Document:

Unassociated Document

    NEITHER
      THIS DEBENTURE NOR ANY SHARES OF STOCK ISSUABLE UPON CONVERSION OF THIS
      DEBENTURE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE
“ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. NEITHER THIS DEBENTURE NOR
      ANY SHARES OF STOCK ISSUABLE UPON CONVERSION OF THIS DEBENTURE MAY BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
      STATEMENT IN EFFECT WITH RESPECT TO THIS DEBENTURE OR SHARES OF STOCK ISSUABLE
      UPON CONVERSION OF THIS DEBENTURE UNDER SUCH ACT UNLESS SUCH REGISTRATION IS
      NOT
      REQUIRED PURSUANT TO A VALID EXEMPTION THEREFROM UNDER THE ACT.

    

    COMPLIANCE
      SYSTEMS CORPORATION

    SECURED
      CONVERTIBLE DEBENTURE

    

    
      	
              $300,000.00

            	
              May
                6, 2008

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned Compliance
      Systems Corporation,
      a
      Nevada corporation (referred to herein as “Borrower”
or
      the
“Company”),
      promises to pay to the order of Agile
      Opportunity Fund, LLC, its
      successors or assigns (the “Lender”),
      the
      principal sum of Three Hundred Thousand Dollars ($300,000.00) or such lesser
      principal amount as is then outstanding on November 6, 2009 (the “Maturity
      Date”),
      and
      interest thereon at a rate equal to fifteen percent (15%) per annum (the
“Interest
      Rate”).
      Interest shall be payable on the last day of each calendar month prior to the
      Maturity Date with the first interest payment to be made on May 31, 2008.
      Borrower shall pay the principal balance then outstanding under this Secured
      Convertible Debenture (this “Debenture”)
      plus
      accrued but unpaid interest in full on the Maturity Date along with payment
      of
      any other amounts due hereunder or under the other Loan Documents (as defined
      below). The Borrower acknowledges that in addition to the interest due
      hereunder, Lender shall be entitled to an additional payment, on the Maturity
      Date or whenever the principal of this Debenture is paid (including in
      connection with any earlier redemption), such that Lender’s annualized rate of
      return on such principal payment shall be equal to thirty (30%) percent.
      Notwithstanding any other provision hereof, interest paid or becoming due
      hereunder and any other payments hereunder which may constitute interest shall
      in no event exceed the maximum rate permitted by applicable law. 

    

    Interest
      and any other amounts due hereunder are payable in lawful money of the United
      States of America to the Lender at the address set forth in that certain
      Securities Purchase Agreement executed by the Borrower and the Lender dated
      as
      of May 6, 2008, as amended from time to time (the “Securities
      Purchase Agreement”)
      and
      pursuant to which this Debenture is issued. The terms and conditions of the
      Securities Purchase Agreement and all other documents and instruments delivered
      in connection therewith (collectively, the “Loan
      Documents”)
      are
      incorporated by reference herein and made a part hereof. All capitalized terms
      not otherwise defined herein shall have the respective meanings as set forth
      in
      the Securities Purchase Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Section
      1. Conversion.

    

    (a) At
      any
      time from the original issue date hereof through the date that this Debenture
      is
      paid in full, Lender shall have the right, in its sole discretion, to convert
      the principal balance of this Debenture then outstanding plus accrued but unpaid
      interest, in whole or in part, into shares (each, a “Conversion
      Share”)
      of
      Common Stock at a conversion price equal to $0.05 per Conversion Share, subject
      to adjustment as provided in Section 2 herein (the “Conversion
      Price”).

    

    (b) Lender
      may convert this Debenture at the then applicable Conversion Price by the
      surrender of this Debenture (properly endorsed) to the Company at the principal
      office of the Borrower, together with the form of Notice of Conversion attached
      hereto as Annex A (a “Notice of
      Conversion”) duly completed, dated and executed, specifying therein
      the principal amount of Debenture and/or outstanding interest to be converted.
      The “Conversion Date” shall be the date that such Notice of Conversion and this
      Debenture is duly provided to Borrower hereunder (or, at Lender's option, the
      next interest payment date with respect to Lender's conversion of any scheduled
      interest payment). 

    

    (c) On
      the
      date of receipt by the Company of the duly completed, dated and executed Notice
      of Conversion and this Debenture in accordance with Section 1(b) with respect
      to
      a conversion of any portion of this Debenture, the Lender (and any person(s)
      receiving Conversion Shares in lieu of the Lender) shall be deemed to have
      become the holder of record for all purposes of the Conversion Shares to which
      such valid conversion relates.

    

    (d) As
      soon
      as practicable, but not in excess of five business days, after the valid
      conversion of any portion of this Debenture, the Company, at the Company’s
      expense (including the payment by Company of any applicable issuance and similar
      taxes, will cause to be issued in the name of and delivered to the Lender
      (and/or such other person(s) identified in the Notice of Conversion with respect
      to such conversion), certificates evidencing the number of duly authorized,
      validly issued, fully paid and non-assessable Conversion Shares to which the
      Lender (and/or such other person(s) identified in such Notice of Conversion,
      shall be entitled to receive upon the conversion), as adjusted to reflect the
      effects, if any, of the anti-dilution provisions of Section 2, such certificates
      to be in such reasonable denominations as Lender may request when delivering
      the
      Notice of Conversion.

    

    (e) If
      less
      than the entire principal and accrued interest under this Debenture is being
      converted, the Company shall execute and deliver to the Lender a new Debenture
      (dated as of the date hereof) evidencing the principal balance of this Debenture
      that has not been so converted.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Section
      2. Conversion
      Price Adjustment.

    

    (a)
      If
      and whenever the Company issues or sells any Additional Stock (as defined below)
      for consideration per share less than the Conversion Price in effect immediately
      prior to such issuance or sale, then immediately upon such issuance or sale
      the
      Conversion Price shall be reduced to a new Conversion Price determined by
      dividing (i) amount equal to the sum of (a) the number of shares of Common
      Stock
      (on a fully-diluted basis) outstanding immediately prior to such issuance or
      sale, multiplied by the then existing Conversion Price, plus (b) the
      consideration, if any, received by the Company in connection with such issuance
      or sale, by (ii) the total number of shares of Common Stock (on a fully-diluted
      basis) outstanding immediately after such issuance or sale, rounded to the
      nearest one ten-thousandth ($0.0001) of a dollar. As used herein,
“Additional Stock” means any securities issued (or
      deemed to have been issued pursuant to Section 2(b)) by the Company after the
      original issue date hereof other than: (i) any rights, warrants or options
      directly or indirectly to subscribe for or purchase Common Stock
      (“Options”) outstanding as of the original issue date
      hereof including the Company’s outstanding convertible preferred stock; (ii) the
      first 15 million of Common Stock issued pursuant to an equity incentive plan
      for
      employees, officers, directors and independent contractors of the Company
      adopted by the Board of Directors of the Company; provided such Common Stock
      is
      sold at or above the market price for the Common Stock as of the date of grant
      of the Option to purchase such Common Stock or date of issuance of such Common
      Stock, if no Option is being exercised in connection with such sale; (iii)
      shares of Common Stock issuable upon conversion of any Debentures issued under
      the Securities Purchase Agreement; and (iv) as a stock dividend or upon any
      subdivision of shares of Common Stock, provided that the securities issued
      pursuant to such stock dividend or subdivision are limited to additional shares
      of Common Stock.

    

    (b)
      For
      purposes of determining the adjusted Conversion Price under Section 2(a) above,
      the following shall be applicable:

    

    (i) Issuance
      of Rights or Options.
      If the
      Company in any manner grants or sells any Options and the price per share for
      which Additional Stock is issuable upon the exercise of such Options, or upon
      conversion or exchange of any convertible securities issuable upon exercise
      of
      such Options, is less than the Conversion Price in effect immediately prior
      to
      such grant or sale, then the total maximum number of shares of Additional Stock
      issuable upon the exercise of such Options or upon conversion or exchange of
      the
      total maximum amount of such Convertible Securities issuable upon the exercise
      of such Options shall be deemed to be outstanding and to have been issued and
      sold by the Company at the time of the granting or sale of such Options for
      such
      price per share. For purposes of this paragraph, the “price per share for which
      Additional Stock is issuable” shall be determined by dividing (A) the total
      amount, if any, received or receivable by the Company as consideration for
      the
      granting or sale of such Options, plus the minimum aggregate amount of
      additional consideration payable to the Company upon exercise of all such
      Options, plus in the case of such Options which relate to Convertible
      Securities, the minimum aggregate amount of additional consideration, if any,
      payable to the Company upon the issuance or sale of such Convertible Securities
      and the conversion or exchange thereof, by (B) the total maximum number of
      shares of Additional Stock issuable upon the exercise of such Options or upon
      the conversion or exchange of all such Convertible Securities issuable upon
      the
      exercise of such Options. No further adjustment of the Conversion Price shall
      be
      made when Convertible Securities are actually issued upon the exercise of such
      Options or when Additional Stock is actually issued upon the exercise of such
      Options or the conversion or exchange of such Convertible Securities.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (ii)
      Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any convertible securities and the price
      per share for which Additional Stock is issuable upon conversion or exchange
      thereof is less than the Conversion Price in effect immediately prior to such
      issuance or sale, then the maximum number of shares of Additional Stock issuable
      upon conversion or exchange of such convertible securities shall be deemed
      to be
      outstanding and to have been issued and sold by the Company at the time of
      the
      issuance or sale of such convertible securities for such price per share. For
      the purposes of this subparagraph, the “price per share for which Additional
      Stock is issuable” shall be determined by dividing (A) the total amount
      received or receivable by the Company as consideration for the issue or sale
      of
      such convertible securities, plus the minimum aggregate amount of additional
      consideration, if any, payable to the Company upon the conversion or exchange
      thereof, by (B) the total maximum number of shares of Additional Stock
      issuable upon the conversion or exchange of all such convertible securities.
      No
      further adjustment of the Conversion Price shall be made when Additional Stock
      is actually issued upon the conversion or exchange of such convertible
      securities, and if any such issue or sale of such convertible securities is
      made
      upon exercise of any Options for which adjustments of the Conversion Price
      had
      been or are to be made pursuant to other provisions of this Section 2, no
      further adjustment of the Conversion Price shall be made by reason of such
      issue
      or sale. 

    

    (iii)
      Change
      in Option Price, Conversion Rate or Shares Issuable.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the conversion or exchange of any convertible securities,
      the
      rate at which any convertible securities are convertible into or exchangeable
      for Additional Stock, and/or the quantity of Additional Stock issuable upon
      the
      conversion, exercise or exchange of any such Option or convertible security,
      changes at any time, then the Conversion Price in effect at the time of such
      change shall be immediately adjusted to the Conversion Price which would have
      been in effect at such time had such Options or convertible securities still
      outstanding provided for such changed purchase price, additional consideration,
      conversion rate or quantity, as the case may be, at the time initially granted,
      issued or sold; provided that no such change shall at any time cause the
      Conversion Price hereunder to be increased. If the terms of any Option or
      convertible security which was outstanding as of the original issue date hereof
      are changed in the manner described in the immediately preceding sentence,
      then
      such Option or convertible Security and the Additional Stock deemed issuable
      upon exercise, conversion or exchange thereof shall be deemed to have been
      issued as of the date of such change.

    

    (iv)
      Calculation
      of Consideration Received.
      If any
      Additional Stock is issued or sold or deemed to have been issued or sold for
      cash, the consideration will be deemed to be the amount of cash paid therefor.
      In the case of the issuance of Additional Stock for a consideration in whole
      or
      in part other than cash, the consideration other than cash will be deemed to
      be
      the fair value thereof as determined in good faith by the Board of Directors
      of
      the Company irrespective of any accounting treatment.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (v)
      Record
      Date.
      If the
      Company takes a record of the holders of any securities for the purpose of
      entitling them (A) to receive a dividend or other distribution payable in
      Additional Stock, Options or in convertible securities or (B) to subscribe
      for
      or purchase Additional Stock, Options or convertible securities, then such
      record date shall be deemed to be the date of the issue or sale of the shares
      of
      Additional Stock deemed to have been issued or sold upon the declaration of
      such
      dividend or upon the making of such other distribution or the date of the
      granting of such right of subscription or purchase, as the case may
      be.

    

    (c)
      If
      the Borrower, at any time while this Debenture is outstanding, (i) shall pay
      a
      stock dividend or otherwise make a distribution or distributions on shares
      of
      its Common Stock or any other equity or equity equivalent securities payable
      in
      shares of Common Stock, (ii) subdivide outstanding shares of Common Stock into
      a
      larger number of shares, (iii) combine (including by way of reverse stock split)
      outstanding shares of Common Stock into a smaller number of shares, or (iv)
      issue by reclassification of shares of the Common Stock any shares of capital
      stock of the Borrower, then the Conversion Price shall be multiplied by a
      fraction of which the numerator shall be the number of shares of Common Stock
      (excluding treasury shares, if any) outstanding before such event and of which
      the denominator shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding after such event. Any adjustment made
      pursuant to this paragraph shall become effective immediately after the record
      date for the determination of stockholders entitled to receive such dividend
      or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or reclassification.

    

    (d) In
      case
      of any consolidation or merger of the Borrower with or into another corporation
      or the conveyance of all or substantially all of the assets of the Borrower
      to
      another corporation, this Debenture shall thereafter be convertible (to the
      extent such conversion is permitted hereunder) into the number of shares of
      stock or other securities or property to which a holder of the number of shares
      of Common Stock of the Borrower deliverable upon conversion of this Debenture
      would have been entitled upon such consolidation, merger or conveyance; and,
      in
      any such case, appropriate adjustment shall be made in the application of the
      provisions herein set forth with respect to the rights and interest thereafter
      of the holders of this Debenture, to the end that the provisions set forth
      herein shall be thereafter applicable, as nearly as reasonably may be, in
      relation to any shares of stock or other property thereafter deliverable upon
      the conversion of the Debenture.

    

    Section
      3. Redemption.
      (a) The
      Borrower at its option shall have the right, upon 15 business days’ advance
      written notice, to redeem a portion or all amounts outstanding under this
      Debenture prior to the Maturity Date.

    

    (b) Notwithstanding
      the foregoing in the event that the Borrower has elected to repay any
      outstanding principal amount and accrued interest under this Debenture the
      Lender shall still be entitled to effectuate conversions as contemplated
      hereunder through the date of redemption. 

    

    Section
      4. Transferability. Neither this Debenture nor any shares of stock
      issuable upon conversion of this Debenture have been registered under the
      Securities Act of 1933, as amended (the “Act”), or under
      the securities laws of any state. Neither this Debenture nor any shares of
      stock
      issuable upon conversion of this Debenture may be sold, offered for sale,
      pledged or hypothecated in the absence of a registration statement in effect
      with respect to this Debenture or shares issuable upon conversion of this
      Debenture under such Act unless such registration is not required pursuant
      to a
      valid exemption therefrom under the Act. Provided the foregoing requirements
      are
      satisfied, this Debenture and any of the rights granted hereunder are freely
      transferable by the Lender in its sole discretion.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    Section
      5. Reservation of Stock. The Borrower covenants that it will at all times
      reserve and keep available out of its authorized and unissued shares of Common
      Stock solely for the purpose of issuance upon conversion of this Debenture
      as
      herein provided, free from preemptive rights or any other actual contingent
      purchase rights of persons other than the Lender, not less than such number
      of
      shares of the Common Stock as shall be issuable upon the conversion of the
      outstanding principal of this Debenture and accrued and unpaid interest thereon.
      If at any time, the Company does not have available an amount of authorized
      but
      unissued Common Stock or Common Stock held in treasury necessary to satisfy
      any
      conversion of all amounts outstanding under this Debenture, the Company shall
      call and hold a special meeting of its stockholders within 30 days of the
      occurrence of any shortfall in authorized shares for the purpose of approving
      an
      increase in the number of shares of authorized Common Stock to an amount
      sufficient to enable conversion all amounts outstanding under this Debenture,
      subject in all respects to compliance with the requirements of Section 14 of
      the
      Securities Exchange Act of 1934 to which the Borrower is subject. The Board
      of
      Directors of the Company shall recommend that stockholders vote in favor of
      increasing the number of authorized shares of Common Stock at any such meeting.
      Each Member of the Board of Directors of the Company shall also vote all of
      such
      Director’s voting securities of the Company in favor of such increase in
      authorized shares. The Borrower covenants that all shares of Common Stock that
      may be issuable upon conversion of this Debenture shall, upon issue, be duly
      and
      validly authorized, issued and fully paid and nonassessable. No consent of
      any
      other party and no consent, license, approval or authorization of, or
      registration or declaration with, any governmental authority, bureau or agency
      is required in connection with the execution, delivery or performance by the
      Borrower, or the validity or enforceability of this Debenture other than such
      as
      have been met or obtained. The execution, delivery and performance of this
      Debenture and all other agreements and instruments executed and delivered or
      to
      be executed and delivered pursuant hereto or thereto or the securities issuable
      upon conversion of this will not violate any provision of any existing law
      or
      regulation or any order or decree of any court, regulatory body or
      administrative agency or the certificate of incorporation or by-laws of the
      Borrower or any mortgage, indenture, contract or other agreement to which the
      Borrower is a party or by which the Borrower or any property or assets of the
      Borrower may be bound. 

    

    Section
      6. No Fractional Shares. Upon a conversion hereunder the Borrower shall
      not be required to issue stock certificates representing fractions of shares
      of
      Common Stock, and in lieu of any fractional shares which would otherwise be
      issuable, the Borrower shall issue the next highest whole number of shares
      of
      Common Stock, as the case may be.

    

    Section
      7. Event
      of Default.
      (a) An
“Event of Default”, wherever used herein, means any one of the following events
      (whatever the reason and whether it shall be voluntary or involuntary or
      effected by operation of law or pursuant to any judgment, decree or order of
      any
      court, or any order, rule or regulation of any administrative or governmental
      body):

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (i) Any
      default in the payment of the principal of, interest on or other charges in
      respect of this Debenture, as and when the same shall become due and payable
      (whether on a Conversion Date or the Maturity Date or by acceleration or
      otherwise);

    

    (ii) The
      Borrower or any subsidiary of Borrower as listed on Schedule 2.7 of the
      Securities Purchase Agreement (each, a “Subsidiary”)
      shall fail to observe or perform any other material covenant, agreement or
      warranty contained in, or otherwise commit any breach or default of any
      provision of this Debenture or any Loan Document to which it is a
      party;

    

    (iii) The
      Borrower or any Subsidiary, shall commence, or there shall be commenced against
      the Borrower or any Subsidiary any applicable bankruptcy or insolvency laws
      as
      now or hereafter in effect or any successor thereto, or the Borrower or any
      Subsidiary commences any other proceeding under any reorganization, arrangement,
      adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
      or
      similar law of any jurisdiction whether now or hereafter in effect relating
      to
      the Borrower or Subsidiary or there is commenced against the Borrower or
      Subsidiary any such bankruptcy, insolvency or other proceeding which remains
      undismissed for a period of 60 days; or the Borrower or Subsidiary is
      adjudicated insolvent or bankrupt; or any order of relief or other order
      approving any such case or proceeding is entered; or the Borrower or Subsidiary
      suffers any appointment of any custodian, private or court appointed receiver
      or
      the like for it or any substantial part of its property which continues
      undischarged or unstayed for a period of 60 days; or the Borrower or Subsidiary
      makes a general assignment for the benefit of creditors; or the Borrower or
      Subsidiary shall fail to pay or shall state that it is unable to pay or shall
      be
      liable to pay, its debts as they become due or by any act or failure to act
      expressly indicate its consent to, approval of or acquiescence in any of the
      foregoing; or any corporate or other action is taken by the Borrower or
      Subsidiary for the purpose of effecting any of the foregoing; or

    

    (iv) The
      Borrower or any Subsidiary shall default in any of its secured obligations
      under
      any other debenture or any mortgage, credit agreement or other facility,
      indenture agreement, factoring agreement or other instrument under which there
      may be issued, or by which there may be secured or evidenced any indebtedness
      for borrowed money or money due under any leasing or factoring arrangement
      of
      the Borrower, whether such indebtedness now exists or shall hereafter be created
      and such default shall result in such indebtedness becoming or being declared
      due and payable prior to the date on which it would otherwise become due and
      payable.

    

    (b) Following
      an Event of Default, the Interest Rate shall increase to twenty percent (20%)
      per annum (but not exceeding the maximum rate permitted by law) immediately
      following such Event of Default. During the time that any portion of this
      Debenture is outstanding, if (i) any Event of Default has occurred and has
      not
      been cured by the Borrower or (ii) an event described in Section 2(d) occurs,
      the full principal amount of this Debenture, together with interest and other
      amounts owing in respect thereof, to the date of acceleration shall become
      at
      the Lender's election, immediately due and payable. The Lender need not provide
      and the Borrower hereby waives any presentment, demand, protest or other notice
      of any kind, and the Lender may immediately and without expiration of any grace
      period enforce any and all of its rights and remedies hereunder and all other
      remedies available to it under applicable law. 

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    Section
      8. Registration
      Rights.
      The
      Lender is entitled to certain registration rights with respect to the Common
      Stock issuable upon conversion of this Debenture as set forth in the Securities
      Purchase Agreement. 

    

    Section
      9. Notices.
      Any and
      all notices, requests, documents or other communications or deliveries required
      or permitted to be given or delivered hereunder shall be delivered in accordance
      with the notice provisions of the Securities Purchase Agreement.

    

    Section
      10. Governing
      Law.
      This
      Debenture and the provisions hereof are to be construed according to and are
      governed by the laws of the State of New York, without regard to principles
      of
      conflicts of laws thereof. Borrower agrees that the New York State Supreme
      Court
      located in the County of Nassau, State of New York shall have exclusive
      jurisdiction in connection with any dispute concerning or arising out of this
      Debenture, the Loan Documents, or otherwise relating to the parties
      relationship. In any action, lawsuit or proceeding brought to enforce or
      interpret the provisions of this Debenture, the Loan Documents and/or arising
      out of or relating to any dispute between the parties, the Lender shall be
      entitled to recover all of his or its costs and expenses relating to such issue
      (including without limitation, reasonable attorney’s fees and disbursements) in
      addition to any other relief to which the Lender may be entitled.

    

    Section
      11. Successors
      and Assigns.
      Subject
      to applicable securities laws, this Debenture and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and assigns of Lender.

     

    Section
      12. Amendment.
      This
      Debenture may be modified or amended or the provisions hereof waived only with
      the written consent of the Lender and the Company. 

    

    Section
      13. Severability.
      Wherever possible, each provision of this Debenture shall be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Debenture shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Debenture.

     

     

    [Signature
      page follows]

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Borrower has caused this Debenture to be duly executed
      by a
      duly authorized officer as of the date first above indicated.

    

    COMPLIANCE
      SYSTEMS CORPORATION

     

    By:/s/
      Dean
      Garfinkel                                            
 

    Name:
      Dean Garfinkel

    Title:
      President

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    ANNEX
      A

    

    NOTICE
      OF
      CONVERSION

    To
      Be
      Executed by the Lender

    in
      Order
      to Convert Debenture

    

      The
      undersigned Lender hereby elects to convert $__________ principal and $_____
      interest currently outstanding and owed under the Secured Convertible Debenture
      issued to Agile
      Opportunity Fund, LLC
      at a
      Conversion Price of $___ (the “Debenture”)
      and to
      purchase ___________ shares of Common Stock of Compliance
      Systems Corporation
      issuable
      upon conversion of such Debenture, and requests that certificates for such
      securities shall be issued in the name of:

    

    

    ___________________________________________________________

    (please
      print or type name and address)

    

    ___________________________________________________________

    (please
      insert social security or other identifying number)

    

    and
      be
      delivered as follows:

    

    

    ___________________________________________________________

    please
      print or type name and address)

    

    ___________________________________________________________

    (please
      insert social security or other identifying number)

    

    

    Lender
      Name:_______________________________________________

    

    By:________________________________________________________

    Name:

    Title:

    

    Conversion
      Date:___________________________________________

    

    
      
        
        

      

      
        10Unassociated Document

    SECURITY
      AGREEMENT

    

    This
      Security Agreement (this “Security
      Agreement”),
      dated
      as of May 6, 2008, is by and between Compliance
      Systems Corporation,
      a
      Nevada corporation (the “Debtor”)
      and
Agile
      Opportunity Fund, LLC,
      a
      Delaware limited liability company (the “Secured
      Party”).

     

    Background

    

    
      	 	
              1.

            	
              The
                Secured Party has purchased from the Debtor a Secured Convertible
                Debenture (the “Debenture”)
                in the principal amount of $300,000.00, pursuant to a Securities
                Purchase
                Agreement between the Debtor and the Secured Party dated as of the
                date
                hereof (the “Securities
                Purchase Agreement”)
                and may purchase an Additional Debenture pursuant to the terms of
                the
                Securities Purchase Agreement. Capitalized terms used herein and
                not
                otherwise defined herein shall have the meanings specified in the
                Securities Purchase Agreement.

            

    

    

    
      	 	
              2.

            	
              To
                induce the Secured Party to purchase the Debentures, the Debtor has
                agreed
                to provide the Secured Party with, except as otherwise noted herein,
                a
                first priority security interest in the Collateral (as hereinafter
                defined).

            

    

    

    NOW,
      THEREFORE,

    

    In
      consideration of the promises and the mutual covenants and agreements herein
      set
      forth, and in order to induce the Secured Party to purchase the Debentures,
      the
      Debtor hereby agrees with the Secured Party as follows:

    

    Section
      1. Grant
      of Security Interest.
      The
      Debtor hereby grants to the Secured Party, on the terms and conditions
      hereinafter set forth, except as otherwise noted herein, a first priority
      security interest in the collateral hereinafter identified (the “Collateral”).
      Notwithstanding the immediately preceding sentence, the security interest being
      granted by Debtor to Secured Party pursuant to this Agreement, shall, with
      respect to the Nascap
      Collateral
      (as such
      term is hereinafter defined), be subordinate and junior to that certain first
      priority security interest granted by Call Compliance, Inc., a wholly-owned
      subsidiary of Debtor (“Call
      Compliance”),
      to
      Nascap
      Corp. (“Nascap”)
      pursuant to the Security Agreement, dated as of September 30, 2006 (the
“Nascap
      Security Agreement”),
      between Call Compliance and Nascap securing the obligations of Call Compliance
      under the loan (the “Senior
      Loan”)
      extended to Call Compliance by Nascap and evidenced by the Promissory Note,
      dated September 30, 2006 (the “Nascap
      Note”)
      of
      Call Compliance for the benefit of Nascap and in the principal amount of
      $150,000. The obligations and performance of Call Compliance under the Nascap
      Note have been guaranteed by Debtor. For purposes of this Security Agreement,
      the term Nascap Collateral shall mean all of the following property of Call
      Compliance, whether now owned or existing or hereafter acquired or arising
      and
      wheresoever located:

    

    (a) All
      accounts receivable owing to the Call Compliance arising out of goods sold
      or
      leased or for services rendered by Call Compliance solely in connection with
      the
      VeriSign, Inc. and Comtel Telcom Assets, LP (and each of their respective
      affiliates, successors and/or assigns) accounts, with a value of up to $150,000
      plus all accrued interest under the Senior Loan and Nascap Note;
      and

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (b) All
      book
      and records relating to any of the collateral referred to in subsection (a)
      (including, without limitation, customer data, credit files, computer programs,
      printouts, and other computer materials and records of Call Compliance
      pertaining to any of the foregoing).

    

    All
      of
      the property and interests in property described in subsections (a) and (b)
      are
      herein collectively referred to as the “Nascap Loan Collateral.”

    

    Section
      2. Collateral.
      The
      Collateral is all tangible and intangible assets of the Debtor of whatever
      kind
      and nature (including, without limitation, all intellectual property of whatever
      kind or nature of the Debtor including patents, trademarks, tradenames,
      copyrights and all other intellectual property and any applications or
      registrations therefore, accounts, chattel paper, commercial tort claims,
      documents, equipment, farm products, general intangibles, instruments,
      inventory, investment property, and the stock of all of Debtor’s subsidiaries),
      in each case whether now owned or hereafter acquired and wherever located,
      and
      all proceeds thereof, together with all proceeds, products, replacements and
      renewals thereof. 

    

    Section
      3. Representations
      and Warranties; Covenants.
      The
      Debtor hereby represents, warrants and covenants as follows:

    

    
      	 	
              (a)

            	
              Except
                in respect of the assets securing the Senior Loan and Nascap Note,
                the
                Debtor has title to the Collateral free from any lien, security interest,
                encumbrance or claim.

            

    

    

    
      	 	
              (b)

            	
              The
                Debtor will maintain the Collateral so as to preserve its value subject
                to
                wear and tear in the ordinary
                course.

            

    

    

    
      	 	
              (c)

            	
              The
                Debtor is a corporation duly organized, validly existing and in good
                standing under the laws of the State of
                Nevada.

            

    

    

    
      	 	
              (d)

            	
              The
                Debtor will pay when due all existing or future charges, liens, or
                encumbrances on the Collateral, and will pay when due all taxes and
                assessments now or hereafter imposed or affecting the Collateral
                unless
                such taxes or assessments are diligently contested by the Debtor
                in good
                faith and reasonable reserves are established
                therefor.

            

    

    

    
      	 	
              (e)

            	
              All
                factual information with respect to the Debentures and the Collateral
                and
                account debtors set forth in any schedule, certificate or other writing
                at
                any time heretofore or hereafter furnished by the Debtor to the Secured
                Party, and all other written factual information heretofore or hereafter
                furnished by the Debtor to the Secured Party, is or will be true
                and
                correct in all material respects, as of the date
                furnished.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (f)

            	
              Within
                five business days following execution of this Agreement, the Secured
                Party will prepare, execute and file with the Secretary of State
                in the
                State of Nevada, a UCC-1 Financing Statement covering the Collateral,
                naming the Secured Party as Secured Party
                thereunder.

            

    

    

    
      	 	
              (g)

            	
              The
                Debtor will keep its records concerning the Collateral at its address
                shown in Section 18 below. Such records will be of such character
                as to
                enable the Secured Party or their representatives to determine at
                any time
                the status thereof, and the Debtor will not, unless the Secured Party
                shall otherwise consent in writing, maintain any such record at any
                other
                address.

            

    

    

    
      	 	
              (h)

            	
              The
                Debtor will furnish the Secured Party information on a quarterly
                basis
                concerning the Debtor, the Debentures and the Collateral as the Secured
                Party may at any time reasonably
                request.

            

    

    

    
      	 	
              (i)

            	
              The
                Debtor will permit the Secured Party and its representatives at any
                reasonable time on five days’ prior written notice to inspect any and all
                of the Collateral, and to inspect, audit and make copies of and extracts
                from all records and all other papers in possession of the Debtor
                pertaining to the Debentures and the
                Collateral.

            

    

    

    
      	 	
              (j)

            	
              The
                Debtor will, at such times as the Secured Party may reasonably request,
                deliver to the Secured Party a schedule identifying the Collateral
                subject
                to the security interest of this Security Agreement, and such additional
                schedules, certificates, and reports respecting all or any of the
                Collateral at the time subject to the security interest of this Security
                Agreement, and the items or amounts received by the Debtor in full
                or
                partial payment or otherwise as proceeds received in connection with
                any
                Collateral. Any such schedule, certificate or report shall be executed
                by
                a duly authorized officer of the Debtor on behalf of the Debtor and
                shall
                be in such form and detail as the Secured Party may reasonably specify.
                The Debtor shall immediately notify the Secured Party of the occurrence
                of
                any event causing loss or depreciation in the value of the Collateral,
                and
                the amount of such loss or
                depreciation.

            

    

    

    
      	
            	(k)	
              If
                and when so requested by the Secured Party, the Debtor will stamp
                on the
                records of
                the Debtor concerning the Collateral a notation, in a form satisfactory
                to
                the Secured Party, of the security interest of the Secured Party
                under
                this Security Agreement.

            

    

    

    Section
      4. Disposition
      of Collateral in Ordinary Course.
      Debtor
      shall not sell, transfer, assign, convey, license, grant any right to use or
      otherwise dispose of any Collateral except in the ordinary course of business,
      without the prior written consent of the Secured Party.

    

    Section
      5. Secured
      Party May Perform.
      Upon the
      occurrence and continuation of an “Event
      of Default”
under
      a
      Debenture, at the option of the Secured Party, the Secured Party may discharge
      taxes, liens or security interests, or other encumbrances at any time hereafter
      levied or placed on the Collateral; may pay for insurance required to be
      maintained on the Collateral pursuant to Section 3; and may pay for the
      maintenance and preservation of the Collateral. The Debtor agrees to reimburse
      the Secured Party on demand for any payment reasonably made, or any expense
      reasonably incurred, by the Secured Party pursuant to the foregoing
      authorization. Until the occurrence and continuation of an Event of Default,
      the
      Debtor may have possession of the Collateral and use the Collateral in any
      lawful manner not inconsistent with this the Security Agreement.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    Section
      6. Obligations
      Secured; Certain Remedies.
      This
      Security Agreement secures the payment and performance of all obligations of
      the
      Debtor to the Secured Party under the Debentures, whether now existing or
      hereafter arising and whether for principal, interest, costs, fees or otherwise
      (collectively, the “Obligations”).
      Upon
      the occurrence and continuation of an Event of Default under a Debenture, the
      Secured Party may declare all obligations secured hereby immediately due and
      payable and may exercise the remedies of a secured party under the Uniform
      Commercial Code. Without limiting the foregoing, the Secured Party may require
      the Debtor to assemble the Collateral and make it available to the Secured
      Party
      at a place to be designated by the Secured Party which is reasonably convenient
      to both parties or to execute appropriate documents of assignment, transfer
      and
      conveyance, in each case, in order to permit the Secured Party to take
      possession of and title to the Collateral. Unless the Collateral is perishable
      or threatens to decline rapidly in value or is of a type customarily sold on
      a
      recognized market, the Secured Party will give the Debtor reasonable notice
      of
      the time and place of any public sale thereof or of the time after which any
      private sale or any other intended disposition thereof is to be made. The
      requirements of reasonable notice shall be met if such notice is mailed to
      the
      Debtor via registered or certified mail, postage prepaid, at least fifteen
      days
      before the time of sale or disposition. Expenses of retaking, holding, preparing
      for sale, selling or the like, shall include the Secured Party’s reasonable
      attorneys’ fees and legal expenses.

    

    Section
      7. Debtor
      Remains Liable.
      Anything herein to the contrary notwithstanding:

    

    
      	 	
              (a)

            	
              Notwithstanding
                the exercise of any remedy available to the Secured Party hereunder
                or at
                law in connection with an Event of Default, the Debtor shall remain
                liable
                to repay the balance remaining unpaid and outstanding under the Debenture
                after the value or proceeds received by the Secured Party in connection
                with such remedy is subtracted. The Secured Party shall promptly
                deliver
                and pay over to the Debtor any portion of the value or proceeds received
                in connection with such remedy that remains after the unpaid and
                outstanding portion of the Debenture is paid in
                full.

            

    

    

    
      	 	
              (b)

            	
              The
                Debtor shall remain liable under the contracts and agreements included
                in
                the Collateral to the extent set forth therein, and shall perform
                all of
                its duties and obligations under such contracts and agreements to
                the same
                extent as if this Security Agreement had not been
                executed.

            

    

     

    
      	 	
              (c)

            	
              The
                exercise by the Secured Party of any of Secured Party’s rights hereunder
                shall not release the Debtor from any of Debtor’s duties or obligations
                under any such contracts or agreements included in the
                Collateral.

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (d)

            	
              The
                Secured Party shall not have any obligation or liability under any
                such
                contracts or agreements included in the Collateral by reason of this
                Security Agreement, nor shall the Secured Party be obligated to perform
                any of the obligations or duties of the Debtor thereunder or to take
                any
                action to collect or enforce any claim for payment assigned
                hereunder.

            

    

    

    Section
      8. Security
      Interest Absolute.
      All
      rights of the Secured Party and the security interests granted to the Secured
      Party hereunder shall be absolute and unconditional, to the maximum extent
      permitted by law, irrespective of:

    

    
      	 	
              (a)

            	
              Any
                lack of validity or enforceability of the Debentures or any other
                document
                or instrument relating thereto;

            

    

    

    
      	 	
              (b)

            	
              Any
                change in the time, manner or place of payment of, or in any other
                term
                of, all or any part of the Obligations or any other amendment to
                or waiver
                of or any consent to any departure from the Debentures or any other
                document or instrument relating
                thereto;

            

    

    

    
      	 	
              (c)

            	
              Any
                exchange, release or non-perfection of any collateral (including
                the
                Collateral), or any release of or amendment to or waiver of or consent
                to
                or departure from any guaranty, for all or any of the Obligations;
                or

            

    

    

    
      	 	
              (d)

            	
              Any
                other circumstance which might otherwise constitute a defense available
                to, or a discharge of, the Debtor, a guarantor or a third party grantor
                of
                a security interest.

            

    

    

    Section
      9. Additional
      Assurances.
      At the
      request of the Secured Party, the Debtor will join in executing or will execute,
      as appropriate, all necessary financing statements in a form reasonably
      satisfactory to the Secured Party, and the Debtor will pay the reasonable cost
      of filing such statements, including all statutory fees. The Debtor will further
      execute all other instruments reasonably deemed necessary by the Secured Party
      and pay the reasonable cost of filing such instruments. The Debtor warrants
      that
      no financing statement covering Collateral or any part or proceeds thereof
      is
      presently on file in any public office, except with respect to the Nascap Loan
      Collateral. The Debtor covenants that it will not grant any other security
      interest in the Collateral without first obtaining the written consent of the
      Secured Party, except with respect to extensions, if any, of the security
      interest of Nascap in the Nascap Loan Collateral.

    

    Section
      10. Representations,
      Warranties and Covenants Concerning Debtor’s Legal
      Status.

    

    (a) The
      Debtor has previously executed and delivered to the Secured Party a Perfection
      Certificate in the form of Schedule
      I
      hereto. The Debtor represents and warrants to the Secured Party as
      follows:

    

    
      	 	
              (i)

            	
              Debtor’s
                exact legal name is as indicated on the Perfection Certificate and
                on the
                signature page hereof;

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (ii)

            	
              Debtor
                is an organization of the type, and is organized in the jurisdiction,
                set
                forth in the Perfection
                Certificate;

            

    

    

    
      	 	
              (iii)

            	
              the
                Perfection Certificate accurately sets forth Debtor’s organizational
                identification number or accurately states that Debtor has
                none;

            

    

    

    
      	 	
              (iv)

            	
              the
                Perfection Certificate accurately sets forth Debtor’s place of business
                or, if more than one, its chief executive office as well as Debtor’s
                mailing address, if different; and

            

    

    

    
      	 	
              (v)

            	
              all
                other information set forth on the Perfection Certificate is accurate
                and
                complete.

            

    

    

    (b) The
      Debtor covenants with the Secured Party as follows:

    

    
      	 	
              (i)

            	
              without
                providing fifteen days’ prior written notice to the Secured Party, Debtor
                will not change its name, its place of business, or, if more than
                one, its
                chief executive offices or its mailing address or organizational
                identification number, if it has
                one;

            

    

    

    
      	 	
              (ii)

            	
              if
                Debtor does not have an organizational identification number and
                later
                obtains one, Debtor shall forthwith notify the Secured Party of such
                organizational identification number;
                and

            

    

    

    
      	 	
              (iii)

            	
              Debtor
                will not change its type of organization, jurisdiction of organization
                or
                other legal structure.

            

    

    

    Section
      11. Expenses.
      The
      Debtor will upon demand pay to the Secured Party the amount of any and all
      reasonable expenses, including the reasonable fees and disbursements of its
      counsel and of any experts and agents, which the Secured Party may incur in
      connection with (i) the custody, preservation, use or operation of, or the
      sale
      of, collection from, or other realization upon, any of the Collateral upon
      the
      occurrence and continuation of an Event of Default, (ii) the exercise or
      enforcement of any of the rights of the Secured Party hereunder, or (iii) the
      failure by the Debtor to perform or observe any of the provisions
      hereof.

    

    Section
      12. Notices
      of Loss or Depreciation.
      The
      Debtor will immediately notify the Secured Party of any claim, suit or
      proceeding against any Collateral or any event causing loss or depreciation
      in
      the value of Collateral, including the amount of such loss or
      depreciation.

    

    Section
      13.  No
      Waivers.
      No
      waiver by the Secured Party of any default shall operate as a waiver of any
      other default or of the same default on any subsequent occasion. 

    

    Section
      14. Successor
      and Assigns.
      The
      Secured Party shall have the right to assign this Security Agreement and its
      rights hereunder without the consent of the Debtor. All rights of the Secured
      Party shall inure to the benefit of the successors and assigns of the Secured
      Party. All obligations of the Debtor shall be binding upon the Debtor’s
      successors and assigns.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    Section
      15. Governing
      Law; Jurisdiction.
      This
      Security Agreement shall be governed by the laws of the State of New York,
      without giving effect to such jurisdiction’s principles of conflict of laws,
      except to the extent that the validity or the perfection of the security
      interest hereunder, or remedies hereunder, in respect of any particular
      Collateral are governed by the laws of a jurisdiction other than the State
      of
      New York. Each of the parties hereto submits to the personal jurisdiction of
      and
      each agrees that all proceedings relating hereto shall be brought in federal
      or
      state courts located within Nassau or Suffolk Counties in the State of New
      York.

    

    Section
      16. Counterparts.
      This
      Security Agreement may be executed in any number of counterparts, each of which
      will be deemed an original, but all of which together shall constitute one
      and
      the same instrument.

    

    Section
      17.  Remedies
      Cumulative.
      The
      rights and remedies herein are cumulative, and not exclusive of other rights
      and
      remedies which may be granted or provided by law. 

    

    Section
      18. Notices.
      Any
      demand upon or notice to a party hereunder shall be effective when delivered
      by
      hand, against written receipt therefor, two business days following the business
      day on which it is properly deposited in the mails postage prepaid, certified
      or
      registered mail, return receipt requested, or one business day following deposit
      with an overnight courier, in each case addressed to such party at the address
      shown below or such other address as the party may advise the other party in
      writing:

    

      
        	
                If
                  to the Secured Party: 

              	
                Agile
                  Opportunity Fund, LLC

              
	 	
                1175
                  Walt Whitman Road, Suite 100A

              
	 	
                Melville,
                  NY 11747

              
	 	 
	
                With
                  a copy to:

              	
                Westerman
                  Ball Ederer Miller & Sharfstein, LLP

              
	 	
                170
                  Old Country Road

              
	 	
                Mineola,
                  NY 11501

              
	 	
                Attn:
                  Alan C. Ederer, Esq.

              
	 	 
	
                If
                  to the Debtor:

              	
                Compliance
                  Systems Corporation

              
	 	
                90
                  Pratt Oval

              
	 	
                Glen
                  Cove, NY 11542

              
	 	
                Attn.:
                  Dean Garfinkel, President

              
	 	 
	
                With
                  a copy to:

              	
                Moritt
                  Hock Hamroff & Horowitz LLP

              
	 	
                400
                  Garden City Plaza

              
	 	
                Garden
                  City, NY 11530

              
	 	
                Attn:
                  Dennis C. O’Rourke, Esq.

              

      

    

    

    Section
      19. Entire
      Agreement.
      This
      Security Agreement and the documents and instruments referred to herein embody
      the entire agreement entered into between the parties relating to the subject
      matter hereof, and may not be amended, waived, or discharged except by an
      instrument in writing executed by the Secured Party.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    Section
      20. Termination.
      This
      Security Agreement shall terminate upon the repayment in full of the Initial
      Debenture and, if issued, the Additional Debenture or conversion in full of
      the
      Initial Debenture and, if issued, the Additional Debenture, upon which the
      Secured Party shall cooperate in the filing of the necessary or appropriate
      documents and instruments to release the security interest created hereby and
      will execute and deliver any and all documents and/or instruments reasonably
      requested by Debtor in connection therewith.

    

    

    [Remainder
      of Page Intentionally Left Blank]

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto, by their duly authorized agents, have
      executed this Security Agreement as of the date set forth above.

    

    COMPLIANCE
      SYSTEMS CORPORATION

     

    

    By: 
      /s/
      Dean
      Garfinkel                                                                              
 

    Name:
      Dean Garfinkel

    Title:
      President

    

    

    AGILE
      OPPORTUNITY FUND, LLC

    By:
      AGILE
      INVESTMENTS, LLC, Managing Member 

     

     

    By:
      /s/
      David I.
      Propis                                                                               
 

    Name:
      David I. Propis

    Title:
      Managing Member

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      I

    

    PERFECTION
      CERTIFICATE

    

    The
      undersigned, the Chief Executive Officer of Compliance
      Systems Corporation,
      a Nevada corporation (the "Company"),
      hereby certifies, with reference to a certain Security Agreement, dated as
      of
      May 6, 2008 (terms defined in such Security Agreement having the same meanings
      herein as specified therein), between the Company and Agile
      Opportunity Fund, LLC
      (the "Secured
      Party"),
      to the Secured Party as follows:

    

    1. Name. The
      exact legal name of the Company as that name appears on its Certificate of
      Incorporation is as follows: Compliance Systems Corporation.

    

    2. Other
      Identifying Factors. 

    

    (a)
      The following is the mailing address of the Company:

    

    
      	
              Address

            	
              County

            	
              State

            
	 	 	 
	
              90
                Pratt Oval, Glen Cove

            	
              Nassau

            	
              NY

            

    

    

    (b) If
      different from its mailing address, the Company’s place of business or, if more
      than one, its chief executive office is located at the following
      address:

    

    
      	
              Address

            	
              County

            	
              State

            
	 	 	 
	 	 	 

    

    

    (c) The
      following is the type of organization of the Company: Corporation.

    

    (d) The
      following is the jurisdiction of the Company’s organization:
      Nevada.

    

    (e) The
      following is the Company's state issued organizational identification number:
      C28314-2003.

    

    3. Other
      Names, Etc.

    

    The
      following is a list of all other names (including trade names or similar
      appellations) used by the Company, or any other business or organization to
      which the Company became the successor by merger, consolidation, acquisition,
      change in form, nature or jurisdiction of organization or otherwise, now or
      at
      any time during the past five years: 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    

    

    

    4. Other
      Current Locations. 

    

    (a) The
      following are all other locations in the United States of America in which
      the
      Company maintain any books or records relating to any of the Collateral
      consisting of accounts, instruments, chattel paper, general intangibles or
      mobile goods:

    

    
      	
              Address

            	
              County

            	
              State

            
	 	 	 
	 	 	 

    

    

    (b) The
      following are all other places of business of the Company in the United States
      of America:

    

    
      	
              Address

            	
              County

            	
              State

            
	 	 	 
	 	 	 

    

    

    (c) The
      following are all other locations in the United States of America where any
      of
      the Collateral consisting of inventory or equipment is located:

    

    
      	
              Address

            	
              County

            	
              State

            
	 	 	 
	 	 	 

    

    

    (d) The
      following are the names and addresses of all persons or entities other than
      the
      Company, such as lessees, consignees, warehousemen or purchasers of chattel
      paper, which have possession or are intended to have possession of any of the
      Collateral consisting of instruments, chattel paper, inventory or
      equipment:

    

    
      	 	 	 	 
	
              Name

            	
              Mailing
                Address

            	
              County

            	
              State

            
	 	 	 	 
	 	 	 	 

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, I have hereunto signed this Perfection Certificate on May
      6,
      2008.

    

    

    

    _____________________________

    Name:
      Dean Garfinkel

    Title:
      Chief Executive Officer

    

    
      
        
        

      

      
        12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]