Document:

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                                                                     EXHIBIT 4.7

                               SECURITY AGREEMENT

         This Security Agreement (this "AGREEMENT") is entered into as of June
1, 2004 (the "EFFECTIVE DATE"), between Island Pacific, Inc. ("IPI"), IPI Merger
Sub II, Inc. ("MERGER SUB II"), Retail Technologies International, Inc. ("RTI"),
and Nathaniel F. Jessup, an individual, Kathleen M. Leacox, an individual, and
Glenn Swenson, an individual, the Lumsden Real Estate Defined Benefit Plan, Mace
and Shirley Lumsden as co-trustees of the Mace Lumsden and S.K. Lumsden Trust of
January 19, 1995, and Merry Youle, an individual (individually, a "SECURED
PARTY," and collectively, the "SECURED Parties").

         WHEREAS, the Secured Parties are holders of certain promissory notes
made and issued by RTI dated December 20, 2002 in the aggregate original
principal amount of $2,200,000 (the "NOTES");

          WHEREAS, RTI entered into an Amended and Restated Agreement of Merger
and Plan of Reorganization, by and among IPI, RTI, IPI Merger Sub, Inc. ("MERGER
SUB"), Merger Sub II and Michael Tomczak and Jeffrey Boone, dated June 1, 2004
(the "MERGER AGREEMENT"), pursuant to which Merger Sub shall merge with and into
RTI, for consideration of a combination of IPI Series B Convertible Preferred
Stock, IPI Common Stock and promissory notes (the "REVERSE MERGER");

         WHEREAS, immediately following the Reverse Merger, pursuant to the
Merger Agreement and an Agreement of Merger dated as of an even date, by and
among RTI, IPI and Merger Sub II (the "SECOND-STEP MERGER AGREEMENT"), under
which RTI shall merge with and into Merger Sub II, with Merger Sub II as the
surviving corporation (the "SURVIVING CORPORATION") and wholly-owned subsidiary
of IPI (the "SECOND-STEP MERGER") (the Reverse Merger and Second-Step Merger are
hereinafter collectively referred to as the "MERGER"); and

          WHEREAS, Surviving Corporation, as the surviving corporation in the
Merger, has agreed to assume the Notes as amended and restated on the date
hereof ("AMENDED NOTES"), which Amended Notes shall be issued in substitution
for and cancellation of RTI's obligations under the Notes, effective as of the
Effective Time of the Merger (as defined in the Merger Agreement); and

         WHEREAS, Surviving Corporation is willing to grant to the Secured Party
a security interest in the Collateral (as hereinafter defined) to secure
performance of the obligations of the Surviving Corporation under the Amended
Notes, in accordance with the terms and conditions set forth in this Agreement.

         The parties agree as follows:

1. DEFINITIONS. All capitalized terms not specially defined in this Agreement
have the meaning ascribed to them in the Merger Agreement, or if not defined in
this Agreement or the Merger Agreement, shall have the meanings set forth in the
California Uniform Commercial Code.

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2. GRANT OF SECURITY INTEREST.

     (a) As security for the payment and performance of Surviving Corporation's
obligations to the Secured Parties under the Amended Notes, this Agreement and
the Merger Agreement, IPI and the Surviving Corporation hereby grant the Secured
Parties a security interest in the Collateral (as defined below). In order to
perfect this security interest, promptly following the Closing UCC-1 financing
statements in favor of the Secured Parties listing the Collateral shall be filed
by the Secured Parties in the manner prescribed by the California Uniform
Commercial Code.

     (b) As used in this Agreement, "COLLATERAL" means all of IPI's and
Surviving Corporation's right, title and interest in and to (i) all accounts
receivable and other rights to payment from customers and other third parties of
IPI and the Surviving Corporation generated after the Closing as a result of the
operation of IPI and the Surviving Corporation and the full benefit of all
security for such accounts or rights to payment, including all such accounts
receivable representing amounts receivable in respect of services rendered to
customers of such; (ii) all other accounts or notes receivable of IPI and the
Surviving Corporation and the full benefit of all security for such accounts or
notes; and (iii) any claim, remedy or other right related to or arising from any
of the foregoing.

3. ASSUMPTION; GUARANTEE OF OBLIGATIONS. Surviving Corporation hereby agrees,
that upon the Effective Time, Surviving Corporation shall assume all
indebtedness, liabilities and other obligations of RTI under the Amended Notes.
IPI hereby agrees, that upon the Effective Time, IPI guarantees to the Secured
Parties the full and prompt payment when due (whether at stated maturity,
declaration, acceleration, demand or otherwise) and performance of all
indebtedness, liabilities and other obligations under the Amended Notes assumed
by Surviving Corporation.

4. DESIGNATION OF SECURED PARTIES' REPRESENTATIVE.

     (a) The Secured Parties hereby appoint Kathleen M. Leacox to act as their
representative and agent with full power and authority to take any and all
actions authorized by the Majority (as defined below) with respect to the
Collateral (the "Representative"). The Representative will also be the
designated recipient for all communications and notices from Surviving
Corporation. The Representative will represent that the content of any such
communication has been approved by, and represents the will of, the Majority.
All communications and notices from the Surviving Corporation and any written
notice required to be delivered to the Secured Parties pursuant to this
Agreement, the Amended Notes or applicable law, shall be delivered to all of the
Secured Parties as set forth in Section 11 below.

     (b) For the purposes of this Agreement "Majority" means the holders of a
majority of the outstanding aggregate principal balance under the Amended Notes.

5. SURVIVING CORPORATION'S COVENANTS. Surviving Corporation warrants and agrees
that as long as this Agreement remains in effect:

     (a) Surviving Corporation shall take all reasonably necessary steps to
defend the Collateral against claims and demands of others;

     (b) Surviving Corporation shall promptly notify the Secured Parties in
writing of any event which materially and adversely affects the value of the
Collateral;

     (c) Surviving Corporation shall maintain the security interest granted
hereunder as a valid and enforceable lien on and security interest in the
Collateral;

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     (d) IPI and the Surviving Corporation hereby appoint the Secured Parties'
Representative as its agent in fact to do all acts required of IPI and the
Surviving Corporation after Default (as defined below), it being acknowledged by
IPI and the Surviving Corporation that such appointment is coupled with an
interest and is irrevocable;

     (e) At the written request of a Majority of the Secured Parties, in the
event of a Default (as defined below), IPI and Surviving Corporation shall:

          (1) segregate all collections of money and other property under or in
respect of the Collateral and deliver promptly upon receipt such collections to
the Secured Parties in kind;

          (2) authorize and direct obligors under the Collateral to make all
payments directly to the Secured Parties; and

     (f) IPI and the Surviving Corporation shall pay prior to delinquency all
taxes, charges, liens and assessments against the Collateral, subject to right
of IPI and/or the Surviving Corporation to contest the foregoing in good faith.

6. REMEDIES ON DEFAULT.

     (a) In addition to any and all rights of the Secured Parties under the
Amended Notes or otherwise by law for a default or breach of Surviving
Corporation's obligations under the Amended Notes (any such event being herein
called a "DEFAULT"), the Secured Parties shall have the rights and remedies of a
Secured Party under the California Uniform Commercial Code.

     (b) The Secured Parties' notice of the time and place of public sale of the
Collateral, or the time on or after which a private sale or other disposition of
the Collateral will be made, is reasonable if sent to Surviving Corporation, in
the manner for giving notice at least ten (10) business days before the public
or private sale.

     (c) Any assignment, sale, foreclosure, or levy made under this Section 6
shall divest Surviving Corporation of all right, title, and claim it may have in
and to the Collateral.

7. NO WAIVER BY THE SECURED PARTIES. No failure by the Secured Parties to
exercise, and no delay in exercising, any right, remedy or power under this
Agreement shall operate as a waiver, nor shall any single or partial exercise by
the Secured Parties of any right, remedy or power hereunder preclude any other
or future exercise. Each right, remedy, or power granted to the Secured Parties
or allowed it by law or other agreement shall be cumulative and not exclusive of
any other, and may be exercised from time to time.

8. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California, without reference to
choice-of-law provisions.

9. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, and all of which taken together shall
constitute one instrument. Any of the parties hereto may execute this Agreement
by signing any such counterpart.

10. SUCCESSORS AND ASSIGNS. This Agreement shall bind and inure to the benefit
of the parties and their respective successors and assigns.

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11. NOTICES. All notices or other communications hereunder shall be in writing
(including by facsimile transmission) and mailed, sent or delivered to the
respective parties hereto at or to their respective addresses or facsimile
numbers set forth below their names on the signature pages hereof, or at or to
such other address or facsimile number as shall be designated by any party in a
written notice to the other parties hereto. All such notices and other
communications shall be deemed to be delivered when a record (within the meaning
of the California Uniform Commercial Code) has been (i) delivered by hand, (ii)
sent by mail, upon the earlier of the date of receipt or five business days
after deposit in the mail, first class, (iii) sent by facsimile transmission, or
(iv) sent by email.

12. SEVERABILITY. Each provision of this Agreement is valid and enforceable to
the fullest extent permitted by law. If any provision of this Agreement (or the
application of such provision to any person or circumstance) is or becomes
invalid or unenforceable, the remainder of this Agreement, and the application
of such provision to persons or circumstances other than those as to which it is
held invalid or unenforceable, are not affected by such invalidity or
unenforceability.

13. INTERPRETATION. This Agreement shall be interpreted in a reasonable manner
to effect the purposes of the parties and this Agreement. Each party has been
afforded the right to be represented by independent counsel and hereby waives
any rule of law or legal decision that would require interpretation of any
ambiguities in this Agreement against the party drafting it.

15. ATTORNEY'S FEES. The prevailing party in any litigation, arbitration,
mediation, bankruptcy, insolvency or other proceeding ("PROCEEDING") relating to
the enforcement or interpretation of this Note may recover from the unsuccessful
party all costs, expenses, and actual attorney's fees (including expert witness
and other consultants' fees and costs) relating to or arising out of (a) the
Proceeding (whether or not the Proceeding proceeds to judgment), and (b) any
post-judgment or post-award proceeding including, without limitation, one to
enforce or collect any judgment or award resulting from the Proceeding. All such
judgments and awards shall contain a specific provision for the recovery of all
such subsequently incurred costs, expenses, and actual attorney's fees.

14. ENTIRE AGREEMENT. This Agreement, together with the agreements and
instruments referred to herein, contain the entire agreement of the parties with
respect to the subject matter hereof, and may be amended only by an agreement in
writing.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the Effective Date.

                                        SURVIVING CORPORATION:

                                        IPI Merger Sub II, Inc.

                                        By:
                                            ------------------------------------

                                        Name:
                                            ------------------------------------

                                        Its:
                                            ------------------------------------

                                        IPI:

                                        Island Pacific, Inc.

                                        By:
                                            ------------------------------------

                                        Name:
                                            ------------------------------------

                                        Its:
                                            ------------------------------------

                                        RTI:

                                        Retail Technologies International, Inc.

                                        By:
                                            ------------------------------------

                                        Name:
                                            ------------------------------------

                                        Its:
                                            ------------------------------------

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SECURED PARTIES:
                                                 Address:

------------------------------------
NATHANIEL F. JESSUP, an individual

                                                 Address:

------------------------------------
KATHLEEN M. LEACOX, an individual

                                                 Address:

------------------------------------
GLENN SWENSON, an individual
                                                  Address:

------------------------------------
MERRY YOULE, an individual

LUMSDEN REAL ESTATE DEFINED BENEFIT PLAN

By:
    -----------------------------------

Its:
    -----------------------------------

        Address:
                  --------------------------
                  --------------------------
                  --------------------------

        Facsimile:
                   -------------------------

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MACE LUMSDEN AND S.K. LUMSDEN TRUST OF JANUARY 19, 1995

By:
    ---------------------------------
          Mace Lumsden, co-trustee

By:
    ---------------------------------
          Shirley Lumsden, co-trustee

        Address:
                  --------------------------
                  --------------------------
                  --------------------------

        Facsimile:
                  --------------------------

                                       7<PAGE>

                                                                    EXHIBIT 4.14

              AMENDMENT NO. 1 TO THE 9% CONVERTIBLE DEBENTURE, DUE
           MAY 15, 2006 ISSUED TO MIDSUMMER INVESTMENT LTD. AND WAIVER

         This Amendment No. 1 ("AMENDMENT") is made to that certain 9%
Convertible Debenture, due May 15, 2006 issued by Island Pacific, Inc. (the
"Company") to Midsummer Investment Ltd. ("MIDSUMMER") (the "DEBENTURE") pursuant
to the Securities Purchase Agreement ("PURCHASE AGREEMENT") dated as of March
15, 2004 among the Company, Midsummer and the other purchasers identified on the
signature pages thereto (the "PURCHASERS"). The parties hereto agree as follows:

1.       INTEREST PAYMENTS. The Preamble to the Debenture shall be amended and
         restated as follows:

         FOR VALUE RECEIVED, the Company promises to pay to Midsummer or its
registered assigns (the "HOLDER"), the principal sum of $1,250,000 on May 15,
2006 or such earlier date as the Debentures are required or permitted to be
repaid as provided hereunder (the "MATURITY DATE") and to pay interest to the
Holder on the aggregate unconverted and then outstanding principal amount of
this Debenture at the rate of 9% per annum, payable monthly, beginning on the
first day of the first month after the Original Issue Date and on each
Conversion Date (as to that principal amount then being converted), on each
Monthly Redemption Date (as to that principal amount then being redeemed) and on
the Maturity Date (except that, if any such date is not a Business Day, then
such payment shall be due on the next succeeding Business Day) (each such date,
an "INTEREST PAYMENT DATE"), in cash or shares of Common Stock at the Interest
Conversion Rate, or a combination thereof; PROVIDED, HOWEVER, payment in shares
of Common Stock may only occur if during the 20 Trading Days immediately prior
to the applicable Interest Payment Date all of the Equity Conditions have been
met and the Company shall have given the Holder notice in accordance with the
notice requirements set forth below. Subject to the terms and conditions herein,
the decision whether to pay interest hereunder in shares of Common Stock or cash
shall be at the discretion of the Company. Not less than 20 Trading Days prior
to each Interest Payment Date, the Company shall provide the Holder with written
notice of its election to pay interest hereunder either in cash or shares of
Common Stock (the Company may indicate in such notice that the election
contained in such notice shall continue for later periods until revised). Within
20 Trading Days prior to an Interest Payment Date, the Company's election
(whether specific to an Interest Payment Date or continuous) shall be
irrevocable as to such Interest Payment Date. Subject to the aforementioned
conditions, failure to timely provide such written notice shall be deemed an
election by the Company to pay the interest on such Interest Payment Date in
cash. Interest shall be calculated on the basis of a 360-day year and shall
accrue daily commencing on the Original Issue Date until payment in full of the
principal sum, together with all accrued and unpaid interest and other amounts
which may become due hereunder, has been made. Payment of interest in shares of
Common Stock shall otherwise occur pursuant to Section 4(b) and for purposes of
the payment of interest in shares only, the Interest Payment Date shall be

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deemed the Conversion Date. Interest shall cease to accrue with respect to any
principal amount converted, provided that the Company in fact delivers the
Conversion Shares within the time period required by Section 4(b)(i). Interest
hereunder will be paid to the Person in whose name this Debenture is registered
on the records of the Company regarding registration and transfers of Debentures
(the "DEBENTURE REGISTER"). All overdue accrued and unpaid interest to be paid
hereunder shall entail a late fee at the rate of 12% per annum (or such lower
maximum amount of interest permitted to be charged under applicable law) ("LATE
FEE") which will accrue daily, from the date such interest is due hereunder
through and including the date of payment, except as is set forth in section 5a
of this Debenture, the Company may not prepay any portion of the principal
amount of this Debenture without the prior written consent of the holders."

2.       EVENT OF DEFAULT. Section 3(a)(vii) of the Debenture shall be amended
         and restated as follows:

         (vii) an Underlying Shares Registration Statement shall not have been
         declared effective by the Commission on or prior to November 15, 2004;

3.       SET PRICE OF THE DEBENTURE. Section 4(c)(i) of the Debenture shall be
         amended and restated as follows:

         (c) (i) CONVERSION PRICE. The conversion price in effect on any
         Conversion Date shall be equal to $0.56 (subject to adjustment
         herein)(the "SET PRICE").

4.       MONTHLY REDEMPTION PROCEDURE. Section 5(b) of the Debenture shall be
         amended and restated as follows:

         (b) MONTHLY REDEMPTION. The Company shall redeem (a) $50,000 per month
         on each Monthly Redemption Date, commencing on September 1, 2004 and
         continuing through and until February 1, 2005 and (b) $62,500 per
         month, on each Monthly Redemption Date, beginning on February 1, 2005
         and continuing until the full redemption of this Debenture, plus
         accrued but unpaid interest, the sum of all liquidated damages and any
         other amounts then owing to such Holder in respect of the Debenture.
         The Monthly Redemption Amount due on each Monthly Redemption Date shall
         be payable in cash or Conversion Shares, at the discretion of the
         Company subject to the terms and conditions set forth below. As to any
         Monthly Redemption and upon 20 Trading Days' prior written irrevocable
         notice (the Company may indicate in such notice that the election
         contained in such notice shall continue for later periods until
         revised), in lieu of a cash redemption payment the Company may elect to
         pay 100% of a Monthly Redemption in Conversion Shares based on a
         conversion price equal to 90% of the average of the 20 VWAPs
         immediately prior to the applicable Monthly Redemption Date (subject to
         adjustment for any stock dividend, stock split, stock combination or
         other similar event affecting the Common Stock during such 20 Trading
         Day period) (the "MONTHLY CONVERSION PRICE"); PROVIDED, HOWEVER, that
         the Company may not pay the Monthly Redemption Amount in Conversion
         Shares unless, on the Monthly Redemption Date and during the 20 Trading
         Day period immediately prior thereto, the Equity Conditions have been
         satisfied. The Holders may convert, pursuant to Section 4(a)(i), any

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         principal amount of the Debenture subject to a Monthly Redemption at
         any time prior to the date that the Monthly Redemption Amount and all
         amounts owing thereon are due and paid in full. Any principal amount of
         Debenture converted during any 20 day period until the date the Monthly
         Redemption Amount is paid shall be first applied to the principal
         amount subject to the Monthly Redemption and Holder's payment of the
         Monthly Redemption Amount on such Monthly Redemption Date shall be
         reduced accordingly. The Company covenants and agrees that it will
         honor all Notice of Conversions tendered up until such amounts are paid
         in full.

5.       MONTHLY REDEMPTION DEFINITIONS. Section 6 of the Debenture shall be
         amended to include the following:

                  "MONTHLY REDEMPTION AMOUNT" shall mean (a) $50,000 per month
                  commencing on September 1, 2004 and until February 1, 2005 and
                  (b) $62,500 per month from February 1, 2005 until the full
                  redemption of this Debenture.

                  "MONTHLY REDEMPTION DATE" means the 1st day of each month,
                  commencing on September 1, 2004 and ending upon the full
                  redemption of this Debenture.

6.       OPTIONAL REDEMPTION AMOUNT DEFINITION. The definition of "Optional
         Redemption Amount" set forth in Section 6 of the Debenture is amended
         and restated as follows:

                  "Optional Redemption Amount" shall mean the sum of (a) 100% of
                  the principal amount of the Debenture then outstanding, (b)
                  accrued but unpaid interest and (c) all liquidated damages and
                  other amounts due in respect of the Debentures.

7.       LIQUIDATED DAMAGES/PREPAYMENT PENALTY/WAIVER. The parties hereby agree
         that Midsummer shall accept 600,000 shares of Common Stock as: (a)
         payment in lieu of cash for all accrued and unpaid liquidated damages
         as of the date of this Amendment and including all accrued and unpaid
         liquidated damages owed to Midsummer through and including August 2004
         pursuant to the Purchase Agreement and the Registration Rights
         Agreement, dated as of March 15, 2004 among the Company, Midsummer and
         the Purchasers and attached to the Purchase Agreement as Exhibit B, (b)
         consideration for the amendment of the Debenture to eliminate
         Midsummer's right to a 10% penalty if the Company prepays the
         Debenture; (c) consideration for Midsummer's consent to the Company's
         sale and issuance of the Secured Convertible Term Note and Common Stock
         Purchase Warrant to Laurus Master Fund, Ltd. ("Laurus") pursuant to
         that certain Securities Purchase Agreement between the Company and
         Laurus dated July 12, 2004 (the "Laurus Transaction"); and (d)
         consideration for Midsummer's waiver of all rights and remedies
         accruing as a result of the Laurus Transaction, including without

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         limitation, the right to participate in the Laurus Transaction set
         forth in Section 4.14 of the Purchase Agreement, the covenant against
         future financings set forth in Section 4.7 of the Purchase Agreement
         and the obligation to seek Shareholder Approval prior to effecting any
         issuance that results in an adjustment to the Set Price set forth in
         Section 4.7 of the Purchase Agreement and Section 4(a)(ii)(B) of the
         Debenture.

8.       REGISTRATION OF COMMON STOCK ISSUABLE PURSUANT TO THIS AMENDMENT. All
         shares of Common Stock issuable pursuant to this Amendment shall be
         included in the next registration statement to be filed by the Company
         in August 2004.

9.       EFFECT ON DEBENTURE. Except as expressly set forth above, all of the
         terms and conditions of the Debenture shall continue in full force and
         effect after the execution of this Amendments.

10.      DEFINITIONS. CAPITALIZED TERMS NOT OTHERWISE DEFINED HEREIN HAVE THE
         MEANINGS GIVEN TO SUCH TERMS IN THE PURCHASE AGREEMENT AND THE
         DEBENTURE.

Executed as of July 30, 2004 by the undersigned duly authorized representatives
of the Company and Midsummer:

Island Pacific, Inc.                                 Midsummer Investment Ltd.

By: _________________________                        By: ____________________

Name:                                                Name:

Title:                                               Title:

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