Document:

Exhibit 10.1
                                                         Joint Venture Agreement

                             JOINT VENTURE AGREEMENT

      THIS JOINT VENTURE AGREEMENT (the "Agreement") is made as of September 30,
2005 (the "Effective Date") by and between SOLIDUS NETWORKS, INC., dba
PayByTouch Solutions, a Delaware corporation ("PBT"), and WINWIN GAMING, INC., a
Delaware corporation ("Winwin").

                                    RECITALS

      A. The parties desire to establish a framework for cooperation through
joint marketing and other efforts in order to gain mutual benefit by taking
advantage of the relationships and synergies between their respective
businesses.

      B. To provide Winwin with additional resources to conduct its business
while the parties negotiate the terms of a potential further PBT investment in
Winwin, PBT is willing to loan funds to Winwin, subject to the conditions
specified herein.

                                    AGREEMENT

      In consideration of the foregoing, and the representations, warranties,
covenants and conditions set forth below, Winwin and PBT, intending to be
legally bound, hereby agree as follows:

1. AMOUNT AND TERMS OF THE LOAN. Subject to the terms of this Agreement, PBT
AGREES to lend to Winwin at the Closing (as hereinafter defined) the sum of one
million dollars ($1,000,000) (the "Loan Amount") against the issuance and
delivery by Winwin of a Secured Promissory Note in substantially the form
attached hereto as EXHIBIT A (the "Note") and the execution and delivery of a
Security Agreement substantially in the form attached hereto as Exhibit B (the
"Security Agreement") and the UCC-1 Financing Statement and other documents
required thereunder (the "Perfection Documents").

2. THE CLOSING.

      2.1 Closing Date. The closing of the sale and purchase of the Note (the
"Closing") shall be held on September 30, 2005 (the "Closing Date").

      2.2 Delivery. At the Closing, the parties shall execute and deliver the
Security Agreement, PBT shall deliver a check or wire transfer funds in the
amount of the Loan Amount (less estimated expenses as provided in Section 7.6
below) to Winwin, Winwin shall issue and deliver the Note to PBT, and Winwin
shall execute the Perfection Documents and deliver them to PBT.

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3. REPRESENTATIONS AND WARRANTIES OF WINWIN.

      Winwin hereby represents to PBT as of the date of this Agreement as set
forth below.

      3.1 Organization, Good Standing and Qualification. Winwin is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware. Winwin has all requisite corporate power and authority to own
and operate its properties and assets, to execute and deliver this Agreement, to
issue and sell the Note, and to carry out the provisions of this Agreement and
to carry on its business as presently conducted. Winwin is duly qualified to do
business and is in good standing as a foreign corporation in all jurisdictions
in which the nature of its activities and of its properties (both owned and
leased) makes such qualification necessary, except for those jurisdictions in
which failure to do so would not have a material adverse effect on Winwin or its
business.

      3.2 Authorization; Binding Obligations. All corporate action on the part
of Winwin, its officers, directors and stockholders necessary for the
authorization of this Agreement and the Security Agreement, the performance of
all obligations of Winwin hereunder at the Closing and the authorization, sale,
issuance and delivery of the Note has been taken. This Agreement, the Security
Agreement and the Note constitute valid and binding obligations of Winwin
enforceable in accordance with their terms. The sale of the Note are not subject
to any preemptive rights or rights of first refusal that have not been properly
waived or complied with.

      3.3 Financial Statements. All financial statements included in Winwin's
filings with the Note and Exchange Commission since January 1, 2005 have been
prepared in accordance with generally accepted accounting principles applied on
a consistent basis throughout the periods indicated, except as disclosed
therein, and present fairly the financial condition, results of operations, cash
flows and stockholders' equity of Winwin as of the dates and for the periods
stated therein.

      3.4 Liabilities. Winwin has no material liabilities and, to the best of
its knowledge, knows of no material contingent liabilities not disclosed in the
financial statements included in its Quarterly Report on Form 10-QSB for the
quarterly period ended June 30, 2005 (the "Financial Statements"), except
current liabilities incurred in the ordinary course of business subsequent to
June 30, 2005 (the "Statement Date") which have not been, either in any
individual case or in the aggregate, materially adverse.

      3.5 Changes. Since the Statement Date, there has not been to Winwin's
knowledge:

            (a) Any change in the assets, liabilities, financial condition or
operations of Winwin from that reflected in the Financial Statements, other than
changes in the ordinary course of business, none of which individually or in the
aggregate has had a material adverse effect on such assets, liabilities,
financial condition or operations of Winwin;

            (b) Any resignation or termination of any officer, key employee or
group of employees of Winwin;

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            (c) Any material change, except in the ordinary course of business,
in the contingent obligations of Winwin by way of guaranty, endorsement,
indemnity, warranty or otherwise;

            (d) Any damage, destruction or loss, whether or not covered by
insurance, materially and adversely affecting the properties, business or
prospects or financial condition of Winwin;

            (e) Any waiver by Winwin of a valuable right or of a material debt
owed to it;

            (f) Any material change in any compensation arrangement or agreement
with any employee, officer, director or stockholder;

            (g) Any labor organization activity related to Winwin;

            (h) Any sale, assignment, or exclusive license or transfer of any
patents, trademarks, copyrights, trade secrets or other intangible assets;

            (i) Any change in any material agreement to which Winwin is a party
or by which it is bound that materially and adversely affects the business,
assets, liabilities, financial condition or operations of Winwin;

            (j) Any other event or condition of any character that, either
individually or cumulatively, has materially and adversely affected the
business, assets, liabilities, financial condition or operations of Winwin; or

            (k) Any arrangement or commitment by Winwin to do any of the acts
described in subsection (a) through (j) above.

      3.6 Title to Properties and Assets; Liens, Etc. Winwin has good and
marketable title to its properties and assets and good title to its leasehold
estates, in each case subject to no mortgage, pledge, lien, lease, encumbrance
or charge, other than (a) those resulting from taxes which have not yet become
delinquent, (b) minor liens and encumbrances that do not materially detract from
the value of the property subject thereto or materially impair the operations of
Winwin, and (c) those that have otherwise arisen in the ordinary course of
business. Winwin is in compliance with all material terms of each lease to which
it is a party or is otherwise bound.

      3.7 Intellectual Property.

            (a) Winwin owns or possesses sufficient legal rights to (i) all
trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information and other proprietary rights and processes and (ii) to Winwin's
knowledge, all patents, in each instance as necessary for its business as now
conducted and as presently proposed to be conducted, without any known
infringement of the rights of others. There are no outstanding options, licenses
or agreements of any kind relating to the foregoing proprietary rights, nor is
Winwin bound by or a party to any options, licenses or agreements of any kind
with respect to the patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, information and other proprietary rights and processes
of any other person or entity other than such licenses or agreements arising
from the purchase of "off the shelf" or standard products.

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            (b) Winwin has not received any communications alleging that Winwin
has violated or, by conducting its business as presently proposed, would violate
any of the patents, trademarks, service marks, trade names, copyrights or trade
secrets or other proprietary rights of any other person or entity.

            (c) Winwin is not aware that any of its employees is obligated under
any contract (including licenses, covenants or commitments of any nature) or
other agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would interfere with their duties to Winwin or that
would conflict with Winwin's business as proposed to be conducted. Each
employee, officer and consultant of Winwin has executed a proprietary
information and inventions agreement in the form(s) as delivered to PBT. No
employee, officer or consultant of Winwin has excluded works or inventions made
prior to his or her employment with Winwin from his or her assignment of
inventions pursuant to such employee, officer or consultant's proprietary
information and inventions agreement. Winwin does not believe it is or will be
necessary to utilize any inventions, trade secrets or proprietary information of
any of its employees made prior to their employment by Winwin, except for
inventions, trade secrets or proprietary information that have been assigned to
Winwin.

      3.8 Compliance with Other Instruments. Winwin is not in violation or
default of any term of its charter documents, each as amended, or of any
provision of any mortgage, indenture, contract, agreement, instrument or
contract to which it is party or by which it is bound or of any judgment,
decree, order or writ other than any such violation that would not have a
material adverse effect on Winwin. The execution, delivery, and performance of
and compliance with this Agreement and the Security Agreement, and the issuance
and sale of the Note pursuant hereto will not, with or without the passage of
time or giving of notice, result in any such material violation, or be in
conflict with or constitute a material default under any such document, or
result in the creation of any mortgage, pledge, lien, encumbrance or charge upon
any of the properties or assets of Winwin or the suspension, revocation,
impairment, forfeiture or nonrenewal of any permit, license, authorization or
approval applicable to Winwin, its business or operations or any of its assets
or properties. To its knowledge, Winwin has avoided every condition, and has not
performed any act, the occurrence of which would result in Winwin's loss of any
material right granted under any license, distribution agreement or other
material agreement.

      3.9 Litigation. There is no action, suit, proceeding or investigation
pending or, to Winwin's knowledge, currently overtly threatened against Winwin
that questions the validity of this Agreement or the right of Winwin to enter
into this Agreement or to consummate the transactions contemplated hereby or
thereby, or that would reasonably be expected to result, either individually or
in the aggregate, in any material adverse change in the assets, condition,
affairs or prospects of Winwin, financially or otherwise, nor is Winwin aware
that there is any basis for any of the foregoing. The foregoing includes,
without limitation, actions pending or, to Winwin's knowledge, threatened in
writing involving the prior employment of any of Winwin's employees, their use
in connection with Winwin's business of any information or techniques allegedly
proprietary to any of their former employers, or their obligations under any
agreements with prior employers. Winwin is not a party or subject to the
provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality. There is no action, suit, proceeding or
investigation by Winwin currently pending or that Winwin intends to initiate.

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      3.10 Tax Returns and Payments. Winwin is and always has been a subchapter
C corporation. Winwin has filed all tax returns (federal, state and local)
required to be filed by it. All taxes shown to be due and payable on such
returns, any assessments imposed, and to Winwin's knowledge all other taxes due
and payable by Winwin on or before the Closing, have been paid or will be paid
prior to the time they become delinquent. Winwin has not been advised (a) that
any of its returns, federal, state or other, have been or are being audited as
of the date hereof, or (b) of any deficiency in assessment or proposed judgment
to its federal, state or other taxes. Winwin has no knowledge of any liability
of any tax to be imposed upon its properties or assets as of the date of this
Agreement that is not adequately provided for.

      3.11 Employees. Winwin has no collective bargaining agreements with any of
its employees. There is no labor union organizing activity pending or, to
Winwin's knowledge, threatened with respect to Winwin. To Winwin's knowledge, no
employee of Winwin, nor any consultant with whom Winwin has contracted, is in
violation of any term of any employment contract, proprietary information
agreement or any other agreement relating to the right of any such individual to
be employed by, or to contract with, Winwin; and to Winwin's knowledge the
continued employment by Winwin of its present employees, and the performance of
Winwin's contracts with its independent contractors, will not result in any such
violation. Winwin has not received any notice alleging that any such violation
has occurred. No employee of Winwin has been granted the right to continued
employment by Winwin or to any material compensation following termination of
employment with Winwin. Winwin is not aware that any officer, key employee or
group of employees intends to terminate his, her or their employment with
Winwin, nor does Winwin have a present intention to terminate the employment of
any officer, key employee or group of employees. There are no actions pending,
or to Winwin's knowledge, threatened, by any former or current employee
concerning such person's employment by Winwin.

      3.12 Obligations of Management. Each officer and key employee of Winwin is
currently devoting substantially all of his or her business time to the conduct
of the business of Winwin. Winwin is not aware that any officer or key employee
of Winwin is planning to work less than full time at Winwin in the future. No
officer or key employee is currently working or, to Winwin's knowledge, plans to
work for a competitive enterprise, whether or not such officer or key employee
is or will be compensated by such enterprise.

      3.13 Compliance with Laws; Permits. To its knowledge, Winwin is not in
violation of any applicable statute, rule, regulation, order or restriction of
any domestic or foreign government or any instrumentality or agency thereof in
respect of the conduct of its business or the ownership of its properties which
violation would materially and adversely affect the business, assets,
liabilities, financial condition, operations or prospects of Winwin. In
particular, Winwin is in compliance with the Foreign Corrupt Practices Act. No
United States domestic governmental orders, permissions, consents, approvals or
authorizations are required to be obtained and no registrations or declarations
are required to be filed in connection with the execution and delivery of this
Agreement or the issuance of the Note, except such as have been duly and validly
obtained or filed, or with respect to any filings that must be made after the
Closing, as will be filed in a timely manner. Winwin has all franchises,
permits, licenses and any similar authority necessary for the conduct of its
business as now being conducted by it, the lack of which could materially and
adversely affect the business, properties or financial condition of Winwin and
believes it can obtain, without undue burden or expense, any similar authority
for the conduct of its business as planned to be conducted.

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      3.14 Environmental and Safety Laws. Winwin is not in violation of any
applicable statute, law or regulation relating to the environment or
occupational health and safety, and to its knowledge, no material expenditures
are or will be required in order to comply with any such existing statute, law
or regulation. No Hazardous Materials (as defined below) are used or have been
used, stored, or disposed of by Winwin or, to Winwin's knowledge, by any other
person or entity on any property owned, leased or used by Winwin. For the
purposes of the preceding sentence, "Hazardous Materials" shall mean (a)
materials that are listed or otherwise defined as "hazardous" or "toxic" under
any applicable local, state, federal and/or foreign laws and regulations that
govern the existence and/or remedy of contamination on property, the protection
of the environment from contamination, the control of hazardous wastes, or other
activities involving hazardous substances, including building materials, or (b)
any petroleum products or nuclear materials.

      3.15 Offering Valid. Assuming the accuracy of the representations and
warranties of PBT contained in Section 4.2 hereof, the offer, sale and issuance
of the Note will be exempt from the registration requirements of the Note Act of
1933, as amended (the "Securities Act"), and will have been registered or
qualified (or are exempt from registration and qualification) under the
registration, permit or qualification requirements of all applicable state
securities laws. Neither Winwin nor any agent on its behalf has solicited or
will solicit any offers to sell or has offered to sell or will offer to sell all
or any part of the Note to any person or persons so as to bring the sale of such
Note by Winwin within the registration provisions of the Note Act or any state
securities laws.

      3.16 Full Disclosure. Winwin has provided PBT with all information
requested by PBT in connection with its decision to purchase the Note. To
Winwin's knowledge, neither this Agreement nor any other document delivered by
Winwin to PBT or their attorneys or agents in connection herewith, or in
connection with the transactions contemplated hereby, contains any untrue
statement of a material fact or omits to state a material fact necessary in
order to make the statements contained herein or therein not misleading.

      3.17 Real Property Holding Corporation. Winwin is not a real property
holding corporation within the meaning of Code Section 897(c)(2) and any
regulations promulgated thereunder.

4. REPRESENTATIONS AND WARRANTIES OF PBT

      4.1 Purchase for Own Account. PBT represents that it is acquiring the Note
solely for its own account and beneficial interest for investment and not for
sale or with a view to distribution of the Note or any part thereof, has no
present intention of selling (in connection with a distribution or otherwise),
granting any participation in, or otherwise distributing the same, and does not
presently have reason to anticipate a change in such intention.

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      4.2 Information and Sophistication. Without lessening or obviating the
representations and warranties of Winwin set forth in Section 3, PBT hereby
acknowledges that it has had an opportunity to ask questions and receive answers
from Winwin regarding the terms and conditions of the offering of the Note and
further represents that it has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risk of this
investment.

      4.3 Ability to Bear Economic Risk. PBT acknowledges that investment in the
Note involves a high degree of risk, and represents that it is able, without
materially impairing its financial condition, to hold the Note for an indefinite
period of time and to suffer a complete loss of its investment.

      4.4 Accredited Investor Status. PBT is an "accredited investor" as such
term is defined in Rule 501 under the Securities Act of 1933.

      4.5 Further Assurances. PBT agrees and covenants that at any time and from
time to time it will promptly execute and deliver to Winwin such further
instruments and documents and take such further action as Winwin may reasonably
require in order to carry out the full intent and purpose of this Agreement and
to comply with state or federal securities laws or other regulatory approvals.

5. CONDITIONS TO CLOSING.

      5.1 Conditions to PBT's Obligations at the Closing. PBT's obligations to
purchase the Note at the Closing are subject to the satisfaction, at or prior to
the Closing Date, of the following conditions:

            (a) Representations and Warranties True; Performance of Obligations.
The representations and warranties made by Winwin in Section 3 shall be true and
correct as of the Closing Date with the same force and effect as if they had
been made as of the Closing Date, and Winwin shall have performed all
obligations and conditions herein required to be performed or observed by it on
or prior to the Closing.

            (b) Legal Investment. On the Closing Date, the sale and issuance of
the Note shall be legally permitted by all laws and regulations to which PBT and
Winwin are subject.

            (c) Consents, Permits, and Waivers. Winwin shall have obtained any
and all consents, permits and waivers necessary or appropriate for consummation
of the transactions contemplated by the Agreement.

      5.2 Conditions to Obligations of Winwin. Winwin's obligation to issue and
sell the Note at each Closing is subject to the satisfaction, on or prior to
such Closing, of the following conditions:

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            (a) Representations and Warranties True; Performance of Obligations.
The representations and warranties made by PBT in Section 4 shall be true and
correct as of the Closing Date with the same force and effect as if they had
been made as of the Closing Date, and PBT shall have performed all obligations
and conditions herein required to be performed or observed by it on or prior to
the Closing.

            (b) Consents, Permits, and Waivers. PBT shall have obtained any and
all consents, permits and waivers necessary or appropriate for consummation of
the transactions contemplated by the Agreement.

6. COOPERATIVE ACTIVITIES.

      6.1 Selling Support. During the period from the date of this Agreement
through at least December 31, 2006 (the "Cooperation Term"), Winwin shall
provide PBT with a reasonable amount of selling support to assist in driving
PBT's biometric authentication and payment solutions into the Chinese Video
Lottery Terminal ("VLT") solution that is being prepared for rollout across
China. This support shall include, among other things (and in compliance with
all applicable legal requirements), both the direct promotion of PBT's solutions
to key government officials and other decision makers/influencers and the
arrangement of key meetings between these individuals/groups and PBT employees.

      6.2 Access. During the Cooperation Term, in compliance with all applicable
legal requirements, Winwin shall provide PBT with access to all senior Chinese
government officials with current Winwin relationships for the purpose of
promoting PBT solutions into other applications beyond VLTs.

      6.3 Attorney Support. During the Cooperation Term, in compliance with all
applicable legal requirements, Winwin shall provide PBT with the support of
Winwin's Chinese/American VP/attorney for the purpose of making introductions
and helping provide tactical and strategic guidance to PBT in connection with
its entry into China.

      6.4 Physical and Logistical Support. During the Cooperation Term, in
compliance with all applicable legal requirements, Winwin shall provide PBT with
physical and logistical support for PBT's entry into China, including providing
access to Winwin's distribution channels and making available without charge a
limited amount of office space in Shanghai.

7. MISCELLANEOUS

      7.1 Binding Agreement. The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and
assigns of the parties. Nothing in this Agreement, expressed or implied, is
intended to confer upon any third party any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

      7.2 Governing Law. This Agreement shall be governed by and construed under
the laws of the State of California as applied to agreements among California
residents, made and to be performed entirely within the State of California,
without giving effect to conflicts of laws principles.

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      7.3 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      7.4 Titles and Subtitles. The titles and subtitles used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.

      7.5 Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the
party to be notified, (b) when sent by confirmed telex, electronic mail or
facsimile if sent during normal business hours of the recipient, if not, then on
the next business day, (c) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d) one (1) day
after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt. All communications shall be
sent to PBT at 101 Second Street, Suite 1500, San Francisco, California 94105,
and to Winwin at 8687 West Sahara, Suite 201, Las Vegas, NV 89117, or at such
other address(es) as PBT or Winwin may designate by ten (10) days advance
written notice to the other parties hereto.

      7.6 Expenses. Winwin shall pay directly or reimburse all of PBT's expenses
(including legal fees and costs) incurred in connection with the negotiation,
execution and performance of this Agreement and the transactions contemplated
hereby. PBT shall reduce the amount of the check or wire transfer delivered to
Winwin at the Closing by the estimated amount of such expenses and shall be
deemed to have loaned Winwin the full Loan Amount. Promptly after the actual
amount of PBT's expenses to be borne by Winwin becomes known, the appropriate
party shall make a reconciling payment to the other party.

      7.7 Delays or Omissions. It is agreed that no delay or omission to
exercise any right, power or remedy accruing to PBT, upon any breach or default
of Winwin under this Agreement or the Note, shall impair any such right, power
or remedy, nor shall it be construed to be a waiver of any such breach or
default, or any acquiescence therein, or of or in any similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring. It is further agreed that any waiver, permit, consent or approval of
any kind or character by Purchaser of any breach or default under this
Agreement, or any waiver by any Purchaser of any provisions or conditions of
this Agreement must be in writing and shall be effective only to the extent
specifically set forth in writing and that all remedies, either under this
Agreement, or by law or otherwise afforded to PBT, shall be cumulative and not
alternative.

      7.8 Entire Agreement. This Agreement, the Note and the Security Agreement
constitute the full and entire understanding and agreement between the parties
with regard to the subjects hereof and no party shall be liable or bound to any
other party in any manner by any representations, warranties, covenants and
agreements except as specifically set forth herein.

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      IN WITNESS WHEREOF, the parties have executed this JOINT VENTURE AGREEMENT
as of the date first written above.

                                              SOLIDUS NETWORKS, INC.

                                             By:    /s/ Gus B. Spanos
                                                    ----------------------------
                                             Name:  Gus B. Spanos
                                                    ----------------------------
                                             Title: Executive Vice President
                                                    ----------------------------

                                              WINWIN GAMING, INC.

                                             By:    /s/ Patrick Rogers
                                                    ----------------------------
                                             Name:  Patrick Rogers
                                                    ----------------------------
                                             Title: CEO/President
                                                    ----------------------------

                    SIGNATURE PAGE TO JOINT VENTURE AGREEMENTExhibit 10.2
                                                              Security Agreement

                               SECURITY AGREEMENT

      THIS SECURITY AGREEMENT dated as of September 30, 2005 ("Security
Agreement"), is made by WINWIN GAMING, INC., a Delaware corporation ("Grantor"),
in favor of SOLIDUS NETWORKS, INC., dba PayByTouch Solutions, a Delaware
corporation ("Secured Party").

                                    RECITALS

      A. Secured Party has made and has agreed to make a certain advance of
money (the "Loan") to Grantor as evidenced by that certain Secured Promissory
Note dated September 30, 2005 executed by Grantor in favor of Secured Party (the
"Note"). Concurrently herewith, Secured Party and Grantor are also entering into
a Joint Venture Agreement dated as of September 30, 2005 (the "Joint Venture
Agreement").

      B. Secured Party is willing to make the Loan to Grantor, and to enter into
the Joint Venture Agreement with Grantor, but only upon the condition, among
others, that Grantor shall have executed and delivered to Secured Party this
Security Agreement.

                                    AGREEMENT

      NOW, THEREFORE, in order to induce Secured Party to make the Loan and to
enter into the Joint Venture Agreement and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and
intending to be legally bound, Grantor hereby represents, warrants, covenants
and agrees as follows:

      1. DEFINED TERMS. When used in this Security Agreement the following terms
shall have the following meanings (such meanings being equally applicable to
both the singular and plural forms of the terms defined):

      "Bankruptcy Code" means Title XI of the United States Code.

      "Collateral" shall have the meaning assigned to such term in Section 2 of
this Security Agreement.

      "Contracts" means all contracts (including any customer, vendor, supplier,
service or maintenance contract), leases, licenses, undertakings, purchase
orders, permits, franchise agreements or other agreements (other than any right
evidenced by Chattel Paper, Documents or Instruments), whether in written or
electronic form, in or under which Grantor now holds or hereafter acquires any
right, title or interest, including, without limitation, with respect to an
Account, any agreement relating to the terms of payment or the terms of
performance thereof.

      "Copyright License" means any agreement, whether in written or electronic
form, in which Grantor now holds or hereafter acquires any interest, granting
any right in or to any Copyright or Copyright registration (whether Grantor is
the licensee or the licensor thereunder) including, without limitation, licenses
pursuant to which Grantor has obtained the exclusive right to use a copyright
owned by a third party.

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      "Copyrights" means all of the following now owned or hereafter acquired or
created (as a work for hire for the benefit of Grantor) by Grantor or in which
Grantor now holds or hereafter acquires or receives any right or interest, in
whole or in part: (a) all copyrights, whether registered or unregistered, held
pursuant to the laws of the United States, any State thereof or any other
country; (b) registrations, applications, recordings and proceedings in the
United States Copyright Office or in any similar office or agency of the United
States, any State thereof or any other country; (c) any continuations, renewals
or extensions thereof; (d) any registrations to be issued in any pending
applications, and shall include any right or interest in and to work protectable
by any of the foregoing which are presently or in the future owned, created or
authorized (as a work for hire for the benefit of Grantor) or acquired by
Grantor, in whole or in part; (e) prior versions of works covered by copyright
and all works based upon, derived from or incorporating such works; (f) income,
royalties, damages, claims and payments now and hereafter due and/or payable
with respect to copyrights, including, without limitation, damages, claims and
recoveries for past, present or future infringement; (g) rights to sue for past,
present and future infringements of any copyright; and (h) any other rights
corresponding to any of the foregoing rights throughout the world.

      "Event of Default" means any "Event of Default" as defined in the Note.

      "Intellectual Property" means any intellectual property, in any medium, of
any kind or nature whatsoever, now or hereafter owned or acquired or received by
Grantor or in which Grantor now holds or hereafter acquires or receives any
right or interest, and shall include, in any event, any Copyright, Trademark,
Patent, trade secret, customer list, marketing plan, internet domain name
(including any right related to the registration thereof), proprietary or
confidential information, mask work, source, object or other programming code,
invention (whether or not patented or patentable), technical information,
procedure, design, knowledge, know-how, software, data base, data, skill,
expertise, recipe, experience, process, model, drawing, material or record.

      "License" means any Copyright License, Patent License, Trademark License
or other license of rights or interests, whether in-bound or out-bound, whether
in written or electronic form, now or hereafter owned or acquired or received by
Grantor or in which Grantor now holds or hereafter acquires or receives any
right or interest, and shall include any renewals or extensions of any of the
foregoing thereof.

      "Lien" means any mortgage, lien, deed of trust, charge, pledge, security
interest or other encumbrance.

      "Patent License" means any agreement, whether in written or electronic
form, in which Grantor now holds or hereafter acquires any interest, granting
any right with respect to any invention on which a Patent is in existence
(whether Grantor is the licensee or the licensor thereunder).

                                       2
<PAGE>

      "Patents" means all of the following in which Grantor now holds or
hereafter acquires any interest: (a) all letters patent of the United States or
any other country, all registrations and recordings thereof and all applications
for letters patent of the United States or any other country, including, without
limitation, registrations, recordings and applications 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; (b) all reissues, divisions,
continuations, renewals, continuations-in-part or extensions thereof; (c) all
petty patents, divisionals and patents of addition; (d) all patents to issue in
any such applications; (e) income, royalties, damages, claims and payments now
and hereafter due and/or payable with respect to patents, including, without
limitation, damages, claims and recoveries for past, present or future
infringement; and (f) rights to sue for past, present and future infringements
of any patent.

      "Permitted Lien" means: (a) any Liens existing on the date of this
Security Agreement and set forth on Schedule A attached hereto; (b) Liens for
taxes, fees, assessments or other governmental charges or levies, either not
delinquent or being contested in good faith by appropriate proceedings, provided
the same have no priority over any of Secured Party's security interests created
hereunder; (c) Liens (i) upon or in any Equipment acquired or held by Grantor to
secure the purchase price of such Equipment or indebtedness (including capital
leases) incurred solely for the purpose of financing the acquisition of such
Equipment or (ii) existing on such Equipment at the time of its acquisition,
provided that the Lien is confined solely to the Equipment so acquired,
improvements thereon and the Proceeds of such Equipment; (d) leases or subleases
and licenses or sublicenses granted to others in the ordinary course of
Grantor's business if such are not otherwise prohibited under this Security
Agreement and do not interfere in any material respect with the business of
Grantor; (e) any right, title or interest of a licensor under a license provided
that such license or sublicense does not prohibit the grant of the security
interest granted hereunder; (f) Liens arising solely by virtue of any statutory
or common law provision relating to banker's liens, rights of setoff or similar
rights and remedies as to deposit accounts or other funds maintained with a
creditor depository institution; and (g) liens in favor of a securities
intermediary pursuant to such securities intermediary's customary customer
account agreement; provided that any such Liens shall at no time secure any
indebtedness or obligations other than customary fees and charges payable to
such securities intermediary.

      "Secured Obligations" means (a) the obligation of Grantor to repay Secured
Party all of the unpaid principal amount of, and accrued interest on (including
any interest that accrues after the commencement of bankruptcy), the Loan, (b)
the obligation of Grantor to pay any fees, costs or expenses of Secured Party
under the Note, this Security Agreement, or the Joint Venture Agreement, and (c)
all other indebtedness, liabilities and obligations of Grantor to Secured Party,
whether now existing or hereafter incurred, and whether created under, arising
out of or in connection with any written agreement or otherwise.

      "Security Agreement" means this Security Agreement and all Schedules
hereto, as the same may from time to time be amended, modified, supplemented or
restated.

      "Trademark License" means any agreement, whether in written or electronic
form, in which Grantor now holds or hereafter acquires any interest, granting
any right in and to any Trademark or Trademark registration (whether Grantor is
the licensee or the licensor thereunder).

                                       3
<PAGE>

      "Trademarks" means any of the following in which Grantor now holds or
hereafter acquires any interest: (a) any trademarks, tradenames, corporate
names, company names, business names, trade styles, service marks, logos, other
source or business identifiers, prints and labels on which any of the foregoing
have appeared or appear, designs and general intangibles of like nature, now
existing or hereafter adopted or acquired, all registrations and recordings
thereof and any applications in connection therewith, including, without
limitation, registrations, recordings and applications 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 (collectively, the "Marks"); (b)
any reissues, extensions or renewals thereof; (c) the goodwill of the business
symbolized by or associated with the Marks; (d) income, royalties, damages,
claims and payments now and hereafter due and/or payable with respect to the
Marks, including, without limitation, damages, claims and recoveries for past,
present or future infringement; and (e) rights to sue for past, present and
future infringements of the Marks.

      "UCC" means the Uniform Commercial Code as the same may from time to time
be in effect in the State of California (and each reference in this Security
Agreement to an Article thereof (denoted as a Division of the UCC as adopted and
in effect in the State of California) shall refer to that Article (or Division,
as applicable) as from time to time in effect; provided, however, in the event
that, by reason of mandatory provisions of law, any or all of the attachment,
perfection or priority of Secured Party's security interest in any Collateral is
governed by the Uniform Commercial Code as in effect in a jurisdiction other
than the State of California, the term "UCC" shall mean the Uniform Commercial
Code (including the Articles thereof) as in effect at such time in such other
jurisdiction for purposes of the provisions hereof relating to such attachment,
perfection or priority and for purposes of definitions related to such
provisions.

      In addition, the following terms shall be defined terms having the meaning
set forth for such terms in the UCC: "Account", "Account Debtor", "Chattel
Paper", "Commercial Tort Claims", "Commodity Account", "Deposit Account",
"Documents", "Equipment", "Fixtures", "General Intangible", "Goods",
"Instrument", "Inventory", "Investment Property", "Letter-of-Credit Right",
"Money", "Payment Intangibles", "Proceeds", "Promissory Notes", "Securities
Account", and "Supporting Obligations". Each of the foregoing defined terms
shall include all of such items now owned, or hereafter acquired, by Grantor.

      2. GRANT OF SECURITY INTEREST. As collateral security for the full,
prompt, complete and final payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of all the Secured Obligations and in
order to induce Secured Party to cause the Loan to be made and to enter into the
Joint Venture Agreement, Grantor hereby assigns, conveys, mortgages, pledges,
hypothecates and transfers to Secured Party, and hereby grants to Secured Party,
a security interest in all of Grantor's right, title and interest in, to and
under the following, whether now owned or hereafter acquired (all of which being
collectively referred to herein as the "Collateral"):

            (a) All Accounts of Grantor;

            (b) All Chattel Paper of Grantor;

                                       4
<PAGE>

            (c) The Commercial Tort Claims of Grantor more particularly
described on Schedule B attached hereto;

            (d) All Commodity Accounts of Grantor;

            (e) All Contracts of Grantor;

            (f) All Deposit Accounts of Grantor;

            (g) All Documents of Grantor;

            (h) All General Intangibles of Grantor;

            (i) All Goods of Grantor, including without limitation, Equipment,
Inventory and Fixtures;

            (j) All Instruments of Grantor, including, without limitation,
Promissory Notes;

            (k) All Investment Property of Grantor;

            (l) All Letter-of Credit Rights of Grantor;

            (m) All Money of Grantor;

            (n) All Securities Accounts of Grantor;

            (o) All Supporting Obligations of Grantor;

            (p) All property of Grantor held by Secured Party, or any other
party for whom Secured Party is acting as agent, including, without limitation,
all property of every description now or hereafter in the possession or custody
of or in transit to Secured Party or such other party for any purpose,
including, without limitation, safekeeping, collection or pledge, for the
account of Grantor, or as to which Grantor may have any right or power;

            (q) All other goods and personal property of Grantor, wherever
located, whether tangible or intangible, and whether now owned or hereafter
acquired, existing, leased or consigned by or to Grantor; and

            (r) To the extent not otherwise included, all Proceeds of each of
the foregoing and all accessions to, substitutions and replacements for and
rents, profits and products of each of the foregoing.

      If Grantor shall at any time after the date hereof acquire a Commercial
Tort Claim, Grantor shall immediately notify Secured Party in a writing signed
by Grantor of the brief details thereof and grant to Secured Party in such
writing a security interest therein and in the proceeds thereof, all upon the
terms of this Security Agreement, with such writing to be in form and substance
satisfactory to Secured Party.

                                       5
<PAGE>

      3. RIGHTS OF SECURED PARTY; COLLECTION OF ACCOUNTS.

            (a) Notwithstanding anything contained in this Security Agreement to
the contrary, Grantor expressly agrees that it shall remain liable under each of
its Contracts, Chattel Paper, Documents, Instruments and Licenses to observe and
perform all the conditions and obligations to be observed and performed by it
thereunder and that it shall perform all of its duties and obligations
thereunder, all in accordance with and pursuant to the terms and provisions of
each such Contract, Chattel Paper, Document, Instrument, and License. Secured
Party shall not have any obligation or liability under any such Contract,
Chattel Paper, Document, Instrument, or License by reason of or arising out of
this Security Agreement or the granting to Secured Party of a lien therein or
the receipt by Secured Party of any payment relating to any such Contract,
Chattel Paper, Document, Instrument, or License pursuant hereto, nor shall
Secured Party be required or obligated in any manner to perform or fulfill any
of the obligations of Grantor under or pursuant to any such Contract, Chattel
Paper, Document, Instrument, or License, or to make any payment, or to make any
inquiry as to the nature or the sufficiency of any payment received by it or the
sufficiency of any performance by any party under any such Contract, Chattel
Paper, Document, Instrument, or License, or to present or file any claim, or to
take any action to collect or enforce any performance or the payment of any
amounts which may have been assigned to it or to which it may be entitled at any
time or times.

            (b) Secured Party authorizes Grantor to collect its Accounts,
provided that such collection is performed in a prudent and businesslike manner,
and Secured Party may, upon the occurrence and during the continuation of any
Event of Default and without notice, limit or terminate said authority at any
time. At the request of Secured Party, Grantor shall deliver all original and
other documents evidencing and relating to the performance of labor or service
which created such Accounts, including, without limitation, all original orders,
invoices and shipping receipts.

            (c) Secured Party may at any time, upon the occurrence and during
the continuance of any Event of Default, without notifying Grantor of its
intention to do so, notify Account Debtors of Grantor, parties to the Contracts
of Grantor, and obligors in respect of Instruments of Grantor and obligors in
respect of Chattel Paper of Grantor that the Accounts and the right, title and
interest of Grantor in and under such Contracts, Instruments and Chattel Paper
have been assigned to Secured Party and that payments shall be made directly to
Secured Party. Upon the occurrence and during the continuance of any Event of
Default, upon the request of Secured Party, Grantor shall so notify such Account
Debtors, parties to such Contracts, obligors in respect of such Instruments and
obligors in respect of such Chattel Paper. Secured Party may, in its name or in
the name of others, communicate with such Account Debtors, parties to such
Contracts, obligors in respect of such Instruments and obligors in respect of
such Chattel Paper to verify with such parties, to Secured Party's satisfaction,
the existence, amount and terms of any such Accounts, Contracts, Instruments or
Chattel Paper.

      4. REPRESENTATIONS, WARRANTIES, AND COVENANTS. Grantor hereby represents,
warrants and covenants to Secured Party that:

            (a) Except for the security interest granted to Secured Party under
this Security Agreement and Permitted Liens, Grantor is the sole legal and
equitable owner of each item of the Collateral in which it purports to grant a
security interest hereunder, having good and marketable title thereto, free and
clear of any and all Liens.

                                       6
<PAGE>

            (b) No effective security agreement, financing statement, equivalent
security or lien instrument or continuation statement covering all or any part
of the Collateral exists, except such as may have been filed by Grantor in favor
of Secured Party pursuant to this Security Agreement and except for Permitted
Liens.

            (c) This Security Agreement creates a legal and valid security
interest on and in all of the Collateral in which Grantor now has rights and
will create a legal and valid security interest in the Collateral in which
Grantor later acquires rights.

            (d) Grantor's taxpayer identification number is set forth in the
signature page hereof. Grantor is a Delaware corporation. Grantor's chief
executive office, principal place of business, and the place where Grantor
maintains its records concerning the Collateral are presently located at the
address set forth on the signature page hereof.

            (e) All action necessary or desirable to protect and perfect the
security interest of Secured Party in each item of Collateral consisting of
Chattel Paper, Instruments or Investment Property comprising certificated
securities, including the delivery of all originals thereof, duly endorsed to
Secured Party, has been duly taken. The security interest of Secured Party in
such Collateral is prior in right and interest to all other Liens (other than
Permitted Liens) and is enforceable as such against creditors of and purchasers
from Grantor.

            (f) Upon request of Secured Party, Grantor agrees to submit to
Secured Party (i) the name and address of each depository institution at which
Grantor maintains any Deposit Account and the account number and account name of
each such Deposit Account and (ii) the name and address of each securities
intermediary or commodity intermediary at which Grantor maintains any Securities
Account or Commodity Account and the account number and account name of each
such Securities Account or Commodity Account. Grantor agrees to notify Secured
Party within five (5) business days after opening any Deposit Account,
Securities Account or Commodity Account, or closing or changing the account name
or number on any existing Deposit Account, Securities Account, or Commodity
Account.

            (g) None of the Investment Property of Grantor has been transferred
in violation of the securities registration, securities disclosure or similar
laws of any jurisdiction to which such transfer may be subject.

            (h) Upon request of Secured Party, Grantor agrees to submit a list
of all Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and
Trademark Licenses now owned, held or in which Grantor otherwise has any
interest, and to promptly notify Secured Party of any additions to or deletions
from such list. Except as disclosed to Secured Party in writing, none of
Grantor's Patents, Trademarks or Copyrights have been licensed to any third
party.

      5. ADDITIONAL COVENANTS. Grantor covenants and agrees with Secured Party
that from and after the date of this Security Agreement and until the Secured
Obligations have been performed and paid in full:

                                       7
<PAGE>

            5.1 Disposition of Collateral. Grantor shall not sell, lease,
transfer or otherwise dispose of any of the Collateral, or attempt or contract
to do so, other than (a) the sale of Inventory, (b) the granting of
non-exclusive Licenses, and (c) the disposal of worn-out or obsolete Equipment,
all in the ordinary course of Grantor's business.

            5.2 Change of Jurisdiction of Organization, Relocation of Business
or Collateral. Grantor shall not change its jurisdiction of organization,
relocate its chief executive office, principal place of business or its records,
or allow the relocation of any Collateral (except as allowed pursuant to Section
5.1 immediately above) from such address(es) provided to Secured Party pursuant
to Section 4(d) above without thirty (30) days prior written notice to Secured
Party.

            5.3 Limitation on Liens on Collateral. Grantor shall not, directly
or indirectly, create, permit or suffer to exist, and shall defend the
Collateral against and take such other action as is necessary to remove, any
Lien on the Collateral, except (a) Permitted Liens and (b) the Lien granted to
Secured Party under this Security Agreement. Grantor shall further defend the
right, title and interest of Secured Party in and to any of Grantor's rights
under the Collateral against the claims and demands of all persons whomsoever.

            5.4 Limitations on Modifications of Accounts, Etc. Upon the
occurrence and during the continuance of any Event of Default, Grantor shall
not, without Secured Party's prior written consent, grant any extension of the
time of payment of any of the Accounts, Chattel Paper, Instruments or amounts
due under any Contract or Document, compromise, compound or settle the same for
less than the full amount thereof, release, wholly or partly, any person liable
for the payment thereof, or allow any credit or discount whatsoever thereon
other than trade discounts and rebates granted in the ordinary course of
Grantor's business.

            5.5 Insurance. Grantor shall maintain insurance policies insuring
the Collateral against loss or damage from such risks and in such amounts and
forms and with such companies as are customarily maintained by businesses
similar to Grantor.

            5.6 Taxes, Assessments, Etc. Grantor shall pay promptly when due all
property and other taxes, assessments and government charges or levies imposed
upon, and all claims (including claims for labor, materials and supplies)
against, the Goods, except to the extent the validity thereof is being contested
in good faith and adequate reserves are being maintained in connection
therewith.

            5.7 Maintenance of Records. Grantor shall keep and maintain at its
own cost and expense satisfactory and complete records of the Collateral.
Grantor shall not create any Chattel Paper without placing a legend on the
Chattel Paper acceptable to Secured Party indicating that Secured Party has a
security interest in the Chattel Paper.

            5.8 Registration of Intellectual Property Rights. Grantor shall
promptly register or cause to be registered (to the extent not already
registered) the most recent version of any Copyright, Copyright License, Patent,
Patent License, Trademark or Trademark License, which, individually or in the
aggregate, is material to the conduct of Grantor's business, with the United
States Copyright Office or Patent and Trademark Office, as applicable,
including, without limitation, in all such cases the filing of applications for
renewal, affidavits of use, affidavits of noncontestability and opposition and
interference and cancellation proceedings. Grantor shall register or cause to be
registered with the United States Copyright Office or Patent and Trademark
Office, as applicable, those additional rights and interests developed or
acquired by Grantor after the date of this Security Agreement which individually
or in the aggregate, are material to the conduct of Grantor's business.

                                       8
<PAGE>

            5.9 Notification Regarding Changes in Intellectual Property. Grantor
shall:

            (a) promptly advise Secured Party in writing of any subsequent
ownership right or interest of the Grantor in or to any Copyright, Patent,
Trademark or License;

            (b) promptly give Secured Party written notice of any applications
or registrations of intellectual property rights filed with the United States
Patent and Trademark Office, including the date of such filing and the
registration or application numbers, if any; and

            (c) (i) give Secured Party not less than 30 days prior written
notice of the filing of any applications or registrations with the United States
Copyright Office, including the title of such intellectual property rights to be
registered, as such title will appear on such applications or registrations, and
the date such applications or registrations will be filed, and (ii) prior to the
filing of any such applications or registrations, shall execute such documents
as Secured Party may reasonably request for Secured Party to maintain its
perfection and priority in such intellectual property rights to be registered by
Grantor, and upon the request of Secured Party, shall file such documents
simultaneously with the filing of any such applications or registrations. Upon
filing any such applications or registrations with the United States Copyright
Office, Grantor shall promptly provide Secured Party with (x) a copy of such
applications or registrations, without the exhibits, if any, thereto, (y)
evidence of the filing of any documents requested by Secured Party to be filed
for Secured Party to maintain the perfection and priority of its security
interest in such intellectual property rights, and (z) the date of such filing.

            (d) Secured Party may audit Grantor's Intellectual Property to
confirm compliance with Section 5.8 and this Section 5.9. Secured Party shall
have the right, but not the obligation, to take, at Grantor's sole expense, any
actions that Grantor is required under this Section 5.9 to take but which
Grantor fails to take, after five (5) days' notice to Grantor (provided that no
such notice shall be required if an Event of Default has occurred and is
continuing). Grantor shall reimburse and indemnify Secured Party for all
reasonable costs and reasonable expenses incurred in the reasonable exercise of
its rights under Section 5.8 or this Section 5.9.

            5.10 Defense of Intellectual Property. Grantor shall (a) protect,
defend and maintain the validity and enforceability of its Copyrights, Patents
and Trademarks, (b) use its best efforts to detect infringements of its
Copyrights, Patents and Trademarks and promptly advise Secured Party in writing
of material infringements detected and (c) not allow any of its Copyrights,
Patents or Trademarks to be abandoned, forfeited or dedicated to the public
without the prior written consent of Secured Party.

                                       9
<PAGE>

            5.11 Further Assurances; Pledge of Instruments. At any time and from
time to time, upon the written request of Secured Party, and at the sole expense
of Grantor, Grantor shall promptly and duly execute and deliver any and all such
further instruments and documents and take such further action as Secured Party
may reasonably deem necessary or desirable to obtain the full benefits of this
Security Agreement, including, without limitation, (a) using its best efforts to
secure all consents and approvals necessary or appropriate for the grant of a
security interest to Secured Party in any item of Collateral held by Grantor or
in which Grantor has any right or interest, (b) executing, delivering and
causing to be filed any financing or continuation statements (including "in
lieu" continuation statements) under the UCC with respect to the security
interests granted hereby, (c) filing or cooperating with Secured Party in filing
any forms or other documents required to be recorded with the United States
Patent and Trademark Office, United States Copyright Office, or any actions,
filings, recordings or registrations in any foreign jurisdiction or under any
international treaty, required to secure or protect Secured Party's interest in
the Collateral, (d) transferring the Collateral to Secured Party's possession
(if a security interest in such Collateral can be perfected only by possession),
(e) at Secured Party's reasonable request, placing the interest of Secured Party
as lienholder on the certificate of title (or similar evidence of ownership) of
any vehicle, watercraft or other item of Collateral owned by Grantor which is
covered by a certificate of title (or similar evidence of ownership), (f)
executing and delivering and causing the applicable depository institution,
securities intermediary, commodity intermediary or issuer or nominated party
under a letter of credit to execute and deliver a collateral control agreement
with respect to each Deposit Account, Securities Account or Commodity Account or
Letter-of-Credit Right in or to which Grantor now or hereafter has any right or
interest in order to perfect the security interest created hereunder in favor of
Secured Party (including giving Secured Party "control" over such Collateral
within the meaning of the applicable provisions of Article 8 and Article 9 of
the UCC), (g) at Secured Party's reasonable request, executing and delivering or
causing to be delivered written notice to insurers of Secured Party's security
interest in, or claim in or under, any policy of insurance (including unearned
premiums) and (h) at Secured Party's reasonable request, using its best efforts
to obtain acknowledgments from bailees having possession of any Collateral and
waivers of liens from landlords and mortgagees of any location where any of the
Collateral may from time to time be stored or located. Secured Party may at any
time and from time to time file financing statements, continuation statements
(including "in lieu" continuation statements) and amendments thereto that
describe the Collateral as all assets of Grantor or words of similar effect. Any
such financing statements, continuation statements or amendments may be signed
by Secured Party on behalf of Grantor and may be filed at any time in any
jurisdiction. Grantor also hereby authorizes Secured Party to file any such
financing or continuation statement (including "in lieu" continuation
statements) without the signature of Grantor. If any amount payable under or in
connection with any of the Collateral is or shall become evidenced by any
Instrument, such Instrument, other than checks and notes received in the
ordinary course of business and any Instrument in the outstanding or stated
amount of less than $10,000, shall be duly endorsed in a manner reasonably
satisfactory to Secured Party and delivered to Secured Party promptly and in any
event within five (5) business days of Grantor's receipt thereof.

                                       10
<PAGE>

      6. SECURED PARTY'S APPOINTMENT AS ATTORNEY-IN-FACT; PERFORMANCE BY SECURED
PARTY.

            (a) Subject to Section 6(b) below, Grantor hereby irrevocably
constitutes and appoints Secured Party, and any officer or agent of Secured
Party, with full power of substitution, as its true and lawful attorney-in-fact
with full, irrevocable power and authority in the place and stead of Grantor and
in the name of Grantor or in its own name, from time to time at Secured Party's
discretion, for the purpose of carrying out the terms of this Security
Agreement, to take any and all appropriate action and to execute and deliver any
and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Security Agreement and, without limiting the
generality of the foregoing, hereby gives Secured Party the power and right, on
behalf of Grantor, without notice to or assent by Grantor to do the following:

                  (i) to ask, demand, collect, receive and give acquittances and
receipts for any and all monies due or to become due under any Collateral and,
in the name of Grantor, in its own name or otherwise to take possession of,
endorse and collect any checks, drafts, notes, acceptances or other Instruments
for the payment of monies due under any Collateral and to file any claim or take
or commence any other action or proceeding in any court of law or equity or
otherwise deemed appropriate by Secured Party for the purpose of collecting any
and all such monies due under any Collateral whenever payable;

                  (ii) to pay or discharge any Liens, including, without
limitation, any tax lien, levied or placed on or threatened against the
Collateral, to effect any repairs or any insurance called for by the terms of
this Security Agreement and to pay all or any part of the premiums therefor and
the costs thereof, which actions shall be for the benefit of Secured Party and
not Grantor;

                  (iii) to (1) direct any person liable for any payment under or
in respect of any of the Collateral to make payment of any and all monies due or
to become due thereunder directly to Secured Party or as Secured Party shall
direct, (2) receive payment of any and all monies, claims and other amounts due
or to become due at any time arising out of or in respect of any Collateral, (3)
sign and endorse any invoices, freight or express bills, bills of lading,
storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with Accounts and other Instruments and
Documents constituting or relating to the Collateral, (4) commence and prosecute
any suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Collateral or any part thereof and to enforce any
other right in respect of any Collateral, (5) defend any suit, action or
proceeding brought against Grantor with respect to any Collateral, (6) settle,
compromise or adjust any suit, action or proceeding described above, and in
connection therewith, give such discharges or releases as Secured Party may deem
appropriate, (7) license, or, to the extent permitted by an applicable License,
sublicense, whether general, special or otherwise, and whether on an exclusive
or non-exclusive basis, any Copyright, Patent or Trademark throughout the world
for such term or terms, on such conditions and in such manner as Secured Party
shall in its discretion determine and (8) sell, transfer, pledge, make any
agreement with respect to or otherwise deal with any of the Collateral as fully
and completely as though Secured Party were the absolute owner thereof for all
purposes; and

                                       11
<PAGE>

                  (iv) to do, at Secured Party's option and Grantor's expense,
at any time, or from time to time, all acts and things which Secured Party may
reasonably deem necessary to protect, preserve or realize upon the Collateral
and Secured Party's security interest therein in order to effect the intent of
this Security Agreement, all as fully and effectively as Grantor might do.

            (b) Secured Party agrees that, except upon the occurrence and during
the continuation of an Event of Default, it shall not exercise the power of
attorney or any rights granted to Secured Party pursuant to this Section 6.
Grantor hereby ratifies, to the extent permitted by law, all that said attorney
shall lawfully do or cause to be done by virtue hereof. The power of attorney
granted pursuant to this Section 6 is a power coupled with an interest and shall
be irrevocable until the Secured Obligations are completely and indefeasibly
paid and performed in full.

            (c) If Grantor fails to perform or comply with any of its agreements
contained herein and Secured Party, as provided for by the terms of this
Security Agreement, shall perform or comply, or otherwise cause performance or
compliance, with such agreement, the reasonable expenses, including reasonable
attorneys' fees and costs, of Secured Party incurred in connection with such
performance or compliance, together with interest thereon at a rate of interest
equal to the highest per annum rate of interest charged on the Loan, shall be
payable by Grantor to Secured Party within five (5) business days of demand and
shall constitute Secured Obligations secured hereby.

      7. RIGHTS AND REMEDIES UPON DEFAULT. After any Event of Default shall have
occurred and while such Event of Default is continuing:

            (a) Secured Party may exercise in addition to all other rights and
remedies granted to it under this Security Agreement, the Note and under any
other instrument or agreement securing, evidencing or relating to the Secured
Obligations, all rights and remedies of a secured party under the UCC. Without
limiting the generality of the foregoing, Grantor expressly agrees that in any
such event Secured Party, without demand of performance or other demand,
advertisement or notice of any kind (except the notice specified below of time
and place of public or private sale) to or upon Grantor or any other person (all
and each of which demands, advertisements and notices are hereby expressly
waived to the maximum extent permitted by the UCC and other applicable law), may
(i) reclaim, take possession, recover, store, maintain, finish, repair, prepare
for sale or lease, shop, advertise for sale or lease and sell or lease (in the
manner provided herein) the Collateral, and in connection with the liquidation
of the Collateral and collection of the accounts receivable pledged as
Collateral, use any Trademark, Copyright, or process used or owned by Grantor
and (ii) forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and may forthwith sell, lease, assign, give an
option or options to purchase or sell or otherwise dispose of and deliver said
Collateral (or contract to do so), or any part thereof, in one or more parcels
at public or private sale or sales, at any exchange or broker's board or at any
of Secured Party's offices or elsewhere at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk.
To the extent Grantor has the right to do so, Grantor authorizes Secured Party,
on the terms set forth in this Section 7 to enter the premises where the
Collateral is located, to take possession of the Collateral, or any part of it,
and to pay, purchase, contact, or compromise any encumbrance, charge, or lien
which, in the opinion of Secured Party, appears to be prior or superior to its
security interest. Secured Party shall have the right upon any such public sale
or sales, and, to the extent permitted by law, upon any such private sale or
sales, to purchase the whole or any part of said Collateral so sold, free of any
right or equity of redemption, which equity of redemption Grantor hereby
releases. Grantor further agrees, at Secured Party's request, to assemble the
Collateral and make it available to the Secured Party at places which Secured
Party shall reasonably select, whether at Grantor's premises or elsewhere.
Secured Party shall apply the net proceeds of any such collection, recovery,
receipt, appropriation, realization or sale as provided in Section 7(f), below
and only after so paying over such net proceeds and after the payment by Secured
Party of any other amount required by any provision of law, need Secured Party
account for the surplus, if any, to Grantor. To the maximum extent permitted by
applicable law, Grantor waives all claims, damages, and demands against Secured
Party arising out of the repossession, retention or sale of the Collateral.
Grantor agrees that Secured Party need not give more than ten (10) days' notice
of the time and place of any public sale or of the time after which a private
sale may take place and that such notice is reasonable notification of such
matters. Grantor shall remain liable for any deficiency if the proceeds of any
sale or disposition of the Collateral are insufficient to pay all amounts to
which Secured Party is entitled from Grantor, Grantor also being liable for the
attorney costs of any attorneys employed by Secured Party to collect such
deficiency.

                                       12
<PAGE>

            (b) As to any Collateral constituting certificated securities or
uncertificated securities, if, at any time when Secured Party shall determine to
exercise its right to sell the whole or any part of such Collateral hereunder,
such Collateral or the part thereof to be sold shall not, for any reason
whatsoever, be effectively registered under Securities Act of 1933, as amended
(as so amended the "Act"), Secured Party may, in its discretion (subject only to
applicable requirements of law), sell such Collateral or part thereof by private
sale in such manner and under such circumstances as Secured Party may deem
necessary or advisable, but subject to the other requirements of this Section
7(b), and shall not be required to effect such registration or cause the same to
be effected. Without limiting the generality of the foregoing, in any such event
Secured Party may, in its sole discretion, (i) in accordance with applicable
securities laws, proceed to make such private sale notwithstanding that a
registration statement for the purpose of registering such Collateral or part
thereof could be or shall have been filed under the Act; (ii) approach and
negotiate with a single possible purchaser to effect such sale; and (iii)
restrict such sale to a purchaser who will represent and agree that such
purchaser is purchasing for its own account, for investment, and not with a view
to the distribution or sale of such Collateral or part thereof. In addition to a
private sale as provided above in this Section 7(b), if any of such Collateral
shall not be freely distributable to the public without registration under the
Act at the time of any proposed sale hereunder, then Secured Party shall not be
required to effect such registration or cause the same to be effected but may,
in its sole discretion (subject only to applicable requirements of law), require
that any sale hereunder (including a sale at auction) be conducted subject to
such restrictions as Secured Party may, in its sole discretion, deem necessary
or appropriate in order that such sale (notwithstanding any failure so to
register) may be effected in compliance with the Bankruptcy Code and other laws
affecting the enforcement of creditors' rights and the Act and all applicable
state securities laws.

            (c) Grantor agrees that in any sale of any of such Collateral,
whether at a foreclosure sale or otherwise, Secured Party is hereby authorized
to comply with any limitation or restriction in connection with such sale as it
may be advised by counsel is necessary in order to avoid any violation of
applicable law (including compliance with such procedures as may restrict the
number of prospective bidders and purchasers, require that such prospective
bidders and purchasers have certain qualifications and restrict such prospective
bidders and purchasers to persons who will represent and agree that they are
purchasing for their own account for investment and not with a view to the
distribution or resale of such Collateral), or in order to obtain any required
approval of the sale or of the purchaser by any governmental authority, and
Grantor further agrees that such compliance shall not result in such sale being
considered or deemed not to have been made in a commercially reasonable manner,
nor shall Secured Party be liable nor accountable to Grantor for any discount
allowed by the reason of the fact that such Collateral is sold in compliance
with any such limitation or restriction.

                                       13
<PAGE>

            (d) Grantor also agrees to pay all fees, costs and expenses of
Secured Party, including, without limitation, attorneys' fees, incurred in
connection with the enforcement of any of its rights and remedies hereunder.

            (e) Grantor hereby waives presentment, demand, protest or any notice
(to the maximum extent permitted by applicable law) of any kind in connection
with this Security Agreement or any Collateral. (f) The Proceeds of any sale,
disposition or other realization upon all or any part of the Collateral shall be
distributed by Secured Party in the following order of priorities:

            FIRST, to Secured Party in an amount sufficient to pay in full the
costs of Secured Party in connection with such sale, disposition or other
realization, including all fees, costs, expenses, liabilities and advances
incurred or made by Secured Party in connection therewith, including, without
limitation, attorneys' fees;

            SECOND, to Secured Party in an amount equal to the then unpaid
Secured Obligations; and

            FINALLY, upon payment in full of the Secured Obligations, to Grantor
or its representatives, in accordance with the UCC or as a court of competent
jurisdiction may direct.

      8. INDEMNITY. Grantor agrees to defend, indemnify and hold harmless
Secured Party and its officers, employees, and agents against (a) all
obligations, demands, claims, and liabilities claimed or asserted by any other
party in connection with the transactions contemplated by this Security
Agreement and (b) all losses or expenses in any way suffered, incurred, or paid
by Secured Party as a result of or in any way arising out of, following or
consequential to transactions between Secured Party and Grantor, whether under
this Security Agreement or otherwise (including without limitation, reasonable
attorneys fees and expenses), except for losses arising from or out of Secured
Party's gross negligence or willful misconduct.

      9. LIMITATION ON SECURED PARTY'S DUTY IN RESPECT OF COLLATERAL. Secured
Party shall be deemed to have acted reasonably in the custody, preservation and
disposition of any of the Collateral if it takes such action as Grantor requests
in writing except during an Event of Default, but failure of Secured Party to
comply with any such request shall not in itself be deemed a failure to act
reasonably, and no failure of Secured Party to do any act not so requested shall
be deemed a failure to act reasonably.

                                       14
<PAGE>

      10. REINSTATEMENT. This Security Agreement shall remain in full force and
effect and continue to be effective should any petition be filed by or against
Grantor for liquidation or reorganization, should Grantor become insolvent or
make an assignment for the benefit of creditors or should a receiver or trustee
be appointed for all or any significant part of Grantor's property and assets,
and shall continue to be effective or be reinstated, as the case may be, if at
any time payment and performance of the Secured Obligations, or any part
thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any obligee of the Secured Obligations,
whether as a "voidable preference," "fraudulent conveyance," or otherwise, all
as though such payment or performance had not been made. In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the
Secured Obligations shall be reinstated and deemed reduced only by such amount
paid and not so rescinded, reduced, restored or returned.

      11. MISCELLANEOUS.

            11.1 Waivers; Modifications. None of the terms or provisions of this
Security Agreement may be waived, altered, modified or amended except by an
instrument in writing, duly executed by Grantor and Secured Party.

            11.2 Termination of this Security Agreement. Subject to Section 10
hereof, this Security Agreement shall terminate upon the payment and performance
in full of the Secured Obligations.

            11.3 Successor and Assigns. This Security Agreement and all
obligations of Grantor hereunder shall be binding upon the successors and
assigns of Grantor, and shall, together with the rights and remedies of Secured
Party hereunder, inure to the benefit of Secured Party, any future holder of any
of the Secured Obligations and their respective successors and assigns. No sales
of participations, other sales, assignments, transfers or other dispositions of
any agreement governing or instrument evidencing the Secured Obligations or any
portion thereof or interest therein shall in any manner affect the lien granted
to Secured Party hereunder.

            11.4 Governing Law. In all respects, including all matters of
construction, validity and performance, this Security Agreement shall be
governed by, and construed and enforced in accordance with, the laws of the
State of California applicable to contracts made and performed in such state,
without regard to the principles thereof regarding conflict of laws, except to
the extent that the UCC provides for the application of the law of a different
jurisdiction.

                            [Signature pages follow.]

                                       15
<PAGE>

      IN WITNESS WHEREOF, each of the parties hereto has caused this Security
Agreement to be executed and delivered by its duly authorized officer on the
date first set forth above.

ADDRESS OF GRANTOR                         WINWIN  GAMING, INC., as Grantor

2980 S. Rainbow Blvd.                      By: /s/ Patrick Rogers
Suite 200                                      ---------------------------------
Las Vegas, NV  89146                       Printed Name: Patrick Rogers
                                                         -----------------------
                                           Title: CEO/President
                                                  ------------------------------

TAXPAYER IDENTIFICATION NUMBER             JURISDICTION OF ORGANIZATION
OF GRANTOR                                 OF GRANTOR

84-1219819                                 Delaware

ACCEPTED AND ACKNOWLEDGED BY:

SOLIDUS NETWORKS, INC., as Secured Party

By: /s/ Gus B. Spanos
    ------------------------------------
Printed Name: Gus B. Spanos
              --------------------------

Title: Executive Vice President
       ---------------------------------

                                       16

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