Document:

SECURITY
AGREEMENT

     

    THIS SECURITY AGREEMENT dated
as of _______________, 2009 (“Security
Agreement”), is made by and among MERRIMAN CURHAN FORD GROUP,
INC., a Delaware corporation (the “Grantor”),
and the secured parties listed on the signature pages hereto (each, a “Secured
Party” and,
collectively, the “Secured
Parties”).

     

    RECITALS

     

    A.                 Each
Secured Party has agreed to make certain advances of money and to extend certain
financial accommodation to Grantor (collectively, the “Loans”) as
evidenced by those certain Secured Convertible Promissory Notes executed by
Grantor in favor of each Secured Party (each, a “Note” and, collectively, the
“Notes”)
issued under that certain Subscription Agreement, dated as of
____________________, 2009, by and among Grantor and the Secured Parties (the
“Subscription
Agreement”).

    

    B.                 The
Secured Parties are willing to make the Loans to Grantor, but only upon the
condition, among others, that Grantor shall have executed and delivered this
Security Agreement to the Secured Parties.

    

    C.                 The
Grantor’s obligations under the Notes are not guaranteed by the Grantor’s
Subsidiaries and the assets of the Grantor’s Subsidiaries are not subject to
this Security Agreement.

    AGREEMENT

     

    NOW, THEREFORE, in order to
induce the Secured Parties to make the Loans and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and
intending to be legally bound, the Grantor hereby represents, warrants,
covenants and agrees as follows:

     

    1.                 DEFINED TERMS. When used in
this Security Agreement the following terms shall have the following meanings
(such meanings being equally applicable to both the singular and plural forms of
the terms defined):

    “Bankruptcy
Code” means
Title XI of the United States Code.

     

    “Collateral” shall
have the meaning assigned to such term in Section 2 of this Security
Agreement.

     

    “Contracts” means
all contracts (including any customer, vendor, supplier, service or maintenance
contract), leases, licenses, undertakings, purchase orders, permits, franchise
agreements or other agreements (other than any right evidenced by Chattel Paper,
Documents or Instruments), whether in written or electronic form, in or under
which a Grantor now holds or hereafter acquires any right, title or interest,
including, without limitation, with respect to an Account, any agreement
relating to the terms of payment or the terms of performance
thereof.

     

    
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    “Copyright
License” means any agreement,
whether in written or electronic form, in which a Grantor now holds or hereafter
acquires any interest, granting any right in or to any Copyright or Copyright
registration (whether a Grantor is the licensee or the licensor thereunder)
including, without limitation, licenses pursuant to which a Grantor has obtained
the exclusive right to use a copyright owned by a third party.

     

    “Copyrights” means all of the
following now owned or hereafter acquired or created (as a work for hire for the
benefit of a Grantor) by a Grantor or in which a Grantor now holds or hereafter
acquires or receives any right or interest, in whole or in part: (a) all
copyrights, whether registered or unregistered, held pursuant to the laws of the
United States, any State thereof or any other country; (b) registrations,
applications, recordings and proceedings in the United States Copyright Office
or in any similar office or agency of the United States, any State thereof or
any other country; (c) any continuations, renewals or extensions thereof; (d)
any registrations to be issued in any pending applications, and shall include
any right or interest in and to work protectable by any of the foregoing which
are presently or in the future owned, created or authorized (as a work for hire
for the benefit of a Grantor) or acquired by a Grantor, in whole or in part; (e)
prior versions of works covered by copyright and all works based upon, derived
from or incorporating such works; (f) income, royalties, damages, claims and
payments now and hereafter due and/or payable with respect to copyrights,
including, without limitation, damages, claims and recoveries for past, present
or future infringement; (g) rights to sue for past, present and future
infringements of any copyright; and (h) any other rights corresponding to any of
the foregoing rights throughout the world.

     

    “Event of
Default” means any “Event of
Default” as defined in the Notes.

     

    “Intellectual
Property” means any intellectual
property, in any medium, of any kind or nature whatsoever, now or hereafter
owned or acquired or received by a Grantor or in which a Grantor now holds or
hereafter acquires or receives any right or interest, and shall include, in any
event, any Copyright, Trademark, Patent, trade secret, customer list, internet
domain name (including any right related to the registration thereof),
proprietary or confidential information, mask work, source, object or other
programming code, invention (whether or not patented or patentable), technical
information, procedure, design, knowledge, know-how, software, data base, data,
skill, expertise, recipe, experience, process, model, drawing, material or
record.

     

    “License” means any Copyright
License, Patent License, Trademark License or other license of rights or
interests, whether in-bound or out-bound, whether in written or electronic form,
now or hereafter owned or acquired or received by a Grantor or in which a
Grantor now holds or hereafter acquires or receives any right or interest, and
shall include any renewals or extensions of any of the foregoing
thereof.

     

    “Lien” means any mortgage,
lien, deed of trust, charge, pledge, security interest or other
encumbrance.

     

    “Majority
Lenders” means any Secured Party
or group of Secured Parties holding greater than sixty percent (60%) of the
outstanding and unpaid principal under all Loans of all Secured
Parties.

     

    “Patent
License” means any agreement,
whether in written or electronic form, in which a Grantor now holds or hereafter
acquires any interest, granting any right with respect to any invention on which
a Patent is in existence (whether a Grantor is the licensee or the licensor
thereunder).

     

    
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    “Patents” means all of the
following in which a Grantor now holds or hereafter acquires any interest: (a)
all letters patent of the United States or any other country, all registrations
and recordings thereof and all applications for letters patent of the United
States or any other country, including, without limitation, registrations,
recordings and applications in the United States Patent and Trademark Office or
in any similar office or agency of the United States, any state thereof or any
other country; (b) all reissues, divisions, continuations, renewals,
continuations-in-part or extensions thereof; (c) all petty patents, divisionals
and patents of addition; (d) all patents to issue in any such applications; (e)
income, royalties, damages, claims and payments now and hereafter due and/or
payable with respect to patents, including, without limitation, damages, claims
and recoveries for past, present or future infringement; and (f) rights to sue
for past, present and future infringements of any patent.

     

     “Permitted
Lien” means: (a) any Liens
granted in settlement of litigation to litigants, former litigants or potential
litigants, to (i) proceeds of insurance litigation and the Fidelity insurance
policy; and (ii) any and all commercial tort claims held by Grantor, including,
but not limited to, insurance litigation and the Fidelity insurance policy; (b)
Liens for taxes, fees, assessments or other governmental charges or levies,
either not delinquent or being contested in good faith by appropriate
proceedings, provided the same have no priority over any of Secured Parties’
security interests; (c) Liens (i) upon or in any Equipment acquired or held by a
Grantor to secure the purchase price of such Equipment or indebtedness incurred
solely for the purpose of financing the acquisition of such Equipment or (ii)
existing on such Equipment at the time of its acquisition, provided that the
Lien is confined solely to the Equipment so acquired, improvements thereon and
the Proceeds of such Equipment; (d) leases or subleases and licenses or
sublicenses granted to others in the ordinary course of a Grantor’s business if
such are otherwise permitted under this Security Agreement and do not interfere
in any material respect with the business of such Grantor; (e) any right, title
or interest of a licensor under a license provided that such license or
sublicense does not prohibit the grant of the security interest granted
hereunder; (f) Liens arising from judgments, decrees or attachments; (g)
easements, reservations, rights-of-way, restrictions, minor defects or
irregularities in title and other similar Liens affecting real property not
interfering in any material respect with the ordinary conduct of the business of
a Grantor; (h) Liens in favor of customs and revenue authorities arising as a
matter of law to secure payment of customs duties in connection with the
importation of goods; (i) Liens arising solely by virtue of any statutory or
common law provision relating to banker’s liens, rights of setoff or similar
rights and remedies as to deposit accounts or other funds maintained with a
creditor depository institution; (j) Liens on equipment leased by a Grantor
pursuant to an operating lease in the ordinary course of such Grantor’s business
(including proceeds thereof and accessions thereto), all incurred solely for the
purpose of financing the lease of such equipment (including Liens arising from
UCC financing statements regarding such leases); and (k) any Lien approved in
advance in writing by the Majority Lenders.

     

    
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    “Pro
Rata” means, as to any
Secured Party at any time, the percentage equivalent at such time of such
Secured Party’s aggregate unpaid principal amount of Loans, divided by the
combined aggregate unpaid principal amount of all Loans of all Secured
Parties.

     

    “Secured
Obligations” means (a) the
obligation of a Grantor to repay each Secured Party all of the unpaid principal
amount of, and accrued interest on (including any interest that accrues after
the commencement of bankruptcy), such Secured Party’s Loans; (b) the obligation
of a Grantor to pay any fees, costs or expenses of the Secured Parties under the
Notes, the Subscription Agreement or this Security Agreement; and (c) all other
indebtedness, liabilities and obligations of a Grantor to each Secured Party,
whether now existing or hereafter incurred, and whether created under, arising
out of or in connection with any written agreement or otherwise.

     

    “Security
Agreement” means this Security
Agreement and all Schedules hereto, as the same may from time to time be
amended, modified, supplemented or restated.

     

    “Trademark
License” means any agreement,
whether in written or electronic form, in which a Grantor now holds or hereafter
acquires any interest, granting any right in and to any Trademark or Trademark
registration (whether a Grantor is the licensee or the licensor
thereunder).

     

    “Trademarks” means any of the
following in which a Grantor now holds or hereafter acquires any interest: (a)
any trademarks, tradenames, corporate names, company names, business names,
trade styles, service marks, logos, other source or business identifiers, prints
and labels on which any of the foregoing have appeared or appear, designs and
general intangibles of like nature, now existing or hereafter adopted or
acquired, all registrations and recordings thereof and any applications in
connection therewith, including, without limitation, registrations, recordings
and applications in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country (collectively, the “Marks”);
(b) any reissues, extensions or renewals thereof; (c) the goodwill of the
business symbolized by or associated with the Marks; (d) income, royalties,
damages, claims and payments now and hereafter due and/or payable with respect
to the Marks, including, without limitation, damages, claims and recoveries for
past, present or future infringement; and (e) rights to sue for past, present
and future infringements of the Marks.

     

    “UCC” means the Uniform
Commercial Code as the same may from time to time be in effect in the State of
Delaware (and each reference in this Security Agreement to an Article thereof
(denoted as a Division of the UCC as adopted and in effect in the State of
Delaware) shall refer to that Article (or Division, as applicable) as from time
to time in effect; provided, however, in the event that,
by reason of mandatory provisions of law, any or all of the attachment,
perfection or priority of the Secured Parties’ security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of Delaware, the term “UCC” shall mean the Uniform
Commercial Code (including the Articles thereof) as in effect at such time in
such other jurisdiction for purposes of the provisions hereof relating to such
attachment, perfection or priority and for purposes of definitions related to
such provisions.

     

    
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    In
addition, the following terms shall be defined terms having the meaning set
forth for such terms in the UCC: “Account” (including health-care-insurance
receivables), “Account Debtor”, “Chattel Paper” (including tangible and
electronic chattel paper), “Commercial Tort Claims”, “Commodity Account”,
“Deposit Account”, “Documents”, “Equipment” (including all accessions and
additions thereto), “Fixtures”, “General Intangible” (including payment
intangibles and software), “Instrument”, “Inventory” (including all goods held
for sale or lease or to be furnished under a contract of service, and including
returns and repossessions), “Investment Property” (including securities and
securities entitlements), “Letter-of-Credit Right” (whether or not the letter of
credit is evidenced by a writing), “Payment Intangibles”, “Proceeds”,
“Promissory Notes”, “Securities Account”, and “Supporting Obligations”. Each of
the foregoing defined terms shall include all of such items now owned, or
hereafter acquired, by a Grantor.

     

    2.                 GRANT OF SECURITY INTEREST. As
collateral security for the full, prompt, complete and final payment and
performance when due (whether at stated maturity, by acceleration or otherwise)
of all the Secured Obligations and in order to induce the Secured Parties to
cause the Loans to be made, the Grantor hereby assigns, conveys, mortgages,
pledges, hypothecates and transfers to the Secured Parties, and hereby grants to
the Secured Parties, a security interest in all of such Grantor’s right, title
and interest in, to and under the following, whether now owned or hereafter
acquired, (all of which being collectively referred to herein as the “Collateral”):

     

    (a)    All
Accounts of Grantor;

     

    (b)    All
Chattel Paper of Grantor;

    

    (c)    All
Contracts of Grantor;

    

    (d)    All
Deposit Accounts of Grantor;

    

    (e)    All
Documents of Grantor;

    

    (f)     All
Equipment of Grantor;

    

    (g)    All
Fixtures of Grantor;

    

    (h)    All
General Intangibles of Grantor, including, without limitation, Payment
Intangibles, all Copyrights, Patents, Trademarks, Licenses, designs, drawings,
technical information, marketing plans, customer lists, trade secrets,
proprietary or confidential information, inventions (whether or not patentable),
procedures, know-how, models and data;

    (i)     All
Instruments of Grantor, including, without limitation, Promissory
Notes;

    (j)     All
Investment Property of Grantor;

    

    (k)   All
Letter-of Credit Rights of Grantor;

     

    
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    (l)     All
Supporting Obligations of Grantor;

    

    (m)   All
property of Grantor held by any Secured Party, or any other party for whom any
Secured Party is acting as agent hereunder, including, without limitation, all
property of every description now or hereafter in the possession or custody of
or in transit to any Secured Party or such other party for any purpose,
including, without limitation, safekeeping, collection or pledge, for the
account of Grantor, or as to which Grantor may have any right or
power;

    

    (n)    All
other goods and personal property of Grantor, wherever located, whether tangible
or intangible, and whether now owned or hereafter acquired, existing, leased or
consigned by or to Grantor; and

    

    (o)    To
the extent not otherwise included, all Proceeds of each of the foregoing and all
accessions to, substitutions and replacements for and rents, profits and
products of each of the foregoing.

    

    Notwithstanding
the foregoing provisions of this Section 2, the grant,
assignment and transfer of a security interest as provided herein shall not
extend to, and the term “Collateral” shall not include: (a)
any and all proceeds of insurance litigation and the Fidelity insurance policy;
(b) any and all commercial tort claims held by Issuer, including, but not
limited to, the insurance litigation and the Fidelity insurance policy, (c) “intent-to-use”
trademarks at all times prior to the first use thereof, whether by the actual
use thereof in commerce, the recording of a statement of use with the United
States Patent and Trademark Office or otherwise; (d) any Contract, Instrument or
Chattel Paper in which a Grantor has any right, title or interest if and to the
extent such Contract, Instrument or Chattel Paper includes a provision
containing a restriction on assignment such that the creation of a security
interest in the right, title or interest of such Grantor therein would be
prohibited and would, in and of itself, cause or result in a default thereunder
enabling another person party to such Contract, Instrument or Chattel Paper to
enforce any remedy with respect thereto; provided that the foregoing
exclusion shall not apply if (i) such prohibition has been waived or such other
person has otherwise consented to the creation hereunder of a security interest
in such Contract, Instrument or Chattel Paper or (ii) such prohibition would be
rendered ineffective pursuant to Sections 9-407(a) or 9-408(a) of the UCC, as
applicable and as then in effect in any relevant jurisdiction, or any other
applicable law (including the Bankruptcy Code) or principles of equity); provided further that
immediately upon the ineffectiveness, lapse or termination of any such
provision, the Collateral shall include, and the Grantor shall be deemed to have
granted a security interest in, all its rights, title and interests in and to
such Contract, Instrument or Chattel Paper as if such provision had never been
in effect; and provided
further that the foregoing exclusion
shall in no way be construed so as to limit, impair or otherwise affect any
Secured Party’s unconditional continuing security interest in and to all rights,
title and interests of the Grantor in or to any payment obligations or other
rights to receive monies due or to become due under any such Contract,
Instrument or Chattel Paper and in any such monies and other proceeds of such
Contract, Instrument or Chattel Paper; or (e) any Equipment subject to Permitted
Liens in cases where the secured party has prohibited additional
Liens.

     

    
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    3.                
RIGHTS OF SECURED PARTIES; COLLECTION OF ACCOUNTS.

    

    (a)    Notwithstanding
anything contained in this Security Agreement to the contrary, the Grantor
expressly agrees that it shall remain liable under each of its Contracts and
each of its Licenses to observe and perform all the conditions and obligations
to be observed and performed by it thereunder and that it shall perform all of
its duties and obligations thereunder, all in accordance with and pursuant to
the terms and provisions of each such Contract or License. No Secured Party
shall have any obligation or liability under any Contract or License by reason
of or arising out of this Security Agreement or the granting to the Secured
Parties of a lien therein or the receipt by any Secured Party of any payment
relating to any Contract or License pursuant hereto, nor shall any Secured Party
be required or obligated in any manner to perform or fulfill any of the
obligations of any Grantor under or pursuant to any Contract or License, 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 Contract or License, 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 to which it may be entitled at any
time.

     

    (b)    Each
Secured Party authorizes the Grantor to collect its Accounts, provided that such
collection is performed in a prudent and businesslike manner, and the Secured
Parties may, upon the occurrence and during the continuation of any Event of
Default, limit or terminate said authority at any time. Upon the occurrence and
during the continuance of any Event of Default, at the request of the Majority
Lenders, Grantor shall deliver all original and other documents evidencing and
relating to the performance of labor or service which created such Accounts,
including, without limitation, all original orders, invoices and shipping
receipts.

    

    (c)    Any
Secured Party may at any time, upon the occurrence and during the continuance of
any Event of Default and the written consent of the Majority Lenders, without
notifying Grantor of its intention to do so, notify Account Debtors of Grantor,
parties to the Contracts of Grantor, obligors in respect of Instruments of
Grantor and obligors in respect of Chattel Paper of Grantor that the Accounts
and the right, title and interest of Grantor in and under such Contracts,
Instruments and Chattel Paper have been assigned to the Secured Parties and that
payments shall be made directly to the Secured Parties. Upon the request of the
Majority Lenders, the Grantor shall so notify such Account Debtors, parties to
such Contracts, obligors in respect of such Instruments and obligors in respect
of such Chattel Paper. Upon the occurrence and during the continuance of any
Event of Default, any Secured Party may, in its name or in the name of other
Secured Parties, communicate with such Account Debtors, parties to such
Contracts, obligors in respect of such Instruments and obligors in respect of
such Chattel Paper to verify with such parties, to such Secured Party’s
satisfaction, the existence, amount and terms of any such Accounts, Contracts,
Instruments or Chattel Paper.

     

    
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    4.                 REPRESENTATIONS AND
WARRANTIES. Grantor hereby represents and warrants to the Secured Parties
that:

    

    (a)    Except
for the security interest granted to the Secured Parties under this Security
Agreement and Permitted Liens, Grantor is the sole legal and equitable owner of
each item of the Collateral in which it purports to grant a security interest
hereunder, having good and marketable title thereto, free and clear of any and
all Liens.

    

    (b)    No
effective security agreement, financing statement, equivalent security or lien
instrument or continuation statement covering all or any part of the Collateral
exists, except for Permitted Liens.

    

    (c)    This
Security Agreement creates a legal and valid security interest on and in all of
the Collateral in which Grantor now has rights and will create a legal and valid
security interest in the Collateral in which Grantor later acquires
rights.

    

    (d)    Grantor’s
taxpayer identification number is, and chief executive office, principal place
of business, and the place where Grantor maintains its records concerning the
Collateral are presently located at the address set forth on the signature page
hereof. If Grantor is a corporation, limited liability company, limited
partnership, corporate trust or other registered organization, the State (or if
not a state, the other jurisdiction) under whose law such registered
organization was organized is set forth on the signature page hereof. The
Collateral, other than Deposit Accounts, Securities Accounts, Commodity Accounts
and motor vehicles and other mobile goods of the type contemplated in Section
9103(3)(a) of the UCC, is presently located at such address and at such
additional addresses set forth on Schedule A attached
hereto.

    

    (e)    The
name and address of each depository institution at which Grantor maintains any
Deposit Account and the account number and account name of each such Deposit
Account is listed on Schedule B
attached hereto. The name and address of each securities intermediary or
commodity intermediary at which Grantor maintains any Securities Account or
Commodity Account and the account number and account name is listed on Schedule B attached hereto.
Grantor agrees to notify the Secured Parties from time to time within five (5)
business days after opening any additional Deposit Account, Securities Account
or Commodity Account, or closing or changing the account name or number on any
existing Deposit Account, Securities Account, or Commodity Account.

    

    (f)     None
of the Investment Property of Grantor has been transferred in violation of the
securities registration, securities disclosure or similar laws of any
jurisdiction to which such transfer may be subject.

     

    
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    (g)    All
Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and
Trademark Licenses now owned, held or in which Grantor otherwise has any
interest are listed on Schedule
C attached hereto. Grantor shall amend Schedule C from time to time
within twenty (20) business days after the filing of any application for a
Patent, Trademark or Copyright or the issuance of any Patent or registration of
any Trademark or Copyright to reflect any additions to or deletions from this
list. Except as set forth on Schedule C, none of the
Patents, Trademarks or Copyrights has been licensed to any third
party.

    

    5.                 COVENANTS. The Grantor
covenants and agrees with the Secured Parties that from and after the date of
this Security Agreement and until the Secured Obligations have been performed
and paid in full:

    

    5.1.  Disposition of Collateral.
Subject to the next sentence of this Section 5.1, Grantor shall not
sell, lease, transfer or otherwise dispose of any of the Collateral, or attempt
or contract to do so, other than (a) the sale of Inventory; (b) the granting of
non-exclusive Licenses or exclusive Licenses if the grant of an exclusive
License is approved by the Board of the Directors of the Grantor; and (c) the
disposal of worn-out or obsolete Equipment, all in the ordinary course of
Grantor’s business.

    

    5.2.  Change of Jurisdiction of
Organization, Relocation of Business or Collateral. Grantor shall not
change its jurisdiction of organization, relocate its chief executive office,
principal place of business or its records, or allow the relocation of any
Collateral (except as allowed pursuant to Section 5.1 immediately above)
from such address(es) provided to the Secured Parties pursuant to Section 4(d) above without
thirty (30) days prior written notice to the Secured Parties.

    

    5.3.  Limitation on Liens on Collateral.
Grantor shall not, directly or indirectly, create, permit or suffer to
exist, and shall defend the Collateral and any other assets of Grantor of any
kind (including real property) against and take such other action as is
necessary to remove, any Lien on the Collateral or any other such property,
except (a) Permitted Liens and (b) the Lien granted to the Secured Parties under
this Security Agreement. Grantor shall use its commercially reasonable efforts
to further defend the right, title and interest of the Secured Parties in and to
any of Grantor’s rights under the Chattel Paper, Contracts, Documents, General
Intangibles, Instruments and Investment Property and to the Equipment and
Inventory and in and to the Proceeds thereof against the claims and demands of
all persons whomsoever.

    

    5.4.  Limitations on Modifications of
Accounts, Etc. Upon the occurrence and during the continuance of any
Event of Default, Grantor shall not, without the Majority Lenders’ prior written
consent which shall not be unreasonably withheld, grant any extension of the
time of payment of any of the Accounts, Chattel Paper, Instruments or amounts
due under any Contract or Document, compromise, compound or settle the same for
less than the full amount thereof, release, wholly or partly, any person liable
for the payment thereof, or allow any credit or discount whatsoever thereon
other than trade discounts and rebates granted in the ordinary course of
Grantor’s business.

     

    
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    5.5.  Insurance. Grantor shall
maintain reasonable insurance policies insuring the Collateral against loss or
damage from such risks and in such amounts and forms and with such companies as
are customarily maintained by businesses similar to Grantor.

    

    5.6.  Taxes, Assessments, Etc.
Grantor shall pay promptly when due all property and other taxes,
assessments and government charges or levies imposed upon, and all claims
(including claims for labor, materials and supplies) against, the Equipment,
Fixtures or Inventory, except to the extent the validity thereof is being
contested in good faith and adequate reserves are being maintained in connection
therewith.

    

    5.7.  Maintenance of Records.
Grantor shall keep and maintain at its own cost and expense reasonably
satisfactory and complete records of the Collateral. Grantor shall not create
any Chattel Paper without placing a legend on the Chattel Paper acceptable to
the Majority Lenders indicating that the Secured Parties have a security
interest in the Chattel Paper.

    

    5.8.  Registration of Intellectual Property
Rights. Grantor shall promptly register or cause to be registered (to the
extent not already registered) the most recent version of any Copyright and any
Copyright License and any Patent, Patent License, Trademark or Trademark
License, which, individually or in the aggregate, is material to the conduct of
Grantor’s business, with the United States Copyright Office or Patent and
Trademark Office or similar offices in overseas jurisdictions, as applicable,
including, without limitation, in all such cases, the filing of applications for
renewal, affidavits of use, affidavits of noncontestability and opposition and
interference and cancellation proceedings. Grantor shall register or cause to be
registered with the United States Copyright Office or Patent and Trademark
Office or similar offices in overseas jurisdictions, as applicable, those
additional rights and interests developed or acquired by Grantor after the date
of this Security Agreement, including, without limitation, any additions to the
rights and interests of Grantor listed on Schedule C hereto, prior to
the sale nr licensing of any product containing such rights and
interests.

    

    5.9.  Notification Regarding Changes in
Intellectual Property. Grantor shall:

    

    (a)    promptly
advise the Secured Parties of any subsequent ownership right or interest of the
Grantor in or to any Copyright, Patent, Trademark or License not specified on
Schedule C hereto and
shall permit the Secured Parties to amend such Schedule, as necessary, to
reflect any addition or deletion to such ownership rights; and

    

    (b)    promptly
give Secured Parties written notice of any applications or registrations of
intellectual property rights filed with the United States Patent and Trademark
Office and the United States Copyright Office or similar offices in overseas
jurisdictions, including the date of such filing and the registration or
application numbers, if any.

     

    
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    5.10.  Defense of
Intellectual Property. Grantor shall (a) use its commercially reasonable
efforts to protect, defend and maintain the validity and enforceability of the
Copyrights, Patents and Trademarks, (b) use its commercially reasonable efforts
to detect infringements of the Copyrights, Patents and Trademarks and promptly
advise the Secured Parties in writing of material infringements detected and (c)
not allow any Copyrights, Patents or Trademarks to be abandoned, forfeited or
dedicated to the public without the written consent of the Majority Lenders
unless reasonable business practice would determine that any such abandonment is
appropriate.

    

    5.11. Further Assurances; Pledge of
Instruments. At any time and from time to time, upon the written request
of the Majority Lenders, and at the sole expense of Grantor, Grantor shall
promptly and duly execute and deliver any and all financing statements, fixture
filings, security agreements, pledges, assignments, endorsements of certificates
of title, mortgages, deeds of trust, opinions of counsel, and all other
documents (collectively, the “Additional
Documents”) and take such further action as the Majority Lenders may
reasonably deem necessary or desirable to obtain the full benefits of this
Security Agreement, including, without limitation, (a) using its commercially
reasonable efforts to secure all consents and approvals necessary or appropriate
for the grant of a security interest to the Secured Parties in any Contract held
by Grantor or in which Grantor has any right or interest not heretofore
assigned; (b) executing, delivering and causing to be filed any financing or
continuation statements (including “in lieu” continuation statements) under the
UCC with respect to the security interests granted hereby; (c) filing or
cooperating with the Secured Parties in filing any forms or other documents
required to be recorded with the United States Patent and Trademark Office,
United States Copyright Office or similar offices in overseas jurisdictions, or
any actions, filings, recordings or registrations in any foreign jurisdiction or
under any international treaty, required to secure or protect the Secured
Parties’ interest in Grantor’s Collateral; (d) transferring Grantor’s Collateral
to the Secured Parties’ possession (only if a security interest in such
Collateral can be perfected by possession); (e) at any Secured Party’s
reasonable request, placing the interest of the Secured Parties as lienholder on
the certificate of title (or similar evidence of ownership) of any vehicle,
watercraft or other Equipment constituting Collateral owned by Grantor which is
covered by a certificate of title (or similar evidence of ownership); (f) at any
Secured Party’s reasonable request, executing and delivering or causing to be
delivered written notice to insurers of the Secured Parties’ security interest
in, or claim in or under, any policy of insurance (including unearned premiums);
and (g) at the Majority Lenders’ reasonable request, using its commercially
reasonable efforts to obtain acknowledgments from bailees having possession of
any Collateral and waivers of liens from landlords and mortgagees of any
location where any of the Collateral may from time to time be stored or located.
Any Secured Party may at any time and from time to time file Additional
Documents that describe the Collateral as all assets of Grantor or words of
similar effect. To the maximum extent permitted by law, any Additional Documents
may be signed by any Secured Party on behalf of Grantor and may be filed at any
time in any jurisdiction. Grantor also hereby authorizes any Secured Party to
file any such Additional Documents (including “in lieu” continuation statements)
without the signature of Grantor. If any amount payable under or in connection
with any of the Collateral is or shall become evidenced by any Instrument, such
Instrument, other than checks and notes received in the ordinary course of
business and any Instrument in the outstanding or stated amount of less than
twenty-five thousand dollars ($25,000), shall be duly endorsed in a manner
reasonably satisfactory to the Majority Lenders and delivered to the Secured
Parties promptly and in any event within five (5) business days of Grantor’s
receipt thereof.

     

    
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    6.                 RIGHTS AND REMEDIES UPON DEFAULT.
After any Event of Default shall have occurred and while such Event of
Default is continuing:

     

    (a)    Upon
the written consent of the Majority Lenders, the Secured Parties may exercise in
addition to all other rights and remedies granted to it under this Security
Agreement, the Notes and under any other instrument or agreement securing,
evidencing or relating to the Secured Obligations, all rights and remedies of a
secured party under the UCC. Without limiting the generality of the foregoing,
the Grantor expressly agrees that in any such event the Secured Parties, without
demand of performance or other demand, advertisement or notice of any kind
(except the notice specified below of time and place of public or private sale)
to or upon such Grantor or any other person (all and each of which demands,
advertisements and notices are hereby expressly waived to the maximum extent
permitted by the UCC and other applicable law), may (i) reclaim, take
possession, recover, store, maintain, finish, repair, prepare for sale or lease,
shop, advertise for sale or lease and sell or lease (in the manner provided
herein) the Collateral, and in connection with the liquidation of the Collateral
and collection of the accounts receivable pledged as Collateral, use any
Trademark, Copyright, or process used or owned by a Grantor and (ii) forthwith
collect, receive, appropriate and realize upon the Collateral, or any part
thereof, and may forthwith sell, lease, assign, give an option or options to
purchase or sell or otherwise dispose of and deliver said Collateral (or
contract to do so), or any part thereof, in one or more parcels at public or
private sale or sales, at any exchange or broker’s board or at any Secured
Party’s offices or elsewhere at such prices as they may deem best, for cash or
on credit or for future delivery without assumption of any credit risk. To the
extent the Grantor has the right to do so, the Grantor authorizes any Secured
Party, on the terms set forth in this Section 6 to enter the
premises where the Collateral is located during normal business hours, to take
possession of the Collateral, or any part of it, and to pay, purchase, contact,
or compromise any encumbrance, charge, or lien which, in the opinion of any
Secured Party, appears to be prior or superior to its security interest. Any
Secured Party shall have the right upon any such public sale or sales, and, to
the extent permitted by law, upon any such private sale or sales, to purchase
the whole or any part of said Collateral so sold, free of any right or equity of
redemption, which equity of redemption the Grantor hereby releases. The Grantor
further agrees, at the Majority Lenders’ request, to assemble its Collateral and
make it available to the Secured Parties at places which the Secured Parties
shall reasonably select, whether at Grantor’s premises or elsewhere. The Secured
Parties shall apply the net proceeds of any such collection, recovery, receipt,
appropriation, realization or sale as provided in Section 6(f) below and only
after so paying over such net proceeds and after the payment by the Secured
Parties of any other amount required by any provision of law, remit the surplus
from the Secured Parties’ account, if any, to Grantor. To the maximum extent
permitted by applicable law, the Grantor waives all claims, damages, and demands
against the Secured Parties arising out of the repossession, retention or sale
of the Collateral. The Grantor agrees that the Secured Parties need not give
more than ten (10) days’ notice of the time and place of any public sale or of
the time after which a private sale may take place and that such notice is
reasonable notification of such matters. The Grantor shall remain liable for any
deficiency if the proceeds of any sale or disposition of its Collateral are
insufficient to pay all amounts to which the Secured Parties are entitled from
Grantor, such Grantor also being liable for the attorney costs of any attorneys
employed by the Secured Parties to collect such deficiency.

     

    
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    (b)    As
to any Collateral constituting certificated securities or uncertificated
securities, if, at any time when the Secured Parties shall determine to exercise
their right to sell the whole or any part of such Collateral hereunder, such
Collateral or the part thereof to be sold shall not, for any reason whatsoever,
be effectively registered under Securities Act of 1933, as amended (as so
amended the “Act”), the
Secured Parties may, in their discretion (subject only to applicable
requirements of law), sell such Collateral or part thereof by private sale in
such manner and under such circumstances as the Secured Parties may deem
necessary or advisable, but subject to the other requirements of this Section 6(b), and shall not be
required to effect such registration or cause the same to be effected. Without
limiting the generality of the foregoing, in any such event the Secured Parties
may, in their discretion, (i) in accordance with applicable securities laws,
proceed to make such private sale notwithstanding that a registration statement
for the purpose of registering such Collateral or part thereof could be or shall
have been filed under the Act; (ii) approach and negotiate with a single
possible purchaser to effect such sale; and (iii) restrict such sale to a
purchaser who will represent and agree that such purchaser is purchasing for its
own account, for investment, and not with a view to the distribution or sale of
such Collateral or part thereof. In addition to a private sale as provided above
in this Section 6(b), if
any of such Collateral shall not be freely distributable to the public without
registration under the Act at the time of any proposed sale hereunder, then the
Secured Parties shall not be required to effect such registration or cause the
same to be effected but may, in their discretion (subject only to applicable
requirements of law), require that any sale hereunder (including a sale at
auction) be conducted subject to such restrictions as the Secured Parties may,
in their discretion, deem necessary or appropriate in order that such sale
(notwithstanding any failure so to register) may be effected in compliance with
the Bankruptcy Code and other laws affecting the enforcement of creditors’
rights and the Act and all applicable state securities laws.

     

    (c)    The
Grantor agrees that in any sale of any of such Collateral, whether at a
foreclosure sale or otherwise, the Secured Parties are hereby authorized to
comply with any limitation or restriction in connection with such sale as it may
be advised by counsel is necessary in order to avoid any violation of applicable
law (including compliance with such procedures as may restrict the number of
prospective bidders and purchasers, require that such prospective bidders and
purchasers have certain qualifications and restrict such prospective bidders and
purchasers to persons who will represent and agree that they are purchasing for
their own account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required approval of the
sale or of the purchaser by any governmental authority, and the Grantor further
agrees that such compliance shall not result in such sale being considered or
deemed not to have been made in a commercially reasonable manner, nor shall the
Secured Parties be liable nor accountable to a Grantor for any discount allowed
by the reason of the fact that such Collateral is sold in compliance with any
such limitation or restriction.

     

    
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    (d)    The
Grantor also agrees to pay all fees, costs and expenses of the Secured Parties,
including, without limitation, reasonable attorneys’ fees, incurred in
connection with the enforcement of any of their rights and remedies
hereunder.

    

    (e)    The
Grantor hereby waives presentment, demand, protest or any notice (to the maximum
extent permitted by applicable law) of any kind in connection with this Security
Agreement or any Collateral.

    

    (f)     The
Proceeds of any sale, disposition or other realization upon all or any part of
the Collateral shall be distributed by the Secured Parties in the following
order of priorities:

     

    FIRST,
to each Secured Party in an amount sufficient to pay in full the reasonable
costs of such Secured Party in connection with such sale, disposition or other
realization, including all fees, costs, expenses, liabilities and advances
incurred or made by any Secured Party in connection therewith, including,
without limitation, reasonable attorneys’ fees;

     

    SECOND,
to the Secured Parties in amounts proportional to the Pro Rata share of the then
unpaid Secured Obligations of each Secured Party; and

     

    FINALLY,
upon payment in full of the Secured Obligations, to the Grantor or its
representatives, in accordance with the UCC or as a court of competent
jurisdiction may direct.

     

    (g)    The
costs of enforcing or pursuing any right or remedy hereunder, including without
limitation any repossession, sale, possession and management (including, without
limitation, reasonable attorneys’ fees), and distribution shall be borne Pro
Rata by the Secured Parties. Each Secured Party shall reimburse the other
Secured Parties, as applicable, for its Pro Rata share of all such costs
promptly upon demand.

    

    7.                 ACTIONS BY THE SECURED PARTIES AND
AMENDMENTS. All actions, omissions and decisions of the Secured Parties
hereunder or any amendment of this Security Agreement or any Note (each called
herein an “Act of the
Secured Parties”) shall be determined by and require the written consent
of the Majority Lenders. Each Secured Party shall take such actions and execute
such documents as may be necessary to confirm or accomplish any Act of the
Secured Parties. Notwithstanding the foregoing, the consent of each affected
Secured Party shall be necessary to do the following to any Note:

    

    (a)    reduce
the percentage of the principal and interest amount of Loans whose holders must
consent to constitute Majority Lenders’ consent;

    

    (b)    reduce
the rate of or change the time for payment of interest on any Loan;

     

    
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    (c)    reduce
the principal of or change the fixed maturity of any Loan;

    

    (d)    make
any change in the terms of any Note that adversely affects the right to convert
any Note or increases the conversion price of such Note (as described in such
Note); or

    

    (e)    make any Loan payable in money other
than that stated in the Subscription Agreements.

    

    8.                 UNEQUAL PAYMENT BY GRANTOR.
Each Secured Party agrees that if it shall obtain or receive, through the
exercise of any right granted to the Secured Parties under this Security
Agreement, the Notes or the Subscription Agreement or by applicable law,
including, but not limited to any right of set-off, any secured claim under
Section 506 of the Bankruptcy Code or any other security or interest, any
payment or payments greater than its Pro Rata share of all Loans, as measured
immediately prior to the receipt of such payment or payments, then (a) such
Secured Party shall promptly purchase at par (and shall be deemed to have
thereupon purchased) from other Secured Parties, a participation in the Loans of
such other Secured Parties, so that each Secured Party shall have received
payments in proportion to its Pro Rata share immediately prior to such
transactions and (b) such other adjustments shall be made from time to time as
shall be equitable to ensure that the Secured Parties share the benefits of such
payment on a Pro Rata basis. The term “Loan” as used in this paragraph shall
include accrued interest thereon.

    

    9.                 INDEMNITY. The Grantor agrees
to defend, indemnify and hold harmless the Secured Parties and their officers,
employees, and agents against (a) all obligations, demands, claims, and
liabilities claimed or asserted by any other party in connection with the
transactions contemplated by this Security Agreement and (b) all losses or
expenses in any way suffered, incurred, or paid by any Secured Party as a
primary and direct result of transactions between any Secured Party and any
Grantor, whether under this Security Agreement or otherwise (including without
limitation, reasonable attorneys fees and expenses), except for losses arising
from or out of such Secured Party’s negligence, bad faith or willful
misconduct.

    

    10.               REINSTATEMENT. This Security
Agreement shall remain in full force and effect and continue to be effective
should any petition be filed by or against any Grantor for liquidation or
reorganization, should any Grantor become insolvent or make an assignment for
the benefit of creditors or should a receiver or trustee be appointed for all or
any significant part of any Grantor’s property and assets, and shall continue to
be effective or be reinstated, as the case may be, if at any time payment and
performance of the Secured Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Secured Obligations, whether as a “voidable
preference,” “fraudulent conveyance,” or otherwise, all as though such payment
or performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Secured Obligations
shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

     

    
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    11.               MISCELLANEOUS.

    

    11.1.          Waivers; Modifications. None
of the terms or provisions of this Security Agreement may be waived, altered,
modified or amended except by an instrument in writing, duly executed by the
Grantor and the Majority Lenders. Each Secured Party acknowledges that because
this Security Agreement may be amended with the consent of the Majority Lenders,
each Secured Party’s rights hereunder may be amended or waived without such
Secured Party’s consent.

    

    11.2.          Termination of this Security
Agreement. Subject to Section 10 hereof, this
Security Agreement shall terminate upon (i) the payment and performance in full
of the Secured Obligations or (ii) the conversion of the Notes in accordance
with their terms, whichever occurs first.

    

    11.3.          Successor and Assigns. This
Security Agreement and all obligations of Grantor hereunder shall be binding
upon the successors and assigns of Grantor, and shall, together with the rights
and remedies of the Secured Parties hereunder, inure to the benefit of the
Secured Parties, any future holder of any of the indebtedness and their
respective successors and assigns. No sales of participations, other sales,
assignments, transfers or other dispositions of any agreement governing or
instrument evidencing the Secured Obligations or any portion thereof or interest
therein shall in any manner affect the lien granted to the Secured Parties
hereunder.

    

    11.4.          Governing Law. In all
respects, including all matters of construction, validity and performance, this
Security Agreement and the Secured Obligations arising hereunder shall be
governed by, and construed and enforced in accordance with, the laws of the
State of Delaware applicable to contracts made and performed in such state,
without regard to the principles thereof regarding conflict of laws, except to
the extent that the UCC provides for the application of the law of a different
jurisdiction.

    

    11.5.          Counterparts. This Security
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instruments.

     

    [Signature
pages follow]

     

    
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    IN WITNESS WHEREOF, each of
the parties hereto has caused this Security Agreement to be executed and
delivered by its dilly authorized officer on the date first set forth
above.

    

    Grantor

    

    
      
        
          
            
              	
                      MERRIMAN CURHAN FORD
      GROUP,
      INC.

                    	 
      	
                      Address
      for Notice:

                    
	 
      	 
      	 
      	 
      
	 	 	 	      
                      600
      California Street, 9th Floor,

                    
	
                      By:

                    	
                       

                    	 
      	
                      San
      Francisco, California 94108

                    
	 
      	
                      Name:

                    	 
      	
                      Facsimile: (415)
      415-248-5690

                    
	 
      	
                       Title:

                    	 
      	
                      Attention: Chief Financial
      Officer

                    

            

          

        

      

    

    

    ACCEPTED
AND ACKNOWLEDGED BY

    

    
      	
              Name
      of Secured Party:
      ________________________________________________________________

            
	 
      
	
              Signature
      of Authorized Signatory of Secured Party:
      ___________________________________________

            
	 
      
	
              Name
      of Authorized Secured Party:
      ___________________________________________________________

            
	 
      
	
              Title
      of Authorized Secured Party:
      ____________________________________________________________

            
	 
      
	
              Email
      Address of Secured Party:
      _________________________________________________________

            
	 
      
	
              Facsimile
      Number of Secured Party:
      ________________________________________________________

            

    

     

    Address
for Notice of Secured Party:

     

    EIN
Number: _______________________

     

    [Signature
Page to the Security Agreement]

     

    
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    Schedule
A

     

    Location
of Collateral

     

    
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    Schedule
B

     

    Deposit,
Securities and Commodities Accounts

     

    
      
        	
                Name

              	 
      	
                Address

              	 
      	
                Account 

                Number

              	 
      	
                Account Name

              
	
                [Bank]

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                [Bank]

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                [Bank]

              	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

     

    
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    Schedule
C

     

    Intellectual
Property

     

    Patents

     

    
      
        	
                Docket  

                No.

              	 
      	
                Application
       

                Date or

                First
 

                Claimed

              	 
      	
                U.S.  

                Patent No.

              	 
      	
                 Inventor(s)

              	 
      	
                 Title

              	 
      	
                 Issue
    Date

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

     

    Trademarks

     

    
      
        	
                Trademark

              	 
      	
                Filing Date

              	 
      	
                Case No.

              	 
      	
                Registration No.

              	 
      	
                Renewal Date

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

    

    Copyrights

     

    Licenses

     

    
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    Domain
Names

     

    
      
        	
                Website

              	 
      	
                Current 

                Owner

              	 
      	
                Domain

                Name 

                Registry

              	 
      	
                Status

              	 
      	
                Renewal

                Due 

                Date

              	 
      	
                Creation

                Date

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

     

    
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          21NEITHER THIS WARRANT NOR THE SHARES
OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE
STATE SECURITIES LAW AND NEITHER MAY BE SOLD OR OTHERWISE
TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
FORM AND SUBSTANCE OF WHICH IS ACCEPTABLE TO THE ISSUER.

    

    MERRIMAN
CURHAN FORD GROUP, INC.

    

    COMMON
STOCK PURCHASE WARRANT

    

    Warrant
No. ___

    ______
Shares

    

    Original
Issue Date: __________, 2009

    

    THIS
CERTIFIES THAT, FOR VALUE RECEIVED, [________________] or its registered assigns
(the "Holder")
is entitled to purchase, on the terms and conditions hereinafter set forth, at
any time in whole or in part from the Original Issue Date set forth above until
5:00 p.m., Eastern Time, on the tenth anniversary of the Original Issue Date, or
if such date is not a day on which the Company (as hereinafter defined) is open
for business, then the next succeeding day on which the Company is open for
business (such date is the "Expiration
Date"), but not thereafter, [_____________] thousand (______,000) shares
of the Common Stock, $0.0001 par value per share (the
"Common
Stock"), of MERRIMAN
CURHAN FORD GROUP,
INC., a Delaware corporation (the "Company"),
at Fifty Cents ($0.50) per share (the "Exercise
Price"), such number of shares and Exercise Price being subject to
adjustment upon the occurrence of the contingencies set forth in this Warrant.
Each share of Common Stock as to which this Warrant is exercisable is a "Warrant
Share" and all such shares are collectively referred to as the "Warrant
Shares." 

    

    Section
1.

    Definitions.

    

    (a)
"Effective
Date" shall mean the date on which the Warrant shall be deemed to have
been exercised.

    

    (b)
"Initial Issuance
Date" shall mean the date on which Secured Convertible Promissory Notes
are first purchased pursuant to the Subscription Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)
"Subscription Agreement" shall
mean the Subscription Agreement by and among the Company and the purchasers set
forth on Schedule A thereto, dated [________], 2009.

    

    (d)
"Secured Convertible Promissory Notes" shall mean the
secured convertible promissory notes convertible into shares of Common Stock
issued pursuant to the terms of the Subscription Agreement.

    

    Section
2. Exercise of
Warrant; Conversion of Warrant.

    

    (a)
Subject to the limitations described in Section 2(a) above, this Warrant may, at
the option of the Holder, be exercised in whole or in part from time to time, on
or before 5:00 p.m., Eastern Time, on the Expiration Date, by delivery to the
Company at its principal office (i) a written notice of such Holder's
election to exercise this Warrant (the "Exercise
Notice"), which notice may be in the form of the Notice of Exercise
attached hereto, properly executed and completed by the Holder or an authorized
officer thereof, (ii) a check or other funds (the "Funds")
payable to the order of the Company, in an amount equal to the product of the
Exercise Price multiplied
by the number of Warrant Shares specified in the Exercise Notice, and
(iii) this Warrant (the items specified in (i), (ii), and (iii) are
collectively the "Exercise
Materials"); provided,
however, that if this Warrant is not exercised in whole immediately prior
to the consummation by the Company of a Change in Control Event (as defined in
the Secured Convertible Promissory Notes), then immediately following the
consummation by the Company of such Change in Control Event, this Warrant will
not be exercisable and shall be null and void for all purposes. Notwithstanding
anything in this Warrant Agreement to the contrary, if this Warrant shall not
have been exercised in full immediately prior to a Change in Control Event, then
this Warrant shall be automatically exercised pursuant to Section 3 below,
without further action on the part of the Holder (and the Holder hereof shall be
deemed to be a holder of the Common Stock issued upon such automatic exercise),
immediately prior to the Change in Control Event, unless at any time on or
before such time, the Holder shall notify the Company in writing that no such
automatic exercise is to occur.

    

    (b) As
promptly as practicable, and in any event within five (5) business days after
the later of (i) its receipt of the Exercise Materials and (ii) the clearing of
the Funds, the Company shall execute or cause to be executed and delivered to
the Holder a certificate or certificates representing the number of Warrant
Shares specified in the Exercise Notice, together with cash in lieu of any
fraction of a share. The stock certificate or certificates shall be registered
in the name of the Holder or such other name or names as shall be designated in
the Exercise Notice. The Effective Date and the date the person in whose name
any certificate evidencing the Common Stock issued upon the exercise hereof is
issued shall be deemed to have become the holder of record of such shares, shall
be the date the Company receives the Exercise Materials, irrespective of the
date of delivery of a certificate or certificates evidencing the Common Stock
issued upon the exercise or conversion hereof, provided, however, that if the Exercise
Materials are received by the Company on a date on which the stock transfer
books of the Company are closed, the Effective Date shall be the next succeeding
date on which the stock transfer books are open. If this Warrant shall have been
exercised only in part, then, unless this Warrant has expired, the Company
shall, at its expense, at the time of delivery of such certificates, deliver to
the Warrantholder a new Warrant representing the right to purchase the number of
shares with respect to which this Warrant shall not then have been exercised. In
the event that this Warrant is exercised, in whole in connection with a Change
in Control Event, the Effective Date shall be the date of the consummation by
the Company of such Change in Control Event. All shares of Common Stock issued
upon the exercise or conversion of this Warrant will, upon issuance, be fully
paid and non-assessable and free from all taxes, liens, and charges with respect
thereto.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Section
3.

    Cashless
Exercise. In
lieu of exercising this Warrant pursuant to Section 2(c), the
Holder may elect to receive, without payment by the Holder of any additional
consideration, shares of Common Stock equal to the value of this Warrant (or the
portion thereof being cancelled) by surrender of this Warrant at the principal
office of the Company together with an Exercise Notice, in which event the
Company shall issue to the Holder a number of shares of Common Stock computed
using the following formula:

     

    Y (A -
B)

    X=

    A

    

    Where:

    X
=

    The
number of shares of Common Stock to be issued to the

    Holder
pursuant to this cashless exercise;

    

    
      	
              Y
      =

            

    

    The
number of Warrant Shares in respect of which the cashless exercise election is
made;

    

    
      	
              A
      =

            

    

    The fair
market value of one (1) share of Common Stock at the time the cashless exercise
election is made; and

    

    B
=

    The
Exercise Price (as adjusted to the date of the cashless exercise)

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    For
purposes of this Section 3, the fair
market value of one (1) share of Common Stock as of a particular date shall be
determined as follows: (i) if listed or quoted for trading on a securities
market or exchange, the value shall be deemed to be the average closing price of
the securities on such exchange over the thirty (30) day period ending three (3)
days prior to the cashless exercise election; (ii) if traded over-the-counter,
the value shall be deemed to be the average of the closing bid or sale prices
(whichever is applicable) over the thirty (30) day period ending three (3) days
prior to the cashless exercise election; and (iii) if there is no active public
market, the value shall be the fair market value thereof, as jointly determined
in good faith by the Holder and the Company's Board of Directors. If the Holder
and the Company's Board of Directors are unable to reach such a determination,
the Holder and the Company's Board of Directors shall jointly select an
appraiser, who is experienced in such matters. The decision of such appraiser
shall be final and conclusive, and the cost of such appraiser shall be borne
equally by the Holder and the Company.

    

    Section
4.

    Adjustments to Warrant
Shares;
Antidilution. The Exercise Price and
number of Warrant Shares issuable upon exercise of this Warrant are subject to
adjustment from time to time as set forth in this Section
4.

    

    (a) Subdivisions, Combinations
and Other Issuances. If the Company shall at any time prior to the
expiration of this Warrant subdivide its Common Stock, by split-up or otherwise,
or combine its Common Stock, or issue additional shares of its Common Stock as a
dividend, the number of Warrant Shares issuable on the exercise of this Warrant
shall forthwith be proportionately increased in the case of a subdivision or
stock dividend, or proportionately decreased in the case of a combination.
Appropriate adjustments shall also be made to the Exercise Price, but the
aggregate Exercise Price payable for the total number of Warrant Shares
purchasable under this Warrant (as adjusted) shall remain the same. Any
adjustment under this Section 4(a) shall
become effective at the close of business on the date the subdivision or
combination becomes effective, or as of the record date of such dividend, or in
the event that no record date is fixed, upon the making of such
dividend.

    

    (b) Reclassification,
Reorganization and Consolidation. In case of any reclassification,
capital reorganization, or change in the Common Stock of the Company (other than
as a result of a subdivision, combination, or stock dividend provided for in
Section 4(a)
above), then, as a condition of such reclassification, reorganization, or
change, lawful provision shall be made, and duly executed documents evidencing
the same from the Company or its successor shall be delivered to the Holder, so
that the Holder shall have the right at any time prior to the expiration of this
Warrant to purchase, at a total price equal to that payable upon the exercise of
this Warrant, the kind and amount of shares of stock and other securities and
property receivable in connection with such reclassification, reorganization, or
change by a holder of the same number of shares of Common Stock as were
purchasable by the Holder immediately prior to such reclassification,
reorganization, or change. In any such case appropriate provisions shall be made
with respect to the rights and interest of the Holder so that the provisions
hereof shall thereafter be applicable with respect to any shares of stock or
other securities and property deliverable upon exercise hereof, and appropriate
adjustments shall be made to the Exercise Price payable hereunder, provided the
aggregate Exercise Price shall remain the same.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (c) Calculations. All
calculations under this Section 4 shall be
made to the nearest cent or the nearest 1/100th of a share, as applicable. The
number of shares of Common Stock outstanding at any given time shall not include
shares owned or held by or for the account of the Company, and the disposition
of any such shares shall be considered an issue or sale of Common
Stock.

    

    (d) Warrant
Shares. The Company covenants and agrees that all Warrant Shares
which may be issued will, upon issuance, be validly issued, fully paid, and
non-assessable. The Company further covenants and agrees that the Company will
at all times have authorized and reserved, free from preemptive rights, a
sufficient number of shares of its Common Stock to provide for the exercise of
this Warrant in full.

    

    Section
5.

    Notice of
Adjustments. Upon the occurrence of each adjustment pursuant to Section 4, the
Company at its expense will promptly compute such adjustment in accordance with
the terms of this Warrant and prepare a certificate setting forth such
adjustment, including a statement of the adjusted Exercise Price, describing the
transactions giving rise to such adjustments and showing in detail the facts
upon which such adjustment is based. When any such adjustment is required to be
made, the Company will promptly, but in any event no later than ten (10) days
after said adjustment, notify the Holder of the event giving rise to such
adjustment and deliver a copy of each such certificate to the
Holder.

    

    Section
6.

    Registration Rights.
The Holder shall be entitled to registration rights with respect to the Warrant
Shares as set forth in the Subscription Agreement.

    

    Section
7.

    No Stockholder
Rights. This Warrant shall not entitle Holder to any voting rights or
other rights as a stockholder of the Company.

    

    Section
8.

    Transfer of
Securities.

    

    (a) This
Warrant and the Warrant Shares and any shares of capital stock received in
respect thereof, whether by reason of a stock split or share reclassification
thereof, a stock dividend thereon, or otherwise, shall not be transferable
except upon compliance with the provisions of the Securities Act of 1933, as
amended (the "Securities
Act"), and applicable state securities laws with respect to the transfer
of such securities. The Holder, by acceptance of this Warrant, agrees to be
bound by the provisions this Section 8 hereof
and to indemnify and hold harmless the Company against any loss or liability
arising from the disposition of this Warrant or the Warrant Shares issuable upon
exercise hereof or any interest in either thereof in violation of the provisions
of this Warrant.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (b) Each
certificate for the Warrant Shares and any shares of capital stock received in
respect thereof, whether by reason of a stock split or share reclassification
thereof, a stock dividend thereon, or otherwise, and each certificate for any
such securities issued to subsequent transferees of any such certificate shall
(unless otherwise permitted by the provisions hereof) be stamped or otherwise
imprinted with a legend in substantially the following form:

     

    “THE SHARES OF COMMON STOCK
REPRESENTED BY THIS
CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE STATE
SECURITIES LAW AND MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
FORM AND SUBSTANCE OF WHICH IS ACCEPTABLE TO THE ISSUER.”
         

     

    Section
9.

    Replacement of
Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and
upon cancellation hereof, or in lieu of and substitution for this Warrant, a new
warrant (the "New
Warrant"), but only upon receipt of evidence reasonably satisfactory to
the Company of such loss, theft or destruction and customary and reasonable bond
or indemnity, if requested.

    

    Section
10.

    Miscellaneous.
 

    

    (a) The
terms of this Warrant shall be binding upon and shall inure to the benefit of
any successors or permitted assigns of the Company and the Holder.

    

    (b)
Except as otherwise provided herein, this Warrant and all rights hereunder are
transferable by the registered holder hereof in person or by duly authorized
attorney on the books of the Company upon surrender of this Warrant, properly
endorsed, to the Company. The Company may deem and treat the registered holder
of this Warrant at any time as the absolute owner hereof for all purposes and
shall not be affected by any notice to the contrary.

    

    (c)
Notwithstanding any provision herein to the contrary, the Holder may not
exercise, sell, transfer, or otherwise assign this Warrant unless the Company is
provided with an opinion of counsel satisfactory in form and substance to the
Company, to the effect that such exercise, sale, transfer, or assignment would
not violate the Securities Act or applicable state securities laws.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (d) All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed effective (a) upon hand delivery or delivery by
facsimile, with accurate confirmation generated by the transmitting facsimile
machine, 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 other than on a
business day during normal business hours where such notice is to be received)
or (b) on the second business day following the date of mailing by express
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: (i) if to the Company, to: Merriman Curhan Ford Group,
Inc., 600 California Street, 9th Floor, San Francisco, California 94108,
Attention: Chief Financial Officer, telecopier: (415) 415-248-5690, (ii) if to
the Holder to: the address and telecopier number indicated on the signature
pages to the Subscription Agreement.

    

    (e) This
Warrant shall be governed by and construed in accordance with the laws of the
State of California without regard to principles of conflicts of laws. Any
action brought by either party against the other concerning the transactions
contemplated by this Warrant shall be brought only in the state courts of State
of California located in the city and county of San Francisco or in the federal
courts located in the city and county of San Francisco, California. The parties and the individuals
executing this Warrant and other agreements referred to herein or delivered in
connection herewith on behalf of the Company agree to submit to the jurisdiction
of such courts and waive trial by jury. The prevailing party shall be
entitled to recover from the other party its reasonable attorney’s fees and
costs. In the event that any provision of this Warrant or any other agreement
delivered in connection herewith is invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any such provision which
may prove invalid or unenforceable under any law shall not affect the validity
or enforceability of any other provision of any agreement.

    

    (f) The
headings herein are for convenience only, do not constitute a part of this
Warrant and shall not be deemed to limit or affect any of the provisions
hereof.

    

    (g) In
case any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Warrant shall not in any way be affected or
impaired thereby and the parties will attempt in good faith to agree upon a
valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.

    

    [The
remainder of this page intentionally left blank]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    SIGNATURE
PAGE

    TO

    MERRIMAN
CURHAN FORD GROUP, INC.

    

    COMMON
STOCK PURCHASE WARRANT

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed in its name
by its duly authorized officers under seal, and to be dated as of the date first
above written.

    

    
      
        	 
      	
                MERRIMAN
      CURHAN FORD GROUP,

                INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:
       

              

      

    

    

    [Signature
Page to Merriman Curhan Ford Group, Inc. Common Stock Purchase
Warrant]

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    ASSIGNMENT

    

    (To be
Executed by the Holder to effect a transfer of the foregoing
Warrant)

    

    FOR VALUE
RECEIVED, the undersigned hereby sells, and assigns and transfers unto
______________________ the foregoing Warrant and the rights represented thereto
to purchase shares of Common Stock, par value $0.0001 per share, of MERRIMAN
CURHAN FORD GROUP, INC. in accordance with terms and conditions thereof, and
does hereby irrevocably constitute and appoint ________________ Attorney to
transfer the said Warrant on the books of the Company, with full power of
substitution.

    

    
      
        	 
      	
                Holder:

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                Address

              
	 
      	 
      
	 
      	
                Dated:
      __________________, 20__

              
	 
      	 
      
	 
      	
                In
      the presence of:

              
	 
      	 
      
	 
      	 
      

      

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    NOTICE
OF EXERCISE

    

    [To be
signed only upon exercise of Warrant]

    

    To:

    MERRIMAN
CURHAN FORD GROUP, INC.

    

    The
undersigned Holder of the attached Warrant hereby irrevocably elects to exercise
the Warrant for, and to purchase thereunder, _________ shares of Common Stock,
par value $0.0001 per share, of MERRIMAN CURHAN FORD GROUP, INC., issuable upon
exercise of said Warrant and hereby surrenders said Warrant.

    

    The
undersigned herewith requests that the certificates for such shares be issued in
the name of, and delivered to the undersigned, whose address is
________________________________.

    

    If
electronic book entry transfer, complete the following:

    

    Account
Number:  ____________________________

    

    Transaction
Code Number: _____________________

    

    Dated:
___________________

    

    
      	 
      	
              Holder:

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            

    

    

    NOTICE

    

    The
signature above must correspond to the name as written upon the face of the
within Warrant in every particular, without alteration or enlargement or any
change whatsoever.

    
      
         

      

      
        10

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