Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Banyan Corporation - Exhibit 10.5

 SECURITY AGREEMENT 

                     SECURITY
  AGREEMENT (this "Agreement"), dated as of November 8, 2004, by and among
  Banyan Corporation, an Oregon corporation ("Company"), and the secured
  parties signatory hereto and their respective endorsees, transferees and assigns
  (collectively, the "Secured Party").

 W I T N E S S E T H: 

                     WHEREAS,
  pursuant to a Securities Purchase Agreement, dated the date hereof, between
  Company and the Secured Party (the "Purchase Agreement"), Company has
  agreed to issue to the Secured Party and the Secured Party has agreed to purchase
  from Company certain of Company's 10% Secured Convertible Notes, due two years
  from the date of issue (the "Notes"), which are convertible into shares
  of Company's Common Stock, no par value per share (the "Common Stock").
  In connection therewith, Company shall issue the Secured Party certain Common
  Stock purchase warrants (the "Warrants"); and 

                     WHEREAS,
  in order to induce the Secured Party to purchase the Notes, Company has agreed
  to execute and deliver to the Secured Party this Agreement for the benefit of
  the Secured Party and to grant to it a first priority security interest in certain
  property of Company to secure the prompt payment, performance and discharge
  in full of all of Company's obligations under the Notes and exercise and discharge
  in full of Company's obligations under the Warrants. 

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

                     1.               
  Certain Definitions. As used in this Agreement, the following terms shall
  have the meanings set forth in this Section 1. Terms used but not otherwise
  defined in this Agreement that are defined in Article 9 of the UCC (such as
  "general intangibles" and "proceeds") shall have the respective
  meanings given such terms in Article 9 of the UCC. 

                                         (a)             
  "Collateral" means the collateral in which the Secured Party is granted
  a security interest by this Agreement and which shall include the following,
  whether presently owned or existing or hereafter acquired or coming into existence,
  and all additions and accessions thereto and all substitutions and replacements
  thereof, and all proceeds, products and accounts thereof, including, without
  limitation, all proceeds from the sale or transfer of the Collateral and of
  insurance covering the same and of any tort claims in connection therewith:

                                                            (i)             
  All Goods of the Company, including, without limitations, all machinery, equipment,
  computers, motor vehicles, trucks, tanks, boats, ships, appliances, furniture,
  special and general tools, fixtures, test and quality control devices and other
  equipment of every kind and nature and wherever situated, together with all
  documents of title and documents representing the same, all additions and accessions
  thereto, replacements therefor, all parts therefor, and all substitutes for
  any of the foregoing and all other items used and useful in 

connection with the Company's businesses and all improvements
  thereto (collectively, the "Equipment"); and

                                                            (ii)
               All
  Inventory of the Company; and 

                                                            (iii)            
  All of the Company's contract rights and general intangibles, including, without
  limitation, all partnership interests, stock or other securities, licenses,
  distribution and other agreements, computer software development rights, leases,
  franchises, customer lists, quality control procedures, grants and rights, goodwill,
  trademarks, service marks, trade styles, trade names, patents, patent applications,
  copyrights, deposit accounts, and income tax refunds (collectively, the "General
  Intangibles"); and 

                                                            (iv)             
  All Receivables of the Company including all insurance proceeds, and rights
  to refunds or indemnification whatsoever owing, together with all instruments,
  all documents of title representing any of the foregoing, all rights in any
  merchandising, goods, equipment, motor vehicles and trucks which any of the
  same may represent, and all right, title, security and guaranties with respect
  to each Receivable, including any right of stoppage in transit; and 

                                                            (v)
               
  All of the Company's documents, instruments and chattel paper, files, records,
  books of account, business papers, computer programs and the products and proceeds
  of all of the foregoing Collateral set forth in clauses (i)-(iv) above. 

                                         (b)
               
  "Company" shall mean, collectively, Company and all of the subsidiaries
  of Company, a list of which is contained in Schedule A, attached hereto.

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

                                         (d)
               
  "UCC" means the Uniform Commercial Code, as currently in effect in the
  State of New York. 

                     2.             
  Grant of Security Interest. As an inducement for the Secured Party to
  purchase the Notes and to secure the complete and timely payment, performance
  and discharge in full, as the case may be, of all of the Obligations, the Company
  hereby, unconditionally and irrevocably, pledges, grants and hypothecates to
  the Secured Party, a continuing security interest in, a continuing first lien
  upon, an unqualified right to possession and disposition of and a right of set-off
  against, in each case to the fullest extent permitted by law, all of the Company's
  right, title and interest of whatsoever kind and nature in and to the Collateral
  (the "Security Interest"). 

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

                                         (a)             
  The Company has the requisite corporate power and authority to enter into this
  Agreement and otherwise to carry out its obligations thereunder. The execution,
  delivery and performance by the Company of this Agreement and the filings contemplated
  therein have been duly authorized by all necessary action on the part of the
  Company and no further action is required by the Company. This Agreement constitutes
  a legal, valid and binding obligation of the Company enforceable in accordance
  with its terms, except as enforceability may be limited by bankruptcy, insolvency,
  reorganization, moratorium or similar laws affecting the enforcement of creditor's
  rights generally. 

                                         (b)             
  The Company represents and warrants that it has no place of business or offices
  where its respective books of account and records are kept (other than temporarily
  at the offices of its attorneys or accountants) or places where Collateral is
  stored or located, except as set forth on Schedule A attached hereto;

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

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

                                         (e)
               
  The Company shall at all times maintain its books of account and records relating
  to the Collateral at its principal place of business and its Collateral at the
  locations set forth on Schedule A attached hereto and may not relocate
  such books of account and records or tangible Collateral unless it delivers
  to the Secured Party at least 30 days prior to such relocation (i) written notice
  of such relocation and the new location thereof (which must be within the United
  States) and (ii) evidence that appropriate financing statements and other necessary
  documents have been filed and recorded and other steps have been taken to perfect
  the Security 

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Interest to create in favor of the Secured Party valid, perfected and continuing first priority liens in the Collateral.

                                         (f)
               
  This Agreement creates in favor of the Secured Party a valid security interest
  in the Collateral securing the payment and performance of the Obligations and,
  upon making the filings described in the immediately following sentence, a perfected
  first priority security interest in such Collateral. Except for the filing of
  financing statements on Form-1 under the UCC with the jurisdictions indicated
  on Schedule B, attached hereto, no authorization or approval of or filing
  with or notice to any governmental authority or regulatory body is required
  either (i) for the grant by the Company of, or the effectiveness of, the Security
  Interest granted hereby or for the execution, delivery and performance of this
  Agreement by the Company or (ii) for the perfection of or exercise by the Secured
  Party of its rights and remedies hereunder.

                                         (g)
               
  On the date of execution of this Agreement, the Company will deliver to the
  Secured Party one or more executed UCC financing statements on Form-1 with respect
  to the Security Interest for filing with the jurisdictions indicated on Schedule
  B, attached hereto and in such other jurisdictions as may be requested by
  the Secured Party. 

                                         (h)             
  The execution, delivery and performance of this Agreement does not conflict
  with or cause a breach or default, or an event that with or without the passage
  of time or notice, shall constitute a breach or default, under any agreement
  to which the Company is a party or by which the Company is bound. No consent
  (including, without limitation, from stock holders or creditors of the Company)
  is required for the Company to enter into and perform its obligations hereunder.

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

                                          (j)             
  The Company will not transfer, pledge, hypothecate, encumber, license (except
  for non-exclusive licenses granted by the Company in the ordinary course of
  business), sell or otherwise dispose of any of the Collateral without the prior
  written consent of the Secured Party. 

4 

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

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

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

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

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

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

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

                                         (r)             
  Schedule A attached hereto contains a list of all of the subsidiaries
  of Company. 

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

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

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

                                         (c)
               
  The failure by the Company to observe or perform any of its obligations hereunder
  or in the Intellectual Property Security Agreement for ten (10) days after receipt
  by the Company of notice of such failure from the Secured Party; and 

                                         (d)
               
  Any breach of, or default under, the Warrants. 

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

                     6.             
  Rights and Remedies Upon Default. Upon occurrence of any Event of Default
  and at any time thereafter, the Secured Party shall have the right to exercise
  all of the remedies conferred hereunder and under the Notes, and the Secured
  Party shall have all the rights and remedies of a secured party under the UCC
  and/or any other applicable law (including the Uniform Commercial Code of any
  jurisdiction in which any Collateral is then located). Without limitation, the
  Secured Party shall have the following rights and powers: 

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

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

6 

                     7.             
  Applications of Proceeds. The proceeds of any such sale, lease or other
  disposition of the Collateral hereunder shall be applied first, to the expenses
  of retaking, holding, storing, processing and preparing for sale, selling, and
  the like (including, without limitation, any taxes, fees and other costs incurred
  in connection therewith) of the Collateral, to the reasonable attorneys' fees
  and expenses incurred by the Secured Party in enforcing its rights hereunder
  and in connection with collecting, storing and disposing of the Collateral,
  and then to satisfaction of the Obligations, and to the payment of any other
  amounts required by applicable law, after which the Secured Party shall pay
  to the Company any surplus proceeds. If, upon the sale, license or other disposition
  of the Collateral, the proceeds thereof are insufficient to pay all amounts
  to which the Secured Party is legally entitled, the Company will be liable for
  the deficiency, together with interest thereon, at the rate of 15% per annum
  (the "Default Rate"), and the reasonable fees of any attorneys employed
  by the Secured Party to collect such deficiency. To the extent permitted by
  applicable law, the Company waives all claims, damages and demands against the
  Secured Party arising out of the repossession, removal, retention or sale of
  the Collateral, unless due to the gross negligence or willful misconduct of
  the Secured Party. 

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

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

                     10.            
  Security Interest Absolute. All rights of the Secured Party and all Obligations
  of the Company hereunder, shall be absolute and unconditional, irrespective
  of: (a) any lack of validity or enforceability of this Agreement, the Notes,
  the Warrants or any agreement entered into in connection with the foregoing,
  or any portion hereof or thereof; (b) any change in the time, manner or place
  of payment or performance of, or in any other term of, all or any of the Obligations,
  or any other amendment or waiver of or any consent to any departure from the
  Notes, the Warrants or any other agreement entered into in connection with the
  foregoing; (c) any exchange, release or nonperfection of any of the Collateral,
  or any release or amendment or waiver of or consent to departure from any other
  collateral for, or any guaranty, or any other security, for all or any of the
  Obligations; (d) any action by the Secured Party to obtain, adjust, settle and
  cancel in its sole discretion any insurance claims or matters made or arising
  in connection with the Collateral; or (e) any other circumstance which might
  otherwise constitute 

7 

any legal or equitable defense available to the Company, or a discharge of all or any part of the Security Interest granted hereby. Until the Obligations shall have been paid and performed in full, the rights of the Secured Party shall continue even
if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy. The Company expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for
performance. In the event that at any time any transfer of any Collateral or any payment received by the Secured Party hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent
conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Party, then, in any such event, the Company's obligations hereunder shall survive cancellation of
this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. The Company
waives all right to require the Secured Party to proceed against any other person or to apply any Collateral which the Secured Party may hold at any time, or to marshal assets, or to pursue any other remedy. The Company waives any defense arising by
reason of the application of the statute of limitations to any obligation secured hereby. 

                     11.            
  Term of Agreement. This Agreement and the Security Interest shall terminate
  on the date on which all payments under the Notes have been made in full and
  all other Obligations have been paid or discharged. Upon such termination, the
  Secured Party, at the request and at the expense of the Company, will join in
  executing any termination statement with respect to any financing statement
  executed and filed pursuant to this Agreement.

                     12.             
  Power of Attorney; Further Assurances. 

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

8 

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

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

                     13.             
  Notices. All notices, requests, demands and other communications hereunder
  shall be in writing, with copies to all the other parties hereto, and shall
  be deemed to have been duly given when (i) if delivered by hand, upon receipt,
  (ii) if sent by facsimile, upon receipt of proof of sending thereof, (iii) if
  sent by nationally recognized overnight delivery service (receipt requested),
  the next business day or (iv) if mailed by first-class registered or certified
  mail, return receipt requested, postage prepaid, four days after posting in
  the U.S. mails, in each case if delivered to the following addresses: 

	 If to the Company:  	 Banyan Corporation  
	  	 1925 Century Park East, Suite 500  
	  	 Los Angeles, California 90067  
	  	 Attention: Chief Executive Officer  
	  	 Telephone: 800-808-0899  
	  	 Facsimile: 403-287-8804  
	  	 
	 With a copy to:  	 Noel E. Guardi, Esq.  
	  	 3224 South Newcombe Street  
	  	 Suite 2105  
	  	 Lakewood, Colorado 80227  
	  	 Telephone: 303-969-8886  
	  	 Facsimile: 303-969-8887  

9 

 

	 If to the Secured Party:  	 AJW Partners, LLC  
	  	 AJW Offshore, Ltd.  
	  	 AJW Qualified Partners, LLC  
	  	 New Millennium Capital Partners II, LLC  
	  	 1044 Northern Boulevard  
	  	 Suite 302  
	  	 Roslyn, New York 11576  
	  	 Attention: Corey Ribotsky  
	  	 Facsimile: 516-739-7115  
	  	 
	 With a copy to:  	 Ballard Spahr Andrews & Ingersoll, LLP  
	  	 1735 Market Street, 51 st Floor  
	  	 Philadelphia, Pennsylvania 19103  
	  	 Attention: Gerald J. Guarcini, Esq.  
	  	 Facsimile: 215-864-8999  

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

                     15.             
  Miscellaneous. 

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

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

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

                                         (d)             
  In the event that any provision of this Agreement is held to be invalid, prohibited
  or unenforceable in any jurisdiction for any reason, unless such provision is
  narrowed by judicial construction, this Agreement shall, as to such jurisdiction,
  be construed as if such invalid, prohibited or unenforceable provision had been
  more narrowly drawn so as not to be invalid, prohibited or unenforceable. If,
  notwithstanding the foregoing, any provision of this Agreement is held to be
  invalid, prohibited or unenforceable in any jurisdiction, such provision, 

10 

as to such jurisdiction, shall be ineffective to the extent of such invalidity, prohibition or unenforceability without invalidating the remaining portion of such provision or the other provisions of this Agreement and without affecting the validity
or enforceability of such provision or the other provisions of this Agreement in any other jurisdiction. 

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

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

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

                                         (h)
               
  This Agreement shall be construed in accordance with the laws of the State of
  New York, except to the extent the validity, perfection or enforcement of a
  security interest hereunder in respect of any particular Collateral which are
  governed by a jurisdiction other than the State of New York in which case such
  law shall govern. Each of the parties hereto irrevocably submit to the exclusive
  jurisdiction of any New York State or United States Federal court sitting in
  Manhattan county over any action or proceeding arising out of or relating to
  this Agreement, and the parties hereto hereby irrevocably agree that all claims
  in respect of such action or proceeding may be heard and determined in such
  New York State or Federal court. The parties hereto agree that a final judgment
  in any such action or proceeding shall be conclusive and may be enforced in
  other jurisdictions by suit on the judgment or in any other manner provided
  by law. The parties hereto further waive any objection to venue in the State
  of New York and any objection to an action or proceeding in the State of New
  York on the basis of forum non conveniens. 

                                         (i)             
  EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL
  OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.
  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY DISPUTES
  THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER OF THIS
  AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH
  OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
  ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER
  INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS WAIVER
  IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY ON
  THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
  REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
  SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL FOLLOWING
  SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING 

11 

THAT, NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF A
LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

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

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

12 

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

	 	 BANYAN CORPORATION  
	 	 	  
	 	 	  
	 	 	  
	 	By:  	 
	 	 	 Michael J. Gelmon  
	 	 	 Chief Executive Officer  
	 	 	  
	 	 	 
	 	 AJW PARTNERS, LLC  
	 	 By: SMS Group, LLC  
	 	 	  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Corey S. Ribotsky  
	 	 	 Manager  
	 	 	  
	 	 	 
	 	 AJW OFFSHORE, LTD.  
	 	 By: First Street Manager II, LLC  
	 	 	  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Corey S. Ribotsky  
	 	 	 Manager  
	 	 	  
	 	 	 
	 	 AJW QUALIFIED PARTNERS, LLC  
	 	 By: AJW Manager, LLC  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Corey S. Ribotsky  
	 	 	 Manager  
	 	 	  
	 	 	 
	 	 NEW MILLENNIUM CAPITAL PARTNERS II, LLC. 
    
	 	 By: First Street Manager II, LLC  
	 	 	  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Corey S. Ribotsky  
	 	 	 Manager  

  
 B-1Filed by Automated Filing Services Inc. (604) 609-0244 - Banyan Corporation - Exhibit 10.6

 INTELLECTUAL PROPERTY SECURITY AGREEMENT 

                     INTELLECTUAL
  PROPERTY SECURITY AGREEMENT (this "Agreement" dated as of November 8,
  2004, by and among Banyan Corporation, an Oregon corporation (the "Company"),
  and the secured parties signatory hereto and their respective endorsees, transferees
  and assigns (collectively, the "Secured Party"). 

 W I T N E S S E T H : 

                     WHEREAS,
  pursuant to a Securities Purchase Agreement, dated the date hereof, between
  Company and the Secured Party (the "Purchase Agreement"), Company has
  agreed to issue to the Secured Party and the Secured Party has agreed to purchase
  from Company certain of Company's 10% Secured Convertible Notes, due two years
  from the date of issue (the "Notes"), which are convertible into shares
  of Company's Common Stock, no par value per share (the "Common Stock").
  In connection therewith, Company shall issue the Secured Party certain Common
  Stock purchase warrants (the "Warrants"); and 

                     WHEREAS,
  in order to induce the Secured Party to purchase the Notes, Company has agreed
  to execute and deliver to the Secured Party this Agreement for the benefit of
  the Secured Party and to grant to it a first priority security interest in certain
  Intellectual Property (defined below) of Company to secure the prompt payment,
  performance and discharge in full of all of Company's obligations under the
  Notes and exercise and discharge in full of Company's obligations under the
  Warrants; and 

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

                                         1.                 
  Defined Terms. Unless otherwise defined herein, terms which are defined
  in the Purchase Agreement and used herein are so used as so defined; and the
  following terms shall have the following meanings: 

                                                             "Software
  Intellectual Property" shall mean: 

                                                             (a)                 
  all software programs (including all source code, object code and all related
  applications and data files), whether now owned, upgraded, enhanced, licensed
  or leased or hereafter acquired by the Company, above; 

                                                             (b)                 
  all computers and electronic data processing hardware and firmware associated
  therewith; 

                                                             (c)                 
  all documentation (including flow charts, logic diagrams, manuals, guides and
  specifications) with respect to such software, hardware and firmware described
  in the preceding clauses (a) and (b); and 

                                                             (d)                 
  all rights with respect to all of the foregoing, including, without limitation,
  any and all upgrades, modifications, copyrights, licenses, options, warranties,
  service contracts, program services, test rights, maintenance rights, support
  rights, improvement rights, 

renewal rights and indemnifications and substitutions, replacements, additions, or model conversions of any of the foregoing. 

                                                             "Copyrights"
  shall mean (a) all copyrights, registrations and applications for registration,
  issued or filed, including any reissues, extensions or renewals thereof,
  by or with the United States Copyright Office or any similar office or agency
  of the United States, any state thereof, or any other country or political subdivision
  thereof, or otherwise, including, all rights in and to the material constituting
  the subject matter thereof, including, without limitation, any referred to in
  Schedule B hereto, and (b) any rights in any material which is copyrightable
  or which is protected by common law, United States copyright laws or similar
  laws or any law of any State, including, without limitation, any thereof referred
  to in Schedule B hereto. 

                                                             "Copyright
  License" shall mean any agreement, written or oral, providing for a grant
  by the Company of any right in any Copyright, including, without limitation,
  any thereof referred to in Schedule B hereto. 

                                                             "Intellectual
  Property" shall means, collectively, the Software Intellectual Property,
  Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks, Trademark
  Licenses and Trade Secrets. 

                                                             "Obligations"
  means all of the Company's obligations under this Agreement and the Notes, in
  each case, whether now or hereafter existing, voluntary or involuntary, direct
  or indirect, absolute or contingent, liquidated or unliquidated, whether or
  not jointly owed with others, and whether or not from time to time decreased
  or extinguished and later decreased, created or incurred, and all or any portion
  of such obligations or liabilities that are paid, to the extent all or any part
  of such payment is avoided or recovered directly or indirectly from the Secured
  Party as a preference, fraudulent transfer or otherwise as such obligations
  may be amended, supplemented, converted, extended or modified from time to time.

                                                             "Patents"
  shall mean (a) all letters patent of the United States or any other country
  or any political subdivision thereof, and all reissues and extensions thereof,
  including, without limitation, any thereof referred to in Schedule B
  hereto, and (b) all applications for letters patent of the United States and
  all divisions, continuations and continuations-in-part thereof or any other
  country or any political subdivision, including, without limitation, any thereof
  referred to in Schedule B hereto. 

                                                             "Patent
  License" shall mean all agreements, whether written or oral, providing for
  the grant by the Company of any right to manufacture, use or sell any invention
  covered by a Patent, including, without limitation, any thereof referred to
  in Schedule B hereto. 

                                                             "Security
  Agreement" shall mean the a Security Agreement, dated the date hereof between
  Company and the Secured Party. 

                                                             "Trademarks"
  shall mean (a) all trademarks, trade names, corporate names, company names,
  business names, fictitious business names, trade styles, service marks, logos
  and other source or business identifiers, and the goodwill associated therewith,
  now 

2 

existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any
state thereof or any other country or any political subdivision thereof, or otherwise, including, without limitation, any thereof referred to in Schedule B hereto, and (b) all reissues, extensions or renewals thereof. 

                                                             "Trademark
  License" shall mean any agreement, written or oral, providing for the grant
  by the Company of any right to use any Trademark, including, without limitation,
  any thereof referred to in Schedule B hereto. 

                                                             "Trade
  Secrets" shall mean common law and statutory trade secrets and all other
  confidential or proprietary or useful information and all know-how obtained
  by or used in or contemplated at any time for use in the business of the Company
  (all of the foregoing being collectively called a "Trade Secret"), whether
  or not such Trade Secret has been reduced to a writing or other tangible form,
  including all documents and things embodying, incorporating or referring in
  any way to such Trade Secret, all Trade Secret licenses, including each Trade
  Secret license referred to in Schedule B hereto, and including the right
  to sue for and to enjoin and to collect damages for the actual or threatened
  misappropriation of any Trade Secret and for the breach or enforcement of any
  such Trade Secret license. 

                                         2.                 
  Grant of Security Interest. In accordance with Section 3(m) of the Security
  Agreement, to secure the complete and timely payment, performance and discharge
  in full, as the case may be, of all of the Obligations, the Company hereby,
  unconditionally and irrevocably, pledges, grants and hypothecates to the Secured
  Party, a continuing security interest in, a continuing first lien upon, an unqualified
  right to possession and disposition of and a right of set-off against, in each
  case to the fullest extent permitted by law, all of the Company's right, title
  and interest of whatsoever kind and nature in and to the Intellectual Property
  (the "Security Interest"). 

                                         3.                 
  Representations and Warranties. The Company hereby represents and warrants,
  and covenants and agrees with, the Secured Party as follows: 

                                                             (a)                 
  The Company has the requisite corporate power and authority to enter into this
  Agreement and otherwise to carry out its obligations thereunder. The execution,
  delivery and performance by the Company of this Agreement and the filings contemplated
  therein have been duly authorized by all necessary action on the part of the
  Company and no further action is required by the Company. This Agreement constitutes
  a legal, valid and binding obligation of the Company enforceable in accordance
  with its terms, except as enforceability may be limited by bankruptcy, insolvency,
  reorganization, moratorium or similar laws affecting the enforcement of creditor's
  rights generally. 

                                                             (b)
                   The
  Company represents and warrants that it has no place of business or offices
  where its respective books of account and records are kept (other than temporarily
  at the offices of its attorneys or accountants) or places where the Intellectual
  Property is stored or located, except as set forth on Schedule A attached
  hereto; 

3 

                                                             (c)
                   The
  Company is the sole owner of the Intellectual Property (except for non-exclusive
  licenses granted by the Company in the ordinary course of business), free and
  clear of any liens, security interests, encumbrances, rights or claims, and
  is fully authorized to grant the Security Interest in and to pledge the Intellectual
  Property. There is not on file in any governmental or regulatory authority,
  agency or recording office an effective financing statement, security agreement,
  license or transfer or any notice of any of the foregoing (other than those
  that have been filed in favor of the Secured Party pursuant to this Agreement)
  covering or affecting any of the Intellectual Property. So long as this Agreement
  shall be in effect, the Company shall not execute and shall not knowingly permit
  to be on file in any such office or agency any such financing statement or other
  document or instrument (except to the extent filed or recorded in favor of the
  Secured Party pursuant to the terms of this Agreement), except for a financing
  statement covering assets acquired by the Company after the date hereof, provided
  that the value of the Intellectual Property covered by this Agreement along
  with the Collateral (as defined in the Security Agreement) is equal to at least
  150% of the Obligations. 

                                                             (d)
                   The
  Company shall at all times maintain its books of account and records relating
  to the Intellectual Property at its principal place of business and its Intellectual
  Property at the locations set forth on Schedule A attached hereto and
  may not relocate such books of account and records unless it delivers to the
  Secured Party at least 30 days prior to such relocation (i) written notice of
  such relocation and the new location thereof (which must be within the United
  States) and (ii) evidence that the necessary documents have been filed and recorded
  and other steps have been taken to perfect the Security Interest to create in
  favor of the Secured Party valid, perfected and continuing first priority liens
  in the Intellectual Property to the extent they can be perfected through such
  filings. 

                                                             (e)
                   This
  Agreement creates in favor of the Secured Party a valid security interest in
  the Intellectual Property securing the payment and performance of the Obligations
  and, upon making the filings required hereunder, a perfected first priority
  security interest in such Intellectual Property to the extent that it can be
  perfected through such filings. 

                                                             (f)                 
  Upon request of the Secured Party, the Company shall execute and deliver any
  and all agreements, instruments, documents, and papers as the Secured Party
  may request to evidence the Secured Party's security interest in the Intellectual
  Property and the goodwill and general intangibles of the Company relating thereto
  or represented thereby, and the Company hereby appoints the Secured Party its
  attorney-in-fact to execute and file all such writings for the foregoing purposes,
  all acts of such attorney being hereby ratified and confirmed; such power being
  coupled with an interest is irrevocable until the Obligations have been fully
  satisfied and are paid in full. 

                                                             (g)                 
  The execution, delivery and performance of this Agreement does not conflict
  with or cause a breach or default, or an event that with or without the passage
  of time or notice, shall constitute a breach or default, under any agreement
  to which the Company is a party or by which the Company is bound. No consent
  (including, without limitation, from stock holders or creditors of the Company)
  is required for the Company to enter into and perform its obligations hereunder.

4 

                                                             (h)                 
  The Company shall at all times maintain the liens and Security Interest provided
  for hereunder as valid and perfected first priority liens and security interests
  in the Intellectual Property to the extent they can be perfected by filing in
  favor of the Secured Party until this Agreement and the Security Interest hereunder
  shall terminate pursuant to Section 11. The Company hereby agrees to defend
  the same against any and all persons. The Company shall safeguard and protect
  all Intellectual Property for the account of the Secured Party. Without limiting
  the generality of the foregoing, the Company shall pay all fees, taxes and other
  amounts necessary to maintain the Intellectual Property and the Security Interest
  hereunder, and the Company shall obtain and furnish to the Secured Party from
  time to time, upon demand, such releases and/or subordinations of claims and
  liens which may be required to maintain the priority of the Security Interest
  hereunder.

                                                             (i)
                   The
  Company will not transfer, pledge, hypothecate, encumber, license (except for
  non-exclusive licenses granted by the Company in the ordinary course of business),
  sell or otherwise dispose of any of the Intellectual Property without the prior
  written consent of the Secured Party. 

                                                             (j)                 
  The Company shall, within ten (10) days of obtaining knowledge thereof, advise
  the Secured Party promptly, in sufficient detail, of any substantial change
  in the Intellectual Property, and of the occurrence of any event which would
  have a material adverse effect on the value of the Intellectual Property or
  on the Secured Party's security interest therein. 

                                                             (k)                 
  The Company shall permit the Secured Party and its representatives and agents
  to inspect the Intellectual Property at any time, and to make copies of records
  pertaining to the Intellectual Property as may be requested by the Secured Party
  from time to time. 

                                                             (l)                 
  The Company will take all steps reasonably necessary to diligently pursue and
  seek to preserve, enforce and collect any rights, claims, causes of action and
  accounts receivable in respect of the Intellectual Property. 

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

                                                             (n)                 
  All information heretofore, herein or hereafter supplied to the Secured Party
  by or on behalf of the Company with respect to the Intellectual Property is
  accurate and complete in all material respects as of the date furnished. 

                                                             (o)                 
  Schedule A attached hereto contains a list of all of the subsidiaries
  of Company. 

                                                             (p)                 
  Schedule B attached hereto includes all Licenses, and all Patents and
  Patent Licenses, if any, owned by the Company in its own name as of the date
  hereof.

5 

 Schedule B hereto includes all Trademarks and Trademark Licenses, if
  any, owned by the Company in its own name as of the date hereof. Schedule
  B hereto includes all Copyrights and Copyright Licenses, if any, owned by
  the Company in its own name as of the date hereof. Schedule B hereto
  includes all Trade Secrets and Trade Secret Licenses, if any, owned by the Company
  as of the date hereof. To the best of the Company's knowledge, each License,
  Patent, Trademark, Copyright and Trade Secret is valid, subsisting, unexpired,
  enforceable and has not been abandoned. Except as set forth in Schedule B,
  none of such Licenses, Patents, Trademarks, Copyrights and Trade Secrets is
  the subject of any licensing or franchise agreement. To the best of the Company's
  knowledge, no holding, decision or judgment has been rendered by any Governmental
  Body which would limit, cancel or question the validity of any License, Patent,
  Trademark, Copyright and Trade Secrets . No action or proceeding is pending
  (i) seeking to limit, cancel or question the validity of any License, Patent,
  Trademark, Copyright or Trade Secret, or (ii) which, if adversely determined,
  would have a material adverse effect on the value of any License, Patent, Trademark,
  Copyright or Trade Secret. The Company has used and will continue to use for
  the duration of this Agreement, proper statutory notice in connection with its
  use of the Patents, Trademarks and Copyrights and consistent standards of quality
  in products leased or sold under the Patents, Trademarks and Copyrights. 

                                                   (q)                 With
  respect to any Intellectual Property: 

	 	 	 	 	 (i)      	 such Intellectual Property is subsisting and has not been adjudged invalid
      or unenforceable, in whole or in part; 
	 
	 	 	 	 	 (ii)      	 such Intellectual Property is valid and enforceable; 
	 
	 	 	 	 	 (iii)      	 the Company has made all necessary filings and recordations to protect
      its interest in such Intellectual Property, including, without limitation,
      recordations of all of its interests in the Patents, Patent Licenses, Trademarks
      and Trademark Licenses in the United States Patent and Trademark Office
      and in corresponding offices throughout the world and its claims to the
      Copyrights and Copyright Licenses in the United States Copyright Office
      and in corresponding offices throughout the world; 
	 
	 	 	 	 	 (iv)      	 other than as set forth in Schedule B, the Company is the exclusive
      owner of the entire and unencumbered right, title and interest in and to
      such Intellectual Property and no claim has been made that the use of such
      Intellectual Property infringes on the asserted rights of any third party;
      and 
	 
	 	 	 	 	 (v)      	 the Company has performed and will continue to perform all acts and has
      paid all required fees and taxes to maintain each and every item of Intellectual
      Property in full force and effect throughout the world, as applicable. 

6 

                                                             (r)                 
  Except with respect to any Trademark or Copyright that the Company shall reasonably
  determine is of negligible economic value to the Company, the Company shall:

                                                            (i)                 
  maintain each Trademark and Copyright in full force free from any claim of abandonment
  for non-use, maintain as in the past the quality of products and services offered
  under such Trademark or Copyright; employ such Trademark or Copyright with the
  appropriate notice of registration; not adopt or use any mark which is confusingly
  similar or a colorable imitation of such Trademark or Copyright unless the Secured
  Party shall obtain a perfected security interest in such mark pursuant to this
  Agreement; and not (and not permit any licensee or sublicensee thereof to) do
  any act or knowingly omit to do any act whereby any Trademark or Copyright may
  become invalidated; 

                                                            (ii)                
  not, except with respect to any Patent that it shall reasonably determine is
  of negligible economic value to it, do any act, or omit to do any act, whereby
  any Patent may become abandoned or dedicated; and 

                                                            (iii)               
  notify the Secured Party immediately if it knows, or has reason to know, that
  any application or registration relating to any Patent, Trademark or Copyright
  may become abandoned or dedicated, or of any adverse determination or development
  (including, without limitation, the institution of, or any such determination
  or development in, any proceeding in the United States Patent and Trademark
  Office, United States Copyright Office or any court or tribunal in any country)
  regarding its ownership of any Patent, Trademark or Copyright or its right to
  register the same or to keep and maintain the same. 

                                                             (s)                 
  Whenever the Company, either by itself or through any agent, employee, licensee
  or designee, shall file an application for the registration of any Patent, Trademark
  or Copyright with the United States Patent and Trademark Office, United States
  Copyright Office or any similar office or agency in any other country or any
  political subdivision thereof or acquire rights to any new Patent, Trademark
  or Copyright whether or not registered, report such filing to the Secured Party
  within five business days after the last day of the fiscal quarter in which
  such filing occurs. 

                                                             (t)
                   The
  Company shall take all reasonable and necessary steps, including, without limitation,
  in any proceeding before the United States Patent and Trademark Office, United
  States Copyright Office or any similar office or agency in any other country
  or any political subdivision thereof, to maintain and pursue each application
  (and to obtain the relevant registration) and to maintain each registration
  of the Patents, Trademarks and Copyrights, including, without limitation, filing
  of applications for renewal, affidavits of use and affidavits of incontestability.

                                                             (u)                 
  In the event that any Patent, Trademark or Copyright included in the Intellectual
  Property is infringed, misappropriated or diluted by a third party, promptly
  notify the Secured Party after it learns thereof and shall, unless it shall
  reasonably determine that such 

7 

Patent, Trademark or Copyright is of negligible economic value to it, which determination it shall promptly report to the Secured Party, promptly sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to
recover any and all damages for such infringement, misappropriation or dilution, or take such other actions as it shall reasonably deem appropriate under the circumstances to protect such Patent, Trademark or Copyright. If the Company lacks the
financial resources to comply with this Section 3(t), the Company shall so notify the Secured Party and shall cooperate fully with any enforcement action undertaken by the Secured Party on behalf of the Company. 

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

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

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

                                                             (c)
                   The
  failure by the Company to observe or perform any of its obligations hereunder
  or in the Security Agreement for ten (10) days after receipt by the Company
  of notice of such failure from the Secured Party; and 

                                                             (d)
                   Any
  breach of, or default under, the Warrants. 

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

                                         6.                 
  Rights and Remedies Upon Default. Upon occurrence of any Event of Default
  and at any time thereafter, the Secured Party shall have the right to exercise
  all of the remedies conferred hereunder and under the Notes, and the Secured
  Party shall have all the rights and remedies of a secured party under the UCC
  and/or any other applicable law (including the Uniform Commercial Code of any
  jurisdiction in which any Intellectual Property is then located). Without limitation,
  the Secured Party shall have the following rights and powers: 

                                                             (a)                 
  The Secured Party shall have the right to take possession of the Intellectual
  Property and, for that purpose, enter, with the aid and assistance of any person,
  any premises where the Intellectual Property, or any part thereof, is or may
  be placed and remove the same, and the Company shall assemble the Intellectual
  Property and make it available to the Secured Party at places which the Secured
  Party shall reasonably select, whether at the Company's premises or elsewhere,
  and make available to the Secured Party, without rent, all of 

8 

the Company's respective premises and facilities for the purpose of the Secured Party taking possession of, removing or putting the Intellectual Property in saleable or disposable form. 

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

                                         7.                 
  Applications of Proceeds. The proceeds of any such sale, lease or other
  disposition of the Intellectual Property hereunder shall be applied first, to
  the expenses of retaking, holding, storing, processing and preparing for sale,
  selling, and the like (including, without limitation, any taxes, fees and other
  costs incurred in connection therewith) of the Intellectual Property, to the
  reasonable attorneys' fees and expenses incurred by the Secured Party in enforcing
  its rights hereunder and in connection with collecting, storing and disposing
  of the Intellectual Property, and then to satisfaction of the Obligations, and
  to the payment of any other amounts required by applicable law, after which
  the Secured Party shall pay to the Company any surplus proceeds. If, upon the
  sale, license or other disposition of the Intellectual Property, the proceeds
  thereof are insufficient to pay all amounts to which the Secured Party is legally
  entitled, the Company will be liable for the deficiency, together with interest
  thereon, at the rate of 15% per annum (the "Default Rate"), and the reasonable
  fees of any attorneys employed by the Secured Party to collect such deficiency.
  To the extent permitted by applicable law, the Company waives all claims, damages
  and demands against the Secured Party arising out of the repossession, removal,
  retention or sale of the Intellectual Property, unless due to the gross negligence
  or willful misconduct of the Secured Party. 

                                         8.                 
  Costs and Expenses. The Company agrees to pay all out-of-pocket fees,
  costs and expenses incurred in connection with any filing required hereunder,
  including without limitation, any financing statements, continuation statements,
  partial releases and/or termination statements related thereto or any expenses
  of any searches reasonably required by the Secured Party. The Company shall
  also pay all other claims and charges which in the reasonable opinion of the
  Secured Party might prejudice, imperil or otherwise affect the Intellectual
  Property or the Security Interest therein. The Company will also, upon demand,
  pay to the Secured Party the amount of any and all reasonable expenses, including
  the reasonable fees and expenses of its counsel and of any experts and agents,
  which the Secured Party may incur in connection with (i) the enforcement of
  this Agreement, (ii) the custody or preservation of, or the sale of, collection
  from, or other realization upon, any of the Intellectual Property, or (iii)
  the exercise or 

9 

enforcement of any of the rights of the Secured Party under the Notes. Until so paid, any fees payable hereunder shall be added to the principal amount of the Notes and shall bear interest at the Default Rate. 

                                         9.                 
  Responsibility for Intellectual Property. The Company assumes all liabilities
  and responsibility in connection with all Intellectual Property, and the obligations
  of the Company hereunder or under the Notes and the Warrants shall in no way
  be affected or diminished by reason of the loss, destruction, damage or theft
  of any of the Intellectual Property or its unavailability for any reason.

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

                                         11.                
  Term of Agreement. This Agreement and the Security Interest shall terminate
  on the date on which all payments under the Notes have been made in full and
  all other Obligations have been paid or discharged. Upon such termination, the
  Secured Party, at the 

10 

request and at the expense of the Company, will join in executing any termination statement with respect to any financing statement executed and filed pursuant to this Agreement.

                                         12.                
  Power of Attorney; Further Assurances. 

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

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

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

                                         13.                
  Notices. All notices, requests, demands and other communications hereunder
  shall be in writing, with copies to all the other parties hereto, and shall
  be deemed to 

11 

have been duly given when (i) if delivered by hand, upon receipt, (ii) if sent by facsimile, upon receipt of proof of sending thereof, (iii) if sent by nationally recognized overnight delivery service (receipt requested), the next business day or
(iv) if mailed by first-class registered or certified mail, return receipt requested, postage prepaid, four days after posting in the U.S. mails, in each case if delivered to the following addresses: 

	 	 If to the Company:  	 Banyan Corporation  
	 	  	1925 Century Park East, Suite 500
	 	  	 Los Angeles, California 90067
	 	  	 Attention: Chief Executive Officer
	 	  	 Telephone: 800-808-0899
	 	  	 Facsimile: 403-287-8804
	 	  	 
	 	 With copies to:  	 Noel E. Guardi, Esq.
	 	  	 3224 South Newcombe Street
	 	  	 Suite 2105
	 	  	 Lakewood, Colorado 80227
	 	  	 Telephone: 303-969-8886
	 	  	 Facsimile: 303-969-8887
	 	  	 
	 	 If to the Secured Party:  	 AJW Partners, LLC
	 	  	 AJW Offshore, Ltd.
	 	  	 AJW Qualified Partners, LLC
	 	  	 New Millennium Capital Partners II, LLC
	 	  	 1044 Northern Boulevard
	 	  	 Suite 302
	 	  	 Roslyn, New York 11576
	 	  	 Attention: Corey Ribotsky
	 	  	 Facsimile: 516-739-7115
	 	  	 
	 	 With copies to:  	 Ballard Spahr Andrews & Ingersoll, LLP
	 	  	 1735 Market Street, 51st Floor
	 	  	 Philadelphia, Pennsylvania 19103
	 	  	 Attention: Gerald J. Guarcini, Esquire
	 	  	 Facsimile: 215-864-8999

                                         14.                
  Other Security. To the extent that the Obligations are now or hereafter
  secured by property other than the Intellectual Property or by the guarantee,
  endorsement or property of any other person, firm, corporation or other entity,
  then the Secured Party shall have the right, in its sole discretion, to pursue,
  relinquish, subordinate, modify or take any other action with respect thereto,
  without in any way modifying or affecting any of the Secured Party's rights
  and remedies hereunder. 

12 

                                         15.                
  Miscellaneous. 

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

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

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

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

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

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

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

                                                             (h)
                   This
  Agreement shall be construed in accordance with the laws of the State of New
  York, except to the extent the validity, perfection or enforcement of a security
  interest hereunder in respect of any particular Intellectual Property which
  are governed by a jurisdiction other than the State of New York in which case
  such law shall govern. Each of the 

13 

parties hereto irrevocably submit to the exclusive jurisdiction of any New York State or United States Federal court sitting in Manhattan county over any action or proceeding arising out of or relating to this Agreement, and the parties hereto
hereby irrevocably agree that all claims in respect of such action or proceeding may be heard and determined in such New York State or Federal court. The parties hereto agree that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. The parties hereto further waive any objection to venue in the State of New York and any objection to an action or proceeding in the State of
New York on the basis of forum non conveniens. 

                                                             (i)                 
  EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL
  OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.
  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY DISPUTES
  THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER OF THIS
  AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH
  OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
  ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER
  INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS WAIVER
  IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY ON
  THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
  REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
  SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL FOLLOWING
  SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING THAT, NOTWITHSTANDING
  ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER ORALLY OR IN
  WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS
  AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF A LITIGATION,
  THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

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

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

14 

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

	 	 BANYAN CORPORATION  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Michael J. Gelmon  
	 	 	 Chief Executive Officer 
	 	 	  
	 	 	  
	 	 AJW PARTNERS, LLC  
	 	 By: SMS Group, LLC  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Corey S. Ribotsky  
	 	 	 Manager  
	 	 	  
	 	 	  
	 	 AJW OFFSHORE, LTD.  
	 	 By: First Street Manager II, LLC  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Corey S. Ribotsky  
	 	 	 Manager  
	 	 	  
	 	 	  
	 	 AJW QUALIFIED PARTNERS, LLC  
	 	 By: AJW Manager, LLC  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Corey S. Ribotsky  
	 	 	 Manager  
	 	 	  
	 	 	 
	 	 NEW MILLENNIUM CAPITAL PARTNERS II,
      LLC  
	 	 By: First Street Manager II, LLC  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Corey S. Ribotsky  
	 	 	 Manager  

15

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