Document:

Exhibit 4.3

    Exhibit
      4.3

    

      REGISTRATION
        RIGHTS AGREEMENT

       

      REGISTRATION
        RIGHTS AGREEMENT (this “Agreement”),
        dated
        as
        of April 19, 2007,
        by
        and among Mohen, Inc., a Delaware corporation (the “Company”),
        and
        the
undersigned
        buyers (each, a “Buyer”,
        and
        collectively, the “Buyers”).

       

      WHEREAS:

       

      A. In
        connection with the Securities Purchase Agreement by and among the Company
        and the Buyers of even date herewith (the “Purchase
        Agreement”), the
        Company has agreed,
        upon the terms and subject to the conditions set forth in the Purchase
        Agreement, to issue and
        sell
        to each Buyer convertible notes of the Company (the “Notes”)
        which
        will, among other things,
        be convertible into shares of the Company’s Class A common stock, par value
        $0.001 per share
        (the “Common
        Stock”) (as
        converted, the “Exchange
        Shares”) in
        accordance with the terms of the Notes.

       

      B. To
        induce
        the Buyers to execute and deliver the Purchase Agreement, the Company
        has agreed to provide certain registration rights under the Securities Act
        of
        1933, as amended,
        and the rules and regulations thereunder, or any similar successor statute
        (collectively, the
        “1933
        Act”), and
        applicable state securities laws.

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants
contained
        herein and other good and valuable consideration, the receipt and sufficiency
        of
        which are
        hereby acknowledged, the Company, and each of the Buyers hereby agree as
        follows:

       

      
        	1.	
                DEFINITIONS.

              

      

       

      Capitalized
        terms used herein and not otherwise defined herein shall have the respective
        meanings set forth in the Purchase Agreement. As used in this Agreement,
        the
        following terms shall have the following meanings:

       

      (a) “Business
        Day” means
        any
        day other than Saturday, Sunday or any other day on which commercial
        banks in The City of New York are authorized or required by law to remain
        closed.

       

      (b) “Closing
        Date” shall
        have the meaning set forth in the Purchase Agreement.

       

      (c) “Effective
        Date” means,
        with respect to any Registration Statement, the date that such
        Registration Statement has been declared effective by the SEC.

       

      (d) “Effectiveness
        Deadline” means
        the
        date which is ninety (90) calendar days after the date
        the
        Registration Statement is filed with the SEC.

       

      (e) “Filing
        Deadline” means
        the
        date which is forty-five (45) calendar days after the Notes
        become exchangeable into Common Stock, if ever.

       

      (f) “Investor”
        means
        a
        Buyer or any transferee or assignee thereof to whom a Buyer assigns
        its rights under this Agreement and who agrees to become bound by the provisions
        of

      
        this
          Agreement in accordance with Section 9 and any transferee or assignee thereof
          to
          whom a transferee
          or assignee assigns its rights under this Agreement and who agrees to become
          bound by
          the
          provisions of this Agreement in accordance with Section
          9.

      
        
          
             

          

          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      (g) “Investor
        Registrable Securities” means
        (i)
        the Exchange Shares issued or issuable upon
        exchange of the Notes and (ii) any capital stock of the Company issued or
        issuable with respect
        to the Exchange Shares or the Notes, as a result of any stock split, stock
        dividend, recapitalization, exchange or similar event or otherwise, without
        regard to any limitations on exchanges of the Notes.

       

      (h) “Person”
        means
        an
        individual, a limited liability company, a partnership, a joint venture,
        a
        corporation, a trust, an unincorporated organization and a government or
        any
department
        or agency thereof.

       

      (i) “Register,”
        “registered,”
        and
        “registration”
        refer
        to
        a registration effected by preparing
        and filing one or more Registration Statements (as defined below) in compliance
        with the 1933 Act and pursuant to Rule 415 and the declaration or ordering
        of
        effectiveness of such Registration Statement(s) by the SEC.

       

      (j) “Registrable
        Securities” means
        Investor Registrable Securities.

       

      (k) “Registration
        Statement” means
        a
        registration statement or registration statements of
        the
        Company filed under the 1933 Act covering the Registrable
        Securities.

       

      (l) “Required
        Holders” means
        the
        holders of at least a majority of the Investor Registrable
        Securities.

       

      (m) “Required
        Registration Amount” means
        115% of the sum of the number of Exchange
        Shares issued and issuable pursuant to the Notes as of the Business Day
        immediately preceding the applicable date of determination, subject to
        adjustment as provided in Section 2(e) (without regard to any limitations
        on
        exchange of the Notes).

       

      (n) “Rule
        415” means
        Rule 415 under the 1933 Act or any successor rule providing for offering
        securities on a continuous or delayed basis.

       

      (o) “SEC”
        means
        the
        United States Securities and Exchange Commission.

       

      (p) “Subsequent
        Pledged Interests” shall
        have the meaning assigned to it by the Pledge Agreement.

       

      
        	2.	
                REGISTRATION.

              

      

       

      a.
        Mandatory
        Registration. The
        Company shall prepare, and, as soon as practicable, but in no
        event
        later than the Filing Deadline, file with the SEC, a Registration Statement
        on
        Form SB-2
        (or
        such other form as may be available) covering the resale of a number of Investor
        Registrable
        Securities equal to the Required Registration Amount; provided that the Company
        shall
        not
        be required to include in the Registration Statement any shares in excess
        of
        such number of shares as equals 175% of the then-outstanding number of shares
        of
        Common Stock. Subject
        to the foregoing limitation, the Registration Statement prepared pursuant
        hereto
        shall register
        for resale at least the number of shares of Common Stock equal to the Required
        Registration
        Amount as of the date the Registration Statement is initially filed with
        the
        SEC. The Company
        shall use its best efforts to have the Registration Statement declared effective
        by the SEC
        as
        soon as practicable, but in no event later than the Effectiveness Deadline.
        By
        9:30 a.m. on
        the
        Business Day following the Effective Date, the Company shall file with the
        SEC
        in accordance
        with Rule 424 under the 1933 Act the final prospectus to be used in connection
        with sales
        pursuant to such Registration Statement.

      

      
        
          
            
               

            

          

          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      b. [reserved]

       

      c. Allocation
        of Registrable Securities. In
        the
        event that the number of Registrable Securities
        included in any Registration Statement is less than the Required Registration
        Amount, the initial number of Registrable Securities included in such
        Registration Statement and any increase
        in the number of Registrable Securities included therein shall be allocated
        pro
        rata among
        the
        Investors based on the number of Registrable Securities held by each Investor
        at
        the time
        the
        Registration Statement covering such initial number of Investor Registrable
        Securities or
        increase thereof is declared effective by the SEC. In the event that an Investor
        sells or otherwise
        transfers any of such Investor’s Investor Registrable Securities, each
        transferee shall, upon
        becoming an Investor, be allocated a pro rata portion of the then remaining
        number of Investor
        Registrable Securities included in such Registration Statement for such
        transferor. Any Shares
        of
        Common Stock included in a Registration Statement and which remain allocated
        to
        any Person which ceases to hold any Investor Registrable Securities covered
        by
        such Registration Statement shall be allocated to the remaining Investors,
        pro
        rata based on the number
        of
        Investor Registrable Securities then held by such Investors which are covered
        by
        such Registration Statement. In no event shall the Company include any
        securities other than Investor Registrable
        Securities on any Registration Statement without the prior written consent
        of
        the Required Holders.

       

      d. Legal
        Counsel. Subject
        to Section 5 hereof, the Required Holders shall have the right to select
        one legal counsel to review and oversee, as counsel for the Investors, any
        registration pursuant to this Section 2 (“Legal
        Counsel”), which
        shall be Moomjian, Waite, Wactlar & Coleman,
        LLP or such other counsel as thereafter designated by the Required Holders.
        The
Company
        and Legal Counsel shall reasonably cooperate with each other in performing
        the
        Company’s obligations under this Agreement.

       

      e. Sufficient
        Number of Shares Registered. In
        the
        event the number of Registrable Securities
        available under a Registration Statement filed pursuant to Section 2(a) is
        insufficient to cover all of the Registrable Securities required to be covered
        by such Registration Statement or
        an
        Investor’s allocated portion of the Registrable Securities pursuant to Section
        2(b), the Company
        shall amend the applicable Registration Statement, or file a new Registration
        Statement
        (on the shortest form available therefor, if applicable), or both, so as
        to
        cover at least the
        Required Registration Amount as of the Trading Day immediately preceding
        the
        date of the filing of such amendment or new Registration Statement as soon
        as
        practicable, but in any event not later than forty-five (45) days after such
        time as the Company may do so in accordance with the
        1933
        Act as interpreted by the SEC but no later than six (6) months after the
        effectiveness of the
        prior
        registration statement, unless there is explicit instruction from the SEC
        to the
        contrary. The
        Company shall use its best efforts to cause such amendment and/or new
        Registration Statement
        to become effective as soon as practicable following the filing thereof.
        For
        purposes of the
        foregoing provision, the number of shares available under a Registration
        Statement shall be deemed
        “insufficient to cover all of the Registrable Securities” if at any time the
        number of shares
        of
        Common Stock available for resale under the Registration Statement is less
        than
        the product
        determined by multiplying (i) the Required Registration Amount as of such
        time
        by (ii)
        0.90. The calculation set forth in the foregoing sentence shall be made without
        regard to any limitations
        on the exchange of the Notes and such calculation shall assume that the Notes
        are then
        convertible into shares of Common Stock at the then prevailing Exchange Rate
        (as
        defined in
        the
        Notes).

      

      
        
          
            
               

            

          

          
          

        

        
          3

          
            

          

        

        
          
          

          
            

          

        

      

       

      f.
        Effect
        of Failure to File and Obtain and Maintain Effectiveness of Registration
        Statement.
        If
        (i) a
        Registration Statement covering all of the Investor Registrable Securities
        required to be covered thereby and required to be filed by the Company pursuant
        to this Agreement
        is (A) not filed with the SEC on or before the Filing Deadline (a “Filing
        Failure”) or
        (B)
        not
        declared effective by the SEC on or before the Effectiveness Deadline (an
        “Effectiveness
        Failure”;
        provided,
        however, that
        for
        thirty (30) days following the Effectiveness Deadline there will
        be
        no Effectiveness Failure if the SEC is reviewing the Registration Statement
        and
        the Company
        is using its best efforts to have the Registration Statement declared effective)
        or (ii) on any
        day
        after the Effective Date sales of all of the Investor Registrable Securities
        required to be included on such Registration Statement cannot be made (other
        than during an Allowable Grace Period (as defined in Section 3(r)) pursuant
        to
        such Registration Statement (including, without limitation, because of a
        failure
        to keep such Registration Statement effective, to disclose such information
        as
        is necessary for sales to be made pursuant to such Registration Statement
        or to
        register a sufficient number of shares of Common Stock) (a “Maintenance
        Failure”) then,
        as
partial
        relief for the damages to any holder by reason of any such delay in or reduction
        of its ability
        to sell the underlying shares of Common Stock (which remedy shall not be
        exclusive of any
        other
        remedies available at law or in equity), the Company shall pay to each holder
        of
Investor
        Registrable Securities relating to such Registration Statement an amount
        in cash
        equal to
        (i)
        one and one-half percent (1.5%) of the aggregate Purchase Price (as such
        term is
        defined in the Purchase Agreement) of such Investor's Notes relating to the
        Registrable Securities included in
        such
        Registration Statement three (3) Business Days following the occurrence of
        a
        Filing Failure
        and (ii) two percent (2%) of the aggregate Purchase Price (as such term is
        defined in the Purchase Agreement) of such Investor's Notes relating to the
        Registrable Securities included in such
        Registration Statement on each of the following dates: (A) three (3) Business
        Days following
        the 30th
        day
        after an uncured Filing Failure has occurred and on every thirtieth
        (30th)
        day
        thereafter until such Filing Failure is cured; and (B) three (3) Business
        Days
        following the end
        of
        the month in which an Effectiveness Failure has occurred and on every thirtieth
        (30th)
        day
thereafter
        until such Effectiveness Failure is cured (provided that the Company shall
        pay a
        pro-rata
        amount of any Registration Delay Payment for any partial period covered in
        clause (A) or (B)).
        The
        payments to which a holder shall be entitled pursuant to this Section 2(f)
        are
        referred to
        herein
        as “Registration
        Delay Payments”. By
        way of
        example, if a Registration Statement covering the Registrable Securities
        is
        filed on the 111th
        day
        following the Closing Date, the Company
        shall pay to the Investors (i) an amount equal to 1.5% of the aggregate Purchase
        Price of
        such
        Investor's Notes relating to the Registrable Securities included in such
        Registration Statement
        within three (3) Business Days after the 75th
        day
        following the Closing Date, (ii) an amount equal to 2% of the Purchase Price
        of
        such Investor's Notes relating to the Registrable Securities
        included in such Registration Statement on the one hundred fifth
        (105th)
        day
        following the
        Closing Date and (iii) a pro rata amount of such Registration Delay Payment
        for
        any subsequent
        period (determined by multiplying such Registration Delay Payment by the
        product
obtained
        by dividing the number of days (6) during which such Filing Failure occurred
        during such
        subsequent period by 30)). In the event the Company fails to make Registration
        Delay Payments in a timely manner, such Registration Delay Payments shall
        bear
        interest at the rate of one and one-half percent (1.5%) per month (prorated
        for
        partial months) until paid in full. Notwithstanding
        anything herein to the contrary, in no event shall the Registration Delay
        Payments
        exceed ten percent (10%) of the aggregate Purchase Price for all Investors
        (the
"Registration
        Delay Payments Cap"). Any
        amount in excess of the Registration Delay Payments
        Cap (the "Excess
        Registration Delay Payments") shall
        cause the Exchange Price of the
        Investor's Notes to be lowered by an amount equal to the quotient of the
        amount
        of such Investors Excess Registration Delay Payments divided by the then
        outstanding amount of such Investor's
        Notes. Notwithstanding anything to the contrary contained herein no Registration
        Delay
        Payments shall be payable with respect to any Registrable Securities excluded
        from a Registration Statement by election of an Investor.

      

      
        
          
            
               

            

          

          
          

        

        
          4

          
            

          

        

        
          
          

          
            

          

        

      

      3.RELATED
        OBLIGATIONS.

       

      At
        such
        time as the Company is obligated to file a Registration Statement with the
        SEC
        pursuant to Section 2(a) or 2(e), the Company will use its commercially
        reasonable best efforts to effect
        the registration of the Investor Registrable Securities in accordance with
        the
        intended method
        of
        disposition thereof and, pursuant thereto, the Company shall have the following
        obligations:

       

      a.
        The
        Company shall promptly prepare and file with the SEC a Registration Statement
        with respect to the Investor Registrable Securities and use its best efforts
        to
        cause such Registration
        Statement relating to the Investor Registrable Securities to become effective
        as
        soon as
        practicable after such filing (but in the case of the initial Registration
        Statement required to be filed pursuant to Section 2(a), no later than the
        Effectiveness Deadline). The Company shall keep each
        Registration Statement effective pursuant to Rule 415 at all times until
        the
        earlier of (i) the date
        as
        of which the Investors may sell all of the Investor Registrable Securities
        covered by such Registration
        Statement without restriction pursuant to Rule 144(k) (or any successor thereto)
        promulgated under the 1933 Act or (ii) the date on which the Investors shall
        have sold all of the Investor
        Registrable Securities covered by such Registration Statement (the “Registration
        Period”).
        The
        Company shall ensure that each Registration Statement (including any
amendments
        or supplements thereto and prospectuses contained therein) shall not contain
        any
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 the case of prospectuses, in the light
        of the
circumstances
        in which they were made) not misleading. The term “best efforts” shall mean,
among
        other things, that the Company shall submit to the SEC, within two (2) Business
        Days after
        the
        later of the date that (i) the Company learns that no review of a particular
        Registration Statement will be made by the staff of the SEC or that the staff
        has no further comments on a particular Registration Statement, as the case
        may
        be, and (ii) the approval of Legal Counsel pursuant to Section 3(c) (which
        approval is immediately sought), a request for acceleration of effectiveness
        of such Registration Statement to a time and date not later than 48 hours
        after
        the submission of such request.

      

      
        
          
            
               

            

          

          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      b. The
        Company shall prepare and file with the SEC such amendments (including
post-effective
        amendments) and supplements to a Registration Statement and the prospectus
        used
in
        connection with such Registration Statement, which prospectus is to be filed
        pursuant to Rule
        424
        promulgated under the 1933 Act, as may be necessary to keep such Registration
        Statement
        effective at all times (subject to any Allowable Grace Period) during the
        Registration Period, and, during such period, comply with the provisions
        of the
        1933 Act with respect to the disposition of all Registrable Securities of
        the
        Company covered by such Registration Statement until
        such time as all of such Registrable Securities shall have been disposed
        of in
        accordance with
        the
        intended methods of disposition by the seller or sellers thereof as set forth
        in
        such Registration Statement. In the case of amendments and supplements to
        a
        Registration Statement which
        are
        required to be filed pursuant to this Agreement (including pursuant to this
        Section
        3(b)) by reason of the Company filing a report on Form 10-Q or Form 10-QSB,
        Form
10-K
        or
        Form 10-KSB or any analogous report under the Securities Exchange Act of
        1934,
        as amended
        (the “1934
        Act”), the
        Company shall have incorporated such report by reference into such
        Registration Statement, if applicable, or shall file such amendments or
        supplements with the SEC
        on
        the same day on which the 1934 Act report is filed which created the requirement
        for the Company
        to amend or supplement such Registration Statement.

       

      c. The
        Company shall (A) permit Legal Counsel to review and comment upon (i) a
        Registration Statement at least five (5) Business Days prior to its filing
        with
        the SEC and (ii) all amendments
        and supplements to all Registration Statements (except for Annual Reports
        on
        Form 10-K
        or
        Form 10-KSB, and Quarterly Reports on Form 10-Q or Form 10-QSB and any similar
        or successor
        reports) within a reasonable number of days prior to their filing with the
        SEC,
        and (B)
        not
        file any Registration Statement or amendment or supplement thereto in a form
        to
        which Legal
        Counsel reasonably objects. The Company shall not submit a request for
        acceleration of the effectiveness of a Registration Statement or any amendment
        or supplement thereto without the
        prior
        approval of Legal Counsel, which consent shall not be unreasonably withheld.
        The
        Company shall furnish to Legal Counsel, without charge, (i) copies of any
        correspondence from the
        staff
        of the SEC to the Company or its representatives relating to any Registration
        Statement,

      (ii) promptly
        after the same is prepared and filed with the SEC, one copy of any Registration
        Statement and any amendment(s) thereto, including financial statements and
        schedules, all documents incorporated therein by reference, if requested
        by an
        Investor, and all exhibits and

      (iii) if
        the
        Company shall not have filed a final prospectus in accordance with Rule 424
        per
Section
        2(a), upon the effectiveness of any Registration Statement, one copy of the
        prospectus included
        in such Registration Statement and all amendments and supplements thereto.
        The
Company
        shall reasonably cooperate with Legal Counsel in performing the Company’s
obligations
        pursuant to this Section 3.

       

      d.
        The
        Company shall furnish to each Investor whose Investor Registrable Securities
        are
        included in any Registration Statement, without charge, (i) if the Company
        shall
        not have filed a final prospectus in accordance with Rule 424 per Section
        2(a),
        upon the effectiveness of any
        Registration Statement, ten (10) copies of the prospectus included in such
        Registration Statement and all amendments and supplements thereto (or such
        other
        number of copies as such Investor may reasonably request) and (ii) such other
        documents, including copies of any preliminary
        or final prospectus, as such Investor may reasonably request from time to
        time
        in order
        to
        facilitate the disposition of the Registrable Securities owned by such
        Investor.

      

      
        
          
            
               

            

          

          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      e. The
        Company shall use its best efforts to (i) register and qualify, unless an
        exemption from registration and qualification applies, the resale by Investors
        of the Registrable Securities covered by a Registration Statement under such
        other securities or “blue sky” laws of all
        applicable jurisdictions in the United States, (ii) prepare and file in those
        jurisdictions, such amendments (including post-effective amendments) and
        supplements to such registrations and qualifications
        as may be necessary to maintain the effectiveness thereof during the
        Registration Period, (iii) take such other actions as may be necessary to
        maintain such registrations and qualifications
        in effect at all times during the Registration Period, and (iv) take all
        other
        actions reasonably necessary or advisable to qualify the Investor Registrable
        Securities for sale in such jurisdictions;
        provided, however, that the Company shall not be required in connection
        therewith or as a condition thereto to (x) qualify to do business in any
        jurisdiction where it would not otherwise be required to qualify but for
        this
        Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
        or (z) file a general consent to service of process in any such jurisdiction.
        The Company shall promptly notify Legal Counsel and each Investor who holds
        Investor Registrable
        Securities of the receipt by the Company of any notification with respect
        to the
suspension
        of the registration or qualification of any of the Investor Registrable
        Securities for sale
        under the securities or “blue sky” laws of any jurisdiction in the United States
        or its receipt of
        actual
        notice of the initiation or threatening of any proceeding for such
        purpose.

       

      f. The
        Company shall notify Legal Counsel and each Investor in writing of the
happening
        of any event, as promptly as practicable after becoming aware of such event,
        as
        a result
        of
        which the prospectus included in a Registration Statement, as then in effect,
        includes an untrue
        statement of a material fact or omission to state a material fact required
        to be
        stated therein
        or necessary to make the statements therein, in the light of the circumstances
        under which they
        were
        made, not misleading (provided that in no event shall such notice contain
        any
        material, nonpublic
        information), and, subject to Section 3(r), promptly prepare a supplement
        or
amendment
        to such Registration Statement to correct such untrue statement or omission.
        The
        Company shall also promptly notify Legal Counsel and each Investor in writing
        (i) when a prospectus
        or any prospectus supplement or post-effective amendment has been filed,
        and
        when a
        Registration Statement or any post-effective amendment has become effective
        (notification of such
        effectiveness shall be delivered to Legal Counsel and each Investor by facsimile
        or e-mail on
        the
        same day of such effectiveness and by overnight mail), (ii) of any request
        by
        the SEC for amendments
        or supplements to a Registration Statement or related prospectus or related
        information,
        and (iii) of the Company’s reasonable determination that a post-effective
amendment
        to a Registration Statement would be appropriate.

       

      g.
        The
        Company shall use its best efforts to prevent the issuance of any stop order
        or
        other suspension of effectiveness of a Registration Statement, or the suspension
        of the qualification
        of any of the Investor Registrable Securities for sale in any jurisdiction
        and,
        if such an
        order
        or suspension is issued, to obtain the withdrawal of such order or suspension
        at
        the earliest
        possible moment and to notify Legal Counsel and each Investor who holds
        Registrable Securities
        being sold of the issuance of such order and the resolution thereof or its
        receipt of actual
        notice of the initiation or threat of any proceeding for such
        purpose.

      

      
        
          
            
               

            

          

          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      h. At
        the
        reasonable request of any Investor with respect to an underwritten offering
        pursuant
        to a Registration Statement, the Company shall furnish, on the date of the
        effectiveness of the Registration Statement and thereafter from time to time
        on
        such dates as the managing underwriter
        may reasonably request (i) a letter, dated such date, from the Company’s
independent
        certified public accountants in form and substance as is customarily given
        by
        independent certified public accountants to underwriters in an underwritten
        public offering, and (ii)
        an
        opinion, dated as of such date, of counsel representing the Company for purposes
        of such Registration
        Statement, in form, scope and substance as is customarily given in an
        underwritten public offering.

       

      i. If
        any
        Investor may be required under applicable securities law to be described
        in
the
        Registration Statement as an Underwriter, the Company shall make available
        for
        inspection by (i) any Investor, (ii) Legal Counsel and (iii) one firm of
        accountants or other agents retained by
        the
        Investors (collectively, the “Inspectors”),
        all
        pertinent financial and other records, and pertinent
        corporate documents and properties of the Company (collectively, the
“Records”),
        as
        shall
        be
        reasonably deemed necessary by each Inspector, and cause the Company’s officers,
directors
        and employees, counsel and the Company’s independent certified public
        accountants to supply
        all information which may be necessary and any Inspector may reasonably request;
        provided,
        however, that each Inspector shall agree to hold in strict confidence and
        shall
        not make any
        disclosure (except to an Investor) or use of any Record or other information
        which the Company
        determines in good faith to be confidential, and of which determination the
        Inspectors are
        so
        notified, unless (a) the release of such Records is ordered pursuant to a
        final,
        non-appealable
        subpoena or order from a court or government body of competent jurisdiction
        or
(b)
        the
        information in such Records has been made generally available to the public
        other than by disclosure
        in violation of this or any other agreement of which the Inspector has
        knowledge. Each
        Investor agrees that it shall, upon learning that disclosure of such Records
        is
        sought in or by a
        court
        or governmental body of competent jurisdiction or through other means, give
        prompt written
        notice to the Company and allow the Company, at its expense, to undertake
        appropriate action
        to
        prevent disclosure of, or to obtain a protective order for, the Records deemed
        confidential.
        Nothing herein (or in any other confidentiality agreement between the Company
        and
        any
        Investor) shall be deemed to limit the Investors’ ability to sell Registrable
        Securities in a manner
        which is otherwise consistent with applicable laws and regulations.

       

      j.
        The
        Company shall hold in confidence and not make any disclosure of information
        concerning an Investor provided to the Company unless (i) disclosure of such
        information
        is necessary to comply with federal or state securities laws, (ii) the
        disclosure of such
        information is necessary to avoid or correct a misstatement or omission in
        any
        Registration Statement,
        (iii) the release of such information is ordered pursuant to a subpoena or
        other
        final, non-appealable
        order from a court or governmental body of competent jurisdiction, or (iv)
        such
information
        has been made generally available to the public other than by disclosure
        in
        violation of this Agreement or any other agreement. The Company agrees that
        it
        shall, upon learning that disclosure
        of such information concerning an Investor is sought in or by a court or
        governmental body
        of
        competent jurisdiction or through other means, give prompt written notice
        to
        such Investor
        and allow such Investor, at the Investor’s expense, to undertake appropriate
        action to prevent disclosure of, or to obtain a protective order for, such
        information.

      

      
        
          
             

          

          
          

        

        
          8

          
            

          

        

        
          
          

          
            

          

        

      

      k. The
        Company shall use its best efforts either to (i) cause all of the Registrable
        Securities covered by a Registration Statement to be listed or quoted on
        each
        securities exchange or quotation service on which securities of the same
        class
        or series issued by the Company are then listed or quoted (which shall include
        the OTC Bulletin Board), if any, if the listing or quotation
        of such Registrable Securities is then permitted under the rules of such
        exchange, or (ii)
        secure designation and quotation of all of the Registrable Securities covered
        by
        a Registration Statement
        on the OTC Bulletin Board and, without limiting the generality of the foregoing,
        to use
        its
        commercially reasonable best efforts to arrange for at least two market makers
        to register with
        the
        National Association of Securities Dealers, Inc. (“NASD”)
        as
        such
        with respect to such Registrable
        Securities. The Company shall pay all fees and expenses in connection with
        satisfying
        its obligation under this Section 3(k).

       

      l. The
        Company shall cooperate with the Investors who hold Investor Registrable
        Securities
        being offered and, to the extent applicable, facilitate the timely preparation
        and delivery
        of certificates representing the Registrable Securities to be offered pursuant
        to a Registration
        Statement and enable such certificates to be in such denominations or amounts,
        as the
        case
        may be, as the Investors may reasonably request and registered in such names
        as
        the Investors may request.

       

      m. If
        requested by an Investor, the Company shall within ten (10) Business Days
        of
receipt
        of notice from such Investor (i) incorporate in a prospectus supplement or
        post-effective amendment
        such information as an Investor reasonably requests to be included therein
        relating to the
        sale
        and distribution of Investor Registrable Securities, including, without
        limitation, information with respect to the number of Investor Registrable
        Securities being offered or sold, the purchase price being paid therefor
        and any
        other terms of the offering of the Investor Registrable
        Securities to be sold in such offering; (ii) make all required filings of
        such
        prospectus supplement
        or post-effective amendment after being notified of the matters to be
        incorporated in such
        prospectus supplement or post-effective amendment; and (iii) supplement or
        make
amendments
        to any Registration Statement if reasonably requested by an Investor holding
        any
Investor
        Registrable Securities.

       

      n. The
        Company shall reasonably cooperate with the Investors as may be necessary
        to
        consummate the disposition of such Investor Registrable Securities.

       

      o. The
        Company shall make generally available to its security holders as soon as
        practical, but not later than ninety (90) days after the close of the period
        covered thereby, an earnings statement (in form complying with, and in the
        manner provided by, the provisions of Rule 158 under the 1933 Act) covering
        a
        twelve-month period beginning not later than the first day
        of
        the Company’s fiscal quarter next following the effective date of the
        Registration Statement.

       

      p. The
        Company shall otherwise use its best efforts to comply with all applicable
        rules
        and
        regulations of the SEC in connection with any registration
        hereunder.

       

      q.Within
        two (2) Business Days after a Registration Statement which covers Investor
        Registrable Securities is ordered effective by the SEC, the Company shall
        deliver, and shall
        cause legal counsel for the Company to deliver, to the transfer agent for
        such
        Investor Registrable Securities (with copies to the Investors whose Investor
        Registrable Securities are included
        in such Registration Statement) confirmation, in the form attached hereto
        as
Exhibit
        A, that
        such
        Registration Statement has been declared effective by the
        SEC.

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      r. Notwithstanding
        anything to the contrary herein, at any time after the Effective Date,
        the
        Company may delay the disclosure of material, non-public information concerning
        the Company
        the disclosure of which at the time is not, in the good faith opinion of
        the
        Board of Directors
        of the Company, in the best interest of the Company and otherwise required
        (a
“Grace
        Period”);
        provided,
        that the Company shall promptly (i) notify the Investors in writing of the
        existence of material, non-public information giving rise to a Grace Period
        (provided that in each notice
        the Company will not disclose the content of such material, non-public
        information to the Investors)
        and the date on which the Grace Period will begin, and (ii) notify the Investors
        in writing of the date on which the Grace Period ends; and, provided further,
        that no Grace Period shall
        exceed thirty (30) consecutive days and during any three hundred sixty five
        (365) day period
        such Grace Periods shall not exceed an aggregate of sixty (60) days and the
        first day of any
        Grace
        Period must be at least two (2) Trading Days after the last day of any prior
        Grace Period
        (each, an “Allowable
        Grace Period”). For
        purposes of determining the length of a Grace Period
        above, the Grace Period shall begin on and include the date the Investors
        receive the notice
        referred to in clause (i) and shall end on and include the later of the date
        the
        Investors receive the notice referred to in clause (ii) and the date referred
        to
        in such notice. The provisions of Section 3(g) hereof shall not be applicable
        during the period of any Allowable Grace Period. Upon expiration of the Grace
        Period, the Company shall again be bound by the first sentence of Section
        3(f) with respect to the information giving rise thereto unless such material,
        non-public information
        is no longer applicable. Notwithstanding anything to the contrary, the Company
        shall
        cause its transfer agent to deliver unlegended shares of Common Stock to
        a
        transferee of an Investor in accordance with the terms of the Purchase Agreement
        in connection with any sale of Registrable
        Securities with respect to which an Investor has entered into a contract
        for
        sale, and delivered
        a copy of the prospectus included as part of the applicable Registration
        Statement (unless
        an exemption from such prospectus delivery requirement exists), prior to
        the
        Investor’s receipt of the notice of a Grace Period and for which the Investor
        has not yet settled.

       

      s. To
        the
        extent not inconsistent with applicable law, in connection with a public
        offering
        of securities of the Company, upon the reasonable request of the Company
        or, in
        the case
        of
        an underwritten public offering of the Company's securities, the managing
        underwriters, each
        Investor who beneficially owns (as defined in Rule 13d-3 adopted by the SEC
        under the 1934
        Act)
        at least 5% of the outstanding capital stock of the Company will not effect
        any
        sale or distribution
        (other than those included in the registration statement being filed with
        respect to such
        public offering) of, or any short sale of, or any grant of option to purchase,
        or any hedging or
        similar transaction with respect to, any securities of the Company, or any
        securities, options or rights
        convertible into or exchangeable or exercisable for such securities during
        the
        14 days prior to and the 90-day period beginning on the effective date of
        such
        public offering, unless the Company,
        or in the case of an underwritten public offering, the managing underwriters
        otherwise agree
        to
        a shorter period of time. At the request of the Company or the managing
        underwriters, each
        such
        Investor shall execute a customary "lock-up" agreement consistent with the
        provisions of this Section 3(s); provided,
        however, that
        no
        Investor shall be required to enter into such "lock-up"
        agreement unless and until all of the Company's executive officers and directors
        execute substantially similar "lock-up" agreements and the Company uses
        commercially reasonable efforts to cause each holder of more than 5% of its
        outstanding capital stock to execute
        substantially similar "lock-up" agreements. Neither the Company nor the managing
        underwriter
        shall terminate, materially amend or waive the enforcement of any material
        provision
        under a "lock-up" agreement unless each "lock-up" agreement with an Investor
        is
        also amended
        or waived in a similar manner or terminated, as the case may be. Notwithstanding
        anything contained in this Agreement or the other Transaction Documents to
        the
        contrary, the Company
        may impose stop-transfer instructions to enforce the restrictions imposed
        by
        this Section
        3(s).

      

      
        
          
             

          

          
          

        

        
          10

          
            

          

        

        
          
          

          
            

          

        

      

      
        	4.	
                OBLIGATIONS
                  OF THE INVESTORS. 

              

      

       

      a. At
        least
        ten (10) Business Days prior to the first anticipated filing date of a
Registration
        Statement, the Company shall notify each Investor in writing of the information
        the Company requires from each such Investor if such Investor elects to have
        any
        of such Investor’s Registrable
        Securities included in such Registration Statement. It shall be a condition
        precedent to
        the
        obligations of the Company to complete the registration pursuant to this
        Agreement with respect
        to the Registrable Securities of a particular Investor that such Investor
        shall
        furnish to the Company such information regarding itself, the Registrable
        Securities held by it and the intended method
        of
        disposition of the Registrable Securities held by it, as shall be reasonably
        required to effect
        and maintain the effectiveness of the registration of such Registrable
        Securities and shall execute
        such documents in connection with such registration as the Company may
        reasonably request.

       

      b. Each
        Investor, by such Investor’s acceptance of the Registrable Securities, agrees
to
        cooperate with the Company as reasonably requested by the Company in connection
        with the preparation
        and filing of any Registration Statement hereunder, unless such Investor
        has
        notified the
        Company in writing of such Investor’s election to exclude all of such Investor’s
        Registrable Securities from such Registration Statement.

       

      c. Each
        Investor agrees that, upon receipt of any notice from the Company of the
        happening of any event of the kind described in Section 3(g) or the first
        sentence of 3(f), such Investor will immediately discontinue disposition
        of
        Registrable Securities pursuant to any Registration
        Statement(s) covering such Registrable Securities until such Investor’s receipt
        of the copies
        of
        the supplemented or amended prospectus contemplated by Section 3(g) or the
        first
        sentence of 3(f) or receipt of notice that no supplement or amendment is
        required.

       

      d. Each
        Investor covenants and agrees that it will comply with the prospectus delivery
        requirements of the 1933 Act as applicable to or an exemption therefrom it
        in
connection
        with sales of Registrable Securities pursuant to the Registration
        Statement.

       

      
        	5.	
                EXPENSES
                  OF REGISTRATION.

              

      

       

      All
        reasonable expenses, other than underwriting discounts and commissions, incurred
        in connection
        with registrations, filings or qualifications pursuant to Sections 2 and
        3,
        including,

      
        without
          limitation, all registration, listing and qualifications fees, printers
          and
          accounting fees, and
          fees
          and disbursements of counsel for the Company related to registrations shall
          be
          paid by the Company.

      

      
        
          
            
               

            

          

          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
        	6.	
                INDEMNIFICATION.

              

      

       

      In
        the
        event any Registrable Securities are included in a Registration Statement
        under
        this Agreement:

       

      a.
        To the
        fullest extent permitted by law, the Company will, and hereby does, indemnify,
        hold harmless and defend each Investor, the directors, officers, members,
        partners, employees, agents and representatives of, and each Person, if any,
        who
        controls any Investor within the meaning of the 1933 Act or the 1934 Act
        (each,
        an “Indemnified
        Person”), against
        any losses, claims, damages, liabilities, judgments, fines, penalties, charges,
        costs, reasonable attorneys’
        fees, amounts paid in settlement or expenses, joint or several, (collectively,
        “Claims”)
        incurred
        in investigating, preparing or defending any action, claim, suit, inquiry,
        proceeding, investigation or appeal taken from the foregoing by or before
        any
        court or governmental, administrative or other regulatory agency, body or
        the
        SEC, whether pending or threatened, whether or not an indemnified party is
        or
        may be a party thereto (“Indemnified
        Damages”), to
        which
        any
        of them may become subject insofar as such Claims (or actions or proceedings,
        whether
        commenced or threatened, in respect thereof) arise out of or are based upon:
        (i)
        any untrue statement of a material fact in a Registration Statement or any
        post-effective amendment thereto or in any filing made in connection with
        the
        qualification of the offering under the securities
        or other “blue sky” laws of any jurisdiction in which Investor Registrable
        Securities are
        offered, or the omission to state a material fact required to be stated therein
        or necessary to make
        the
        statements therein not misleading, (ii) any untrue statement of a material
        fact
        contained in
        any
        preliminary prospectus if used prior to the effective date of such Registration
        Statement, or
        contained in the final prospectus (as amended or supplemented, if the Company
        files any amendment thereof or supplement thereto with the SEC) or the omission
        to state therein any material fact necessary to make the statements made
        therein, in light of the circumstances under which
        the
        statements therein were made, not misleading, (iii) any violation by the
        Company
        of the
        1933
        Act, the 1934 Act, any other law, including, without limitation, any state
        securities law, or
        any
        rule or regulation thereunder relating to the offer or sale of the Registrable
        Securities pursuant
        to a Registration Statement or (iv) any violation of this Agreement (the
        matters
        in the foregoing
        clauses (i) through (iv) being, collectively, “Violations”).
        Subject
        to Section 6(c), the Company
        shall reimburse the Indemnified Persons, promptly as such expenses are incurred
        and are
        due
        and payable, for any reasonable legal fees or other reasonable expenses incurred
        by them in connection with investigating or defending any such Claim.
        Notwithstanding anything to the contrary contained herein, the indemnification
        agreement contained in this Section 6(a) (i) shall not apply to a Claim by
        an
        Indemnified Person arising out of or based upon a Violation which occurs
        in
        conformity with information furnished in writing to the Company by such
        Indemnified Person
        expressly for use in connection with the preparation of the Registration
        Statement or any such
        amendment thereof or supplement thereto, and (ii) shall not apply to amounts
        paid in settlement
        of any Claim if such settlement is effected without the prior written consent
        of
        the Company, which consent shall not be unreasonably withheld or delayed.
        Such
        indemnity shall remain in full force and effect regardless of any investigation
        made by or on behalf of the Indemnified
        Person and shall survive the transfer of the Registrable Securities by the
        Investors pursuant to Section 9.

      

      
        
          
             

          

          
          

        

        
          12

          
            

          

        

        
          
          

          
            

          

        

      

       

      b. In
        connection with any Registration Statement in which an Investor is participating,
        each such Investor agrees to severally and not jointly indemnify, hold harmless
        and defend,
        to the same extent and in the same manner as is set forth in Section 6(a),
        the
        Company, its
        directors, officers employees, agents and representatives and each Person,
        if
        any, who controls
        the Company within the meaning of the 1933 Act or the 1934 Act (each, an
        “Indemnified
        Party”), against
        any Claim for Indemnified Damages to which any of them may become subject,
        under
        the 1933 Act, the 1934 Act or otherwise, insofar as such Claim for Indemnified
        Damages arises out of or is based upon any Violation, in each case to the
        extent, and only to the extent, that such Violation occurs in reliance upon
        and
        in conformity with written information
        furnished to the Company by such Investor expressly for use in connection
        with
such
        Registration Statement; and, subject to Section 6(c), such Investor will
        reimburse any reasonable
        legal or other expenses reasonably incurred by Indemnified Party in connection
        with investigating
        or defending any such Claim; provided,
        however, that
        the
        indemnity agreement contained
        in this Section 6(b) and the agreement with respect to contribution contained
        in
Section
        7
        shall not apply to amounts paid in settlement of any Claim if such settlement
        is
effected
        without the prior written consent of such Investor, which consent shall not
        be
        unreasonably withheld or delayed; provided,
        further, however, that
        each
        Investor shall be liable under
        this Section 6(b) for only that amount of a Claim or Indemnified Damages
        as does
        not exceed
        the net proceeds to such Investor as a result of the sale of Registrable
        Securities pursuant to
        such
        Registration Statement. Such indemnity shall remain in full force and effect
        regardless of
        any
        investigation made by or on behalf of such Indemnified Party and shall survive
        the transfer
        of the Registrable Securities by the Investors pursuant to Section 9.
        Notwithstanding anything
        to the contrary contained herein, the indemnification agreement contained
        in
        this Section
        6(b) with respect to any preliminary prospectus shall not inure to the benefit
        of any Indemnified
        Party if the untrue statement or omission of material fact contained in the
        preliminary
        prospectus was corrected on a timely basis in the prospectus, as then amended
        or
        supplemented.

       

      c. Promptly
        after receipt by an Indemnified Person or Indemnified Party under this
Section
        6
        of notice of the commencement of any action or proceeding (including any
        governmental
        action or proceeding) involving a Claim, such Indemnified Person or Indemnified
        Party
        shall, if a Claim in respect thereof is to be made against any indemnifying
        party under this Section 6, deliver to the indemnifying party a written notice
        of the commencement thereof, and the indemnifying party shall have the right
        to
        participate in, and, to the extent the indemnifying party
        so
        desires, jointly with any other indemnifying party similarly noticed, to
        assume
        control of the
        defense thereof with counsel mutually satisfactory to the indemnifying party
        and
        the Indemnified Person or the Indemnified Party, as the case may be; provided,
        however, that an Indemnified Person or Indemnified Party shall have the right
        to
        retain its own counsel with the fees
        and
        expenses of not more than one counsel for such Indemnified Person or Indemnified
        Party
        to
        be paid by the indemnifying party, if, in the reasonable opinion of counsel
        retained by the
        indemnifying party, the representation by such counsel of the Indemnified
        Person
        or Indemnified Party and the indemnifying party would be inappropriate due
        to
        actual or potential differing interests between such Indemnified Person or
        Indemnified Party and any other party represented by such counsel in such
        proceeding. In the case of an Indemnified Person, legal counsel
        referred to in the immediately preceding sentence shall be selected by the
        Investors holding
        at least a majority in interest 

       

       

      
        
          
             

          

          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      of
        the
        Registrable Securities included in the Registration Statement
        to which the Claim relates. The Indemnified Party or Indemnified Person shall
        cooperate
        reasonably with the indemnifying party in connection with any negotiation
        or
        defense of
        any
        such action or Claim by the indemnifying party and shall furnish to the
        indemnifying party
        all
        information reasonably available to the Indemnified Party or Indemnified
        Person
        which relates
        to such action or Claim. The indemnifying party shall keep the Indemnified
        Party
        or Indemnified Person fully apprised at all times as to the status of the
        defense or any settlement negotiations
        with respect thereto. No indemnifying party shall be liable for any settlement
        of any action,
        claim or proceeding effected without its prior written consent, provided,
        however, that the indemnifying
        party shall not unreasonably withhold, delay or condition its consent. No
        indemnifying
        party shall, without the prior written consent of the Indemnified Party or
        Indemnified
        Person, consent to entry of any judgment or enter into any settlement or
        other
compromise
        which does not include as an unconditional term thereof the giving by the
        claimant or
        plaintiff to such Indemnified Party or Indemnified Person of a release from
        all
        liability in respect to such Claim or litigation. Following indemnification
        as
        provided for hereunder, the indemnifying
        party shall be subrogated to all rights of the Indemnified Party or Indemnified
        Person
        with respect to all third parties, firms or corporations relating to the
        matter
        for which indemnification has been made. The failure to deliver written notice
        to the indemnifying party within a reasonable time of the commencement of
        any
        such action shall not relieve such indemnifying
        party of any liability to the Indemnified Person or Indemnified Party under
        this
Section
        6, except to the extent that the indemnifying party is prejudiced in its
        ability
        to defend such
        action.

       

      d. The
        indemnification required by this Section 6 shall be made by periodic
payments
        of the amount thereof during the course of the investigation or defense,
        as and
        when bills
        are
        received or Indemnified Damages are incurred.

       

      e. The
        indemnity agreements contained herein shall be in addition to (i) any cause
        of
action
        or
        similar right of the Indemnified Party or Indemnified Person against the
        indemnifying party
        or
        others and (ii) any liabilities the indemnifying party may be subject to
        pursuant to the law.

       

      
        	7.	
                CONTRIBUTION.

              

      

       

      To
        the
        extent any indemnification by an indemnifying party is prohibited or limited
        by
law,
        the
        indemnifying party agrees to make the maximum contribution with respect to
        any
amounts
        for which it would otherwise be liable under Section 6 to the fullest extent
        permitted by law;
        provided, however, that: (i) no Person involved in the sale of Registrable
        Securities which Person
        is
        guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
        of
        the 1933 Act)
        in
        connection with such sale shall be entitled to contribution from any Person
        involved in such
        sale
        of Registrable Securities who was not guilty of fraudulent misrepresentation;
        and (ii)
        contribution by any seller of Registrable Securities shall be limited in
        amount
        to the net amount of proceeds received by such seller from the sale of such
        Registrable Securities pursuant to such Registration Statement.

      

      
        
          
          

          
          

        

        
          14

          
            

          

        

        
          
          

          
             

          

        

      

       

      
        	8.	
                REPORTS
                  UNDER THE 1934 ACT.

              

      

       

      With
        a
        view to making available to the Investors the benefits of Rule 144 promulgated
        under
        the
        1933 Act or any other similar rule or regulation of the SEC that may at any
        time
        permit the
        Investors to sell securities of the Company to the public without registration
        (“Rule
        144”), the
        Company agrees to:

       

      a. make
        and
        keep public information available, as those terms are understood and
defined
        in Rule 144;

       

      b. file
        with
        the SEC in a timely manner all reports and other documents required of
the
        Company under the 1933 Act and the 1934 Act so long as the Company remains
        subject to such
        requirements (it being understood that nothing herein shall limit the Company’s
        obligations under
        Section 4(c) of the Securities Purchase Agreement) and the filing of such
        reports and other documents
        is required for the applicable provisions of Rule 144; and

       

      c.
        furnish to each Investor so long as such Investor owns Registrable Securities,
        promptly
        upon request, (i) a written statement by the Company, if true, that it has
        complied with the
        reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a
        copy
        of the most recent annual or quarterly report of the Company and such other
        reports and documents so filed by the Company, and (iii) such other information
        as may be reasonably requested to permit the Investors to sell such securities
        pursuant to Rule 144 without registration.

       

      
        	9.	
                ASSIGNMENT
                  OF REGISTRATION RIGHTS.

              

      

       

      The
        rights under this Agreement shall be automatically assignable by the Investors
        to any transferee
        of all or any portion of such Investor’s Investor Registrable Securities if (i)
        the Investor
        agrees in writing with the transferee or assignee to assign such rights,
        and a
        copy of such
        agreement is furnished to the Company within a reasonable time after such
        assignment; (ii)
        the
        Company is, within a reasonable time after such transfer or assignment,
        furnished with written notice of (a) the name and address of such transferee
        or
        assignee, and (b) the securities with
        respect to which such registration rights are being transferred or assigned;
        (iii) immediately following
        such transfer or assignment the further disposition of such securities by
        the
        transferee or assignee is restricted under the 1933 Act and applicable state
        securities laws; (iv) at or before the
        time
        the Company receives the written notice contemplated by clause (ii) of this
        sentence the transferee
        or assignee agrees in writing with the Company to be bound by all of the
        provisions contained
        herein; and (v) such transfer shall have been made in accordance with the
        applicable requirements
        of the Purchase Agreement.

       

      
        	10.	
                AMENDMENT
                  OF REGISTRATION RIGHTS.

              

      

       

      Provisions
        of this Agreement may be amended and the observance thereof may be waived
        (either generally or in a particular instance and either retroactively or
        prospectively), only with
        the
        written consent of the Company and the Required Holders. Any amendment or
        waiver
effected
        in accordance with this Section 10 shall be binding upon each Investor and
        the
Company.
        No such amendment shall be effective to the extent that it applies to less
        than
        all of the
        holders of the Registrable Securities. No consideration shall be offered
        or paid
        to any Person to
        amend
        or consent to a waiver or modification of any provision of any of this Agreement
        unless
        the same consideration also is offered to all of the parties to this
        Agreement.

      

      
        
          
            
               

            

          

          
          

        

        
          15

          
            

          

        

        
          
          

          
             

          

        

      

      
        	11.	
                MISCELLANEOUS.

              

      

       

      a. A
        Person
        is deemed to be a holder of Registrable Securities whenever such Person
owns
        or
        is deemed to own of record such Registrable Securities. If the Company receives
        conflicting
        instructions, notices or elections from two or more Persons with respect
        to the
        same Registrable
        Securities, the Company shall act upon the basis of instructions, notice
        or
        election received from such record owner of such Registrable
        Securities.

       

      b. Any
        notices, consents, waivers or other communications required or permitted
        to be
        given under the terms of this Agreement must be in writing and will be deemed
        to
        have been delivered: (i) upon receipt, when delivered personally; (ii) upon
        receipt, when sent by facsimile (provided confirmation of transmission is
        mechanically or electronically generated and kept on file by the sending
        party);
        or (iii) one Business Day after deposit with a nationally recognized
overnight
        delivery service, in each case properly addressed to the party to receive
        the
        same. The addresses
        and facsimile numbers for such communications shall be:

       

      If
        to the
        Company:

      Mohen,
        Inc. d/b/a Spiral Frog

      95
        Morton
        Street

      Ground
        Fl.

      New
        York,
        NY 10014

      Attention: Joe
        Mohen, Chairman

       

      With
        copies to: 

       

      Gottbetter
        & Partners, LLP

      488
        Madison Avenue

      New
        York,
        NY 10022

      Attention: D.
        Morgan
        Burkett, Esq.

      Telephone: (212)
        400-6900

      Facsimile: (212)
        400-6901

       

      If
        to a
        Buyer, to its address and facsimile number set forth on the Schedule of Buyers
        attached hereto,
        with copies to such Buyer’s representatives as set forth on the Schedule of
        Buyers, or to such
        other address and/or facsimile number and/or to the attention of such other
        Person as the recipient
        party has specified by written notice given to each other party five (5)
        days
        prior to the effectiveness
        of such change. If to an Investor other than a Buyer, to the address and
        facsimile number provided to the Company in accordance with Section 9, or
        to
        such other address and/or facsimile
        number and/or to the attention of such other Person as the recipient party
        has
        specified by
        written notice given to each other party five (5) days prior to the
        effectiveness of such change. Written
        confirmation of receipt (A) given by the recipient of such notice, consent,
        waiver or other
        communication, (B) mechanically or electronically generated by the sender’s
        facsimile machine containing the time, date, recipient facsimile number and
        an
        image of the first page of such transmission or (C) provided by a courier
        or
        overnight courier service shall be rebuttable evidence
        of personal service, receipt by facsimile or receipt from a nationally
        recognized overnight
        delivery service in accordance with clause (i), (ii) or (iii) above,
        respectively.

      

      
        
          
             

          

          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      c. Failure
        of any party to exercise any right or remedy under this Agreement or
otherwise,
        or delay by a party in exercising such right or remedy, shall not operate
        as a
        waiver thereof.

       

      d. All
        questions concerning the construction, validity, enforcement and interpretation
        of this Agreement shall be governed by the internal laws of the State of
        New
        York, without
        giving effect to any choice of law or conflict of law provision or rule (whether
        of the State
        of
        New York or any other jurisdictions) that would cause the application of
        the
        laws of any jurisdictions
        other than the State of New York. Each party 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 suit, action or proceeding, any claim that it is not personally
        subject to the jurisdiction of any such court, that such suit, action or
        proceeding is brought in an inconvenient forum
        or
        that the venue of such suit, action or proceeding is improper. Each party
        hereby
irrevocably
        waives personal service of process and consents to process being served in
        any
        such suit,
        action or proceeding by mailing a copy thereof to such party at the address
        for
        such 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. If any provision of
        this
Agreement
        shall be invalid or unenforceable in any jurisdiction, such invalidity or
        unenforceability
        shall not affect the validity or enforceability of the remainder of this
        Agreement in
        that
        jurisdiction or the validity or enforceability of any provision of this
        Agreement in any other
        jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
        HAVE,
        AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
        OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING
        OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

       

      e. This
        Agreement, the other Transaction Documents (as defined in the Purchase
        Agreement), and the instruments referenced herein and therein constitute
        the
        entire agreement among the parties hereto with respect to the subject matter
        hereof and thereof. There are no restrictions,
        promises, warranties or undertakings, other than those set forth or referred
        to
        herein and
        therein. This Agreement, the other Transaction Documents, and the instruments
        referenced herein
        and therein supersede all prior agreements and understandings among the parties
        hereto with
        respect to the subject matter hereof and thereof.

       

      f. Subject
        to the requirements of Section 9, this Agreement shall inure to the benefit
        of
        and be binding upon the permitted successors and assigns of each of the parties
        hereto.

       

      g. The
        headings in this Agreement are for convenience of reference only and shall
        not
        limit
        or otherwise affect the meaning hereof.

       

      h. This
        Agreement may be executed in identical counterparts, each of which shall
        be
deemed
        an
        original but all of which shall constitute one and the same agreement. This
        Agreement,
        once executed by a party, may be delivered to the other party hereto by
        facsimile transmission
        of a copy of this Agreement bearing the signature of the party so delivering
        this Agreement.

      

      
        
          
          

          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      i. Each
        party shall do and perform, or cause to be done and performed, all such further
        acts and things, and shall execute and deliver all such other agreements,
        certificates, instruments and documents, as any other party may reasonably
        request in order to carry out the intent
        and accomplish the purposes of this Agreement and the consummation of the
        transactions contemplated
        hereby.

       

      j. All
        consents and other determinations required to be made by the Investors
pursuant
        to this Agreement shall be made, unless otherwise specified in this Agreement,
        by the Required Holders.

       

      k. The
        language used in this Agreement will be deemed to be the language chosen
        by
        the
        parties to express their mutual intent and no rules of strict construction
        will
        be applied against any party.

       

      l. This
        Agreement is intended for the benefit of the parties hereto and their
respective
        permitted successors and assigns, and is not for the benefit of, nor may
        any
        provision hereof
        be
        enforced by, any other Person.

       

      m.
        The
        obligations of each Investor hereunder are several and not joint with the
        obligations
        of any other Investor, and no provision of this Agreement is intended to
        confer
        any obligations
        on any Investor vis-à-vis any other Investor. Nothing contained herein, and no
        action taken
        by
        any Investor pursuant hereto, shall be deemed to constitute the Investors
        as a
partnership,
        an association, a joint venture or any other kind of entity, or create a
        presumption that
        the
        Investors are in any way acting in concert or as a group with respect to
        such
        obligations or the transactions contemplated herein.

       

      [
        SIGNATURE PAGE FOLLOWS ]

      

      
        
          
            
               

            

          

          
          

        

        
          18

          
            

          

        

        
          
          

          
            

          

        

      

      IN
        WITNESS WHEREOF, each Buyer and the Company have caused their respective
        signature
        page to this Registration Rights Agreement to be duly executed as of the
        date
        first written
        above.

       

      
        	
                 COMPANY: 

                 

                MOHEN, INC.

                 

                 

              	 	 	 BUYERS:
                
	/s/ Orville
                Hagler	 	 	/s/ 
	
                
Name:
                Orville Hagler	 	 	
                
Name:
	Title: Corporate
                Secretary	 	 	 

      

       

       

      
        
          
            
               

            

            
            

          

          
            19

            
              

            

          

          
            
            

            
              

            

          

        

      SCHEDULE
        OF BUYERS

       

      

 

      
        	
                 

                Buyer 

              	
                Buyer Address 

                and Facsimile Number 

              	
                Buyer’s Representative’s 

                Address and Facsimile Number

              
	 	 	 
	 Scott A. Stagg 	 7 Castle Brooke Rd.	 
	 	 West Harrison, NY 10604	 
	 	 	 
	 Amir Khan 	 40 Liberty St	 
	 	 Wilton, CT 06897	 
	 	 	 
	
                Mark
                  Focht 

              	 4 Fortune Way 	 
	 	 Montebello NY 10901	 
	 	 	 
	 Robert A. Noble	 276 Jefferson Avenue	 
	 	 Island Park, NY 11558	 

      

       

      

      
        
          
          

          
          

        

        
          20

          
            

          

        

        
          
          

          
            

          

        

      

      EXHIBIT
        A

      FORM
        OF NOTICE OF EFFECTIVENESS 

      OF
        REGISTRATION STATEMENT 

       

      _______________,
        2007

       

      RE:
        MOHEN, INC. 

       

       

      Ladies
        and Gentlemen:

       

      We
        are
        counsel to Mohen, Inc., (the “Company”),
        and
        have
        represented the Company in connection
        with that certain Purchase Agreement, dated as of [ ], 2007 (the “Purchase
        Agreement”),
        entered
        into by and among the Company and the Buyers set forth on Schedule I
attached
        thereto (the “Buyers”)
        pursuant
        to which the Company has agreed to sell to the Buyers (i)
        up to
        Five Million Dollars ($5,000,000) of secured exchangeable notes, which shall
        be
exchangeable
        into shares (the “Exchange
        Shares”) of
        the
        Company’s Class A common stock, par value
        $.001 per share (the “Common
        Stock”). Pursuant
        to the Purchase Agreement, the Company also has entered into a Registration
        Rights Agreement, dated as of April [ ], 2007, with
        the
        Buyer (the “Investor
        Registration Rights Agreement”) pursuant
        to which the Company agreed, among other things, to register the Exchange
        Shares
        under the Securities Act of 1933, as amended (the “1933
        Act”).
        In
        connection with the Company’s obligations under the Purchase Agreement
        and the Investor Registration Rights Agreement, on _____,
        2007,
        the Company filed
        a
        Registration Statement (File No. ___-)
        (the
“Registration
        Statement”) with
        the
Securities
        and Exchange Commission (the “SEC”) relating to the sale of the Exchange
        Shares.

       

      In
        connection with the foregoing, we advise the Transfer Agent that a member
        of the
        SEC’s staff has
        advised us by telephone that the SEC has entered an order declaring the
        Registration Statement
        effective under the 1933 Act at ____ P.M. on_____ ,
        2007
        and we have no knowledge,
        after telephonic inquiry of a member of the SEC’s staff, that any stop order
suspending
        its effectiveness has been issued or that any proceedings for that purpose
        are
        pending before,
        or threatened by, the SEC and the Exchange Shares are available for sale
        under
        the 1933 Act pursuant to the Registration Statement.

       

      The
        Buyer
        has confirmed it shall comply with all securities laws and regulations
        applicable to it including
        applicable prospectus delivery requirements upon sale of the Exchange Shares.
        Very
        truly yours,

       

       

       

      By:________________________________Exhibit 4.4

    Exhibit
      4.4

    
 

    SECURITY
      AGREEMENT

     

    SECURITY
      AGREEMENT, dated
      as
      of March [●], 2007 (this "Agreement")
      made
      by
Mohen,
      Inc. d/b/a Spiral Frog, a
      Delaware corporation (the "Company"
      or
      "Grantor"),
      in
      favor
      of
      Gottbetter Capital Finance, LLC. in its capacity as collateral agent (in such
      capacity, the "Collateral
      Agent") for
      the
      "Buyers" (as defined below) party to the Purchase Agreement, dated as
      of
      even date herewith (as amended, restated or otherwise modified from time to
      time, the "Purchase
      Agreement").

     

    W
      I T N E S S E TH:

     

    WHEREAS,
      the Company and each party listed as a "Buyer" on the Schedule of Buyers
attached
      thereto (collectively, the "Buyers")
      are
      parties to the Purchase Agreement, pursuant to which
      the
      Company shall be required to sell, and the Buyers shall purchase or have the
      right to purchase,
      the "Notes" (as defined therein) issued pursuant thereto (as such Notes may
      be
amended,
      restated, replaced or otherwise modified from time to time in accordance with
      the terms
      thereof, collectively, the "Notes");

     

    WHEREAS,
      it is a condition precedent to the Buyers purchasing the Notes pursuant to
      the
      Purchase Agreement that the Company shall have executed and delivered to the
      Collateral Agent
      this Agreement providing for the grant to the Collateral Agent for the benefit
      of the Buyers
      of
      a security interest in all personal property of the Company to secure all of
      the
Company's
      obligations under the Purchase Agreement, the Notes and the other Transaction
      Documents
      as defined in the Purchase Agreement (the “Transaction
      Documents”); and

     

    WHEREAS,
      the parties to such Transaction Documents wish to amend and restate this
agreement,
      making certain changes thereto;

     

    NOW,
      THEREFORE, in consideration of the premises and the agreements herein and in
      order to induce the Buyers to perform under the Purchase Agreement, the Company
      agrees with the
      Collateral Agent, for the benefit of the Buyers, as follows:

     

    SECTION
      1. DEFINITIONS.

     

    (a)  Reference
      is hereby made to the Purchase Agreement and the Notes for a statement
      of the terms thereof. All terms used in this Agreement and the recitals hereto
      which are
      defined in the Purchase Agreement, the Notes or in Articles 8 or 9 of the
      Uniform Commercial
      Code as in effect from time to time in the State of New York (the "Code"),
      and
      which
      are
      not otherwise defined herein shall have the same meanings herein as set forth
      therein; provided
      that
      terms used herein which are defined in the Code as in effect in the State of
      New
York
      on
      the date hereof shall continue to have the same meaning notwithstanding any
      replacement
      or amendment of such statute except as the Collateral Agent may otherwise
determine.

    (b)  The
      following terms shall have the respective meanings provided for in the Code:
      "Accounts","Cash
      Proceeds", "Chattel Paper", "Commercial Tort Claim", "Commodity Account",
      "Commodity Contracts", "Deposit Account", "Documents", "Equipment", "Fixtures",
      "General
      Intangibles", "Goods", "Instruments", "Inventory", "Investment Property",
      "Letter-of-Credit Rights", "Noncash Proceeds", "Payment Intangibles",
      "Proceeds", "Promissory Notes", "Security",
      "Record", "Security Account", "Software", and "Supporting
      Obligations".

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (c)
      As
      used in this Agreement, the following terms shall have the respective
meanings
      indicated below, such meanings to be applicable equally to both the singular
      and
      plural forms
      of
      such terms:

     

    "Collateral"
      shall
      have the meaning set forth in Section 2 hereof.

     

    "Copyright
      Licenses" means
      all
      licenses, contracts or other agreements, whether written
      or oral, naming the Company as licensee or licensor and providing for the grant
      of any right to use or sell any works covered by any copyright (including,
      without limitation, all Copyright
      Licenses set forth in Schedule
      II hereto).

     

    "Copyrights"
      means
      all
      domestic and foreign copyrights, whether registered or not,
      including, without limitation, all copyright rights throughout the universe
      (whether now or hereafter
      arising) in any and all media (whether now or hereafter developed), in and
      to
      all original
      works of authorship fixed in any tangible medium of expression, acquired or
      used
      by the Company
      (including, without limitation, all copyrights described in Schedule
      II hereto),
      all applications, registrations and recordings thereof (including, without
      limitation, applications, registrations
      and recordings in the United States Copyright Office or in any similar office
      or
agency
      of
      the United States or any other country or any political subdivision thereof),
      and all reissues, divisions, continuations, continuations in part and extensions
      or renewals thereof.

    "Event
      of Default" shall
      have the meaning set forth in the Notes. "GAAP"
      shall
      have the meaning set forth in Section 4(a) hereof.

    "Insolvency
      Proceeding" means
      any
      proceeding commenced by or against any Person
      under any provision of the Bankruptcy Code (Chapter 11 of Title 11 of the United
      States Code) or under any other bankruptcy or insolvency law, assignments for
      the benefit of creditors, formal
      or
      informal moratoria, compositions, or extensions generally with creditors, or
      proceedings
      seeking reorganization, arrangement, or other similar relief.

     

    "Intellectual
      Property" means
      the
      Copyrights, Trademarks and Patents.

     

            "Licenses"
      means
      the
      Copyright Licenses, the Trademark Licenses and the Patent Licenses.

     

    "Lien"
      means
      any
      mortgage, deed of trust, pledge, lien (statutory or otherwise), security
      interest, charge or other encumbrance or security or preferential arrangement
      of
      any nature,
      including, without limitation, any conditional sale or title retention
      arrangement, any capitalized
      lease and any assignment, deposit arrangement or financing lease intended as,
      or
having
      the effect of, security.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

            “Obligations”
      shall
      have the meaning set forth in Section 3 hereof.

     

    "Patent
      Licenses" means
      all
      licenses, contracts or other agreements, whether written or oral, naming the
      Company as licensee or licensor and providing for the grant of any right
      to
      manufacture, use or sell any invention covered by any Patent (including, without
      limitation, all Patent Licenses set forth in Schedule
      II hereto).

     

    "Patents"
      means
      all
      domestic and foreign letters patent, design patents, utility patents,
      industrial designs, inventions, trade secrets, ideas, concepts, methods,
      techniques, processes,
      proprietary information, technology, know-how, formulae, rights of publicity
      and
other
      general intangibles of like nature, now existing or hereafter acquired
      (including, without limitation,
      all domestic and foreign letters patent, design patents, utility patents,
      industrial designs,
      inventions, trade secrets, ideas, concepts, methods, techniques, processes,
      proprietary information,
      technology, know-how and formulae described in Schedule
      II hereto),
      all applications,
      registrations and recordings thereof (including, without limitation,
      applications, registrations and recordings in the United States Patent and
      Trademark Office, or in any similar office
      or
      agency of the United States or any other country or any political subdivision
      thereof), and
      all
      reissues, divisions, continuations, continuations in part and extensions or
      renewals thereof.

    "Trademark
      Licenses" means
      all
      licenses, contracts or other agreements, whether
      written or oral, naming the Company as licensor or licensee and providing for
      the grant of
      any
      right concerning any Trademark, together with any goodwill connected with and
      symbolized
      by any such trademark licenses, contracts or agreements and the right to prepare
      for sale
      or
      lease and sell or lease any and all Inventory now or hereafter owned by the
      Company and now
      or
      hereafter covered by such licenses (including, without limitation, all Trademark
      Licenses described
      in Schedule
      II hereto).

     

    "Trademarks"
      means
      all
      domestic and foreign trademarks, service marks, collective marks, certification
      marks, trade names, business names, d/b/a's, Internet domain names,
      trade styles, designs, logos and other source or business identifiers and all
      general intangibles
      of like nature, now or hereafter owned, adopted, acquired or used by the Company
      (including,
      without limitation, all domestic and foreign trademarks, service marks,
      collective marks,
      certification marks, trade names, business names, d/b/a's, Internet domain
      names, trade styles,
      designs, logos and other source or business identifiers described in
Schedule
      II hereto),
      all
      applications, registrations and recordings thereof (including, without
      limitation, applications, registrations
      and recordings 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), and all reissues, extensions or renewals
      thereof, together with all goodwill of
      the
      business symbolized by such marks and all customer lists, formulae and other
      Records of the
      Company relating to the distribution of products and services in connection
      with
      which any of
      such
      marks are used.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    SECTION
      2. GRANT
      OF SECURITY INTEREST. As
      collateral security for all of the Obligations,
      the Company hereby pledges and assigns to the Collateral Agent for the benefit
      of the
      Buyers, and grants to the Collateral Agent for the benefit of the Buyers a
      continuing security interest
      in, all personal property of the Company, wherever located and whether now
      or
      hereafter existing
      and whether now owned or hereafter acquired, of every kind and description,
      tangible or intangible
      (collectively, the "Collateral"),
      including,
      without limitation, the following:

     

    
      	
            	(a)	
              all
                Accounts;

            

    

     

    
      	
            	(b)	
              all
                Chattel Paper (whether tangible or
                electronic);

            

    

     

    
      	
            	(c)	
              the
                Commercial Tort Claims;

            

    

     

    (d)  all
      Deposit Accounts, all cash, and all other property from time to time deposited
      therein
      and the monies and property in the possession or under the control of the
      Collateral Agent or any Buyer or any affiliate, representative, agent or
      correspondent of the Collateral Agent
      or
      any Buyer;

     

    (e)  all
      Documents;

     

    (f)  all
      Fixtures;

     

    (g)  all
      General Intangibles (including, without limitation, all Payment
      Intangibles);

     

    (h)  all
      Goods;

     

    (i)  all
      Instruments (including, without limitation, Promissory Notes and each
      certificated Security);

     

    (j)  all
      Inventory;

     

    (k)  all
      Investment Property;

     

    (l)  all
      Copyrights, Patents and Trademarks, and all Licenses;

     

    (m)  all
      Letter-of-Credit Rights;

     

    (n)  all
      Supporting Obligations;

     

    (o)
      all
      other tangible and intangible personal property of the Company (whether or
      not
      subject to the Code), including, without limitation, all bank and other accounts
      and all cash and
      all
      investments therein, all proceeds, products, offspring, accessions, rents,
      profits, income, benefits,
      substitutions and replacements of and to any of the property of the Company
      described in
      the
      preceding clauses of this Section
      2 (including,
      without limitation, any proceeds of insurance
      thereon and all causes of action, claims and warranties now or hereafter held
      by
      the Company
      in respect of any of the items listed above), and all books, correspondence,
      files and other
      Records, including, without limitation, all tapes, desks, cards, Software,
      data
      and computer programs
      in the possession or under the control of the Company or any other Person from
      time to time
      acting for the Company that at any time evidence or contain information relating
      to any of the
      property described in the preceding clauses of this Section
      2 or
      are
      otherwise necessary or helpful
      in the collection or realization thereof; and

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (p) all
      Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of
      any
      and
      all of the foregoing Collateral;

     

    in
      each
      case, howsoever, the Company's interest therein may arise or appear (whether
      by
ownership,
      security interest, claim or otherwise); provided,
      that
      no
      security interest is granted in Equipment.

     

    SECTION
      3. SECURITY
      FOR OBLIGATIONS. The
      security interest created hereby in the Collateral constitutes continuing
      collateral security for all of the following obligations, whether now
      existing or hereafter incurred (collectively, the "Obligations"):

     

    (a)  the
      payment by the Company, as and when due and payable (by scheduled maturity,
      required prepayment, acceleration, demand or otherwise), of all amounts from
      time to time
      owing by it in respect of the Purchase Agreement, the Notes and the other
      Transaction Documents,
      including, without limitation, (A) all principal of and interest on the Notes
      (including, without limitation, all interest that accrues after the commencement
      of any Insolvency
      Proceeding of the Company, whether or not the payment of such interest is
unenforceable
      or is not allowable due to the existence of such Insolvency Proceeding), and
      (B)
all
      fees,
      commissions, expense reimbursements, indemnifications and all other amounts
      due
      or to become
      due under any of the Transaction Documents; and

     

    (b)  the
      due
      performance and observance by the Company of all of its other obligations
      from time to time existing in respect of any of the Transaction Documents,
      including without
      limitation, with respect to any conversion or redemption rights of the Buyers
      under the Notes,
      for so long as the Notes are outstanding.

     

    SECTION
      4. REPRESENTATIONS
      AND WARRANTIES. The
      Company represents and warrants
      as follows:

     

    (a)  Schedule
      I hereto sets forth (i) the exact legal name of the Company, and (ii) the
organizational
      identification number of the Company or states that no such organizational
      identification
      number exists.

     

    (b)  There
      is
      no pending or written notice threatening any action, suit, proceeding or
claim
      affecting the Company before any governmental authority or any arbitrator,
      or,
      to the knowledge of the Company, any order, judgment or award by any
      governmental authority or arbitrator, that may adversely affect the grant by
      the
      Company, or the perfection, of the security interest
      purported to be created hereby in the Collateral, or the exercise by the
      Collateral Agent of
      any of
      its rights or remedies hereunder.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      (c) Except
        as
        otherwise disclosed in the Purchase Agreement, all Federal, state and
local
        tax
        returns and other reports required by applicable law to be filed by the Company
        have been
        filed, or extensions have been obtained, and all taxes, assessments and other
        governmental charges
        imposed upon the Company or any property of the Company (including, without
        limitation,
        all Federal income and social security taxes on employees' wages) and which
        have
become
        due and payable on or prior to the date hereof have been paid, except to
        the
        extent contested
        in good faith by proper proceedings which stay the imposition of any penalty,
        fine or Lien
        resulting from the non-payment thereof and with respect to which adequate
        reserves have been
        set
        aside for the payment thereof in accordance with accounting principles generally
        accepted
        in the United States ("GAAP")
        consistently
        applied.

       

    

    (d)  All
      Equipment, Fixtures, Goods and Inventory of the Company now existing are, and
      all Equipment, Fixtures, Goods and Inventory of the Company hereafter existing
      will be, located
      and/or based at the addresses specified therefor in Schedule
      III hereto,
      except that the Company
      will give the Collateral Agent written notice of any change in the location
      of
      any such Collateral
      within 20 days of such change, other than to locations set forth on Schedule
      III hereto
      (or
      a new
      Schedule III delivered by the Company to Collateral Agent from time to time)
      and
with
      respect to which the Collateral Agent has filed financing statements and
      otherwise fully perfected
      its Liens thereon. The Company's chief place of business and chief executive
      office, the place where the Company keeps its Records concerning Accounts and
      all originals of all Chattel
      Paper are located at the addresses specified therefor in Schedule
      III hereto.
      None of the Accounts
      is evidenced by Promissory Notes or other Instruments. Set forth in Schedule
      IV hereto
      is
      a complete and accurate list, as of the date of this Agreement, of (i) each
      Promissory Note,
      Security and other Instrument owned by the Company and (ii) each Deposit
      Account, Securities
      Account and Commodities Account of the Company, together with the name and
      address
      of each institution at which each such Account is maintained, the account number
      for each
      such
      Account and a description of the purpose of each such Account. Set forth in
      Schedule
      II
      hereto
      is a complete and correct list of each trade name used by the Company and the
      name of, and
      each
      trade name used by, each person from which the Company has acquired any
      substantial part
      of
      the Collateral.

     

    (e)  The
      Company has delivered to the Collateral Agent complete and correct copies
of
      each
      License described in Schedule
      II hereto,
      including all schedules and exhibits thereto, which
      represents all of the material Licenses existing on the date of this Agreement.
      Each such License
      sets forth the entire agreement and understanding of the parties thereto
      relating to the subject
      matter thereof, and there are no other agreements, arrangements or
      understandings, written
      or oral, relating to the matters covered thereby or the rights of the Company
      or
      any of its affiliates
      in respect thereof. Each material License now existing is, and any material
      License entered
      into in the future will be, the legal, valid and binding obligation of the
      parties thereto, enforceable
      against such parties in accordance with its terms. No default under any material
      License
      by any such party has occurred, nor does any defense, offset, deduction or
      counterclaim exist
      thereunder in favor of any such party.

     

    (f)
      The
      Company owns and controls, or otherwise possesses adequate rights to use,
all
      its
      Trademarks, Patents and Copyrights, which are the only trademarks, patents,
      copyrights, inventions,
      trade secrets, proprietary information and technology, know-how, formulae,
      rights of publicity
      necessary to conduct its business in substantially the same manner as conducted
      as of the
      date
      hereof. Schedule
      II hereto
      sets forth a true and complete list of all registered copyrights, issued
      Patents, Trademarks, and Licenses annually owned or used by the Company as
      of
      the date hereof.
      To the knowledge of the Company, all such Intellectual Property of the Company
      is in full
      force and effect, has not been adjudged invalid or unenforceable, is valid
      and
      enforceable and
      has
      not been abandoned in whole or in part. Except as set forth in Schedule II,
      no
      such Intellectual
      Property is the subject of any licensing or franchising agreement. The Company
      has no
      knowledge of any conflict with the rights of others to any Intellectual Property
      and, to the knowledge
      of the Company, the Company is not now infringing or in conflict with any such
      rights
      of
      others in any material respect, and to the knowledge of the Company, no other
      Person is now
      infringing or in conflict in any material respect with any such properties,
      assets and rights owned
      or
      used by the Company. The Company has not received any notice that it is
      violating or has
      violated the trademarks, patents, copyrights, inventions, trade secrets,
      proprietary information and technology, know-how, formulae, rights of publicity
      or other intellectual property
      rights of any third party.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (g)  The
      Company is and will be at all times the sole and exclusive owner of, or
otherwise
      has and will have adequate rights in, the Collateral pledged hereunder by the
      Company free
      and
      clear of any Liens, except for Permitted Liens on any Collateral and except
      as
      otherwise provided
      for herein. No effective financing statement or other instrument similar in
      effect covering
      all or any part of the Collateral is on file in any recording or filing office
      except such (i) as
      may
      have been filed in favor of the Collateral Agent and/or the Buyers relating
      to
      this Agreement,
      (ii) as shall be filed at the Closing and (iii) as are identified in Schedule
      4(g) hereto.

     

    (h)  The
      exercise by the Collateral Agent of any of its rights and remedies hereunder
      will
      not
      contravene any law or any contractual restriction binding on or otherwise
      affecting the Company
      or any of its properties.

     

    (i)
      No
      authorization or approval or other action by, and no notice to or filing with,
      any
      governmental authority or other regulatory body, or any other Person, is
      required for (i) the grant by the Company, or the perfection, of the security
      interest purported to be created hereby in the
      Collateral, or (ii) the exercise by the Collateral Agent any of its rights
      and
      remedies hereunder,
      except (A) for the filing under the Uniform Commercial Code as in effect in
      the
applicable
      jurisdiction of the financing statements described in Schedule
      V hereto
      (or a new Schedule
      V delivered
      by the Company to Collateral Agent from time to time), all of which financing
      statements have been duly filed and are in full force and effect or will be
      duly
      filed and in
      full
      force and effect, (B) with respect to Deposit Accounts, and all cash and other
      property from
      time
      to time deposited therein, for the execution of a control agreement with the
      depository institution with which such account is maintained, as provided in
      Section
      5(i), (C)
      with
      respect to Commodity
      Contracts, for the execution of a control agreement with the commodity
intermediary
      with which such commodity contract is carried, as provided in Section
      5(i), (D)
      with
      respect to the perfection of the security interest created hereby in the
      Intellectual Property, for
      the
      recording of the appropriate Assignment for Security, substantially in the
      form
      of Exhibit
      A
      hereto,
      as applicable, in the United States Patent and Trademark Office or the United
      States Copyright Office, as applicable, (E) with respect to the perfection
      of
      the security interest created hereby in foreign Intellectual Property and
      Licenses, for registrations and filings in jurisdictions located
      outside of the United States and covering rights in such jurisdictions relating
      to the Intellectual
      Property and Licenses, (F) with respect to the perfection of the security
      interest created
      hereby in Titled Collateral, for the submission of an appropriate application
      requesting that
      the
      Lien of the Collateral Agent be noted on the Certificate of Title or certificate
      of ownership,
      completed and authenticated by the Company, together with the Certificate of
      Title or
      certificate of ownership, with respect to such Titled Collateral, to the
      appropriate governmental
      authority, (G) with respect to the perfection of the security interest created
      hereby in
      any
      Letter-of-Credit Rights, for the consent of the issuer of the applicable letter
      of credit to the assignment
      of proceeds as provided in the Uniform Commercial Code as in effect in the
      applicable
      jurisdiction, (H) with respect to any action that may be necessary to obtain
      control of Collateral constituting Deposit Accounts, Commodity Contracts,
      Electronic Chattel Paper, Investment Property or Letter-of-Credit Rights, the
      taking of such actions, and (I) the Collateral Agent having possession of all
      Documents, Chattel Paper, Instruments and cash constituting Collateral
      (subclauses (A), (B), (C), (D), (E), (F),
      G), (H)
      and (I),
      each a
"Perfection
      Requirement"
      and
      collectively, the "Perfection
      Requirements").

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (j)  This
      Agreement creates in favor of the Collateral Agent a legal, valid and
enforceable
      security interest in the Collateral, as security for the Obligations. Collateral
      Agent’s satisfaction
      of the Perfection Requirements will result in the perfection of such security
      interests. Such
      security interests will be, perfected, first priority security interests,
      subject only to Permitted
      Liens and the recording of such instruments of assignment.

     

    (k)  As
      of the
      date hereof, the Company holds no Commercial Tort Claims nor is aware
      of
      any such pending claims.

     

    SECTION
      5. COVENANTS
      AS TO THE COLLATERAL. So
      long
      as any of the Obligations shall
      remain outstanding, unless the Collateral Agent shall otherwise consent in
      writing:

     

    (a)
      Further
      Assurances. The
      Company will at its expense, at any time and from time to
      time,
      promptly execute and deliver all further instruments and documents and take
      all
      further action
      that the Collateral Agent may reasonably request in order to: (i) perfect and
      protect the security
      interest purported to be created hereby; (ii) enable the Collateral Agent to
      exercise and enforce its rights and remedies hereunder in respect of the
      Collateral; or (iii) otherwise effect the purposes
      of this Agreement, including, without limitation: (A) marking conspicuously
      all
Chattel
      Paper and each License and, at the request of the Collateral Agent, each of
      its
      Records pertaining
      to the Collateral with a legend, in form and substance satisfactory to the
      Collateral Agent,
      indicating that such Chattel Paper, License or Collateral is subject to the
      security interest created
      hereby, (B) delivering and pledging to the Collateral Agent each Promissory
      Note, Security,
      Chattel Paper or other Instrument, now or hereafter owned by the Company, duly
      endorsed
      and accompanied by executed instruments of transfer or assignment, all in form
      and substance satisfactory to the Collateral Agent, (C) executing and filing
      (to
      the extent, if any, that the Company's signature is required thereon) or
      authenticating the filing of, such financing or continuation
      statements, or amendments thereto, as may be necessary or desirable or that
      the
Collateral
      Agent may request in order to perfect and preserve the security interest
      purported to be created
      hereby, (D) furnishing to the Collateral Agent from time to time statements
      and
schedules
      further identifying and describing the Collateral and such other reports in
      connection with
      the
      Collateral in each case as the Collateral Agent may reasonably request, all
      in
      reasonable detail,
      (E) if any Collateral shall be in the possession of a third party, notifying
      such Person of the
      Collateral Agent's security interest created hereby and obtaining a written
      acknowledgment from
      such
      Person that such Person holds possession of the Collateral for the benefit
      of
      the Collateral
      Agent, which such written acknowledgement shall be in form and substance
satisfactory
      to the Collateral Agent (F) if at any time after the date hereof, the Company
      acquires or
      holds
      any Commercial Tort Claim, promptly notifying the Collateral Agent in a writing
      signed by
      the
      Company setting forth a brief description of such Commercial Tort Claim and
      granting to the
      Collateral Agent a security interest therein and in the proceeds thereof, which
      writing shall incorporate
      the provisions hereof and shall be in form and substance satisfactory to the
      Collateral Agent,
      (G) upon the acquisition after the date hereof by the Company of any motor
      vehicle or other Equipment subject to a certificate of title or ownership (other
      than a Motor Vehicle or Equipment
      that is subject to a purchase money security interest), causing the Collateral
      Agent to be
      listed
      as the lienholder on such certificate of title or ownership and delivering
      evidence of the same
      to
      the Collateral Agent in accordance with the Purchase Agreement; and (H) taking
      all actions
      required by any earlier versions of the Uniform Commercial Code or by other
      law,
      as applicable,
      in any relevant Uniform Commercial Code jurisdiction, or by other law as
      applicable in
      any
      foreign jurisdiction.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (b)  Location
      of Equipment and Inventory. The
      Company will keep the Equipment and Inventory at the locations specified
      therefor on Schedule III hereto, or, at such other locations
      in the United States, provided that within 10 days following the relocation
      of
Equipment
      or Inventory to such other location, The Company shall deliver to the Collateral
      Agent
      a
      new Schedule III indicating such new location.

     

    (c)  [
      Reserved. ]

     

    (d)  Taxes,
      Etc. The
      Company agrees to pay promptly when due all property and other
      taxes, assessments and governmental charges or levies imposed upon, and all
      claims (including
      claims for labor, materials and supplies) against, the Equipment and Inventory,
      except to
      the
      extent the validity thereof is being contested in good faith by proper
      proceedings which stay
      the
      imposition of any penalty, fine or Lien resulting from the non-payment thereof
      and with respect
      to which adequate reserves in accordance with GAAP have been set aside for
      the
payment
      thereof.

     

    (e)  Insurance.

     

    (i)
      The
      Company will, at its own expense, maintain insurance (including, without
      limitation, commercial general liability and property insurance) with respect
      to
the
      Equipment and Inventory in such amounts, against such risks, in such form and
      with responsible and reputable insurance companies or associations as is
      required by any governmental
      authority having jurisdiction with respect thereto or as is carried generally
      in
      accordance with sound business practice by companies in similar businesses
      similarly situated
      and in any event, in amount, adequacy and scope reasonably satisfactory to
      the
Collateral
      Agent. To the extent requested by the Collateral Agent at any time and from
      time
      to
      time, each such policy for liability insurance shall provide for all losses
      to
      be paid on
      behalf
      of the Collateral Agent and the Company as their respective interests may
appear,
      and each policy for property damage insurance shall provide for all losses
      to be
adjusted
      with, and paid directly to, the Collateral Agent. To the extent requested by
      the
      Collateral Agent at any time and from time to time, each such policy shall
      in
      addition (A) name the Collateral Agent as an additional insured party thereunder
      (without any representation
      or warranty by or obligation upon the Collateral Agent) as their interests
      may
      appear, (B) contain an agreement by the insurer that any loss thereunder shall
      be payable
      to the Collateral Agent on its own account notwithstanding any action, inaction
      or
      breach
      of representation or warranty by the Company, (C) provide that there shall
      be
no
      recourse against the Collateral Agent for payment of premiums or other amounts
      with respect
      thereto, and (D) provide that at least 30 days prior written notice of
      cancellation, lapse,
      expiration or other adverse change shall be given to the Collateral Agent by
      the
insurer.
      The Company will, if so requested by the Collateral Agent, deliver to the
Collateral
      Agent original or duplicate policies of such insurance and, as often as the
      Collateral
      Agent may reasonably request, a report of a reputable insurance broker with
      respect
      to such insurance. The Company will also, at the reasonable request of the
      Collateral
      Agent, execute and deliver instruments of assignment of such insurance
policies
      and cause the respective insurers to acknowledge notice of such
      assignment.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (ii)  Reimbursement
      under any liability insurance maintained by the Company pursuant
      to this Section
      5(e) may
      be
      paid directly to the Person who shall have incurred liability
      covered by such insurance. Following the occurrence of an Event of Default
      and
until
      such Event of Default has been cured and no amounts payable under the Notes
      are
due
      but
      not paid, in the case of any loss involving damage to Equipment or Inventory,
      any
      proceeds of insurance maintained by the Company pursuant to this Section
      5(e) shall
      be
      paid
      to the Collateral Agent (except as to which paragraph (iii) of this Section
      5(e) is
      not
      applicable), the Company will make or cause to be made the necessary repairs
      to
      or replacements
      of such Equipment or Inventory, and any proceeds of insurance maintained
by
      the
      Company pursuant to this Section
      5(e) shall
      be
      paid by the Collateral Agent to the Company
      as reimbursement for the costs of such repairs or replacements.

     

    (iii)  All
      insurance payments in respect of such Equipment or Inventory shall be
paid
      to
      the Collateral Agent and applied as specified in Section
      7(b) hereof.

     

    
      	
            	(f
              ) 	
              Provisions
                Concerning the Accounts and the
                Licenses.

            

    

     

    (i)  The
      Company will (A) give the Collateral Agent at least 30 days prior written
      notice of any change in the Company's name, identity or organizational
      structure, (B)
      maintain its jurisdiction of incorporation as set forth in Section
      4(b) hereto,
      (C) immediately notify the Collateral Agent upon obtaining an organizational
      identification number,
      if on the date hereof the Company did not have such identification number,
      and
      (D) keep adequate records concerning the Accounts and Chattel Paper and permit
      representatives of the Collateral Agent during normal business hours on
      reasonable notice to
      the
      Company, to inspect and make abstracts from such Records and Chattel
      Paper.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (ii)  The
      Company will, except as otherwise provided in this subsection (f), use
commercially
      reasonable efforts to continue to collect, at its own expense, all amounts
      due
      or to
      become due under the Accounts. The Collateral Agent shall have the right at
      any
      time,
      upon the occurrence and during the continuance of an Event of Default, to
notify
      the account debtors or obligors under any Accounts of the assignment of such
      Accounts
      to the Collateral Agent and to direct such account debtors or obligors to make
      payment
      of all amounts due or to become due to the Company thereunder directly to the
      Collateral
      Agent or its designated agent and, upon such notification and at the expense
      of
the
      Company and to the extent permitted by law, to enforce collection of any such
      Accounts
      and to adjust, settle or compromise the amount or payment thereof, in the same
      manner and to the same extent as may Grantor might have done. After receipt
      by
      the Company of a notice from the Collateral Agent that the Collateral Agent
      has
      notified, intends
      to notify, or has enforced or intends to enforce the Company's rights against
      the account debtors or obligors under any Accounts as referred to in the proviso
      to the immediately
      preceding sentence, upon the occurrence of an Event of Default and for so
long
      as
      an Event of Default shall be continuing, (A) all amounts and proceeds (including
      Instruments)
      received by the Company in respect of the Accounts shall be received in trust
      for the benefit of the Collateral Agent hereunder, shall be segregated from
      other funds of the Company and shall be forthwith paid over to the Collateral
      Agent in the same
      form
      as so received (with any necessary endorsement) to be held as cash collateral
      and
      either (i) credited to the outstanding obligations so long as no Event of
      Default shall have
      occurred and be continuing or (ii) if an Event of Default shall have occurred
      and be continuing,
      applied as specified in Section
      7(b) hereof,
      and (B) the Company will adjust, settle or compromise the amount or payment
      of
      any Account or release wholly or partly any
      account debtor or obligor thereof or allow any credit or discount thereon.
      In
addition,
      upon the occurrence and during the continuance of an Event of Default, the
      Collateral
      Agent may (in its sole and absolute discretion) direct any or all of the banks
      and
      financial institutions with which the Company either maintains a Deposit Account
      or a
      lockbox
      or deposits the proceeds of any Accounts to send immediately to the Collateral
      Agent
      by
      wire transfer (to such account as the Collateral Agent shall specify, or in
      such
other
      manner as the Collateral Agent shall direct) all or a portion of such
      securities, cash, investments
      and other items held by such institution; provided, that if Collateral Agent
      shall
      give such a notice it shall, upon notification and verification of the
      discontinuance of
      the
      applicable Event of Default, promptly give a notice to each such bank and
      financial institution
      that it should no longer send any such securities, cash, investments or other
      items
      to
      the Collateral, and the Collateral Agent shall return all such items theretofore
      received
      (except to the extent properly applied against the Obligations) to the Company.
      Subject
      to the preceding sentence, any such securities, cash, investments and other
      items so
      received by the Collateral Agent shall be applied as specified in accordance
      with Section
      7 hereof.

     

    (iii)
      Upon the occurrence and during the continuance of any breach or default
under
      any
      material License referred to in Schedule
      II hereto
      by
      any party thereto other than
      the
      Company, the Company will, promptly after obtaining knowledge thereof, give
      the
      Collateral Agent written notice of the nature and duration thereof, specifying
      what action,
      if any, it has taken and proposes to take with respect thereto and thereafter
      will take
      reasonable steps to protect and preserve its rights and remedies in respect
      of
      such breach
      or
      default, or will obtain or acquire an appropriate substitute License if
      reasonably necessary
      in the continued conduct of the Company’s business as theretofore
      conducted.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (iv)  The
      Company will, at its expense, promptly deliver to the Collateral Agent
a
      copy of
      each notice or other communication received by it by which any other party
      to
any
      material License referred to in Schedule
      II hereto
      purports to exercise any of its rights
      or
      affect any of its obligations thereunder, together with a copy of any reply
      by
      the Company
      thereto.

     

    (v)  The
      Company will exercise promptly and diligently each and every right which it
      may
      have under each material License (other than any right of termination) and
      will
      duly perform and observe in all respects all of its obligations under each
      material License
      and will take all action reasonably necessary to maintain such Licenses in
      full
force
      and
      effect.

     

    
      	
            	(g)	
              Transfers
                and Other Liens.

            

    

     

    (i)  The
      Company will sell, assign (by operation of law or otherwise), lease, license,
      exchange or otherwise transfer or dispose of any of the Collateral, except
      (A)
Inventory
      in the ordinary course of business, (B) damaged, worn-out or obsolete assets
      not
      necessary to the business and (C) other assets not exceeding, individually
      or in
      the aggregate,
      $25,000.

     

    (ii)  The
      Company will create, suffer to exist or grant any Lien upon or with respect
      to any Collateral other than Permitted Liens.

     

    
      	
            	(h)	
              Intellectual
                Property.

            

    

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (i)
      If
      applicable, the Company shall, upon the Collateral Agent's written request,
      duly execute and deliver the applicable Assignment for Security in the form
      attached
      hereto as Exhibit
      A. The
      Company (either itself or through licensees) will, and will
      cause each licensee thereof to, take all commercially reasonable action
      necessary to maintain all of the Intellectual Property material to the Company
      in full force and effect, including,
      without limitation, using the proper statutory notices and markings and using
      the
      Trademarks on each applicable trademark class of goods in order to so maintain
      the Trademarks
      in full force and free from any claim of abandonment for non-use, and the
Company
      will not (nor permit any licensee thereof to) do any act or knowingly omit
      to do
any
      act
      whereby any Intellectual Property may become invalidated; provided,
      however, that
      so
      long as no Event of Default has occurred and is continuing, the Company shall
      have
      an
      obligation to use or to maintain any Intellectual Property (A) that relates
      solely to any product or work, that has been, or is in the process of being,
      discontinued, abandoned or
      terminated, (B) that is being replaced with Intellectual Property substantially
      similar to the
      Intellectual Property that may be abandoned or otherwise become invalid, so
      long
      as the
      failure to use or maintain such Intellectual Property does not materially
      adversely affect the validity of such replacement Intellectual Property and
      so
      long as such replacement
      Intellectual Property is subject to the Lien created by this Agreement or (C)
      that
      is
      substantially the same as another Intellectual Property that is in full force,
      so long the
      failure to use or maintain such Intellectual Property does not materially
      adversely affect
      the validity of such replacement Intellectual Property and so long as such
      other
Intellectual
      Property is subject to the Lien and security interest created by this
Agreement.
      The Company will cause to be taken all necessary steps in any proceeding
before
      the United States Patent and Trademark Office and the United States Copyright
      Office
      or
      any similar office or agency in any other country or political subdivision
      thereof to
      maintain each registration of the Intellectual Property (other than the
      Intellectual Property
      described in the proviso to the immediately preceding sentence), including,
      without limitation, filing of renewals, affidavits of use, affidavits of
      incontestability and opposition,
      interference and cancellation proceedings and payment of maintenance fees,
      filing fees, taxes or other governmental fees. If any Intellectual Property
      (other than Intellectual
      Property described in the proviso to the first sentence of subsection (i) of
      this clause (h))
      is
      infringed, misappropriated, diluted or otherwise violated in any material
respect
      by a third party, the Company shall (x) upon learning of such infringement,
      misappropriation,
      dilution or other violation, promptly notify the Collateral Agent and (y) to
      the
      extent the Company shall deem appropriate under the circumstances, promptly
      sue
for
      infringement, misappropriation, dilution or other violation, seek injunctive
      relief where
      appropriate and recover any and all damages for such infringement, misappropriation,
      dilution or other violation, or take such other actions as the Company
shall
      deem appropriate under the circumstances to protect such Intellectual Property.
      The Company
      shall furnish to the Collateral Agent, from time to time upon its request,
      statements
      and schedules further identifying and describing the Intellectual Property
      and
Licenses
      and such other reports in connection with the Intellectual Property and Licenses
      as
      the
      Collateral Agent may reasonably request, all in reasonable detail and promptly
      upon
      request of the Collateral Agent, following receipt by the Collateral Agent
      of
      any such
      statements, schedules or reports, the Company shall modify this Agreement by
      amending
      Schedule
      II hereto,
      as the case may be, to include any Intellectual Property and License, as the
      case may be, which becomes part of the Collateral under this Agreement
      and shall execute and authenticate such documents and do such commercially
      reasonable
      acts as shall be necessary or, in the judgment of the Collateral Agent,
desirable
      to subject such Intellectual Property and Licenses to the Lien and security
      interest created by this Agreement. Notwithstanding anything herein to the
      contrary, upon
      the
      occurrence and during the continuance of an Event of Default, the Company
may
      not
      abandon or otherwise permit any Intellectual Property to become invalid without
      the
      prior
      written consent of the Collateral Agent, which consent shall not be unreasonably
      withheld
      or delayed, and if any Intellectual Property is infringed, misappropriated,
      diluted or
      otherwise violated in any material respect by a third party, the Company will
      take such action
      as
      the Collateral Agent shall deem appropriate under the circumstances to protect
      such
      Intellectual Property.

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      (ii)
        In
        no event shall the Company, either itself or through any agent, employee,
        licensee or designee, file an application for the registration of any Trademark
        or
        Copyright or the issuance of any Patent with the United States Patent and
        Trademark Office
        or
        the United States Copyright Office, as applicable, or in any similar office
        or
agency
        of
        the United States or any country or any political subdivision thereof unless
        it
gives
        the
        Collateral Agent prior written notice thereof. Upon request of the Collateral
        Agent,
        the Company shall execute, authenticate and deliver any and all assignments,
        agreements,
        instruments, documents and papers as the Collateral Agent may reasonably
        request
        to evidence the Collateral Agent's security interest hereunder in such
        Intellectual Property
        and the General Intangibles of the Company relating thereto or represented
        thereby, and the Company hereby appoints the Collateral Agent its
        attorney-in-fact to execute
        and/or authenticate and file all such writings for the foregoing purposes,
        all
        acts of
        such
        attorney being hereby ratified and confirmed, and such power (being coupled
        with
        an interest) shall be irrevocable until the indefeasible payment in full
        in cash
        of all of
        the
        Obligations in full and the termination of each of the Transaction
        Documents.

    

     

    (i)  Deposit,
      Commodities and Securities Accounts. Upon
      the
      Collateral Agent's written
      request, the Company shall use its best efforts to cause each bank and other
      financial institution
      with an account referred to in Schedule
      IV hereto
      to
      execute and deliver to the Collateral
      Agent a control agreement, in form and substance reasonably satisfactory to
      the
Collateral
      Agent, duly executed by the Company and such bank or financial institution,
      or
      enter into
      other arrangements in form and substance satisfactory to the Collateral Agent,
      pursuant to which
      such institution shall irrevocably agree, inter
      alia, that
      (i)
      upon the occurrence and during the
      continuation of an Event of Default, it will comply at any time with the
      instructions originated by the Collateral Agent to such bank or financial
      institution directing the disposition of
      cash,
      Commodity Contracts, securities, Investment Property and other items from time
      to time credited
      to such account, without further consent of the Company, which instructions
      the
Collateral
      Agent will not give to such bank or other financial institution in the absence
      of a continuing
      Event of Default, (ii) all cash, Commodity Contracts, securities, Investment
      Property and
      other
      items of the Company deposited with such institution shall be subject to a
      perfected, first
      priority security interest in favor of the Collateral Agent, (iii) any right
      of
      set off (other than recoupment
      of standard fees), banker's Lien or other similar Lien, security interest or
      encumbrance
      shall be fully waived as against the Collateral Agent, and (iv) upon receipt
      of
written
      notice from the Collateral Agent during the continuance of an Event of Default,
      such bank
      or
      financial institution shall immediately send to the Collateral Agent by wire
      transfer (to such
      account as the Collateral Agent shall specify, or in such other manner as the
      Collateral Agent
      shall direct) all such cash, the value of any Commodity Contracts, securities,
      Investment Property
      and other items held by it. Without the prior written consent of the Collateral
      Agent, the
      Company shall not make or maintain any Deposit Account, Commodity Account or
      Securities
      Account except for the accounts set forth in Schedule
      IV hereto;
      provided that as long as
      there
      is no Event of Default then continuing, the Company may make, open or maintain
      new Deposit
      Accounts without the Collateral Agent’s prior written consent provided that any
      such Deposit
      Accounts shall constitute Collateral under this Agreement and the Company shall
      comply with the provisions of this Agreement with respect thereto. The
      provisions of this paragraph
      5(i) shall not apply to (i) Deposit Accounts for which the Collateral Agent
      is
      the depositary
      and (ii) Deposit Accounts specially and exclusively used for payroll, payroll
      taxes and other
      employee wage and benefit payments to or for the benefit of the Company's
      salaried or hourly
      employees.

    (j)  Motor
      Vehicles.

     

    
      	
            	                      
              (i)	
              Upon
                the Collateral Agent's written request, the Company shall deliver
                to the
                Collateral Agent originals of the certificates of title or ownership
                for
                all motor vehicles
                with a value in excess of $50,000, owned by the Company with the
                Collateral Agent
                listed as lienholder, for the benefit of the
                Buyers.

            

    

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (ii)  The
      Company hereby appoints the Collateral Agent as its attorney-in-fact,
effective
      the date hereof and terminating upon the termination of this Agreement, for
      the
purpose
      of (A) executing on behalf of the Company title or ownership applications for
      filing
      with appropriate state agencies to enable motor vehicles now owned or hereafter
      acquired
      by the Company to be retitled and the Collateral Agent listed as lienholder
      thereof, (B) filing such applications with such state agencies, and (C)
      executing such other
      documents and instruments on behalf of, and taking such other action in the
      name
of,
      the
      Company as the Collateral Agent may deem necessary or advisable to accomplish
      the
      purposes hereof (including, without limitation, for the purpose of creating
      in
      favor of the
      Collateral Agent a perfected Lien on the motor vehicles and exercising the
      rights and remedies
      of the Collateral Agent hereunder). This appointment as attorney-in-fact is
      coupled
      with an interest and is irrevocable until all of the Obligations are
      indefeasibly paid
      in
      full in cash and after all Transaction Documents have been
      terminated.

     

    (iii)  Any
      certificates of title or ownership delivered pursuant to the terms hereof
      shall be accompanied by odometer statements for each motor vehicle covered
      thereby.

     

    (iv)
      So
      long as no Event of Default shall have occurred and be continuing, upon
      the
      request of the Company, the Collateral Agent shall execute and deliver to the
      Company
      such instruments as the Company shall reasonably request to remove the notation
      of the Collateral Agent as lienholder on any certificate of title for any motor
      vehicle;
      provided,
      however, that
      any
      such instruments shall be delivered, and the release effective, only upon
      receipt by the Collateral Agent of a certificate from the Company stating
      that such motor vehicle is to be sold or has suffered a casualty loss (with
      title thereto
      passing to the casualty insurance company therefor in settlement of the claim
      for such loss) and the amount that the Company will receive as sale proceeds
      or
      insurance proceeds.
      Any proceeds of such sale or casualty loss shall be paid to the Collateral
      Agent
hereunder
      immediately upon receipt, to be applied to the Obligations then
      outstanding.

     

    (k)  Control.
      The
      Company hereby agrees to take any or all action that may be necessary
      or desirable or that the Collateral Agent may request in order for the
      Collateral Agent to
      obtain
      control in accordance with Sections 9-105 - 9-107 of the Code with respect
      to
      the following
      Collateral: (i) Electronic Chattel Paper, (ii) Investment Property, and (iii)
      Letter-of-Credit
      Rights.

     

    (l)  Inspection
      and Reporting. The
      Company shall permit the Collateral Agent, or any agent
      or
      representatives thereof or such professionals or other Persons as the Collateral
      Agent may
      designate, not more frequently than once a year in the absence of an Event
      of
      Default, during
      normal business hours, upon reasonable advance notice to the Company, and
      without unreasonably
      disrupting the business of the Company, (i) to examine and make copies of and
      abstracts
      from the Company's records and books of account, (ii) to visit and inspect
      its
properties,
      (iii) to verify materials, leases, Instruments, Accounts, Inventory and other
      assets of the Company from time to time, (iii) to conduct audits, physical
      counts, appraisals and/or valuations,
      examinations at the locations of the Company. The Company shall also, upon
      reasonable
      advance notice from the Collateral Agent, permit the Collateral Agent, or any
      agent or
      representatives thereof or such professionals or other Persons as the Collateral
      Agent may designate,
      to discuss the Company's affairs, finances and accounts with any of its
      directors, officers,
      managerial employees, independent accountants or any of its other
      representatives during
      normal business hours at a time and place to be mutually agreed upon by the
      Collateral Agent
      or
      its designee and the Company.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (m)
      Future
      Subsidiaries. If
      the
      Company shall hereafter create or acquire any Subsidiary,
      simultaneously with the creation of acquisition of such Subsidiary, the Company
      shall
      cause such Subsidiary to become a party to this Agreement as an additional
      "Grantor" hereunder,
      and to duly execute and deliver a guaranty of the Obligations in favor of the
      Collateral
      Agent in form and substance reasonably acceptable to the Collateral Agent,
      and
      to duly
      execute and/or deliver such opinions of counsel and other documents, in form
      and
      substance reasonably
      acceptable to the Collateral Agent, as the Collateral Agent shall reasonably
      request with
      respect thereto.

     

    SECTION
      6. ADDITIONAL
      PROVISIONS CONCERNING THE COLLATERAL.

     

    (a)  The
      Company hereby (i) authorizes the Collateral Agent to file one or more
Uniform
      Commercial Code financing or continuation statements, and amendments thereto,
      relating
      to the Collateral and (ii) ratifies such authorization to the extent that the
      Collateral Agent has
      filed
      any such financing or continuation statements, or amendments thereto, prior
      to
      the date hereof.
      A
      photocopy or other reproduction of this Agreement or any financing statement
      covering
      the Collateral or any part thereof shall be sufficient as a financing statement
      where permitted
      by law.

     

    (b)  The
      Company hereby irrevocably appoints the Collateral Agent as its attorney-in-fact
      and proxy, with full authority in the place and stead of the Company and in
      the
      name of the Company
      or otherwise, from time to time in the Collateral Agent's discretion, so long
      as
      an Event
      of
      Default shall have occurred and is continuing, to take any action and to execute
      any instrument
      which the Collateral Agent may deem necessary or advisable to accomplish the
      purposes
      of this Agreement (subject to the rights of the Company under Section
      5 hereof),
      including,
      without limitation, after the occurrence and during the continuance of an Event
      of Default,
      (i) to obtain and adjust insurance required to be paid to the Collateral Agent
      pursuant to Section
      5(e) hereof,
      (ii) to ask, demand, collect, sue for, recover, compound, receive and give
      acquittance
      and receipts for moneys due and to become due under or in respect of any
      Collateral, (iii)
      to
      receive, endorse, and collect any drafts or other instruments, documents and
      chattel paper in
      connection with clause (i) or (ii) above, (iv) to file any claims or take any
      action or institute any
      proceedings which the Collateral Agent may deem necessary or desirable for
      the
      collection of
      any
      Collateral or otherwise to enforce the rights of the Collateral Agent and the
      Buyers with respect
      to any Collateral, and (v) to execute assignments, licenses and other documents
      to enforce the rights of the Collateral Agent and the Buyers with respect to
      any
      Collateral. This power
      is
      coupled with an interest and is irrevocable until all of the Obligations are
      indefeasibly paid
      in
      full in cash.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (c)  For
      the
      purpose of enabling the Collateral Agent to exercise rights and remedies
hereunder,
      at such time as the Collateral Agent shall be lawfully entitled to exercise
      such
      rights and remedies, and for no other purpose, the Company hereby grants to
      the
      Collateral Agent, to the
      extent assignable, an irrevocable, non-exclusive license (exercisable without
      payment of royalty
      or other compensation to the Company) to use, assign, license or sublicense
      any
Intellectual
      Property now owned or hereafter acquired by the Company, wherever the same
      may
be
      located, including in such license reasonable access to all media in which
      any
      of the licensed items
      may
      be recorded or stored and to all computer programs used for the compilation
      or
printout
      thereof. Notwithstanding anything contained herein to the contrary, but subject
      to the provisions
      of the Purchase Agreement that limit the right of the Company to dispose of
      its
property
      and Section
      5(h) hereof,
      so long as no Event of Default shall have occurred and be continuing,
      the Company may exploit, use, enjoy, protect, license, sublicense, assign,
      sell,
dispose
      of or take other actions with respect to the Intellectual Property in the
      ordinary course of its business. In furtherance of the foregoing, unless an
      Event of Default shall have occurred and be
      continuing, the Collateral Agent shall from time to time, upon the request
      of
      the Company, execute
      and deliver any instruments, certificates or other documents, in the form so
      requested, which
      the
      Company shall have certified are appropriate (in the Company's judgment) to
      allow it to
      take
      any action permitted above (including relinquishment of the license provided
      pursuant to this
      clause (c) as to any Intellectual Property). Further, upon the indefeasible
      payment in full in cash
      of
      all of the Obligations, the Collateral Agent (subject to Section
      10(e) hereof)
      shall release and
      reassign to the Company all of the Collateral Agent's right, title and interest
      in and to the Intellectual
      Property, and the Licenses, all without recourse, representation or warranty
      whatsoever.
      The exercise of rights and remedies hereunder by the Collateral Agent shall
      not
terminate
      the rights of the holders of any licenses or sublicenses theretofore granted
      by
      the Company in accordance with the second sentence of this clause (c). The
      Company hereby releases
      the Collateral Agent from any claims, causes of action and demands at any time
      arising out
      of or
      with respect to any actions taken or omitted to be taken by the Collateral
      Agent
      under the
      powers of attorney granted herein other than actions taken or omitted to be
      taken through the Collateral
      Agent's gross negligence or willful misconduct, as determined by a final
      determination of
      a
      court of competent jurisdiction.

    (d)  If
      the
      Company fails to perform any agreement contained herein, the Collateral Agent
      may itself perform, or cause performance of, such agreement or obligation,
      in
      the name of the
      Company or the Collateral Agent, and the expenses of the Collateral Agent
      incurred in connection
      therewith shall be payable by the Company pursuant to Section
      8 hereof
      and shall be secured
      by the Collateral.

     

    (e)  The
      powers conferred on the Collateral Agent hereunder are solely to protect its
      interest
      in the Collateral and shall not impose any duty upon it to exercise any such
      powers. Except
      for the safe custody of any Collateral in its possession and the accounting
      for
      moneys actually
      received by it hereunder, the Collateral Agent shall have no duty as to any
      Collateral or as
      to the
      taking of any necessary steps to preserve rights against prior parties or any
      other rights pertaining
      to any Collateral.

     

    (f)  Anything
      herein to the contrary notwithstanding, (i) the Company shall remain
liable
      under the Licenses and otherwise with respect to any of the Collateral to the
      extent set forth
      therein to perform all of its obligations thereunder to the same extent as
      if
      this Agreement had
      not
      been executed, (ii) the exercise by the Collateral Agent of any of its rights
      hereunder shall
      not
      release the Company from any of its obligations under the Licenses or otherwise
      in respect
      of the Collateral, and (iii) the Collateral Agent shall not have any obligation
      or liability by
      reason
      of this Agreement under the Licenses or with respect to any of the other
      Collateral, nor shall
      the
      Collateral Agent be obligated to perform any of the obligations or duties of
      the
Company
      thereunder or to take any action to collect or enforce any claim for payment
      assigned hereunder.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    SECTION
      7. REMEDIES
      UPON EVENT OF DEFAULT. If
      any
      Event of Default shall have occurred
      and be continuing:

     

    (a)
      The
      Collateral Agent may exercise in respect of the Collateral, in addition to
      any
other
      rights and remedies provided for herein or otherwise available to it, all of
      the
      rights and remedies of a secured party upon default under the Code (whether
      or
      not the Code applies to the affected Collateral), and also may (i) take absolute
      control of the Collateral, including, without limitation,
      transfer into the Collateral Agent's name or into the name of its nominee or
      nominees (to the extent the Collateral Agent has not theretofore done so) and
      thereafter receive, for the benefit
      of the Collateral Agent, all payments made thereon, give all consents, waivers
      and ratifications
      in respect thereof and otherwise act with respect thereto as though it were
      the
outright
      owner thereof, (ii) require the Company to, and the Company hereby agrees that
      it will at
      its
      expense and upon request of the Collateral Agent forthwith, assemble all or
      part
      of its respective Collateral as directed by the Collateral Agent and make it
      available to the Collateral Agent
      at
      a place or places to be designated by the Collateral Agent that is reasonably
      convenient to
      both
      parties, and the Collateral Agent may enter into and occupy any premises owned
      or leased
      by
      the Company where the Collateral or any part thereof is located or assembled
      for
      a reasonable
      period in order to effectuate the Collateral Agent's rights and remedies
      hereunder or under
      law, without obligation to the Company in respect of such occupation, and (iii)
      without notice
      except as specified below and without any obligation to prepare or process
      the
      Collateral for sale, (A) sell the Collateral or any part thereof in one or
      more
      parcels at public or private sale, at
      any of
      the Collateral Agent's offices or elsewhere, for cash, on credit or for future
      delivery, and
      at
      such price or prices and upon such other terms as the Collateral Agent may
      deem
commercially
      reasonable and/or (B) lease, license or dispose of the Collateral or any part
      thereof upon
      such
      terms as the Collateral Agent may deem commercially reasonable. The Company
      agrees
      that, to the extent notice of sale or any other disposition of its respective
      Collateral shall be
      required by law, at least ten (10) days notice to the Company of the time and
      place of any public
      sale or the time after which any private sale or other disposition of its
      respective Collateral is to be made shall constitute reasonable notification.
      The Collateral Agent shall not be obligated to
      make
      any sale or other disposition of any Collateral regardless of notice of sale
      having been given. The Collateral Agent may adjourn any public or private sale
      from time to time by announcement
      at the time and place fixed therefor, and such sale may, without further notice,
      be made
      at
      the time and place to which it was so adjourned. The Company hereby waives
      any
claims
      against the Collateral Agent and the Buyers arising by reason of the fact that
      the price at which
      its
      respective Collateral may have been sold at a private sale was less than the
      price which might
      have been obtained at a public sale or was less than the aggregate amount of
      the
Obligations,
      even if the Collateral Agent accepts the first offer received and does not
      offer
      such Collateral
      to more than one offeree, and waives all rights that the Company may have to
      require that
      all
      or any part of such Collateral be marshalled upon any sale (public or private)
      thereof. The
      Company hereby acknowledges that (i) any such sale of its respective Collateral
      by the Collateral
      Agent shall be made without warranty, (ii) the Collateral Agent may specifically
      disclaim
      any warranties of title, possession, quiet enjoyment or the like, and (iii)
      such
      actions set forth in clauses (i) and (ii) above shall not adversely effect
      the
      commercial reasonableness of any such
      sale
      of Collateral. In addition to the foregoing, (1) upon written notice to the
      Company from
      the
      Collateral Agent after and during the continuance of an Event of Default, the
      Company shall
      cease any use of the Intellectual Property or any trademark, patent or copyright
      similar thereto
      for any purpose described in such notice; (2) the Collateral Agent may, at
      any
      time and from
      time
      to time, upon 10 days prior notice to the Company, license, whether general,
      special or otherwise, and whether on an exclusive or non-exclusive basis, any
      of
      the Intellectual Property, throughout
      the universe for such term or terms, on such conditions, and in such manner,
      as
      the Collateral Agent shall in its sole discretion determine; and (3) the
      Collateral Agent may, at any time,
      pursuant to the authority granted in Section
      6 hereof
      (such authority being effective upon the
      occurrence and during the continuance of an Event of Default), execute and
      deliver on behalf of
      the
      Company, one or more instruments of assignment of the Intellectual Property
      (or
      any application
      or registration thereof), in form suitable for filing, recording or registration
      in any country.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (b)  Any
      cash
      held by the Collateral Agent as Collateral and all Cash Proceeds received
      by the Collateral Agent in respect of any sale of or collection from, or other
      realization upon,
      all
      or any part of the Collateral may, in the discretion of the Collateral Agent,
      be
      held by the Collateral Agent as collateral for, and/or then or at any time
      thereafter applied (after payment of
      any
      amounts payable to the Collateral Agent pursuant to Section
      8 hereof)
      in whole or in part by
      the
      Collateral Agent against, all or any part of the Obligations in such order
      as
      the Collateral Agent
      shall elect, consistent with the provisions of the Purchase Agreement. Any
      surplus of such
      cash
      or Cash Proceeds held by the Collateral Agent and remaining after the
      indefeasible payment
      in full in cash of all of the Obligations shall be paid over to whomsoever
      shall
      be lawfully
      entitled to receive the same or as a court of competent jurisdiction shall
      direct.

     

    (c)  In
      the
      event that the proceeds of any such sale, collection or realization are
insufficient
      to pay all amounts to which the Collateral Agent and the Buyers are legally
      entitled, the
      Company shall be liable for the deficiency, together with interest thereon
      at
      the highest rate specified
      in any of the applicable Transaction Documents for interest on overdue principal
      thereof
      or such other rate as shall be fixed by applicable law, together with the costs
      of collection and
      the
      reasonable fees, costs, expenses and other client charges of any attorneys
      employed by the
      Collateral Agent to collect such deficiency.

     

    (d)  The
      Company hereby acknowledges that if the Collateral Agent complies with
any
      applicable state, provincial, or federal law requirements in connection with
      a
      disposition of the
      Collateral, such compliance will not adversely affect the commercial
      reasonableness of any sale
      or
      other disposition of the Collateral.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (e)  The
      Collateral Agent shall not be required to marshal any present or future
collateral
      security (including, but not limited to, this Agreement and the Collateral)
      for,
      or other assurances
      of payment of, the Obligations or any of them or to resort to such collateral
      security or
      other
      assurances of payment in any particular order, and all of the Collateral Agent's
      rights hereunder
      and in respect of such collateral security and other assurances of payment
      shall
      be cumulative and in addition to all other rights, however existing or arising.
      To the extent that the Company
      lawfully may, the Company hereby agrees that it will not invoke any law relating
      to the
      marshalling of collateral which might cause delay in or impede the enforcement
      of the Collateral
      Agent's rights under this Agreement or under any other instrument creating
      or
evidencing
      any of the Obligations or under which any of the Obligations is outstanding
      or
      by which
      any
      of the Obligations is secured or payment thereof is otherwise assured, and,
      to
      the extent
      that it lawfully may, the Company hereby irrevocably waives the benefits of
      all
      such laws.

     

    SECTION
      8. INDEMNITY
      AND EXPENSES.

     

    (a)  The
      Company agrees to defend, protect, indemnify and hold the Collateral Agent
      and
      each
      of the Buyers, jointly and severally, harmless from and against any and all
      claims, damages,
      losses, liabilities, obligations, penalties, fees, costs and expenses
      (including, without limitation, reasonable legal fees, costs, expenses, and
      disbursements of such Person's counsel) to the
      extent that they arise out of or otherwise result from this Agreement
      (including, without limitation,
      enforcement of this Agreement), except claims, losses or liabilities resulting
      solely and
      directly from such Person's gross negligence or willful misconduct, as
      determined by a final judgment
      of a court of competent jurisdiction.

     

    (b)  The
      Company agrees, jointly and severally, to pay to the Collateral Agent upon
      demand
      the amount of any and all costs and expenses, including the reasonable fees,
      costs, expenses
      and disbursements of counsel for the Collateral Agent and of any experts and
      agents (including,
      without limitation, any collateral trustee which may act as agent of the
      Collateral Agent),
      which the Collateral Agent may properly incur under the terms hereof after
      the
occurrence
      and during the continuance of an Event of Default in connection with (i) the
      custody, preservation,
      use or operation of, or the sale of, collection from, or other realization
      upon,
      any Collateral,
      (ii) the exercise or enforcement of any of the rights of the Collateral Agent
      hereunder, or
      (iii)
      the failure by the Company to perform or observe any of the provisions
      hereof.

     

    SECTION
      9. Notices,
      Etc. All
      notices and other communications provided for hereunder shall be in writing
      and
      shall be mailed (by certified mail, postage prepaid and return receipt
      requested), telecopied, e-mailed or delivered, if to the Company at its address
      specified below and
      if to
      the Collateral Agent to it, at its address specified on the signature pages
      below; or as to any
      such
      Person, at such other address as shall be designated by such Person in a written
      notice to
      all
      other parties hereto complying as to delivery with the terms of this
Section
      9. All
      such
notices
      and other communications shall be effective (a) if sent by certified mail,
      return receipt requested,
      when received or three days after deposited in the mails, whichever occurs
      first, (b) if telecopied
      or e-mailed, when transmitted (during normal business hours) and confirmation
      is
received,
      and otherwise, the day after the notice or communication was transmitted and
      confirmation
      is received, or (c) if delivered in person, upon delivery.

    SECTION
      10. MISCELLANEOUS.

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (a)  No
      amendment of any provision of this Agreement shall be effective unless it is
      in
writing
      and signed by the Company and the Collateral Agent, and no waiver of any
      provision of this
      Agreement, and no consent to any departure by the Company therefrom, shall
      be
      effective unless it is in writing and signed by the Company and the Collateral
      Agent, and then such waiver or
      consent shall be effective only in the specific instance and for the specific
      purpose for which given.

     

    (b)  No
      failure on the part of the Collateral Agent to exercise, and no delay in
exercising,
      any right hereunder or under any of the other Transaction Documents shall
      operate as a
      waiver
      thereof; nor shall any single or partial exercise of any such right preclude
      any
      other or further
      exercise thereof or the exercise of any other right. The rights and remedies
      of
      the Buyers and
      the
      Collateral Agent provided herein and in the other Transaction Documents are
      cumulative and
      are
      in addition to, and not exclusive of, any rights or remedies provided by law.
      The rights of
      the
      Collateral Agent under any of the other Transaction Documents against any party
      thereto are
      not
      conditional or contingent on any attempt by such Person to exercise any of
      its
      rights under
      any
      of the other Transaction Documents against such party or against any other
      Person, including
      but not limited to, the Company.

     

    (c)  Any
      provision of this Agreement that is prohibited or unenforceable in any
jurisdiction
      shall, as to such jurisdiction, be ineffective to the extent of such prohibition
      or unenforceability without invalidating the remaining portions hereof or
      thereof or affecting the validity
      or enforceability of such provision in any other jurisdiction.

     

    (d)  This
      Agreement shall create a continuing security interest in the Collateral and
      shall
      (i)
      remain in full force and effect until the indefeasible payment in full in cash
      of the Obligations,
      and (ii) be binding on the Company and all other Persons who become bound as
      debtor
      to
      this Agreement in accordance with Section 9-203(d) of the Code and shall inure,
      together
      with all rights and remedies of the Collateral Agent and the Buyers hereunder,
      to the benefit
      of the Collateral Agent and the Buyers and their respective permitted
      successors, transferees
      and assigns. Without limiting the generality of clause (ii) of the immediately
      preceding
      sentence, without notice to the Company, the Collateral Agent and the Buyers
      may
assign
      or
      otherwise transfer their rights and obligations under this Agreement and any
      of
      the other
      Transaction Documents, to any other Person and such other Person shall thereupon
      become vested
      with all of the benefits in respect thereof granted to the Collateral Agent
      and
      the Buyers herein
      or
      otherwise. Upon any such assignment or transfer, all references in this
      Agreement to the
      Collateral Agent or any such Buyer shall mean the assignee of the Collateral
      Agent or such Buyer.
      None of the rights or obligations of the Company hereunder may be assigned
      or
otherwise
      transferred without the prior written consent of the Collateral Agent, and
      any
      such assignment
      or transfer without the consent of the Collateral Agent shall be null and
      void.

     

    (e)
      Upon
      the indefeasible payment in full in cash of the Obligations, (i) this
Agreement
      and the security interests created hereby shall terminate and all rights to
      the
Collateral
      shall revert to the respective Grantor that granted such security interests
      hereunder, and
      (ii)
      the Collateral Agent will, upon the Company's request and at the Company's
      expense, (A)
      return to the Company such of the Collateral as shall not have been sold or
      otherwise disposed
      of or applied pursuant to the terms hereof, and (B) execute and deliver to
      the
      Company such
      documents as the Company shall reasonably request to evidence such termination,
      all without
      any representation, warranty or recourse whatsoever.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (f)  THIS
      AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED
      IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT
      AS
      REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE
      EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE
      EFFECT OF PERFECTION OR NON-PERFECTION OF THE SECURITY INTEREST CREATED
      HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL
      ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE
      STATE
      OF NEW YORK.

     

    (g)  ANY
      LEGAL
      ACTION, SUIT OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
      OR ANY DOCUMENT RELATED THERETO MAY BE BROUGHT IN THE COURTS
      OF
      THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR THE UNITED
      STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE
      COURTS THEREOF, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
      THE COMPANY HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
      PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
      COURTS. EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES,
      TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING,
      WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS
      OF FORUM
      NON CONVENIENS, WHICH
      IT
      MAY NOW OR
      HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION, SUIT OR PROCEEDING
      IN SUCH RESPECTIVE JURISDICTIONS AND CONSENTS TO THE GRANTING OF SUCH LEGAL
      OR
      EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY
      THE
      COURT.

     

    (h)  THE
      COMPANY AND (BY ITS ACCEPTANCE OF THE BENEFITS OF THIS AGREEMENT)
      THE COLLATERAL AGENT WAIVES ANY RIGHT IT MAY HAVE TO TRIAL
      BY
      JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER
      OR
      IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER TRANSACTION
      DOCUMENTS, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
      VERBAL OR WRITTEN STATEMENT OR OTHER ACTION OF THE PARTIES HERETO.

     

    (i)  Each
      party irrevocably consents to the service of process of any of the aforesaid
      courts
      in
      any such action, suit or proceeding by the mailing of copies thereof by
      registered or certified
      mail (or any substantially similar form of mail), postage prepaid, to such
      party
      at the address of such party specified for notices hereunder, such service
      to
      become effective 10 days after
      such mailing.

     

    (j)
      Nothing contained herein shall affect the right of the Collateral Agent to
      serve
process
      in any other manner permitted by law or commence legal proceedings or otherwise
      proceed against the Company or any property of the Company in any other
      jurisdiction.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (k)  The
      Company irrevocably and unconditionally waives any right it may have to
claim
      or
      recover in any legal action, suit or proceeding referred to in this Section
      any
      special, exemplary,
      punitive or consequential damages.

     

    (l)  Section
      headings herein are included for convenience of reference only and shall
not
      constitute a part of this Agreement for any other purpose.

     

    (m)
      This
      Agreement may be executed in any number of counterparts and by different
parties
      hereto in separate counterparts, each of which shall be deemed to be an
      original, but all of which
      taken together constitute one in the same Agreement.

     

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, each party has caused this Agreement to be executed and
delivered
      by its officer thereunto duly authorized, as of the date first above
      written.

     

    
      	 	 	 
	 	
              MOHEN
                INC.

            
	 
 	 
 	 
 
	Date: 	By:  	/s/ 
	 	
              
Name:Orville
              Hagler
	 	
              Title: Corporate
                Secretary

              Address:

            

    

     

    By: 

     

    ACCEPTED
      BY:

     

    GOTTBETTER
      CAPITAL FINANCE, LLC

    as
      Collateral Agent

     

    By:_________________________________

    Name:

    Title:

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    SCHEDULE
       I

     

    LEGAL
      NAMES; ORGANIZATIONAL IDENTIFICATION NUMBERS; STATES OR

    JURISDICTION
      OF ORGANIZATION 

     

    
      
        
          	
                  Grantor’s
                    Name

                	
                   State
                    of Organization

                	
                   Federal
                    Employer I.D.

                	
                   Organizationla
                    I.D.

                
	 	 	 	 
	
                  Mohen,
                    Inc.

                	
                  Delaware

                	
                  14-1928717

                	 

        
 

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    SCHEDULE
       II

    INTELLECTUAL
      PROPERTY

     

    

     

    Copyrights:
      

    All
      source codes written or developed by the Company is copyrighted. 

     

    Trademarks:

    Spiral
      FrogTM

     

    Licenses:
      

     

    License
      Agreement, dated December 20, 2004, between Good Mood Records and Mohen
      Entertainment Portals, LLC.

     

    AMG
      Data
      License and Data Agreement, dated August 22, 2006, between All Media
      Guide, LLC and Mohen, Inc.

     

    Online
      License Agreement, dated August 7, 2006, between CMRRA-SODRAC Inc.
      and
      Mohen, Inc.

     

            Internet
      License
      Agreement, dated August 3, 2006, between SESAC, Inc. and Mohen,
      Inc.

     

    Website
      Music Performance Agreement, dated October 31, 2005, between Broadcast
      Music, Inc. and Mohen, Inc.

     

    Digital
      Music and Video License Agreement, dated November 15, 2006, between Helene
      Blue Musique Ltd. and Mohen, Inc.

     

    Digital
      Music and Video License Agreement, dated November 3, 2006, between La
      Culpula [House of Music] and Mohen, Inc.

     

    Digital
      Music and Video License Agreement, dated November 15, 2006, between The
      Orchard Enterprises, Inc. and Mohen, Inc.

     

    Digital
      Music and Video License Agreement, dated November 2, 2006, between Kufala
      _____ and Mohen, Inc.

     

    Digital
      Music and Video License Agreement, dated November 21, 2006, between M.C.
      Productions, Inc. and Mohen, Inc.

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    Digital
      Music and Video License Agreement, dated February 12, 2007, between Kudo
      Records Limited and Mohen, Inc.

     

    Digital
      Music and Video License Agreement, dated September 6, 2006, between KOCH
      Entertainment, LP and Mohen, Inc.

     

    License
      Agreement, dated August 23, 2006, between Society of Composers, Authors
      and Music Publishers of Canada and Mohen, Inc.

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    SCHEDULE
       III

     

    LOCATIONS
      

     

     

    
      	 Grantor	
              Chief
                Place of Business
                

              and
                Chief Executive 

              Office

            	
               Books
                and
                Records 

            	 

              Equipment,
                Fixtures,

              Goods
                and Inventory 

            
	 	 	 	 
	 Mohen, Inc.	
              95 Morton St.

              Ground Fl.

              New York, NY 10014

            	 	 

    

     

     

    

 

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    
       

      SCHEDULE  IV

    

     

    PROMISSORY
      NOTES, SECURITIES, DEPOSIT ACCOUNTS, SECURITIES ACCOUNTS

    AND
      COMMODITIES ACCOUNTS

     

    Securities

     

    
      	
               Grantor

            	
               Name
                of
                Issuer    

            	
               Number
                of
                Shares

            	
               Class

            	
              Certificate
                No.(s)

            
	 	 	 	 	 
	 	 	 	 	 

    

    

    
       
Deposit
      Accounts 

     

    
      	
               Grantor 

            	
               Name
                and Address of
                Institution

            	
               Purpose
                of the Account
                

            	
               Account
                No.
                

            
	 	 	 	 
	Mohen, Inc.	 Citibank N.A.	 Checking 	 59236106
	 	 County
              Seat #391	 Checking	 996411542
	 	 199 Second Street	 Insured Money 	 9962314001
	 	 Mineola,
              NY 11501	 Market	 9965470296
	 	 Routing
              Transit Number: 021000089	 Escrow	 

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    Schedule
      4(g)

     

    Effective
      Financing Statements 

     

    None.

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    
      SCHEDULE  V

       

    

    FINANCING
      STATEMENTS 

     

     

    
      	The Company 	
              Jurisdictions
                For Filing Financing
                Statements

            	 	 
	 	 	 	 
	Mohen,
              Inc.	
                Delaware

            	 	 

    

     

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A 

    ASSIGNMENT
      FOR SECURITY 

    [TRADEMARKS]
      [PATENTS] [COPYRIGHTS] 

     

    WHEREAS,
      _______________________________ (the
      "Assignor")
      [has
      adopted, used
      and
      is using, and holds all right, title and interest in and to, the trademarks
      and
      service marks
      listed on the annexed Schedule
      1A, which
      trademarks and service marks are registered or applied
      for in the United States Patent and Trademark Office (the "Trademarks")]
      [holds
      all right,
      title and interest in the letter patents, design patents and utility patents
      listed on the annexed
      Schedule
      1A, which
      patents are issued or applied for in the United States Patent and Trademark
      Office (the "Patents")]
      [holds
      all right, title and interest in the copyrights listed on the annexed
      Schedule
      1A, which
      copyrights are registered in the United States Copyright Office (the
"Copyrights")];

     

    WHEREAS,
      the Assignor has entered into a Security Agreement, dated as of July
31,
      2006
      (as amended, restated or otherwise modified from time to time the "Security
      Agreement"),
      in
      favor
      Gottbetter Capital Finance, LLC, as collateral agent for certain purchasers
      (the
      "Assignee");

     

    WHEREAS,
      pursuant to the Security Agreement, the Assignor has assigned to the
Assignee
      and granted to the Assignee for the benefit of the Buyers (as defined in the
      Security Agreement)
      a continuing security interest in all right, title and interest of the Assignor
      in, to and under
      the
      [Trademarks, together with, among other things, the good-will of the business
      symbolized
      by the Trademarks] [Patents] [Copyrights] and the applications and registrations
      thereof,
      and all proceeds thereof, including, without limitation, any and all causes
      of
      action which
      may
      exist by reason of infringement thereof and any and all damages arising from
      past, present
      and future violations thereof (the "Collateral"),
      to
      secure
      the payment, performance and observance
      of the "Obligations" (as defined in the Security Agreement);

     

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the Assignor does hereby pledge, convey, sell,
      assign,
      transfer and set over unto the Assignee and grants to the Assignee for the
      benefit of the Buyers
      a
      continuing security interest in the Collateral to secure the prompt payment,
      performance
      and for the benefit of the Buyers observance of the Obligations.

     

    The
      Assignor does hereby further acknowledge and affirm that the rights and
remedies
      of the Assignee with respect to the Collateral are more fully set forth in
      the
      Security Agreement,
      the terms and provisions of which are hereby incorporated herein by reference
      as
      if fully
      set
      forth herein.

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Assignor has caused this Assignment to be duly executed
      by its officer thereunto duly authorized as of ,
      2007

     

    
      	 	 	 
	 	
              MOHEN,
                INC.

            
	 
 	 
 	 
 
	Date: 	By:  	/s/ Orville
              Hagler
	 	
              
Name:
              Orville Hagler
	 	
              Title:
                Corporate Secretary

            

    

     

     

    STATE
      OF_____________

                        ss.:

    COUNTY
      OF____________

     

     

            On
      this ____ day of
,
      20__,
      before me personally came ________________________,
      to me
      known to be the person who executed the foregoing instrument, and

    who,
      being duly sworn by me, did depose and say that s/he is
      the___________________________ of
      ____________________________,
      a
      _____________,
      and
      thats/he
      executed the foregoing instrument in the firm nameof
      ______________________________,
      and
      that s/he had authority to sign the same, and
      s/he
      acknowledged to me that he executed the same as the act and deed of said firm
      for the uses
      and
      purposes therein mentioned.

     

     

                                                            _____________________________________

     

     

    
 

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
      II TO ASSIGNMENT FOR SECURITY

     

    [Trademarks
      and Trademark Applications] 

    [Patent
      and Patent Applications]

    [Copyright
      and Copyright Applications] 

    Owned
      by___________________________

     

     

    34

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]