Document:

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BUDAPEST, II. KER. KAPAS U. 31., V. EM. 43.
POSTACIM: 1277 BUDAPEST, PF. 86.
TEL:  201-5083, 212-4265,  FAX: 212-4275
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English Licence No. IM/IGKOD/2002/KOZJ/2382-------------------------------------
Deed Number:[***].--------------------------------------------------------------
 ----------------------------CERTIFIED OFFICE COPY------------------------------
 --------------------------------NOTARIAL DEED----------------------------------

Before me doktor Zaborszky Eszter Notary  Substitute,  acting for doktor Judit
Bokai,  Notary of the Second District of the City of Budapest,  hereby certify
that the  following  parties  appeared  before me in the Notary's  office 1027
Budapest, Kapas utca 31. V/43. at the date below:

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1.  SMITHFIELD  FIDUCIARY  LLC whose  registered  office is at the  offices of
Maples and Calder,  Attorneys-at-Law,  Ugland House P.O. Box 309, George Town,
Grand   Cayman,   Cayman   Islands,   British   West   Indies,   address   for
delivery/"kezbesitesi  cim": Gardos,  Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,
1056 Budapest,  Vaci utca 81., registered under No. 94284,  represented by DR.
PALFI ENDRE ISTVAN lawyer  (mother's  maiden name: Dr. Mosonyi Zsofia) who has
evidenced  his  identity  by his  identity  card no.:  571010  AA, and who has
evidenced his signing  authority by power of attorney,  (the  ,,SECURED  PARTY"
and the ,,COLLATERAL AGENT") and

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2.  IROQUOIS  MASTER FUND LTD.  having its  registered  seat at 641  Lexington
Avenue,   26th  Floor  New  York,   New  York  10022   U.S.A.,   address   for
delivery/"kezbesitesi  cim": Gardos,  Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,
1056  Budapest,  Vaci utca 81.,  represented  by DR. PALFI ENDRE ISTVAN lawyer
(mother's  maiden name: Dr. Mosonyi  Zsofia) who has evidenced his identity by
his identity card no.: 571010 AA, and who has evidenced his signing  authority
by power of attorney, (the ,,SECURED PARTY") and

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3. ROCKMORE  INVESTMENT  MASTER FUND,  LTD.  having its registered seat at 650
Fifth  Avenue  24th  Floor  New  York,  New York  10019  U.S.A.,  address  for
delivery/"kezbesitesi  cim": Gardos,  Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,
1056  Budapest,  Vaci utca 81.,  represented  by DR. PALFI ENDRE ISTVAN lawyer
(mother's  maiden name: Dr. Mosonyi  Zsofia) who has evidenced his identity by
his identity card no.: 571010 AA, and who has evidenced his signing  authority
by power of attorney, (the ,,SECURED PARTY") and

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4. CRANSHIRE  CAPITAL,  L.P.  having its  registered  seat at 666 Dundee Road,
Suite 1901,  Northbrook,  IL 60062 U.S.A.,  address for  delivery/"kezbesitesi
cim": Gardos, Furedi,  Mosonyi, Tomori Ugyvedi Iroda, 1056 Budapest, Vaci utca
81.,  F.E.I.N number  364055954,  represented by DR. PALFI ENDRE ISTVAN lawyer
(mother's  maiden name: Dr. Mosonyi  Zsofia) who has evidenced his identity by
his identity card no.: 571010 AA, and who has evidenced his signing  authority
by power of attorney, (the ,,SECURED PARTY") and

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5.  GRACE  BROTHERS,  LTD.  having its  registered  seat at 1560  Sherman  Ave
Evanston,  Illinois  60201  U.S.A.,  address for  delivery/"kezbesitesi  cim":
Gardos, Furedi,  Mosonyi,  Tomori Ugyvedi Iroda, 1056 Budapest, Vaci utca 81.,
represented  by DR.  PALFI ENDRE ISTVAN  lawyer  (mother's  maiden  name:  Dr.
Mosonyi  Zsofia) who has  evidenced  his  identity by his  identity  card no.:
571010 AA, and who has evidenced  his signing  authority by power of attorney,
(the ,,SECURED PARTY") and

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6. RAQ, LLC having its registered  seat at 787 7th Avenue 48th Floor New York,
New  York  10019  U.S.A.,  address  for  delivery/"kezbesitesi  cim":  Gardos,
Furedi,   Mosonyi,  Tomori  Ugyvedi  Iroda,  1056  Budapest,  Vaci  utca  81.,
represented  by DR.  PALFI ENDRE ISTVAN  lawyer  (mother's  maiden  name:  Dr.
Mosonyi  Zsofia) who has  evidenced  his  identity by his  identity  card no.:
571010 AA, and who has evidenced  his signing  authority by power of attorney,
(the ,,SECURED PARTY") and

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<PAGE>

7. PARAGON  CAPITAL,  L.P.  having its registered seat at 110 East 59th St New
York, New York 10022 U.S.A., address for  delivery/"kezbesitesi  cim": Gardos,
Furedi,   Mosonyi,  Tomori  Ugyvedi  Iroda,  1056  Budapest,  Vaci  utca  81.,
represented  by DR.  PALFI ENDRE ISTVAN  lawyer  (mother's  maiden  name:  Dr.
Mosonyi  Zsofia) who has  evidenced  his  identity by his  identity  card no.:
571010 AA, and who has evidenced  his signing  authority by power of attorney,
(the ,,SECURED PARTY") and

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8. NITE CAPITAL,  L.P.  having its  registered  seat at 100 E Cook Avenue #201
Libertyville,  Illinois 60048 U.S.A., address for delivery/"kezbesitesi  cim":
Gardos, Furedi,  Mosonyi,  Tomori Ugyvedi Iroda, 1056 Budapest, Vaci utca 81.,
represented  by DR.  PALFI ENDRE ISTVAN  lawyer  (mother's  maiden  name:  Dr.
Mosonyi  Zsofia) who has  evidenced  his  identity by his  identity  card no.:
571010 AA, and who has evidenced  his signing  authority by power of attorney,
(the ,,SECURED PARTY") and

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9. BRISTOL  INVESTMENT FUND, LTD. having its registered seat at 10990 Wilshire
Blvd   #1410   Los   Angeles,    California   90024   U.S.A.,    address   for
delivery/"kezbesitesi  cim": Gardos,  Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,
1056  Budapest,  Vaci utca 81.,  represented  by DR. PALFI ENDRE ISTVAN lawyer
(mother's  maiden name: Dr. Mosonyi  Zsofia) who has evidenced his identity by
his identity card no.: 571010 AA, and who has evidenced his signing  authority
by power of attorney, (the ,,SECURED PARTY") and

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10. GLOBAL HUNTER  HOLDINGS,  L.P. having its registered seat at 1808 Point de
Vue   Suite   1000   Ft.   Mound,    Texas   75022    U.S.A.,    address   for
delivery/"kezbesitesi  cim": Gardos,  Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,
1056  Budapest,  Vaci utca 81.,  represented  by DR. PALFI ENDRE ISTVAN lawyer
(mother's  maiden name: Dr. Mosonyi  Zsofia) who has evidenced his identity by
his identity card no.: 571010 AA, and who has evidenced his signing  authority
by power of attorney, (the ,,SECURED PARTY") and

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11.  HUDSON BAY FUND L.P.  having its  registered  seat at 120  Broadway  40th
Floor New York,  New York  10271  U.S.A.,  address  for  delivery/"kezbesitesi
cim": Gardos, Furedi,  Mosonyi, Tomori Ugyvedi Iroda, 1056 Budapest, Vaci utca
81.,  represented by DR. PALFI ENDRE ISTVAN lawyer  (mother's maiden name: Dr.
Mosonyi  Zsofia) who has  evidenced  his  identity by his  identity  card no.:
571010 AA, and who has evidenced  his signing  authority by power of attorney,
(the ,,SECURED PARTY") and

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12. RONALD HART having its permanent  address at 4821  Crestwood  Drive Little
Rock, Arkansas 72207 U.S.A., address for  delivery/"kezbesitesi  cim": Gardos,
Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,  1056 Budapest,  Vaci utca 81., place
and date of birth:  Syracuse,  New York,  U.S.A.,  March  23,  1942,  mother's
maiden name:  Colvin,  represented by DR. PALFI ENDRE ISTVAN lawyer  (mother's
maiden  name:  Dr.  Mosonyi  Zsofia)  who has  evidenced  his  identity by his
identity card no.:  571010 AA, and who has evidenced his signing  authority by
power of attorney, (the ,,SECURED PARTY") and

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13. KUEKENHOF CAPITAL MANAGEMENT,  LLC having its registered seat at 22 Church
St   Suite   #5   Ramsey,    New   Jersey    07446    U.S.A.,    address   for
delivery/"kezbesitesi  cim": Gardos,  Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,
1056  Budapest,  Vaci utca 81.,  represented  by DR. PALFI ENDRE ISTVAN lawyer
(mother's  maiden name: Dr. Mosonyi  Zsofia) who has evidenced his identity by
his identity card no.: 571010 AA, and who has evidenced his signing  authority
by power of attorney, (the ,,SECURED PARTY") and

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<PAGE>

14. SIMON HALEGOUA having its permanent  address at 1 Crescent Road Bellterre,
New  York  11777  U.S.A.,  address  for  delivery/"kezbesitesi  cim":  Gardos,
Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,  1056 Budapest,  Vaci utca 81., place
and date of birth:  New York City, New York,  U.S.A.,  June 6, 1953,  mother's
maiden name:  Colvin,  represented by DR. PALFI ENDRE ISTVAN lawyer  (mother's
maiden  name:  Dr.  Mosonyi  Zsofia)  who has  evidenced  his  identity by his
identity card no.:  571010 AA, and who has evidenced his signing  authority by
power of attorney, (the ,,SECURED PARTY") and

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15. ISAAK HALEGOUA having its permanent  address at 25 Bell Circle  Bellterre,
New  York  11777  U.S.A.,  address  for  delivery/"kezbesitesi  cim":  Gardos,
Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,  1056 Budapest,  Vaci utca 81., place
and date of birth:  Athens,  Greece,  March 5,  1948,  mother's  maiden  name:
Stakouakis,  represented  by DR. PALFI ENDRE ISTVAN  lawyer  (mother's  maiden
name: Dr. Mosonyi  Zsofia) who has evidenced his identity by his identity card
no.:  571010 AA,  and who has  evidenced  his  signing  authority  by power of
attorney, (the ,,SECURED PARTY") and

16. AUDREY HALEGOUA having its permanent  address at 25 Bell Circle Bellterre,
New  York  11777  U.S.A.,  address  for  delivery/"kezbesitesi  cim":  Gardos,
Furedi,  Mosonyi,  Tomori Ugyvedi Iroda,  1056 Budapest,  Vaci utca 81., place
and date of  birth:  New York  City,  New  York,  U.S.A.  February  21,  1948,
mother's  maiden  name:  Hockhemier,  represented  by DR.  PALFI ENDRE  ISTVAN
lawyer  (mother's  maiden name:  Dr.  Mosonyi  Zsofia) who has  evidenced  his
identity  by his  identity  card no.:  571010  AA, and who has  evidenced  his
signing authority by power of attorney, (the ,,SECURED PARTY") and

17.  KRAFT  ELEKTRONIKAI  ZARTKORUEN  MUKODO   RESZVENYTARSASAG,   having  its
registered  seat at  H-1112  Budapest,  Koerberki  ut 36.,  registered  by the
Metropolitan   Court  of  Budapest  acting  as  Court  of  Registration  under
registration No.  01-10-044503  H-2537 , represented by Tibor Kovacs (mother's
maiden name:  [***]) who has  evidenced her identity by her identity card no.:
[***],  and who has  evidenced  her signing  authority by firm  extract,  (the
,,CHARGOR").

Since [***] client does not  understand the English  language,  I requested to
act as transaction witnesses the following persons:

1/ [***]  (born on [***],  mother's  maiden  name [***]) as witness and
2/ [***] (born on [***],  mother's  maiden  name [***]) as witness.  The parties
hereto have requested that I prepare in the form of a notarial deed the present

                               MORTGAGE AGREEMENT

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

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

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<PAGE>

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

      WHEREAS,  in  order to  induce  the  Secured  Parties  to  enter  into the
transactions  contemplated by the Securities  Purchase  Agreement and the Notes,
the  Mortgagor  has agreed to create  Mortgages  on the Real  Property  (each as
defined below).

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

1.    Certain Definitions.

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

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

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

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

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

            "PERMITTED LIENS" means the following:

                  (i) Any third  party  rights  existing  on the date hereof and
      specifically  disclosed in Schedule B attached hereto as inseparable  part
      of this Agreement ("EXISTING LIENS");

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<PAGE>

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

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

            "REAL PROPERTY" means the proprietary  portion of 7/10 of the parcel
      of real property located in Ivanc, Hungary registered in the Land Register
      kept by the Land  Office of  District  Kormend  (In  Hungarian:  "KORMENDI
      KORZETI  FOLDHIVATAL") (the "LAND OFFICE") under  topographical lot number
      215/7.

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

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

      2. Grant of Mortgages.  As an  inducement  for each Secured Party to enter
into the  transactions  contemplated by the Transaction  Documents and to secure
the complete and timely payment,  performance and discharge in full, as the case
may be, of the Obligations  owing to such Secured Party,  each Secured Party and
the Mortgagor  hereby  create in favor of such Secured Party in accordance  with
Section  262 (1) of the Civil Code a several  mortgage  (each a  "MORTGAGE"  and
collectively the "MORTGAGES") on the Real Property.

      3.  Registration  of  Mortgages.  Each  Mortgage  shall be  created by its
registration in the Land Register kept by the Land Office.  The Mortgagor shall,
immediately  after  the  Mortgages  shall  have been  registered,  record in its
accounting system and indicate in all of its financial reports the fact that the
Mortgages are created over the Real Property.

      4. Ranking;  Application for Registrations.  Each Mortgage shall rank pari
passu with each other  Mortgage.  The Mortgagor and the Secured  Parties  hereby
jointly  request the Land Office to register  each Mortgage in the Land Register
in favor of the  respective  Secured  Party over the Real Property to secure the
Obligations  owing to such Secured Party and  simultaneously  record a note that
each Mortgage shall rank pari passu with each other Mortgage.  The Mortgagor and
the Secured  Parties  hereby  authorize  the  Collateral  Agent to apply for the
registration of the Mortgages in the Land Register.  The Collateral  Agent shall
immediately  notify the  Mortgagor  and the Secured  Parties of  submitting  the
application  by sending a copy thereof  sealed by the Land Office to certify the
delivery of such  application.  Each Secured Party hereby  appoint and authorize
Gardos,  Furedi,  Mosonyi,  Tomori Law Firm having its registered office at Vaci
utca 81., H-1056  Budapest,  Hungary as its agent for service of delivery in any
proceedings  before the Land Office in accordance with Section 26 (9) of the Act
CXLI of 1997 on the Land Register.

                                       5
<PAGE>

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

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

            (b) Except for the Real Property, there is no real property owned by
the Mortgagor.

            (c) The Mortgagor is the sole owner of the Real  Property,  free and
clear of any  Liens  (including  any  right  recorded  in the Land  Register  to
establish a Lien having the priority rank of such record)  other than  Permitted
Liens, and is fully  authorized to grant the Mortgages under this Agreement.  No
registration of any Lien has been or shall be, before submitting the application
for  registration  of the  Mortgages,  requested (or authorized to do so) by the
Mortgagor  covering the Real  Property.  So long as this  Agreement  shall be in
effect,  the Mortgagor shall not file (or authorize the filing of) a request for
registration  of any Lien  covering  the Real  Property  (other than request for
registration  of the  Mortgages)  without  the prior  consent of the  Collateral
Agent.

            (d) The Mortgagor has no knowledge of any claim that any Mortgage or
the Mortgagor's use of the Real Property violates the rights of any third party.
There has been no adverse  decision  of which the  Mortgagor  is aware as to the
Mortgagor's  exclusive right to use the Real Property,  and, to the knowledge of
the Mortgagor there is no proceeding involving said rights pending or threatened
before any court, judicial body, administrative or regulatory agency, arbitrator
or other governmental authority.

            (e) Upon the performance of the  registrations in the Land Register,
as set forth in Section 4 above, this Agreement creates in favor of each Secured
Party  a  valid  mortgage  on  the  Real  Property,  securing  the  payment  and
satisfaction  in full of the Obligations  owing to such Secured Party,  which is
prior to all other  Liens now  existing or  hereafter  created or arising on the
Real  Property.  Except  for  the  registration  of the  Mortgages  in the  Land
Register,  no  authorization  or  approval  of or  filing  with or notice to any
governmental  authority or regulatory body is required either: (i) for the grant
by the Mortgagor of, or the  effectiveness  of, the Mortgages  granted hereby or
for the execution,  delivery and  performance of this Agreement by the Mortgagor
or (ii) for the  perfection  of or  exercise  by the  Collateral  Agent  and the
Secured Parties of their rights and remedies hereunder.

(f) The execution,  delivery and performance of this Agreement does not conflict
with or cause a breach or default,  or an event that with or without the passage
of time or notice, shall constitute a breach or default,  under any agreement to
which the  Mortgagor is a party or by which the  Mortgagor is bound.  No consent
(including,   without  limitation,  from  stock  holders  or  creditors  of  the
Mortgagor)  is  required  for the  Mortgagor  to  enter  into  and  perform  its
obligations hereunder, other than consents already obtained by the Mortgagor.

                                       6
<PAGE>

            (g) The Mortgagor shall at all times maintain the Mortgages provided
for  hereunder  as valid and  perfected  first  priority  Mortgages  on the Real
Property in favor of each Secured  Party and insure that such  Mortgages  remain
senior  to all  existing  and  hereafter  created  Liens.  The  Mortgagor  shall
safeguard and protect the Real Property.  The Mortgagor  hereby agrees to defend
the same against any and all persons.

            (h)  Unless  by  operation  of  mandatory  provisions  of laws,  the
Mortgagor  will not allow the Real  Property to be forfeited or dedicated to the
public without the prior written consent of the Collateral  Agent. The Mortgagor
will not transfer,  pledge,  hypothecate,  encumber,  license, sell or otherwise
dispose the Real Property  without the prior written  consent of the  Collateral
Agent.

            (i) The Mortgagor shall keep the Real Property adequately insured in
favor of the Collateral  Agent (for the benefit of the Secured  Parties) against
all risks  which is  customary  for  Hungarian  companies  carrying  out similar
activities to insure.

            (j) The Mortgagor  shall keep and preserve the Real Property in good
condition, unless where the failure to comply with the foregoing provisions does
not  result in an  adverse  effect on the value of the Real  Property  or on the
Mortgage therein.

            (k) The Mortgagor shall, within ten (10) days of obtaining knowledge
thereof, advise the Collateral Agent, in sufficient detail, of the occurrence of
any event  which would have a material  adverse  effect on the value of the Real
Property or on any Mortgage therein.

            (l) The Mortgagor shall promptly  execute and deliver to the Secured
Parties such further deeds, mortgages, assignments, security agreements or other
instruments, documents, certificates and assurances and take such further action
as necessary to perfect or protect any Mortgage in the Real Property.

            (m)  The  Mortgagor  shall  permit  the  Collateral  Agent  and  its
representatives  and agents upon prior written  notice by the  Collateral  Agent
(acting upon  instruction  of any Secured Party) to inspect the Real Property at
any time during normal business hours, and to make copies of records  pertaining
thereto as may be  reasonably  requested by the  Collateral  Agent  (acting upon
instruction  of any Secured  Party) from time to time,  all of which shall be at
the sole cost and expense of (i) if an Event of Default  shall have occurred and
be continuing at the inception of such inspection, the Mortgagor, or (ii) in all
other events, the Secured Party initiating such inspection.

                                       7
<PAGE>

            (n) The Mortgagor  shall  promptly  notify the  Collateral  Agent in
sufficient detail upon becoming aware of any attachment,  garnishment, execution
or other  legal  process  levied  against  the Real  Property  and of any  other
information  received by the Mortgagor that reasonably would be expected to have
an adverse affect on the value of the Real Property,  any Mortgage or the rights
and remedies of the Secured Parties hereunder.

            (o) The  Mortgagor  shall not use or permit the Real  Property to be
used  unlawfully  or in  violation  of any  provision  of this  Agreement or any
applicable statute,  regulation or ordinance or any policy of insurance covering
the Real  Property  where  violation  is  reasonably  likely to have a  material
adverse  effect  on the  Secured  Parties'  rights in the Real  Property  or the
Collateral  Agent's or any  Secured  Party's  ability to  foreclose  on the Real
Property.

            (p) The Mortgagor  shall not cause or suffer to exist any Lien in or
to the Real  Property  other than  Permitted  Liens  without  the prior  written
consent of the Collateral Agent.

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

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

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

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

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

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

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

            (b) The Collateral  Agent shall have the right to take possession of
the Real Property in accordance with Sections 257 and 258 (1) of the Civil Code.
The Collateral Agent shall have the right to assign,  sell, or otherwise dispose
of and deliver the Real  Property (or  designate a person who  officially  deals
with granting loans against security and/or organizing public sales to do so) as
provided under Sections 257 and 258 of the Civil Code, at public or private sale
or otherwise, for a purchase price not less than the Sale Value, in U.S. Dollars
(or an  equivalent  amount  in any other  currency  selected  by the  Collateral
Agent), for cash or on credit or for future delivery,  in such parcel or parcels
and at such time or times within a maximum  period of 15 months from the date of
the Event of Default Redemption Notice giving rise thereto, and at such place or
places,  and upon such terms and  conditions  as the  Collateral  Agent may deem
commercially  reasonable and as are in compliance with any applicable laws. Upon
each  such  sale,  assignment  or  other  transfer  of the  Real  Property,  the
Collateral  Agent and/or any Secured Party may purchase the Real Property  being
sold,  free from and discharged of all trusts,  claims,  right of redemption and
equities of the Mortgagor, which are hereby waived and released.

                                       8
<PAGE>

            (c) The Collateral  Agent may, in order to implement the assignment,
sale or other disposition of the Real Property pursuant to this Section, execute
and deliver  (pursuant  to the  authority  provided  for in Section 11 (Power of
Attorney; Further Assurances) on behalf of the Mortgagor one or more instruments
of  transfer of the Real  Property in form  suitable  for filing,  recording  or
registration  in  any   jurisdictions  as  the  Secured  Parties  may  determine
advisable.

      8. Applications of Proceeds;  Expenses.  (a) The proceeds of any such sale
or other  disposition of the Real Property  hereunder shall be applied first, to
the reasonable expenses of retaking,  holding, storing, processing and preparing
for sale, selling, and the like (including,  without limitation, any taxes, fees
and other costs incurred in connection  therewith) of that Real Property, to the
reasonable  attorneys' fees and expenses incurred by the Collateral Agent and/or
Secured Parties in enforcing its rights  hereunder,  and then to satisfaction of
the Obligations,  and to the payment of any other amounts required by applicable
law,  after which the Secured  Parties  shall pay to the  Mortgagor  any surplus
proceeds.  If,  upon the sale or other  disposition  of the Real  Property,  the
proceeds  thereof  are  insufficient  to pay all  amounts  to which the  Secured
Parties are legally entitled, the Mortgagor, in its capacity of mortgagor,  will
not be liable for the deficiency. To the extent permitted by applicable law, the
Mortgagor  waives all claims,  damages and demands  against the Secured  Parties
arising  out of  the  repossession,  removal,  retention  or  sale  of the  Real
Property,  unless  due to the gross  negligence  or  willful  misconduct  of the
Collateral Agent and/or Secured Parties.

            (b) The Mortgagor  agrees to pay all  out-of-pocket  fees, costs and
expenses  reasonably  incurred  in  connection  with  the  registration  of  the
Mortgages in the Land Register,  including,  without limitation, any expenses of
any searches  reasonably  required by the Collateral  Agent. The Mortgagor shall
also pay all other  claims and charges  which in the  reasonable  opinion of the
Collateral  Agent  and/or  Secured  Parties  would  reasonably  be  expected  to
prejudice,  imperil or  otherwise  affect  the Real  Property  or any  Mortgage.
Without  prejudice to the  provisions of Section 5(m) above,  the Mortgagor will
also, upon demand, pay to the Collateral Agent and/or Secured Parties the amount
of any and all reasonable  expenses,  including the reasonable fees and expenses
of its counsel and of any experts and agents,  which the Collateral Agent and/or
Secured Parties may incur in connection with the inspection or sale of, or other
realization upon, any of the Real Property.

                                       9
<PAGE>

      9.  Responsibility  for Real  Property.  The  Mortgagor  shall  assume all
liabilities and  responsibility in connection with the Real Property and provide
without delay,  upon  occurrence of any material  adverse change in the value of
the Real Property, adequate security of the Obligations.

      10. Term of Mortgage.  Each Mortgage shall  terminate on the date on which
all  payments  under the  respective  Note  have been made in full or  otherwise
converted pursuant to the terms thereof and the respective Obligations have been
paid or discharged in full. Upon such termination, the respective Secured Party,
at the request of the Mortgagor to be delivered to the  Collateral  Agent,  will
release any consent  required for  cancellation  of the  Mortgage  from the Land
Register.  The Mortgagor  shall be responsible  for filing the  application  for
cancellation with the Land Register.

      11.  Power of  Attorney;  Further  Assurances.  (a) The  Mortgagor  hereby
authorizes the Collateral Agent (acting on behalf of the Secured  Parties),  and
its  respective  officers,  agents,  successors  or  assigns  with full power of
substitution,  as the Mortgagor's true and lawful attorney-in-fact,  with power,
in  the  name  of the  Mortgagor,  to,  after  the  occurrence  and  during  the
continuance of an Event of Default, (i) pay or discharge taxes, Liens, Mortgages
or other  encumbrances at any time levied or placed on or threatened against the
Real Property; (ii) to demand, collect, receipt for, compromise,  settle and sue
for monies due in respect of the Real Property;  and (iii) generally,  to do, at
the option of the Collateral Agent (acting on behalf of the Secured Parties) or,
as the case may be, and at the Mortgagor's expense, at any time, or from time to
time, all acts and things which the Collateral  Agent, as the case may be, deems
necessary  to protect,  preserve  and  realize  upon the Real  Property  and the
Mortgages  granted thereon,  in order to effect the intent of this Agreement and
the Notes,  all as fully and effectually as the Mortgagor might or could do; and
the Mortgagor  hereby ratifies all that said attorney shall lawfully do or cause
to be done by virtue hereof.

            (b)  On a  continuing  basis,  the  Mortgagor  will  make,  execute,
acknowledge,  deliver,  file  and  record,  as the  case  may be,  with the Land
Register all such instruments,  and take all such action as necessary to perfect
any Mortgage granted hereunder and otherwise to carry out the provisions of this
Agreement,  or for assuring and  confirming to the Secured  Parties the grant or
perfection of a first priority  Mortgage in the Real  Property,  subject only to
Permitted Liens.

            (c) The  Mortgagor  hereby  agrees to  co-operate in good faith with
each Secured Party and the  Collateral  Agent,  from time to time in filing with
the Land Register,  any amendment of the data recorded in the Land Register with
respect the Mortgage.

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

                                       10
<PAGE>

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

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

If to the  Borrower  (this  address  being set forth  solely for the purposes of
evidencing  the date of deemed  receipt by the  Borrower  of an Event of Default
Redemption  Notice in the  application  of Section 7 (Rights and  Remedies  Upon
Default) hereunder):

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

      With a copy to:

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

                                       11
<PAGE>

If to the Mortgagor:

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

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

If to Smithfield Fiduciary LLC as Secured Party:

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

                                       12
<PAGE>

If to Iroquois Master Fund Ltd. as Secured Party:

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

If to Rockmore Investment Master Fund, Ltd. as Secured Party:

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

If to Cranshire Capital, L.P. as Secured Party:

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

If to Grace Brothers, Ltd. as Secured Party:

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

If to RAQ LLC as Secured Party:

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

                                       13
<PAGE>

If to Paragon Capital, L.P. as Secured Party:

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

If to Nite Capital, L.P. as Secured Party:

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

If to Bristol Investment Fund, Ltd. as Secured Party:

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

If to Global Hunter Holdings, L.P. as Secured Party:

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

If to Hudson Bay Fund L.P. as Secured Party:

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

                                       14
<PAGE>

If to Ronald Hart as Secured Party:

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

If to Kuekenhof Capital Management, LLC as Secured Party:

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

If to Simon Halegoua as Secured Party:

                  Simon Halegoua
                  1 Crescent Road
                  Belle Teere, New York 11777 USA
                  Telephone: (631) 928-9225
If to Isaak Halegoua as Secured Party:

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

If to Audrey Halegoua as Secured Party:

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

If to Smithfield Fiduciary LLC as the Collateral Agent:

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

                                       15
<PAGE>

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

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

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

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

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

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

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

                                       16
<PAGE>

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

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

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

 -----------------------******************************-----------------------
An  unlimited  number of official  copies of the present deed may be issued to
the Parties. ---------------------------------------------------------------
I informed the clients that a notarial deed is enforceable if it contains---
a) that the parties assume an obligation and due consideration  therefor, or a
unilateral obligation,------------------------------------------------------
b) name of the obligee and the obligor,-------------------------------------
c) subject, quantity (amount) and title of the obligation,------------------
d) term and way of fulfilment.----------------------------------------------
Should  the  obligation  be bound  to a  condition  or  point  of time,  it is
necessary for the enforceability  that the occurence of the condition or point
of time is certified by a notarial deed.------------------------------------
I, the undersigned notary substitute,  have prepared this document on basis of
the  draft put at my  disposal,  have  read it in front of the  Parties,  have
explained  to them its  content and legal  consequences,  in  particular  with
regard to its  enforceability.  The Parties have  declared that the content of
this document complies in all respects with their contractual  intent and thus
this  document  has  been  signed  by the  Parties,  the  interpreter  and the
transaction witnesses and by me.--------------------------------------------
Executed at the City of  Budapest,  on the 12th  (twelve)  day of June,  2006.
(Two Thousand Six)  --------------------------------------------------------
Dr. Palfi Endre m.p.  Smithfield  Fiduciary LLC, Dr. Palfi Endre m.p. Iroquois
Master Fund Ltd., Dr. Palfi Endre m.p. Rockmore  Investment Master Fund, Ltd.,
Dr.  Palfi Endre m.p.  Cranshire  Capital  L.P.,  Dr.  Palfi Endre m.p.  Grace
Brothers,  Ltd.,  Dr. Palfi Endre m.p. RAQ, LLC, Dr. Palfi Endre m.p.  Paragon
Capital,  L.P., Palfi Endre m.p. Nite Capital,  L.P., Palfi Endre m.p. Bristol
Investment Fund,  Ltd.,  Palfi Endre m.p. Global Hunter Holdings,  L.P., Palfi
Endre m.p.  Hudson Bay Fund L.P.,  Palfi Endre m.p.  Ronald Hart,  Palfi Endre
m.p.  Kuekenhof  Capital  Management,  LLC, Palfi Endre m.p.  Simon  Halegoua,
Palfi Endre m.p.  Isaak  Halegoua,  Palfi Endre m.p.  Audrey  Halegoua,  Tibor
Kovacs m.p. Kraft Elektronikai Zartkoruen Mukodo Reszvenytarsasag.  [***] m.p.
interpreter and witness, [***] m.p. witness, [***]m.p. Notary.--------------
It is hereby  certified that the present  Certified Office Copy being true and
faithful  copy  of the  original  of the  notarial  deed  deposited  with  the
archives of Dr. Bokai Judit under registration number above.----------------
Executed at the City of  Budapest,  on the 12th  (twelve)  day of June,  2006.
(Two Thousand Six)  --------------------------------------------------------

                                    [***]
                                    Notary

                                       17
<PAGE>

                                  SCHEDULE A

                                 LOAN AMOUNTS

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

      NAME OF THE SECURED PARTIES                     LOAN AMOUNTS
--------------------------------------------------------------------------------

        Smithfield Fiduciary LLC                      USD 1,000,000
--------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       2
<PAGE>

                                  SCHEDULE B

                                EXISTING LIENS

TYPE OF        RESOLUTION NO.     LEGAL TITLE OF         NAME OF THE HOLDER OF
RECORD IN THE                     EXISTING LIEN          THE LIEN
LAND REGISTER

--------------------------------------------------------------------------------
Resolution on  34206/2000.09.22.  Right to way on land   The owner of the real
registration                      (in Hungarian:         property under
                                  "utszolgalmi jog")     topographical lot
                                                         number 215/8
--------------------------------------------------------------------------------
Resolution on  34206/2000.09.22.  Right to erect water   The Municipality of
registration                      pipe on land and       Ivanc
                                  prohibition with       (address: H-9931 Ivanc,
                                  respect to a           Kosuth Lajos utca 119.)
                                  protected area (In
                                  Hungarian:
                                  "vizvezetesi jog es
                                  vedosavra vonatkozo
                                  tilalom")
--------------------------------------------------------------------------------

                                       3[GRAPHIC OMITTED]
BUDAPEST, II. KER. KAPAS U. 31., V. EM. 43.
POSTACIM: 1277 BUDAPEST, PF. 86.
TEL:  201-5083, 212-4265,  FAX: 212-4275
--------------------------------------------------------------------------------
English Licence No. IM/IGKOD/2002/KOZJ/2382-------------------------------------
Deed Number:[***].--------------------------------------------------------------
 ----------------------------CERTIFIED OFFICE COPY------------------------------
 --------------------------------NOTARIAL DEED----------------------------------

Before me doktor  Zaborszky  Eszter Notary  Substitute,  acting for doktor Judit
Bokai,  Notary of the Second  District of the City of Budapest,  hereby  certify
that the  following  parties  appeared  before me in the  Notary's  office  1027
Budapest, Kapas utca 31. V/43. at the date below:

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

1. SMITHFIELD  FIDUCIARY LLC whose registered office is at the offices of Maples
and Calder,  Attorneys-at-Law,  Ugland  House P.O. Box 309,  George Town,  Grand
Cayman,  Cayman  Islands,  British  West  Indies,  registered  under No.  94284,
represented by DR. PALFI ENDRE ISTVAN lawyer  (mother's maiden name: Dr. Mosonyi
Zsofia) who has evidenced his identity by his identity card no.:  571010 AA, and
who has evidenced  his signing  authority by power of attorney,  (the  ,,SECURED
PARTY" and the ,,COLLATERAL AGENT") and

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

2. IROQUOIS MASTER FUND LTD. having its registered seat at 641 Lexington Avenue,
26th Floor New York,  New York 10022  U.S.A.,  represented  by DR.  PALFI  ENDRE
ISTVAN lawyer  (mother's  maiden name: Dr. Mosonyi Zsofia) who has evidenced his
identity by his identity card no.:  571010 AA, and who has evidenced his signing
authority     by    power    of     attorney,     (the     ,,SECURED     PARTY")
and

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

3. ROCKMORE INVESTMENT MASTER FUND, LTD. having its registered seat at 650 Fifth
Avenue 24th Floor New York,  New York 10019  U.S.A.,  represented  by DR.  PALFI
ENDRE ISTVAN lawyer (mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced
his  identity by his identity  card no.:  571010 AA, and who has  evidenced  his
signing    authority   by   power   of   attorney,    (the   ,,SECURED   PARTY")
and

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

4. CRANSHIRE CAPITAL,  L.P. having its registered seat at 666 Dundee Road, Suite
1901, Northbrook, IL 60062 U.S.A., F.E.I.N number 364055954,  represented by DR.
PALFI ENDRE ISTVAN lawyer  (mother's  maiden name: Dr.  Mosonyi  Zsofia) who has
evidenced  his  identity  by his  identity  card  no.:  571010  AA,  and who has
evidenced his signing  authority by power of attorney,  (the  ,,SECURED  PARTY")
and

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

5. GRACE BROTHERS, LTD. having its registered seat at 1560 Sherman Ave Evanston,
Illinois 60201 U.S.A.,  represented  by DR. PALFI ENDRE ISTVAN lawyer  (mother's
maiden name: Dr. Mosonyi  Zsofia) who has evidenced his identity by his identity
card no.:  571010 AA, and who has  evidenced  his signing  authority by power of
attorney, (the ,,SECURED PARTY") and

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

6. RAQ,  LLC having its  registered  seat at 787 7th Avenue 48th Floor New York,
New York 10019 U.S.A.,  represented  by DR. PALFI ENDRE ISTVAN lawyer  (mother's
maiden name: Dr. Mosonyi  Zsofia) who has evidenced his identity by his identity
card no.:  571010 AA, and who has  evidenced  his signing  authority by power of
attorney, (the ,,SECURED PARTY") and

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

7. PARAGON  CAPITAL,  L.P.  having its  registered  seat at 110 East 59th St New
York,  New York 10022  U.S.A.,  represented  by DR.  PALFI ENDRE  ISTVAN  lawyer
(mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced his identity by his
identity card no.:  571010 AA, and who has  evidenced  his signing  authority by
power of attorney, (the ,,SECURED PARTY") and

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

<PAGE>

8. NITE  CAPITAL,  L.P.  having its  registered  seat at 100 E Cook  Avenue #201
Libertyville,  Illinois  60048  U.S.A.,  represented  by DR.  PALFI ENDRE ISTVAN
lawyer (mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced his identity
by his identity card no.: 571010 AA, and who has evidenced his signing authority
by power of attorney, (the ,,SECURED PARTY") and

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

9. BRISTOL  INVESTMENT  FUND,  LTD. having its registered seat at 10990 Wilshire
Blvd #1410 Los Angeles,  California 90024 U.S.A., represented by DR. PALFI ENDRE
ISTVAN lawyer  (mother's  maiden name: Dr. Mosonyi Zsofia) who has evidenced his
identity by his identity card no.:  571010 AA, and who has evidenced his signing
authority by power of attorney, (the ,,SECURED PARTY") and

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

10. GLOBAL HUNTER HOLDINGS, L.P. having its registered seat at 1808 Point de Vue
Suite 1000 Ft. Mound, Texas 75022 U.S.A.,  represented by DR. PALFI ENDRE ISTVAN
lawyer (mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced his identity
by his identity card no.: 571010 AA, and who has evidenced his signing authority
by power of attorney, (the ,,SECURED PARTY") and

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

11. HUDSON BAY FUND L.P.  having its registered  seat at 120 Broadway 40th Floor
New York,  New York 10271 U.S.A.,  represented  by DR. PALFI ENDRE ISTVAN lawyer
(mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced his identity by his
identity card no.:  571010 AA, and who has  evidenced  his signing  authority by
power of attorney, (the ,,SECURED PARTY") and

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

12.  RONALD HART having its  permanent  address at 4821  Crestwood  Drive Little
Rock,  Arkansas  72207  U.S.A.,  place  and date of birth:  Syracuse,  New York,
U.S.A.,  March 23, 1942, mother's maiden name: Colvin,  represented by DR. PALFI
ENDRE ISTVAN lawyer (mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced
his  identity by his identity  card no.:  571010 AA, and who has  evidenced  his
signing authority by power of attorney, (the ,,SECURED PARTY") and

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

13. KUEKENHOF CAPITAL MANAGEMENT, LLC having its registered seat at 22 Church St
Suite #5 Ramsey, New Jersey 07446 U.S.A.,  represented by DR. PALFI ENDRE ISTVAN
lawyer (mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced his identity
by his identity card no.: 571010 AA, and who has evidenced his signing authority
by power of attorney, (the ,,SECURED PARTY") and

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

14. SIMON HALEGOUA  having its permanent  address at 1 Crescent Road  Bellterre,
New York 11777 U.S.A., place and date of birth: New York City, New York, U.S.A.,
June 6, 1953,  mother's  maiden  name:  Colvin,  represented  by DR. PALFI ENDRE
ISTVAN lawyer  (mother's  maiden name: Dr. Mosonyi Zsofia) who has evidenced his
identity by his identity card no.:  571010 AA, and who has evidenced his signing
authority by power of attorney, (the ,,SECURED PARTY") and

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

15. ISAAK HALEGOUA having its permanent address at 25 Bell Circle Bellterre, New
York  11777  U.S.A.,  place and date of birth:  Athens,  Greece,  March 5, 1948,
mother's maiden name:  Stakouakis,  represented by DR. PALFI ENDRE ISTVAN lawyer
(mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced his identity by his
identity card no.:  571010 AA, and who has  evidenced  his signing  authority by
power of attorney, (the ,,SECURED PARTY") and

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

16. AUDREY  HALEGOUA having its permanent  address at 25 Bell Circle  Bellterre,
New York 11777 U.S.A.,  place and date of birth: New York City, New York, U.S.A.
February 21, 1948,  mother's maiden name:  Hockhemier,  represented by DR. PALFI
ENDRE ISTVAN lawyer (mother's maiden name: Dr. Mosonyi Zsofia) who has evidenced
his  identity by his identity  card no.:  571010 AA, and who has  evidenced  his
signing authority by power of attorney, (the ,,SECURED PARTY") and

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

17. KRAFT ELEKTRONIKAI ZARTKORUEN MUKODO RESZVENYTARSASAG, having its registered
seat at H-1112 Budapest,  Koerberki ut 36., registered by the Metropolitan Court
of Budapest acting as Court of Registration under registration No.  01-10-044503
H-2537 ,  represented  by Tibor Kovacs  (mother's  maiden  name:  [***]) who has
evidenced  her identity by her identity card no.:  [***],  and who has evidenced
her signing authority by firm extract, (the ,CHARGOR").

                                       2
<PAGE>

Since [***] client does not understand the English language,  I requested to act
as transaction witnesses the following persons:1/ [***] (born on [***], mother's
maiden name [***]) as witness and

2/ [***] (born on [***],  mother's  maiden  name [***]) as witness.  The parties
hereto have requested that I prepare in the form of a notarial deed the present

                               SECURITY AGREEMENT

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

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

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

      WHEREAS,  in  order to  induce  the  Secured  Parties  to  enter  into the
transactions  contemplated by the Securities  Purchase  Agreement and the Notes,
the Chargor has agreed to create Security  Interests on the Collateral  (each as
defined below).

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

      1.    Certain Definitions.

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

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

                                       3
<PAGE>

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

            "CHARGE  REGISTER" means the registry kept by the Hungarian  Chamber
      of  Notaries  Public  (or  such  other  registry  as  from  time  to  time
      applicable)  for the  registration  of  non-possessory  charges on movable
      property.

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

            "COLLATERAL" has the meaning set forth in Section 2.

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

            "LOAN AMOUNT" means with respect to each Secured  Party,  the amount
      set opposite the name of such Secured Party in Schedule A.

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

            "PERMITTED LIENS" means the following:

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

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

            "PERMITTED  TRANSFER" means any conveyance,  sale, lease,  transfer,
      license or disposition (each a "TRANSFER") by Chargor of:

                  (i)   inventory or upgrade or exchange of machinery, in either
      case,  in the  ordinary  course of  business  and for  usual and  ordinary
      prices;

                                       4
<PAGE>

                  (ii)  any assets in the ordinary  course of business which are
      replaced by substitute assets acquired or leased; or

                  (iii) licenses  and  similar  arrangements  for the use of the
      property of Chargor in the ordinary course of business; or

                  (iv)  any  assets  for  fair  market   value,   provided  that
      immediately  after giving  effect to each such  Transfer,  the fair market
      value (with respect to each such asset, determined on or about the date of
      the Transfer  thereof) of all assets subject to Transfer  pursuant to this
      clause (iv) would not exceed USD 5,000; or

                  (v)   with prior written consent of the Secured  Parties,  not
      to be unreasonably withheld.

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

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

            2.    Grant of Security Interests. As an inducement for each Secured
Party to enter into the transactions  contemplated by the Transaction  Documents
and to secure the  complete and timely  payment,  performance  and  discharge in
full, as the case may be, of the Obligations  owing to such Secured Party,  each
Secured  Party and the Chargor  hereby  create in favor of such Secured Party in
accordance  with  Sections  262 (2) and (5) of the Civil  Code a  non-possessory
security  interest (each a "SECURITY  INTEREST" and  collectively  the "SECURITY
INTERESTS")  in  and to all of the  following  tangible  movable  assets  of the
Chargor (collectively, the "COLLATERAL"):

            (i)   all inventory,  equipment, fixtures and other tangible movable
assets specifically set forth in Schedule B attached hereto, and

            (ii)  all   improvements,   accessions   on,   additions   to,   and
substitutions  or replacements  of the assets  described in paragraph (i) above,
created or acquired after March 31, 2006; and

                                       5
<PAGE>

            (iii) all  tangible  movable  assets,  created  or  acquired  in the
future.

            3.    Registration  of Security  Interests.  Each Security  Interest
shall be  created by its  registration  in the Charge  Register.  Each  Security
Interest shall be effective from the date of its registration or, in case of any
Collateral  acquired or created by the Chargor hereafter,  from such time as the
Chargor acquires the right of disposal over such Collateral.  The Chargor shall,
immediately  after the Security  Interests having come into effect,  register in
its accounting system and indicate in all of its financial reports the fact that
the Security Interests are created over the Collateral.

            4.    Ranking; Application for Registration.  Each Security Interest
shall rank pari passu with each other  Security  Interest.  The Chargor and each
Secured  Party  hereby  request  the  notary  public to  register  the  Security
Interests  in the  Charge  Register  over the  Collateral  by  entering a single
registration  of (i) the  Collateral  Agent as a  representative  of the Secured
Parties opposite to the heading "chargeholder",  (ii) the Aggregate Loan Amounts
opposite to the heading "amount of the secured debt" and (iii),  opposite to the
heading  "notes" a reference  that each  Security  Interest  shall be several by
indicating each Secured Party and the Obligation owing to such Secured Party.

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

            (a)   The Chargor has the requisite corporate power and authority to
enter into this Agreement and to otherwise carry out its obligations thereunder.
The execution, delivery and performance by the Chargor of this Agreement and the
registration of the Security Interests in the Charge Register in accordance with
this Agreement have been duly authorized by all necessary  action on the part of
the Chargor and no further action is required by the Chargor.

            (b)   Schedule B attached  hereto is a complete  and correct list of
all inventory,  equipment, fixtures and any other tangible movable assets of the
Chargor as of March 31,  2006.  The Chargor is the sole and (if required by law)
registered  owner of the  Collateral  set forth in Schedule B, free and clear of
all Liens (other than  Permitted  Liens),  and is fully  authorized to grant the
Security  Interests in and to pledge the  Collateral.  So long as this Agreement
shall be in  effect,  the  Chargor  shall not enter  into any  charge  agreement
covering  any  portion of the  Collateral  (except for  agreements  constituting
Permitted  Liens or charge in favor of the  Secured  Parties)  without the prior
consent of the Collateral Agent.

            (c)   The  Chargor  has no place of  business  or offices  where its
respective  books of account and records are kept (other than temporarily at the
offices of its attorneys or accountants) or places where the existing Collateral
is stored or located, except as set forth on Schedule C (the "Sites")

            (d)   The Chargor has no  knowledge  of any claim that any  Security
Interest or the Chargor's  ownership of any  Collateral or any interest  therein
violates  the rights of any third party.  There has been no adverse  decision of
which the Chargor is aware as to the Chargor's  exclusive (or  nonexclusive,  as
the case may be) rights to use the Collateral in any  jurisdiction,  and, to the
knowledge of the Chargor there is no proceeding involving said rights pending or
threatened before any court, judicial body, administrative or regulatory agency,
arbitrator or other governmental authority.

                                       6
<PAGE>

            (e)   The Chargor  shall at all times  maintain its books of account
and records  relating to the  Collateral at its principal  place of business and
(unless transferred by Permitted Transfers or pursuant to Section 13 (Conditions
for Sale of  Collateral  by Chargor))  its  Collateral  at the Sites and may not
relocate such books of account and records and the Collateral unless it delivers
to the Collateral  Agent at least thirty (30) days prior to such  relocation (i)
written notice of such  relocation  and the new location  thereof (which must be
within the United  States or the  Republic of Hungary)  and (ii)  evidence  that
appropriate  steps have been taken to maintain in favor of each Secured  Party a
valid, perfected and continuing first priority lien in the Collateral,  securing
the Obligations owing to such Secured Party.

            (f)   Upon  the  performance  of the  registrations  in  the  Charge
Register,  as set forth in Section 4 above,  this Agreement  creates in favor of
each Secured Party a valid and perfected first priority security interest in the
Collateral.  Except for the registration of the Security Interests in the Charge
Register,  no  authorization  or  approval  of or  filing  with or notice to any
governmental  authority or regulatory body is required either: (i) for the grant
by the Chargor  of, or the  effectiveness  of, the  Security  Interests  granted
hereby or for the execution,  delivery and  performance of this Agreement by the
Chargor or (ii) for the  perfection  of or exercise by such Secured Party of its
rights and remedies hereunder.

            (g)   The execution, delivery and performance of this Agreement does
not conflict with or cause a breach or default, or an event that with or without
the passage of time or notice,  shall constitute a breach or default,  under any
agreement  to which the Chargor is a party or by which the Chargor is bound.  No
consent (including,  without limitation,  from stock holders or creditors of the
Chargor) is required  for the Chargor to enter into and perform its  obligations
hereunder, other than consents already obtained by the Chargor.

            (h)   Unless  transferred  by  Permitted  Transfers  or  pursuant to
Section 13 (Conditions for Sale of Collateral by Chargor),  the Chargor shall at
all times  maintain the Security  Interests  provided for hereunder as valid and
perfected first priority  security  interests in the Collateral in favor of each
Secured  Party and insure  that such  Security  Interests  remain  senior to all
existing and hereafter created security  interests and Liens. The Chargor hereby
agrees to defend the same against any and all persons.

            (i)   The Chargor shall promptly notify the Collateral  Agent of the
acquisition of any specific Collateral which may be charged by registration into
specific registries other than the Charge Register,  and execute and deliver all
documents and  generally  perform any other action  reasonably  requested by the
Collateral  Agent  which are  necessary  to create and  register  such  specific
non-possessory charge.

            (j)   Unless by  operation  of  mandatory  provisions  of laws,  the
Chargor shall protect the Collateral and will not allow any material  Collateral
to be abandoned,  forfeited or dedicated to the public without the prior written
consent of the Collateral  Agent.  Except pursuant to 13 (Conditions for Sale of
Collateral  by  Chargor)  hereof and other than  Permitted  Liens and  Permitted
Transfers,  the  Chargor  will  not  transfer,  pledge,  hypothecate,  encumber,
license,  sell or otherwise  dispose of any of the Collateral  without the prior
written consent of the Collateral Agent.

                                       7
<PAGE>

            (k)   The Chargor shall keep the Collateral adequately insured by an
insurer of recognized standing in favor of the Collateral Agent (for the benefit
of the Secured  Parties)  against all risks which are  customary  for  Hungarian
companies  carrying out similar  activities  to insure and not later than thirty
(30) days from the date hereof,  deliver to the  Collateral  Agent a copy of the
insurance  policy  certifying that the Collateral  Agent (for the benefit of the
Secured Parties) has been recorded as the beneficiary of such insurance up to an
amount which equals to the Aggregate Loan Amount.

            (l)   The  Chargor  shall   maintain  and  use  the   Collateral  in
accordance  with their  intended  purpose  and Good  Industry  Practice so as to
protect  it from  any  material  reduction  in  value  and any and all  material
damages.

            (m)   The Chargor shall, within ten (10) days of obtaining knowledge
thereof, advise the Collateral Agent, in sufficient detail, of any claim, event,
physical or legal fact that may  adversely  impact any  material  portion of the
Collateral, and shall take all action necessary to protect the Collateral.

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

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

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

            (q)   The Chargor shall not use or permit any  Collateral to be used
unlawfully or in violation of any provision of this  Agreement or any applicable
statute,  regulation  or  ordinance  or any  policy of  insurance  covering  the
Collateral  where  violation  is  reasonably  likely to have a material  adverse
effect on the Secured  Parties'  rights in the  Collateral  or Secured  Parties'
ability to foreclose on the Collateral.

                                       8
<PAGE>

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

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

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

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

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

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

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

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

            (b)   The Collateral  Agent shall have the right to take  possession
of the Collateral in accordance with Sections 257 and 258 (1) of the Civil Code.
The Collateral Agent shall have the right to assign,  sell, or otherwise dispose
of and  deliver  all or any part of the  Collateral  (or  designate a person who
officially deals with granting loans against security and/or  organizing  public
sales to do so) as provided  under  Sections  257 and 258 of the Civil Code,  at
public or private sale or otherwise, for a purchase price not less than the Sale
Value, in U.S. Dollars (or an equivalent  amount in any other currency  selected
by the Collateral Agent), for cash or on credit or for future delivery,  in such
portion or portions and at such time or times within a maximum period of fifteen
(15) months from the date of the Event of Default  Redemption Notice giving rise
thereto,  and at such place or places, and upon such terms and conditions as the
Collateral Agent may deem commercially  reasonable and as are in compliance with
any  applicable  laws.  Upon each such sale,  assignment  or other  transfer  of
Collateral,  the  Collateral  Agent and/or any Secured Party may purchase all or
any part of the Collateral  being sold,  free from and discharged of all trusts,
claims, right of redemption and equities of the Chargor, which are hereby waived
and released.

                                       9
<PAGE>

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

            (d)   The   Collateral   Agent  may,  in  order  to  implement   the
assignment,  sale or other disposition of any of the Collateral pursuant to this
Section,  execute and deliver (pursuant to the authority provided for in Section
11 (Power of Attorney; Further Assurances)) on behalf of the Chargor one or more
instruments  of  assignment  of the  Collateral  in form  suitable  for  filing,
recording  or  registration  in any  jurisdictions  as the  Secured  Parties may
determine advisable.

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

            (b)   The Chargor agrees to pay all  out-of-pocket  fees,  costs and
expenses reasonably incurred in connection with the registration of the Security
Interests in the Charge Register, including, without limitation, any expenses of
any searches reasonably required by the Collateral Agent. The Chargor shall also
pay all other  claims and charges  (other  than  Permitted  Liens)  which in the
reasonable  opinion  of  the  Collateral  Agent  and/or  Secured  Parties  would
reasonably be expected to prejudice,  imperil or otherwise affect the Collateral
or any Security Interest therein. Without prejudice to the provisions of Section
5(o) above,  the Chargor will also,  upon demand,  pay to the  Collateral  Agent
and/or Secured Parties the amount of any and all reasonable expenses,  including
the  reasonable  fees and expenses of its counsel and of any experts and agents,
which the Collateral  Agent and/or Secured  Parties may incur in connection with
the inspection,  custody or preservation of, or the sale of, collection from, or
other realization upon, any of the Collateral.

      9.    Responsibility  for Collateral.  Without prejudice to the provisions
of Section 13 (Conditions for Sale of Collateral by Chargor) below,  the Chargor
shall maintain and protect the Collateral as a whole and provide  without delay,
upon  occurrence of any material  adverse change in the value of the Collateral,
adequate  security for the  Obligations.  For the  avoidance  of doubt,  for the
purposes of the  previous  sentence,  a material  adverse  change shall mean any
decrease in the  aggregate  fair market value of the  Collateral  exceeding  USD
5,000.

                                       10
<PAGE>

      10.   Term of Security Interest. Each Security Interest shall terminate on
the date on which all payments under the respective Notes have been made in full
or  otherwise  converted  pursuant  to the  terms  thereof  and  the  respective
Obligations  have been paid or discharged in full.  Upon such  termination,  the
respective  Secured Party,  at the request of the Chargor to be delivered to the
Collateral  Agent,  will release any consent  required for  cancellation  of the
Security Interest from the Charge Register or otherwise  evidencing  termination
of the  Security  Interest.  The  Chargor  shall be  responsible  for filing the
application for cancellation with the Charge Register.

      11.   Power  of  Attorney;  Further  Assurances.  (a) The  Chargor  hereby
authorizes the Collateral  Agent (acting on behalf of each Secured  Party),  and
its  respective  officers,  agents,  successors  or  assigns  with full power of
substitution, as the Chargor's true and lawful attorney-in-fact,  with power, in
the name of the Chargor,  to, after the occurrence and during the continuance of
an Event of Default,  (i) endorse any notes,  checks,  drafts,  money orders, or
other instruments of payment (including  payments payable under or in respect of
any policy of  insurance)  in respect of the  Collateral  that may come into its
possession;  (ii) to sign and endorse any invoice, freight or express bill, bill
of lading, storage or warehouse receipts,  drafts against Chargor,  assignments,
verifications  and notices in  connection  with  accounts,  and other  documents
relating to the Collateral;  (iii) to pay or discharge  taxes,  Liens,  security
interests or other  encumbrances  at any time levied or placed on or  threatened
against the Collateral; (iv) to demand, collect, receipt for, compromise, settle
and sue for monies due in respect of the Collateral;  and (v) generally,  to do,
at the option of the Collateral Agent (acting on behalf of the Secured Parties),
as the case may be, and at the Chargor's  expense,  at any time, or from time to
time, all acts and things which the Collateral  Agent, as the case may be, deems
necessary to protect,  preserve and realize upon the Collateral and the Security
Interests  granted therein,  in order to effect the intent of this Agreement and
the Notes,  all as fully and  effectually  as the Chargor might or could do; and
the Chargor hereby ratifies all that said attorney shall lawfully do or cause to
be done by virtue hereof.

      (b)   On a continuing basis, the Chargor will make, execute,  acknowledge,
deliver,  file and record, as the case may be, with the Charge Register all such
instruments,  and take all such  action as  necessary  to perfect  any  Security
Interest  granted  hereunder and  otherwise to carry out the  provisions of this
Agreement,  or for assuring and  confirming to the Secured  Parties the grant or
perfection of a first priority security interest in all the Collateral.

      (c)   The  Chargor  hereby  agrees to  co-operate  in good faith with each
Secured Party and the Collateral Agent, from time to time in the filing with the
Charge Register, any amendments of the data recorded in the Charge Register with
respect the Security Interest.

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

                                       11
<PAGE>

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

      13.   Conditions  for Sale of Collateral by Chargor.  The Chargor shall be
entitled to sell all or a portion of the Collateral to an unaffiliated purchaser
for a net purchase price which is equal to or greater than the fair market value
of such  Collateral  (the "PURCHASE  PRICE") if such purchaser shall deliver the
Purchase Price to the Secured  Parties (on a pro-rata  basis) for the prepayment
of such portion of the outstanding principal amount of Notes held by the Secured
Parties. Upon the Secured Parties'  unconditional receipt of the Purchase Price,
the  Secured  Parties'  liens in any item of  Collateral  that is subject of the
foregoing sale shall automatically terminate. Notwithstanding anything herein to
the contrary,  if, as a result of a potential sale of Collateral pursuant to the
immediately  preceding  sentence,  there shall remain an  outstanding  principal
amount of Notes (including  accrued  interest  thereon) then held by the Secured
Parties,  then such  sale  shall  only be  permitted  if it would  result in the
receipt by the Secured Parties of a Purchase Price  sufficient to prepay no less
than 50% of the outstanding principal balance of the Notes.

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

If to the Borrower (this address being set forth solely for the purposes of
evidencing the date of deemed receipt by the Borrower of an Event of Default
Redemption Notice in the application of Section 7 (Rights and Remedies Upon
Default) hereunder):

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

                                       12
<PAGE>

      With a copy to:

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

If to the Chargor:

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

                  With a copy to:

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

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

                                       13
<PAGE>

If to Iroquois Master Fund Ltd. as Secured Party:

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

If to Rockmore Investment Master Fund, Ltd. as Secured Party:

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

If to Cranshire Capital, L.P. as Secured Party:

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

If to Grace Brothers, Ltd. as Secured Party:

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

If to RAQ LLC as Secured Party:

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

                                       14
<PAGE>

If to Paragon Capital, L.P. as Secured Party:

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

If to Nite Capital, L.P. as Secured Party:

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

If to Bristol Investment Fund, Ltd. as Secured Party:

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

If to Global Hunter Holdings, L.P. as Secured Party:

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

If to Hudson Bay Fund L.P. as Secured Party:

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

                                       15
<PAGE>

If to Ronald Hart as Secured Party:

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

If to Kuekenhof Capital Management, LLC as Secured Party:

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

If to Simon Halegoua as Secured Party:

                  Simon Halegoua
                  1 Crescent Road
                  Belle Teere, New York 11777 USA
                  Telephone: (631) 928-9225
If to Isaak Halegoua as Secured Party:

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

If to Audrey Halegoua as Secured Party:

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

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

                                       16
<PAGE>

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

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

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

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

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

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

                                       17
<PAGE>

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

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

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

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

 -----------------------******************************--------------------------

An  unlimited  number of official  copies of the present deed may be issued to
the Parties.____________________________________________________________________
I informed the clients that a notarial deed is enforceable if it contains
a) that the parties assume an obligation and due consideration  therefor, or a
unilateral obligation,__________________________________________________________
b) name of the obligee and the obligor,_________________________________________
c) subject, quantity (amount) and title of the obligation,______________________
d) term and way of fulfilment.__________________________________________________
Should the  obligation be bound to a condition or point of time, it is necessary
for the  enforceability  that the occurence of the condition or point of time is
certified by a notarial deed.___________________________________________________

I, the undersigned  notary  substitute,  have prepared this document on basis of
the  draft  put at my  disposal,  have  read it in  front of the  Parties,  have
explained to them its content and legal consequences,  in particular with regard
to its  enforceability.  The  Parties  have  declared  that the  content of this
document  complies in all respects with their  contractual  intent and thus this
document has been signed by the Parties,  the  interpreter  and the  transaction
witnesses and by me.

Executed at the City of Budapest,  on the 12th (twelve) day of June,  2006. (Two
Thousand  Six) Dr. Palfi Endre m.p.  Smithfield  Fiduciary  LLC, Dr. Palfi Endre
m.p. Iroquois Master Fund Ltd., Dr. Palfi Endre m.p. Rockmore  Investment Master
Fund,  Ltd., Dr. Palfi Endre m.p.  Cranshire  Capital L.P., Dr. Palfi Endre m.p.
Grace  Brothers,  Ltd.,  Dr.  Palfi Endre m.p.  RAQ,  LLC,  Dr. Palfi Endre m.p.
Paragon  Capital,  L.P.,  Palfi Endre m.p. Nite Capital,  L.P., Palfi Endre m.p.
Bristol  Investment Fund,  Ltd., Palfi Endre m.p. Global Hunter Holdings,  L.P.,
Palfi Endre m.p. Hudson Bay Fund L.P., Palfi Endre m.p. Ronald Hart, Palfi Endre
m.p. Kuekenhof Capital Management,  LLC, Palfi Endre m.p. Simon Halegoua,  Palfi
Endre m.p. Isaak Halegoua,  Palfi Endre m.p. Audrey Halegoua,  Tibor Kovacs m.p.
Kraft Elektronikai  Zartkoruen Mukodo  Reszvenytarsasag.  [***] m.p. interpreter
and witness, [***] m.p. witness, [***] m.p. Notary.

It is hereby  certified  that the present  Certified  Office Copy being true and
faithful copy of the original of the notarial deed  deposited  with the archives
of Dr. Bokai Judit under registration number above.________________  Executed at
the City of Budapest, on the 12th (twelve) day of June, 2006. (Two Thousand Six)

                                       18
<PAGE>

                                    [***]
                                    Notary

                                       19
<PAGE>

                                   SCHEDULE A

                                  LOAN AMOUNTS

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

      NAME OF THE SECURED PARTIES                     LOAN AMOUNTS
--------------------------------------------------------------------------------

        Smithfield Fiduciary LLC                      USD 1,000,000
--------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<PAGE>

                                  SCHEDULE B

                  EXISTING INVENTORY, EQUIPMENT AND FIXTURES

                                       2

<PAGE>

                                  SCHEDULE C

                                    SITES

1.    H-1112 Budapest, Koerberki ut 36.

2.    H-9931 Hegyhatszentmarton, Fo utca 1.

3.    H-9900 Kormend, Hegyalja ut 14.

                                       3

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