Document:

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                                                                   EXHIBIT 10.39

THIS COMMON STOCK PURCHASE WARRANT AND THE SHARES ISSUABLE UPON EXERCISE HEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
OTHER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS EITHER (I) SUCH
SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT OF 1933 AND REGISTERED OR
QUALIFIED UNDER ANY OTHER APPLICABLE SECURITIES STATUTE, OR (II) SUCH SECURITIES
MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, OR OTHERWISE DISPOSED OF
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND ANY OTHER APPLICABLE SECURITIES STATUTE. THE
CORPORATION MAY, IN ITS DISCRETION, REQUIRE DELIVERY OF AN OPINION OF COUNSEL,
IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION, TO THE EFFECT
SUCH EXEMPTIONS ARE AVAILABLE FOR THE OFFER, SALE, TRANSFER, PLEDGE OR OTHER
DISPOSITION OF THE SHARES REPRESENTED HEREBY.

                          COMMON STOCK PURCHASE WARRANT

                                  ______, 2003

         MigraTEC, Inc., a Delaware corporation (the "Corporation") does hereby
certify and agree that, for good and valuable consideration (the existence,
sufficiency and receipt of which are hereby acknowledged by the Corporation),
_________________ (the "Holder") is entitled to purchase from the Corporation,
during the term set forth in Section 1 hereof, up to an aggregate amount of
_______ shares (the "Exercise Quantity") of duly authorized, validly issued,
fully paid and non-assessable shares of common stock, par value $0.001 per
share, of the Corporation ("Common Stock"), all upon the terms and provisions
(and subject to adjustment of such Exercise Quantity) of this Common Stock
Purchase Warrant (the "Warrant"). The exercise price per share of Common Stock
for which this Warrant is exercisable shall be $0.01 (the "Exercise Price").

         1. Term of the Warrant. The term of this Warrant commences as of the
date hereof, and shall expire at 5:00 P.M., Central time, on _____, 2008.

         2. Investment Representations.

         (a) The Holder has carefully reviewed and understands the risk of an
investment in the Corporation; is able to bear the economic risk of an
investment in this Warrant and the Warrant Securities (as defined herein); can
withstand a complete loss of its investment in this Warrant and the Warrant
Securities; can hold this Warrant and the Warrant Securities for an indefinite
period of time;

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and has the net worth to undertake these risks. The Holder believes that it,
either alone or together with its advisors, has the knowledge and experience in
business and financial matters that make it capable of evaluating the merits and
risks of an investment in this Warrant and the Warrant Securities.

         (b) The Holder understands that an investment in this Warrant and the
Warrant Securities is highly speculative. The Holder believes an investment in
this Warrant and the Warrant Securities is suitable for it based upon its
investment objectives and financial needs, and the Holder has no need for
liquidity in its investment in this Warrant and the Warrant Securities.

         (c) This Warrant and the Warrant Securities are being acquired solely
for the Holder's own account and not as a nominee for any other party and the
Holder will not offer, sell or otherwise dispose of this Warrant or any Common
Stock or any other securities of the Corporation that may at any time be issued
upon exercise hereof except under circumstances that will not result in a
violation of the Securities Act of 1933, as amended (the "Act") or any state
securities laws. Upon exercise of this Warrant, the Holder shall, if requested
by the Corporation, confirm in writing, in a form satisfactory to the
Corporation, that the Common Stock or other securities so purchased are being
acquired solely for the Holder's own account and not as a nominee for any other
party, for investment, and not with a view toward distribution or resale.

         (d) The Holder understands and acknowledges that (i) this Warrant and
the Warrant Securities will, after issuance, be "restricted securities," as that
term is defined in Rule 144 promulgated under the Act; (ii) this Warrant and the
Warrant Securities are being offered and sold pursuant to an exemption from
registration under the Act; and (iii) the transactions contemplated in this
Warrant have not been reviewed or passed upon by any federal or state agency.

         (e) The Holder is an "accredited investor" as defined in Regulation D
promulgated under the Act.

         (f) The Holder understands and acknowledges that the Corporation is
relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings of the Holder set forth herein in
order to determine the suitability of the Holder to acquire this Warrant and the
Warrant Securities and the Holder hereby consents to such reliance.

         3. Exercise of Warrant.

                  (a) This Warrant may be exercised by the Holder of this
         Warrant at any time during the term hereof, in whole or in part, from
         time to time (but not for fractional shares, unless this Warrant is
         exercised in whole), by presentation and surrender of this Warrant to
         the Corporation, together with the annexed Exercise Form duly completed
         and executed and payment in the aggregate amount equal to the Exercise
         Price multiplied by the number of shares of Common Stock being
         purchased. At the option of the Holder, payment of the Exercise Price
         may be made either by (i) certified check payable to the order of the
         Corporation, (ii) surrender

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         of certificates then held representing, or deduction from the number of
         shares issuable upon exercise of this Warrant, of that number of shares
         which has an aggregate Fair Value on the date of exercise equal to the
         aggregate Exercise Price for all shares to be purchased pursuant to
         this Warrant, or (iii) by any combination of the foregoing methods.
         Within five (5) business days of the Corporation's receipt of this
         Warrant, the completed and signed Exercise Form and the requisite
         payment (if any), the Corporation shall issue and deliver (or cause to
         be delivered) to the exercising Holder stock certificates aggregating
         the number of shares of Common Stock purchasable or purchased from time
         to time under this Warrant (the "Warrant Securities") or acquirable or
         acquired upon any transfer of any such securities, together with all
         additional securities receivable or received in payment of dividends or
         distributions on or splits of those securities or receivable or
         received as a result of adjustments.

                  (b) "Fair Value" as of a particular date means the closing
         asked price of the Common Stock as reported on a national securities
         exchange or on the NASDAQ SmallCap, National Market System or OTC
         Bulletin Board Service (collectively, and as applicable, "NASDAQ") or,
         if a last asked quotation is not available for the Common Stock, the
         last sale price of the Common Stock as reported by NASDAQ, or if not so
         reported, as listed in the National Quotation Bureau, Inc.'s "Pink
         Sheets." If such quotations are unavailable, or with respect to other
         appropriate security, property, assets, business or entity, Fair Value
         shall mean the fair value of such item as determined by the
         Corporation's Board of Directors in its good faith judgment.

                  (c) In the event the Holder of this Warrant desires that any
         or all of the stock certificates to be issued upon the exercise hereof
         be registered in a name or names other than that of the Holder of this
         Warrant, the Holder must (i) so request in writing at the time of
         exercise if the transfer is not a registered transfer, and (ii) provide
         to the Corporation evidence reasonably satisfactory to the Corporation
         to the effect that the proposed transfer may be effected without
         registration under the Act.

                  (d) Upon the due exercise by the Holder of this Warrant,
         whether in whole or in part, the Holder (or any other person to whom a
         stock certificate is to be so issued) shall be deemed for all purposes
         to have become the Holder of record of the shares of Common Stock for
         which this Warrant has been so exercised, effective immediately prior
         to the close of business on the date this Warrant, the completed and
         signed Exercise Form and the requisite payment were duly delivered to
         the Corporation, irrespective of the date of actual delivery of
         certificates representing such shares of Common Stock so issued.

         4. Surrender of Warrant; Expenses.

                  (a) Whether in connection with the exercise, exchange or
         registration of transfer or replacement of this Warrant, surrender of
         this Warrant shall be made to the Corporation during

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         normal business hours on a business day (unless the Corporation
         otherwise permits) at the executive offices of the Corporation or to
         such other office or duly authorized representative of the Corporation
         as from time to time may be designated by the Corporation by written
         notice given to the Holder of this Warrant.

                  (b) The Corporation shall pay all costs and expenses incurred
         in connection with the exercise, registration, exchange, transfer or
         replacement of this Warrant, including the costs of preparation,
         execution and delivery of warrants and stock certificates, and shall
         pay all taxes (other than any taxes measured by the income of any
         individual, corporation, partnership, limited liability company,
         association, joint-stock company, trust, estate, unincorporated
         organization, joint venture, court or governmental or political
         subdivision or agency thereof (each being a "Person" other than the
         Corporation) and other charges imposed by law payable in connection
         with the transfer or replacement of this Warrant.

                  (c) The Corporation shall deliver or cause to be delivered to
         the Holder exercising this Warrant or any portion hereof certificates
         representing the shares of Common Stock issuable upon such exercise
         within five (5) business days of the surrender and delivery by the
         Holder to the Corporation of this Warrant and a duly completed Exercise
         Form and the requisite payment.

         5. Warrant Register; Exchange; Loss.

                  (a) The Corporation will maintain a register (the "Warrant
         Register") containing the names and addresses of the Holder or Holders.
         Any Holder of this Warrant or any portion thereof may change his
         address as shown on the Warrant Register by written notice to the
         Corporation requesting such change. Any notice or written communication
         required or permitted to be given to the Holder may be delivered or
         given by mail to the Holder as shown on the Warrant Register and at the
         address shown on the Warrant Register. Until this Warrant is
         transferred on the Warrant Register of the Corporation, the Corporation
         may treat the Holder as shown on the Warrant Register as the absolute
         owner of this Warrant for all purposes, notwithstanding any notice to
         the contrary.

                  (b) This Warrant may be exchanged for two or more warrants
         entitling the identical Holder hereof to purchase the same aggregate
         Exercise Quantity at the same Exercise Price per share and otherwise
         having the same terms and provisions as this Warrant. The identical
         Holder may request such an exchange by surrender of this Warrant to the
         Corporation, together with a written exchange request specifying the
         desired number of warrants and allocation of the Exercise Quantity
         purchasable under the existing Warrant.

                  (c) Upon receipt by the Corporation of evidence reasonably
         satisfactory to it of the ownership of and the loss, theft, destruction
         or mutilation of this Warrant, and (i) in the case of loss, theft or
         destruction, upon receipt by the Corporation of indemnity reasonably
         satisfactory

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         to it, or (ii) in the case of mutilation, upon surrender and
         cancellation thereof, the Corporation, at its expense, will execute,
         register and deliver, in lieu thereof, a new certificate or instrument
         for (or covering the purchase of) this Warrant.

                  (d) The Corporation will not close its books against the
         transfer of this Warrant or any of the Warrant Securities in any manner
         which interferes with the timely exercise of this Warrant. The
         Corporation will from time to time take all such action as may be
         necessary to assure that the par value per share of the unissued Common
         Stock acquirable upon exercise of this Warrant is at all times equal or
         less than the Exercise Price then in effect.

         6. Transfer of Warrant.

                  (a) This Warrant and the Warrant Securities may not be
         transferred or assigned without compliance with all applicable federal
         and state securities laws by the transferor and the transferee
         (including the delivery of investment representation letters and legal
         opinions reasonably satisfactory to the Corporation, if such are
         requested or required by the Corporation). Subject to the provisions of
         this Warrant with respect to compliance with the Act, and applicable
         state securities laws, this Warrant and the Warrant Securities may be
         transferred by endorsement (by the Holder executing the Assignment Form
         annexed hereto) and delivery of the same.

                  (b) A transfer may be registered with the Corporation by
         submission to it of this Warrant, together with the annexed Assignment
         Form duly completed and executed, and if the transfer is not a
         registered transfer, evidence reasonably satisfactory to the
         Corporation that such transfer is in compliance with federal and state
         securities laws. Within five (5) business days after the Corporation's
         receipt of this Warrant and the Assignment Form so completed and
         executed, the Corporation will issue and deliver to the transferee a
         new Warrant representing the portion of the Exercise Quantity
         transferred at the same Exercise Price per share and otherwise having
         the same terms and provisions as this Warrant, which the Corporation
         will register in the new Holder's name.

                  (c) On surrender of this Warrant for exchange, properly
         endorsed on the Assignment Form and subject to the provisions of this
         Warrant, the Corporation at its expense shall issue to, or on the order
         of, the Holder a new warrant or warrants of like tenor, in the name of
         the Holder, or as the Holder (on payment by the Holder of any
         applicable transfer taxes) may direct, for the number of shares
         issuable upon exercise hereof.

                  (d) Compliance with Securities Laws and Legends. All Common
         Stock or any other securities of the Corporation that may at any time
         be issued upon exercise hereof or conversion thereof shall be stamped
         or imprinted with a legend in substantially the following form (in
         addition to any legend required by state securities laws):

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<PAGE>

                           THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
                           BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR
                           ANY OTHER APPLICABLE STATE SECURITIES LAWS AND MAY
                           NOT BE OFFERED FOR SALE, SOLD, ASSIGNED, TRANSFERRED,
                           PLEDGED OR OTHERWISE DISPOSED OF UNLESS EITHER (I)
                           SUCH SHARES ARE REGISTERED UNDER THE SECURITIES ACT
                           OF 1933 AND REGISTERED OR QUALIFIED UNDER ANY OTHER
                           APPLICABLE SECURITIES STATUTE, OR (II) SUCH SHARES
                           MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
                           OR OTHERWISE DISPOSED OF PURSUANT TO AN EXEMPTION
                           FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
                           ACT OF 1933 AND ANY OTHER APPLICABLE SECURITIES
                           STATUTE. THE CORPORATION MAY, IN ITS DISCRETION,
                           REQUIRE DELIVERY OF AN OPINION OF COUNSEL, IN FORM
                           AND SUBSTANCE REASONABLY SATISFACTORY TO THE
                           CORPORATION, TO THE EFFECT SUCH EXEMPTIONS ARE
                           AVAILABLE FOR THE OFFER, SALE, TRANSFER, PLEDGE OR
                           OTHER DISPOSITION OF THE SHARES REPRESENTED HEREBY.

         7. Registration Rights. The Holder shall be entitled to piggyback
registration rights with respect to the Warrant Securities in connection with
either (i) the Corporation's registration statement on Form SB-2 (File no.
333-104797), which also constitutes a post-effective amendment to the
Corporation's registration statement on Form SB-2 (File no. 333-44946), or (ii)
the first post-effective amendment to the Corporation's registration statement
on Form SB-2 (File no. 333-44946) filed by the Corporation with the Securities
and Exchange Commission after the date hereof.

         8. Rights and Obligations of the Corporation and the Holder. This
Warrant shall not entitle its Holder to any rights of a stockholder in the
Corporation (other than as provided herein).

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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         IN WITNESS WHEREOF, the Corporation has caused this Warrant to be
executed by its duly authorized representative as of the date first above
written.

                                    MIGRATEC, INC.

                                    By:
                                           -------------------------------------
                                           T. Ulrich Brechbuhl
                                           President and Chief Executive Officer

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<PAGE>

                                 MigraTEC, Inc.
                                 EXERCISE FORM

MigraTEC, Inc.  (the "Corporation")

         The undersigned hereby irrevocably elects to exercise the right of
purchase represented by the within Warrant Certificate for, and to purchase
thereunder, ______ shares of common stock of the Corporation (the "Warrant
Securities"), and requests that certificates for the Warrant Securities be
issued in the name of:

       -------------------------------------------------------------------
         (Please print or Type Name, Address and Social Security Number)

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

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

and, if said number of shares of Warrant Securities shall not be all the Warrant
Securities purchasable hereunder, that a new Warrant Certificate for the balance
of the Warrant Securities purchasable under the within Warrant Certificate be
registered in the name of the undersigned Holder or his Assignee as below
indicated and delivered to the address stated below.

Dated:
      ------------------------------

Name of Holder
or Assignee:
                  ----------------------------
                         (Please Print)

Address:
                  ----------------------------

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

Signature:
                  ----------------------------

Note: The above signature must correspond with the name as it appears upon the
face of this Warrant Certificate in every particular, without alteration or
enlargement or any change whatever, unless these Warrants have been assigned.

<PAGE>

                                 MigraTEC, Inc.
                                   ASSIGNMENT
                 (To be signed only upon assignment of Warrants)

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
the right to purchase ______ shares of common stock represented by the within
Warrant Certificate unto, and requests that a certificate for such Warrant be
issued in the name of:

       -------------------------------------------------------------------
         (Please print or Type Name, Address and Social Security Number)

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

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

The undersigned hereby irrevocably constitutes and appoints
________________________ Attorney to transfer said Warrant on the books of the
Corporation, with full power of substitution in the premises and, if said number
of shares of common stock shall not be all of the common stock purchasable under
the within Warrant Certificate, that a new Warrant Certificate for the balance
of the common stock purchasable under the within Warrant Certificate be
registered in the name of the undersigned Holder and delivered to the Holder's
address as then set forth on the Corporation's books.

Dated:
      ------------------------------      --------------------------------------
                                          Signature of Registered Holder

Note: The above signature must correspond with the name as it appears upon the
face of this Warrant Certificate in every particular, without alteration or
enlargement or any change whatever.<PAGE>
                                                                   EXHIBIT 10.40

                               SECURITY AGREEMENT

         This Security Agreement (this "Agreement") dated as of May 30, 2003, is
made by and among MigraTEC, Inc., a Delaware corporation ("Debtor"), the persons
listed on Schedule A hereto who execute counterpart signature pages to this
Agreement (each such person referred to herein as a "Secured Party" or
"Investor" and collectively with their successors and assigns, the "Secured
Parties" or the "Investors") and Collateral Agent (as defined herein) for the
benefit of the Secured Parties.

         WHEREAS, pursuant to that certain Notes and Warrant Purchase Agreement
dated as of even date herewith by and between Debtor and the Investors (the
"Purchase Agreement") and the Convertible Secured Promissory Notes dated of even
date herewith issued by Debtor to each of the Secured Parties (the "Notes"), the
Secured Parties may extend credit to Debtor; and

         WHEREAS, as a condition to extending credit to Debtor under the Notes,
the Secured Parties have required the execution and delivery of this Agreement
by Debtor.

         NOW, THEREFORE, BE IT RESOLVED, in consideration of the mutual
covenants contained in the Purchase Agreement, the Notes and herein, the parties
hereby agree as follows:

         1. Definitions. All terms defined in the recitals hereto and the
Purchase Agreement that are not otherwise defined herein shall have the meanings
given them in the recitals and the Purchase Agreement. All terms defined in the
UCC and not otherwise defined herein have the meanings assigned to them in the
UCC. In addition, the following terms have the meanings set forth below or in
the referenced Section of this Agreement:

                  "Collateral" means all of Debtor's accounts, chattel paper,
         deposit accounts, documents, equipment, financial assets, fixtures,
         general intangibles, goods, instruments, Intellectual Property Rights,
         inventory, investment property, letter-of-credit rights, letters of
         credit, and all other personal property and assets, whether now owned
         or hereafter acquired, together with (i) all substitutions and
         replacements for and products of any of the foregoing; (ii) in the case
         of all goods, all accessions; (iii) all accessories, attachments,
         parts, equipment and repairs now or hereafter attached or affixed to or
         used in connection with any goods; (iv) all warehouse receipts, bills
         of lading and other documents of title now or hereafter covering such
         goods; (v) any money, or other assets of Debtor that now or hereafter
         come into the possession, custody, or control of the Secured Party; and
         (vi) proceeds of any and all of the foregoing.

                  "Collateral Account" shall have the meaning set forth in
         Subsection 7(a).

                  "Collateral Agent" means 1900 Cedar Springs, LP, a Texas
         limited partnership ("1900 Cedar Springs").

                  "Event of Default" has that meaning set forth in the Purchase
         Agreement except as otherwise provided herein.

                  "Intellectual Property Rights" means all actual or prospective
         rights arising in connection with any intellectual property or other
         proprietary rights, including all rights

<PAGE>

         arising in connection with copyrights, patents, service marks, trade
         dress, trade secrets, trademarks, trade names or mask works.

                  "Law" means any statute, law, ordinance, regulation, rule,
         order, writ, injunction or decree of any state, commonwealth, federal,
         foreign, territorial or other court or government body, subdivision,
         agency, department, commission, board, bureau or instrumentality of a
         governmental body.

                  "Lien" means any security interest, mortgage, deed of trust,
         pledge, lien, charge, encumbrance, title retention agreement or
         analogous instrument or device, including the interest of each lessor
         under any capitalized lease and the interest of any bondsman under any
         payment or performance bond, in, of or on any assets or properties of a
         person, whether now owned or hereafter acquired and whether arising by
         agreement or operation of Law.

                  "Loan Documents" means (i) the Purchase Agreement; (ii) the
         Notes; (iii) this Agreement and (iv) any other security agreements,
         financing statements, deeds of trust or mortgages, assignments,
         agreements, instruments or documents executed by Debtor in favor of
         Collateral Agent, for the benefit of the Secured Parties, as the same
         may be amended, restated or modified from time to time (the "Security
         Documents").

                  "Majority Investors" means those Investors whose Sharing
         Percentages total at least fifty-one percent (51%) of the aggregate
         principal due under the Notes.

                  "Obligations" means each and every debt, liability and
         obligation of every type and description which Debtor may now or at any
         time hereafter owe to the Secured Parties in relation to the Notes.

                  "Permitted Liens" means (i) the Security Interest, (ii)
         covenants, restrictions, rights, easements and minor irregularities in
         title which do not materially interfere with Debtor's business or
         operations as presently conducted, and (iii) Liens in existence on the
         date hereof.

                  "Security Interest" has the meaning given in Section 2.

                  "Sharing Percentage" means as to any Investor, the percentage
         equivalent of a fraction of which (i) the numerator is the Pro Rata
         Portion of the Total Loan Amount, and (ii) the denominator is the Total
         Loan Amount.

                  "UCC" means Uniform Commercial Code as in effect from time to
         time in the State of Delaware.

         2. Security Interest. Debtor hereby grants Collateral Agent, for the
benefit of the Secured Parties, a security interest (the "Security Interest") in
the Collateral to secure payment of the Obligations.

         3. Representations, Warranties, Covenants and Agreements. Debtor hereby
represents, warrants, covenants and agrees as follows:

SECURITY AGREEMENT - PAGE 2

<PAGE>

                  (a) Title. Debtor has absolute title to each item of
         Collateral in existence on the date hereof, free and clear of all Liens
         except Permitted Liens.

                  (b) Chief Executive Office; Identification Numbers. Debtor's
         chief executive office and principal place of business is located at
         the address set forth under its signature below. Debtor's federal
         employer identification number and organizational identification number
         are correctly set forth under its signature below.

                  (c) Location of Collateral. As of the date hereof, the
         tangible Collateral is located at Debtor's chief executive office and
         principal place of business at the address set forth under Debtor's
         signature below. Debtor will not permit any tangible Collateral to be
         located in any state (and, if county filing is required, in any county)
         in which a financing statement covering such Collateral is required to
         be, but has not in fact been, filed in order to perfect the Security
         Interest.

                  (d) Miscellaneous Covenants. Debtor will:

                           (i) at all reasonable times, permit Collateral Agent
                  and all representatives and agents appointed by Collateral
                  Agent to examine or inspect any Collateral, wherever located,
                  and to examine, inspect and copy Debtor's books and records
                  pertaining to the Collateral and its business and financial
                  condition and to send and discuss with account debtors and
                  other obligors requests for verifications of amounts owed to
                  Debtor;

                           (ii) if Collateral Agent at any time so requests
                  (after the occurrence of an Event of Default), promptly
                  deliver to Collateral Agent, for the benefit of the Secured
                  Parties, any instrument, document or chattel paper
                  constituting Collateral, duly endorsed or assigned by Debtor;

                           (iii) from time to time execute such financing
                  statements as Collateral Agent, for the benefit of the Secured
                  Parties, may reasonably require in order to perfect the
                  Security Interest and, if any Collateral consists of a motor
                  vehicle, execute such documents as may be required to have the
                  Security Interest properly noted on a certificate of title;

                           (iv) pay when due or reimburse Collateral Agent on
                  demand for all costs of collection of any of the Obligations
                  and all other reasonable out-of-pocket expenses (including in
                  each case all reasonable attorneys' fees) incurred by
                  Collateral Agent in connection with the creation, perfection,
                  satisfaction, protection, defense or enforcement of the
                  Security Interest or the creation, continuance, protection,
                  defense or enforcement of this Agreement or any or all of the
                  Obligations, including expenses incurred in any litigation or
                  bankruptcy or insolvency proceedings;

                           (v) execute, deliver or endorse any and all
                  instruments, documents, assignments, security agreements and
                  other agreements and writings which Collateral Agent, on
                  behalf of the Secured Parties, may at any time reasonably
                  request in order to secure, protect, perfect or enforce the
                  Security Interest and Collateral Agent's rights under this
                  Agreement; and

SECURITY AGREEMENT - PAGE 3

<PAGE>

                           (vi) not use or keep any Collateral, or permit it to
                  be used or kept, for any unlawful purpose or in violation of
                  any applicable Law.

                  (e) Collateral Agent's Right to Take Action. Debtor authorizes
         Collateral Agent, on behalf of the Secured Parties, to file from time
         to time where permitted by applicable Law, such financing statements
         against Collateral described as "all personal property" or "all assets"
         or describing specific items or categories of Collateral as Collateral
         Agent deems necessary or useful to perfect the Security Interest.
         Debtor will not amend any financing statements in favor of Collateral
         Agent, on behalf of the Secured Parties, except as permitted by
         applicable Law.

         4. Continuing Liability.

                  (a) Debtor hereby expressly agrees that notwithstanding
         anything contained herein or elsewhere to the contrary, Debtor shall
         remain liable under each contract, agreement, interest and obligation
         assigned to Collateral Agent and in which Collateral Agent, on behalf
         of the Secured Parties, is granted a Security Interest hereunder to
         observe and perform all the conditions and obligations and provisions
         thereof; it being expressly agreed and understood that Collateral Agent
         shall have no obligation or liability of any kind whatsoever under any
         such contract, agreement, interest and/or obligation by reason of,
         arising out of or otherwise in connection with this Agreement, the
         assignments to Collateral Agent herein contained, the granting to
         Collateral Agent of any Security Interest hereunder or the receipt by
         Collateral Agent of any payment relating to any such contract,
         agreement, interest and obligation pursuant hereto. Further, neither
         Collateral Agent nor the Secured Parties shall be required or obligated
         in any manner whatsoever to perform or fulfill any of the obligations
         of Debtor thereunder or pursuant thereto, or to make any payment or to
         make any inquiry as to the nature or the sufficiency of any payment
         received by it or the sufficiency of any performance by any party under
         any such contract, agreement, interest and/or obligation, or to present
         or file any claim, or to take any action to collect or enforce any
         performance or the payment of any amounts which may have been assigned
         to it or in which Collateral Agent, on behalf of the Secured Parties,
         may have been granted a security interest to which it may be entitled
         at any time or times. Further, Debtor hereby indemnifies, and holds
         harmless Collateral Agent and the Secured Parties, against and from any
         and all liability, loss and damage which Collateral Agent or Secured
         Parties may incur under or by reason of this Agreement or Collateral
         Agent's enforcing its rights hereunder and all claims and demands
         whatsoever which may be asserted against it by reason of any alleged
         obligations or undertakings on its part to perform or discharge any of
         the terms, covenants or agreements contained under any such contract,
         agreement, interest and/or obligations. If Collateral Agent and/or
         Secured Parties should incur any such liability, loss or damage and/or
         if Collateral Agent and/or the Secured Parties should incur any
         liabilities, costs or expenses in the defense of any such claims or
         demands, the amount thereof, including cost, expenses and reasonable
         attorneys' fees, shall be part of the Obligations, and Debtor shall
         reimburse Collateral Agent and/or the Secured Parties therefor
         immediately upon demand, and Debtor's failure to do so shall constitute
         an Event of Default hereunder.

SECURITY AGREEMENT - PAGE 4

<PAGE>

         5. No Other Encumbrances. Except as otherwise agreed by Collateral
Agent, Debtor shall maintain the Collateral free from any security interest,
Lien, charge, encumbrance or other charge adverse to Collateral Agent, which is
superior to or pari passu with Collateral Agent's Security Interest, on behalf
of the Secured Parties, in the Collateral, and shall defend the Collateral
against all claims and demands of all persons at any time claiming any interest
therein adverse to Collateral Agent and/or the Secured Parties.

         6. Power Of Attorney. Debtor hereby appoints Collateral Agent, and any
officer or agent thereof, as Debtor's agent and attorney-in-fact with full power
in Debtor's name and behalf to do each and every act and thing which Debtor may
or is required to do under this Agreement; however, Collateral Agent shall in no
event be required to take any action whatsoever hereunder, except with respect
to Collateral Agent's obligation to, upon disposition of the Collateral, use its
best efforts to maximize the proceeds of such disposition and to consult and
cooperate with Debtor in connection therewith, as provided in Section 8 hereof.
Without limiting the generality of the foregoing, Collateral Agent may execute,
sign, endorse, transfer or deliver in the name of Debtor or otherwise notes,
checks, drafts and/or other instruments for the payment of money and receipts,
certificates of origin, applications for certificates of title or any other
documents appropriate to evidence, perfect or realize upon the Security Interest
and obligations created by this Agreement.

         7. Collateral Account; Distributions.

                  (a) The Collateral Account. After the occurrence of an Event
         of Default, all moneys which are required by this Agreement to be
         delivered to Collateral Agent or which are received by Collateral Agent
         or any agent or nominee of Collateral Agent or any Secured Party in
         respect of the Collateral as a result of any foreclosure or otherwise
         shall be deposited in an account established at an office of Collateral
         Agent or its affiliates (the "Collateral Account") and held by
         Collateral Agent, for the benefit of the Secured Parties, and applied
         in accordance with the terms of this Agreement.

                  (b) Control of Collateral Account. Subject to the terms of
         this Agreement, all right, title and interest in and to the Collateral
         Account shall vest in Collateral Agent and the Collateral Account shall
         be subject to the exclusive dominion and control of Collateral Agent

         8. Remedies upon Event of Default. Upon the occurrence and during the
continuance of an Event of Default, Collateral Agent may (or at the request of
the Majority Investors, shall) exercise and enforce any or all rights and
remedies available upon default to a Secured Party under this Agreement or the
UCC, provided, however, that with respect to any disposition of any Collateral
by Collateral Agent, for the benefit of the Secured Parties, Collateral Agent
shall use its best efforts to maximize the proceeds of such disposition and
shall consult and cooperate with Debtor in connection therewith. In accordance
with, and subject to, Section 6, so long as an Event of Default exists and so
long as Collateral Agent is so entitled under any Loan Document, Collateral
Agent may take any and all appropriate action and execute any and all documents
and instruments which may be necessary or desirable to carry out the terms of
this Agreement and accomplish the purposes hereof.

SECURITY AGREEMENT - PAGE 5

<PAGE>

         9. Collateral Agent.

                  (a) Appointment. Each Secured Party irrevocably designates and
         appoints 1900 Cedar Springs as Collateral Agent of such Secured Party
         under this Agreement and the applicable Loan Documents, and each
         Secured Party irrevocably authorizes 1900 Cedar Springs as Collateral
         Agent for such Secured Party to take such action on such Secured
         Party's behalf under the provisions of this Agreement and any Security
         Document and to exercise such powers and perform such duties as are
         expressly delegated to Collateral Agent by the terms hereof and
         thereof, together with such other powers as are reasonably incidental
         thereto. Notwithstanding any provision to the contrary in this
         Agreement and the Security Documents, Collateral Agent shall not have
         any duties or responsibilities, except those expressly set forth in
         this Agreement and the Security Documents, nor any fiduciary or trustee
         relationship with any Secured Party, and no implied covenants,
         functions, responsibilities, duties, obligations or liabilities shall
         be read into this Agreement and the Loan Documents or otherwise exist
         against Collateral Agent.

                  (b) Exculpatory Provisions.

                           (i) Collateral Agent shall not be responsible in any
                  manner whatsoever for the correctness of any recitals,
                  statements, representations or warranties herein, all of which
                  are made solely by Debtor. Collateral Agent makes no
                  representations as to the value or condition of the Collateral
                  or any part thereof, or as to the title of Debtor thereto or
                  as to the security afforded by this Agreement or any Security
                  Document, or as to the validity, execution, enforceability,
                  legality or sufficiency of the Loan Documents or the
                  Obligations, and Collateral Agent shall incur no liability or
                  responsibility in respect of any such matters. Collateral
                  Agent shall not be responsible for insuring the Collateral or
                  for the payment of taxes, charges or assessments or
                  discharging of Liens upon the Collateral or otherwise as to
                  the maintenance of the Collateral.

                           (ii) Collateral Agent shall not be required to
                  ascertain or inquire as to the performance by Debtor of any of
                  the covenants or agreements contained in the Security
                  Documents. Whenever it is necessary, or in the opinion of
                  Collateral Agent advisable, for Collateral Agent to ascertain
                  the amount of the Obligations, then held by the respective
                  Secured Parties, Collateral Agent may rely on a certificate of
                  the Secured Parties.

                           (iii) Collateral Agent shall be under no obligation
                  or duty to take any action under this Agreement or any
                  Security Document if taking such action (1) would subject
                  Collateral Agent to a tax in any jurisdiction where it is not
                  then subject to a tax or (2) would require Collateral Agent to
                  qualify to do business in any jurisdiction where it is not
                  then so qualified, unless Collateral Agent receives security
                  or indemnity satisfactory to it against such tax (or
                  equivalent liability), or any liability resulting from such
                  qualification, in each case as results from the taking of such
                  action under this Agreement or any Security Document.

                           (iv) Notwithstanding any other provision of this
                  Agreement, Collateral Agent shall not be liable for any action
                  taken or omitted to be taken by it in

SECURITY AGREEMENT - PAGE 6

<PAGE>

                  accordance with this Agreement or any Security Document,
                  except to the extent that taking such action or omitting to
                  take such action constitutes gross negligence or willful
                  misconduct by Collateral Agent.

                           (v) Collateral Agent shall have the same rights with
                  respect to any obligation held by it as any other Secured
                  Party and may exercise such rights as though it were not
                  Collateral Agent hereunder, and may accept deposits from, lend
                  money to, and generally engage in any kind of business with
                  Debtor as if it were not Collateral Agent.

                  (c) Delegation of Duties. Collateral Agent may execute any of
         the powers hereof and perform any duty hereunder either directly or by
         or through agents or attorneys-in-fact. Collateral Agent shall be
         entitled to advice of counsel concerning all matters pertaining to such
         powers and duties. Collateral Agent shall not be responsible for the
         negligence or misconduct of any agents or attorneys-in-fact selected by
         it in good faith.

                  (d) Reliance by Collateral Agent.

                           (i) Collateral Agent may conclusively rely, and shall
                  be fully protected in acting, upon any resolution, statement,
                  certificate, instrument, opinion, report, notice, request,
                  consent, order, bond or other paper or document believed by it
                  to be genuine and to have been signed or presented by the
                  proper party or parties or, in the case of cables, telecopies
                  and telexes, to have been sent by the proper party or parties,
                  except to the extent that such reliance or action constitutes
                  gross negligence or willful misconduct of Collateral Agent.
                  Collateral Agent may conclusively rely, as to the truth of the
                  statements and the correctness of the opinions expressed
                  therein, upon any certificates or opinions furnished to
                  Collateral Agent and conforming to the requirements of this
                  Agreement, except to the extent that such reliance constitutes
                  gross negligence or willful misconduct of Collateral Agent.

                           (ii) Notwithstanding anything to the contrary
                  contained herein, Collateral Agent shall not be under any
                  obligation to exercise any of the rights or powers vested in
                  Collateral Agent by this Agreement and the Security Documents,
                  at the request or direction of any Secured Party pursuant to
                  this Agreement, or otherwise, unless Collateral Agent shall
                  have been provided security to its reasonable satisfaction
                  against the fees, costs, expenses and liabilities which may be
                  incurred by it, including such reasonable advances as may be
                  requested by Collateral Agent.

                  (e) Limitations on Duties of Collateral Agent.

                           (i) Collateral Agent shall be obligated to perform
                  such duties and only such duties as are specifically set forth
                  in this Agreement and the Security Documents, and no implied
                  covenants or obligations shall be read into this Agreement or
                  any Security Document against Collateral Agent.

SECURITY AGREEMENT - PAGE 7

<PAGE>

                           (ii) Collateral Agent shall not be under any
                  obligation to take any action which is discretionary with
                  Collateral Agent under the provisions hereof or any Security
                  Document, except upon the written request of the Majority
                  Investors, and upon such written request of the Majority
                  Investors, Collateral Agent shall take such action (subject to
                  the terms and provisions hereof).

                  (f) Resignation or Removal of Collateral Agent.

                           (i) Should Collateral Agent ever resign as Collateral
                  Agent, then a new Collateral Agent appointed by the Majority
                  Investors shall forthwith become Collateral Agent, and Debtor
                  and Secured Parties shall execute such documents as Majority
                  Investors may reasonably request to reflect such change. Any
                  resignation of Collateral Agent shall become effective upon
                  the appointment by Majority Investors of a successor
                  Collateral Agent; provided, however, that if Majority
                  Investors fail for any reason to appoint a successor within
                  sixty (60) days after such removal or resignation, Collateral
                  Agent shall thereafter have no obligation to act as Collateral
                  Agent hereunder.

                           (ii) If Collateral Agent shall fail or refuse to
                  perform or commence performing any act set forth in written
                  instructions delivered pursuant to, and in accordance with the
                  terms and conditions of, this Agreement (other than where such
                  nonperformance is beyond the control of Collateral Agent or
                  where such performance would entail a violation of applicable
                  Law or conflict with the provisions of any Security Document
                  or other agreement where performance is not required by this
                  Agreement, including without limitation as provided in
                  Subsections 9(b)(iii) and 9(d)(ii), and such failure continues
                  for a period of fifteen (15) days from the date of receipt of
                  said written instructions, Collateral Agent may be removed by
                  Majority Investors. Majority Investors shall also have the
                  right to appoint a successor Collateral Agent.

                           (iii) Upon the acceptance of any appointment as
                  Collateral Agent hereunder by a successor Collateral Agent,
                  such Collateral Agent shall thereupon succeed to and become
                  vested with all the rights, powers, privileges and duties of
                  the retiring Collateral Agent, and the retiring Collateral
                  Agent shall be discharged from its duties and obligations
                  hereunder. After any retiring Collateral Agent's resignation
                  or removal hereunder as Collateral Agent, (1) the provisions
                  of Subsection 9(j) shall continue in effect for its benefit in
                  respect of any actions taken or omitted to be taken by it
                  while it was acting as Collateral Agent, (2) any Collateral
                  held in possession of the retiring Collateral Agent shall be
                  delivered to the successor Collateral Agent, and (3) the
                  retiring Collateral Agent shall assign all of its rights with
                  respect to all of the Collateral to the successor Collateral
                  Agent, for the pro rata benefit of the Secured Parties.

                  (g) Merger of Collateral Agent. Any corporation into which
         Collateral Agent may be merged, or with which it may be consolidated,
         or any corporation resulting from any merger or consolidation to which
         Collateral Agent shall be a party, or any corporation which is
         otherwise a successor of Collateral Agent, shall be Collateral Agent
         under this Agreement and the Security Documents without the execution
         or filing of any

SECURITY AGREEMENT - PAGE 8

<PAGE>

         paper or any further act on the part of the parties hereto except as
         required by applicable Law.

                  (h) Treatment of Payee or Endorsee by Collateral Agent,
         Representatives of Secured Parties. Collateral Agent may treat the
         registered Investor or, if none, the payee or endorsee of an interest
         in such Note evidencing Obligations attributable to such Investor,
         payee or endorsee as the absolute owner of such interest in such Note
         for all purposes and shall not be affected by any notice to the
         contrary, whether such interest in such Note shall be past due or not.

                  (i) Non-Reliance on Collateral Agent. Each Secured Party
         expressly acknowledges that neither Collateral Agent nor any of its
         officers, directors, employees, agents, attorneys-in-fact or affiliates
         has made any representations or warranties to them. Except for notices,
         reports and other documents expressly required to be furnished to
         Secured Parties by Collateral Agent hereunder, Collateral Agent shall
         not have any duty or responsibility to provide any Secured Party with
         any credit or other information concerning the business, operations,
         property, financial and other condition or creditworthiness of Debtor
         which may come into its possession or the possession of any of its
         officers, directors, employees, agents, attorneys-in-fact or
         affiliates. Collateral Agent and its affiliates may exercise all
         contractual and legal rights and remedies which may exist from time to
         time with respect to other existing and future relationships with
         Debtor without any duty to account therefor to any Secured Party.

                  (j) INDEMNIFICATION. THE SECURED PARTIES AGREE TO INDEMNIFY
         COLLATERAL AGENT (IN ITS CAPACITY AS SUCH), WITHOUT LIMITING THE
         OBLIGATION OF DEBTOR TO DO SO, RATABLY ACCORDING TO THE SHARING
         PERCENTAGES OF THE SECURED PARTIES DETERMINED AT THE DATE OF ANY CLAIM
         BY COLLATERAL AGENT FOR INDEMNITY UNDER THIS SUBSECTION 9(j), FROM AND
         AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES,
         PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES (INCLUDING,
         WITHOUT LIMITATION, THE REASONABLE FEES AND EXPENSES OF COUNSEL) OR
         DISBURSEMENTS OF ANY KIND WHATSOEVER WHICH MAY AT ANY TIME BE IMPOSED
         ON, INCURRED BY OR ASSERTED AGAINST COLLATERAL AGENT IN ANY WAY
         RELATING TO OR ARISING OUT OF THE SECURITY DOCUMENTS OR ANY DOCUMENTS
         CONTEMPLATED HEREBY OR THEREBY OR REFERRED TO HEREIN OR THEREIN OR THE
         TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR ANY ACTION TAKEN OR
         OMITTED BY COLLATERAL AGENT HEREUNDER OR THEREUNDER OR IN CONNECTION
         THEREWITH, INCLUDING THE MERE NEGLIGENCE OF COLLATERAL AGENT, TO THE
         EXTENT THAT COLLATERAL AGENT HAS NOT BEEN INDEMNIFIED BY DEBTOR BUT
         EXCEPT TO THE EXTENT THAT SUCH CLAIM OR LIABILITY AROSE AS A RESULT OF
         THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF COLLATERAL AGENT. SECURED
         PARTIES AGREE TO REIMBURSE COLLATERAL AGENT (TO THE EXTENT NOT
         REIMBURSED BY DEBTOR), RATABLY ACCORDING TO THE SHARING PERCENTAGES OF
         THE SECURED PARTIES, PROMPTLY UPON DEMAND FOR ANY OUT-OF-POCKET
         EXPENSES (INCLUDING REASONABLE ATTORNEYS' FEES) INCURRED BY

SECURITY AGREEMENT - PAGE 9

<PAGE>

         COLLATERAL AGENT IN CONNECTION WITH THE PREPARATION, EXECUTION,
         DELIVERY, ADMINISTRATION, MODIFICATION, AMENDMENT, OR ENFORCEMENT
         (WHETHER THROUGH LEGAL PROCEEDINGS OR OTHERWISE) OF, OR LEGAL ADVICE IN
         RESPECT OF RIGHTS OR RESPONSIBILITIES UNDER, THE SECURITY DOCUMENTS OR
         ANY OTHER DOCUMENTS CONTEMPLATED HEREBY OR THEREBY. THE AGREEMENTS IN
         THIS SUBSECTION 9(j) SHALL SURVIVE THE PAYMENT OF THE OBLIGATIONS AND
         THE TERMINATION OF THE OTHER PROVISIONS OF THIS AGREEMENT.

         10. Priority Provisions.

                  (a) Agreement Regarding Priorities of Obligations. The Secured
         Parties and Debtor agree that the payment and priority of each Secured
         Party's portion of the Obligations are, and shall be, pari passu with
         the payment and priority of any other Secured Party's and Collateral
         Agent's portion of the Obligations. The Secured Parties and Debtor
         agree that any and all of the rights and remedies of any Secured Party
         with respect to its portion of the Obligations shall remain pari passu
         with the rights and remedies of Collateral Agent and any other Secured
         Party with respect thereto.

                  (b) Agreement Regarding Lien Priority. The Secured Parties and
         Debtor agree that any security interests, pledges of stock, or other
         encumbrances of any Secured Party securing its portion of the
         Obligations, are and shall be pari passu with the security interests,
         pledges of stock or other encumbrances of Collateral Agent or any other
         Secured Party securing payment of the Obligations. The Secured Parties
         and Debtor agree that any and all of the rights and remedies of any
         Secured Party with respect to the Collateral shall remain pari passu
         with the rights and remedies of Collateral Agent and any other Secured
         Party with respect thereto. In the event that any Secured Party at any
         time obtains possession of any of the Collateral, it shall promptly
         deliver such Collateral to Collateral Agent, unless precluded by
         applicable Law.

                  (c) Authority of Collateral Agent. Unless otherwise provided
         in a power of attorney executed by each Secured Party in connection
         with the Loan Documents, each of the Secured Parties hereby irrevocably
         constitutes and appoints Collateral Agent and any officer or agent
         thereof until such time as Debtor repays the Obligations in full, with
         full power of substitution, as its true and lawful attorney-in-fact
         with full power and authority in the name of such Secured Party or in
         Collateral Agent's own name, from time to time in Collateral Agent's
         discretion, to take any and all appropriate action permitted hereunder,
         and to execute any and all documents and instruments which may be
         necessary or desirable to carry out the terms of this Agreement and
         accomplish the purposes hereof and thereof and, without limiting the
         generality of the foregoing, each Secured Party hereby gives Collateral
         Agent the power and rights on behalf of such Secured Party, without
         notice to or further assent by any Secured Party to do the following:

                           (i) to ask for, demand, sue for, collect, receive and
                  give acquittance for any and all moneys due or to become due
                  upon, or in connection with, the Collateral;

SECURITY AGREEMENT - PAGE 10

<PAGE>

                           (ii) to receive, take, endorse, assign and deliver
                  any and all checks, notes, drafts, acceptances, documents and
                  other negotiable and non-negotiable instruments taken or
                  received by Collateral Agent as, or in connection with, the
                  Collateral;

                           (iii) to commence, prosecute, defend, settle,
                  compromise or adjust any claim, suit, action or proceeding
                  with respect to, or in connection with, the Collateral;

                           (iv) to sell, transfer, release, assign or otherwise
                  deal in or with the Collateral or any part thereof as fully
                  and effectively as if Collateral Agent were the absolute owner
                  thereof; and

                           (v) to do, at its option, at any time or from time to
                  time, all acts and things which Collateral Agent deems
                  necessary to protect or preserve the Collateral and to realize
                  upon the Collateral.

Said attorney, Collateral Agent, is hereby granted and given full power and
authority, coupled with an interest, to do and perform every act necessary and
proper to be done in the exercise of any of the foregoing powers. Understanding
that powers of attorney are strictly construed, each Secured Party declares that
it is its expressed intention that this power of attorney shall be liberally
construed to give the fullest effect to the powers granted herein.

         11. Notices. Any notice or other communication required or permitted to
be given hereunder shall be in writing and shall be deemed to have been received
(a) upon hand delivery (receipt acknowledged) or delivery by telex (with correct
answer back received), telecopy or facsimile (with transmission confirmation
report) at the address or number designated below (if delivered on a Business
Day during normal business hours where such notice is to be received), or the
first Business Day following such delivery (if delivered on a Business Day after
normal business hours where such notice is to be received); or (b) on the second
Business Day following the date of mailing by express overnight courier service,
fully prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur. The addresses for such communications
shall be:

                  (a) if to the Debtor, to:

                           MigraTEC, Inc.
                           11494 Luna Road, Suite 100
                           Dallas, Texas  75234-9421
                           Attention:      T. Ulrich Brechbuhl
                                           President and Chief Executive Officer
                           Facsimile:      (972) 969-0300

                           with a copy to:

                           Ted S. Schweinfurth, Esq.
                           Winstead Sechrest & Minick P.C.
                           5400 Renaissance Tower
                           1201 Elm Street
                           Dallas, Texas  75270-2199
                           Facsimile:  (214) 745-5390

SECURITY AGREEMENT - PAGE 11

<PAGE>

                  (b) if to Collateral Agent, to:

                           1900 Cedar Springs, LP
                           1900 Cedar Springs Rd.
                           Dallas, Texas  75201

If to any Secured Party, to the address set forth opposite its name on Schedule
A hereto. Any party may designate by written notice a new address to which any
notice or other communication required or permitted to be given hereunder shall
thereafter be given, served or sent.

         12. Termination. Upon payment in full of the Notes and execution, if
necessary, by Collateral Agent of instruments of release and delivery of all of
its interest in the Collateral to Debtor, this Agreement shall terminate with
respect to Collateral Agent and Secured Parties and all of their obligations
hereunder shall cease; and the security interests of Collateral Agent created
herein and by the Loan Documents shall be released.

         13. Cooperation. Each Secured Party agrees with each of the other
Secured Parties and Collateral Agent that: (a) it will, in the case of any Event
of Default with respect to which it shall have received written notice from, or
provided written notice to, Debtor, promptly give each other Secured Party and
Collateral Agent written notice of such Event of Default (a "Notice of Event of
Default"); and (b) it will give Collateral Agent and each other Secured Party
prompt written notice of any acceleration of the maturity date of any of the
outstanding Obligations pursuant to the Notes.

         14. Waivers of Rights. Except as otherwise expressly set forth herein,
so long as the Obligations remain unpaid, the Secured Parties hereby agree to
refrain from exercising any and all rights each may individually (i.e., other
than through Collateral Agent) now or hereafter have to exercise any right
pursuant to this Agreement or the applicable Loan Documents, the UCC as in
effect in any applicable jurisdiction, or under similar provisions of the Laws
of any jurisdiction or otherwise dispose of or retain any of the Collateral. The
Secured Parties hereby agree not to take any action whatsoever to enforce any
term or provision of this Agreement or the Security Documents or to enforce any
right with respect to the Collateral, in conflict with this Agreement or the
terms and provisions of the Loan Documents.

         15. Permitted Action by the Secured Parties. Any Secured Party may (but
in no event shall be required to), without instruction from Collateral Agent,
take action permitted by applicable Law or in accordance with the terms of this
Agreement and the Security Documents to preserve its rights and liens in any
item of Collateral securing the payment and performance of the Obligations,
including but not limited to curing any default or alleged default under any
contract entered into by Debtor, paying any tax, fee or expense on behalf of
Debtor, exercising any offset or recoupment rights and paying insurance premiums
on behalf of Debtor so long as such action shall not impair the rights of
Collateral Agent or of any other Secured Party.

         16. Right to Instruct Collateral Agent. Upon acceleration of the
maturity date of the Obligations pursuant to the Note, the Majority Lenders may
instruct Collateral Agent to liquidate the Collateral in the manner described in
this Agreement and the Security Documents.

SECURITY AGREEMENT - PAGE 12

<PAGE>

         17. Amendments, Supplements and Waivers. Except as otherwise provided
in Section 21, the provisions of this Agreement and any Security Document may
not be amended, modified or waived except by the written agreement of Debtor,
Collateral Agent and Majority Investors; provided, however, that no such
amendment, modification or waiver shall adversely affect the interests of any
Secured Party or release any Security Interest except as otherwise permitted by
this Agreement or provide that any person other than the Secured Parties and
their respective successors and assigns shall have the benefits of the Security
Interests created by this Agreement or any of the Security Documents. Any such
supplemental agreements shall be binding upon Debtor, Collateral Agent, Secured
Parties and their respective successors and assigns.

         18. Miscellaneous. This Agreement has been duly and validly authorized
by all necessary corporate action. This Agreement does not contemplate a sale of
accounts, or chattel paper. All rights and remedies of Collateral Agent and/or
the Secured Parties shall be cumulative and the exercise or enforcement of any
one such right or remedy shall neither be a condition to nor bar the exercise or
enforcement of any other. This Agreement shall be binding upon and inure to the
benefit of the Debtor, Collateral Agent and each of the Secured Parties and
their respective successors and assigns. A carbon, photographic or other
reproduction of this Agreement or of any financing statement signed by Debtor
shall have the same force and effect as the original for all purposes of a
financing statement. If any provision or application of this Agreement is held
unlawful or unenforceable in any respect, such illegality or unenforceability
shall not affect other provisions or applications which can be given effect and
this Agreement shall be construed as if the unlawful or unenforceable provision
or application had never been contained herein or prescribed hereby. All
representations and warranties contained in this Agreement shall survive the
execution, delivery and performance of this Agreement and the creation and
payment of the Obligations. The parties hereto hereby (i) consent to the
personal jurisdiction of the state and federal courts located in the State of
Texas in connection with any controversy related to this Agreement; (ii) waive
any argument that venue in any such forum is not convenient, (iii) agree that
any litigation initiated by Collateral Agent or the Debtor in connection with
this Agreement or the Note may be venued in either the state or federal courts
located in Dallas County, Texas, and (iv) agree that a final judgment in any
such suit, action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

         19. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND APPLICABLE FEDERAL LAWS,
EXCEPT TO THE EXTENT PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION
OF THE SECURITY INTEREST GRANTED HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL, ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
TEXAS.

         20. Entire Agreement. THIS AGREEMENT, TOGETHER WITH THE LOAN DOCUMENTS,
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES REGARDING THE SUBJECT MATTER
HEREIN AND THEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

SECURITY AGREEMENT - PAGE 13

<PAGE>

         21. Counterparts. This Agreement may be executed in two (2) or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party hereto and delivered to the other party, it being understood that all
parties need not sign the same counterpart. Execution by any Additional Investor
of a counterpart signature page to the Purchase Agreement shall be deemed to
constitute execution by such Additional Investor of this Agreement. The
Collateral Agent and the Secured Parties hereby authorize Debtor to amend
Schedule A hereto for the purposes of adding additional Secured Parties pursuant
to the immediately preceding sentence, which schedule, as amended, shall be
delivered by Debtor to the Collateral Agent or any Secured Party upon request.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

SECURITY AGREEMENT - PAGE 14

<PAGE>

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

                                 DEBTOR:

                                 MigraTEC, Inc.

                                 By: /s/ T. Ulrich Brechbuhl
                                    --------------------------------------------
                                 T. Ulrich Brechbuhl
                                 President and Chief Executive Officer

                                 Address:

                                 11494 Luna Road, Suite 100
                                 Dallas, Texas 75234-9421
                                 Attention:  T. Ulrich Brechbuhl
                                 Employer identification number: 65-0125664
                                 Organizational identification number: 3255908

SECURITY AGREEMENT - PAGE 15

<PAGE>

                                  COLLATERAL AGENT:

                                  1900 CEDAR SPRINGS, LP

                                  By:   3000 W. Commerce GP LLC
                                  Its:  General Partner

                                       By:  /s/ Mike Carter
                                          --------------------------------------
                                           Name:  Mike Carter
                                           Its:  Manager

SECURITY AGREEMENT - PAGE 16

<PAGE>

                                  SECURED PARTIES:

                                  1900 CEDAR SPRINGS, LP

                                  By:   3000 W. Commerce GP LLC
                                  Its:  General Partner

                                       By:  /s/ Mike Carter
                                          --------------------------------------
                                           Name:  Mike Carter
                                           Its:  Manager

                                   /s/ Raymond Nisivoccia
                                  ----------------------------------------------
                                  Raymond Nisivoccia

                                   /s/ Albert Passanante
                                  ----------------------------------------------
                                  Albert Passanante

                                   /s/ Jeff Navin
                                  ----------------------------------------------
                                  Jeff Navin

                                  World-Wide Iron, Inc.

                                  By: /s/ Jeff Navin
                                     -------------------------------------------
                                       Name: Jeff Navin
                                            ------------------------------------
                                       Title: President
                                             -----------------------------------

SECURITY AGREEMENT - PAGE 17

<PAGE>

                                   SCHEDULE A

                                 SECURED PARTIES

<TABLE>
<CAPTION>
NAME                                ADDRESS
----                                -------
<S>                                 <C>
1900 Cedar Springs, LP              1900 Cedar Springs Rd., Dallas, Texas 75201
Raymond Nisivoccia                  41 High Ave., Randolph, NJ 07869
Albert Passanante                   49 Silver Springs Dr., Landing, NJ  07850
Jeff Navin                          16602 S. 32nd Place, Phoenix, AZ  85048
World-Wide Iron, Inc.               2266 South Dobson Rd., Suite 200, Mesa, AZ  85202
</TABLE>

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