Document:

Exhibit 4.3

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THIS  SECURITY  AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE  OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN  ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                  To Purchase 323,530 Shares of Common Stock of

                                  Knobias, Inc.

                  THIS COMMON STOCK PURCHASE  WARRANT (the "Warrant")  certifies
that, for value received, DCOFI Master LDC (the "Holder"), is entitled, upon the
terms and subject to the limitations on exercise and the conditions  hereinafter
set forth, at any time on or after the date hereof (the "Initial Exercise Date")
and on or prior to the close of  business  on the five year  anniversary  of the
Initial Exercise Date (the "Termination Date") but not thereafter,  to subscribe
for and purchase from Knobias, Inc., a Delaware corporation (the "Company"),  up
to 323,530 shares (the "Warrant  Shares") of Common Stock,  $0.01 par value,  of
the Company (the  "Common  Stock").  The  purchase  price of one share of Common
Stock under this  Warrant  shall be equal to the Exercise  Price,  as defined in
Section 2(b).

         Section  1.  Definitions.  Capitalized  terms  used  and not  otherwise
defined  herein shall have the  meanings  set forth in that  certain  Securities
Purchase Agreement (the "Purchase  Agreement"),  dated March 15, 2005, among the
Company and the purchasers signatory thereto.

         Section 2.   Exercise.

                  a)  Exercise  of  Warrant.  Exercise  of the  purchase  rights
         represented  by this  Warrant  may be made at any  time or  times on or
         after the Initial  Exercise Date and on or before the Termination  Date
         by  delivery to the Company of a duly  executed  facsimile  copy of the
         Notice of Exercise Form annexed  hereto (or such other office or agency
         of  the  Company  as it may  designate  by  notice  in  writing  to the
         registered  Holder at the address of such Holder appearing on the books
         of the Company);  provided,  however, within 5 Trading Days of the date
         said Notice of Exercise is delivered  to the Company,  the Holder shall
         have surrendered this Warrant to the Company and the Company shall have
         received payment of the aggregate  Exercise Price of the shares thereby
         purchased by wire transfer or cashier's  check drawn on a United States
         bank.

                  b) Exercise  Price.  The  exercise  price of the Common  Stock
         under this Warrant shall be $0.85, subject to adjustment hereunder (the
         "Exercise Price").

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                  c) Cashless  Exercise.  If at any time after one year from the
         date of issuance of this  Warrant  there is no  effective  Registration
         Statement  registering  the resale of the Warrant Shares by the Holder,
         then  this  Warrant  may also be  exercised  at such time by means of a
         "cashless  exercise" in which the Holder shall be entitled to receive a
         certificate  for the number of  Warrant  Shares  equal to the  quotient
         obtained by dividing [(A-B) (X)] by (A), where:

                   (A) =   the VWAP on the Trading Day immediately preceding the
                           date of such election;

                   (B) =   the Exercise Price of this Warrant, as adjusted; and

                   (X) =   the number of Warrant  Shares  issuable upon exercise
                           of this Warrant in accordance  with the terms of this
                           Warrant  by means of a cash  exercise  rather  than a
                           cashless exercise.

                  d) Exercise  Limitations;  Holder's  Restrictions.  The Holder
         shall not have the  right to  exercise  any  portion  of this  Warrant,
         pursuant to Section 2(c) or otherwise,  to the extent that after giving
         effect to such issuance after exercise,  the Holder  (together with the
         Holder's  affiliates),  as  set  forth  on  the  applicable  Notice  of
         Exercise,  would  beneficially  own in excess of 9.99% of the number of
         shares of the Common Stock outstanding  immediately after giving effect
         to such issuance. For purposes of the foregoing sentence, the number of
         shares  of  Common  Stock  beneficially  owned  by the  Holder  and its
         affiliates  shall include the number of shares of Common Stock issuable
         upon  exercise of this Warrant with respect to which the  determination
         of such sentence is being made,  but shall exclude the number of shares
         of Common  Stock  which  would be  issuable  upon (A)  exercise  of the
         remaining,  nonexercised  portion of this Warrant beneficially owned by
         the Holder or any of its  affiliates  and (B) exercise or conversion of
         the unexercised or nonconverted  portion of any other securities of the
         Company (including,  without  limitation,  any other Notes or Warrants)
         subject to a  limitation  on  conversion  or exercise  analogous to the
         limitation  contained herein beneficially owned by the Holder or any of
         its  affiliates.  Except as set forth in the  preceding  sentence,  for
         purposes of this Section 2(d), beneficial ownership shall be calculated
         in  accordance  with  Section  13(d)  of the  Exchange  Act,  it  being
         acknowledged  by Holder that the Company is not  representing to Holder
         that  such  calculation  is in  compliance  with  Section  13(d) of the
         Exchange  Act and  Holder  is  solely  responsible  for  any  schedules
         required to be filed in  accordance  therewith.  To the extent that the
         limitation contained in this Section 2(d) applies, the determination of
         whether this Warrant is  exercisable  (in relation to other  securities
         owned  by the  Holder)  and of  which  a  portion  of this  Warrant  is
         exercisable  shall be in the sole  discretion  of such Holder,  and the
         submission of a Notice of Exercise  shall be deemed to be such Holder's
         determination  of whether this Warrant is  exercisable  (in relation to
         other  securities  owned by such  Holder) and of which  portion of this
         Warrant  is  exercisable,  in  each  case  subject  to  such  aggregate
         percentage  limitation,  and the Company  shall have no  obligation  to
         verify or confirm the accuracy of such  determination.  For purposes of
         this Section 2(d), in determining  the number of outstanding  shares of
         Common Stock,  the Holder may rely on the number of outstanding  shares
         of Common  Stock as  reflected  in (x) the  Company's  most recent Form
         10-QSB or Form  10-KSB,  as the case may be, (y) a more  recent  public
         announcement  by the Company or (z) any other  notice by the Company or
         the  Company's  Transfer  Agent  setting  forth the number of shares of
         Common  Stock  outstanding.  Upon the  written  or oral  request of the
         Holder, the Company shall within two Trading Days confirm orally and in
         writing  to the  Holder  the  number of shares  of  Common  Stock  then
         outstanding.  In any case, the number of  outstanding  shares of Common
         Stock shall be  determined  after giving  effect to the  conversion  or
         exercise of securities of the Company,  including this Warrant,  by the
         Holder  or its  affiliates  since the date as of which  such  number of
         outstanding shares of Common Stock was reported. The provisions of this
         Section 2(d) may be waived by the Holder  upon,  at the election of the

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         Holder,  not less than 61 days' prior  notice to the  Company,  and the
         provisions of this Section 2(d) shall continue to apply until such 61st
         day (or  such  later  date,  as  determined  by the  Holder,  as may be
         specified in such notice of waiver).

                  e) Mechanics of Exercise.

                                    i.  Authorization  of  Warrant  Shares.  The
                           Company  covenants  that all Warrant Shares which may
                           be issued upon the  exercise of the  purchase  rights
                           represented  by this Warrant  will,  upon exercise of
                           the purchase rights  represented by this Warrant,  be
                           duly  authorized,  validly  issued,  fully  paid  and
                           nonassessable  and free  from all  taxes,  liens  and
                           charges in respect of the issue  thereof  (other than
                           taxes   in   respect   of  any   transfer   occurring
                           contemporaneously   with  such  issue).  The  Company
                           covenants  that  during  the  period  the  Warrant is
                           outstanding,  it will reserve from its authorized and
                           unissued  Common Stock a sufficient  number of shares
                           to provide for the  issuance  of the  Warrant  Shares
                           upon the exercise of any  purchase  rights under this
                           Warrant.  The  Company  further  covenants  that  its
                           issuance  of  this  Warrant  shall   constitute  full
                           authority  to its  officers  who are charged with the
                           duty of executing  stock  certificates to execute and
                           issue  the  necessary  certificates  for the  Warrant
                           Shares upon the exercise of the purchase rights under
                           this   Warrant.   The  Company  will  take  all  such
                           reasonable  action as may be necessary to assure that
                           such Warrant Shares may be issued as provided  herein
                           without   violation   of   any   applicable   law  or
                           regulation,  or of any  requirements  of the  Trading
                           Market upon which the Common Stock may be listed.

                                    ii. Delivery of Certificates  Upon Exercise.
                           Certificates for shares purchased  hereunder shall be
                           transmitted  by the transfer  agent of the Company to
                           the Holder by  crediting  the account of the Holder's
                           prime  broker  with  the  Depository   Trust  Company
                           through  its  Deposit   Withdrawal  Agent  Commission
                           ("DWAC")  system if the Company is a  participant  in
                           such system,  and  otherwise by physical  delivery to
                           the address  specified by the Holder in the Notice of
                           Exercise  within 3 Trading  Days from the delivery to
                           the Company of the Notice of Exercise Form, surrender
                           of this Warrant and payment of the aggregate Exercise
                           Price as set forth  above  ("Warrant  Share  Delivery
                           Date").  This  Warrant  shall be  deemed to have been
                           exercised on the date the Exercise  Price is received
                           by the Company. The Warrant Shares shall be deemed to
                           have been  issued,  and Holder or any other person so
                           designated  to be named  therein  shall be  deemed to
                           have become a holder of record of such shares for all
                           purposes,  as  of  the  date  the  Warrant  has  been
                           exercised  by payment to the Company of the  Exercise
                           Price  and  all  taxes  required  to be  paid  by the
                           Holder,  if any,  pursuant to Section 2(e)(vii) prior
                           to the issuance of such shares, have been paid.

                                    iii. Delivery of New Warrants Upon Exercise.
                           If this  Warrant  shall have been  exercised in part,
                           the  Company  shall,  at the time of  delivery of the
                           certificate  or  certificates   representing  Warrant
                           Shares,  deliver to Holder a new  Warrant  evidencing
                           the  rights  of Holder to  purchase  the  unpurchased
                           Warrant Shares called for by this Warrant,  which new
                           Warrant shall in all other respects be identical with
                           this Warrant.

                                    iv. Rescission  Rights. If the Company fails
                           to cause its transfer agent to transmit to the Holder
                           a  certificate  or  certificates   representing   the
                           Warrant Shares  pursuant to this Section  2(e)(iv) by
                           the Warrant Share Delivery Date, then the Holder will
                           have the right to rescind such exercise.

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                                    v.  Compensation  for  Buy-In on  Failure to
                           Timely  Deliver   Certificates   Upon  Exercise.   In
                           addition to any other rights available to the Holder,
                           if the Company  fails to cause its transfer  agent to
                           transmit to the Holder a certificate or  certificates
                           representing   the  Warrant  Shares  pursuant  to  an
                           exercise  on or before  the  Warrant  Share  Delivery
                           Date,  and if after such date the Holder is  required
                           by  its  broker  to  purchase   (in  an  open  market
                           transaction  or otherwise)  shares of Common Stock to
                           deliver  in  satisfaction  of a sale by the Holder of
                           the  Warrant  Shares  which  the  Holder  anticipated
                           receiving  upon such exercise (a "Buy-In"),  then the
                           Company  shall  (1)  pay in cash  to the  Holder  the
                           amount by which (x) the Holder's total purchase price
                           (including  brokerage  commissions,  if any)  for the
                           shares of Common Stock so  purchased  exceeds (y) the
                           amount  obtained  by  multiplying  (A) the  number of
                           Warrant  Shares  that the  Company  was  required  to
                           deliver to the Holder in connection with the exercise
                           at issue  times (B) the price at which the sell order
                           giving rise to such purchase obligation was executed,
                           and (2) at the option of the Holder, either reinstate
                           the portion of the Warrant and  equivalent  number of
                           Warrant  Shares  for  which  such  exercise  was  not
                           honored or deliver to the Holder the number of shares
                           of Common  Stock that would have been  issued had the
                           Company   timely   complied  with  its  exercise  and
                           delivery obligations  hereunder.  For example, if the
                           Holder purchases Common Stock having a total purchase
                           price of $11,000 to cover a Buy-In with respect to an
                           attempted  exercise of shares of Common Stock with an
                           aggregate  sale price  giving  rise to such  purchase
                           obligation  of  $10,000,  under  clause  (1)  of  the
                           immediately  preceding  sentence the Company shall be
                           required to pay the Holder  $1,000.  The Holder shall
                           provide the Company  written  notice  indicating  the
                           amounts  payable  to the  Holder  in  respect  of the
                           Buy-In,  together with applicable  confirmations  and
                           other evidence  reasonably  requested by the Company.
                           Nothing herein shall limit a Holder's right to pursue
                           any other remedies available to it hereunder,  at law
                           or in equity including,  without limitation, a decree
                           of specific performance and/or injunctive relief with
                           respect to the  Company's  failure to timely  deliver
                           certificates representing shares of Common Stock upon
                           exercise of the  Warrant as required  pursuant to the
                           terms hereof.

                                    vi.  No  Fractional   Shares  or  Scrip.  No
                           fractional  shares or scrip  representing  fractional
                           shares  shall be  issued  upon the  exercise  of this
                           Warrant.  As to any  fraction of a share which Holder
                           would  otherwise  be entitled  to purchase  upon such
                           exercise,  the Company shall pay a cash adjustment in
                           respect of such final  fraction in an amount equal to
                           such fraction multiplied by the Exercise Price.

                                    vii. Charges,  Taxes and Expenses.  Issuance
                           of  certificates  for  Warrant  Shares  shall be made
                           without  charge  to  the  Holder  for  any  issue  or
                           transfer tax or other  incidental  expense in respect
                           of the  issuance  of such  certificate,  all of which
                           taxes and expenses shall be paid by the Company,  and
                           such certificates  shall be issued in the name of the
                           Holder or in such name or names as may be directed by
                           the  Holder;  provided,  however,  that in the  event
                           certificates for Warrant Shares are to be issued in a
                           name other than the name of the Holder,  this Warrant
                           when surrendered for exercise shall be accompanied by
                           the Assignment  Form attached hereto duly executed by
                           the  Holder;  and  the  Company  may  require,  as  a
                           condition thereto, the payment of a sum sufficient to
                           reimburse it for any transfer tax incidental thereto.

                                    viii. Closing of Books. The Company will not
                           close its stockholder  books or records in any manner
                           which  prevents the timely  exercise of this Warrant,
                           pursuant to the terms hereof.

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         Section 3.   Certain Adjustments.

                  a) Stock  Dividends  and Splits.  If the Company,  at any time
         while  this  Warrant  is  outstanding:  (A)  pays a stock  dividend  or
         otherwise make a distribution or  distributions on shares of its Common
         Stock or any other equity or equity  equivalent  securities  payable in
         shares  of Common  Stock  (which,  for  avoidance  of doubt,  shall not
         include any shares of Common  Stock  issued by the Company  pursuant to
         this Warrant), (B) subdivides outstanding shares of Common Stock into a
         larger  number of shares,  (C)  combines  (including  by way of reverse
         stock split)  outstanding  shares of Common Stock into a smaller number
         of shares,  or (D) issues by  reclassification  of shares of the Common
         Stock any shares of capital stock of the Company, then in each case the
         Exercise Price shall be multiplied by a fraction of which the numerator
         shall be the  number  of shares of  Common  Stock  (excluding  treasury
         shares,  if  any)  outstanding  before  such  event  and of  which  the
         denominator  shall be the number of shares of Common Stock  outstanding
         after such event and the number of shares  issuable  upon  exercise  of
         this Warrant shall be  proportionately  adjusted.  Any adjustment  made
         pursuant to this Section 3(a) shall become effective  immediately after
         the record  date for the  determination  of  stockholders  entitled  to
         receive  such  dividend  or  distribution  and shall  become  effective
         immediately  after  the  effective  date in the case of a  subdivision,
         combination or re-classification.

                  b) Subsequent  Equity Sales.  If the Company or any Subsidiary
         thereof, as applicable,  at any time while this Warrant is outstanding,
         shall offer, sell, grant any option to purchase or offer, sell or grant
         any right to reprice its securities,  or otherwise  dispose of or issue
         (or announce any offer,  sale, grant or any option to purchase or other
         disposition) any Common Stock or Common Stock Equivalents entitling any
         Person to acquire  shares of Common  Stock,  at an effective  price per
         share less than the then  Exercise  Price (such lower price,  the "Base
         Share Price" and such issuances  collectively,  a "Dilutive Issuance"),
         as  adjusted  hereunder  (if the holder of the  Common  Stock or Common
         Stock Equivalents so issued shall at any time,  whether by operation of
         purchase price  adjustments,  reset  provisions,  floating  conversion,
         exercise or exchange prices or otherwise,  or due to warrants,  options
         or rights per share which is issued in connection  with such  issuance,
         be entitled to receive shares of Common Stock at an effective price per
         share which is less than the Exercise  Price,  such  issuance  shall be
         deemed to have occurred for less than the Exercise  Price),  then,  the
         Exercise  Price  shall be reduced to equal the Base Share Price and the
         number of Warrant  Shares  issuable  hereunder  shall be increased such
         that the aggregate Exercise Price payable hereunder,  after taking into
         account  the  decrease  in the  Exercise  Price,  shall be equal to the
         aggregate  Exercise  Price prior to such  adjustment.  Such  adjustment
         shall be made  whenever  such Common Stock or Common Stock  Equivalents
         are issued. Such adjustment shall be made whenever such Common Stock or
         Common  Stock  Equivalents  are issued.  The Company  shall  notify the
         Holder in writing, no later than the Trading Day following the issuance
         of any  Common  Stock  or  Common  Stock  Equivalents  subject  to this
         section,  indicating  therein  the  applicable  issuance  price,  or of
         applicable  reset price,  exchange  price,  conversion  price and other
         pricing  terms  (such  notice  the  "Dilutive  Issuance  Notice").  For
         purposes  of  clarification,  whether  or not the  Company  provides  a
         Dilutive  Issuance  Notice  pursuant  to this  Section  3(b),  upon the
         occurrence  of any Dilutive  Issuance,  after the date of such Dilutive
         Issuance  the Holder is entitled to receive a number of Warrant  Shares
         based  upon the Base  Share  Price  regardless  of  whether  the Holder
         accurately refers to the Base Share Price in the Notice of Exercise.

                  c) Pro Rata  Distributions.  If the Company, at any time prior
         to the  Termination  Date,  shall  distribute  to all holders of Common
         Stock  (and  not  to  Holders  of  the   Warrants)   evidences  of  its
         indebtedness  or  assets  or rights or  warrants  to  subscribe  for or
         purchase  any  security  other than the Common  Stock  (which  shall be

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         shall  be  adjusted  by  multiplying   the  Exercise  Price  in  effect
         immediately  prior  to the  record  date  fixed  for  determination  of
         stockholders  entitled to receive  such  distribution  by a fraction of
         which the  denominator  shall be the VWAP  determined  as of the record
         date mentioned  above, and of which the numerator shall be such VWAP on
         such  record  date less the then per share  fair  market  value at such
         record date of the  portion of such assets or evidence of  indebtedness
         so distributed  applicable to one outstanding share of the Common Stock
         as determined  by the Board of Directors in good faith.  In either case
         the  adjustments  shall be  described  in a  statement  provided to the
         Holders  of the  portion  of assets or  evidences  of  indebtedness  so
         distributed  or such  subscription  rights  applicable  to one share of
         Common  Stock.   Such  adjustment  shall  be  made  whenever  any  such
         distribution is made and shall become effective  immediately  after the
         record date mentioned above.

                  d) Calculations.  All calculations  under this Section 3 shall
         be made to the nearest cent or the nearest  1/100th of a share,  as the
         case may be. The number of shares of Common  Stock  outstanding  at any
         given time shall not  includes  shares of Common Stock owned or held by
         or for the  account of the  Company,  and the  description  of any such
         shares of Common Stock shall be  considered  on issue or sale of Common
         Stock.  For  purposes of this Section 3, the number of shares of Common
         Stock deemed to be issued and  outstanding  as of a given date shall be
         the sum of the  number of shares of Common  Stock  (excluding  treasury
         shares, if any) issued and outstanding.

                  e) Notice to Holders.

                           i.  Adjustment  to  Exercise   Price.   Whenever  the
                  Exercise  Price is adjusted  pursuant  to this  Section 3, the
                  Company shall  promptly  mail to each Holder a notice  setting
                  forth the  Exercise  Price after such  adjustment  and setting
                  forth  a  brief   statement  of  the  facts   requiring   such
                  adjustment.  If the Company  issues a variable rate  security,
                  despite the prohibition thereon in the Purchase Agreement, the
                  Company  shall be deemed to have issued Common Stock or Common
                  Stock  Equivalents  at  the  lowest  possible   conversion  or
                  exercise  price at which such  securities  may be converted or
                  exercised  in the  case of a  Variable  Rate  Transaction  (as
                  defined in the  Purchase  Agreement),  or the lowest  possible
                  adjustment price in the case of an MFN Transaction (as defined
                  in the Purchase Agreement.

                           ii.  Notice to Allow  Exercise by Holder.  If (A) the
                  Company shall  declare a dividend (or any other  distribution)
                  on the Common  Stock;  (B) the Company shall declare a special
                  nonrecurring  cash  dividend on or a redemption  of the Common
                  Stock;  (C) the Company  shall  authorize  the granting to all
                  holders of the Common  Stock  rights or warrants to  subscribe
                  for or purchase any shares of capital stock of any class or of
                  any  rights;  (D)  the  approval  of any  stockholders  of the
                  Company   shall   be   required   in   connection   with   any
                  reclassification  of the Common Stock,  any  consolidation  or
                  merger to which the  Company is a party,  any sale or transfer
                  of all or substantially  all of the assets of the Company,  of
                  any  compulsory  share  exchange  whereby the Common  Stock is
                  converted  into other  securities,  cash or property;  (E) the
                  Company  shall   authorize   the   voluntary  or   involuntary
                  dissolution,  liquidation  or winding up of the affairs of the
                  Company;  then,  in each case,  the Company  shall cause to be
                  mailed to the Holder at its last  addresses as it shall appear
                  upon the Warrant Register of the Company, at least 20 calendar
                  days  prior  to  the  applicable   record  or  effective  date
                  hereinafter  specified, a notice stating (x) the date on which
                  a record  is to be taken  for the  purpose  of such  dividend,
                  distribution,  redemption,  rights or warrants, or if a record
                  is not to be taken,  the date as of which the  holders  of the
                  Common  Stock  of  record  to be  entitled  to such  dividend,
                  distributions,  redemption,  rights  or  warrants  are  to  be

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                  determined  or (y) the  date on which  such  reclassification,
                  consolidation,  merger,  sale,  transfer or share  exchange is
                  expected  to become  effective  or  close,  and the date as of
                  which it is  expected  that  holders  of the  Common  Stock of
                  record  shall be  entitled  to  exchange  their  shares of the
                  Common   Stock  for   securities,   cash  or  other   property
                  deliverable upon such reclassification, consolidation, merger,
                  sale, transfer or share exchange;  provided,  that the failure
                  to mail such  notice or any defect  therein or in the  mailing
                  thereof shall not affect the validity of the corporate  action
                  required  to be  specified  in  such  notice.  The  Holder  is
                  entitled to exercise  this  Warrant  during the 20-day  period
                  commencing  the date of such notice to the  effective  date of
                  the event triggering such notice.

                  f) Fundamental Transaction. If, at any time while this Warrant
         is outstanding,  (A) the Company effects any merger or consolidation of
         the Company with or into another  Person,  (B) the Company  effects any
         sale of all or  substantially  all of its  assets in one or a series of
         related  transactions,  (C) any tender offer or exchange offer (whether
         by the  Company  or  another  Person) is  completed  pursuant  to which
         holders  of Common  Stock are  permitted  to tender or  exchange  their
         shares  for other  securities,  cash or  property,  or (D) the  Company
         effects  any  reclassification  of the Common  Stock or any  compulsory
         share  exchange  pursuant  to which  the  Common  Stock is  effectively
         converted into or exchanged for other securities,  cash or property (in
         any such case, a "Fundamental Transaction"),  then, upon any subsequent
         conversion of this Warrant, the Holder shall have the right to receive,
         for each Warrant Share that would have been issuable upon such exercise
         absent such Fundamental  Transaction,  at the option of the Holder, (a)
         upon exercise of this Warrant,  the number of shares of Common Stock of
         the successor or acquiring  corporation or of the Company, if it is the
         surviving corporation,  and Alternate Consideration  receivable upon or
         as  a  result  of  such   reorganization,   reclassification,   merger,
         consolidation  or  disposition  of assets by a Holder of the  number of
         shares  of  Common  Stock  for  which  this   Warrant  is   exercisable
         immediately  prior to such event or (b) cash equal to the value of this
         Warrant as  determined  in  accordance  with the  Black-Scholes  option
         pricing  formula (the "Alternate  Consideration").  For purposes of any
         such  exercise,  the  determination  of the  Exercise  Price  shall  be
         appropriately  adjusted to apply to such Alternate  Consideration based
         on the amount of  Alternate  Consideration  issuable  in respect of one
         share of Common Stock in such Fundamental Transaction,  and the Company
         shall apportion the Exercise Price among the Alternate Consideration in
         a reasonable  manner  reflecting  the relative  value of any  different
         components of the Alternate  Consideration.  If holders of Common Stock
         are  given any  choice as to the  securities,  cash or  property  to be
         received in a Fundamental  Transaction,  then the Holder shall be given
         the same choice as to the Alternate  Consideration it receives upon any
         exercise of this Warrant following such Fundamental Transaction. To the
         extent necessary to effectuate the foregoing provisions,  any successor
         to the  Company or  surviving  entity in such  Fundamental  Transaction
         shall issue to the Holder a new warrant  consistent  with the foregoing
         provisions  and  evidencing the Holder's right to exercise such warrant
         into Alternate  Consideration.  The terms of any agreement  pursuant to
         which  a  Fundamental  Transaction  is  effected  shall  include  terms
         requiring  any such  successor or  surviving  entity to comply with the
         provisions of this paragraph (f) and insuring that this Warrant (or any
         such  replacement   security)  will  be  similarly  adjusted  upon  any
         subsequent transaction analogous to a Fundamental Transaction.

                  g)  Exempt  Issuance.   Notwithstanding   the  foregoing,   no
         adjustments, Alternate Consideration nor notices shall be made, paid or
         issued under this Section 3 in respect of an Exempt Issuance.

                                       7
<PAGE>

                  h)  Voluntary  Adjustment  By Company.  The Company may at any
         time during the term of this Warrant  reduce the then current  Exercise
         Price to any amount and for any period of time  deemed  appropriate  by
         the Board of Directors of the Company.

         Section 4.   Transfer of Warrant.

                  a) Transferability.  Subject to compliance with any applicable
         securities  laws and the conditions set forth in Sections 5(a) and 4(d)
         hereof and to the provisions of Section 4.1 of the Purchase  Agreement,
         this Warrant and all rights hereunder are transferable,  in whole or in
         part,  upon  surrender of this Warrant at the  principal  office of the
         Company,   together   with  a  written   assignment   of  this  Warrant
         substantially  in the form attached  hereto duly executed by the Holder
         or its agent or attorney and funds sufficient to pay any transfer taxes
         payable upon the making of such  transfer.  Upon such surrender and, if
         required,  such  payment,  the Company  shall execute and deliver a new
         Warrant or Warrants in the name of the assignee or assignees and in the
         denomination   or   denominations   specified  in  such  instrument  of
         assignment,  and shall issue to the  assignor a new Warrant  evidencing
         the portion of this  Warrant not so assigned,  and this  Warrant  shall
         promptly  be  cancelled.  A  Warrant,  if  properly  assigned,  may  be
         exercised  by a new holder for the purchase of Warrant  Shares  without
         having a new Warrant issued.

                  b) New Warrants.  This Warrant may be divided or combined with
         other Warrants upon presentation  hereof at the aforesaid office of the
         Company,  together  with a  written  notice  specifying  the  names and
         denominations  in which new  Warrants  are to be issued,  signed by the
         Holder or its agent or  attorney.  Subject to  compliance  with Section
         4(a),  as to any  transfer  which may be involved  in such  division or
         combination,  the  Company  shall  execute and deliver a new Warrant or
         Warrants  in  exchange  for the  Warrant or  Warrants  to be divided or
         combined in accordance with such notice.

                  c) Warrant Register.  The Company shall register this Warrant,
         upon  records to be  maintained  by the Company for that  purpose  (the
         "Warrant Register"),  in the name of the record Holder hereof from time
         to time. The Company may deem and treat the  registered  Holder of this
         Warrant as the  absolute  owner  hereof for the purpose of any exercise
         hereof or any  distribution to the Holder,  and for all other purposes,
         absent actual notice to the contrary.

                  d) Transfer Restrictions.  If, at the time of the surrender of
         this  Warrant in  connection  with any  transfer of this  Warrant,  the
         transfer  of  this  Warrant  shall  not be  registered  pursuant  to an
         effective  registration  statement  under the  Securities Act and under
         applicable  state securities or blue sky laws, the Company may require,
         as a  condition  of  allowing  such  transfer  (i) that the  Holder  or
         transferee of this Warrant,  as the case may be, furnish to the Company
         a written opinion of counsel (which opinion shall be in form, substance
         and scope customary for opinions of counsel in comparable transactions)
         to the effect that such transfer may be made without registration under
         the Securities Act and under  applicable  state  securities or blue sky
         laws,  (ii) that the holder or  transferee  execute  and deliver to the
         Company an investment  letter in form and  substance  acceptable to the
         Company and (iii) that the  transferee be an  "accredited  investor" as
         defined  in  Rule  501(a)(1),   (a)(2),   (a)(3),   (a)(7),  or  (a)(8)
         promulgated under the Securities Act or a qualified institutional buyer
         as defined in Rule 144A(a) under the Securities Act.

         Section 5.   Miscellaneous.

                  a) Most Favored  Nation  Provision.  If at any time while this
         Warrant is  outstanding,  the Company issues  warrants to any person on
         terms that are more  favorable  to such  person  than the terms of this
         Warrant   (including,   but  not  limited  to,  exercise  price,  term,

                                       8
<PAGE>

         anti-dilution  provisions,  etc.),  then the  Company  shall  amend the
         Warrant such that the Holder receives the benefit of the more favorable
         terms.

                  b) Title to Warrant. Prior to the Termination Date and subject
         to compliance with applicable laws and Section 4 of this Warrant,  this
         Warrant and all rights hereunder are transferable, in whole or in part,
         at the  office or agency of the  Company  by the Holder in person or by
         duly authorized attorney,  upon surrender of this Warrant together with
         the Assignment  Form annexed hereto properly  endorsed.  The transferee
         shall  sign an  investment  letter  in form  and  substance  reasonably
         satisfactory to the Company.

                  c) No Rights as Shareholder Until Exercise.  This Warrant does
         not  entitle  the  Holder to any  voting  rights  or other  rights as a
         shareholder  of the  Company  prior to the  exercise  hereof.  Upon the
         surrender  of this  Warrant and the payment of the  aggregate  Exercise
         Price  (or by means of a  cashless  exercise),  the  Warrant  Shares so
         purchased  shall be and be deemed  to be  issued to such  Holder as the
         record owner of such shares as of the close of business on the later of
         the date of such surrender or payment.

                  d) Loss,  Theft,  Destruction  or Mutilation  of Warrant.  The
         Company  covenants  that  upon  receipt  by  the  Company  of  evidence
         reasonably  satisfactory  to it of  the  loss,  theft,  destruction  or
         mutilation  of this  Warrant or any stock  certificate  relating to the
         Warrant Shares, and in case of loss, theft or destruction, of indemnity
         or security  reasonably  satisfactory to it (which,  in the case of the
         Warrant, shall not include the posting of any bond), and upon surrender
         and  cancellation of such Warrant or stock  certificate,  if mutilated,
         the Company will make and deliver a new Warrant or stock certificate of
         like tenor and dated as of such  cancellation,  in lieu of such Warrant
         or stock certificate.

                  e) Saturdays, Sundays, Holidays, etc. If the last or appointed
         day for  the  taking  of any  action  or the  expiration  of any  right
         required  or  granted  herein  shall be a  Saturday,  Sunday or a legal
         holiday,  then such action may be taken or such right may be  exercised
         on the next succeeding day not a Saturday, Sunday or legal holiday.

                  f) Authorized Shares.

                           The  Company  covenants  that  during  the period the
                  Warrant is  outstanding,  it will reserve from its  authorized
                  and unissued  Common  Stock a  sufficient  number of shares to
                  provide  for the  issuance  of the  Warrant  Shares  upon  the
                  exercise  of any  purchase  rights  under  this  Warrant.  The
                  Company  further  covenants  that its issuance of this Warrant
                  shall  constitute  full  authority  to its  officers  who  are
                  charged  with  the duty of  executing  stock  certificates  to
                  execute and issue the necessary  certificates  for the Warrant
                  Shares upon the  exercise of the  purchase  rights  under this
                  Warrant.  The Company will take all such reasonable  action as
                  may be  necessary  to assure that such  Warrant  Shares may be
                  issued as provided herein without  violation of any applicable
                  law or  regulation,  or of  any  requirements  of the  Trading
                  Market upon which the Common Stock may be listed.

                           Except and to the extent as waived or consented to by
                  the Holder,  the Company  shall not by any action,  including,
                  without limitation,  amending its certificate of incorporation
                  or   through   any   reorganization,   transfer   of   assets,
                  consolidation,   merger,   dissolution,   issue   or  sale  of
                  securities  or any other  voluntary  action,  avoid or seek to
                  avoid the  observance  or  performance  of any of the terms of
                  this  Warrant,  but will at all times in good faith  assist in
                  the  carrying  out of all such  terms and in the taking of all
                  such actions as may be necessary or appropriate to protect the
                  rights  of  Holder  as  set  forth  in  this  Warrant  against

                                       9
<PAGE>

                  impairment.  Without limiting the generality of the foregoing,
                  the Company will (a) not increase the par value of any Warrant
                  Shares above the amount  payable  therefor  upon such exercise
                  immediately  prior to such increase in par value, (b) take all
                  such action as may be necessary or  appropriate  in order that
                  the  Company  may  validly  and  legally  issue fully paid and
                  nonassessable   Warrant  Shares  upon  the  exercise  of  this
                  Warrant, and (c) use commercially reasonable efforts to obtain
                  all  such  authorizations,  exemptions  or  consents  from any
                  public regulatory body having  jurisdiction  thereof as may be
                  necessary  to enable the  Company to perform  its  obligations
                  under this Warrant.

                           Before  taking any action  which  would  result in an
                  adjustment  in the  number of  Warrant  Shares  for which this
                  Warrant is exercisable or in the Exercise  Price,  the Company
                  shall obtain all such authorizations or exemptions thereof, or
                  consents  thereto,   as  may  be  necessary  from  any  public
                  regulatory body or bodies having jurisdiction thereof.

                  g) Jurisdiction.  All questions  concerning the  construction,
         validity,  enforcement  and  interpretation  of this  Warrant  shall be
         determined in accordance with the provisions of the Purchase Agreement.

                  h)  Restrictions.  The Holder  acknowledges  that the  Warrant
         Shares  acquired upon the exercise of this Warrant,  if not registered,
         will  have  restrictions  upon  resale  imposed  by state  and  federal
         securities laws.

                  i) Nonwaiver and  Expenses.  No course of dealing or any delay
         or failure to exercise any right  hereunder on the part of Holder shall
         operate  as a waiver  of such  right or  otherwise  prejudice  Holder's
         rights,  powers or remedies,  notwithstanding  the fact that all rights
         hereunder  terminate on the Termination  Date. If the Company willfully
         and knowingly fails to comply with any provision of this Warrant, which
         results in any material damages to the Holder, the Company shall pay to
         Holder  such  amounts  as shall be  sufficient  to cover  any costs and
         expenses  including,  but not limited to,  reasonable  attorneys' fees,
         including  those  of  appellate  proceedings,  incurred  by  Holder  in
         collecting  any amounts due pursuant  hereto or in otherwise  enforcing
         any of its rights, powers or remedies hereunder.

                  j) Notices. Any notice,  request or other document required or
         permitted to be given or  delivered to the Holder by the Company  shall
         be delivered in accordance  with the notice  provisions of the Purchase
         Agreement.

                  k)  Limitation  of  Liability.  No  provision  hereof,  in the
         absence of any affirmative action by Holder to exercise this Warrant or
         purchase  Warrant  Shares,  and no enumeration  herein of the rights or
         privileges  of Holder,  shall give rise to any  liability of Holder for
         the  purchase  price of any  Common  Stock or as a  stockholder  of the
         Company,  whether  such  liability  is  asserted  by the  Company or by
         creditors of the Company.

                  l) Remedies. Holder, in addition to being entitled to exercise
         all rights  granted by law,  including  recovery  of  damages,  will be
         entitled to specific  performance of its rights under this Warrant. The
         Company agrees that monetary damages would not be adequate compensation
         for any loss incurred by reason of a breach by it of the  provisions of
         this  Warrant and hereby  agrees to waive the defense in any action for
         specific performance that a remedy at law would be adequate.

                  m) Successors  and Assigns.  Subject to applicable  securities
         laws,  this  Warrant and the rights and  obligations  evidenced  hereby
         shall inure to the benefit of and be binding upon the successors of the
         Company  and the  successors  and  permitted  assigns  of  Holder.  The

                                       10
<PAGE>

         provisions  of this  Warrant are  intended to be for the benefit of all
         Holders from time to time of this Warrant and shall be  enforceable  by
         any such Holder or holder of Warrant Shares.

                  n)  Amendment.  This Warrant may be modified or amended or the
         provisions  hereof  waived with the written  consent of the Company and
         the Holder.

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

                  p)  Headings.  The  headings  used in this Warrant are for the
         convenience of reference only and shall not, for any purpose, be deemed
         a part of this Warrant.

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

                                       11
<PAGE>

                  IN WITNESS WHEREOF,  the Company has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated:  March 15, 2005

                                                KNOBIAS, INC.

                                                /s/ E. KEY RAMSEY
                                                ------------------------
                                                E. Key Ramsey, President

                                       12Exhibit 4.4

                               SECURITY AGREEMENT

         SECURITY  AGREEMENT,  dated as of March 15,  2005  (this  "Agreement"),
among Knobias,  Inc., a Delaware corporation (the "Company" or the "Debtor") and
the holder or holders of the Company's 12% Senior Subordinated Secured Notes due
September  1, 2006 in the  aggregate  principal  amount of up to  $550,000  (the
"Notes"),   signatory   hereto,   their   endorsees,   transferees  and  assigns
(collectively referred to as, the "Secured Parties").

                              W I T N E S S E T H:

         WHEREAS,  pursuant to the Notes,  the Secured  Parties  have  severally
agreed to extend the loans to the Company evidenced by the Notes;

         WHEREAS,  the Notes are being  exchanged  for the  Company's 12% Senior
Subordinated Notes due June 15, 2005; and

         WHEREAS,  in order to induce  the  Secured  Parties to extend the loans
evidenced  by the Notes,  the Debtor  has agreed to execute  and  deliver to the
Secured Parties this Agreement and to grant the Secured Parties, pari passu with
each other Secured Party, but subject to the liens granted to the holders of the
8%  Secured  Convertible  Notes of the  Company  due  November  1, 2006 (the "8%
Convertible  Notes") a second priority  perfected  security  interest in certain
property of such Debtor to secure the prompt payment,  performance and discharge
in full of all of the Company's obligations under the Notes.

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

         1. Certain Definitions.  As used in this Agreement, the following terms
shall  have  the  meanings  set  forth in this  Section  1.  Terms  used but not
otherwise  defined in this  Agreement  that are  defined in Article 9 of the UCC
(such as "account", "chattel paper", "commercial tort claim", "deposit account",
"document",    "equipment",    "fixtures",   "general   intangibles",   "goods",
"instruments",  "inventory",  "investment property",  "letter-of-credit rights",
"proceeds" and  "supporting  obligations")  shall have the  respective  meanings
given such terms in Article 9 of the UCC.

                  (a)  "Collateral"  means the  collateral  in which the Secured
         Parties are granted a security  interest  by this  Agreement  and which
         shall include the following  personal property of the Debtors,  whether
         presently  owned or  existing  or  hereafter  acquired  or coming  into
         existence,  wherever situated, and all additions and accessions thereto
         and all  substitutions  and  replacements  thereof,  and all  proceeds,
         products and  accounts  thereof,  including,  without  limitation,  all

<PAGE>

         proceeds from the sale or transfer of the  Collateral  and of insurance
         covering the same and of any tort claims in connection  therewith,  and
         all dividends,  interest, cash, notes,  securities,  equity interest or
         other property at any time and from time to time  acquired,  receivable
         or otherwise  distributed in respect of, or in exchange for, any or all
         of the Pledged Securities (as defined below):

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

                           (ii)  All   contract   rights   and   other   general
                  intangibles,  including,  without limitation,  all partnership
                  interests,  membership  interests,  stock or other securities,
                  rights under any of the Organizational  Documents,  agreements
                  related to the Pledged Securities,  licenses, distribution and
                  other agreements,  computer software (whether "off-the-shelf",
                  licensed  from any third party or  developed  by any  Debtor),
                  computer  software  development  rights,  leases,  franchises,
                  customer lists, quality control procedures, grants and rights,
                  goodwill,  trademarks,  service  marks,  trade  styles,  trade
                  names, patents, patent applications,  copyrights, Intellectual
                  Property, and income tax refunds;

                           (iii) All accounts,  together  with all  instruments,
                  all documents of title representing any of the foregoing,  all
                  rights in any merchandising,  goods, equipment, motor vehicles
                  and trucks which any of the same may represent, and all right,
                  title,  security and guaranties  with respect to each account,
                  including any right of stoppage in transit;

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

                           (v)    All commercial tort claims;

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

                           (vii)  All investment property;

                           (viii) All supporting obligations; and

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

                                       2
<PAGE>

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

                           Without limiting the generality of the foregoing, the
                  "Collateral" shall include all investment property and general
                  intangibles respecting ownership and/or other equity interests
                  in each Subsidiary,  including, without limitation, the shares
                  of  capital  stock and the other  equity  interests  listed on
                  Schedule  H hereto (as the same may be  modified  from time to
                  time  pursuant to the terms  hereof),  and any other shares of
                  capital  stock  and/or  other  equity  interests  of any other
                  direct or indirect  subsidiary  of any Debtor  obtained in the
                  future, and, in each case, all certificates  representing such
                  shares and/or equity  interests and, in each case, all rights,
                  options,  warrants,  stock,  other  securities  and/or  equity
                  interests  that  may  hereafter  be  received,  receivable  or
                  distributed  in  respect  of,  or  exchanged  for,  any of the
                  foregoing  (all of the foregoing  being  referred to herein as
                  the "Pledged  Securities")  and all rights arising under or in
                  connection  with the Pledged  Securities,  including,  but not
                  limited to, all dividends, interest and cash.

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

                  (b) "Intellectual  Property" means the collective reference to
         all  rights,   priorities  and  privileges   relating  to  intellectual
         property, whether arising under United States, multinational or foreign
         laws or otherwise,  including,  without limitation,  (i) all copyrights
         arising under the laws of the United  States,  any other country or any
         political  subdivision thereof,  whether registered or unregistered and
         whether  published or  unpublished,  all  registrations  and recordings
         thereof,  and all  applications  in  connection  therewith,  including,
         without limitation,  all registrations,  recordings and applications in
         the United  States  Copyright  Office,  (ii) all letters  patent of the
         United States, any other country or any political  subdivision thereof,
         all reissues and extensions  thereof,  and all applications for letters
         patent of the United  States or any other  country  and all  divisions,
         continuations and continuations-in-part  thereof, (iii) all trademarks,
         trade names, corporate names, company names, business names, fictitious
         business names,  trade dress,  service marks,  logos,  domain names and
         other  source or  business  identifiers,  and all  goodwill  associated
         therewith,   now  existing  or  hereafter  adopted  or  acquired,   all

                                       3
<PAGE>

         registrations   and  recordings   thereof,   and  all  applications  in
         connection therewith, whether in the United States Patent and Trademark
         Office or in any  similar  office or agency of the United  States,  any
         State  thereof  or  any  other  country  or any  political  subdivision
         thereof, or otherwise,  and all common law rights related thereto, (iv)
         all trade  secrets  arising  under the laws of the United  States,  any
         other country or any political  subdivision  thereof, (v) all rights to
         obtain any reissues,  renewals or extensions of the foregoing, (vi) all
         licenses for any of the  foregoing,  and (vii) all causes of action for
         infringement of the foregoing.

                  (c)  "Majority  in  Interest"  shall  mean,  at  any  time  of
         determination,  the  majority  in interest  (based on  then-outstanding
         principal  amounts of Notes at the time of such  determination)  of the
         Secured Parties.

(d)      "Necessary  Endorsement"  shall mean undated  stock powers  endorsed in
         blank or other proper  instruments of assignment duly executed and such
         other  instruments  or documents as the Secured  Parties may reasonably
         request.

                  (e) "Obligations" means all of the Debtors'  obligations under
         this  Agreement,  the Notes and any other  instruments,  agreements  or
         other  documents  executed and/or  delivered in connection  herewith or
         therewith,  in each case, whether now or hereafter existing,  voluntary
         or involuntary, direct or indirect, absolute or contingent,  liquidated
         or unliquidated,  whether or not jointly owed with others,  and whether
         or not from time to time decreased or extinguished and later increased,
         created or  incurred,  and all or any  portion of such  obligations  or
         liabilities  that  are  paid,  to the  extent  all or any  part of such
         payment is avoided or recovered  directly or indirectly from any of the
         Secured  Parties as a preference,  fraudulent  transfer or otherwise as
         such obligations may be amended,  supplemented,  converted, extended or
         modified  from time to time.  Without  limiting the  generality  of the
         foregoing,  the term "Obligations"  shall include,  without limitation:
         (i)  principal  of, and  interest  on the Notes and the loans  extended
         pursuant  thereto;  (ii) any and all other  fees,  indemnities,  costs,
         obligations  and  liabilities of the Debtors from time to time under or
         in connection with this Agreement, the Notes and any other instruments,
         agreements or other documents  executed and/or  delivered in connection
         herewith or therewith; and (iii) all amounts (including but not limited
         to  post-petition  interest) in respect of the foregoing  that would be
         payable but for the fact that the  obligations  to pay such amounts are
         unenforceable  or not  allowable  due to the existence of a bankruptcy,
         reorganization or similar proceeding involving any Debtor.

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

                                       4
<PAGE>

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

         2. Grant of  Perfected  Security  Interest.  As an  inducement  for the
Secured  Parties to extend the loans as evidenced by 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 Debtor hereby unconditionally and irrevocably
pledges,  grants  and  hypothecates  to the  Secured  Parties a  continuing  and
perfected  security  interest  in and to, a lien  upon  and a right  of  set-off
against all of their respective right, title and interest of whatsoever kind and
nature in and to, the Collateral, all subject to the first priority lien granted
as security for the 8% Convertible Notes (the "Security Interest").

         3. Delivery of Certain Collateral.  Subject to the liens granted to the
secured parties in connection with the 8% Convertible Notes (and action taken by
the Debtor to perfect such liens),  contemporaneously  or prior to the execution
of this  Agreement,  the Debtor  shall  deliver or cause to be  delivered to the
Secured Parties (a) any and all certificates and other instruments  representing
or evidencing the Pledged Securities, and (b) any and all certificates and other
instruments or documents representing any of the other Collateral, in each case,
together with all  Necessary  Endorsements.  The Debtors are,  contemporaneously
with the execution hereof, delivering to the Secured Parties, or have previously
delivered to the Secured Parties, a true and correct copy of each Organizational
Document governing any of the Pledged Securities.

         4.  Representations,   Warranties,  Covenants  and  Agreements  of  the
Debtors.  The Debtor  represents and warrants to, and covenants and agrees with,
the Secured Parties as follows:

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

                                       5
<PAGE>

         applicable bankruptcy,  insolvency,  reorganization and similar laws of
         general application relating to or affecting the rights and remedies of
         creditors and by general principles of equity.

                   (b) The Debtors  have no place of  business or offices  where
         their  respective  books of account  and  records  are kept (other than
         temporarily at the offices of its attorneys or  accountants)  or places
         where Collateral is stored or located,  except as set forth on Schedule
         A attached hereto.  Except as specifically set forth on Schedule A, the
         Debtor is the record owner of the real property  where such  Collateral
         is  located,  and there exist no  mortgages  or other liens on any such
         real  property.  Except  as  disclosed  on  Schedule  A,  none  of such
         Collateral is in the possession of any consignee, bailee, warehouseman,
         agent or processor.

                  (c) Except as set forth on  Schedule B  attached  hereto,  the
         Debtors are the sole owner of the Collateral  (except for non-exclusive
         licenses  granted by any Debtor in the  ordinary  course of  business),
         free and clear of any liens, security interests,  encumbrances,  rights
         or claims,  and are fully  authorized  to grant the Security  Interest.
         Other than those  filings made in  connection  with the 8%  Convertible
         Notes,  there  is  not  on  file  in  any  governmental  or  regulatory
         authority, agency or recording office an effective financing statement,
         security  agreement,  license or  transfer  or any notice of any of the
         foregoing  (other than those that will be filed in favor of the Secured
         Parties  pursuant to this  Agreement)  covering or affecting any of the
         Collateral.  So long as this Agreement shall be in effect,  the Debtors
         shall not execute and shall not  knowingly  permit to be on file (other
         than those on file to evidence the liens granted in  connection  the 8%
         Convertible  Notes) 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  Parties  pursuant to the terms of
         this Agreement).

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

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

                                       6
<PAGE>

         recorded  and other  steps  have been  taken to  perfect  the  Security
         Interest to create in favor of the Secured  Parties a valid,  perfected
         and continuing perfected second priority lien in the Collateral.

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

                   (g) The Debtor hereby authorizes the Secured Parties,  or any
         of them, to file one or more financing  statements  under the UCC, with
         respect to the Security  Interest  with the proper filing and recording
         agencies in any jurisdiction deemed proper by them.

                   (h) The execution, delivery and performance of this Agreement
         by the  Debtors  does  not (i)  violate  any of the  provisions  of any
         Organizational  Documents of any Debtor or any judgment,  decree, order
         or  award  of  any  court,  governmental  body  or  arbitrator  or  any
         applicable  law,  rule or  regulation  applicable to any Debtor or (ii)
         conflict with, or constitute a default (or an event that with notice or
         lapse of time or both would become a default)  under, or give to others
         any rights of  termination,  amendment,  acceleration  or  cancellation
         (with or  without  notice,  lapse of time or both) of,  any  agreement,
         credit facility, debt or other instrument (evidencing any Debtor's debt
         or otherwise) or other  understanding to which any Debtor is a party or
         by which any property or asset of any Debtor is bound or  affected.  No
         consent (including,  without limitation, from stockholders or creditors
         of any Debtor) is required for any Debtor to enter into and perform its
         obligations  hereunder,  other than  consents  that have  already  been
         received.

                                       7
<PAGE>

                   (i) The capital  stock and other equity  interests  listed on
         Schedule  H  hereto  represent  all  capital  stock  and  other  equity
         interests  owned,  directly or indirectly,  by the Company.  All of the
         Pledged  Securities are validly issued,  fully paid and  nonassessable,
         and the  Company  is the  legal  and  beneficial  owner of the  Pledged
         Securities,  free and clear of any  lien,  security  interest  or other
         encumbrance except for the security interests created by this Agreement
         and the prior security  interest  related to the 8%  Convertible  Notes
         which is senior to the security interest created hereunder.

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

                  (k) The  Debtor  shall at all  times  maintain  the  liens and
         Security  Interest provided for hereunder as valid and perfected second
         priority liens and security interests in the Collateral in favor of the
         Secured  Parties  until  this  Agreement  and  the  Security   Interest
         hereunder shall be terminated pursuant to Section 11 hereof. The Debtor
         hereby  agrees to defend  the same  against  the  claims of any and all
         persons  and  entities.  The Debtor  shall  safeguard  and  protect all
         Collateral  for the account of the Secured  Parties.  At the request of
         the  Secured  Parties,  the Debtor will sign and deliver to the Secured
         Parties  at any  time or  from  time  to  time  one or  more  financing
         statements  pursuant to the UCC in form reasonably  satisfactory to the
         Secured  Parties and will pay the cost of filing the same in all public
         offices  wherever filing is, or is deemed by the Secured Parties to be,
         necessary or desirable  to effect the rights and  obligations  provided
         for herein.  Without  limiting the  generality  of the  foregoing,  the
         Debtor  shall  pay all  fees,  taxes and  other  amounts  necessary  to
         maintain the Collateral and the Security  Interest  hereunder,  and the
         Debtor  shall  obtain and furnish to the Secured  Parties  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.

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

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

                                       8
<PAGE>

                  (n) The  Debtor  shall  maintain  with  financially  sound and
         reputable  insurers,  insurance with respect to the Collateral  against
         loss or  damage of the kinds  and in the  amounts  customarily  insured
         against by entities of established reputation having similar properties
         similarly situated and in such amounts as are customarily carried under
         similar  circumstances  by other  such  entities  and  otherwise  as is
         prudent for  entities  engaged in similar  businesses  but in any event
         sufficient to cover the full replacement cost thereof. The Debtor shall
         cause each insurance  policy issued in connection  herewith to provide,
         and the insurer  issuing such policy to certify to the Secured  Parties
         that (a) the  Secured  Parties  will be named as lender loss payees and
         additional  insured  under  each  such  insurance  policy;  (b) if such
         insurance  be proposed to be cancelled  or  materially  changed for any
         reason  whatsoever,  such  insurer  will  promptly  notify the  Secured
         Parties and such  cancellation  or change  shall not be effective as to
         the Secured  Parties for at least thirty (30) days after receipt by the
         Secured Parties of such notice,  unless the effect of such change is to
         extend or  increase  coverage  under the  policy;  and (c) the  Secured
         Parties  will have the right (but no  obligation)  at its  election  to
         remedy any default in the payment of premiums  within  thirty (30) days
         of notice from the insurer of such default.  If no Event of Default (as
         defined in the Debenture) exists and if the proceeds arising out of any
         claim or series of related claims do not exceed $50,000,  loss payments
         in each instance will be applied by the applicable Debtor to the repair
         and/or  replacement  of  property  with  respect  to which the loss was
         incurred to the extent  reasonably  feasible,  and any loss payments or
         the balance thereof remaining,  to the extent not so applied,  shall be
         payable to the  applicable  Debtor,  provided,  however,  that payments
         received  by any  Debtor  after  an  Event  of  Default  occurs  and is
         continuing  or in excess of  $50,000  for any  occurrence  or series of
         related  occurrences  shall  be paid to the  Secured  Parties  and,  if
         received  by such  Debtor,  shall be held in trust for and  immediately
         paid over to the Secured Parties unless  otherwise  directed in writing
         by the  Secured  Parties.  Copies  of  such  policies  or  the  related
         certificates,  in each case,  naming the Secured Parties as lender loss
         payee and additional  insured shall be delivered to the Secured Parties
         at least  annually  and at the  time any new  policy  of  insurance  is
         issued.

                  (o) The  Debtor  shall,  within  ten  (10)  days of  obtaining
         knowledge thereof,  advise the Secured Parties 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  Parties'  security
         interest therein.

                   (p) The Debtor  shall  promptly  execute  and  deliver to the
         Secured Parties such further deeds,  mortgages,  assignments,  security
         agreements,  financing  statements  or  other  instruments,  documents,
         certificates and assurances and take such further action as the Secured
         Parties 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,  if  applicable,  the
         execution and delivery of a separate security agreement with respect to

                                       9
<PAGE>

         the Debtor's  Intellectual  Property  ("Intellectual  Property Security
         Agreement")  in which the Secured  Parties have been granted a security
         interest  hereunder,  substantially in a form acceptable to the Secured
         Parties, which Intellectual Property Security Agreement,  other than as
         stated  therein,  shall be subject  to all of the terms and  conditions
         hereof.

                  (q) The Debtor  shall  permit the  Secured  Parties  and their
         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 a Secured Party from time to time.

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

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

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

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

                  (v) No Debtor  will  change  its name,  type of  organization,
         jurisdiction of organization,  organizational identification number (if
         it has one), legal or corporate structure,  or identity, or add any new
         fictitious  name  unless it  provides  at least 30 days  prior  written
         notice to the  Secured  Parties of such change and, at the time of such
         written notification,  such Debtor provides any financing statements or
         fixture  filings  necessary  to  perfect  and  continue  perfected  the
         perfected Security Interest granted and evidenced by this Agreement.

                  (w) No Debtor may consign any of its  Inventory or sell any of
         its Inventory on bill and hold,  sale or return,  sale on approval,  or
         other  conditional  terms of sale  without the consent of a Majority in
         Interest which shall not be unreasonably withheld, except to the extent
         such  consignment or sale does not exceed 15% of the total value of all
         of the Company's finished goods in Inventory.

                  (x) No Debtor may relocate its chief executive office to a new
         location without providing 30 days prior written  notification  thereof
         to the  Secured  Parties  and so long as,  at the time of such  written
         notification,  such Debtor provides any financing statements or fixture

                                       10
<PAGE>

         filings  necessary  to perfect and  continue  perfected  the  perfected
         security Interest granted and evidenced by this Agreement.

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

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

                  (aa)  Subject to the liens  granted to the secured  parties in
         connection  with the 8%  Convertible  Notes  (and  action  taken by the
         Debtor to perfect such  liens),  at any time and from time to time that
         any  Collateral  consists of  instruments,  certificated  securities or
         other items that require or permit  possession  by the secured party to
         perfect the security  interest  created hereby,  the applicable  Debtor
         shall deliver such Collateral to the Secured Parties.

                  (bb)  Subject to the liens  granted to the secured  parties in
         connection  with the 8%  Convertible  Notes  (and  action  taken by the
         Debtor to perfect such liens),  the Debtor,  in its capacity as issuer,
         hereby agrees to comply with any and all orders and instructions of the
         Secured  Parties  regarding the Pledged  Interests  consistent with the
         terms of this  Agreement  without the further  consent of any Debtor as
         contemplated  by Section 8-106 (or any  successor  section) of the UCC.
         Further,  the  Debtor  agrees  that it shall not  enter  into a similar
         agreement  (or one that would  confer  "control"  within the meaning of
         Article 8 of the UCC) with any other person or entity.

                  (cc)  Subject to the liens  granted to the secured  parties in
         connection  with the 8%  Convertible  Notes  (and  action  taken by the
         Debtor to perfect  such  liens),  the Debtor  shall cause all  tangible
         chattel  paper  constituting  Collateral to be delivered to the Secured
         Parties,  or, if such  delivery  is not  possible,  then to cause  such
         tangible chattel paper to contain a legend noting that it is subject to
         the security interest created by this Agreement. To the extent that any
         Collateral  consists of electronic chattel paper, the applicable Debtor
         shall cause the  underlying  chattel  paper to be  "marked"  within the
         meaning of Section 9-105 of the UCC (or successor section thereto).

                  (dd) If there is any  investment  property or deposit  account
         included as  Collateral  that can be perfected by "control"  through an
         account control  agreement,  the applicable  Debtor shall cause such an
         account  control  agreement,   in  form  and  substance  in  each  case

                                       11
<PAGE>

         satisfactory to the Secured  Parties,  to be entered into and delivered
         to the Secured Parties.

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

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

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

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

                  (ii)    Intentionally Omitted.

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

                  (kk) The Debtor shall  register  the pledge of the  applicable
         Pledged Securities on the books of such Debtor. The Debtor shall notify
         each  issuer  of  Pledged  Securities  to  register  the  pledge of the
         applicable Pledged Securities in the name of the Secured Parties on the
         books of such  issuer.  Further,  except with  respect to  certificated
         securities  delivered to the Secured  Parties,  if any, the  applicable
         Debtor shall deliver to Secured  Parties an  acknowledgement  of pledge
         (which,  where  appropriate,  shall comply with the requirements of the
         relevant UCC with respect to perfection by registration)  signed by the
         issuer of the  applicable  Pledged  Securities,  which  acknowledgement
         shall confirm that:  (a) it has  registered the pledge on its books and

                                       12
<PAGE>

         records;  and (b) at any time  directed by Secured  Parties  during the
         continuation of an Event of Default, subject to the action taken by the
         secured  parties in  connection  with the 8%  Convertible  Notes,  such
         issuer will  transfer the record  ownership of such Pledged  Securities
         into the name of any designee of Secured Parties,  will take such steps
         as may be  necessary to effect the  transfer,  and will comply with all
         other instructions of Secured Parties regarding such Pledged Securities
         without the further consent of the applicable Debtor.

                  (ll) In the  event  that,  upon an  occurrence  of an Event of
         Default and subject to the action of the secured  parties in connection
         with the 8% Convertible  Notes,  the Secured  Parties shall sell all or
         any of the  Pledged  Securities  to another  party or  parties  (herein
         called the  "Transferee") or shall purchase or retain all or any of the
         Pledged  Securities,  the Debtor shall, to the extent  applicable:  (i)
         deliver to the Secured Parties or the  Transferee,  as the case may be,
         the articles of incorporation,  bylaws, minute books, stock certificate
         books,   corporate  seals,  deeds,  leases,   indentures,   agreements,
         evidences of indebtedness,  books of account, financial records and all
         other  Organizational  Documents  and  records  of the Debtor and their
         direct and indirect  subsidiaries;  (ii) use its best efforts to obtain
         resignations  of the persons then serving as officers and  directors of
         the Debtor and their direct and indirect subsidiaries, if so requested;
         and  (iii)  use its best  efforts  to  obtain  any  approvals  that are
         required by any  governmental or regulatory body in order to permit the
         sale of the Pledged  Securities  to the  Transferee  or the purchase or
         retention of the Pledged  Securities  by the Secured  Parties and allow
         the  Transferee or the Secured  Parties to continue the business of the
         Debtor and their direct and indirect subsidiaries.

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

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

                  (oo)  Schedule F  attached  hereto  lists all of the  patents,
         patent applications,  trademarks,  trademark  applications,  registered
         copyrights, and domain names owned by the Debtor as of the date hereof.
         Schedule F lists all  material  licenses in favor of any Debtor for the

                                       13
<PAGE>

         use of any patents,  trademarks,  copyrights and domain names as of the
         date hereof.  All material  patents and  trademarks  of the Debtor have
         been duly recorded at the United States Patent and Trademark Office and
         all material  copyrights  of the Debtor have been duly  recorded at the
         United States Copyright Office.

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

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

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

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

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

                  (c) The failure by any Debtor to observe or perform any of its
         obligations  hereunder for five (5) days after  delivery to such Debtor
         of notice of such  failure  by or on behalf of a Secured  Party  unless
         such  default is capable of cure but cannot be cured  within  such time
         frame and such  Debtor is using  best  efforts to cure same in a timely
         fashion; or

                  (d) If any provision of this  Agreement  shall at any time for
         any  reason  be  declared  to be null  and  void,  or the  validity  or
         enforceability   thereof  shall  be  contested  by  any  Debtor,  or  a
         proceeding  shall be  commenced by any Debtor,  or by any  governmental
         authority having jurisdiction over any Debtor, seeking to establish the
         invalidity or  unenforceability  thereof, or any Debtor shall deny that
         any Debtor has any  liability  or  obligation  purported  to be created
         under this Agreement.

                                       14
<PAGE>

         7. Duty To Hold In Trust.

                  (a) Upon the  occurrence  of any Event of  Default  and at any
         time thereafter, the Debtor shall, upon receipt of any revenue, income,
         dividend,  interest  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
         Parties  and shall  forthwith  endorse  and  transfer  any such sums or
         instruments, or both, to the Secured Parties, pro-rata in proportion to
         their initial purchases of Notes for application to the satisfaction of
         the Obligations (and if any Debenture is not  outstanding,  pro-rata in
         proportion to the initial purchases of the remaining Notes).

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

                  (c) Anything to the contrary  notwithstanding,  all rights and
         powers of the Secured  Parties  hereunder are subject to the rights and
         powers of the secured  parties  pursuant to the  documents  executed in
         connection with the 8% Convertible Notes.

         8. Rights and Remedies Upon Default.

                  (a) Upon the  occurrence  of any Event of  Default  and at any
         time  thereafter,   the  Secured  Parties,  acting  through  any  agent
         appointed  by them for such  purpose,  shall have the right to exercise
         all of the remedies  conferred  hereunder and under the Notes,  and the
         Secured  Parties  shall have all the rights and  remedies  of a secured
         party under the UCC. Without limitation, the Secured Parties shall have
         the  following  rights and powers,  subject to the rights and powers of
         the secured  parties  pursuant to the documents  executed in connection
         with the 8% Convertible Notes:

                           (i) The Secured  Parties 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

                                       15
<PAGE>

                  the Collateral,  or any part thereof,  is or may be placed and
                  remove the same,  and the Debtor shall assemble the Collateral
                  and make it available  to the Secured  Parties at places which
                  the Secured Parties shall reasonably  select,  whether at such
                  Debtor's  premises or  elsewhere,  and make  available  to the
                  Secured Parties, without rent, all of such Debtor's respective
                  premises and facilities for the purpose of the Secured Parties
                  taking  possession  of,  removing or putting the Collateral in
                  saleable or disposable form.

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

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

                           (iv) The  Secured  Parties  shall have the right (but
                  not the  obligation)  to notify any  account  debtors  and any
                  obligors  under  instruments  or  accounts  to  make  payments

                                       16
<PAGE>

                  directly  to the Secured  Parties and to enforce the  Debtor's
                  rights against such account debtors and obligors.

                           (v) The Secured  Parties  may (but are not  obligated
                  to) direct any financial  intermediary  or any other person or
                  entity holding any investment property to transfer the same to
                  the Secured Parties or their designee.

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

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

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

         9.  Applications of Proceeds.  Subject to the actions and claims of the
secured  parties  pursuant to the documents  executed in connection  with the 8%
Convertible  Notes, 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 Parties in enforcing their rights hereunder and
in connection with collecting, storing and disposing of the Collateral, and then
to  satisfaction of the Obligations pro rata among the Secured Parties (based on
then-outstanding   principal   amounts   of  Notes  at  the  time  of  any  such
determination),  and to the payment of any other amounts  required by applicable

                                       17
<PAGE>

law,  after which the Secured  Parties  shall pay to the  applicable  Debtor any
surplus  proceeds.  If,  upon the  sale,  license  or other  disposition  of the
Collateral,  the proceeds  thereof are  insufficient to pay all amounts to which
the  Secured  Parties are  legally  entitled,  the Debtor will be liable for the
deficiency,  together with interest thereon, at the rate of 20% per annum or the
lesser  amount  permitted  by  applicable  law  (the  "Default  Rate"),  and the
reasonable fees of any attorneys employed by the Secured Parties to collect such
deficiency.  To the extent  permitted by  applicable  law, the Debtor waives all
claims,  damages and demands  against  the  Secured  Parties  arising out of the
repossession, removal, retention or sale of the Collateral, unless due solely to
the gross negligence or willful  misconduct of the Secured Parties as determined
by a final  judgment  (not  subject to further  appeal) of a court of  competent
jurisdiction.

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

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

         12.  Responsibility for Collateral.  The Debtor assumes all liabilities
and responsibility in connection with all Collateral,  and the Obligations shall
in no way be affected or diminished by reason of the loss,  destruction,  damage
or theft of any of the Collateral or its unavailability for any reason.  Without

                                       18
<PAGE>

limiting the generality of the foregoing,  (a) no Secured Party (i) has any duty
(either  before or after an Event of  Default) to collect any amounts in respect
of the Collateral or to preserve any rights relating to the Collateral,  or (ii)
has any obligation to clean-up or otherwise prepare the Collateral for sale, and
(b) the Debtor  shall  remain  obligated  and  liable  under  each  contract  or
agreement  included in the Collateral to be observed or performed by such Debtor
thereunder.  No Secured Party shall have any  obligation or liability  under any
such contract or agreement by reason of or arising out of this  Agreement or the
receipt by any Secured Party of any payment  relating to any of the  Collateral,
nor  any  Secured  Party  be  obligated  in any  manner  to  perform  any of the
obligations  of any Debtor under or pursuant to any such  contract or agreement,
to make inquiry as to the nature or sufficiency  of any payment  received by any
Secured  Party in  respect of the  Collateral  or as to the  sufficiency  of any
performance  by any party under any such  contract or  agreement,  to present or
file any claim,  to take any action to enforce any performance or to collect the
payment of any amounts  which may have been  assigned to any Secured Party or to
which any Secured Party may be entitled at any time or times.

         13. Security Interest  Absolute.  All rights of the Secured Parties and
all obligations of the Debtor  hereunder,  shall be absolute and  unconditional,
irrespective of: (a) any lack of validity or  enforceability  of this Agreement,
the Notes 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 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 Parties to obtain, adjust, settle and
cancel in its sole discretion any insurance claims or matters made or arising in
connection  with the  Collateral;  or (e) any  other  circumstance  which  might
otherwise  constitute any legal or equitable defense available to a Debtor, or a
discharge of all or any part of the Security Interest granted hereby.  Until the
Obligations  shall  have  been paid and  performed  in full,  the  rights of the
Secured  Parties  shall  continue  even if the  Obligations  are  barred for any
reason, including, without limitation, the running of the statute of limitations
or bankruptcy.  The Debtor  expressly  waives  presentment,  protest,  notice of
protest,  demand, notice of nonpayment and demand for performance.  In the event
that at any time any transfer of any  Collateral or any payment  received by the
Secured Parties hereunder shall be deemed by final order of a court of competent
jurisdiction to have been a voidable  preference or fraudulent  conveyance under
the bankruptcy or insolvency laws of the United States, or shall be deemed to be
otherwise  due to any party other than the Secured  Parties,  then,  in any such
event,  the Debtor's  obligations  hereunder shall survive  cancellation of this
Agreement, and shall not be discharged or satisfied by any prior payment thereof
and/or  cancellation  of this  Agreement,  but shall  remain a valid and binding
obligation  enforceable in accordance with the terms and provisions  hereof. The
Debtor  waives all right to require the Secured  Parties to proceed  against any
other person or entity or to apply any Collateral  which the Secured Parties may

                                       19
<PAGE>

hold at any time,  or to  marshal  assets,  or to pursue any other  remedy.  The
Debtor waives any defense arising by reason of the application of the statute of
limitations to any obligation secured hereby.

         14. Term of Agreement.  This Agreement and the Security  Interest shall
terminate  on the  date  on  which  all  payments  under  the  Notes  have  been
indefeasibly  paid  in  full  and  all  other  Obligations  have  been  paid  or
discharged;  provided,  however, that all indemnities of the Debtor contained in
this Agreement  shall survive and remain  operative and in full force and effect
regardless of the termination of this Agreement.

         15. Power of Attorney; Further Assurances.

                   (a) The  Debtor  authorizes  the  Secured  Parties,  and does
         hereby  make,  constitute  and appoint  the  Secured  Parties and their
         respective officers,  agents,  successors or assigns with full power of
         substitution,  as such Debtor's true and lawful attorney-in-fact,  with
         power, in the name of the various  Secured Parties or such Debtor,  to,
         after the occurrence and during the continuance of an Event of Default,
         (i) endorse any note, checks, drafts, money orders or other instruments
         of  payment  (including  payments  payable  under or in  respect of any
         policy of  insurance) in respect of the  Collateral  that may come into
         possession  of the  Secured  Parties;  (ii) to  sign  and  endorse  any
         financing  statement  pursuant  to the UCC or any  invoice,  freight or
         express bill,  bill of lading,  storage or warehouse  receipts,  drafts
         against debtors,  assignments,  verifications and notices in connection
         with accounts, and other documents relating to the Collateral; (iii) to
         pay or discharge taxes, liens, security interests or other encumbrances
         at any time levied or placed on or threatened  against the  Collateral;
         (iv) to demand,  collect,  receipt for, compromise,  settle and sue for
         monies  due  in  respect  of  the  Collateral;   (v)  to  transfer  any
         Intellectual  Property or provide licenses  respecting any Intellectual
         Property; and (vi) generally, at the option of the Secured Parties, and
         at the expense of the  Debtor,  at any time,  or from time to time,  to
         execute and deliver any and all documents and instruments and to do all
         acts and things which the Secured  Parties  deem  necessary to protect,
         preserve and realize  upon the  Collateral  and the  Security  Interest
         granted therein in order to effect the intent of this Agreement and the
         Notes all as fully and effectually as the Debtor might or could do; and
         the Debtor hereby  ratifies all that said attorney shall lawfully do or
         cause to be done by virtue  hereof.  This power of  attorney is coupled
         with  an  interest  and  shall  be  irrevocable  for  the  term of this
         Agreement  and  thereafter as long as any of the  Obligations  shall be
         outstanding.  The designation set forth herein shall be deemed to amend
         and  supersede  any  inconsistent   provision  in  the   Organizational
         Documents  or other  documents  or  agreements  to which any  Debtor is
         subject  or to which  any  Debtor  is a  party.  Without  limiting  the
         generality  of the  foregoing,  after the  occurrence  and  during  the
         continuance of an Event of Default,  each Secured Party is specifically
         authorized to execute and file any  applications  for or instruments of
         transfer and assignment of any patents, trademarks, copyrights or other
         Intellectual  Property  with the United  States  Patent  and  Trademark
         Office and the United States Copyright Office.

                                       20
<PAGE>

                   (b) On a  continuing  basis,  the Debtor will make,  execute,
         acknowledge,  deliver,  file and  record,  as the case may be, with the
         proper filing and recording  agencies in any  jurisdiction,  including,
         without limitation,  the jurisdictions indicated on Schedule C attached
         hereto,  all  such  instruments,  and  take  all  such  action  as  may
         reasonably be deemed necessary or advisable, or as reasonably requested
         by the  Secured  Parties,  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  Parties the
         grant  or  perfection  of a  perfected  security  interest  in all  the
         Collateral under the UCC.

                  (c) The Debtor hereby irrevocably appoints the Secured Parties
         as such Debtor's attorney-in-fact, with full authority in the place and
         instead  of such  Debtor and in the name of such  Debtor,  from time to
         time in the  Secured  Parties'  discretion,  to take any  action and to
         execute any instrument  which the Secured Parties may deem necessary or
         advisable to accomplish the purposes of this  Agreement,  including the
         filing,   in  its  sole  discretion,   of  one  or  more  financing  or
         continuation statements and amendments thereto,  relative to any of the
         Collateral without the signature of such Debtor where permitted by law,
         which  financing  statements may (but need not) describe the Collateral
         as "all assets" or "all personal property" or words of like import, and
         ratifies all such actions taken by the Secured  Parties.  This power of
         attorney is coupled with an interest and shall be  irrevocable  for the
         term of this Agreement and thereafter as long as any of the Obligations
         shall be outstanding.

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

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

         18. Intentionally Omitted

         19. Miscellaneous.

                  (a) No course of dealing  between  the Debtor and the  Secured
         Parties, nor any failure to exercise,  nor any delay in exercising,  on
         the  part  of the  Secured  Parties,  any  right,  power  or  privilege
         hereunder  or under the 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.

                                       21
<PAGE>

                  (b) All of the rights and remedies of the Secured Parties 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 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)  All  questions  concerning  the  construction,  validity,
         enforcement and  interpretation  of this Agreement shall be governed by
         and construed and enforced in accordance  with the internal laws of the
         State of New York, without regard to the principles of conflicts of law
         thereof.  The  Debtor  agrees  that  all  proceedings   concerning  the
         interpretations,   enforcement   and   defense   of  the   transactions
         contemplated by this Agreement and the Notes (whether brought against a
         party  hereto  or  its  respective  affiliates,   directors,  officers,
         shareholders,   partners,   members,  employees  or  agents)  shall  be
         commenced  exclusively  in the state and federal  courts sitting in the
         City of New York,  Borough of Manhattan.  The Debtor hereby irrevocably
         submits to the exclusive  jurisdiction  of the state and federal courts

                                       22
<PAGE>

         sitting  in  the  City  of New  York,  Borough  of  Manhattan  for  the
         adjudication of any dispute hereunder or in connection herewith or with
         any transaction  contemplated  hereby or discussed  herein,  and hereby
         irrevocably  waives,  and agrees not to assert in any  proceeding,  any
         claim that it is not personally subject to the jurisdiction of any such
         court,  that such  proceeding  is improper.  Each party  hereto  hereby
         irrevocably  waives personal service of process and consents to process
         being  served in any such  proceeding  by  mailing a copy  thereof  via
         registered or certified  mail or overnight  delivery  (with evidence of
         delivery)  to such party at the  address  in effect  for  notices to it
         under this Agreement and agrees that such service shall constitute good
         and sufficient service of process and notice thereof. Nothing contained
         herein  shall be deemed to limit in any way any right to serve  process
         in any manner  permitted by law. Each party hereto  hereby  irrevocably
         waives,  to the fullest extent permitted by applicable law, any and all
         right  to  trial  by jury in any  legal  proceeding  arising  out of or
         relating to this Agreement or the transactions  contemplated hereby. If
         any party shall commence a proceeding to enforce any provisions of this
         Agreement,  then  the  prevailing  party  in such  proceeding  shall be
         reimbursed by the other party for its  reasonable  attorney's  fees and
         other costs and expenses incurred with the  investigation,  preparation
         and prosecution of such proceeding.

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

                  (j) Intentionally Omitted.

                  (k) The Debtor shall  indemnify,  reimburse  and hold harmless
         the  Secured   Parties   and  their   respective   partners,   members,
         shareholders,  officers, directors, employees and agents (collectively,
         "Indemnitees")   from  and  against   any  and  all   losses,   claims,
         liabilities, damages, penalties, suits, costs and expenses, of any kind
         or nature,  (including fees relating to the cost of  investigating  and
         defending  any of the  foregoing)  imposed on,  incurred by or asserted
         against  such  Indemnitee  in any way  related  to or  arising  from or
         alleged to arise from this Agreement or the Collateral, except any such
         losses,  claims,  liabilities,  damages,  penalties,  suits,  costs and
         expenses which result from the gross  negligence or willful  misconduct
         of the Indemnitee as determined by a final, nonappealable decision of a
         court of competent jurisdiction.  This indemnification  provision is in
         addition  to,  and not in  limitation  of,  any  other  indemnification

                                       23
<PAGE>

         provision in the Notes, the Purchase Agreement (as such term is defined
         in the  Notes) or any other  agreement,  instrument  or other  document
         executed or delivered in connection herewith or therewith.

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

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

                            [SIGNATURE PAGES FOLLOW]

                                       24
<PAGE>

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

KNOBIAS, INC.

/s/ E. KEY RAMSEY
-------------------------
E. Key Ramsey, President

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       25
<PAGE>

                    [SIGNATURE PAGE OF HOLDERS TO KNOBIAS SA]

Name of Investing Entity: DCOFI Master LDC
                          ------------------------------------------------------
Signature of Authorized Signatory of Investing entity: /s/ JEFFREY M. HAAS
                                                       -------------------------
Name of Authorized Signatory: Jeffrey M. Haas
                              --------------------------------------------------
Title of Authorized Signatory: Senior Vice-President
                               -------------------------------------------------

                                       26

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