Document:

zealous_8k-ex1003.htm

               EXHIBIT
      10.3

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this “Agreement”) is made and entered into
      as of October 17, 2007, between Zealous Trading Group, Inc., a Nevada
      corporation (the “Company”) and each of the several purchasers signatory
      hereto (each such purchaser, a “Purchaser” and, collectively, the
“Purchasers”).

    

                   This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof, between the Company and each Purchaser (the “Purchase
      Agreement”).

    

                   The
      Company and each Purchaser hereby agrees as follows:

     

    1.    Definitions

    

                   Capitalized
      terms used and not otherwise defined herein that are defined in the Purchase
      Agreement shall have the meanings given such terms in the Purchase
      Agreement. As used in this Agreement, the following terms shall have
      the following meanings:

    

                  
      “Advice” shall have the meaning set forth in Section 6(d).

    

    “Effectiveness
      Date” means, with respect to the Initial Registration Statement required to
      be filed hereunder, the 90th calendar
      day
      following the earlier of the actual filing date or the Filing Date (or, in
      the
      event of a “full review” by the Commission, the 120th calendar
      day
      following the earlier of the actual filing date or the Filing Date) and with
      respect to any additional Registration Statements which may be required pursuant
      to Section 3(c), the 90th calendar
      day
      following the date on which an additional Registration Statement is required
      to
      be filed hereunder; provided, however, that in the event the
      Company is notified by the Commission that one or more of the above Registration
      Statements will not be reviewed or is no longer subject to further review and
      comments, the Effectiveness Date as to such Registration Statement shall be
      the
      fifth Trading Day following the date on which the Company is so notified if
      such
      date precedes the dates otherwise required above.

    

    “Effectiveness
      Period” shall have the meaning set forth in Section 2(a).

    

    “Event”
      shall have the meaning set forth in Section 2(b).

    

    “Event
      Date” shall have the meaning set forth in Section 2(b).

    

    “Filing
      Date” means, with respect to the Initial Registration Statement required
      hereunder, the 30th calendar
      day
      following the date of the consummation of the Merger and, with respect to any
      additional Registration Statements which may be required pursuant to Section
      3(c), the earliest practical date on which the Company is permitted by SEC
      Guidance to file such additional Registration Statement related to the
      Registrable Securities.

    

    
      
        
        

      

      
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    “Holder”
      or “Holders” means the holder or holders, as the case may be, from time
      to time of Registrable Securities.

    

    “Indemnified
      Party” shall have the meaning set forth in Section 5(c).

    

    “Indemnifying
      Party” shall have the meaning set forth in Section 5(c).

    

    “Initial
      Registration Statement” means the initial Registration Statement filed
      pursuant to this Agreement.

    

    “Initial
      Shares” means a number of Registrable Securities equal to the lesser of (i)
      the total number of Registrable Securities and (ii) one-third of the number
      of
      issued and outstanding shares of Common Stock that are held by non-affiliates
      of
      the Company on the day immediately prior to the filing date of the Initial
      Registration Statement.

    

    “Losses”
      shall have the meaning set forth in Section 5(a).

    

    “Plan
      of Distribution” shall have the meaning set forth in Section
      2(a).

    

    “Prospectus”
      means the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated by the Commission pursuant to the Securities Act), as
      amended or supplemented by any prospectus supplement, with respect to the terms
      of the offering of any portion of the Registrable Securities covered by a
      Registration Statement, and all other amendments and supplements to the
      Prospectus, including post-effective amendments, and all material incorporated
      by reference or deemed to be incorporated by reference in such
      Prospectus.

    

    “Registrable
      Securities” means (i) all of the shares of Common Stock issuable upon
      conversion in full of the Debentures (assuming on the date of determination
      the
      Debentures are converted in full without regard to any conversion limitations
      therein), (ii) all Warrant Shares (assuming on the date of determination the
      Warrants are exercised in full without regard to any exercise limitations
      therein), (iii) any additional shares of Common Stock issuable in connection
      with any anti-dilution provisions in the Debentures or the Warrants (in each
      case, without giving effect to any limitations on conversion set forth in the
      Debentures or limitations on exercise set forth in the Warrant) and (iv) any
      securities issued or issuable upon any stock split, dividend or other
      distribution,  recapitalization or similar event with respect to the
      foregoing.

    

    
      
        
        

      

      
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    “Registration
      Statement” means the registration statement required to be filed hereunder
      and any additional registration statements contemplated by Section 3(c),
      including (in each case) the Prospectus, amendments and supplements to such
      registration statement or Prospectus, including pre- and post-effective
      amendments, all exhibits thereto, and all material incorporated by reference
      or
      deemed to be incorporated by reference in such registration
      statement.

    

     “Rule
      415” means Rule 415 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended or interpreted from time to time, or any
      similar rule or regulation hereafter adopted by the Commission having
      substantially the same purpose and effect as such Rule.

    

    “Rule
      424” means Rule 424 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended or interpreted from time to time, or any
      similar rule or regulation hereafter adopted by the Commission having
      substantially the same purpose and effect as such Rule.

    

    “Selling
      Shareholder Questionnaire” shall have the meaning set forth in Section
      3(a).

    

    “SEC
      Guidance” means (i) any publicly-available written or oral guidance,
      comments, requirements or requests of the Commission staff and (ii) the
      Securities Act.

    

    2.    Shelf
      Registration

    

    (a)  On
      or
      prior to each Filing Date, the Company shall prepare and file with the
      Commission a Registration Statement covering the resale of all or such maximum
      portion of the Registrable Securities as permitted by SEC Guidance (provided
      that the Company shall use diligent efforts to advocate with the Commission
      for
      the registration of all of the Registrable Securities in accordance with the
      SEC
      Guidance, including without limitation, the Manual of Publicly Available
      Telephone Interpretations D.29) that are not then registered on an effective
      Registration Statement for an offering to be made on a continuous basis pursuant
      to Rule 415.  The Registration Statement shall be on Form S-3 (except
      if the Company is not then eligible to register for resale the Registrable
      Securities on Form S-3, in which case such registration shall be on another
      appropriate form in accordance herewith) and shall contain (unless otherwise
      directed by at least an 85% majority in interest of the Holders) substantially
      the “Plan of Distribution” attached hereto as Annex
      A.  Subject to the terms of this Agreement, the Company shall use
      its best efforts to cause a Registration Statement to be declared effective
      under the Securities Act as promptly as possible after the filing thereof,
      but
      in any event prior to the applicable Effectiveness Date, and shall use its
      best
      efforts to keep such Registration Statement continuously effective under the
      Securities Act until all Registrable Securities covered by such Registration
      Statement have been sold, or may be sold without volume restrictions pursuant
      to
      Rule 144(k), as determined by the counsel to the Company pursuant to a written
      opinion letter to such effect, addressed and acceptable to the Transfer Agent
      and the affected Holders (the “Effectiveness Period”).  The
      Company shall telephonically request effectiveness of a Registration Statement
      as of 5:00 p.m. New York City time on a Trading Day.   The
      Company shall promptly notify the Holders via facsimile or by e-mail, provided
      that each Purchaser has provided such information to the Company, of the
      effectiveness of a Registration Statement on the same Trading Day that the
      Company telephonically confirms effectiveness with the Commission, which shall
      be the date requested for effectiveness of such Registration
      Statement.  The Company shall, by 9:30 a.m. New York City time on the
      Trading Day after the effective date of such Registration Statement, file a
      final Prospectus with the Commission as required by Rule 424.  Failure
      to so notify the Holder within 1 Trading Day of such notification of
      effectiveness or failure to file a final Prospectus as foresaid shall be deemed
      an Event under Section 2(b).  Notwithstanding any other provision of
      this Agreement and subject to the payment of liquidated damages pursuant to
      Section 2(b), if any SEC Guidance sets forth a limitation on the number of
      Registrable Securities permitted to be registered on a particular Registration
      Statement (and notwithstanding that the Company used diligent efforts to
      advocate with the Commission for the registration of all or a greater portion
      of
      Registrable Securities), unless otherwise directed in writing by a Holder as
      to
      its Registrable Securities, the number of Registrable Securities to be
      registered on such Registration Statement will first be reduced by Registrable
      Securities represented by Warrant Shares (applied, in the case that some Warrant
      Shares may be registered, to the Holders on a pro rata basis based on the total
      number of unregistered Warrant Shares held by such Holders), and second by
      Registrable Securities represented by Conversion Shares (applied, in the case
      that some Conversion Shares may be registered, to the Holders on a pro rata
      basis based on the total number of unregistered Conversion Shares held by such
      Holders); provided, however, that, prior to any reduction in the
      number of Registrable Securities included in a Registration Statement as set
      forth in this sentence, the number of shares of Common Stock set forth on
      Schedule 6(b) hereto which shall have been included on such Registration
      Statement shall be reduced by up to 100%.

    

    
      
        
        

      

      
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    (b)  If:
      (i)
      the Initial Registration Statement is not filed on or prior to its Filing Date
      (if the Company files the Initial Registration Statement without affording
      the
      Holders the opportunity to review and comment on the same as required by Section
      3(a) herein, the Company shall be deemed to have not satisfied this clause
      (i)),
      or (ii) the Company fails to file with the Commission a request for acceleration
      of a Registration Statement in accordance with Rule 461 promulgated by the
      Commission pursuant to the Securities Act, if applicable, within five Trading
      Days of the date that the Company is notified (orally or in writing, whichever
      is earlier) by the Commission that such Registration Statement will not be
      “reviewed” or will not be subject to further review, or (iii) prior to the
      effective date of a Registration Statement, the Company fails to file a
      pre-effective amendment and otherwise respond in writing to comments made by
      the
      Commission in respect of such Registration Statement within 15 Trading Days
      after the receipt of comments by or notice from the Commission that such
      amendment is required in order for such Registration Statement to be declared
      effective, or (iv) as to, in the aggregate among all Holders on a pro-rata
      basis
      based on their purchase of the Securities pursuant to the Purchase Agreement,
      a
      Registration Statement registering for resale all of the Initial Shares is
      not
      declared effective by the Commission by the Effectiveness Date of the Initial
      Registration Statement, or (v) all of the Registrable Securities are not
      registered for resale pursuant to one or more effective Registration Statements
      on or before the date that is the one year anniversary of the date of the
      Purchase Agreement, or (vi) after the effective date of a Registration
      Statement, such Registration Statement ceases for any reason to remain
      continuously effective as to all Registrable Securities included in such
      Registration Statement, or the Holders are otherwise not permitted to utilize
      the Prospectus therein to resell such Registrable Securities, for more than
      10
      consecutive calendar days or more than an aggregate of 15 calendar days (which
      need not be consecutive calendar days) during any 12-month period (any such
      failure or breach being referred to as an “Event”, and for purposes of
      clause (i), (iv) and (v) the date on which such Event occurs, and for purpose
      of
      clause (ii) the date on which such five Trading Day period is exceeded, and
      for
      purpose of clause (iii) the date which such 15 Trading Day period is exceeded,
      and for purpose of clause (vi) the date on which such 10 or 15 calendar day
      period, as applicable, is exceeded being referred to as “Event Date”),
      then, in addition to any other rights the Holders may have hereunder or under
      applicable law, on each such Event Date and on each monthly anniversary of
      each
      such Event Date (if the applicable Event shall not have been cured by such
      date)
      until the applicable Event is cured, the Company shall pay to each Holder an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      1.5% of the aggregate purchase price paid by such Holder pursuant to the
      Purchase Agreement for any unregistered Registrable Securities then held by
      such
      Holder.  The parties agree that (1) the Company shall not be liable
      for liquidated damages under this Agreement with respect to any Warrants or
      Warrant Shares and (2) the maximum aggregate liquidated damages payable to
      a
      Holder under this Agreement shall be 18% of the aggregate Subscription Amount
      paid by such Holder pursuant to the Purchase Agreement.  If the
      Company fails to pay any partial liquidated damages pursuant to this Section
      in
      full within seven days after the date payable, the Company will pay interest
      thereon at a rate of 18% per annum (or such lesser maximum amount that is
      permitted to be paid by applicable law) to the Holder, accruing daily from
      the
      date such partial liquidated damages are due until such amounts, plus all such
      interest thereon, are paid in full. The partial liquidated damages pursuant
      to
      the terms hereof shall apply on a daily pro rata basis for any portion of a
      month prior to the cure of an Event.

    

    3.    Registration
      Procedures.

    

                   In
      connection with the Company’s registration obligations hereunder, the Company
      shall:

    

    (a)  Not
      less
      than 5 Trading Days prior to the filing of each Registration Statement and
      not
      less than 1 Trading Day prior to the filing of any related Prospectus or any
      amendment or supplement thereto (including any document that would be
      incorporated or deemed to be incorporated therein by reference), the Company
      shall (i) furnish to each Holder copies of all such documents proposed to be
      filed, which documents (other than those incorporated or deemed to be
      incorporated by reference) will be subject to the review of such Holders and
      (ii) cause its officers and directors, counsel and independent certified public
      accountants to respond to such inquiries as shall be necessary, in the
      reasonable opinion of respective counsel to each Holder, to conduct a reasonable
      investigation within the meaning of the Securities Act. The Company shall not
      file a Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities shall reasonably object in good faith, provided that the Company
      is
      notified of such objection in writing no later than 5 Trading Days after the
      Holders have been so furnished copies of a Registration Statement or 1 Trading
      Day after the Holders have been so furnished copies of any related Prospectus
      or
      amendments or supplements thereto. Each Holder agrees to furnish to the Company
      a completed questionnaire in the form attached to this Agreement as Annex
      B (a “Selling Shareholder Questionnaire”) not less than two Trading
      Days prior to the Filing Date or by the end of the fourth Trading Day following
      the date on which such Holder receives draft materials in accordance with this
      Section.

    

    
      
        
        

      

      
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    (b)  (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to a Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep a Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement (subject to the terms of
      this
      Agreement), and, as so supplemented or amended, to be filed pursuant to Rule
      424; (iii) respond as promptly as reasonably possible to any comments received
      from the Commission with respect to a Registration Statement or any amendment
      thereto and provide as promptly as reasonably possible to the Holders true
      and
      complete copies of all correspondence from and to the Commission relating to
      a
      Registration Statement (provided that the Company may excise any information
      contained therein which would constitute material non-public information as
      to
      any Holder which has not executed a confidentiality agreement with the Company);
      and (iv) comply in all material respects with the provisions of the Securities
      Act and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by a Registration Statement during the applicable period
      in
      accordance (subject to the terms of this Agreement) with the intended methods
      of
      disposition by the Holders thereof set forth in such Registration Statement
      as
      so amended or in such Prospectus as so supplemented.

    

    (c)  If
      during
      the Effectiveness Period, the number of Registrable Securities at any time
      exceeds 100% of the number of shares of Common Stock then registered in a
      Registration Statement, then the Company shall file as soon as reasonably
      practicable, but in any case prior to the applicable Filing Date, an additional
      Registration Statement covering the resale by the Holders of not less than
      the
      number of such Registrable Securities.

    

    (d)  Notify
      the Holders of Registrable Securities to be sold (which notice shall, pursuant
      to clauses (iii) through (vi) hereof, be accompanied by an instruction to
      suspend the use of the Prospectus until the requisite changes have been made)
      as
      promptly as reasonably possible (and, in the case of (i)(A) below, not less
      than
      one Trading Day prior to such filing) and (if requested by any such Person)
      confirm such notice in writing no later than one Trading Day following the
      day
      (i)(A) when a Prospectus or any Prospectus supplement or post-effective
      amendment to a Registration Statement is proposed to be filed; (B) when the
      Commission notifies the Company whether there will be a “review” of such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement; and (C) with respect to a Registration Statement or
      any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other federal or state governmental authority
      for amendments or supplements to a Registration Statement or Prospectus or for
      additional information; (iii) of the issuance by the Commission or any other
      federal or state governmental authority of any stop order suspending the
      effectiveness of a Registration Statement covering any or all of the Registrable
      Securities or the initiation of any Proceedings for that purpose; (iv) of the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction, or the initiation or threatening of
      any
      Proceeding for such purpose; (v) of the occurrence of any event or passage
      of
      time that makes the financial statements included in a Registration Statement
      ineligible for inclusion therein or any statement made in a Registration
      Statement or Prospectus or any document incorporated or deemed to be
      incorporated therein by reference untrue in any material respect or that
      requires any revisions to a Registration Statement, Prospectus or other
      documents so that, in the case of a Registration Statement or the Prospectus,
      as
      the case may be, it will not contain any untrue statement of a material fact
      or
      omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading; and (vi) of the occurrence or existence of any pending
      corporate development with respect to the Company that the Company believes
      may
      be material and that, in the determination of the Company, makes it not in
      the
      best interest of the Company to allow continued availability of a Registration
      Statement or Prospectus, provided that any and all of such information shall
      remain confidential to each Holder until such information otherwise becomes
      public, unless disclosure by a Holder is required by law; provided,
further, that notwithstanding each Holder’s agreement to keep such
      information confidential, each such Holder makes no acknowledgement that any
      such information is material, non-public information.

    

    
      
        
        

      

      
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    (e)  Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of
      (i) any order stopping or suspending the effectiveness of a Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

    

    (f)  Furnish
      to each Holder, without charge, at least 1 conformed copy of each such
      Registration Statement and each amendment thereto, including financial
      statements and schedules, all documents incorporated or deemed to be
      incorporated therein by reference to the extent requested by such Person, and
      all exhibits to the extent requested by such Person (including those previously
      furnished or incorporated by reference) promptly after the filing of such
      documents with the Commission; provided, that any such item which is available
      on the EDGAR system need not be furnished in physical form.

    

    (g)  Subject
      to the terms of this Agreement, the Company hereby consents to the use of such
      Prospectus and each amendment or supplement thereto by each of the selling
      Holders in connection with the offering and sale of the Registrable Securities
      covered by such Prospectus and any amendment or supplement thereto, except
      after
      the giving of any notice pursuant to Section 3(d).

    

    (h)   The
      Company shall cooperate with any broker-dealer through which a Holder proposes
      to resell its Registrable Securities in effecting a filing with the FINRA
      Corporate Financing Department pursuant to NASD Rule 2710, as requested by
      any
      such Holder, and the Company shall pay the filing fee required by such filing
      within 2 Business Days of request therefor.

    

    (i)  Prior
      to
      any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep each
      registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by each Registration Statement; provided, that the Company
      shall not be required to qualify generally to do business in any jurisdiction
      where it is not then so qualified, subject the Company to any material tax
      in
      any such jurisdiction where it is not then so subject or file a general consent
      to service of process in any such jurisdiction.

    

    (j)  If
      requested by a Holder, cooperate with such Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement,
      of all restrictive legends, and to enable such Registrable Securities to be
      in
      such denominations and registered in such names as any such Holder may
      request.

    

    
      
        
        

      

      
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    (k)  Upon
      the
      occurrence of any event contemplated by Section 3(d), as promptly as reasonably
      possible under the circumstances taking into account the Company’s good faith
      assessment of any adverse consequences to the Company and its stockholders
      of
      the premature disclosure of such event, prepare a supplement or amendment,
      including a post-effective amendment, to a Registration Statement or a
      supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, neither a Registration Statement nor such
      Prospectus will contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. If the Company notifies the Holders in accordance with
      clauses (iii) through (vi) of Section 3(d) above to suspend the use of any
      Prospectus until the requisite changes to such Prospectus have been made, then
      the Holders shall suspend use of such Prospectus.  The Company will
      use its best efforts to ensure that the use of the Prospectus may be resumed
      as
      promptly as is practicable.  The Company shall be entitled to exercise
      its right under this Section 3(k) to suspend the availability of a Registration
      Statement and Prospectus, subject to the payment of partial liquidated damages
      otherwise required pursuant to Section 2(b), for a period not to exceed 60
      calendar days (which need not be consecutive days) in any 12 month
      period.

    

    (l)  Comply
      with all applicable rules and regulations of the Commission.

    

    (m)    
      The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to the number of shares of Common Stock beneficially owned by
      such
      Holder and, if required by the Commission, the natural persons thereof that
      have
      voting and dispositive control over the shares. During any periods that the
      Company is unable to meet its obligations hereunder with respect to the
      registration of the Registrable Securities solely because any Holder fails
      to
      furnish such information within three Trading Days of the Company’s request, any
      liquidated damages that are accruing at such time as to such Holder only shall
      be tolled and any Event that may otherwise occur solely because of such delay
      shall be suspended as to such Holder only, until such information is delivered
      to the Company.

    

    4.    Registration
      Expenses. All fees and expenses incident to the performance of or compliance
      with this Agreement by the Company shall be borne by the Company whether or
      not
      any Registrable Securities are sold pursuant to a Registration Statement. The
      fees and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses of the Company’s counsel and auditors) (A) with respect to
      filings made with the Commission, (B) with respect to filings required to be
      made with any Trading Market on which the Common Stock is then listed for
      trading, (C) in compliance with applicable state securities or Blue Sky laws
      reasonably agreed to by the Company in writing (including, without limitation,
      fees and disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities) and (D) if not
      previously paid by the Company in connection with an Issuer Filing, with respect
      to any filing that may be required to be made by any broker through which a
      Holder intends to make sales of Registrable Securities with the FINRA pursuant
      to NASD Rule 2710, so long as the broker is receiving no more than a customary
      brokerage commission in connection with such sale, (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities), (iii) messenger, telephone and delivery expenses,
      (iv)
      fees and disbursements of counsel for the Company, (v) Securities Act liability
      insurance, if the Company so desires such insurance, and (vi) fees and expenses
      of all other Persons retained by the Company in connection with the consummation
      of the transactions contemplated by this Agreement.  In addition, the
      Company shall be responsible for all of its internal expenses incurred in
      connection with the consummation of the transactions contemplated by this
      Agreement (including, without limitation, all salaries and expenses of its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit and the fees and expenses incurred in connection with the
      listing of the Registrable Securities on any securities exchange as required
      hereunder.  In no event shall the Company be responsible for any
      broker or similar commissions of any Holder or, except to the extent provided
      for in the Transaction Documents, any legal fees or other costs of the
      Holders.

    

    
      
        
        

      

      
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    5.    Indemnification.

    

    (a)  Indemnification
      by the Company. The Company shall, notwithstanding any termination of this
      Agreement, indemnify and hold harmless each Holder, the officers, directors,
      members, partners, agents, brokers (including brokers who offer and sell
      Registrable Securities as principal as a result of a pledge or any failure
      to
      perform under a margin call of Common Stock), investment advisors and employees
      (and any other Persons with a functionally equivalent role of a Person holding
      such titles, notwithstanding a lack of such title or any other title) of each
      of
      them, each Person who controls any such Holder (within the meaning of Section
      15
      of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, members, stockholders, partners, agents and employees (and any other
      Persons with a functionally equivalent role of a Person holding such titles,
      notwithstanding a lack of such title or any other title) of each such
      controlling Person, to the fullest extent permitted by applicable law, from
      and
      against any and all losses, claims, damages, liabilities, costs (including,
      without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, arising out of or relating to (1) any untrue or
      alleged untrue statement of a material fact contained in a Registration
      Statement, any Prospectus or any form of prospectus or in any amendment or
      supplement thereto or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission of a material fact required to
      be
      stated therein or necessary to make the statements therein (in the case of
      any
      Prospectus or supplement thereto, in light of the circumstances under which
      they
      were made) not misleading or (2) any violation or alleged violation by the
      Company of the Securities Act, the Exchange Act or any state securities law,
      or
      any rule or regulation thereunder, in connection with the performance of its
      obligations under this Agreement, except to the extent, but only to the extent,
      that (i) such untrue statements or omissions are based solely upon information
      regarding such Holder furnished in writing to the Company by such Holder
      expressly for use therein, or to the extent that such information relates to
      such Holder or such Holder’s proposed method of distribution of Registrable
      Securities and was reviewed and expressly approved in writing by such Holder
      expressly for use in a Registration Statement, such Prospectus or in any
      amendment or supplement thereto (it being understood that the Holder has
      approved Annex A hereto for this purpose) or (ii) in the case of an occurrence
      of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
      Holder of an outdated or defective Prospectus after the Company has notified
      such Holder in writing that the Prospectus is outdated or defective and prior
      to
      the receipt by such Holder of the Advice contemplated in Section
      6(d).  The Company shall notify the Holders promptly of the
      institution, threat or assertion of any Proceeding arising from or in connection
      with the transactions contemplated by this Agreement of which the Company is
      aware.

    

    (b)  Indemnification
      by Holders. Each Holder shall, severally and not jointly, indemnify and hold
      harmless the Company, its directors, officers, agents and employees, each Person
      who controls the Company (within the meaning of Section 15 of the Securities
      Act
      and Section 20 of the Exchange Act), and the directors, officers, agents or
      employees of such controlling Persons, to the fullest extent permitted by
      applicable law, from and against all Losses, as incurred, to the extent arising
      out of or based solely upon: (x) such Holder’s failure to comply with the
      prospectus delivery requirements of the Securities Act or (y) any untrue or
      alleged untrue statement of a material fact contained in any Registration
      Statement, any Prospectus, or in any amendment or supplement thereto or in
      any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein not misleading (i) to the extent, but only to the extent,
      that such untrue statement or omission is contained in any information so
      furnished in writing by such Holder to the Company specifically for inclusion
      in
      such Registration Statement or such Prospectus or (ii) to the extent that such
      information relates to such Holder’s proposed method of distribution of
      Registrable Securities and was reviewed and expressly approved in writing by
      such Holder expressly for use in a Registration Statement (it being understood
      that the Holder has approved Annex A hereto for this purpose), such Prospectus
      or in any amendment or supplement thereto or (ii) in the case of an occurrence
      of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
      Holder of an outdated or defective Prospectus after the Company has notified
      such Holder in writing that the Prospectus is outdated or defective and prior
      to
      the receipt by such Holder of the Advice contemplated in Section 6(d). In no
      event shall the liability of any selling Holder hereunder be greater in amount
      than the dollar amount of the net proceeds received by such Holder upon the
      sale
      of the Registrable Securities giving rise to such indemnification
      obligation.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    (c)  Conduct
      of Indemnification Proceedings. If any Proceeding shall be brought or
      asserted against any Person entitled to indemnity hereunder (an “Indemnified
      Party”), such Indemnified Party shall promptly notify the Person from whom
      indemnity is sought (the “Indemnifying Party”) in writing, and the
      Indemnifying Party shall have the right to assume the defense thereof, including
      the employment of counsel reasonably satisfactory to the Indemnified Party
      and
      the payment of all fees and expenses incurred in connection with defense
      thereof; provided, that the failure of any Indemnified Party to give such notice
      shall not relieve the Indemnifying Party of its obligations or liabilities
      pursuant to this Agreement, except (and only) to the extent that it shall be
      finally determined by a court of competent jurisdiction (which determination
      is
      not subject to appeal or further review) that such failure shall have prejudiced
      the Indemnifying Party.

    

                   An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless:  (1) the Indemnifying Party has agreed in writing to pay such
      fees and expenses; (2) the Indemnifying Party shall have failed promptly to
      assume the defense of such Proceeding and to employ counsel reasonably
      satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
      parties to any such Proceeding (including any impleaded parties) include both
      such Indemnified Party and the Indemnifying Party, and counsel to the
      Indemnified Party shall reasonably believe that a material conflict of interest
      is likely to exist if the same counsel were to represent such Indemnified Party
      and the Indemnifying Party (in which case, if such Indemnified Party notifies
      the Indemnifying Party in writing that it elects to employ separate counsel
      at
      the expense of the Indemnifying Party, the Indemnifying Party shall not have
      the
      right to assume the defense thereof and the reasonable fees and expenses of
      no
      more than one separate counsel shall be at the expense of the Indemnifying
      Party).  The Indemnifying Party shall not be liable for any settlement
      of any such Proceeding effected without its written consent, which consent
      shall
      not be unreasonably withheld or delayed.  No Indemnifying Party shall,
      without the prior written consent of the Indemnified Party, effect any
      settlement of any pending Proceeding in respect of which any Indemnified Party
      is a party, unless such settlement includes an unconditional release of such
      Indemnified Party from all liability on claims that are the subject matter
      of
      such Proceeding.

    

                   Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten Trading Days of written notice thereof to the
      Indemnifying Party; provided, that the Indemnified Party shall promptly
      reimburse the Indemnifying Party for that portion of such fees and expenses
      applicable to such actions for which such Indemnified Party is judicially
      determined to be not entitled to indemnification hereunder.

    

    (d)  Contribution.
      If the indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party or insufficient to hold an Indemnified Party harmless for
      any
      Losses, then each Indemnifying Party shall contribute to the amount paid or
      payable by such Indemnified Party, in such proportion as is appropriate to
      reflect the relative fault of the Indemnifying Party and Indemnified Party
      in
      connection with the actions, statements or omissions that resulted in such
      Losses as well as any other relevant equitable considerations. The relative
      fault of such Indemnifying Party and Indemnified Party shall be determined
      by
      reference to, among other things, whether any action in question, including
      any
      untrue or alleged untrue statement of a material fact or omission or alleged
      omission of a material fact, has been taken or made by, or relates to
      information supplied by, such Indemnifying Party or Indemnified Party, and
      the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such action, statement or omission.  The amount
      paid or payable by a party as a result of any Losses shall be deemed to include,
      subject to the limitations set forth in this Agreement, any reasonable
      attorneys’ or other fees or expenses incurred by such party in connection with
      any Proceeding to the extent such party would have been indemnified for such
      fees or expenses if the indemnification provided for in this Section was
      available to such party in accordance with its terms.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

                   The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding
      paragraph.  Notwithstanding the provisions of this Section 5(d), no
      Holder shall be required to contribute, in the aggregate, any amount in excess
      of the amount by which the net proceeds actually received by such Holder from
      the sale of the Registrable Securities subject to the Proceeding exceeds the
      amount of any damages that such Holder has otherwise been required to pay by
      reason of such untrue or alleged untrue statement or omission or alleged
      omission.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

    

    6.    Miscellaneous.

    

    (a)  Remedies.  In
      the event of a breach by the Company or by a Holder of any of their respective
      obligations under this Agreement, each Holder or the Company, as the case may
      be, in addition to being entitled to exercise all rights granted by law and
      under this Agreement, including recovery of damages, shall be entitled to
      specific performance of its rights under this Agreement.  The Company
      and each Holder agree that monetary damages would not provide adequate
      compensation for any losses incurred by reason of a breach by it of any of
      the
      provisions of this Agreement and hereby further agrees that, in the event of
      any
      action for specific performance in respect of such breach, it shall not assert
      or shall waive the defense that a remedy at law would be adequate.

    

    (b)  No
      Piggyback on Registrations; Prohibition on Filing Other Registration
      Statements. Except as set forth on Schedule 6(b) attached hereto,
      neither the Company nor any of its security holders (other than the Holders
      in
      such capacity pursuant hereto) may include securities of the Company in any
      Registration Statements other than the Registrable Securities.  The
      Company shall not file any other registration statements until all Registrable
      Securities are registered pursuant to a Registration Statement that is declared
      effective by the Commission, provided that this Section 6(b) shall not prohibit
      the Company from filing amendments to registration statements filed prior to
      the
      date of this Agreement.

    

    (c)  Compliance.
      Each Holder covenants and agrees that it will comply with the prospectus
      delivery requirements of the Securities Act as applicable to it in connection
      with sales of Registrable Securities pursuant to a Registration
      Statement.

    

    (d)  Discontinued
      Disposition.  By its acquisition of Registrable Securities, each
      Holder agrees that, upon receipt of a notice from the Company of the occurrence
      of any event of the kind described in Section 3(d)(iii) through (vi), such
      Holder will forthwith discontinue disposition of such Registrable Securities
      under a Registration Statement until it is advised in writing (the
“Advice”) by the Company that the use of the applicable Prospectus (as it
      may have been supplemented or amended) may be resumed.  The Company
      will use its best efforts to ensure that the use of the Prospectus may be
      resumed as promptly as is practicable.  The Company agrees and
      acknowledges that any periods during which the Holder is required to discontinue
      the disposition of the Registrable Securities hereunder shall be subject to
      the
      provisions of Section 2(b).

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (e)  Piggy-Back
      Registrations. If, at any time during the Effectiveness Period, there is not
      an effective Registration Statement covering all of the Registrable Securities
      and the Company shall determine to prepare and file with the Commission a
      registration statement relating to an offering for its own account or the
      account of others under the Securities Act of any of its equity securities,
      other than on Form S-4 or Form S-8 (each as promulgated under the Securities
      Act) or their then equivalents relating to equity securities to be issued solely
      in connection with any acquisition of any entity or business or equity
      securities issuable in connection with the Company’s stock option or other
      employee benefit plans, then the Company shall deliver to each Holder a written
      notice of such determination and, if within fifteen days after the date of
      the
      delivery of such notice, any such Holder shall so request in writing, the
      Company shall include in such registration statement all or any part of such
      Registrable Securities such Holder requests to be registered; provided,
however, that the Company shall not be required to register any
      Registrable Securities pursuant to this Section 6(e) that are eligible for
      resale pursuant to Rule 144(k) promulgated by the Commission pursuant to the
      Securities Act or that are the subject of a then effective Registration
      Statement.

    

    (f)  Amendments
      and Waivers. The provisions of this Agreement, including the provisions of
      this sentence, may not be amended, modified or supplemented, and waivers or
      consents to departures from the provisions hereof may not be given, unless
      the
      same shall be in writing and signed by the Company and the Holders of a majority
      of the then outstanding Registrable Securities (including, for this purpose
      any
      Registrable Securities issuable upon exercise or conversion of any
      Security).  If a Registration Statement does not register all of the
      Registrable Securities pursuant to a waiver or amendment done in compliance
      with
      the previous sentence, then the number of Registrable Securities to be
      registered for each Holder shall be reduced pro rata among all Holders and
      each
      Holder shall have the right to designate which of its Registrable Securities
      shall be omitted from such Registration Statement. Notwithstanding the
      foregoing, a waiver or consent to depart from the provisions hereof with respect
      to a matter that relates exclusively to the rights of a Holder or some Holders
      and that does not directly or indirectly affect the rights of other Holders
      may
      be given by such Holder or Holders of all of the Registrable Securities to
      which
      such waiver or consent relates; provided, however, that the
      provisions of this sentence may not be amended, modified, or supplemented except
      in accordance with the provisions of the first  sentence of this
      Section 6(f).

    

    (g)  Notices.
      Any and all notices or other communications or deliveries required or permitted
      to be provided hereunder shall be delivered as set forth in the Purchase
      Agreement.

    

    (h)  Successors
      and Assigns. This Agreement shall inure to the benefit of and be binding
      upon the successors and permitted assigns of each of the parties and shall
      inure
      to the benefit of each Holder. The Company may not assign (except by merger)
      its
      rights or obligations hereunder without the prior written consent of all of
      the
      Holders of the then outstanding Registrable Securities. Each Holder may assign
      their respective rights hereunder in the manner and to the Persons as permitted
      under the Purchase Agreement.

    

    (i)  No
      Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has
      entered, as of the date hereof, nor shall the Company or any of its
      Subsidiaries, on or after the date of this Agreement, enter into any agreement
      with respect to its securities, that would have the effect of impairing the
      rights granted to the Holders in this Agreement or otherwise conflicts with
      the
      provisions hereof.  Except as set forth on Schedule 6(i),
      neither the Company nor any of its Subsidiaries has previously entered into
      any
      agreement granting any registration rights with respect to any of its securities
      to any Person that have not been satisfied in full.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    (j)  Execution
      and Counterparts. This Agreement may be executed in two or more
      counterparts, all of which when taken together shall be considered one and
      the
      same agreement and shall become effective when counterparts have been signed
      by
      each party and delivered to the other party, it being understood that both
      parties need not sign the same counterpart.  In the event that any
      signature is delivered by facsimile transmission or by e-mail delivery of a
      “.pdf” format data file, such signature shall create a valid and binding
      obligation of the party executing (or on whose behalf such signature is
      executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

    

    (k)  Governing
      Law.  All questions concerning the construction, validity,
      enforcement and interpretation of this Agreement shall be determined in
      accordance with the provisions of the Purchase Agreement.

    

    (l)  Cumulative
      Remedies. The remedies provided herein are cumulative and not exclusive of
      any other remedies provided by law.

    

    (m)  Severability.
      If any term, provision, covenant or restriction of this Agreement is held by
      a
      court of competent jurisdiction to be invalid, illegal, void or unenforceable,
      the remainder of the terms, provisions, covenants and restrictions set forth
      herein shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated, and the parties hereto shall use their commercially
      reasonable efforts to find and employ an alternative means to achieve the same
      or substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    

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

    

    (o)  Independent
      Nature of Holders’ Obligations and Rights. The obligations of each Holder
      hereunder are several and not joint with the obligations of any other Holder
      hereunder, and no Holder shall be responsible in any way for the performance
      of
      the obligations of any other Holder hereunder. Nothing contained herein or
      in
      any other agreement or document delivered at any closing, and no action taken
      by
      any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders
      as a partnership, an association, a joint venture or any other kind of entity,
      or create a presumption that the Holders are in any way acting in concert with
      respect to such obligations or the transactions contemplated by this Agreement.
      Each Holder shall be entitled to protect and enforce its rights, including
      without limitation the rights arising out of this Agreement, and it shall not
      be
      necessary for any other Holder to be joined as an additional party in any
      proceeding for such purpose.

    

    ********************

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

                   IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    
      	 	ZEALOUS
              TRADING GROUP, INC. 
	 	
               

               

            
	 	By:__________________________________________ 
	 	     
              Name:
	 	     
              Title: 

    

    
 

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
[SIGNATURE
      PAGE OF HOLDERS TO ZLST RRA]

    

    

    Name
      of
      Holder: ________________________________________

    

    Signature
      of Authorized Signatory of Holder:
      _________________________________________

    

    Name
      of
      Authorized Signatory: _________________________________

    

    Title
      of
      Authorized Signatory: __________________________________

    

     

     

    [SIGNATURE
      PAGES CONTINUE]

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Annex
      A

    

    Plan
      of Distribution

    

    Each
      Selling Stockholder (the “Selling Stockholders”) of the common stock and
      any of their pledgees, assignees and successors-in-interest may, from time
      to
      time, sell any or all of their shares of common stock on the [principal Trading
      Market] or any other stock exchange, market or trading facility on which the
      shares are traded or in private transactions.  These sales may be at
      fixed or negotiated prices.  A Selling Stockholder may use any one or
      more of the following methods when selling shares:

     

    
      	
              ·   
                  

            	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

     

    
      	
              ·   
                  

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	
              ·   
                  

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	
              ·   
                  

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	
              ·   
                  

            	
              privately
                negotiated transactions;

            

    

     

    
      	
              ·   
                  

            	
              settlement
                of short sales entered into after the effective date of the registration
                statement of which this prospectus is a
                part;

            

    

     

    
      	
              ·   
                  

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

     

    
      	
              ·   
                  

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or
                otherwise;

            

    

     

    
      	
              ·   
                  

            	
              a
                combination of any such methods of sale;
                or

            

    

     

    
      	
              ·   
                  

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act of 1933, as amended (the “Securities Act”), if available, rather than
      under this prospectus.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales.  Broker-dealers may receive commissions or
      discounts from the Selling Stockholders (or, if any broker-dealer acts as agent
      for the purchaser of shares, from the purchaser) in amounts to be negotiated,
      but, except as set forth in a supplement to this Prospectus, in the case of
      an
      agency transaction not in excess of a customary brokerage commission in
      compliance with FINRA NASD Rule 2440; and in the case of a principal transaction
      a markup or markdown in compliance with NASD IM-2440.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    In
      connection with the sale of the common stock or interests therein, the Selling
      Stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume.  The Selling
      Stockholders may also sell shares of the common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities.  The
      Selling Stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales.  In such event, any
      commissions received by such broker-dealers or agents and any profit on the
      resale of the shares purchased by them may be deemed to be underwriting
      commissions or discounts under the Securities Act.  Each Selling
      Stockholder has informed the Company that it does not have any written or oral
      agreement or understanding, directly or indirectly, with any person to
      distribute the Common Stock. In no event shall any broker-dealer receive fees,
      commissions and markups which, in the aggregate, would exceed eight percent
      (8%).

     

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares.  The Company has agreed to
      indemnify the Selling Stockholders against certain losses, claims, damages
      and
      liabilities, including liabilities under the Securities Act.

     

    Because
      Selling Stockholders may be deemed to be “underwriters” within the meaning of
      the Securities Act, they will be subject to the prospectus delivery requirements
      of the Securities Act including Rule 172 thereunder.  In addition, any
      securities covered by this prospectus which qualify for sale pursuant to Rule
      144 under the Securities Act may be sold under Rule 144 rather than under this
      prospectus.  There is no underwriter or coordinating broker acting in
      connection with the proposed sale of the resale shares by the Selling
      Stockholders.

     

    We
      agreed
      to keep this prospectus effective until the earlier of (i) the date on which
      the
      shares may be resold by the Selling Stockholders without registration and
      without regard to any volume limitations by reason of Rule 144(k) under the
      Securities Act or any other rule of similar effect or (ii) all of the shares
      have been sold pursuant to this prospectus or Rule 144 under the Securities
      Act
      or any other rule of similar effect.  The resale shares will be sold
      only through registered or licensed brokers or dealers if required under
      applicable state securities laws. In addition, in certain states, the resale
      shares may not be sold unless they have been registered or qualified for sale
      in
      the applicable state or an exemption from the registration or qualification
      requirement is available and is complied with.

     

    Under
      applicable rules and regulations under the Exchange Act, any person engaged
      in
      the distribution of the resale shares may not simultaneously engage in market
      making activities with respect to the common stock for the applicable restricted
      period, as defined in Regulation M, prior to the commencement of the
      distribution.  In addition, the Selling Stockholders will be subject
      to applicable provisions of the Exchange Act and the rules and regulations
      thereunder, including Regulation M, which may limit the timing of purchases
      and
      sales of shares of the common stock by the Selling Stockholders or any other
      person.  We will make copies of this prospectus available to the
      Selling Stockholders and have informed them of the need to deliver a copy of
      this prospectus to each purchaser at or prior to the time of the sale (including
      by compliance with Rule 172 under the Securities Act).

     

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    Annex
      B

     

    ZEALOUS
      TRADING GROUP, INC.

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock (the “Registrable
      Securities”) of Zealous Trading Group, Inc., a Nevada corporation (the
“Company”), understands that the Company has filed or intends to file
      with the Securities and Exchange Commission (the “Commission”) a
      registration statement (the “Registration Statement”) for the
      registration and resale under Rule 415 of the Securities Act of 1933, as amended
      (the “Securities Act”), of the Registrable Securities, in accordance with
      the terms of the Registration Rights Agreement (the “Registration Rights
      Agreement”) to which this document is annexed.  A copy of the
      Registration Rights Agreement is available from the Company upon request at
      the
      address set forth below.  All capitalized terms not otherwise defined
      herein shall have the meanings ascribed thereto in the Registration Rights
      Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus.  Accordingly,
      holders and beneficial owners of Registrable Securities are advised to consult
      their own securities law counsel regarding the consequences of being named
      or
      not being named as a selling securityholder in the Registration Statement and
      the related prospectus.

     

    NOTICE

     

    The
      undersigned beneficial owner (the “Selling Securityholder”) of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it in the Registration Statement.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    QUESTIONNAIRE

     

    
      
        	
                1.            
                  

              	
                Name.

              

      

    

     

    
      	
               

            	
              (a)

            	
              Full
                Legal Name of Selling Securityholder

               

               

            

    

     

    
      	
               

            	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities are held:

               

               

            

    

     

    
      	
               

            	
              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by this Questionnaire):

               

               

            

    

     

    
      
        
          	
                  2.            
                    

                	
                  Address
                    for Notices to Selling
                    Securityholder:

                

        

      

       

    

    
      	 
	 
	 
	
              Telephone:____________________________________________________________________________________________________________________________________

            
	
              Fax:__________________________________________________________________________________________________________________________________________

            
	
              Contact
                Person:________________________________________________________________________________________________________________________________

            

    

     

    
      
        
          	
                  3.            
                    

                	
                  Broker-Dealer
                    Status:

                

        

      

       

    

    
      	
               

            	
              (a)

            	
              Are
                you a broker-dealer?

            

    

     

    Yes   o                      No   o

     

    
      	
               

            	
              (b)

            	
              If
                “yes” to Section 3(a), did you receive your Registrable Securities as
                compensation for investment banking services to the
                Company?

            

    

     

    Yes   o                      No   o

     

    
      	
              Note:

            	
              If
                “no” to Section 3(b), the Commission’s staff has indicated that you should
                be identified as an underwriter in the Registration
                Statement.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              (c)

            	
              Are
                you an affiliate of a
                broker-dealer?

            

    

     

    Yes   o                      No   o

     

    
      	
               

            	
              (d)

            	
              If
                you are an affiliate of a broker-dealer, do you certify that you
                purchased
                the Registrable Securities in the ordinary course of business, and
                at the
                time of the purchase of the Registrable Securities to be resold,
                you had
                no agreements or understandings, directly or indirectly, with any
                person
                to distribute the Registrable
                Securities?

            

    

     

    Yes   o                      No   o

     

    
      	
              Note:

            	
              If
                “no” to Section 3(d), the Commission’s staff has indicated that you should
                be identified as an underwriter in the Registration
                Statement.

            

    

     

    
      
        
          
            	
                    4.            
                      

                  	
                    Beneficial
                      Ownership of Securities of the Company Owned by the Selling
                      Securityholder.

                  

          

        

         

      

    

    Except
      as set forth below in this Item 4, the undersigned is not the beneficial or
      registered owner of any securities of the Company other than the securities
      issuable pursuant to the Purchase Agreement.

     

    
      	
               

            	
              (a)

            	
              Type
                and Amount of other securities beneficially owned by the Selling
                Securityholder:

               

            
	 	 	 

    

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      
        
          
             

            
              	
                      5.            
                        

                    	
                      Relationships
                        with the Company:

                    

            

             

          

        

      

    

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

    
       

      State
        any
        exceptions here:

       

      _____________________________________________________________________________________________________________________________________

      
        _____________________________________________________________________________________________________________________________________

      

    

    
       

    

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 5 and the inclusion of such
      information in the Registration Statement and the related prospectus and any amendments or supplements
      thereto.  The undersigned understands that such information
      will be relied upon by the Company in connection with the preparation or
      amendment of the Registration Statement and the related prospectus.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    
      	Date:
              ___________________________________ 	Beneficial
              Owner: _______________________________
	 	 
	 	By:
              __________________________________________ 
	 	
                    
                Name:

                    
                Title: 

            

    

                                                                             

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:

     

    20zealous_8k-ex1004.htm

    EXHIBIT
      10.4

    

    SECURITY
      AGREEMENT

    

                This
      SECURITY AGREEMENT, dated as of October 17, 2007 (this “Agreement”),
      is among Zealous Trading Group, Inc., a Nevada corporation (the
“Company”), ASNI II, Inc., a Delaware corporation (“ASNI”),
      Zealous Holdings, Inc., a Delaware corporation (the “Guarantor” and
      together with the Company, the “Debtors”) and the holders of the
      Company’s 5% Senior Secured Convertible Debentures due October 17, 2008 and
      issued on October 17, 2007 in the original aggregate principal amount of
      $6,000,000 (collectively, the “Debentures”) signatory hereto,
      their endorsees, transferees and assigns (collectively, the “Secured
      Parties”).

    

    W
      I T N E S S E T H:

    

                WHEREAS,
      pursuant to the Purchase Agreement (as defined in the Debentures), the Secured
      Parties have severally agreed to extend the loans to the Company evidenced
      by
      the Debentures;

    

                WHEREAS,
      pursuant to a certain Guarantee, dated as of the date hereof (the
“Guarantee”), the Guarantor has agreed to guarantee and act as
      surety for payment of such Debentures; and

    

                WHEREAS,
      in order to induce the Secured Parties to extend the loans evidenced by the
      Debentures, each Debtor has agreed to execute and deliver to the Secured Parties
      this Agreement and to grant the Secured Parties, pari passu
      with each other Secured Party and through the Agent, a security interest in
      certain property of such Debtor to secure the prompt payment, performance and
      discharge in full of all of the Company’s obligations under the Debentures and
      the Guarantor’s obligations under the Guarantee.

    

                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 UCC
      (such as “account”, “chattel paper”, “commercial tort claim”, “deposit account”,
“document”, “equipment”, “fixtures”, “general intangibles”, “goods”,
“instruments”, “inventory”, “investment property”, “letter-of-credit rights”,
“proceeds” and “supporting obligations”) shall have the respective meanings
      given such terms in Article 9 of the UCC.

    

    (a)           “Collateral”
      means the collateral, except as set forth in Schedule 1(a) hereof, in
      which the Secured Parties are granted a security interest by this Agreement
      and
      which shall include the following personal property of the Debtors, whether
      presently owned or existing or hereafter acquired or coming into existence,
      wherever situated, and all additions and accessions thereto and all
      substitutions and replacements thereof, and all proceeds, products and accounts
      thereof, including, without limitation, all proceeds from the sale or transfer
      of the Collateral and of insurance covering the same and of any tort claims
      in
      connection therewith, and all dividends, interest, cash, notes, securities,
      equity interest or other property at any time and from time to time
      acquired:

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    (i)   All
      goods,
      including, without limitation, (A) all machinery, equipment, computers, 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, 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 any Debtor’s
      businesses and all improvements thereto; and (B) all inventory;

    

    (ii)           All
      contract rights and other general intangibles, including, without limitation,
      all partnership interests, membership interests, stock or other securities,
      rights under any of the Organizational Documents, licenses, distribution and
      other agreements, computer software (whether “off-the-shelf”, licensed from any
      third party or developed by any 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, and income tax refunds;

     

    (iii)           All
      accounts, 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 each account, including any right of
      stoppage in transit;

    

    (iv)           All
      documents, letter-of-credit rights, instruments and chattel paper;

    

    (v)           
      All commercial tort claims;

    

    (vi)           All
      deposit accounts and all cash (whether or not deposited in such deposit
      accounts);

    

    (vii)          All
      investment property;

    

    (viii)         All
      supporting obligations; and

    

    (ix)           All
      files, records, books of account, business papers, and computer programs;
      and

    

    (x)           
      the products and proceeds of all of the foregoing Collateral set forth in
      clauses (i)-(ix) above.

    

    Without
      limiting the generality of the foregoing, the “Collateral” shall include
      all investment property and general intangibles respecting ownership and/or
      other equity interests in each Guarantor, including, without limitation, the
      shares of capital stock and the other equity interests listed on Schedule
      H hereto (as the same may be modified from time to time pursuant to the
      terms hereof), and any other shares of capital stock and/or other equity
      interests of any other direct or indirect subsidiary of any Debtor obtained
      in
      the future, and, in each case, all certificates representing such shares and/or
      equity interests and, in each case, all rights, options, warrants, stock, other
      securities and/or equity interests that may hereafter be received, receivable
      or
      distributed in respect of, or exchanged for, any of the foregoing.

     

    Notwithstanding
      the foregoing, nothing herein shall be deemed to constitute an assignment of
      any
      asset which, in the event of an assignment, becomes void by operation of
      applicable law or the assignment of which is otherwise prohibited by applicable
      law (in each case to the extent that such applicable law is not overridden
      by
      Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law);
      provided, however, that to the extent permitted by applicable law,
      this Agreement shall create a valid security interest in such asset and, to
      the
      extent permitted by applicable law, this Agreement shall create a valid security
      interest in the proceeds of such asset.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (b)           “Intellectual
      Property” means the collective reference to all rights, priorities and
      privileges relating to intellectual property, whether arising under United
      States, multinational or foreign laws or otherwise, including, without
      limitation, (i) all copyrights arising under the laws of the United States,
      any
      other country or any political subdivision thereof, whether registered or
      unregistered and whether published or unpublished, all registrations and
      recordings thereof, and all applications in connection therewith, including,
      without limitation, all registrations, recordings and applications in the United
      States Copyright Office, (ii) all letters patent of the United States, any
      other
      country or any political subdivision thereof, all reissues and extensions
      thereof, and all applications for letters patent of the United States or any
      other country and all divisions, continuations and continuations-in-part
      thereof, (iii) all trademarks, trade names, corporate names, company names,
      business names, fictitious business names, trade dress, service marks, logos,
      domain names and other source or business identifiers, and all goodwill
      associated therewith, now existing or hereafter adopted or acquired, all
      registrations and recordings thereof, and all applications in connection
      therewith, whether in the United States Patent and Trademark Office or in any
      similar office or agency of the United States, any State thereof or any
      other country or any political subdivision thereof, or otherwise, and all common
      law rights related thereto, (iv) all trade secrets arising under the laws of
      the
      United States, any other country or any political subdivision thereof, (v)
      all
      rights to obtain any reissues, renewals or extensions of the foregoing, (vi)
      all
      licenses for any of the foregoing, and (vii) all causes of action for
      infringement of the foregoing.

    

               (c)           “Majority
      in Interest” means, at any time of determination, the majority in
      interest (based on then-outstanding principal amounts of Debentures at the
      time
      of such determination) of the Secured Parties.

    

               (d)           “Necessary
      Endorsement” means undated stock powers endorsed in blank or other
      proper instruments of assignment duly executed and such other instruments or
      documents as the Agent (as that term is defined below) may reasonably
      request.

     

    (e)           “Obligations” means
      all of the liabilities and payment obligations (primary, secondary, direct,
      contingent, sole, joint or several) due or to become due, or that are now or
      may
      be hereafter contracted or acquired, or owing to, of any Debtor to the Secured
      Parties, under the Debentures 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 any of 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.  Without limiting the generality of the foregoing, the term
“Obligations” shall include, without limitation: (i) principal of, and interest
      on the Debentures and the loans extended pursuant thereto; (ii) any and all
      other fees, indemnities, costs, obligations and liabilities of the Debtors
      from
      time to time under or in connection with the Debentures; and (iii) all amounts
      (including but not limited to post-petition interest) in respect of the
      foregoing that would be payable but for the fact that the obligations to pay
      such amounts are unenforceable or not allowable due to the existence of a
      bankruptcy, reorganization or similar proceeding involving any
      Debtor.

    

    (f)           “Organizational
      Documents” means with respect to any Debtor, the documents by which such
      Debtor was organized (such as a certificate of incorporation, certificate of
      limited partnership or articles of organization, and including, without
      limitation, any certificates of designation for preferred stock or other forms
      of preferred equity) and which relate to the internal governance of such Debtor
      (such as bylaws, a partnership agreement or an operating, limited liability
      or
      members agreement).

    

    (h)           “UCC”
      means the Uniform Commercial Code of the State of New York and or any other
      applicable law of any state or states which has jurisdiction with respect to
      all, or any portion of, the Collateral or this Agreement, from time to
      time.  It is the intent of the parties that defined terms in the UCC
      should be construed in their broadest sense so that the term “Collateral”
will be construed in its broadest sense.  Accordingly if there are,
      from time to time, changes to defined terms in the UCC that broaden the
      definitions, they are incorporated herein and if existing definitions in the
      UCC
      are broader than the amended definitions, the existing ones shall be
      controlling.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

               2.    Grant
      of Security Interest in
      Collateral. As an inducement for the Secured Parties to extend the
      loans 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, each Debtor hereby unconditionally and irrevocably pledges, grants
      and hypothecates to the Secured Parties a security interest in and to, a lien
      upon and a right of set-off against all of their respective right, title and
      interest of whatsoever kind and nature in and to, the Collateral (a “Security
      Interest” and, collectively, the “Security Interests”). The
      grant of the Security Interests herein shall immediately terminate, and Pledgor
      is authorized to execute and file UCC termination statements thereafter, upon
      the satisfaction of all payment obligations under the Debenture.

    

               3.    Delivery
      of
      Certain Collateral.  Contemporaneously or prior to the
      execution of this Agreement, each Debtor shall deliver or cause to be delivered
      to the Agent any and all certificates and other instruments or documents
      representing any of the other Collateral, in each case, together with all
      Necessary Endorsements.  The Debtors are, contemporaneously with the
      execution hereof, delivering to Agent, or have previously delivered to Agent,
      a
      true and correct copy of each Organizational Document governing any of the
      Pledged Securities.

    

                4.    Representations,
      Warranties, Covenants and Agreements of the Debtors. Except as set
      forth under the corresponding section of the disclosure schedules delivered
      to
      the Secured Parties concurrently herewith (the “Disclosure Schedules”),
      which Disclosure Schedules shall be deemed a part hereof, each Debtor represents
      and warrants to, and covenants and agrees with, the Secured Parties as
      follows:

    

    (a)    Each
      Debtor
      has the requisite corporate, partnership, limited liability company or other
      power and authority to enter into this Agreement and otherwise to carry out
      its
      obligations hereunder. The execution, delivery and performance by each Debtor
      of
      this Agreement and the filings contemplated therein have been duly authorized
      by
      all necessary action on the part of such Debtor and no further action is
      required by such Debtor.  This Agreement has been duly executed by
      each Debtor.  This Agreement constitutes the legal, valid and binding
      obligation of each Debtor, enforceable against each Debtor in accordance with
      its terms except as such enforceability may be limited by applicable bankruptcy,
      insolvency, reorganization and similar laws of general application relating
      to
      or affecting the rights and remedies of creditors and by general principles
      of
      equity.

    

     (b)           The
      Debtors have no place of business or offices where their respective 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.  Except as
      specifically set forth on Schedule A, each Debtor is the record owner of
      the real property where such Collateral is located, and there exist no mortgages
      or other liens on any such real property except for Permitted Liens (as defined
      in the Debentures).  Except as disclosed on Schedule A, none of
      such Collateral is in the possession of any consignee, bailee, warehouseman,
      agent or processor.

    

    (c)           Except
      for Permitted Liens (as defined in the Debentures) and except as set forth
      on
Schedule B attached hereto, the Debtors are the sole owner of the
      Collateral (except for non-exclusive licenses granted by any Debtor in the
      ordinary course of business), free and clear of any liens, security interests,
      encumbrances, rights or claims, and are fully authorized to grant the Security
      Interests.  Except as set forth on Schedule B attached hereto,
      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.  Except as set forth on Schedule
      B attached hereto and except pursuant to this Agreement, as long as this
      Agreement shall be in effect, the Debtors shall not execute and shall not
      knowingly permit to be on file in any such office or agency any other 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).

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (d)           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 any Debtor's claim of ownership rights in or exclusive rights to
      use
      the Collateral in any jurisdiction or to any 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 any Debtor, threatened before
      any court, judicial body, administrative or regulatory agency, arbitrator or
      other governmental authority.

    

    (e)           Each
      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) 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 Interests 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, subject only to Permitted Liens (as defined in the
      Debentures) securing the payment and performance of the
      Obligations.  Upon making the filings described in the immediately
      following paragraph, all security interests created hereunder in any Collateral
      which may be perfected by filing Uniform Commercial Code financing statements
      shall have been duly perfected.  Except for the execution and delivery
      of deposit account control agreements satisfying the requirements of Section
      9-104(a)(2) of the UCC with respect to each deposit account of the Debtors,
      and
      the delivery of the certificates and other instruments provided in Section
      3, no
      action is necessary to create, perfect or protect the security interests created
      hereunder.  Without limiting the generality of the foregoing, except
      for the filing of said financing statements, the recordation of said
      Intellectual Property Security Agreement, and the execution and delivery of
      said
      deposit account control agreements, no consent of any third parties and no
      authorization, approval or other action by, and no notice to or filing with,
      any
      governmental authority or regulatory body is required for (i) the execution,
      delivery and performance of this Agreement, (ii) the creation or perfection
      of
      the Security Interests created hereunder in the Collateral or (iii) the
      enforcement of the rights of the Agent and the Secured Parties
      hereunder.

    

     (g)           Each
      Debtor hereby authorizes the Agent to file one or more financing statements
      under the UCC, with respect to the Security Interests, with the proper filing
      and recording agencies in any jurisdiction deemed proper by it.

    

     (h)           The
      execution, delivery and performance of this Agreement by the Debtors does not
      (i) violate any of the provisions of any Organizational Documents of any Debtor
      or any judgment, decree, order or award of any court, governmental body or
      arbitrator or any applicable law, rule or regulation applicable to any Debtor
      or
      (ii) 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 any Debtor's debt or otherwise) or other understanding
      to
      which any Debtor is a party or by which any property or asset of any Debtor
      is
      bound or affected. If any, all required consents (including, without limitation,
      from stockholders or creditors of any Debtor) necessary for any Debtor to enter
      into and perform its obligations hereunder have been obtained.

    

     (i)            RESERVED.  

    

     (j)           The
      ownership and other equity interests in partnerships and limited liability
      companies (if any) included in the Collateral (the “Pledged Interests”)
      by their express terms do not provide that they are securities governed by
      Article 8 of the UCC and are not held in a securities account or by any
      financial intermediary.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (k)           Except
      for Permitted Liens (as defined in the Debentures), each Debtor shall at all
      times maintain the liens and Security Interests 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.  Each
      Debtor hereby agrees to defend the same against the claims of any and all
      persons and entities. Each Debtor shall safeguard and protect all Collateral
      for
      the account of the Secured Parties.  At the request of the Agent, each
      Debtor will sign and deliver to the Agent on behalf of 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 Agent and will pay the cost of filing
      the same in all public offices wherever filing is, or is deemed by the Agent
      to
      be, necessary or desirable to effect the rights and obligations provided for
      herein. Without limiting the generality of the foregoing, each Debtor shall
      pay
      all fees, taxes and other amounts necessary to maintain the Collateral and
      the
      Security Interests hereunder, and each Debtor shall obtain and furnish to the
      Agent 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
      Interests hereunder.

    

    (l)           No
      Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise
      dispose of any of the Collateral (except for non-exclusive licenses granted
      by a
      Debtor in its ordinary course of business and sales of inventory by a Debtor
      in
      its ordinary course of business) without the prior written consent of a Majority
      in Interest.

    

    (m)        
      Each 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.

    

    (n)           Each
      Debtor shall maintain with financially sound and reputable insurers, insurance
      with respect to the Collateral, including Collateral hereafter acquired, against
      loss or damage of the kinds and in the amounts customarily insured against
      by
      entities of established reputation having similar properties similarly situated
      and in such amounts as are customarily carried under similar circumstances
      by
      other such entities and otherwise as is prudent for entities engaged in similar
      businesses but in any event sufficient to cover the full replacement cost
      thereof.  Each Debtor shall cause each insurance policy issued in
      connection herewith to provide, and the insurer issuing such policy to certify
      to the Agent, that (a) the Agent will be named as lender loss payee and
      additional insured under each such insurance policy; (b) if such insurance
      be
      proposed to be cancelled or materially changed for any reason whatsoever, such
      insurer will promptly notify the Agent and such cancellation or change shall
      not
      be effective as to the Agent for at least thirty (30) days after receipt by
      the
      Agent of such notice, unless the effect of such change is to extend or increase
      coverage under the policy; and (c) the Agent will have the right (but no
      obligation) at its election to remedy any default in the payment of premiums
      within thirty (30) days of notice from the insurer of such
      default.  If no Event of Default (as defined in the Debentures) exists
      and if the proceeds arising out of any claim or series of related claims do
      not
      exceed $100,000, loss payments in each instance will be applied by the
      applicable Debtor to the repair and/or replacement of property with respect
      to
      which the loss was incurred to the extent reasonably feasible, and any loss
      payments or the balance thereof remaining, to the extent not so applied, shall
      be payable to the applicable Debtor; provided, however, that
      payments received by any Debtor after an Event of Default occurs and is
      continuing or in excess of $100,000 for any occurrence or series of related
      occurrences shall be paid to the Agent on behalf of the Secured Parties and,
      if
      received by such Debtor, shall be held in trust for the Secured Parties and
      immediately paid over to the Agent unless otherwise directed in writing by
      the
      Agent.   Copies of such policies or the related certificates, in
      each case, naming the Agent as lender loss payee and additional insured shall
      be
      delivered to the Agent at least annually and at the time any new policy of
      insurance is issued.

    

    (o)          Each
      Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the
      Secured Parties promptly, in sufficient detail, of any material adverse 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, through the Agent, therein.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

     (p)    Each
      Debtor
      shall promptly execute and deliver to the Agent such further deeds, mortgages,
      assignments, security agreements, financing statements or other instruments,
      documents, certificates and assurances and take such further action as the
      Agent
      may from time to time request and may in its sole discretion deem necessary
      to
      perfect, protect or enforce the Secured Parties’ security interest in the
      Collateral in which the Secured Parties have been granted a security interest
      hereunder, substantially in a form reasonably acceptable to the Agent, which
      Intellectual Property Security Agreement, other than as stated therein, shall
      be
      subject to all of the terms and conditions hereof.

    

    (q)    Each
      Debtor
      shall permit the Agent and its representatives and agents to inspect the
      Collateral during normal business hours and upon reasonable prior notice, and
      to
      make copies of records pertaining to the Collateral as may be reasonably
      requested by the Agent from time to time.

    

    (r)    Each
      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.

    

    (s)           Each
      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 such
      Debtor that may materially affect the value of the Collateral, the Security
      Interest or the rights and remedies of the Secured Parties
      hereunder.

    

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

    

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

    

    (v)           No
      Debtor will change its name, type of organization, jurisdiction of organization,
      organizational identification number (if it has one), legal or 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, such Debtor provides any financing
      statements or fixture filings necessary to perfect and continue the perfection
      of the Security Interests granted and evidenced by this Agreement.

    

    (w)   Except
      in the
      ordinary course of business, no Debtor may 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 Agent which shall
      not
      be unreasonably withheld.

    

    (x)    No
      Debtor may
      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, such Debtor provides any financing statements
      or fixture filings necessary to perfect and continue the perfection of the
      Security Interests granted and evidenced by this Agreement.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

     (y)           Each
      Debtor was organized and remains organized solely under the laws of the state
      set forth next to such Debtor’s name in Schedule D attached hereto, which
Schedule D sets forth each Debtor’s organizational identification number
      or, if any Debtor does not have one, states that one does not
      exist.

    

    (z)           
      (i) The actual name of each Debtor is the name set forth in Schedule
      D attached hereto; (ii) no Debtor has any trade names except as set forth
      on
Schedule E attached hereto; (iii) no Debtor has used any name other than
      that stated in the preamble hereto or as set forth on Schedule E for the
      preceding five years; and (iv) no entity has merged into any Debtor or been
      acquired by any Debtor within the past five years except as set forth on
Schedule E.

    

    (aa)   At
      any time and
      from time to time that any Collateral consists of instruments, certificated
      securities or other items that require or permit possession by the secured
      party
      to perfect the security interest created hereby, the applicable Debtor shall
      deliver such Collateral to the Agent.

    

    (bb)           Each
      Debtor, in its capacity as issuer, hereby agrees to comply with any and all
      orders and instructions of Agent regarding the Pledged Interests consistent
      with
      the terms of this Agreement without the further consent of any Debtor as
      contemplated by Section 8-106 (or any successor section) of the
      UCC.  Further, each Debtor agrees that it shall not enter into a
      similar agreement (or one that would confer “control” within the meaning of
      Article 8 of the UCC) with any other person or entity.

     

    (cc)           Each
      Debtor shall cause all tangible chattel paper constituting Collateral to be
      delivered to the Agent, or, if such delivery is not possible, then to cause
      such
      tangible chattel paper to contain a legend noting that it is subject to the
      security interest created by this Agreement.  To the extent that any
      Collateral consists of electronic chattel paper, the applicable Debtor shall
      cause the underlying chattel paper to be “marked” within the meaning of Section
      9-105 of the UCC (or successor section thereto).

    

    (dd)           If
      there is any investment property or deposit account included as Collateral
      that
      can be perfected by “control” through an account control agreement, the
      applicable Debtor shall cause such an account control agreement, in form and
      substance in each case satisfactory to the Agent, to be entered into and
      delivered to the Agent for the benefit of the Secured Parties.

    

    (ee)            To
      the extent that any Collateral consists of letter-of-credit rights, the
      applicable Debtor shall cause the issuer of each underlying letter of credit
      to
      consent to an assignment of the proceeds thereof to the Secured
      Parties.

    

    (ff)              To
      the extent that any Collateral is in the possession of any third party, the
      applicable Debtor shall join with the Agent in notifying such third party of
      the
      Secured Parties’ security interest in such Collateral and shall use its best
      efforts to obtain an acknowledgement and agreement from such third party with
      respect to the Collateral, in form and substance reasonably satisfactory to
      the
      Agent.

    

    (gg)            If
      any Debtor shall at any time hold or acquire a commercial tort claim, such
      Debtor shall promptly notify the Secured Parties in a writing signed by such
      Debtor of the particulars thereof and grant to the Secured Parties in such
      writing a security interest therein and in the proceeds thereof, all upon the
      terms of this Agreement, with such writing to be in form and substance
      satisfactory to the Agent.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    (hh)          Each
      Debtor shall immediately provide written notice to the Secured Parties of any
      and all accounts which arise out of contracts with any governmental authority
      and, to the extent necessary to perfect or continue the perfected status of
      the
      Security Interests in such accounts and proceeds thereof, shall execute and
      deliver to the Agent an assignment of claims for such accounts and cooperate
      with the Agent in taking any other steps required, in its judgment, under the
      Federal Assignment of Claims Act or any similar federal, state or local statute
      or rule to perfect or continue the perfected status of the Security Interests
      in
      such accounts and proceeds thereof.

    

     (ii)           Each
      Debtor shall cause each subsidiary of such Debtor to immediately become a party
      hereto (an “Additional Debtor”), by executing and delivering an
      Additional Debtor Joinder in substantially the form of Annex A attached
      hereto and comply with the provisions hereof applicable to the
      Debtors.  Concurrent therewith, the Additional Debtor shall deliver
      replacement schedules for, or supplements to all other Schedules to (or referred
      to in) this Agreement, as applicable, which replacement schedules shall
      supersede, or supplements shall modify, the Schedules then in
      effect.  The Additional Debtor shall also deliver such opinions of
      counsel, authorizing resolutions, good standing certificates, incumbency
      certificates, organizational documents, financing statements and other
      information and documentation as the Agent may reasonably
      request.  Upon delivery of the foregoing to the Agent, the Additional
      Debtor shall be and become a party to this Agreement with the same rights and
      obligations as the Debtors, for all purposes hereof as fully and to the same
      extent as if it were an original signatory hereto and shall be deemed to have
      made the representations, warranties and covenants set forth herein as of the
      date of execution and delivery of such Additional Debtor Joinder, and all
      references herein to the “Debtors” shall be deemed to include each Additional
      Debtor.

    

    (jj)    Each
      Debtor
      shall vote the Pledged Securities to comply with the covenants and agreements
      set forth herein and in the Debentures.

    

    (kk)          Each
      Debtor shall register the pledge of the applicable Pledged Securities on the
      books of such Debtor.  Each Debtor shall notify each issuer of Pledged
      Securities to register the pledge of the applicable Pledged Securities in the
      name of the Secured Parties on the books of such issuer.  Further,
      except with respect to certificated securities delivered to the Agent, the
      applicable Debtor shall deliver to Agent an acknowledgement of pledge
      (which, where appropriate, shall comply with the requirements of the
      relevant UCC with respect to perfection by registration) signed by the issuer
      of
      the applicable Pledged Securities, which acknowledgement shall confirm that:
      (a)
      it has registered the pledge on its books and records; and (b) at any time
      directed by Agent during the continuation of an Event of Default, such issuer
      will transfer the record ownership of such Pledged Securities into the name
      of
      any designee of Agent, will take such steps as may be necessary to effect the
      transfer, and will comply with all other instructions of Agent regarding such
      Pledged Securities without the further consent of the applicable
      Debtor.

    

    (ll)           In
      the event that, upon an occurrence of an Event of Default, Agent shall sell
      all
      or any of the Pledged Securities to another party or parties (herein called
      the
“Transferee”) or shall purchase or retain all or any of the Pledged
      Securities, each Debtor shall, to the extent applicable: (i) deliver to Agent
      or
      the Transferee, as the case may be, the articles of incorporation, bylaws,
      minute books, stock certificate books, corporate seals, deeds, leases,
      indentures, agreements, evidences of indebtedness, books of account, financial
      records and all other Organizational Documents and records of the Debtors
      and their direct and indirect subsidiaries; (ii) use its best efforts to obtain
      resignations of the persons then serving as officers and directors of the
      Debtors and their direct and indirect subsidiaries, if so requested; and
      (iii) use its best efforts to obtain any approvals that are required by any
      governmental or regulatory body in order to permit the sale of the Pledged
      Securities to the Transferee or the purchase or retention of the Pledged
      Securities by Agent and allow the Transferee or Agent to continue the business
      of the Debtors and their direct and indirect subsidiaries.

     

    (mm)        Without
      limiting the generality of the other obligations of the Debtors hereunder,
      each
      Debtor shall promptly (i) cause to be registered at the United States Copyright
      Office all of its material copyrights, (ii) cause the security interest
      contemplated hereby with respect to all Intellectual Property registered at
      the
      United States Copyright Office or United States Patent and Trademark Office
      to
      be duly recorded at the applicable office, and (iii) give the Agent notice
      whenever it acquires (whether absolutely or by license) or creates any
      additional material Intellectual Property.

    

     (nn)          Each
      Debtor will from time to time, at the joint and several expense of the Debtors,
      promptly execute and deliver all such further instruments and documents, and
      take all such further action as may be necessary or desirable, or as the Agent
      may reasonably request, in order to perfect and protect any security interest
      granted or purported to be granted hereby or to enable the Secured Parties
      to
      exercise and enforce their rights and remedies hereunder and with respect to
      any
      Collateral or to otherwise carry out the purposes of this
      Agreement.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    (oo)           Schedule
      F attached hereto lists all of the patents, patent applications, trademarks,
      trademark applications, registered copyrights, and domain names owned by any
      of
      the Debtors as of the date hereof.  Schedule F lists all
      material licenses in favor of any Debtor for the use of any patents, trademarks,
      copyrights and domain names as of the date hereof.  All material
      patents and trademarks of the Debtors have been duly recorded at the United
      States Patent and Trademark Office and all material copyrights of the Debtors
      have been duly recorded at the United States Copyright Office.

    

    (pp)           Except
      as set forth on Schedule G attached hereto, none of the account debtors
      or other persons or entities obligated on any of the Collateral is a
      governmental authority covered by the Federal Assignment of Claims Act or any
      similar federal, state or local statute or rule in respect of such
      Collateral.

    

               5.    Effect
      of
      Pledge on Certain Rights. If any of the
      Collateral subject to this Agreement consists of nonvoting equity or ownership
      interests (regardless of class, designation, preference or rights) that may
      be
      converted into voting equity or ownership interests upon the occurrence of
      certain events (including, without limitation, upon the transfer of all or
      any
      of the other stock or assets of the issuer), it is agreed that the pledge of
      such equity or ownership interests pursuant to this Agreement or the enforcement
      of any of Agent’s rights hereunder shall not be deemed to be the type of event
      which would trigger such conversion rights notwithstanding any provisions in
      the
      Organizational Documents or agreements to which any Debtor is subject or to
      which any Debtor is party.

    

               6.    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 any Debtor in this Agreement shall prove to have
      been incorrect in any material respect when made;

    

    (c)    The
      failure
      by any Debtor to observe or perform any of its obligations hereunder for ten
      (10) days after delivery to such Debtor of notice of such failure by or on
      behalf of a Secured Party unless such default is capable of cure but cannot
      be
      cured within such time frame and such Debtor is using best efforts to cure
      same
      in a timely fashion; 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
      any Debtor, or a proceeding shall be commenced by any Debtor, or by any
      governmental authority having jurisdiction over any Debtor, seeking to establish
      the invalidity or unenforceability thereof, or any Debtor shall deny that any
      Debtor has any liability or obligation purported to be created under this
      Agreement.

    

             7.    Duty
      To Hold In Trust.

    

    (a)           Upon
      the occurrence of any Event of Default and at any time thereafter, each Debtor
      shall, upon receipt of any revenue, income, dividend, interest or other sums
      subject to the Security Interests, 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, pro-rata in proportion to their
      respective then-currently outstanding principal amount of Debentures for
      application to the satisfaction of the Obligations (and if any Debenture is
      not
      outstanding, pro-rata in proportion to the initial purchases of the remaining
      Debentures).

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (b)           If
      any Debtor shall become entitled to receive or shall receive any securities
      or
      other property (including, without limitation, shares of Pledged Securities
      or
      instruments representing Pledged Securities acquired after the date hereof,
      or
      any options, warrants, rights or other similar property or certificates
      representing a dividend, or any distribution in connection with any
      recapitalization, reclassification or increase or reduction of capital, or
      issued in connection with any reorganization of such Debtor or any of its direct
      or indirect subsidiaries) in respect of the Pledged Securities (whether as
      an
      addition to, in substitution of, or in exchange for, such Pledged Securities
      or
      otherwise), such Debtor agrees to (i) accept the same as the agent of the
      Secured Parties; (ii) hold the same in trust on behalf of and for the benefit
      of
      the Secured Parties; and (iii) to deliver any and all certificates or
      instruments evidencing the same to Agent on or before the close of business
      on
      the fifth business day following the receipt thereof by such Debtor, in the
      exact form received together with the Necessary Endorsements, to be held by
      Agent subject to the terms of this Agreement as Collateral.

    

                8.    Rights
      and
      Remedies Upon Default.

    

               (a)           Upon
      the occurrence of any Event of Default and at any time thereafter, the Secured
      Parties, acting through the Agent, 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 Agent, for the benefit of the Secured
      Parties, shall have the following rights and powers:

    

    (i)    The
      Agent 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 each Debtor shall assemble the Collateral and make it available to
      the
      Agent at places which the Agent shall reasonably select, whether at such
      Debtor's premises or elsewhere, and make available to the Agent, without rent,
      all of such Debtor’s respective premises and facilities for the purpose of the
      Agent taking possession of, removing or putting the Collateral in saleable
      or
      disposable form.

    

    (ii)           
      Upon notice to the Debtors by Agent, all rights of each Debtor to exercise
      the
      voting and other consensual rights which it would otherwise be entitled to
      exercise and all rights of each Debtor to receive the dividends and interest
      which it would otherwise be authorized to receive and retain, shall
      cease.  Upon such notice, Agent shall have the right to receive, for
      the benefit of the Secured Parties, any interest, cash dividends or other
      payments on the Collateral and, at the option of Agent, to exercise in such
      Agent’s discretion all voting rights pertaining thereto.  Without
      limiting the generality of the foregoing, Agent shall have the right (but not
      the obligation) to exercise all rights with respect to the Collateral as it
      were
      the sole and absolute owner thereof, including, without limitation, to vote
      and/or to exchange, at its sole discretion, any or all of the Collateral in
      connection with a merger, reorganization, consolidation, recapitalization or
      other readjustment concerning or involving the Collateral or any Debtor or
      any
      of its direct or indirect subsidiaries.

    

    (iii)    The
      Agent
      shall have the right to operate the business of each 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 Agent 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 any 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 Agent, for the benefit of 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 any Debtor, which
      are
      hereby waived and released.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    (iv)            The
      Agent shall have the right (but not the obligation) to notify any account
      debtors and any obligors under instruments or accounts to make payments directly
      to the Agent, on behalf of the Secured Parties, and to enforce the Debtors’
rights against such account debtors and obligors.

    

    (v)             The
      Agent, for the benefit of the Secured Parties, may (but is not obligated to)
      direct any financial intermediary or any other person or entity holding any
      investment property to transfer the same to the Agent, on behalf of the Secured
      Parties, or its designee.

    

    (vi)            The
      Agent may (but is not obligated to) transfer any or all Intellectual Property
      registered in the name of any Debtor at the United States Patent and Trademark
      Office and/or Copyright Office into the name of the Secured Parties or any
      designee or any purchaser of any Collateral.

    

               (b)           The
      Agent shall comply with any applicable law in connection with a disposition
      of
      Collateral and such compliance will not be considered adversely to affect the
      commercial reasonableness of any sale of the Collateral.  The Agent
      may sell the Collateral without giving any warranties and may specifically
      disclaim such warranties.  If the Agent sells any of the Collateral on
      credit, the Debtors will only be credited with payments actually made by the
      purchaser.  In addition, each Debtor waives any and all rights that it
      may have to a judicial hearing in advance of the enforcement of any of the
      Agent’s rights and remedies hereunder, including, without limitation, its right
      following an Event of Default to take immediate possession of the Collateral
      and
      to exercise its rights and remedies with respect thereto.

     

    (c)           For
      the purpose of enabling the Agent to further exercise rights and remedies under
      this Section 8 or elsewhere provided by agreement or applicable law, each Debtor
      hereby grants to the Agent, for the benefit of the Agent and the Secured
      Parties, an irrevocable, nonexclusive license (exercisable without payment
      of
      royalty or other compensation to such Debtor) to use, license or sublicense
      following an Event of Default, any Intellectual Property now owned or hereafter
      acquired by such Debtor, and wherever the same may be located, and including
      in
      such license access to all media in which any of the licensed items may be
      recorded or stored and to all computer software and programs used for the
      compilation or printout thereof.

    

                9.              Applications
      of Proceeds. The proceeds of any such sale, lease or other disposition
      of the Collateral hereunder or from payments made on account of any insurance
      policy insuring any portion of the Collateral 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 Agent in enforcing the Secured
      Parties’ rights hereunder and in connection with collecting, storing and
      disposing of the Collateral, and then to satisfaction of the Obligations pro
      rata among the Secured Parties (based on then-outstanding principal amounts
      of
      Debentures at the time of any such determination), and to the payment of any
      other amounts required by applicable law, after which the Secured Parties shall
      pay to the applicable 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 Debtors
      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, each 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 solely to the gross negligence or willful misconduct
      of
      the Secured Parties as determined by a final judgment (not subject to further
      appeal) of a court of competent jurisdiction.

    

               10.           Securities
      Law Provision.  Each Debtor recognizes that Agent may be
      limited in its ability to effect a sale to the public of all or part of the
      Pledged Securities by reason of certain prohibitions in the Securities Act
      of
      1933, as amended, or other federal or state securities laws (collectively,
      the
“Securities Laws”), and may be compelled to resort to one or more sales
      to a restricted group of purchasers who may be required to agree to acquire
      the
      Pledged Securities for their own account, for investment and not with a view
      to
      the distribution or resale thereof.  Each Debtor agrees that
      sales so made may be at prices and on terms less favorable than if the Pledged
      Securities were sold to the public, and that Agent has no obligation to delay
      the sale of any Pledged Securities for the period of time necessary to
      register the Pledged Securities for sale to the public under the Securities
      Laws.  Each Debtor shall cooperate with Agent in its attempt to
      satisfy any requirements under the Securities Laws (including, without
      limitation, registration thereunder if requested by Agent) applicable to the
      sale of the Pledged Securities by Agent.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

                11.              Costs
      and Expenses. Each 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
      Agent.  The Debtors shall also pay all other claims and charges which
      in the reasonable opinion of the Agent is reasonably likely to prejudice,
      imperil or otherwise affect the Collateral or the Security Interests
      therein.  The Debtors will also, upon demand, pay to the Agent 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 Agent, for
      the
      benefit of 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.

    

                12.              Responsibility
      for Collateral. The Debtors assume 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.  Without
      limiting the generality of the foregoing, (a) neither the Agent nor any Secured
      Party (i) has any duty (either before or after an Event of Default) to collect
      any amounts in respect of the Collateral or to preserve any rights relating
      to
      the Collateral, or (ii) has any obligation to clean-up or otherwise prepare
      the
      Collateral for sale, and (b) each Debtor shall remain obligated and liable
      under
      each contract or agreement included in the Collateral to be observed or
      performed by such Debtor thereunder.  Neither the Agent nor any
      Secured Party shall have any obligation or liability under any such contract
      or
      agreement by reason of or arising out of this Agreement or the receipt by the
      Agent or any Secured Party of any payment relating to any of the Collateral,
      nor
      shall the Agent or any Secured Party be obligated in any manner to perform
      any
      of the obligations of any Debtor under or pursuant to any such contract or
      agreement, to make inquiry as to the nature or sufficiency of any payment
      received by the Agent or any Secured Party in respect of the Collateral or
      as to
      the sufficiency of any performance by any party under any such contract or
      agreement, to present or file any claim, to take any action to enforce any
      performance or to collect the payment of any amounts which may have been
      assigned to the Agent or to which the Agent or any Secured Party may be
      entitled at any time or times.

    

               13.           Security
      Interests Absolute. All rights of the
      Secured Parties and all obligations of the Debtors 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 guarantee, 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 Interests 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.  Each 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, each 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.  Each Debtor waives all right to require the
      Secured Parties to proceed against any other person or entity or to apply any
      Collateral which the Secured Parties may hold at any time, or to marshal assets,
      or to pursue any other remedy. Each Debtor waives any defense arising by reason
      of the application of the statute of limitations to any obligation secured
      hereby.

    

    
      
        
        

      

      
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                14.
                    Term
      of Agreement. This Agreement and the Security Interests shall terminate
      on the date on which all payments under the Debentures have been indefeasibly
      paid in full and all other Obligations have been paid or discharged; provided,
      however, that all indemnities of the Debtors contained in this Agreement
      (including, without limitation, Annex B hereto) shall survive and remain
      operative and in full force and effect regardless of the termination of this
      Agreement.

    

    15.
                 Power
      of Attorney; Further Assurances.

    

     (a)           Each
      Debtor authorizes the Agent, and does hereby make, constitute and appoint the
      Agent and its officers, agents, successors or assigns with full power of
      substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in
      the name of the Agent or such 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 Agent; (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; (v) to transfer any
      Intellectual Property or provide licenses respecting any Intellectual Property;
      and (vi) generally, at the option of the Agent, and at the expense of the
      Debtors, at any time, or from time to time, to execute and deliver any and
      all
      documents and instruments and to do all acts and things which the Agent deems
      necessary to protect, preserve and realize upon the Collateral and the Security
      Interests granted therein in order to effect the intent of this Agreement and
      the Debentures all as fully and effectually as the Debtors might or could do;
      and each 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.  The designation set forth herein shall be deemed to
      amend and supersede any inconsistent provision in the Organizational Documents
      or other documents or agreements to which any Debtor is subject or to which
      any
      Debtor is a party.  Without limiting the generality of the foregoing,
      after the occurrence and during the continuance of an Event of Default, each
      Secured Party is specifically authorized to execute and file any applications
      for or instruments of transfer and assignment of any patents, trademarks,
      copyrights or other Intellectual Property with the United States Patent and
      Trademark Office and the United States Copyright Office.

    

     (b)           On
      a continuing basis, each 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 C attached hereto, all such instruments, and take all such
      action as may reasonably be deemed necessary or advisable, or as reasonably
      requested by the Agent, to perfect the Security Interests granted hereunder
      and
      otherwise to carry out the intent and purposes of this Agreement, or for
      assuring and confirming to the Agent the grant or perfection of a perfected
      security interest in all the Collateral under the UCC.

    

    (c)           Each
      Debtor hereby irrevocably appoints the Agent as such Debtor’s attorney-in-fact,
      with full authority in the place and instead of such Debtor and in the name
      of
      such Debtor, from time to time in the Agent’s discretion, to take any action and
      to execute any instrument which the Agent 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
      such Debtor where permitted by law, which financing statements may (but
      need not) describe the Collateral as “all assets” or “all personal property” or
      words of like import, and ratifies all such actions taken by the
      Agent.  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.

    

                16.              Notices.
      All notices, requests, demands and other communications hereunder shall be
      subject to the notice provision of the Purchase Agreement (as such term is
      defined in the Debentures).

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

                17.              Other
      Security. To the extent that the Obligations are now or
      hereafter  secured by property other than the Collateral or by the
      guarantee, endorsement or property of any other person, firm, corporation or
      other entity, then the Agent shall have the right, in its 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.

    

               18.           Appointment
      of Agent. The Secured Parties hereby appoint Fennemore Craig,
      P.C. to act as their agent (“Agent”) for purposes of exercising any
      and all rights and remedies of the Secured Parties hereunder. Such appointment
      shall continue until revoked in writing by a Majority in Interest, at which
      time
      a Majority in Interest shall appoint a new Agent.  The Agent shall
      have the rights, responsibilities and immunities set forth in Annex
      B hereto.

     

                19.              Miscellaneous.

    

    (a)           No
      course of dealing between the Debtors 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, together with the exhibits and schedules hereto, contain the entire
      understanding of the parties with respect to the subject matter hereof and
      supersede all prior agreements and understandings, oral or written, with respect
      to such matters, which the parties acknowledge have been merged into this
      Agreement and the exhibits and schedules hereto. No provision of this
      Agreement may be waived, modified, supplemented or amended except in a written
      instrument signed, in the case of an amendment, by the Debtors and the Secured
      Parties or, in the case of a waiver, by the party against whom enforcement
      of
      any such waived provision is sought.

    

    (d)           If
      any term, provision, covenant or restriction of this Agreement is held by a
      court of competent jurisdiction to be invalid, illegal, void or unenforceable,
      the remainder of the terms, provisions, covenants and restrictions set forth
      herein shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated, and the parties hereto shall use their commercially
      reasonable efforts to find and employ an alternative means to achieve the same
      or substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    

    (e)           No
      waiver of any default with respect to any provision, condition or requirement
      of
      this Agreement shall be deemed to be a continuing waiver in the future or a
      waiver of any subsequent default or a waiver of any other provision, condition
      or requirement hereof, nor shall any delay or omission of any party to exercise
      any right hereunder in any manner impair the exercise of any such
      right.

    

    (f)
                 This Agreement
      shall be binding upon and inure to the benefit of the parties and their
      successors and permitted assigns.  The Company and the Guarantor may
      not assign this Agreement or any rights or obligations hereunder without the
      prior written consent of each Secured Party (other than by
      merger).  Any Secured Party may assign any or all of its rights under
      this Agreement to any Person to whom such Secured Party assigns or transfers
      any
      Securities, provided such transferee agrees in writing to be bound, with respect
      to the transferred Securities, by the provisions of this Agreement that apply
      to
      the “Secured Parties.”

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    (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 New York, without regard to the principles of
      conflicts of law thereof.  Each Debtor 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, partners, members, employees or agents) shall be commenced
      exclusively in the state and federal courts sitting in the City of New York,
      Borough of Manhattan. Each Debtor hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in the City of New York,
      Borough of Manhattan 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, 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 any
      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 attorney’s 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.

    

    (j)           All
      Debtors shall jointly and severally be liable for the obligations of each Debtor
      to the Secured Parties hereunder.

    

    (k)           Each
      Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured
      Parties and their respective partners, members, shareholders, officers,
      directors, employees and agents (and any other persons with other titles that
      have similar functions) (collectively, “Indemnitees”) from and against
      any and all losses, claims, liabilities, damages, penalties, suits, costs and
      expenses, of any kind or nature, (including fees relating to the cost of
      investigating and defending any of the foregoing) imposed on, incurred by or
      asserted against such Indemnitee in any way related to or arising from or
      alleged to arise from this Agreement or the Collateral, except any such losses,
      claims, liabilities, damages, penalties, suits, costs and expenses which result
      from the gross negligence or willful misconduct of the Indemnitee as determined
      by a final, nonappealable decision of a court of competent
      jurisdiction.  This indemnification provision is in addition to,
      and not in limitation of, any other indemnification provision in the Debentures,
      the Purchase Agreement (as such term is defined in the Debentures) or any other
      agreement, instrument or other document executed or delivered in
      connection herewith or therewith.

    

    (l)           Nothing
      in this Agreement shall be construed to subject Agent or any Secured Party
      to
      liability as a partner in any Debtor or any if its direct or indirect
      subsidiaries that is a partnership or as a member in any Debtor or any of its
      direct or indirect subsidiaries that is a limited liability company, nor shall
      Agent or any Secured Party be deemed to have assumed any obligations under
      any
      partnership agreement or limited liability company agreement, as applicable,
      of
      any such Debtor or any if its direct or indirect subsidiaries or otherwise,
      unless and until any such Secured Party exercises its right to be substituted
      for such Debtor as a partner or member, as applicable, pursuant
      hereto.

     

    (m)           To
      the extent that the grant of the security interest in the Collateral and the
      enforcement of the terms hereof require the consent, approval or action of
      any
      partner or member, as applicable, of any Debtor or any direct or indirect
      subsidiary of any Debtor or compliance with any provisions of any of the
      Organizational Documents, the Debtors hereby grant such consent and approval
      and
      waive any such noncompliance with the terms of said documents.

    

    [SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

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

     

    
      	
              ZEALOUS
                TRADING GROUP, INC.

               

            
	
              By:__________________________________________

                   Name:

                   Title:

            
	 
	
              ZEALOUS
                HOLDINGS, INC.

               

               

            
	
              By:__________________________________________

                   Name:

                   Title:

               

            
	
              ASNI
                II, INC.

               

               

            
	
              By:__________________________________________

                   Name:

                   Title:

               

              FENNEMORE
                CRAIG, P.C.

               

               

              By:____________________________

                    Name:

                    Title:

            
	
              Suite
                1400 Bank of America Plaza

              300
                South Fourth Street

              Las
                Vegas, NV 89101

              702-692-8000

            

    

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

    

         [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    [SIGNATURE
      PAGE OF HOLDERS TO ZLST SA]

    

    Name
      of
      Investing Entity: ______________________________________________

     

    Signature
      of Authorized Signatory of Investing entity:
      ______________________________________

     

    Name
      of
      Authorized Signatory: ____________________________________

     

    Title
      of
      Authorized Signatory: _____________________________________

    

     

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
ANNEX
      A

    to

    SECURITY

    AGREEMENT

    

    FORM
      OF ADDITIONAL DEBTOR JOINDER

     

    Security
      Agreement dated as of October 16, 2007 made by

    Zealous
      Trading Group, Inc., ASNI II, Inc., a Delaware corporation
      (“ASNI”),

    Zealous
      Holdings, Inc., a Delaware corporation

    and
      its
      subsidiaries party thereto from time to time, as Debtors

    to
      and in
      favor of

    the
      Secured Parties identified therein (the “Security
      Agreement”)

    

               Reference
      is made to the Security Agreement as defined above; capitalized terms used
      herein and not otherwise defined herein shall have the meanings given to such
      terms in, or by reference in, the Security Agreement.

    

               The
      undersigned hereby agrees that upon delivery of this Additional Debtor Joinder
      to the Secured Parties referred to above, the undersigned shall (a) be an
      Additional Debtor under the Security Agreement, (b) have all the rights and
      obligations of the Debtors under the Security Agreement as fully and to the
      same
      extent as if the undersigned was an original signatory thereto and (c) be deemed
      to have made the representations and warranties set forth therein as of the
      date
      of execution and delivery of this Additional Debtor Joinder.  WITHOUT
      LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS
      TO
      THE SECURED PARTIES A SECURITY INTEREST IN THE COLLATERAL AS MORE FULLY SET
      FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER
      OF JURY TRIAL PROVISIONS SET FORTH THEREIN.

    

               Attached
      hereto are supplemental and/or replacement Schedules to the Security Agreement,
      as applicable.

    

               An
      executed copy of this Joinder shall be delivered to the Secured Parties, and
      the
      Secured Parties may rely on the matters set forth herein on or after the date
      hereof.  This Joinder shall not be modified, amended or terminated
      without the prior written consent of the Secured Parties.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

               IN
      WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in
      the
      name and on behalf of the undersigned.

     

    
      	 	
              [Name
                of Additional Debtor]

            
	 	 
	 	
              By: 

            
	 	
              Name: 

            
	 	
              Title: 

            
	 	 
	 	
              Address: 

            

    

     

    Dated:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
[ANNEX
      B]

    to

    SECURITY

    AGREEMENT

    

    THE
      AGENT

    

                          1.  Appointment. The
      Secured Parties (all capitalized terms used herein and not otherwise defined
      shall have the respective meanings provided in the Security Agreement to which
      this Annex B is attached (the "Agreement")), by their acceptance of the
      benefits of the Agreement, hereby designate Fennemore Craig, P.C.
      (“Agent”) as the Agent to act as specified herein and in the
      Agreement.  Each Secured Party shall be deemed irrevocably to
      authorize the Agent to take such action on its behalf under the provisions
      of
      the Agreement and any other Transaction Document (as such term is defined in
      the
      Debentures) and to exercise such powers and to perform such duties hereunder
      and
      thereunder as are specifically delegated to or required of the Agent by the
      terms hereof and thereof and such other powers as are reasonably incidental
      thereto.  The Agent may perform any of its duties hereunder by or
      through its agents or employees.

    

                          2.  Nature
      of
      Duties.  The Agent shall have no duties or
      responsibilities except those expressly set forth in the
      Agreement.  Neither the Agent nor any of its partners, members,
      shareholders, officers, directors, employees or agents shall be liable for
      any
      action taken or omitted by it as such under the Agreement or hereunder or in
      connection herewith or therewith, be responsible for the consequence of any
      oversight or error of judgment or answerable for any loss, unless caused solely
      by its or their gross negligence or willful misconduct as determined by a final
      judgment (not subject to further appeal) of a court of competent
      jurisdiction.  The duties of the Agent shall be mechanical and
      administrative in nature; the Agent shall not have by reason of the Agreement
      or
      any other Transaction Document a fiduciary relationship in respect of any Debtor
      or any Secured Party; and nothing in the Agreement or any other Transaction
      Document, expressed or implied, is intended to or shall be so construed as
      to
      impose upon the Agent any obligations in respect of the Agreement or any other
      Transaction Document except as expressly set forth herein and
      therein.

    

                          3.  Lack
      of Reliance
      on the Agent.  Independently and without reliance upon the
      Agent, each Secured Party, to the extent it deems appropriate, has made and
      shall continue to make (i) its own independent investigation of the financial
      condition and affairs of the Company and its subsidiaries in connection with
      such Secured Party’s investment in the Debtors, the creation and continuance of
      the Obligations, the transactions contemplated by the Transaction Documents,
      and
      the taking or not taking of any action in connection therewith, and (ii) its
      own
      appraisal of the creditworthiness of the Company and its subsidiaries, and
      of
      the value of the Collateral from time to time, and the Agent shall have no
      duty
      or responsibility, either initially or on a continuing basis, to provide
      any Secured Party with any credit, market or other information with respect
      thereto, whether coming into its possession before any Obligations are incurred
      or at any time or times thereafter.  The Agent shall not be
      responsible to the Debtors or any Secured Party for any recitals, statements,
      information, representations or warranties herein or in any document,
      certificate or other writing delivered in connection herewith, or for the
      execution, effectiveness, genuineness, validity, enforceability, perfection,
      collectibility, priority or sufficiency of the Agreement or any other
      Transaction Document, or for the financial condition of the Debtors or the
      value
      of any of the Collateral, or be required to make any inquiry concerning either
      the performance or observance of any of the terms, provisions or conditions
      of
      the Agreement or any other Transaction Document, or the financial condition
      of
      the Debtors, or the value of any of the Collateral, or the existence or possible
      existence of any default or Event of Default under the Agreement, the Debentures
      or any of the other Transaction Documents.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

                          4.  Certain
      Rights of
      the Agent.  The Agent shall have the right to take any action
      with respect to the Collateral, on behalf of all of the Secured
      Parties.  To the extent practical, the Agent shall request
      instructions from the Secured Parties with respect to any material act or action
      (including failure to act) in connection with the Agreement or any other
      Transaction Document, and shall be entitled to act or refrain from acting in
      accordance with the instructions of Secured Parties holding a majority in
      principal amount of Debentures (based on then-outstanding principal amounts
      of
      Debentures at the time of any such determination); if such instructions are
      not
      provided despite the Agent’s request therefor, the Agent shall be entitled to
      refrain from such act or taking such action, and if such action is taken, shall
      be entitled to appropriate indemnification from the Secured Parties in respect
      of actions to be taken by the Agent; and the Agent shall not incur liability
      to
      any person or entity by reason of so refraining.  Without limiting the
      foregoing, (a) no Secured Party shall have any right of action whatsoever
      against the Agent as a result of the Agent acting or refraining from acting
      hereunder in accordance with the terms of the Agreement or any other Transaction
      Document, and the Debtors shall have no right to question or challenge the
      authority of, or the instructions given to, the Agent pursuant to the foregoing
      and (b) the Agent shall not be required to take any action which the Agent
      believes (i) could reasonably be expected to expose it to personal liability
      or
      (ii) is contrary to this Agreement, the Transaction Documents or applicable
      law.

    

                          5.  Reliance.  The
      Agent shall be entitled to rely, and shall be fully protected in relying, upon
      any writing, resolution, notice, statement, certificate, telex, teletype or
      telecopier message, cablegram, radiogram, order or other document or telephone
      message signed, sent or made by the proper person or entity, and, with respect
      to all legal matters pertaining to the Agreement and the other Transaction
      Documents and its duties thereunder, upon advice of counsel selected by it
      and
      upon all other matters pertaining to this Agreement and the other Transaction
      Documents and its duties thereunder, upon advice of other experts selected
      by
      it. Anything to the contrary notwithstanding, the Agent shall have no
      obligation whatsoever to any Secured Party to assure that the Collateral exists
      or is owned by the Debtors or is cared for, protected or insured or that the
      liens granted pursuant to the Agreement have been properly or sufficiently
      or
      lawfully created, perfected, or enforced or are entitled to any particular
      priority.

    

                          6.  Indemnification.  To
      the extent that the Agent is not reimbursed and indemnified by the Debtors,
      the
      Secured Parties will jointly and severally reimburse and indemnify the Agent,
      in
      proportion to their initially purchased respective principal amounts of
      Debentures, from and against any and all liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind or nature whatsoever which may be imposed on, incurred by or
      asserted against the Agent in performing its duties hereunder or under the
      Agreement or any other Transaction Document, or in any way relating to or
      arising out of the Agreement or any other Transaction Document except for those
      determined by a final judgment (not subject to further appeal) of a court of
      competent jurisdiction to have resulted solely from the Agent's own gross
      negligence or willful misconduct.  Prior to taking any action
      hereunder as Agent, the Agent may require each Secured Party to deposit with
      it sufficient sums as it determines in good faith is necessary to protect
      the Agent for costs and expenses associated with taking such
      action.

    

                          7.   Resignation
      by
      the Agent.

    

    (a)  The
      Agent may resign from
      the performance of all its functions and duties under the Agreement and the
      other Transaction Documents at any time by giving 30 days' prior written notice
      (as provided in the Agreement) to the Debtors and the Secured
      Parties.  Such resignation shall take effect upon the appointment of a
      successor Agent pursuant to clauses (b) and (c) below.

    

    (b)  Upon
      any such notice of
      resignation, the Secured Parties, acting by a Majority in Interest, shall
      appoint a successor Agent hereunder.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (c)  If
      a successor Agent
      shall not have been so appointed within said 30-day period, the Agent shall
      then
      appoint a successor Agent who shall serve as Agent until such time, if any,
      as
      the Secured Parties appoint a successor Agent as provided above.  If a
      successor Agent has not been appointed within such 30-day period, the
      Agent may petition any court of competent jurisdiction or may interplead
      the Debtors and the Secured Parties in a proceeding for the appointment of
      a
      successor Agent, and all fees, including, but not limited to, extraordinary
      fees
      associated with the filing of interpleader and expenses associated therewith,
      shall be payable by the Debtors on demand.

    

                          8.  Rights
      with
      respect to Collateral.  Each Secured Party agrees
      with all other Secured Parties and the Agent (i) that it shall not, and shall
      not attempt to, exercise any rights with respect to its security interest in
      the
      Collateral, whether pursuant to any other agreement or otherwise (other than
      pursuant to this Agreement), or take or institute any action against the Agent
      or any of the other Secured Parties in respect of the Collateral or its
      rights hereunder (other than any such action arising from the breach of this
      Agreement) and (ii) that such Secured Party has no other rights with respect
      to
      the Collateral other than as set forth in this Agreement and the other
      Transaction Documents. Upon the acceptance of any appointment as Agent
      hereunder by a successor Agent, such successor Agent shall thereupon succeed
      to
      and become vested with all the rights, powers, privileges and duties of the
      retiring Agent and the retiring Agent shall be discharged from its duties and
      obligations under the Agreement.  After any retiring Agent’s resignation or
      removal hereunder as Agent, the provisions of the Agreement including this
      Annex
      B shall inure to its benefit as to any actions taken or omitted to be taken
      by
      it while it was Agent.

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