Document:

Zone Mining Security Agreement

    
      

      

    

    Exhibit
      10.3

     

     

    SECURITY
      AGREEMENT

    

    This
      SECURITY AGREEMENT, dated as of September 21, 2006 (this “Agreement”),
      is
      entered into by and among ZONE MINING LIMITED, a Nevada corporation and ZM
      ACQUISITION CORP., a Delaware corporation (hereinafter collectively referred
      to
      as the “Debtor”)
      and
      the Holders of those certain 12% Senior Secured Convertible Debentures due
      September 21, 2007 (or such earlier contingent date as set forth therein) in
      the
      original aggregate principal amount of $1,000,000 (the “Debentures”),
      issued by Debtor to Trident Growth Fund, L.P., the Holder thereof (whether
      one
      or more, the “Secured
      Parties”)
      in
      connection with that certain Securities Purchase Agreement of even date herewith
      entered into by and between the Debtors and the Secured Parties (the
“Purchase
      Agreement”).
      

    

    W
      I T N E S S E T H:

    

     WHEREAS,
      pursuant to the Debentures, the Secured Parties have agreed to extend certain
      loans described above to the Debtor as evidenced by the Debentures;
      and

    

     WHEREAS,
      in
      order to induce the Secured Parties to extend the loans evidenced by the
      Debentures, the Debtor has agreed to execute and deliver to the Secured Parties
      this Agreement and to grant the Secured Parties a perfected first priority
      security interest in all property of the Debtor to secure the prompt payment,
      performance and discharge in full of all of the Debtor’s obligations under the
      Debentures.

    

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

    

    1.
      Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the meanings set forth in
      this
      Section 1. Terms used but not otherwise defined in this Agreement that are
      defined in Article 9 of the Uniform Commercial Code (the “UCC”)
      shall
      have the respective meanings given such terms in Article 9 of the UCC, and
      capitalized terms not otherwise defined herein shall have the meaning given
      them
      in the Purchase Agreement.

    

    (a)
      “Collateral”
means,
      as such terms are defined in Section 9.102 of the UCC: all “collateral,”
“accounts,” “chattel paper” (including, but not limited to tangible and
      electronic chattel paper), “commercial tort claims,” “commodity contracts,”
“commodity accounts,” “deposit accounts,” “documents,” “equipment,” “farm
      products,” “fixtures,” “general intangibles” (including “payment intangibles”
and “software”), “goods,” “health care insurance receivables,” “instruments,”
“inventory,” “investment property,” “letter of credit rights,” “mortgages,” and
“records” of the Debtors, whether presently owned or existing or hereafter
      acquired or coming into existence, and all additions and accessions thereto
      and
      all substitutions and replacements thereof, and all “proceeds” (cash or noncash)
      (as defined in Article 9 of the UCC) thereof, including, without limitation,
      all
      proceeds from the sale or transfer of the Collateral and of insurance covering
      the same. Without in any way limiting the generality of the foregoing, if not
      already included in the Collateral described above, the term “Collateral” shall
      also include, as defined in plain English: All machinery, equipment, computers,
      computer programs, motor vehicles, trucks, tanks, boats, ships, appliances,
      furniture, special and general tools, fixtures, test and quality control devices
      and other equipment of every kind and nature and wherever situated, contract
      rights, partnership interests, stock or other securities, licenses, distribution
      and other agreements, computer software (whether “off-the-shelf”, licensed from
      any third party or developed by Debtor) computer software development rights,
      leases, franchises, customer lists, quality control procedures, grants and
      rights, goodwill, trademarks, service marks, trade styles, trade names, patents,
      patent applications, copyrights, deposit and investment accounts and income
      tax
      refunds, insurance proceeds, and rights to refunds or indemnification whatsoever
      owing, together with all instruments, all documents of title representing any
      of
      the foregoing, all rights in any merchandising, goods, equipment, motor vehicles
      and trucks which any of the same may represent, and all right, title, security
      and guaranties with respect to same, including any right of stoppage in transit,
      business papers together with all documents of title and documents representing
      the same, all additions and accessions thereto, replacements therefor, all
      parts
      therefor, and all substitutes for any of the foregoing and all other items
      used
      and useful in connection with the Debtor’s businesses and all improvements
      thereto. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    (b)
      “Obligations”
means
      all of the Debtor’s obligations under the Transaction Documents, in each case,
      whether now or hereafter existing, voluntary or involuntary, direct or indirect,
      absolute or contingent, liquidated or unliquidated, whether or not jointly
      owed
      with others, and whether or not from time to time decreased or extinguished
      and
      later increased, created or incurred, and all or any portion of such obligations
      or liabilities that are paid, to the extent all or any part of such payment
      is
      avoided or recovered directly or indirectly from the Secured Parties as a
      preference, fraudulent transfer or otherwise as such obligations may be amended,
      supplemented, converted, extended or modified from time to time.

    

    2.
      Grant
      of Security Interest.
      As an
      inducement for the Secured Parties to extend the loan as evidenced by the
      Debentures and to secure the complete and timely payment, performance and
      discharge in full, as the case may be, of all of the Obligations, the Debtor
      hereby unconditionally and irrevocably pledges, grants and hypothecates to
      the
      Secured Parties a continuing security interest in and to, a lien upon and a
      right of set-off against all of its right, title and interest of whatsoever
      kind
      and nature in and to, the Collateral (the “Security
      Interest”).

    

    3.
      Representations,
      Warranties, Covenants and Agreements of the Debtor.
      The
      Debtor represents and warrants to, and covenants and agrees with, the Secured
      Parties as follows:

    

    (a)
      The
      Debtor has the requisite corporate power and authority to enter into this
      Agreement and otherwise to carry out its obligations hereunder. The execution,
      delivery and performance by the Debtor of this Agreement and the filings
      contemplated therein have been duly authorized by all necessary action on the
      part of the Debtor and no further action is required by the Debtor.

    

    (b)
      The
      Debtor represents and warrants that it has no place of business or offices
      where
      its books of account and records are kept (other than temporarily at the offices
      of its attorneys or accountants) or places where Collateral is stored or
      located, except as set forth on Schedule
      A
      attached
      hereto. The state of organization and the organization number for each Debtor
      is
      correctly shown on Schedule B
      attached
      hereto.

     

    
      
        
        

      

      
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    (c)
      The
      Debtor is the sole owner of the Collateral (except for non-exclusive licenses
      granted by the Debtor in the ordinary course of business), free and clear of
      any
      liens, security interests, encumbrances, rights or claims, and is fully
      authorized to grant the Security Interest in and to pledge the Collateral.
      There
      is not on file in any governmental or regulatory authority, agency or recording
      office an effective financing statement, security agreement, license or transfer
      or any notice of any of the foregoing (other than those that will be filed
      in
      favor of the Secured Parties pursuant to this Agreement) covering or affecting
      any of the Collateral. So long as this Agreement shall be in effect, Debtor
      shall not execute and shall not knowingly permit to be on file in any such
      office or agency any such financing statement or other document or instrument
      (except to the extent filed or recorded in favor of the Secured Parties pursuant
      to the terms of this Agreement).

    

    (d)
      No
      part of the Collateral has been judged invalid or unenforceable. No written
      claim has been received that any Collateral or Debtor’s use of any Collateral
      violates the rights of any third party. There has been no adverse decision
      to
      Debtor’s claim of ownership rights in or exclusive rights to use the Collateral
      in any jurisdiction or to Debtor’s right to keep and maintain such Collateral in
      full force and effect, and there is no Proceeding involving said rights pending
      or, to the best knowledge of the Debtor, threatened before any court, judicial
      body, administrative or regulatory agency, arbitrator or other governmental
      authority.

    

    (e)
      The
      Debtor shall at all times maintain its books of account and records relating
      to
      the Collateral at its principal place of business and its Collateral at the
      locations set forth on Schedule
      A
      attached
      hereto and may not relocate such books of account and records or tangible
      Collateral unless it delivers to the Secured Parties at least 30 days prior
      to
      such relocation (i) written notice of such relocation and the new location
      thereof (which must be within the United States) and (ii) if requested by the
      Secured Parties in writing, evidence that appropriate financing statements
      under
      the UCC and other necessary documents have been filed and recorded and other
      steps have been taken to perfect the Security Interest to create in favor of
      the
      Secured Parties a valid, perfected and continuing perfected first priority
      lien
      in the Collateral.

    

    (f)
      This
      Agreement creates in favor of the Secured Parties a valid security interest
      in
      the Collateral securing the payment and performance of the Obligations and,
      upon
      the filing by the Secured Parties with the Secretary of State of Nevada, in
      the
      case of Zone Mining Limited, and with the Secretary of State of Delaware, in
      the
      case of ZM Acquisition Corp, a properly completed UCC-1 financing statement
      describing the Collateral in accordance with the requirements of the UCC, a
      perfected first priority security interest in such Collateral. 

     

    
      
        
        

      

      
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    (g)
      The
      Debtor hereby authorizes the Secured Parties to file one or more financing
      statements under the UCC, with respect to the Security Interest with the proper
      filing and recording agencies in any jurisdiction deemed proper by
      them.

    

    (h)
      The
      execution, delivery and performance of this Agreement by the Debtor does not
      conflict with, or constitute a default (or an event that with notice or lapse
      of
      time or both would become a default) under, or give to others any rights of
      termination, amendment, acceleration or cancellation (with or without notice,
      lapse of time or both) of, any agreement, credit facility, debt or other
      instrument (evidencing Debtor’s debt or otherwise) or other understanding to
      which the Debtor is a party or by which any property or asset of the Debtor
      is
      bound or affected. No consent (including, without limitation, from stockholders
      or creditors of the Debtor) is required for the Debtor to enter into and perform
      its obligations hereunder.

    

    (i)
      The
      Debtor shall at all times maintain the liens and Security Interest provided
      for
      hereunder as valid and perfected first priority liens and security interests
      in
      the Collateral in favor of the Secured Parties until this Agreement and the
      Security Interest hereunder shall be terminated pursuant to Section 11 hereof.
      The Debtor hereby agrees to defend the same against any and all persons. The
      Debtor shall safeguard and protect all Collateral for the account of the Secured
      Parties. At the request of the Secured Parties, the Debtor will sign and deliver
      to the Secured Parties at any time or from time to time one or more financing
      statements pursuant to the UCC in form reasonably satisfactory to the Secured
      Parties and will pay the cost of filing the same in all public offices wherever
      filing is, or is deemed by the Secured Parties to be, necessary or desirable
      to
      effect the rights and obligations provided for herein. Without limiting the
      generality of the foregoing, the Debtor shall pay all fees, taxes and other
      amounts necessary to maintain the Collateral and the Security Interest
      hereunder, and the Debtor shall obtain and furnish to the Secured Parties from
      time to time, upon demand, such releases and/or subordinations of claims and
      liens which may be required to maintain the priority of the Security Interest
      hereunder.

    

    (j)
      The
      Debtor will not transfer, pledge, hypothecate, encumber, license (except for
      non-exclusive licenses granted by the Debtor in its ordinary course of business
      and sales of “inventory”), sell or otherwise dispose of any of the Collateral
      not in the ordinary course of its business without the prior written consent
      of
      the Secured Parties.

    

    (k) The
      Debtor shall keep and preserve its “equipment,” “inventory” and other tangible
      Collateral in good condition, repair and order and shall not operate or locate
      any such Collateral (or cause to be operated or located) in any area excluded
      from insurance coverage.

    

    (l)
      The
      Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the
      Secured Parties promptly, in sufficient detail, of any substantial change in
      the
      Collateral, and of the occurrence of any event which would have a material
      adverse effect on the value of the Collateral or on the Secured Parties’
security interest therein.

     

    
      
        
        

      

      
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    (m)
      The
      Debtor shall promptly execute and deliver to the Secured Parties such further
      deeds, mortgages, assignments, security agreements, financing statements or
      other instruments, documents, certificates and assurances and take such further
      action as the Secured Parties may from time to time request and may in its
      sole
      discretion deem necessary to perfect, protect or enforce its security interest
      in the Collateral including, without limitation, if applicable, the execution
      and delivery of a separate security agreement with respect to the Debtor’s
      intellectual property (“Intellectual
      Property Security Agreement”)
      in
      which the Secured Parties have been granted a security interest hereunder,
      substantially in a form acceptable to the Secured Parties, which Intellectual
      Property Security Agreement, other than as stated therein, shall be subject
      to
      all of the terms and conditions hereof.

    

    (n)
      The
      Debtor shall permit the Secured Parties and their respective representatives
      and
      agents to inspect the Collateral at any time, and to make copies of records
      pertaining to the Collateral as may be requested by the Secured Parties from
      time to time.

    

    (o)
      The
      Debtor shall take all steps reasonably necessary to diligently pursue and seek
      to preserve, enforce and collect any rights, claims, causes of action and
      accounts receivable in respect of the Collateral.

    

    (p)
      The
      Debtor shall promptly notify the Secured Parties in sufficient detail upon
      becoming aware of any attachment, garnishment, execution or other legal process
      levied against any Collateral and of any other information received by the
      Debtor that may materially affect the value of the Collateral, the Security
      Interest or the rights and remedies of the Secured Parties
      hereunder.

    

    (q)
      All
      information heretofore, herein or hereafter supplied to the Secured Parties
      by
      or on behalf of the Debtor with respect to the Collateral is accurate and
      complete in all material respects as of the date furnished.

    

    (r)
      The
      Debtor shall at all times preserve and keep in full force and effect its valid
      existence and good standing and any rights and franchises material to its
      business.

    

    (s)
      The
      Debtor will not change its name, corporate structure, or identity, or add any
      new fictitious name unless it provides at least 30 days prior written notice
      to
      the Secured Parties of such change and, at the time of such written
      notification, Debtor shall provide any financing statements or fixture filings
      necessary to perfect and continue perfected the perfected first priority
      Security Interest granted and evidenced by this Agreement.

    

    (t) The
      Debtor may not consign any of its “inventory” or sell any of its “inventory” on
      bill and hold, sale or return, sale on approval, or other conditional terms
      of
      sale without the consent of the Secured Parties which shall not be unreasonably
      withheld.

     

    
      
        
        

      

      
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    (u)
      The
      Debtor may not relocate its chief executive office to a new location without
      providing 30 days prior written notification thereof to the Secured Parties
      and
      so long as, at the time of such written notification, the Debtor provides any
      financing statements or fixture filings necessary to perfect and continue the
      Security Interest granted and evidenced by this Agreement.

    

    4.
      Defaults.
      The
      following events shall be “Events
      of Default”:

    

    (a)
      The
      occurrence of an Event of Default (as defined in the Debentures) under the
      Debentures;

    

    (b)
      Any
      representation or warranty of the Debtor in this Agreement shall prove to have
      been incorrect in any material respect when made;

    

    (c)
      The
      failure by the Debtor to observe or perform any of its obligations hereunder
      for
      five (5) days after delivery to Debtor of notice of such failure by or on behalf
      of a Secured Party; or

    

    (d)
      If
      any provision of this Agreement shall at any time for any reason be declared
      to
      be null and void, or the validity or enforceability thereof shall be contested
      by the Debtor, or a Proceeding shall be commenced by the Debtor, or by any
      governmental authority having jurisdiction over the Debtor, seeking to establish
      the invalidity or unenforceability thereof, or the Debtor shall deny that it
      has
      any liability or obligation purported to be created under this
      Agreement.

    

    5.
      Duty
      To Hold In Trust.
      Upon
      the occurrence of any Event of Default and at any time thereafter, the Debtor
      shall, upon receipt of any revenue, income or other sums subject to the Security
      Interest, whether payable pursuant to the Debentures or otherwise, or of any
      check, draft, note, trade acceptance or other instrument evidencing an
      obligation to pay any such sum, hold the same in trust for the Secured Parties
      and shall forthwith endorse and transfer any such sums or instruments, or both,
      to the Secured Parties for application to the satisfaction of the
      Obligations.

    

    6.
      Rights
      and Remedies Upon Default.
      Upon
      the occurrence of any Event of Default and at any time thereafter, the Secured
      Parties shall have the right to exercise all of the remedies conferred hereunder
      and under the Debentures, and the Secured Parties shall have all the rights
      and
      remedies of a secured party under the UCC. Without limitation, the Secured
      Parties shall have the following rights and powers:

    

    (a)
      The
      Secured Parties shall have the right to take possession of the Collateral and,
      for that purpose, enter, with the aid and assistance of any person, any premises
      where the Collateral, or any part thereof, is or may be placed and remove the
      same, and Debtor shall assemble the Collateral and make it available to the
      Secured Parties at places which the Secured Parties shall reasonably select,
      whether at the Debtor’s premises or elsewhere, and make available to the Secured
      Parties, without rent, all of the Debtor’s respective premises and facilities
      for the purpose of the Secured Parties taking possession of, removing or putting
      the Collateral in saleable or disposable form.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (b)
      The
      Secured Parties shall have the right to operate the business of the Debtor
      using
      the Collateral and shall have the right to assign, sell, lease or otherwise
      dispose of and deliver all or any part of the Collateral, at public or private
      sale or otherwise, either with or without special conditions or stipulations,
      for cash or on credit or for future delivery, in such parcel or parcels and
      at
      such time or times and at such place or places, and upon such terms and
      conditions as the Secured Parties may deem commercially reasonable, all without
      (except as shall be required by applicable statute and cannot be waived)
      advertisement or demand upon or notice to the Debtor or right of redemption
      of a
      Debtor, which are hereby expressly waived. Upon each such sale, lease,
      assignment or other transfer of Collateral, the Secured Parties may, unless
      prohibited by applicable law which cannot be waived, purchase all or any part
      of
      the Collateral being sold, free from and discharged of all trusts, claims,
      right
      of redemption and equities of the Debtor, which are hereby waived and
      released.

    

    7.
      Applications
      of Proceeds.
      The
      proceeds of any such sale, lease or other disposition of the Collateral
      hereunder shall be applied first, to the expenses of retaking, holding, storing,
      processing and preparing for sale, selling, and the like (including, without
      limitation, any taxes, fees and other costs incurred in connection therewith)
      of
      the Collateral, to the reasonable attorneys’ fees and expenses incurred by the
      Secured Parties in enforcing its rights hereunder and in connection with
      collecting, storing and disposing of the Collateral, and then to satisfaction
      of
      the Obligations to the Secured Parties based on the then outstanding principal
      amount of the Debentures, and to the payment of any other amounts required
      by
      applicable law, after which the Secured Parties shall pay to the Debtor any
      surplus proceeds. If, upon the sale, license or other disposition of the
      Collateral, the proceeds thereof are insufficient to pay all amounts to which
      the Secured Parties are legally entitled, the Debtor will be liable for the
      deficiency, together with interest thereon, at the rate of 18% per annum or
      the
      lesser amount permitted by applicable law (the “Default
      Rate”),
      and
      the reasonable fees of any attorneys employed by the Secured Parties to collect
      such deficiency. To the extent permitted by applicable law, the Debtor waives
      all claims, damages and demands against the Secured Parties arising out of
      the
      repossession, removal, retention or sale of the Collateral, unless due to the
      gross negligence or willful misconduct of the Secured Parties.

    

    8.
      Costs
      and Expenses.
      The
      Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses
      incurred in connection with any filing required hereunder, including without
      limitation, any financing statements pursuant to the UCC, continuation
      statements, partial releases and/or termination statements related thereto
      or
      any expenses of any searches reasonably required by the Secured Parties. The
      Debtor shall also pay all other claims and charges which in the reasonable
      opinion of the Secured Parties might prejudice, imperil or otherwise affect
      the
      Collateral or the Security Interest therein. The Debtor will also, upon demand,
      pay to the Secured Parties the amount of any and all reasonable expenses,
      including the reasonable fees and expenses of its counsel and of any experts
      and
      agents, which the Secured Parties may incur in connection with (i) the
      enforcement of this Agreement, (ii) the custody or preservation of, or the
      sale
      of, collection from, or other realization upon, any of the Collateral, or (iii)
      the exercise or enforcement of any of the rights of the Secured Parties under
      the Debentures. Until so paid, any fees payable hereunder shall be added to
      the
      principal amount of the Debentures and shall bear interest at the Default
      Rate.

     

    
      
        
        

      

      
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    9.
      Responsibility
      for Collateral.
      The
      Debtor assumes all liabilities and responsibility in connection with all
      Collateral, and the Obligations shall in no way be affected or diminished by
      reason of the loss, destruction, damage or theft of any of the Collateral or
      its
      unavailability for any reason.

    

    10.
      Security
      Interest Absolute.
      All
      rights of the Secured Parties and all Obligations of the Debtor hereunder,
      shall
      be absolute and unconditional, irrespective of: (a) any lack of validity or
      enforceability of this Agreement, the Debentures or any agreement entered into
      in connection with the foregoing, or any portion hereof or thereof; (b) any
      change in the time, manner or place of payment or performance of, or in any
      other term of, all or any of the Obligations, or any other amendment or waiver
      of or any consent to any departure from the Debentures or any other agreement
      entered into in connection with the foregoing; (c) any exchange, release or
      nonperfection of any of the Collateral, or any release or amendment or waiver
      of
      or consent to departure from any other collateral for, or any guaranty, or
      any
      other security, for all or any of the Obligations; (d) any action by the Secured
      Parties to obtain, adjust, settle and cancel in its sole discretion any
      insurance claims or matters made or arising in connection with the Collateral;
      or (e) any other circumstance which might otherwise constitute any legal or
      equitable defense available to a Debtor, or a discharge of all or any part
      of
      the Security Interest granted hereby. Until the Obligations shall have been
      paid
      and performed in full, the rights of the Secured Parties shall continue even
      if
      the Obligations are barred for any reason, including, without limitation, the
      running of the statute of limitations or bankruptcy. The Debtor expressly waives
      presentment, protest, notice of protest, demand, notice of nonpayment and demand
      for performance. In the event that at any time any transfer of any Collateral
      or
      any payment received by the Secured Parties hereunder shall be deemed by final
      order of a court of competent jurisdiction to have been a voidable preference
      or
      fraudulent conveyance under the bankruptcy or insolvency laws of the United
      States, or shall be deemed to be otherwise due to any party other than the
      Secured Parties, then, in any such event, the Debtor’s obligations hereunder
      shall survive cancellation of this Agreement, and shall not be discharged or
      satisfied by any prior payment thereof and/or cancellation of this Agreement,
      but shall remain a valid and binding obligation enforceable in accordance with
      the terms and provisions hereof. The Debtor waives all right to require the
      Secured Parties to proceed against any other person or to apply any Collateral
      which the Secured Parties may hold at any time, or to marshal assets, or to
      pursue any other remedy. The Debtor waives any defense arising by reason of
      the
      application of the statute of limitations to any obligation secured
      hereby.

    

    11.
      Term
      of Agreement.
      This
      Agreement and the Security Interest shall terminate on the date on which all
      payments under the Debentures have been made in full or have been satisfied
      and
      all other costs, expenses, fees or other obligations of Debtor under the
      Debenture and this Agreement have been paid or discharged. Upon such
      termination, the Secured Parties, at the request and at the expense of the
      Debtor, will join in executing any termination statement with respect to any
      financing statement executed and filed pursuant to this Agreement.

     

    12.
Power
      of Attorney; Further Assurances.

     

    (a)
      The
      Debtor authorizes the Secured Parties, and do hereby make, constitute and
      appoint the Secured Parties and its respective officers, agents, successors
      or
      assigns with full power of substitution, as the Debtor’s true and lawful
      attorney-in-fact, with power, in the name of the Secured Parties or the Debtor,
      to, after the occurrence and during the continuance of an Event of Default,
      (i)
      endorse any note, checks, drafts, money orders or other instruments of payment
      (including payments payable under or in respect of any policy of insurance)
      in
      respect of the Collateral that may come into possession of the Secured Parties;
      (ii) to sign and endorse any financing statement pursuant to the UCC or any
      invoice, freight or express bill, bill of lading, storage or warehouse receipts,
      drafts against debtors, assignments, verifications and notices in connection
      with accounts, and other documents relating to the Collateral; (iii) to pay
      or
      discharge taxes, liens, security interests or other encumbrances at any time
      levied or placed on or threatened against the Collateral; (iv) to demand,
      collect, receipt for, compromise, settle and sue for monies due in respect
      of
      the Collateral; and (v) generally, to do, at the option of the Secured Parties,
      and at the expense of the Debtor, at any time, or from time to time, all acts
      and things which the Secured Parties deem necessary to protect, preserve and
      realize upon the Collateral and the Security Interest granted therein in order
      to effect the intent of this Agreement and the Debentures all as fully and
      effectually as the Debtor might or could do; and the Debtor hereby ratifies
      all
      that said attorney shall lawfully do or cause to be done by virtue hereof.
      This
      power of attorney is coupled with an interest and shall be irrevocable for
      the
      term of this Agreement and thereafter as long as any of the Obligations shall
      be
      outstanding.

    

    (b)
      On a
      continuing basis, the Debtor will make, execute, acknowledge, deliver, file
      and
      record, as the case may be, with the proper filing and recording agencies in
      any
      jurisdiction, including, without limitation, the jurisdictions indicated on
      Schedule
      B
      attached
      hereto, all such instruments, and take all such action as may reasonably be
      deemed necessary or advisable, or as reasonably requested by the Secured
      Parties, to perfect the Security Interest granted hereunder and otherwise to
      carry out the intent and purposes of this Agreement, or for assuring and
      confirming to the Secured Parties the grant or perfection of a perfected
      security interest in all the Collateral under the UCC.

    

    (c)
      The
      Debtor hereby irrevocably appoints the Secured Parties as the Debtor’s
      attorney-in-fact, with full authority in the place and instead of the Debtor
      and
      in the name of the Debtor, from time to time in the Secured Parties’ discretion,
      to take any action and to execute any instrument which the Secured Parties
      may
      deem necessary or advisable to accomplish the purposes of this Agreement,
      including the filing, in its sole discretion, of one or more financing or
      continuation statements and amendments thereto, relative to any of the
      Collateral without the signature of the Debtor where permitted by
      law.

    

    13.
      Notices.
      All
      notices, requests, demands and other communications hereunder shall be subject
      to the notice provision of the Purchase Agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

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

    

    15.
      Best
      Efforts for Licensed Collateral. Notwithstanding
      any other provision contained herein or any of the Transaction Documents, upon
      the occurrence of an Event of Default, the Debtor hereby agrees that with
      respect to any part of the Collateral which may require the consent of any
      third
      party or third parties in order for Debtor to transfer and/or convey its
      interest in and to such Collateral to the Secured Parties, as may be required
      in
      accordance herewith, Debtor agrees to and shall use its best efforts to obtain
      such consents or approvals in as expedient a manner as possible.

    

    16. Miscellaneous.

    

    (a)
      No
      course of dealing between the Debtor and the Secured Parties, nor any failure
      to
      exercise, nor any delay in exercising, on the part of the Secured Parties,
      any
      right, power or privilege hereunder or under the Debentures shall operate as
      a
      waiver thereof; nor shall any single or partial exercise of any right, power
      or
      privilege hereunder or thereunder preclude any other or further exercise thereof
      or the exercise of any other right, power or privilege.

    

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

    

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

    

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

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    (e)
      No
      waiver of any breach or default or any right under this Agreement shall be
      considered valid unless in writing and signed by the party giving such waiver,
      and no such waiver shall be deemed a waiver of any subsequent breach or default
      or right, whether of the same or similar nature or otherwise.

     

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

       

    

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

    

    (h)
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of Texas, without regard to the principles
      of conflicts of law thereof. Each party agrees that all Proceedings concerning
      the interpretations, enforcement and defense of the transactions contemplated
      by
      this Agreement and the Debentures (whether brought against a party hereto or
      its
      respective affiliates, directors, officers, shareholders, employees or agents)
      shall be commenced exclusively in the state and federal courts sitting in
      Dallas, Texas. Each party hereto hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in Dallas, Texas for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any Proceeding, any claim that it is not
      personally subject to the jurisdiction of any such court, or that such
      Proceeding is improper. Each party hereto hereby irrevocably waives personal
      service of process and consents to process being served in any such Proceeding
      by mailing a copy thereof via registered or certified mail or overnight delivery
      (with evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. Each party hereto hereby irrevocably waives, to the fullest
      extent permitted by applicable law, any and all right to trial by jury in any
      legal Proceeding arising out of or relating to this Agreement or the
      transactions contemplated hereby. If either party shall commence a Proceeding
      to
      enforce any provisions of this Agreement, then the prevailing party in such
      Proceeding shall be reimbursed by the other party for its reasonable attorneys
      fees and other costs and expenses incurred with the investigation, preparation
      and prosecution of such Proceeding.

    

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

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Exhibit
      10.3

    

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

      

       

      
        	
                DEBTOR

                 

                ZONE
                  MINING LIMITED

                 

                By:
                   /s/ Stephen P. Harrington                        

                Name:
                  Stephen P. Harrington

                Title:
                  President

                 

                 

                 

                ZM
                  ACQUISTION CORP.

                 

                By:
                  /s/ Stephen P. Harrington                        

                Name:
                  Stephen P. Harrington

                Title:
                  President 

              	
                 

                 

                Address
                  for Notice and Delivery:

                 

                111
                  Presidential Blvd.

                Suite
                  165 

                Bala
                  Cynwyd, PA

                Telephone:
                  (610) 771-0680

                Facsimile:
                  (___) ___-____

                Attn:
                  Stephen P. Harrington

              

      

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    SECURED
      PARTIES’ SIGNATURE PAGE

    

    

    SECURED
      PARTIES:      

    

    

    TRIDENT
      GROWTH FUND, L.P. 

    

    By:
      TRIDENT MANAGEMENT, LLC, its

    GENERAL
      PARTNER

    

    

    

    By:
      /s/ Scotty Cook                

    Name: Scotty
      Cook                       

    Title:
      Authorized Member

    

    Address
      for Notice and Delivery

    

    700
      Gemini

    Houston,
      TX 77058

    Telephone:
      (281) 488-8484

    Facsimile:
      (281) 488-5353

    Attn:
      Larry St. Martin

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Exhibit
      10.3

     

     

    SCHEDULE
      A

    

    Principal
      Place of Business of Zone Mining Limited and ZM Acquisition
      Corp.:

    

    111
      Presidential Blvd.

    Suite
      165

    Bala
      Cynwyd, PA

    

    

    Locations
      Where Collateral is Located or Stored:

    

    111
      Presidential Blvd.

    Suite
      165

    Bala
      Cynwyd, PA

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
        10.3

    SCHEDULE
      B

    

    Zone
      Mining Limited: 

    

    State
      of
      Organization: Nevada

    Organization
      Number: E001362005-2

    

    

    ZM
      Acquisition Corp.:

    

    State
      of
      Organization: Delaware

    Organization
      Number: 4216137

    

    14Driveitaway Security Agreement

    
      

      

    

    Exhibit
      10.4

    
 

    SECURITY
      AGREEMENT

    

    This
      SECURITY AGREEMENT, dated as of September 21, 2006 (this “Agreement”),
      is
      entered into by and among DRIVEITAWAY, INC., a Delaware corporation (hereinafter
      collectively referred to as the “Pledgor”)
      and
      the Holders of those certain 12% Senior Secured Convertible Debentures due
      September 21, 2007 (or such earlier contingent date as set forth therein) in
      the
      original aggregate principal amount of $1,000,000 (the “Debentures”),
      issued by Zone Mining Limited, a Nevada corporation (whether one or more, the
      “Debtor”), to Trident Growth Fund, L.P., the Holder thereof (whether one or
      more, the “Secured
      Parties”)
      in
      connection with that certain Securities Purchase Agreement of even date herewith
      entered into by and between the Debtor and the Secured Parties (the
“Purchase
      Agreement”).
      

    

    W
      I T N E S S E T H:

    

     WHEREAS,
      pursuant to the Debentures, the Secured Parties have agreed to extend certain
      loans described above to the Debtor as evidenced by the Debentures;
      and

    

    WHEREAS,
      the
      Pledgor has executed a merger agreement with the Debtor providing for the merger
      of Pledgor into and with ZM Acquisition Corp., and Pledgor will receive loans
      and other financial assistance from the Debtor and will directly benefit in
      a
      material way from the loans evidenced by the Debentures; and

    

     WHEREAS,
      in
      order to induce the Secured Parties to extend the loans evidenced by the
      Debentures, the Pledgor has agreed to execute and deliver to the Secured Parties
      this Agreement and to grant the Secured Parties a perfected first priority
      security interest in all property of the Pledgor to secure the prompt payment,
      performance and discharge in full of all of the Debtor’s obligations under the
      Debentures.

    

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

    

    1.
      Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the meanings set forth in
      this
      Section 1. Terms used but not otherwise defined in this Agreement that are
      defined in Article 9 of the Uniform Commercial Code (the “UCC”)
      shall
      have the respective meanings given such terms in Article 9 of the UCC, and
      capitalized terms not otherwise defined herein shall have the meaning given
      them
      in the Purchase Agreement.

    

    (a)
      “Collateral”
means,
      as such terms are defined in Section 9.102 of the UCC: all “collateral,”
“accounts,” “chattel paper” (including, but not limited to tangible and
      electronic chattel paper), “commercial tort claims,” “commodity contracts,”
“commodity accounts,” “deposit accounts,” “documents,” “equipment,” “farm
      products,” “fixtures,” “general intangibles” (including “payment intangibles”
and “software”), “goods,” “health care insurance receivables,” “instruments,”
“inventory,” “investment property,” “letter of credit rights,” “mortgages,” and
“records” of the Pledgor, whether presently owned or existing or hereafter
      acquired or coming into existence, and all additions and accessions thereto
      and
      all substitutions and replacements thereof, and all “proceeds” (cash or noncash)
      (as defined in Article 9 of the UCC) thereof, including, without limitation,
      all
      proceeds from the sale or transfer of the Collateral and of insurance covering
      the same. Without in any way limiting the generality of the foregoing, if not
      already included in the Collateral described above, the term “Collateral” shall
      also include, as defined in plain English: All machinery, equipment, computers,
      computer programs, motor vehicles, trucks, tanks, boats, ships, appliances,
      furniture, special and general tools, fixtures, test and quality control devices
      and other equipment of every kind and nature and wherever situated, contract
      rights, partnership interests, stock or other securities, licenses, distribution
      and other agreements, computer software (whether “off-the-shelf”, licensed from
      any third party or developed by Pledgor) computer software development rights,
      leases, franchises, customer lists, quality control procedures, grants and
      rights, goodwill, trademarks, service marks, trade styles, trade names, patents,
      patent applications, copyrights, deposit and investment accounts and income
      tax
      refunds, insurance proceeds, and rights to refunds or indemnification whatsoever
      owing, together with all instruments, all documents of title representing any
      of
      the foregoing, all rights in any merchandising, goods, equipment, motor vehicles
      and trucks which any of the same may represent, and all right, title, security
      and guaranties with respect to same, including any right of stoppage in transit,
      business papers together with all documents of title and documents representing
      the same, all additions and accessions thereto, replacements therefor, all
      parts
      therefor, and all substitutes for any of the foregoing and all other items
      used
      and useful in connection with the Pledgor’s businesses and all improvements
      thereto. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    (b)
      “Obligations”
means
      all of the Debtor’s obligations under the Transaction Documents, in each case,
      whether now or hereafter existing, voluntary or involuntary, direct or indirect,
      absolute or contingent, liquidated or unliquidated, whether or not jointly
      owed
      with others, and whether or not from time to time decreased or extinguished
      and
      later increased, created or incurred, and all or any portion of such obligations
      or liabilities that are paid, to the extent all or any part of such payment
      is
      avoided or recovered directly or indirectly from the Secured Parties as a
      preference, fraudulent transfer or otherwise as such obligations may be amended,
      supplemented, converted, extended or modified from time to time.

    

    2.
      Grant
      of Security Interest.
      As an
      inducement for the Secured Parties to extend the loan as evidenced by the
      Debentures and to secure the complete and timely payment, performance and
      discharge in full, as the case may be, of all of the Obligations, the Pledgor
      hereby unconditionally and irrevocably pledges, grants and hypothecates to
      the
      Secured Parties a continuing security interest in and to, a lien upon and a
      right of set-off against all of its right, title and interest of whatsoever
      kind
      and nature in and to, the Collateral (the “Security
      Interest”).

    

    3.
      Representations,
      Warranties, Covenants and Agreements of the Pledgor.
      The
      Pledgor represents and warrants to, and covenants and agrees with, the Secured
      Parties as follows:

    

    (a)
      The
      Pledgor has the requisite corporate power and authority to enter into this
      Agreement and otherwise to carry out its obligations hereunder. The execution,
      delivery and performance by the Pledgor of this Agreement and the filings
      contemplated therein have been duly authorized by all necessary action on the
      part of the Pledgor and no further action is required by the
      Pledgor.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    (b)
      The
      Pledgor represents and warrants that it has no place of business or offices
      where its books of account and records are kept (other than temporarily at
      the
      offices of its attorneys or accountants) or places where Collateral is stored
      or
      located, except as set forth on Schedule
      A
      attached
      hereto. The state of organization and the organization number for the Pledgor
      is
      correctly shown on Schedule B
      attached
      hereto.

    

    (c)
      The
      Pledgor is the sole owner of the Collateral (except for non-exclusive licenses
      granted by the Pledgor in the ordinary course of business), free and clear
      of
      any liens, security interests, encumbrances, rights or claims, and is fully
      authorized to grant the Security Interest in and to pledge the Collateral.
      There
      is not on file in any governmental or regulatory authority, agency or recording
      office an effective financing statement, security agreement, license or transfer
      or any notice of any of the foregoing (other than those that will be filed
      in
      favor of the Secured Parties pursuant to this Agreement) covering or affecting
      any of the Collateral. So long as this Agreement shall be in effect, Pledgor
      shall not execute and shall not knowingly permit to be on file in any such
      office or agency any such financing statement or other document or instrument
      (except to the extent filed or recorded in favor of the Secured Parties pursuant
      to the terms of this Agreement).

    

    (d)
      No
      part of the Collateral has been judged invalid or unenforceable. No written
      claim has been received that any Collateral or Pledgor’s use of any Collateral
      violates the rights of any third party. There has been no adverse decision
      to
      Pledgor’s claim of ownership rights in or exclusive rights to use the Collateral
      in any jurisdiction or to Pledgor’s right to keep and maintain such Collateral
      in full force and effect, and there is no Proceeding involving said rights
      pending or, to the best knowledge of the Pledgor, threatened before any court,
      judicial body, administrative or regulatory agency, arbitrator or other
      governmental authority.

    

    (e)
      The
      Pledgor shall at all times maintain its books of account and records relating
      to
      the Collateral at its principal place of business and its Collateral at the
      locations set forth on Schedule
      A
      attached
      hereto and may not relocate such books of account and records or tangible
      Collateral unless it delivers to the Secured Parties at least 30 days prior
      to
      such relocation (i) written notice of such relocation and the new location
      thereof (which must be within the United States) and (ii) if requested by the
      Secured Parties in writing, evidence that appropriate financing statements
      under
      the UCC and other necessary documents have been filed and recorded and other
      steps have been taken to perfect the Security Interest to create in favor of
      the
      Secured Parties a valid, perfected and continuing perfected first priority
      lien
      in the Collateral.

    

    (f)
      This
      Agreement creates in favor of the Secured Parties a valid security interest
      in
      the Collateral securing the payment and performance of the Obligations and,
      upon
      the filing by the Secured Parties with the Secretary of State of Delaware a
      properly completed UCC-1 financing statement describing the Collateral in
      accordance with the requirements of the UCC, a perfected first priority security
      interest in such Collateral. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (g)
      The
      Pledgor hereby authorizes the Secured Parties to file one or more financing
      statements under the UCC, with respect to the Security Interest with the proper
      filing and recording agencies in any jurisdiction deemed proper by
      them.

    

    (h)
      The
      execution, delivery and performance of this Agreement by the Pledgor does not
      conflict with, or constitute a default (or an event that with notice or lapse
      of
      time or both would become a default) under, or give to others any rights of
      termination, amendment, acceleration or cancellation (with or without notice,
      lapse of time or both) of, any agreement, credit facility, debt or other
      instrument (evidencing Pledgor’s debt or otherwise) or other understanding to
      which the Pledgor is a party or by which any property or asset of the Pledgor
      is
      bound or affected. No consent (including, without limitation, from stockholders
      or creditors of the Pledgor) is required for the Pledgor to enter into and
      perform its obligations hereunder.

    

    (i)
      The
      Pledgor shall at all times maintain the liens and Security Interest provided
      for
      hereunder as valid and perfected first priority liens and security interests
      in
      the Collateral in favor of the Secured Parties until this Agreement and the
      Security Interest hereunder shall be terminated pursuant to Section 11 hereof.
      The Pledgor hereby agrees to defend the same against any and all persons. The
      Pledgor shall safeguard and protect all Collateral for the account of the
      Secured Parties. At the request of the Secured Parties, the Pledgor will sign
      and deliver to the Secured Parties at any time or from time to time one or
      more
      financing statements pursuant to the UCC in form reasonably satisfactory to
      the
      Secured Parties and will pay the cost of filing the same in all public offices
      wherever filing is, or is deemed by the Secured Parties to be, necessary or
      desirable to effect the rights and obligations provided for herein. Without
      limiting the generality of the foregoing, the Pledgor shall pay all fees, taxes
      and other amounts necessary to maintain the Collateral and the Security Interest
      hereunder, and the Pledgor shall obtain and furnish to the Secured Parties
      from
      time to time, upon demand, such releases and/or subordinations of claims and
      liens which may be required to maintain the priority of the Security Interest
      hereunder.

    

    (j)
      The
      Pledgor will not transfer, pledge, hypothecate, encumber, license (except for
      non-exclusive licenses granted by the Pledgor in its ordinary course of business
      and sales of “inventory”), sell or otherwise dispose of any of the Collateral
      not in the ordinary course of its business without the prior written consent
      of
      the Secured Parties.

    

    (k) The
      Pledgor shall keep and preserve its “equipment,” “inventory” and other tangible
      Collateral in good condition, repair and order and shall not operate or locate
      any such Collateral (or cause to be operated or located) in any area excluded
      from insurance coverage.

    

    (l)
      The
      Pledgor shall, within ten (10) days of obtaining knowledge thereof, advise
      the
      Secured Parties promptly, in sufficient detail, of any substantial change in
      the
      Collateral, and of the occurrence of any event which would have a material
      adverse effect on the value of the Collateral or on the Secured Parties’
security interest therein.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (m)
      The
      Pledgor shall promptly execute and deliver to the Secured Parties such further
      deeds, mortgages, assignments, security agreements, financing statements or
      other instruments, documents, certificates and assurances and take such further
      action as the Secured Parties may from time to time request and may in its
      sole
      discretion deem necessary to perfect, protect or enforce its security interest
      in the Collateral including, without limitation, if applicable, the execution
      and delivery of a separate security agreement with respect to the Pledgor’s
      intellectual property (“Intellectual
      Property Security Agreement”)
      in
      which the Secured Parties have been granted a security interest hereunder,
      substantially in a form acceptable to the Secured Parties, which Intellectual
      Property Security Agreement, other than as stated therein, shall be subject
      to
      all of the terms and conditions hereof.

    

    (n)
      The
      Pledgor shall permit the Secured Parties and their respective representatives
      and agents to inspect the Collateral at any time, and to make copies of records
      pertaining to the Collateral as may be requested by the Secured Parties from
      time to time.

    

    (o)
      The
      Pledgor shall take all steps reasonably necessary to diligently pursue and
      seek
      to preserve, enforce and collect any rights, claims, causes of action and
      accounts receivable in respect of the Collateral.

    

    (p)
      The
      Pledgor shall promptly notify the Secured Parties in sufficient detail upon
      becoming aware of any attachment, garnishment, execution or other legal process
      levied against any Collateral and of any other information received by the
      Pledgor that may materially affect the value of the Collateral, the Security
      Interest or the rights and remedies of the Secured Parties
      hereunder.

    

    (q)
      All
      information heretofore, herein or hereafter supplied to the Secured Parties
      by
      or on behalf of the Pledgor with respect to the Collateral is accurate and
      complete in all material respects as of the date furnished.

    

    (r)
      The
      Pledgor shall at all times preserve and keep in full force and effect its valid
      existence and good standing and any rights and franchises material to its
      business.

    

    (s)
      The
      Pledgor will not change its name, corporate structure, or identity, or add
      any
      new fictitious name unless it provides at least 30 days prior written notice
      to
      the Secured Parties of such change and, at the time of such written
      notification, Pledgor shall provide any financing statements or fixture filings
      necessary to perfect and continue perfected the perfected first priority
      Security Interest granted and evidenced by this Agreement.

    

    (t) The
      Pledgor may not consign any of its “inventory” or sell any of its “inventory” on
      bill and hold, sale or return, sale on approval, or other conditional terms
      of
      sale without the consent of the Secured Parties which shall not be unreasonably
      withheld.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (u)
      The
      Pledgor may not relocate its chief executive office to a new location without
      providing 30 days prior written notification thereof to the Secured Parties
      and
      so long as, at the time of such written notification, the Pledgor provides
      any
      financing statements or fixture filings necessary to perfect and continue the
      Security Interest granted and evidenced by this Agreement.

    

    4.
      Defaults.
      The
      following events shall be “Events
      of Default”:

    

    (a)
      The
      occurrence of an Event of Default (as defined in the Debentures) under the
      Debentures;

    

    (b)
      Any
      representation or warranty of the Pledgor in this Agreement shall prove to
      have
      been incorrect in any material respect when made;

    

    (c)
      The
      failure by the Pledgor to observe or perform any of its obligations hereunder
      for five (5) days after delivery to Pledgor of notice of such failure by or
      on
      behalf of a Secured Party; or

    

    (d)
      If
      any provision of this Agreement shall at any time for any reason be declared
      to
      be null and void, or the validity or enforceability thereof shall be contested
      by the Pledgor, or a Proceeding shall be commenced by the Pledgor, or by any
      governmental authority having jurisdiction over the Pledgor, seeking to
      establish the invalidity or unenforceability thereof, or the Pledgor shall
      deny
      that it has any liability or obligation purported to be created under this
      Agreement.

    

    5.
      Duty
      To Hold In Trust.
      Upon
      the occurrence of any Event of Default and at any time thereafter, the Pledgor
      shall, upon receipt of any revenue, income or other sums subject to the Security
      Interest, whether payable pursuant to the Debentures or otherwise, or of any
      check, draft, note, trade acceptance or other instrument evidencing an
      obligation to pay any such sum, hold the same in trust for the Secured Parties
      and shall forthwith endorse and transfer any such sums or instruments, or both,
      to the Secured Parties for application to the satisfaction of the
      Obligations.

    

    6.
      Rights
      and Remedies Upon Default.
      Upon
      the occurrence of any Event of Default and at any time thereafter, the Secured
      Parties shall have the right to exercise all of the remedies conferred hereunder
      and under the Debentures, and the Secured Parties shall have all the rights
      and
      remedies of a secured party under the UCC. Without limitation, the Secured
      Parties shall have the following rights and powers:

    

    (a)
      The
      Secured Parties shall have the right to take possession of the Collateral and,
      for that purpose, enter, with the aid and assistance of any person, any premises
      where the Collateral, or any part thereof, is or may be placed and remove the
      same, and Pledgor shall assemble the Collateral and make it available to the
      Secured Parties at places which the Secured Parties shall reasonably select,
      whether at the Pledgor’s premises or elsewhere, and make available to the
      Secured Parties, without rent, all of the Pledgor’s respective premises and
      facilities for the purpose of the Secured Parties taking possession of, removing
      or putting the Collateral in saleable or disposable form.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (b)
      The
      Secured Parties shall have the right to operate the business of the Pledgor
      using the Collateral and shall have the right to assign, sell, lease or
      otherwise dispose of and deliver all or any part of the Collateral, at public
      or
      private sale or otherwise, either with or without special conditions or
      stipulations, for cash or on credit or for future delivery, in such parcel
      or
      parcels and at such time or times and at such place or places, and upon such
      terms and conditions as the Secured Parties may deem commercially reasonable,
      all without (except as shall be required by applicable statute and cannot be
      waived) advertisement or demand upon or notice to the Pledgor or right of
      redemption of a Pledgor, which are hereby expressly waived. Upon each such
      sale,
      lease, assignment or other transfer of Collateral, the Secured Parties may,
      unless prohibited by applicable law which cannot be waived, purchase all or
      any
      part of the Collateral being sold, free from and discharged of all trusts,
      claims, right of redemption and equities of the Pledgor, which are hereby waived
      and released.

    

    7.
      Applications
      of Proceeds.
      The
      proceeds of any such sale, lease or other disposition of the Collateral
      hereunder shall be applied first, to the expenses of retaking, holding, storing,
      processing and preparing for sale, selling, and the like (including, without
      limitation, any taxes, fees and other costs incurred in connection therewith)
      of
      the Collateral, to the reasonable attorneys’ fees and expenses incurred by the
      Secured Parties in enforcing its rights hereunder and in connection with
      collecting, storing and disposing of the Collateral, and then to satisfaction
      of
      the Obligations to the Secured Parties based on the then outstanding principal
      amount of the Debentures, and to the payment of any other amounts required
      by
      applicable law, after which the Secured Parties shall pay to the Pledgor any
      surplus proceeds. If, upon the sale, license or other disposition of the
      Collateral, the proceeds thereof are insufficient to pay all amounts to which
      the Secured Parties are legally entitled, the Debtor will be liable for the
      deficiency, together with interest thereon, at the rate of 18% per annum or
      the
      lesser amount permitted by applicable law (the “Default
      Rate”),
      and
      the reasonable fees of any attorneys employed by the Secured Parties to collect
      such deficiency. To the extent permitted by applicable law, the Pledgor waives
      all claims, damages and demands against the Secured Parties arising out of
      the
      repossession, removal, retention or sale of the Collateral, unless due to the
      gross negligence or willful misconduct of the Secured Parties.

    

    8.
      Costs
      and Expenses.
      The
      Pledgor agrees to pay all reasonable out-of-pocket fees, costs and expenses
      incurred in connection with any filing required hereunder, including without
      limitation, any financing statements pursuant to the UCC, continuation
      statements, partial releases and/or termination statements related thereto
      or
      any expenses of any searches reasonably required by the Secured Parties. The
      Pledgor shall also pay all other claims and charges which in the reasonable
      opinion of the Secured Parties might prejudice, imperil or otherwise affect
      the
      Collateral or the Security Interest therein. The Pledgor will also, upon demand,
      pay to the Secured Parties the amount of any and all reasonable expenses,
      including the reasonable fees and expenses of its counsel and of any experts
      and
      agents, which the Secured Parties may incur in connection with (i) the
      enforcement of this Agreement, (ii) the custody or preservation of, or the
      sale
      of, collection from, or other realization upon, any of the Collateral, or (iii)
      the exercise or enforcement of any of the rights of the Secured Parties under
      the Debentures. Until so paid, any fees payable hereunder shall be added to
      the
      principal amount of the Debentures and shall bear interest at the Default
      Rate.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    9.
      Responsibility
      for Collateral.
      The
      Pledgor assumes all liabilities and responsibility in connection with all
      Collateral, and the Obligations shall in no way be affected or diminished by
      reason of the loss, destruction, damage or theft of any of the Collateral or
      its
      unavailability for any reason.

    

    10.
      Security
      Interest Absolute.
      All
      rights of the Secured Parties and all Obligations of the Pledgor hereunder,
      shall be absolute and unconditional, irrespective of: (a) any lack of validity
      or enforceability of this Agreement, the Debentures or any agreement entered
      into in connection with the foregoing, or any portion hereof or thereof; (b)
      any
      change in the time, manner or place of payment or performance of, or in any
      other term of, all or any of the Obligations, or any other amendment or waiver
      of or any consent to any departure from the Debentures or any other agreement
      entered into in connection with the foregoing; (c) any exchange, release or
      nonperfection of any of the Collateral, or any release or amendment or waiver
      of
      or consent to departure from any other collateral for, or any guaranty, or
      any
      other security, for all or any of the Obligations; (d) any action by the Secured
      Parties to obtain, adjust, settle and cancel in its sole discretion any
      insurance claims or matters made or arising in connection with the Collateral;
      or (e) any other circumstance which might otherwise constitute any legal or
      equitable defense available to a Pledgor, or a discharge of all or any part
      of
      the Security Interest granted hereby. Until the Obligations shall have been
      paid
      and performed in full, the rights of the Secured Parties shall continue even
      if
      the Obligations are barred for any reason, including, without limitation, the
      running of the statute of limitations or bankruptcy. The Pledgor expressly
      waives presentment, protest, notice of protest, demand, notice of nonpayment
      and
      demand for performance. In the event that at any time any transfer of any
      Collateral or any payment received by the Secured Parties hereunder shall be
      deemed by final order of a court of competent jurisdiction to have been a
      voidable preference or fraudulent conveyance under the bankruptcy or insolvency
      laws of the United States, or shall be deemed to be otherwise due to any party
      other than the Secured Parties, then, in any such event, the Pledgor’s
      obligations hereunder shall survive cancellation of this Agreement, and shall
      not be discharged or satisfied by any prior payment thereof and/or cancellation
      of this Agreement, but shall remain a valid and binding obligation enforceable
      in accordance with the terms and provisions hereof. The Pledgor waives all
      right
      to require the Secured Parties to proceed against any other person or to apply
      any Collateral which the Secured Parties may hold at any time, or to marshal
      assets, or to pursue any other remedy. The Pledgor waives any defense arising
      by
      reason of the application of the statute of limitations to any obligation
      secured hereby.

    

    11.
      Term
      of Agreement.
      This
      Agreement and the Security Interest shall terminate on the date on which all
      payments under the Debentures have been made in full or have been satisfied
      and
      all other costs, expenses, fees or other obligations of Debtor under the
      Debenture have been paid or discharged. Upon such termination, the Secured
      Parties, at the request and at the expense of the Pledgor, will join in
      executing any termination statement with respect to any financing statement
      executed and filed pursuant to this Agreement.

     

    
      12.
        Power
        of Attorney; Further Assurances.

       

    

    (a)
      The
      Pledgor authorizes the Secured Parties, and do hereby make, constitute and
      appoint the Secured Parties and its respective officers, agents, successors
      or
      assigns with full power of substitution, as the Pledgor’s true and lawful
      attorney-in-fact, with power, in the name of the Secured Parties or the Pledgor,
      to, after the occurrence and during the continuance of an Event of Default,
      (i)
      endorse any note, checks, drafts, money orders or other instruments of payment
      (including payments payable under or in respect of any policy of insurance)
      in
      respect of the Collateral that may come into possession of the Secured Parties;
      (ii) to sign and endorse any financing statement pursuant to the UCC or any
      invoice, freight or express bill, bill of lading, storage or warehouse receipts,
      drafts against debtors, assignments, verifications and notices in connection
      with accounts, and other documents relating to the Collateral; (iii) to pay
      or
      discharge taxes, liens, security interests or other encumbrances at any time
      levied or placed on or threatened against the Collateral; (iv) to demand,
      collect, receipt for, compromise, settle and sue for monies due in respect
      of
      the Collateral; and (v) generally, to do, at the option of the Secured Parties,
      and at the expense of the Pledgor, at any time, or from time to time, all acts
      and things which the Secured Parties deem necessary to protect, preserve and
      realize upon the Collateral and the Security Interest granted therein in order
      to effect the intent of this Agreement and the Debentures all as fully and
      effectually as the Pledgor might or could do; and the Pledgor hereby ratifies
      all that said attorney shall lawfully do or cause to be done by virtue hereof.
      This power of attorney is coupled with an interest and shall be irrevocable
      for
      the term of this Agreement and thereafter as long as any of the Obligations
      shall be outstanding.

    

    (b)
      On a
      continuing basis, the Pledgor will make, execute, acknowledge, deliver, file
      and
      record, as the case may be, with the proper filing and recording agencies in
      any
      jurisdiction, including, without limitation, the jurisdictions indicated on
      Schedule
      B
      attached
      hereto, all such instruments, and take all such action as may reasonably be
      deemed necessary or advisable, or as reasonably requested by the Secured
      Parties, to perfect the Security Interest granted hereunder and otherwise to
      carry out the intent and purposes of this Agreement, or for assuring and
      confirming to the Secured Parties the grant or perfection of a perfected
      security interest in all the Collateral under the UCC.

    

    (c)
      The
      Pledgor hereby irrevocably appoints the Secured Parties as the Pledgor’s
      attorney-in-fact, with full authority in the place and instead of the Pledgor
      and in the name of the Pledgor, from time to time in the Secured Parties’
discretion, to take any action and to execute any instrument which the Secured
      Parties may deem necessary or advisable to accomplish the purposes of this
      Agreement, including the filing, in its sole discretion, of one or more
      financing or continuation statements and amendments thereto, relative to any
      of
      the Collateral without the signature of the Pledgor where permitted by
      law.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    13.
      Notices.
      All
      notices, requests, demands and other communications hereunder shall be subject
      to the notice provision of the Purchase Agreement.

    

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

    

    15.
      Best
      Efforts for Licensed Collateral. Notwithstanding
      any other provision contained herein or any of the Transaction Documents, upon
      the occurrence of an Event of Default, the Pledgor hereby agrees that with
      respect to any part of the Collateral which may require the consent of any
      third
      party or third parties in order for Pledgor to transfer and/or convey its
      interest in and to such Collateral to the Secured Parties, as may be required
      in
      accordance herewith, Pledgor agrees to and shall use its best efforts to obtain
      such consents or approvals in as expedient a manner as possible.

     

    
      16.
        Miscellaneous.

    

    

    (a)
      No
      course of dealing between the Pledgor and the Secured Parties, nor any failure
      to exercise, nor any delay in exercising, on the part of the Secured Parties,
      any right, power or privilege hereunder or under the Debentures shall operate
      as
      a waiver thereof; nor shall any single or partial exercise of any right, power
      or privilege hereunder or thereunder preclude any other or further exercise
      thereof or the exercise of any other right, power or privilege.

    

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

    

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

    

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

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    (e)
      No
      waiver of any breach or default or any right under this Agreement shall be
      considered valid unless in writing and signed by the party giving such waiver,
      and no such waiver shall be deemed a waiver of any subsequent breach or default
      or right, whether of the same or similar nature or otherwise.

     

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

       

    

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

    

    (h)
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of Texas, without regard to the principles
      of conflicts of law thereof. Each party agrees that all Proceedings concerning
      the interpretations, enforcement and defense of the transactions contemplated
      by
      this Agreement and the Debentures (whether brought against a party hereto or
      its
      respective affiliates, directors, officers, shareholders, employees or agents)
      shall be commenced exclusively in the state and federal courts sitting in
      Dallas, Texas. Each party hereto hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in Dallas, Texas for the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any Proceeding, any claim that it is not
      personally subject to the jurisdiction of any such court, or that such
      Proceeding is improper. Each party hereto hereby irrevocably waives personal
      service of process and consents to process being served in any such Proceeding
      by mailing a copy thereof via registered or certified mail or overnight delivery
      (with evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. Nothing contained herein
      shall be deemed to limit in any way any right to serve process in any manner
      permitted by law. Each party hereto hereby irrevocably waives, to the fullest
      extent permitted by applicable law, any and all right to trial by jury in any
      legal Proceeding arising out of or relating to this Agreement or the
      transactions contemplated hereby. If either party shall commence a Proceeding
      to
      enforce any provisions of this Agreement, then the prevailing party in such
      Proceeding shall be reimbursed by the other party for its reasonable attorneys
      fees and other costs and expenses incurred with the investigation, preparation
      and prosecution of such Proceeding.

    

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

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

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

    

     

    
      	
              DEBTOR

               

              DRIVEITAWAY,
                INC.

               

              By:
                /s/
                David M. Sola                

              Name:
                David M. Sola

              Title:
                Chief Executive Officer

               

               

               

            	
               

               

              Address
                for Notice and Delivery:

               

              213
                W. Institute Place

              Suite
                408

              Chicago,
                IL 60610

              Telephone:
                (312) 654-8650

              Facsimile:
                (312) 654-8718

              Attn:
                _____________________

            

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Exhibit
      10.4

     

     

    SECURED
      PARTIES’ SIGNATURE PAGE

    

    

    SECURED
      PARTIES:      

    

    

    TRIDENT
      GROWTH FUND, L.P. 

    

    By:
      TRIDENT MANAGEMENT, LLC, its

    GENERAL
      PARTNER

     

    

    By:
      /s/ Scotty Cook                

    Name:
      Scotty Cook                

    Title:
      Authorized Member

    

    Address
      for Notice and Delivery

    

    700
      Gemini

    Houston,
      TX 77058

    Telephone:
      (281) 488-8484

    Facsimile:
      (281) 488-5353

    Attn:
      Larry St. Martin

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    Exhibit
      10.4

    
 

    SCHEDULE
      A

    

    Principal
      Place of Business:

    

    213
      W.
      Institute Place

    Suite
      408

    Chicago,
      IL 60610

    

    Locations
      Where Collateral is Located or Stored:

    

    213
      W.
      Institute Place

    Suite
      408

    Chicago,
      IL 60610

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

      Exhibit
        10.4

       

       

    

    SCHEDULE
      B

    

    Driveitaway,
      Inc.: 

    

    State
      of
      Organization Delaware

    

    Organization
      Number 3099756

    

    14

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