
      hereto and
      (ii)
      the endorsement
      of negotiable instruments payable to the Company for deposit or collection
      in
      the
      ordinary course of business. The Company shall not make any loan, advance or
      extension of credit
      to
      any person other than in the normal course of its business.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Section
      7.7. Debt.

     

    The
      Company shall not create, incur,
      assume or suffer to exist any additional
      indebtedness of any description whatsoever in an aggregate amount
      in
      excess of $25,000 (excluding
      any indebtedness of the Company to the Secured Party, trade accounts payable
      and
      accrued
      expenses incurred in the ordinary course of business and the endorsement of
      negotiable instruments
      payable to the Company, respectively for deposit or collection in the ordinary
      course of business).

    

    Section
      7.8. Conduct
      of Business.

    

    The
      Company will continue to engage, in an efficient and economical manner,
      in a business
      of the same general type as conducted by it on the date of this
      Agreement.

    

    Section
      7.9. Places
      of Business.

    

    The
      location of the Company's chief place of business is 535 5th
      Avenue,
      Suite 1004, New
      York,
      NY 10017. The Company shall not change the location of its chief place of
      business, chief
      executive office or any place of business disclosed to the Secured Party or
      move
      any of the Pledged
      Property from its current location without thirty (30) days' prior written
      notice
      to
      the Secured
      Party in each instance.

    

    ARTICLE
      8. 

     

    MISCELLANEOUS

    

    Section
      8.1. Notices.

     

    All
      notices or other communications required or permitted to be given pursuant
      to this Agreement shall be in writing and shall be considered as duly given
      on:
(a)
      the
date
      of
      delivery, if delivered in person, by nationally recognized overnight
delivery
      service or (b)
      five
      (5) days after mailing if mailed from within the continental United States
      by
      certified mail,
      return receipt requested to the party entitled to receive the same:

     

     

    
      	
              If
                to the Company, to:

            	Global IT Holdings Inc
	 	535 5th
              Avenue,
              Suite 1004
	 	
              New
                York, NY 10017

            

    

    
      	 	
              Attention:

            	
              Lloyd
                Glick, President

            
	 	
              Telephone:

            	
              (212)
                983-5630

            
	 	
              Facsimile:

            	
              (212)
                972-4712

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      
        	If to the Secured Party,
                to:	
                Advantage
                  Capital Development Corp. 

                2999
                  NE 191st
                  Street, Penthouse 2 

                Aventura,
                  Florida 33180 

                Attention:
                  Jeff Sternberg, President 

                Telephone:
                  (561)692-1832 

                Telefax:
                  (561)692-1556

              

      

       

    

    Any
      party
      may change its address by giving notice to the other party stating its
      new
address.
      Commencing on the tenth (10th)day
      after the giving of such notice, such newly designated
      address shall be such party's address for
      the
      purpose of all notices or other communications
      required or permitted to be given pursuant to this Agreement.

     

    Section
      8.2. Severability.

    

    If
      any
      provision of this Agreement shall be held invalid or unenforceable, such
      invalidity or
      unenforceability shall attach only to such provision and shall not in
any
      manner affect or render
      invalid or unenforceable any other severable provision of this Agreement, and
      this Agreement shall be carried out as if any such invalid or unenforceable
      provision were not contained herein.

    

    Section
      8.3. Expenses.

    

    In
      the
      event of an Event of Default, the Company will pay to the Secured Party the
      amount of any and all reasonable expenses, including the reasonable fees
and
      expenses of its counsel,
      which the Secured Party may incur in connection with: (i)
      the
      custody or preservation of,
      or
      the sale, collection from, or other realization upon, any of the Pledged
Property;
      (ii) the exercise or enforcement of any of the rights of the Secured Party
      hereunder or (iii) the failure
      by the
      Company to perform or observe any of the provisions hereof.

     

    Section
      8.4. Waivers,
      Amendments, Etc.

    

    The
      Secured Party's delay or failure at any time or times hereafter to require
      strict performance by Company of any undertakings, agreements or covenants
      shall
      not waiver, affect,
      or
      diminish any right of the Secured Party under this Agreement to demand strict
      compliance and
      performance
      herewith. Any waiver by the Secured Party of any Event of Default shall not
      waive or affect any other Event of Default, whether such Event of Default is
      prior or subsequent thereto and
      whether of the same or a different type. None of the undertakings, agreements
      and covenants of the Company contained in this Agreement, and no Event
      of
      Default, shall be deemed
      to
      have been waived by the Secured Party, nor may this Agreement
      be amended, changed or modified, unless such waiver, amendment, change or
      modification is evidenced by an instrument
      in writing specifying such waiver, amendment, change or modification and signed
      by the
      Secured Party.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    Section
      8.5. Continuing
      Security Interest.

    

    This
      Agreement shall create a continuing security interest in the Pledged Property
      and
      shall:
      (i) remain in full force and effect until payment in full of the Obligations;
      and (ii) be binding
      upon the Company and its successors and heirs and (iii) inure to the
      benefit of the Secured
      Party and its successors and assigns. Upon the payment or satisfaction in full
      of the Obligations,
      the Company shall be entitled to the return, at its expense, of such of the
      Pledged
      Property
      as shall not have been sold in accordance with Section 5.2 hereof or otherwise
      applied pursuant
      to the terms hereof.

     

    Section
      8.6. Independent
      Representation.

    

    Each
      party hereto acknowledges and agrees that it has received or has had the
      opportunity to
      receive independent legal counsel of its own choice and that it has been
      sufficiently apprised of
      its
      rights and responsibilities with regard to the substance of this
      Agreement.

     

    Section
      8.7. Applicable
      Law: Jurisdiction.

    

    This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State
      of
      Florida without regard to the principles of conflict of laws. The
      parties further agree that any
      action between them shall be heard in Florida, and expressly consent to the
      jurisdiction and
      venue
      of
      the Superior Court of Florida and the United States District Court for the
      District of Florida
      for the adjudication of any civil action asserted pursuant to this
      Paragraph.

     

    Section
      8.8. Waiver
      of Jury Trial.

    

    AS
      A
      FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS
      AGREEMENT AND TO MAKE THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY
      HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY
      LEGAL
      PROCEEDING RELATED IN ANY WAY TO THIS AGREEMENT AND/OR ANY AND ALL OTHER
      DOCUMENTS RELATED TO THIS TRANSACTION.

     

    Section
      8.9. Entire
      Agreement.

    

    This
      Agreement constitutes the entire agreement among the parties and supersedes
      any
prior
      agreement or understanding among them with respect to the subject matter
      hereof.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of
      the date first above written.

     

    
      	 	  

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    DEFINITION
      OF PLEDGED PROPERTY

     

    For
      the
      purpose of securing prompt and complete payment and performance by the
Company
      of all of the Obligations, the Company unconditionally and irrevocably hereby
      grants to
      the
      Secured Party a continuing security interest in and to, and lien upon, the
      following Pledged Property
      of the Company:

     

    (a)
      all
      goods
      of the Company, including, without limitation, machinery,
      equipment, furniture, furnishings, fixtures, signs, lights, tools, parts,
      supplies and
      motor
      vehicles of
      every
      kind and description, now or hereafter owned by the Company
      or in which the Company
      may have or may hereafter acquire any interest, and
      all
      replacements, additions, accessions, substitutions and proceeds thereof, arising
      from the sale or disposition thereof,
      and where
      applicable, the proceeds of insurance and of
      any
      tort claims involving any of the foregoing;

     

    (b)
      all
      inventory of the Company, including, but not limited to, all goods, wares,
      merchandise, parts, supplies, finished products, other tangible personal
      property, including such inventory as is temporarily out of
      Company's custody or possession and including
      any returns upon any accounts or other proceeds, including
      insurance proceeds, resulting
      from the sale or disposition of any of the foregoing;

     

    (c)
      all
      contract rights and general intangibles of the Company, including,
      without limitation, goodwill, trademarks, trade styles, trade names,
leasehold
      interests, partnership
      or joint venture interests, patents and patent applications, copyrights,
deposit
      accounts
      whether now owned or hereafter created;

     

    (d) all
      documents, warehouse receipts, instruments and chattel paper of the Company
      whether now owned or hereafter created;

     

    (e)
      all
      accounts and other receivables, instruments
      or other forms of
      obligations
      and rights to payment of
      the
      Company (herein collectively referred to
      as
"Accounts"), together
      with the proceeds thereof, all goods represented by such Accounts and all
such
      goods that may be returned by the Company's customers, and all proceeds of
      any
      insurance thereon,
      and all guarantees, securities and liens which the Company may hold for the
      payment of
      any
      such
      Accounts including, without limitation, all rights of stoppage in transit,
      replevin
      and reclamation
      and as an unpaid vendor and/or lienor, all of which the Company represents
      and
      warrants
      will be bona fide and existing obligations of its respective customers,
arising
      out of the sale
      of
      goods by the Company in the ordinary course of business;

     

    (f)
      to
      the
      extent assignable, all of the Company's rights under all present and
future
      authorizations, permits, licenses and franchises issued or granted in connection
      with the operations
      of any of its facilities;

     

    (g) all
      products and proceeds (including,
      without limitation, insurance
      proceeds)
      from the above-described Pledged Property.

     

    
      
        
        

      

      
        A-1

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