Document:

Unassociated Document

    

    SECURITY
      AGREEMENT

    

    THIS
      SECURITY AGREEMENT
      made
      this 23rd day of May, 2005.

    

    BETWEEN:

    

    IDENTICA
      CORP.
      a body
      corporate duly incorporated pursuant to the laws of the Province of Ontario,
      Canada (the “Debtor”)

    

    OF
      THE FIRST PART

    

    ERoomSystem
      Technologies, Inc.,
      a body
      corporate duly incorporated pursuant to the laws of the State of New Jersey,
      U.S.A.(the “Secured Party”)

    

    OF
      THE SECOND PART

    

    WHEREAS
      the
      Secured Party, eRoomSystem Technologies, Inc. (“eRoom”) has agreed to provide
      the Debtor with loans and advances in cash or in kind and provide credit to
      the
      Debtor in the maximum amount of ONE HUNDRED FIFTY THOUSAND (150,000) US
      DOLLARS.

    

    AND
      WHEREAS
      the
      Debtor is desirous of providing security to the Secured Party over all of the
      present and after-acquired property of the Debtor including all of the assets,
      both real and personal as hereinafter described, of the Debtor, as security
      for
      the said loans, advances, credit, all existing and future indebtedness, any
      prior advances or loans and any future loans which may be made by the Secured
      Party to the Debtor.

    

    THEREFORE,
      IN CONSIDERATION OF THE COVENANTS HEREIN CONTAINED, AND FOR VALUE RECEIVED,
      THE
      PARTIES HERETO AGREE AS FOLLOWS:

    

    SECURITY
      INTEREST

     

    1. The
      Debtor hereby grants to the Secured Party by way of mortgage, charge, assignment
      and transfer, a security interest (the “Security Interest”) in all the assets
      and undertaking of the Debtor and in all the Debtor's present and after acquired
      personal property including, without limitation, in all Goods (including all
      parts, accessories, attachments, special tools, additions and accessions
      thereto), Chattel Paper, Documents of Title (whether negotiable or not),
      Instruments, Intangibles, Money and Securities now owned or hereafter owned
      or
      acquired by or on behalf of the Debtor (including such as may be returned to
      or
      repossessed by the Debtor) and in all proceeds and renewals thereof, accretions
      thereto and substitutions therefor (hereinafter collectively called
“Collateral”), and including, without limitation, all of the following now owned
      or hereafter owned or acquired by or on behalf of the Debtor:

    

    
      	
              (a)

            	
              all
                Inventory of whatever kind and wherever
                situate;

            

    

    

    
      	
              (b)

            	
              all
                equipment (other than Inventory) of whatever kind and wherever situate,
                including, without limitation, all machinery, tools, apparatus, plant,
                furniture, fixtures and vehicles of whatsoever nature or
                kind;

            

    

    

    
      	
              (c)

            	
              all
                accounts and book debts and generally all debts, dues, claims, choses
                in
                action and demands of every nature and kind howsoever arising or
                secured
                including letters of credit and advices of credit, which are now
                due,
                owing or accruing or growing due to or owned by or which may hereafter
                become due, owing or accruing or growing due to or owned by the Debtor
                (“Debts”);

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              (d)

            	
              all
                deeds, documents, writings, papers, books of account and other books
                relating to or being records of Debts, Chattel Paper or Documents
                of Title
                or by which such are or may hereafter be secured, evidenced, acknowledged
                or made payable;

            

    

    

    
      	
              (e)

            	
              all
                contractual rights and insurance claims and all goodwill, patents,
                trademarks, copyrights, and other industrial
                property;

            

    

    
      	 	
               

            

    

    
      	
              (f)

            	
              without
                in any way limiting the generality of the foregoing, any motor vehicles,
                trailers, mobile homes and airplanes

            

    

    

    2. The
      Security Interest granted hereby shall not extend or apply to and Collateral
      shall not include:

    

    
      	
              (a)

            	
              any
                personal property held in trust by the Debtor and lawfully belonging
                to
                others; or

            

    

    

    
      	
              (b)

            	
              the
                last day of the term of any lease or agreement therefor but upon
                the
                enforcement of the Security Interest the Debtor shall stand possessed
                of
                such last day in trust to assign the same to any person acquiring
                such
                term.

            

    

    

    3. The
      terms
“Goods”, “Chattel Paper”, “Documents of Title”, “Instruments”, “Intangibles”,
“Securities”, “proceeds”, “Inventory”, “accessions”, “Money”, “Accounts”,
“financing statements” and “financing change statements” whenever used herein
      shall be interpreted pursuant to their respective meanings when used in the
      Personal
      Property Security Act
      of
      Ontario as amended from time to time, which Act, including amendments thereto
      and any Act substituted therefor and amendments thereto is herein referred
      to as
      the “PPSA”. Provided always that the term “Goods” when used herein shall not
      include “consumer goods” of the Debtor as that term is defined in the PPSA, and
      the term “Inventory” when used herein shall include livestock and the young
      thereof after conception and crops that become such within one year of execution
      of this Security Agreement. Any reference herein to “Collateral” shall, unless
      the context otherwise requires, be deemed a reference to “Collateral or any part
      thereof”.

    

    INDEBTEDNESS
      SECURED

     

    4. The
      Security Interest granted hereby secures payment and performance of any and
      all
      obligations, indebtedness and liability of the Debtor to the Secured Party
      (including interest thereon) present or future, direct or indirect, absolute
      or
      contingent, matured or not, extended or renewed, wheresoever and howsoever
      incurred and any ultimate unpaid balance thereof and whether the same is from
      time to time reduced and thereafter increased or entirely extinguished and
      thereafter incurred again and whether the Debtor be bound alone or with another
      or others and whether as principal or surety (hereinafter collectively called
      the “Indebtedness”). If the Security Interest in the Collateral is not
      sufficient, in the event of default, to satisfy all Indebtedness of the Debtor,
      the Debtor acknowledges and agrees that the Debtor shall continue to be liable
      for any Indebtedness remaining outstanding and the Secured Party shall be
      entitled to pursue full payment thereof.

    

    5. Without
      limiting the generality of the foregoing, this Security Agreement, further
      secures any money spent by the Secured Party in acquiring, perfecting, defending
      or enforcing the Security Interest, liens, or charges provided for herein and
      in
      ensuring or otherwise perfecting the Secured Party’s interest in the
      Collateral.

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    6. This
      Security Agreement and the Security constituted herein shall not be deemed
      to be
      released or discharged, in whole or in part, by the payment or liquidation,
      at
      any time or times, of any sum or sums of money for the time being due or
      remaining unpaid by the Debtor to the Secured Party and the Debtor shall have
      no
      right whatsoever to claim any release or discharge of this Security Agreement
      or
      the security hereby constituted, unless and until the Secured Party shall have
      first received, and in writing acknowledged, the payment in full of all of
      the
      Indebtedness.

    

    7. The
      Security Interest created by this Agreement attaches when the Debtor has
      executed this Agreement.

    

    8. Except
      to
      the extent of any specifically mortgaged and charged assets referred to in
      paragraph 1(f) hereof, the Debtor may, in the ordinary course of its business
      and before demand is made by the Secured Party for payment of any Indebtedness
      owed to the Secured Party, process, sell or lease or otherwise for value deal
      with its property, including the right to use or consume any raw materials
      or
      supplies, so long as the use or consumption is in the ordinary course of the
      Debtor's business on commercially reasonable terms, pay its creditors and sell
      instruments and securities. The Debtor acknowledges that a “use or consumption”
in the ordinary course of the Debtor's business does not include a transfer
      in
      partial or total satisfaction of a debt or any bulk sale.

    

    REPRESENTATIONS
      AND WARRANTIES OF DEBTOR

     

    9. The
      Debtor represents and warrants and so long as this Security Agreement remains
      in
      effect shall be deemed to continuously represent and warrant to the Secured
      Party that:

    

    
      	
              (a)

            	
              the
                Collateral is genuine and owned by the Debtor free of all security
                interests, mortgages, liens, claims, charges or other encumbrances
                (hereinafter collectively called “Encumbrances”), save for the Security
                Interest and those Encumbrances hereafter approved in writing by
                the
                Secured Party, prior to their creation or
                assumption;

            

    

    

    
      	
              (b)

            	
              each
                Debt, Chattel Paper and Instrument constituting Collateral is enforceable
                in accordance with its terms against the party obligated to pay the
                same
                (the “Account Debtor”), and the amount represented by the Debtor to the
                Secured Party from time to time as owing by each Account Debtor or
                by all
                Account Debtors will be
                the correct amount actually and unconditionally owing by such Account
                Debtor or Account Debtors, except for normal cash discounts where
                applicable and no Account Debtor will have any defence, set off,
                claim or
                counterclaim against the Debtor which can be asserted against the
                Secured
                Party, whether in any proceeding to enforce Collateral or otherwise;
                and

            

    

    

    
      	
              (c)

            	
              the
                location specified as 130 Bridgland Avenue, Suite 100, Toronto, Ontario
                ,
                Canada M6A 1Z4 as the location of business operations and records
                are
                accurate and complete and with respect to Goods (including Inventory)
                constituting Collateral, the location specified herein are accurate
                and
                complete save for Goods in transit to such location and Inventory
                on lease
                or consignment, and all fixtures or Goods about to become fixtures
                and all
                crops and all oil, gas or other minerals to be extracted and all
                timber to
                be cut which forms part of the Collateral will be
                situate at the location.

            

    

    

    COVENANTS
      OF THE DEBTOR

     

    10. So
      long
      as this Security Agreement remains in effect the Debtor covenants and agrees
      with the Secured Party:

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    
      	
              (a)

            	
              to
                defend the Collateral against the claims and demands of all other
                parties
                claiming the same or an interest therein; to keep the Collateral
                free from
                all Encumbrances, hereafter approved in writing by the Secured Party,
                prior to their creation or assumption; and not to sell, exchange,
                transfer, assign, lease, or otherwise dispose of Collateral or any
                interest therein without the prior written consent of the Secured
                Party,
                provided always that, until default, the Debtor may, in the ordinary
                course of the Debtor's business, sell or lease Inventory and, subject
                to
                paragraph 8 hereof, use Money available to the
                Debtor;

            

    

    

    
      	
              (b)

            	
              to
                notify Secured Party promptly of:

            

    

    

    
      	 	
              (i)

            	
              any
                change in the information contained herein or in the Schedules hereto
                relating to the Debtor, the Debtor's business or
                Collateral;

            

    

    

    
      	 	
              (ii)

            	
              the
                details of any significant acquisition of Collateral by the
                Debtor;

            

    

    

    
      	 	
              (iii)

            	
              the
                debts or any claims or litigation affecting the Debtor or
                Collateral;

            

    

    

    
      	 	
              (iv)

            	
              any
                loss or damage to Collateral;

            

    

    

    
      	 	
              (v)

            	
              any
                default by any Account Debtor in payment or other performance of
                its
                obligations with respect to Collateral;
                and

            

    

    

    
      	 	
              (vi)

            	
              the
                return to or repossession by the Debtor of
                Collateral;

            

    

    

    
      	
              (c)

            	
              to
                keep the Collateral in good order, condition and repair and not to
                use
                Collateral in violation of the provisions of this Security Agreement
                or
                any other agreement relating to Collateral or any policy insuring
                Collateral or any applicable statute, law, by-law, rule, regulation
                or
                ordinance;

            

    

    

    
      	
              (d)

            	
              to
                do, execute, acknowledge and deliver such financing statements, financing
                change statements and further assignments, transfers, documents,
                acts,
                matters and things (including further schedules hereto) as may be
                reasonably requested by the Secured Party of or with respect to Collateral
                in order to give effect to these presents and to pay all costs for
                searches and filings in connection
                therewith;

            

    

    

    
      	
              (e)

            	
              to
                pay all taxes, rates, levies, assessments and other charges of every
                nature which may be lawfully levied, assessed or imposed against
                or in
                respect of the Debtor or Collateral as and when the same become due
                and
                payable;

            

    

    

    
      	
              (f)

            	
              to
                keep all of its property of an insurable nature insured in favour
                of the
                Secured Party to the full value thereof, with a reputable insurance
                company, against all risks, including loss or damage by fire, lightning,
                burglary, vandalism or theft and such other risks as the Secured
                Party may
                from time to time reasonably specify with the Secured Party named
                as first
                loss payee, and the Debtor will produce the last receipts for such
                insurance and a photocopy of the insurance policy to the Secured
                Party for
                inspection on demand;

            

    

    

    
      	
              (g)

            	
              to
                prevent Collateral, save Inventory sold or leased as permitted hereby,
                from being or becoming an accession to other property not covered
                by this
                Security Agreement;

            

    

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
      	
              (h)

            	
              to
                carry on and conduct the business of the Debtor in a proper and efficient
                manner and so as to protect and preserve the Collateral and to keep,
                in
                accordance with generally accepted accounting principles, consistently
                applied, proper books of account for Debtor's business as well as
                accurate
                and complete records concerning Collateral, and mark any and all
                such
                records and Collateral at the Secured Party's request so as to indicate
                the Security Interest;

            

    

    

    
      	
              (i)

            	
              to
                deliver to the Secured Party from time to time promptly upon
                request:

            

    

    

    
      	 	
              (i)

            	
              copies
                of any Documents of Title, Instruments, Securities and Chattel Paper
                constituting, representing or relating to
                Collateral;

            

    

    

    
      	 	
              (ii)

            	
              copies
                of all books of account and all records, ledgers, reports, correspondence,
                schedules, documents, statements, lists and other writings relating
                to
                Collateral for the purpose of inspecting, auditing or copying the
                same;

            

    

    

    
      	 	
              (iii)

            	
              copies
                of all financial statements prepared by or for the Debtor regarding
                the
                Debtor's business;

            

    

    

    
      	 	
              (iv)

            	
              copies
                of all policies and certificates of insurance relating to Collateral;
                and

            

    

    

    
      	 	
              (v)

            	
              copies
                of such information concerning Collateral, the Debtor and the Debtor's
                business and affairs as the Secured Party may reasonably
                request.

            

    

    

    
      	
              (j)

            	
              that
                the Debtor will not, without the prior written consent of the Secured
                Party:

            

    

    

    
      	 	
              (i)

            	
              make
                capital expenditures or pay on capital account any amount at all
                if the
                Debtor is in default under this Security
                Agreement;

            

    

    

    
      	 	
              (ii)

            	
              become
                guarantor of any obligation or become endorser in respect of any
                obligation or otherwise become liable upon any note or obligation,
                other
                than in the ordinary course of the Debtor’s business, unless the
                obligation or note is in favour of the Secured
                Party;

            

    

     

    
      	 	
              (iii)

            	
              lend
                any amount to shareholders, directors, or any other persons, firms
                or
                corporations;

            

    

    

    
      	 	
              (iv)

            	
              repay
                any loans or advances received by it from any shareholder or director
                of
                the company whether or not the same has matured or pay any interest,
                bonus
                or other sum in consideration of the obtaining or extension of such
                loan
                or other obligation;

            

    

    

    
      	
              (k)

            	
              to
                permit the Secured Party, by its officers or authorized agents at
                any time
                and from time to time during normal business hours, to enter the
                Debtor’s
                premises and to inspect the plant, machinery, equipment, goods and
                chattels and the operation thereof;
                and

            

    

    

    
      	
              (l)

            	
              to
                assume and pay when rendered, all reasonable fees and disbursements
                of the
                solicitors for the Secured Party in connection with the preparation
                and
                registration of this Security Agreement and of all other securities
                executed and delivered to the Secured Party in connection with any
                agreement between the parties and other work relevant
                hereto.

            

    

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    11. The
      Debtor shall not, except with the prior written consent of the Secured Party,
      create, grant or allow the taking of any other security interest in the
      Collateral or mortgaged property ranking in priority to or pari passu with
      the
      Security Interest, except that on the purchase after the date hereof of any
      property the Debtor may, at the time of purchase, allow the taking of or grant
      a
      security interest in the property purchased for the purpose of raising or
      securing the whole or part of the purchase money. The Debtor shall not, except
      with the prior written consent of the Secured Party, grant, sell or otherwise
      assign its Chattel Paper, however, the Creditor shall subordinate its position
      to any other asset-based lenders of Debtor.

    .

    USE
      AND VERIFICATION OF COLLATERAL

     

    12. Subject
      to compliance with the Debtor's covenants contained herein and specifically
      including paragraphs 10 and 11 hereof, the Debtor may, until default, possess,
      operate, collect, use and enjoy and deal with Collateral in the ordinary course
      of the Debtor's business in any manner not inconsistent with the provisions
      hereof; provided always that the Secured Party shall have the right at any
      time
      during normal business hours and from time to time to verify the existence
      and
      state of the Collateral in any manner the Secured Party may consider appropriate
      and the Debtor agrees to furnish all assistance and information and to perform
      all such acts as the Secured Party may reasonably request in connection
      therewith and for such purpose to grant to Secured Party or its agents access
      to
      all places where Collateral may be located and to all premises occupied by
      the
      Debtor.

    

    13. The
      Debtor also covenants with the Secured Party that:

    

    
      	
              (a)

            	
              all
                necessary corporate proceedings of the Debtor and all other things
                necessary have been done to authorize and make the creation and issue
                of
                this Security Agreement and its execution and delivery legal and
                valid;

            

    

    

    
      	
              (b)

            	
              neither
                the Debtor nor any subsidiary of the Debtor is subject to any litigation
                or proceedings before any court, administrative board or other tribunal
                which, if decided against the Debtor, would materially adversely
                affect
                its business, or financial status or the Collateral, and all material
                claims against and contingent liabilities of the Debtor have been
                disclosed to the Secured Party;

            

    

    

    
      	
              (c)

            	
              the
                Debtor is not a party to or bound by any contract or agreement which
                will
                materially adversely affect the business, properties, operations,
                or
                financial conditions, the Collateral of the
                Debtor;

            

    

    

    
      	
              (d)

            	
              the
                Debtor will forthwith on the happening of any loss or damage to the
                Collateral, furnish at its expense all necessary proofs and do all
                necessary acts to enable the Secured Party to obtain payment of insurance
                monies and that any insurance monies received may at the option of
                the
                Secured Party be applied to rebuilding, reinstating or repairing
                the
                Collateral or repairing or purchasing additional chattels or be paid
                to
                the Debtor or be applied or paid partly in one way and partly in
                another,
                or it may be applied in whole or in part on the monies from time
                to time
                owing hereunder or any part thereof whether then due or
                not;

            

    

    

    
      	
              (e)

            	
              the
                Debtor will observe and perform all its obligations and all matters
                and
                things necessary or expedient to be observed or performed under or
                by
                virtue of any lease, license, concession, agreement of any kind,
                or
                franchise whatsoever in order to preserve, protect and maintain all
                the
                rights of the Debtor thereunder;

            

    

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    
      	
              (f)

            	
              the
                Debtor will duly exercise every right of renewal of any lease, license,
                concession and franchise and will obtain new leases, licenses, concessions
                or franchises for the longest time or times, if advantageous, and
                upon the
                most favourable terms obtainable, including all rights of further
                renewal,
                and will forthwith assign to the Secured Party any new or renewal
                lease,
                license, concession or franchise which forms part of the
                Collateral;

            

    

    

    
      	
              (g)

            	
              the
                Debtor will not, without the prior written consent of the Secured
                Party,
                remove any goods or chattels forming part of the Collateral from
                Ontario.
                If any goods or chattels are removed from Ontario, except in the
                ordinary
                course of the Debtor’s business, the Debtor will forthwith notify the
                Secured Party and will effect the further registrations that are
                required
                to protect and maintain the mortgage and charge of this Security
                Agreement;

            

    

    

    
      	
              (h)

            	
              the
                Debtor will not sell, transfer, dispose or part with possession of
                or
                agree or attempt to sell, transfer, dispose or part with possession
                of the
                Collateral or any part thereof without the agreement of the Secured
                Party;

            

    

    

    
      	
              (i)

            	
              the
                Debtor will, at all times, maintain its corporate existence and will
                diligently conduct its business in a proper and efficient manner
                so as to
                preserve and protect the Collateral and will keep, or cause to be
                kept,
                proper books of account and make or cause to be made therein future
                entries of all dealings and transactions in relation to its business
                and
                will at reasonable times furnish or cause to be furnished to the
                Secured
                Party or its duly authorized agent any information relating to its
                business that the Secured Party reasonably requires;
                and

            

    

    

    
      	
              (j)

            	
              the
                Debtor shall from time to time, on request by the Secured Party,
                execute
                and deliver or cause to be executed and delivered to the Secured
                Party
                such further and other assurances, conveyances, mortgages, assignments,
                pledges and documents as the Secured Party may require for the purpose
                of
                perfecting the Secured Party’s security on all or any part of the
                Collateral, including after-acquired property other than Inventory,
                whether real property or chattels, and whether or not now charged
                by this
                Security Agreement.

            

    

    

    14. If
      the
      Debtor is in default, and at the option of the Secured Party and at any time
      without notice, the Secured Party may, but shall not be obligated
      to:

    

    
      	
              (a)

            	
              discharge
                taxes, liens or interest on Collateral or pay taxes on any real property
                or other Collateral;

            

    

    

    
      	
              (b)

            	
              perform
                or cause to be performed for and on behalf of the Debtor any action,
                condition, obligation or covenant that the Debtor fails or refuses
                to
                perform;

            

    

    

    
      	
              (c)

            	
              pay
                for repair, maintenance and preservation of Collateral or any real
                property;

            

    

    

    
      	
              (d)

            	
              collect
                by legal proceedings or otherwise endorse, receive and give receipts
                for
                all dividends, interest, principal payments and other sums now or
                hereafter payable on or on account of
                Collateral;

            

    

    

    
      	
              (e)

            	
              enter
                into any extension, reorganization, deposit, merger or consolidation
                agreement, or any agreement in any way relating to or affecting Collateral
                and in connection therewith may deposit or surrender control of such
                Collateral thereunder, accept other property in exchange for Collateral
                and duly perform such acts as it may deem proper; any money or property,
                including real property, received in exchange for Collateral shall
                be
                applied to the Indebtedness or thereafter held by the Secured Party
                pursuant to the provisions of this Security
                Agreement;

            

    

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    
      	
              (f)

            	
              make
                any compromise or settlement it deems desirable or proper with reference
                to Collateral;

            

    

    

    
      	
              (g)

            	
              insure,
                process and preserve Collateral;

            

    

    

    
      	
              (h)

            	
              cause
                Collateral to be transferred to its name or the name of its
                nominee;

            

    

    

    
      	
              (i)

            	
              exercise
                as to Collateral all the rights, powers and remedies of an owner.
                All
                advances, charges and expenses, including all solicitors’ fees on a
                solicitor and his client basis, incurred or paid by the Secured Party
                in
                exercising any right, power or remedy conferred by this Security
                Agreement, or any enforcement thereof, shall become a part of the
                Indebtedness secured by this Security Agreement and shall be paid
                to the
                Secured Party by the Debtor immediately and until repaid, shall be
                charged
                upon the security and shall bear interest at the same rate from the
                date
                of such payment.

            

    

    

    15. The
      last
      day of the term of a lease which forms part of the Collateral is excepted out
      of
      the mortgage and charge of this Security Agreement but the Debtor shall stand
      possessed of the reversion remaining in the Debtor of any leasehold premises
      for
      the time being charged as aforesaid in trust for the Secured Party for the
      purpose of this Security Agreement and shall assign and dispose of it as the
      Secured Party directs.

    

    SECURITIES

     

    16. If
      Collateral at any time includes Securities, and after default under this
      Security Agreement, the Debtor authorizes the Secured Party to transfer the
      same
      or any part thereof into its own name or that of its nominee(s) so that the
      Secured Party or its nominee(s) may appear on record as the sole owner thereof;
      provided that, until default, the Secured Party shall deliver promptly to the
      Debtor all notices or other communications received by it or its nominee(s)
      as
      such registered owner and, upon demand and receipt of payment of any necessary
      expenses thereof, shall issue to the Debtor or its order a proxy to vote and
      take all action with respect to such Securities. After default, the Debtor
      waives all right to receive any notices or communications received by the
      Secured Party or its nominee(s) as such registered owner and agrees that no
      proxy issued by the Secured Party to the Debtor or its order as aforesaid shall
      thereafter be effective.

    

    COLLECTION
      OF DEBTS

     

    17. After
      default under this Security Agreement, the Secured Party may notify all or
      any
      Account Debtors of the Security Interest and may also direct such Account
      Debtors to make all payments on Collateral to the Secured Party. The Debtor
      acknowledges that any payments on or other proceeds of Collateral received
      by
      the Debtor from Account Debtors, whether before or after notification of this
      Security Interest to Account Debtors and whether before or after default under
      this Security Agreement, shall be received and held by the
      Debtor in trust for the Secured Party and shall, on default by Debtor and on
      demand by the Secured Party, be forthwith turned over to the Secured
      Party.

    

    INCOME
      FROM AND INTEREST ON COLLATERAL

     

    18. 

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    
      	
              (a)

            	
              Until
                default, the Debtor reserves the right to receive any Money constituting
                income from or interest on Collateral and if the Secured Party receives
                any such Money prior to default, the Secured Party shall either credit
                the
                same against the Indebtedness or pay the same promptly to the
                Debtor.

            

    

    

    
      	
              (b)

            	
              After
                default, the Debtor will not request or receive any Money constituting
                income from or interest on Collateral and if the Debtor receives
                any such
                Money without any request by it, the Debtor will pay the same promptly
                to
                the Secured Party.

            

    

    

    INCREASES,
      PROFITS, PAYMENTS OR DISTRIBUTIONS

     

    19.

    (a) If
      default has occurred, the Debtor authorizes Secured Party:

    

    
      	 	
              (i)

            	
              to
                receive any increase in or profits on Collateral (other than Money)
                and to
                hold the same as part of Collateral. Money so received shall be treated
                as
                income for the purposes of paragraph 18 hereof and dealt with
                accordingly;

            

    

    

    
      	 	
              (ii)

            	
              to
                receive any payment or distribution upon redemption or retirement
                or upon
                dissolution and liquidation of the issuer of Collateral; to surrender
                such
                Collateral in exchange therefor and to hold any such payment or
                distribution as part of Collateral;

            

    

    

    
      	
              (b)

            	
              If
                the Debtor receives any such increase or profits (other than Money)
                or
                payments or distributions, the Debtor will deliver the same promptly
                to
                the Secured Party to be held by the Secured Party as herein
                provided.

            

    

    

    DISPOSITION
      OF MONEY

     

    20. Subject
      to any applicable requirements of the PPSA, all Money collected or received
      by
      the Secured Party pursuant to or in exercise of any right it possesses with
      respect to Collateral shall be applied on account of Indebtedness in such manner
      as the Secured Party deems best or, at the option of the Secured Party, may
      be
      held unappropriated in a collateral account or released to the Debtor, all
      without prejudice to the liability of the Debtor or the rights of the Secured
      Party hereunder, and any surplus shall be accounted for as required by
      law.

    

    EVENTS
      OF DEFAULT

     

    21. The
      happening of any of the following events or conditions shall constitute default
      hereunder (any one of which is herein referred to as “default”):

    

    
      	
              (a)

            	
              the
                nonpayment when due, whether by demand, acceleration or otherwise,
                of any
                principal or interest forming part of Indebtedness or the failure
                of the
                Debtor to observe or perform any obligation, covenant, term, provision
                or
                condition contained in this Security Agreement or any other agreement
                between the Debtor and the Secured
                Party;

            

    

    

    
      	
              (b)

            	
              the
                bankruptcy or insolvency of the Debtor; the filing against the Debtor
                of a
                petition in bankruptcy; the making of an authorized assignment for
                the
                benefit of creditors by the Debtor; the appointment of a receiver
                or
                trustee for the Debtor or for any assets of the Debtor or the institution
                by or against the Debtor of any other type of insolvency proceeding
                under
                the Bankruptcy
                Act
                (Canada) or the Bankruptcy
                and Insolvency Act
                (Canada) or otherwise;

            

    

    

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    
      	
              (c)

            	
              the
                institution by or against the Debtor of any formal or informal proceeding
                for the dissolution or liquidation of, settlement of claims against
                or
                winding up of affairs of the
                Debtor;

            

    

    

    
      	
              (d)

            	
              if
                any Encumbrance affecting Collateral becomes enforceable against
                Collateral;

            

    

    

    
      	
              (e)

            	
              it
                the Debtor ceases or threatens to cease to carry on business or makes
                or
                agrees to make a bulk sale of assets without complying with applicable
                law
                or commits or threatens to commit an act of
                bankruptcy;

            

    

    

    
      	
              (f)

            	
              if
                any execution, sequestration or other process of any court becomes
                enforceable against the Debtor or if a distress or analogous process
                is
                levied upon the assets of the Debtor or any part
                thereof;

            

    

    

    
      	
              (g)

            	
              if
                any certificate, statement, representation, warranty or audit report
                heretofore or hereafter furnished by or on behalf of the Debtor pursuant
                to or in connection with this Security Agreement or otherwise (including,
                without limitation, the representations and warranties contained
                herein)
                or as an inducement to the Secured Party to extend any credit to
                or to
                enter into this or any other agreement with the Debtor, proves to
                have
                been false in any material respect at the time as of which the facts
                therein set forth were stated or certified, or proves to have omitted
                any
                substantial contingent or unliquidated liability or claim against
                the
                Debtor or if upon the date of execution of this Security Agreement,
                there
                shall have been any material adverse change in any of the facts disclosed
                by any such certificate, representation, statement, warranty or audit
                report, which change shall not have been disclosed to the Secured
                Party at
                or prior to the time of such
                execution;

            

    

    

    
      	
              (h)

            	
              if
                there is a default, in any manner whatsoever by the Debtor under
                any loan
                agreement, security agreement, or any other agreement whatsoever,
                including any promissory note, with or payable to any other creditor
                of
                Debtor their respective agents, successors or assigns, or any other
                party.

            

    

    

    ACCELERATION

     

    22. The
      Secured Party, in its sole discretion, may, in the event of default, declare
      all
      or any part of Indebtedness which is not by its terms payable on demand to
      be
      immediately due and payable, without demand or notice of any kind; or, if
      Secured Party in its discretion considers itself insecure or that the
      Collateral, or any part thereof, is in jeopardy, or that it believes that the
      prospect of payment is or is about to be impaired or that the Collateral, or
      any
      part thereof, is or is about to be placed in jeopardy. The provisions of this
      paragraph are not intended in any way to affect any rights of the Secured Party
      with respect to any Indebtedness which may now or hereafter be payable on
      demand.

    

    REMEDIES

     

    23. Upon
      default, and at any time thereafter:

    

    
      	
              (a)

            	
              all
                Indebtedness and obligations due or payable by the Debtor to the
                Secured
                Party secured hereby shall immediately become fully due and payable
                all
                without prior demand therefor;

            

    

    

    
      	
              (b)

            	
              the
                Secured Party may appoint or re-appoint by instrument in writing,
                any
                person or persons, whether an officer or officers or an employee
                or
                employees of the Secured Party or not, to be a receiver or receivers
                (hereinafter called a “Receiver”, which term when used herein shall
                include a receiver and manager) of Collateral (including any interest,
                income, profits or proceeds therefrom) and may remove any Receiver
                so
                appointed and appoint another in its stead. Any such Receiver shall,
                so
                far as concerns responsibility for its acts, be deemed the agent
                of the
                Debtor and not the Secured Party, and the Secured Party shall not
                be in
                any way responsible for any misconduct, negligence, or non-feasance
                on the
                part of any such Receiver, its servants, agents or employees. Subject
                to
                the provisions of the instrument appointing the Receiver, any such
                Receiver shall have power to take possession of Collateral, to preserve
                Collateral or its value, to carry on or concur in carrying on all
                or any
                part of the business of the Debtor and to sell, lease or otherwise
                dispose
                of or concur in selling, leasing or otherwise disposing of Collateral.
                To
                facilitate the foregoing powers, any such Receiver may, to the exclusion
                of all others, including the Debtor, enter upon, use and occupy all
                premises owned or occupied by the Debtor wherein Collateral may be
                situate, maintain Collateral upon such premises, borrow money on
                a secured
                or unsecured basis and use Collateral directly in carrying on the
                Debtor's
                business or as security for loans or advances to enable the Receiver
                to
                carry on the Debtor's business or otherwise, as such Receiver shall,
                in
                its discretion, determine. Except as may be otherwise directed by
                the
                Secured Party, all Money received from time to time by such Receiver
                in
                carrying out his appointment shall be received in trust for and paid
                over
                to the Secured Party. Every such Receiver may, in the discretion
                of the
                Secured Party, be vested with all or any of the rights and powers
                of the
                Secured Party;

            

    

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    
      	
              (c)

            	
              the
                Secured Party may, either directly or through its agents or nominees,
                exercise any or all of the powers and rights given to a Receiver
                by virtue
                of the foregoing sub-paragraph (b);

            

    

    

    
      	
              (d)

            	
              the
                Secured Party may take possession of, collect, demand, sue on, enforce,
                recover and receive Collateral and give valid and binding receipts
                and
                discharges therefor and in respect thereof and, upon default, the
                Secured
                Party may sell, lease or otherwise dispose of Collateral in such
                manner,
                at such time or times and place or places, for such consideration
                and upon
                such terms and conditions as to the Secured Party may seem
                reasonable;

            

    

    

    
      	
              (e)

            	
              in
                addition to those rights granted herein and in any other agreement
                now or
                hereafter in effect between the Debtor and the Secured Party and
                in
                addition to any other rights the Secured Party may have at law or
                in
                equity, the Secured Party shall have, both before and after default,
                all
                rights and remedies of a secured party under the PPSA and the Business
                Corporations Act
                of
                Ontario; provided always, that the Secured Party shall not be liable
                or
                accountable for any failure to exercise its remedies, take possession
                of,
                collect, enforce, realize, sell, lease or otherwise dispose of Collateral
                or to institute any proceedings for such purposes. Furthermore, the
                Secured Party shall have no obligation to take any steps to preserve
                rights against prior parties to any Instrument or Chattel Paper whether
                Collateral or proceeds and whether or not in the Secured Party's
                possession and shall not be liable or accountable for failure to
                do
                so;

            

    

    

    
      	
              (f)

            	
              the
                Debtor acknowledges that the Secured Party or any Receiver appointed
                by it
                may take possession of Collateral wherever it may be located and
                by any
                method permitted by law and the Debtor agrees upon request from the
                Secured Party or any such Receiver, to assemble and deliver possession
                of
                Collateral at such place or places as
                directed;

            

    

    

    
      	
              (g)

            	
              the
                Debtor agrees to pay all costs, charges and expenses reasonably incurred
                by the Secured Party or any Receiver appointed by it, whether directly
                or
                for services rendered (including reasonable solicitors and auditors
                costs
                and other legal expenses and Receiver remuneration), in operating
                the
                Debtor's business, in preparing or enforcing this Security Agreement,
                taking and maintaining custody of, preserving, repairing, processing,
                preparing for disposition and disposing of Collateral and in enforcing
                or
                collecting Indebtedness and all such costs, charges and expenses,
                together
                with any amounts owing as a result of any borrowing by the Secured
                Party
                or any Receiver appointed by it, as permitted hereby, shall be a
                first
                charge on the proceeds of realization, collection or disposition
                of
                Collateral and shall be secured
                hereby;

            

    

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    
      	
              (h)

            	
              the
                Secured Party will give the Debtor such notice, if any, of the date,
                time
                and place of any public sale or of the date after which any private
                disposition of Collateral is to be made, as may be required by the
                PPSA;

            

    

    

    
      	
              (i)

            	
              for
                purposes of removal and possession of the Collateral, the Secured
                Party or
                its representatives may enter any premises of the Debtor at any time
                without legal process or any other premises where Collateral or real
                property are located, and the Debtor hereby waives and releases the
                Secured Party of and from any and all claims in connection therewith
                or
                arising therefrom; and

            

    

    

    
      	
              (j)

            	
              the
                Receiver shall be entitled to borrow money on the Collateral; but
                nothing
                done under or pursuant to the powers herein shall render the Secured
                Party
                a mortgagee in possession.

            

    

    

    24. Without
      in any way limiting the generality of paragraph 23 hereof, a Receiver appointed
      pursuant to this Security Agreement or pursuant to court order shall be entitled
      to exercise all rights conferred by the Business
      Corporations Act of
      Ontario and the PPSA and by way of addition to and without limiting those
      rights, such Receiver shall have the right and power:

    

    
      	
              (a)

            	
              to
                take possession of and realize on all Collateral and substitutions
                and
                proceeds therefrom;

            

    

    

    
      	
              (b)

            	
              to
                make and effect all such repairs, improvements and insurances as
                it shall
                think fit, and renew such of the plant, machinery and any other assets
                of
                the Debtor whatsoever as shall be worn out, lost or otherwise become
                unserviceable;

            

    

    

    
      	
              (c)

            	
              to
                appoint managers, accountants, lawyers, employees, workmen and agents,
                for
                the aforesaid purpose upon such terms as to remuneration or otherwise
                as
                the Receiver may determine and the Secured Party
                authorize;

            

    

    

    
      	
              (d)

            	
              to
                carry on or concur in carrying on the business of the Debtor or any
                part
                thereof and may exercise all powers herein conferred upon the Secured
                Party and for this purpose, to borrow money on the Collateral, with
                the
                written consent of the Secured Party, in priority to this Security
                Agreement or otherwise;

            

    

    

    
      	
              (e)

            	
              to
                make any arrangement or compromise which it shall think expedient
                in the
                interests of the Secured Party;

            

    

    

    
      	
              (f)

            	
              to
                exercise any powers conferred or delegated by the Secured Party;
                and
                

            

    

    

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    
      	
              (g)

            	
              to
                do all such other acts and things as may be considered to be incidental
                or
                conducive to any of the matters and powers aforesaid and which the
                Receiver may or can lawfully do as agent for the
                Debtor.

            

    

    

    25. The
      Receiver shall not be liable for any loss of any kind whatsoever unless it
      is
      caused by the Receiver’s own negligence or willful default. The Receiver shall
      be considered to be the agent of the Debtor and the Debtor shall be solely
      responsible for the Receiver’s acts, defaults and remuneration.

    

    MISCELLANEOUS

     

    26. This
      Security Agreement, in addition to being a security agreement for the purposes
      of the PPSA, is a debenture for the purposes of the Business
      Corporations Act
      of
      Ontario and is a negotiable instrument. For the purpose of registering or filing
      this Security Agreement in any registry office or any other governmental office
      or public record, this Security Agreement may be made in two or more
      counterparts and any counterpart so registered or filed shall be deemed to
      be a
      negotiable instrument.

    

    27. The
      Debtor hereby authorizes the Secured Party to file such financing statements,
      financing change statements and other documents and do such acts, matters and
      things (including completing and adding schedules hereto identifying Collateral
      or any permitted Encumbrances affecting Collateral or identifying the locations
      at which the Debtor's business is carried on and Collateral and records relating
      thereto are situate) as the Secured Party may deem appropriate to perfect on
      an
      ongoing basis and continue the Security Interest, to protect and preserve
      Collateral and to realize upon the Security Interest and the Debtor hereby
      irrevocably constitutes and appoints the Secured Party, if the Secured Party
      is
      an individual, or the President of the Secured Party, if the Secured Party
      is a
      corporation, the true and lawful attorney of the Debtor, with full power of
      substitution, to do any of the foregoing in the name of the Debtor whenever
      and
      wherever it may be deemed necessary or expedient.

    

    28. Without
      limiting any other right of the Secured Party, whenever Indebtedness is
      immediately due and payable or the Secured Party has the right to declare
      Indebtedness to be immediately due and payable (whether or not it has so
      declared), Secured Party may, in its sole discretion, set off against
      Indebtedness any and all accounts then owed to the Debtor by the Secured Party
      in any capacity, whether or not due, and the Secured Party shall be deemed
      to
      have exercised such right to set off immediately at the time of making its
      decision to do so even though any charge therefor is made or entered on the
      Secured Party's records subsequent thereto.

    

    29. Upon
      the
      Debtor's failure to perform any of its duties hereunder, the Secured Party
      may,
      but shall not be obligated to, perform any or all of such duties, and the Debtor
      shall pay to the Secured Party, forthwith upon written demand therefor, an
      amount equal to the expense incurred by the Secured Party in so doing plus
      interest thereon from the date such expense is incurred until it is paid at
      the
      rate of the Bank of Montreal prime commercial lending rate plus five per cent
      (5%) per annum.

    

    30. The
      Secured Party may grant extensions of time and other indulgences, take and
      give
      up security, accept compositions, compound, compromise, settle, grant releases
      and discharges and otherwise deal with the Debtor, debtors of the Debtor,
      sureties and others and with Collateral and other security as the Secured Party
      may see fit without prejudice to the liability of the Debtor or the Secured
      Party's right to hold and realize the Security Interest. Furthermore, the
      Secured Party may demand, collect and sue on Collateral in either the Debtor's
      or the Secured Party's name, at the Secured Party's option, and may endorse
      the
      Debtor's name on any and all cheques, commercial paper, and any other
      Instruments pertaining to or constituting Collateral.

    

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    31. No
      delay
      or omission by the Secured Party in exercising any right or remedy hereunder
      or
      with respect to any Indebtedness shall operate as a waiver thereof or of any
      other right or remedy, and no single or partial exercise thereof shall preclude
      any other or further exercise thereof or the exercise of any other right or
      remedy. Furthermore, the Secured Party may remedy any default by the Debtor
      hereunder or with respect to any Indebtedness in any reasonable manner without
      waiving the default remedied and without waiving any other prior or subsequent
      default by the Debtor. All rights and remedies of Secured Party granted or
      recognized herein are cumulative and may be exercised at any time and from
      time
      to time independently or in combination.

    

    32. The
      Debtor waives presentment, protest and notice of protest of any Instrument
      constituting Collateral at any time held by the Secured Party on which the
      Debtor is in any way liable and, subject to paragraph 23(h) hereof, notice
      of
      any other action taken by the Secured Party.

    

    33. This
      Security Agreement shall enure to the benefit of and be binding upon the parties
      hereto and their respective heirs, executors, administrators, successors and
      assigns. In any action brought by an assignee of this Security Agreement and
      the
      Security Interest or any part thereof to enforce any rights hereunder, the
      Debtor shall not assert against the assignee any claim or defence which the
      Debtor now has or hereafter may have against the Secured Party. If more than
      one
      Debtor executes this Security Agreement the obligations of such Debtors
      hereunder shall be joint and several.

    

    34. Save
      for
      any schedules which may be added hereto pursuant to the provisions hereof,
      no
      modification, variation or amendment of any provision of this Security Agreement
      shall be made except by a written agreement, executed by the parties hereto
      and
      no waiver of any provision hereof shall be effective unless in
      writing.

    

    35. Subject
      to the requirements of paragraph 23(h) hereof, whenever either party hereto
      is
      required or entitled to notify or direct the other or to make a demand or
      request upon the other, such notice, direction, demand or request shall be
      in
      writing and shall be sufficiently given, in the case of the Secured Party,
      if
      delivered to it or sent by prepaid registered mail addressed to it at its
      address herein set forth or as changed pursuant hereto and, in the case of
      the
      Debtor, if delivered to it or if sent by prepaid registered mail addressed
      to it
      at its last address known to the Secured Party. Either party may notify the
      other pursuant hereto of any change in such party's principal address to be
      used
      for the purposes hereof.

    

    36. This
      Security Agreement and the security afforded hereby is in addition to and not
      in
      substitution for any other security now or hereafter held by the Secured Party
      and is, and is intended to be a continuing Security Agreement and shall remain
      in full force and effect until the Secured Party, if the Secured Party is an
      individual, or the President of the Secured Party, if the Secured Party is
      a
      corporation, shall actually receive written notice of its discontinuance and,
      not withstanding such notice, shall remain in full force and effect thereafter
      until all Indebtedness contracted for or created before the receipt of such
      notice by the Secured Party, and any extensions or renewals thereof (whether
      made before or after receipt of such notice) together with interest accruing
      thereon after such notice and all amounts otherwise secured by this Security
      Agreement, shall be paid in full.

    

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    37. The
      headings used in this Security Agreement are for convenience only and are not
      to
      be considered a part of this Security Agreement and do not in any way limit
      or
      amplify the terms and provisions of this Security Agreement.

    

    38. When
      the
      context so requires, the singular number shall be read as if the plural were
      expressed and the provisions hereof shall be read with all grammatical changes
      necessary depending upon the person referred to being a male, female, firm
      or
      corporation.

    

    39. In
      the
      event any provision of this Security Agreement, as amended from time to time,
      shall be deemed invalid or void, in whole or in part, by any Court of competent
      jurisdiction, the remaining terms and provisions of this Security Agreement
      to
      the maximum extent possible shall remain in full force and effect.

    

    40. Nothing
      herein contained shall in any way obligate the Secured Party to grant, continue,
      renew, extend time for payment of or accept anything which constitutes or would
      constitute Indebtedness.

    

    41. The
      Debtor acknowledges and agrees that in the event it amalgamates with any other
      corporation or corporations it is the intention of the parties hereto that
      the
      term the “Debtor” when used herein shall apply to each of the amalgamating
      corporations and to the amalgamated corporation, such that the Security Interest
      granted hereby

    

    
      	
              (a)

            	
              shall
                extend to “Collateral” (as that term is herein defined) owned by each of
                the amalgamating corporations and the amalgamated corporation at
                the time
                of amalgamation and to any “Collateral” thereafter owned or acquired by
                the amalgamated corporation; and

            

    

    

    
      	
              (b)

            	
              shall
                secure the “Indebtedness” (as that term is herein defined) of each of the
                amalgamating corporations and the amalgamated corporation to the
                Secured
                Party at the time of amalgamation and any Indebtedness of the amalgamated
                corporation to the Secured Party thereafter arising. The Security
                Interest
                shall attach to Collateral owned by each corporation amalgamating
                with the
                Debtor, and by the amalgamated corporation, at the time of amalgamation,
                and shall attach to any “Collateral” thereafter owned or acquired by the
                amalgamated corporation when such becomes owned or is
                acquired.

            

    

    

    42. The
      definitions of terms in this Agreement which are defined in the PPSA have the
      meaning respectively ascribed to them in that Act and in this Agreement,
      expressly or by implication. This Security Agreement shall be governed by the
      laws of [province]. Any reference to this “Security Agreement” shall be a
      reference to this agreement reflected on this and the preceding fifteen (15)
      pages and any paragraph reference, unless otherwise stated, is a reference
      to
      the corresponding paragraph of this Security Agreement.

    

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    COPY
      OF AGREEMENT

     

    
      	
              43.

            	
              The
                Debtor hereby acknowledges receipt of a copy of this Security
                Agreement.

            

    

    

    

    IN
      WITNESS WHEREOF
      the
      parties hereto have duly executed this Agreement, duly attested by their
      respective and proper signing officers duly authorized in that behalf, effective
      the day and year first above written.

    

    
      	 	
              IDENTICA
                CORP.

            
	 	 
	 	 
	 	
              Per: /s/
                Terry Wheeler,
                President                 
                

            
	 	 
	 	
              
                Per: /s/
                  Francine Foster,
                  Secretary                
                  

              

            
	 	 
	 	 
	 	
              EROOMSYSTEM
                TECHNOLOGIES,
                INC.

            
	 	 
	 	
              
                Per:
                  /s/ David
                  Gestetner                                
                  

              

            
	 	 

    

    

    
      
        
        

      

      
        -16-Unassociated Document

     

    
 

    Identica
      Holdings Corporation

    (A
      Nevada
      corporation)

    

    

    

    

    

    

    

    
      
        

      

    

    SUBSCRIPTION
      DOCUMENTS

    

    

    
      

    

    

    

    Name
      of
      Subscriber: _______________________

    

    Subscriber
      Number: _______________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    INSTRUCTIONS
      TO SUBSCRIBERS

     

    Persons
      wishing to subscribe for a minimum of 1 unit and a maximum aggregate of 100
      units, with each unit consisting of (i) one (1) $10,000 principal amount Series
      A Redeemable Convertible Debenture and (ii) warrants to purchase shares of
      common stock, par value $.001 (the Debenture and warrant hereinafter being
      referred to as a “Unit”), from Identica Holdings Corporation, a Nevada
      corporation (the “Corporation), are required to complete the documents in this
      package. 

     

    Please
      comply with the following instructions:

     

    1. Please
      complete and sign the Subscription Agreement and Accredited Investor Suitability
      Questionnaire provided to you. In those cases in which the Units will be
      held in joint ownership, all parties must sign.

     

    2. Your
      check or wire transfer in the amount of the investment should be made payable
      to
      the Company. All wire transfers should be sent to the Company in accordance
      with
      the wire transfer instructions attached hereto as Exhibit “A.”

     

    SPECIAL
      SUBSCRIPTION INSTRUCTIONS AND CERTIFICATE

     

    FOR
      CORPORATION, PARTNERSHIP AND TRUST SUBSCRIBERS

     

    If
      the
      Subscriber is a corporation, partnership, trust or other entity, the following
      additional instructions must be followed. Information additional to that
      requested below may also be required in some cases.

     

    1. Corporations,
      partnerships and trusts must have the Subscription Agreement completed and
      executed by the authorized corporate officer, general partner or trustee who
      is
      making the investment decision on behalf of the corporation, partnership or
      trust.

     

    2. Corporations,
      partnerships and trusts must provide the following information:

     

    (a) Corporations
      must attach a copy of their currently effective Articles of
      Incorporation.

     

    (b) Partnerships
      must attach a copy of their currently effective partnership agreement, including
      the date of formation and a list of all the partners.

     

    (c) Trusts
      must attach a copy of their currently effective trust instrument authorizing
      investments by trustee.

     

    The
      authorized corporate officer, general partner or trustee must complete, date,
      and sign the Certificate set forth on page 9 hereof.

     

    
      
        
        

      

      
        -
          1 -

        
          

        

      

      
        
        

      

    

     

    SUBSCRIPTION
      AGREEMENT

     

    

    
      	 	
              Name(s) of
                Subscriber(s):

            	
              Total
                Subscription Price:

            	 
	 	 	 	 
	 	
              __________________________

            	 	 
	 	 	 	 
	 	
              __________________________

            	
              $10,000
                per Unit

            	 
	 	 	 	 

    

     

    Gentlemen:

     

    1. Subscription.
      The
      undersigned (the “Subscriber”),
      intending to be legally bound, hereby irrevocably subscribes for and agrees
      to
      purchase from Identica Holdings Corporation, a Nevada corporation (the
“Corporation”),
      one
      or more Units, with a minimum of 1 Unit and a maximum aggregate of 100 Units,
      in
      the principal amount set forth above in accordance with the terms of this
      Subscription Agreement (the “Subscription
      Agreement”).

     

    2. Subscription
      Instruments.
      The
      Subscriber hereby tenders the following materials (the “Subscription
      Materials”),
      all
      of which have been duly completed and executed by the Subscriber:

     

    a. A
      check
      or wire transfer, in the amount of the total subscription price, made payable
      to
      the Escrow agent. All wire transfers should be sent to the Escrow agent in
      accordance with the wire transfer instructions attached hereto as Exhibit “A.”;

     

    b. One
      copy
      of this Subscription Agreement; and

     

    c. One
      copy
      of the Accredited Investor Suitability Questionnaire.

     

    3. Acceptance
      or Rejection of Subscription.
      The
      Subscriber understands and agrees that:

     

    a. The
      Corporation in its sole discretion reserves the right to accept or reject this
      or any other subscription, in whole or in part, and in any order.

     

    b. If
      this
      subscription is accepted, the proceeds delivered herewith shall be used to
      admit
      the subscribers whose subscriptions were accepted by the Corporation;
      and

     

    c. If
      this
      subscription is rejected, the Subscription Documents and the subscription funds
      will be promptly returned to the Subscriber. No interest will be paid on any
      subscription funds.

     

    4. Representations
      and Warranties.
      The
      Subscriber hereby represents and warrants to the Corporation as
      follows:

     

    a. The
      Subscriber understands the business in which the Corporation will be engaged
      and
      has such knowledge and experience in financial and business matters that he
      is
      capable of evaluating the merits and risks of an investment in the Corporation
      and making an informed investment decision with respect thereto. He has obtained
      sufficient information to evaluate the merits and risks of the investment and
      to
      make such a decision. 

     

    b. The
      Subscriber and his attorneys, investment advisors, business advisors, tax
      advisors and accountants have had sufficient access to all documents and records
      pertaining to the Corporation and this proposed investment in the Units.
      Additionally, the Subscriber and all of his advisors have had the opportunity
      to
      ask questions and receive answers concerning the terms and conditions of the
      offering and other matters pertaining to this investment, and all such questions
      have been answered to the satisfaction of the Subscriber. The Subscriber and
      all
      of his advisors have had an opportunity to obtain any additional information
      which the Corporation possesses, or can acquire without unreasonable effort
      or
      expense, necessary to verify the accuracy of the information furnished to the
      Subscriber, if any;

     

    c. The
      Subscriber (i) has adequate means of providing for his current needs and
      possible personal contingencies and those of his family, if applicable, in
      the
      same manner as he would have been able to provide prior to making the investment
      in the Units, (ii) has no need for liquidity in this investment,
      (iii) is aware of and able to bear the risks of this investment for an
      indefinite period of time, and (iv) is presently able to afford a complete
      loss of such investment;

    

    
      
        
          
          

        

        
          -
            2 -

          
            

          

        

        
          
          

        

      

    

     

    d. The
      Subscriber recognizes that an investment in the Units involves significant
      risks, including, without limitation, the potential loss of the Subscriber’s
      entire investment;

     

    e. The
      Subscriber understands that none of the Units have been registered under the
      Securities Act of 1933, as amended (the “Securities
      Act”),
      or
      the securities laws of any state in reliance upon exemptions therefrom for
      private offerings. The Subscriber understands that the Units must be held
      indefinitely unless the sale thereof is subsequently registered under the
      Securities Act and applicable state securities laws or exemptions from such
      registration are available. All certificates evidencing the Subscriber’s
      ownership of the Units will bear a legend stating that the Units have not been
      registered under the Securities Act or state securities laws and they may not
      be
      resold unless they are registered under the Securities Act and applicable state
      securities laws or exempt therefrom.

     

    f. The
      Units are being purchased solely for the Subscriber’s account for
      investment and not for the account of any other person and not with a view
      to or
      for distribution, assignment or resale in connection with any distribution
      within the meaning of the Securities Act, and no other person has a direct
      or
      indirect beneficial interest in such Units. The Subscriber represents that
      he
      has no agreement, understanding, commitment or other arrangement with any person
      and no present intention to sell, transfer or assign any Units;

     

    g. The
      Subscriber realizes that he may not be able to sell or dispose of any of the
      Units and that no market of any kind (public or private) may be available
      for any of the Units. In addition, the Subscriber understands that his right
      to
      transfer the Units will be subject to restrictions contained in applicable
      Federal and state securities laws;

     

    h. All
      information which the Subscriber has provided to the Corporation concerning
      himself, his financial position and his knowledge of financial and business
      matters, including all information contained in this Subscription Agreement,
      is
      correct and complete as of the date set forth on the signature page hereof,
      and
      if there should be any adverse change in such information prior to his
      subscription being accepted, he will immediately provide the Corporation with
      such information;

     

    i. The
      Subscriber’s principal residence (if subscriber is an individual) or
      principal business address, as applicable, is in the State of _______________,
      and the Subscriber has no present intention to move such residence or principal
      business address, as applicable, from such State;

     

    j. Neither
      the Subscriber nor any of his advisors are relying on any financial projections
      in connection with determining the merits of an investment in the Units. The
      Subscriber understands and acknowledges that no representations concerning
      the
      accuracy of information or financial projections, if any, are being made and
      he
      and all of his advisors have completely disregarded such information or
      financial projections, if any, in determining whether to invest in the
      Units;

     

    k. The
      Subscriber understands that the Corporation may at any time, in its sole
      discretion, arrange for additional indebtedness and the offer and sale of
      additional shares of its capital stock to current or additional shareholders,
      at
      such prices and in such amounts as it, in its sole discretion, may determine
      to
      be in the best interests of the Corporation;

     

    l. The
      Subscriber is unaware of, is in no way relying on, and did not become aware
      of
      the offering of the Units through or as a result of, any form of general
      solicitation or general advertising, including, without limitation, any article,
      notice, advertisement or other communication published in any newspaper,
      magazine or similar media or broadcast over television or radio, in connection
      with the offering and sale of the Units and is not subscribing for Units and
      did
      not become aware of the offering of the Units through or as a result of any
      seminar or meeting to which the Subscriber was invited by, or any solicitation
      of a subscription by, a person not previously known to the Subscriber in
      connection with investments in Units generally;

     

    m. The
      Subscriber has taken no action which would give rise to any claim by any person
      for brokerage commissions, finders’ fees or the like relating to this Agreement
      or the transactions contemplated hereby; and

    

      
        
          
          

        

        
          -
            3 -

          
            

          

        

        
          
          

        

      

    n. The
      Subscriber has significant prior investment experience, including investment
      in
      development stage companies whose securities are not listed or traded. The
      Subscriber is knowledgeable about investment considerations in development
      stage
      companies. The investment is a suitable one for the Subscriber.

     

    5. The
      Subscriber understands and agrees that this subscription is subject to the
      following terms and conditions:

     

    a. This
      subscription is irrevocable and the execution and delivery of this Agreement
      will not constitute an agreement between the Subscriber and the Corporation
      until this Agreement has been accepted by the Corporation;

     

    b. The
      Corporation can, in it sole discretion, reject a subscription as soon as
      practicable after receipt of the Subscriber’s subscription. The Subscriber will
      be promptly notified by the Corporation as to whether his subscription has
      been
      accepted. If the Subscriber’s subscription is not accepted, his check or wire
      transfer amount (less any applicable bank charges) will be returned promptly
      and
      all of his obligations hereunder shall terminate; and

     

    c. This
      subscription is not transferable or assignable, either before or after
      acceptance hereof by the Corporation, and the Units issuable on account of
      this
      subscription will only be issued in the name of, and delivered to, the
      Subscriber.

     

    6. The
      representations, warranties and agreements made by the Subscriber herein have
      been made with the intent that they be relied upon by the Corporation for
      purposes of the Offering. The Subscriber further undertakes to notify the
      Corporation immediately of any change in any information supplied by the
      Subscriber. If more than one person is signing this Agreement, each
      representation, warranty and agreement shall be a joint and several
      representation, warranty and agreement of each such Subscriber.

     

    7. The
      Subscriber unconditionally agrees to indemnify and hold the Corporation, its
      officers, directors, employees, agents and shareholders or any other person
      who
      may be deemed to control the Corporation, and any of their counsel and
      accountants, harmless from any loss, liability, claim, damage or expense
      (including, without limitation, any and all expenses incurred in investigating,
      preparing or defending against any litigation commenced or threatened), arising
      out of the inaccuracy of any of the Subscriber’s, or his attorney’s or agent’s
      representations, warranties or statements or the breach of any of the agreements
      contained herein.

     

    8. This
      Agreement and the rights of the parties hereunder shall be governed by and
      construed in accordance with the laws of the State of Nevada, without regard
      to
      its conflicts of law principles. All parties hereto (i) agree that any
      legal suit, action or proceeding arising out of or relating to this Agreement
      shall be instituted only in a federal or state court in the State of Nevada,
      (ii) waive any objection which they may now or hereafter have to the laying
      of the venue of any such suit, action or proceeding as described in this Section
      8, and (iii) irrevocably submit to the jurisdiction of any federal or state
      court in the State of Nevada in any suit, action or proceeding, but such consent
      shall not constitute a general appearance or be available to any other person
      who is not a party to this Agreement.

     

    9. Subscription.
      The
      Subscriber hereby subscribes for an aggregate price of $_________ and has
      provided a certified or bank cashier’s check or wire transfer for that amount
      payable to the Escrow Account.

     

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

    TYPE
      OF OWNERSHIP:

    

    Please
      check one:

    

    
      	
              _______________

            	
              Individual
                (One signature required)

            
	 	 
	
              _______________

            	
              Joint
                tenants with rights of survivorship (All parties must
                sign)

            
	 	 
	
              _______________

            	
              Tenants
                by the Entirety (Both parties must sign)

            
	 	 
	
              _______________

            	
              Tenants
                in common (All parties must sign)

            
	 	 
	
              _______________

            	
              Corporation
                (Authorized officer must sign)

            
	 	 
	
              _______________

            	
              Other
                Entity (Specify type) (Authorized party must sign)

            
	 	 
	 	 
	
              EXACT
                REGISTRATION NAME(S) FOR
                SHARE(S)

            

    

    

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

    

     

    SIGNATURE
      PAGE FOR INDIVIDUAL INVESTORS

     

    IN
      WITNESS WHEREOF,
      the
      Subscriber, intending to be legally bound, has executed this Subscription
      Agreement as of the ___ of ____________, 2005.

    

    
      	 	
              INVESTOR

            
	 	 
	 	
              Signature:_____________________________

            
	 	
              Print
                Name:____________________________

            
	 	 
	 	 
	 	
              INVESTOR

            
	 	 
	 	
              Signature:

            
	 	
              Print
                Name:

            

    

    

    
      
        
        

      

      
        -
          6 -

        
          

        

      

      
        
        

      

    

    

     

    SIGNATURE
      PAGE FOR CORPORATE INVESTORS

     

    IN
      WITNESS WHEREOF,
      the
      Subscriber, intending to be legally bound, has executed this Subscription
      Agreement as of the ___ day of _____________, 2005. 

    

    
      	 	 
	 	_____________________________________
	 	
              Name
                of Corporation

            
	 	 
	 	
              By:________________________________________

            
	 	
              Signature
                of authorized representative

            
	 	 
	 	
              Title:_______________________________________

            
	 	
              Title
                of authorized representative

            

    

    

    
      
        
        

      

      
        -
          7 -

        
          

        

      

      
        
        

      

    

    

     

    SIGNATURE
      PAGE FOR PARTNERSHIP INVESTORS

     

    IN
      WITNESS WHEREOF,
      the
      Subscriber, intending to be legally bound, has executed this Subscription
      Agreement as of the ___ day of ____________, 2005.

    

    
      	 	 
	 	_____________________________________
	 	
              Name
                of Partnership

            
	 	 
	 	
              By:___________________________________

            
	 	
              Signature
                of general partner

            
	 	 
	 	
              Title:__________________________________

            
	 	
              Title
                of additional general partner if
                required

            

    

    

    
      
        
        

      

      
        -
          8 -

        
          

        

      

      
        
        

      

    

    

     

    SIGNATURE
      PAGE FOR TRUST INVESTORS

     

    IN
      WITNESS WHEREOF,
      the
      Subscriber, intending to be legally bound, has executed this Subscription
      Agreement as of the ___ day of ____________, 2005.

    

    
      	 	 
	 	_____________________________________
	 	
              Name
                of Trust

            
	 	 
	 	
              By:___________________________________

            
	 	
              Signature
                of Trustee

            
	 	 
	 	
              Title:__________________________________

            
	 	
              Title
                of additional Trustee if required

            

    

    

    
      
        
        

      

      
        -
          9 -

        
          

        

      

      
        
        

      

    

    

     

    CERTIFICATE
      FOR CORPORATE, PARTNERSHIP OR TRUST SUBSCRIBER

     

    The
      Subscriber, an authorized officer, trustee or general partner of
      _____________________________________________, hereby certifies
      that:

    

    (a) The
      Subscriber has been duly formed and is validly existing under the laws of the
      State of ____________, with full power and authority to invest in Identica
      Holding Corporation, a Nevada corporation; and

    

    (b) The
      Subscriber’s Subscription Agreement has been duly and validly authorized,
      executed and delivered on behalf of the Subscriber and, upon the Corporation’s
      acceptance of the Subscriber’s subscription, the Subscription Agreement will
      constitute the valid, binding and enforceable agreement of the
      Subscriber.

    
      	 	 	 
	 	 	 
	 	 	 
	 	 	
              Name
                of Subscriber

            
	 	 	 
	 	 	 
	 	 	 
	 	 	
              Signature
                of an authorized corporate officer, 

            
	 	 	
              general
                partner or trustee

            
	 	 	 
	 	 	 
	 	 	 
	
              Date

            	 	
              Title

            

    

    

    
      
        
        

      

      
        -
          10 -

        
          

        

      

      
        
        

      

    

    

     

    ACCEPTANCE

     

    IDENTICA
      HOLDINGS CORPORATION
      HEREBY ACCEPTS THE SUBSCRIPTION CONTAINED IN THIS SUBSCRIPTION
      AGREEMENT.

    

    
      	 	
              IDENTICA
                HOLDINGS CORPORATION

            
	 	 
	 	
              By:________________________________

            
	 	
              Name:______________________________

            
	 	
              Its:________________________________

            
	 	
              Date:_______________________________

            

    

     

    
      
        
        

      

      
        -
          11 -

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “A”

     

    WIRE
      INSTRUCTIONS

     

    

    
      	
              TO:

            	
              ESCROW
                ACCOUNT INFORMATION

            
	 	 
	
              ACCOUNT
                NUMBER:

            	
              ________________________

            
	 	 
	
              ABA
                ROUTING NUMBER:

            	
              ________________________

            
	 	 
	
              SWIFT
                CODE:

            	
              ________________________

            
	 	 
	
              BANK:

            	
              ________________________

            
	 	 
	
              BANK
                ADDRESS:

            	
              ________________________

            
	 	 
	 	
              ________________________

            
	 	 
	
              BANK
                CONTACT:

            	
              ________________________

            
	 	 
	
              BANK
                CONTACT PHONE #:

            	
              ________________________

            

    

    
      
        
        

      

      
        -
          12 -

        
          

        

      

      
        
        

      

    

     

      
        

      

    

    IDENTICA
      HOLDINGS CORPORATION

     

    ACCREDITED
      INVESTOR SUITABILITY QUESTIONNAIRE

     

    
      
        

      

       

    

    Instructions.
      This
      Accredited Investor Suitability Questionnaire must be completed by each person
      who has indicated an interest in purchasing the Units. The purpose of this
      Accredited Investor Suitability Questionnaire is to permit the Corporation
      to
      determine whether each such person meets certain standards imposed by Federal
      and state securities laws.

    

    If
      the
      answer to any question is “None” or “Not Applicable,” please so
      state.

    

    Please
      complete, sign, date and return this Accredited Investor Suitability
      Questionnaire to the Corporation. Should there be any material change in the
      information contained herein prior to acceptance by the Corporation of your
      subscription for the Units, you must notify the Corporation or its authorized
      representative immediately.

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    
      
        
        

      

      
        -
          13 -

        
          

        

      

      
        
        

      

    

    ACCREDITED
      INVESTOR SUITABILITY QUESTIONNAIRE

    

    THIS
      QUESTIONNAIRE IS TO BE COMPLETED AND DELIVERED TO IDENTICA
      HOLDINGS CORPORATION
      (THE
“CORPORATION”) PRIOR
      TO THE PURCHASE OF UNITS FROM THE CORPORATION.

    

    INSTRUCTIONS:

    

    If
      the
      answer to any question is “None” or “Not Applicable,” please so
      state.

    

    Your
      answers will, at all times, be kept strictly confidential; however, you agree
      that the Corporation may present this Questionnaire to such persons as it deems
      appropriate in order to ensure that the offer and sale of Units to you will
      not
      result in violation of the exemption from registration under the Securities
      Act
      of 1933, as amended (the “Act”),
      and
      the securities laws of certain states. The representations contained herein
      are
      being relied upon by the Corporation in connection with this
      offering.

    

    (Print
      or type your responses)

    

    
      	
              1.

            	
              Name: _________________________________________________________________

            
	 	 
	 	
              Date
                of birth or year of organization: _________________________________________

            
	 	 
	
              2.

            	
              Home
                address or, if other than an individual, principal office
                address:

            
	 	 
	 	
              _______________________________________________________________________

            
	 	 
	 	
              _______________________________________________________________________

            
	 	 
	
              3.

            	
              I
                am subscribing for
                $_____________________________________________________

            
	 	 
	
              4.*

            	
              Employer:  _____________________________________________________

            
	 	 
	 	
              Nature
                of business: _____________________________________________________

            
	 	 
	 	
              Position:  _____________________________________________________

            
	 	 
	 	
              Nature
                of duties:  _______________________________________________

            
	 	 
	 	
              Business
                address:  _______________________________________________

            
	 	 
	 	
              Business
                telephone number: _______________________________________________

            
	 	 
	 	
              *This
                question is to be answered if the investor is an
                individual.

            

    

     

    
      
        
        

      

      
        -
          14 -

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              In
                the case of any individual investor, I am an Accredited Investor
                (as
                defined in Rule 501 of Regulation D promulgated under the
                Act) because I certify that (check all appropriate descriptions that
                apply):

            

    

     

    
      	 	
              (a)

            	
              _____

            	
              I
                am a natural person whose individual net worth, or joint net worth
                with my
                spouse, exceeds $1,000,000.1 

            
	 	 	 	 
	 	
              (b)

            	
              _____

            	
              I
                am a natural person who had individual income exceeding $200,000
                in 2003
                and 2004 and I have a reasonable expectation of reaching the same
                income
                level in 2005.2 

            
	 	 	 	 
	 	
              (c)

            	
              _____

            	
              I
                am a natural person who had joint income with my spouse exceeding
                $300,000
                in 2003 and 2004 and I have a reasonable expectation of reaching
                the same
                income level in 2005, as defined above.

            
	 	 	 	 
	 	
              (d)

            	
              _____

            	
              I
                am a director or executive officer of the Corporation. (Executive
                officer
                means the president; any vice president in charge of a principal
                business
                unit, division or function, such as sales, administration or finance;
                or
                any other person or persons who perform(s) similar policy-making
                functions for the Corporation).

            

    

     

    
      	
              6.

            	
              In
                the case of any partnership, corporation, trust and other entity
                investor,
                the Subscriber certifies that (check
                one):

            

    

     

    
      	 	
              (a)3 

            	
              _____

            	
              Each
                equity owner of the investor is an Accredited Investor
                because:

            

    

    

    
      	 	 	 	
              (i)

            	
              The
                equity owner of the investor is a natural person who had an individual
                income (exclusive of any income attributable to his or her spouse) in
                excess of $200,000 (or joint income with that of his spouse in excess
                of
                $300,000) in each of 2003 and 2004 and reasonably and fully expects
                to have an individual income in excess of $200,000 (or joint income
                with
                that of his spouse in excess of $300,000) in 2005. “Individual
                income” is defined in item 5(b) above;

            
	 	 	 	 	 
	 	 	 	
              (ii)

            	
              The
                equity owner is a natural person who has an “individual net worth” (or
                who, with his or her spouse, has a combined individual net worth) in
                excess of $1,000,000. “Individual net worth” is defined in
                item 5(a) above;

            
	 	 	 	 	 
	 	 	 	
              (iii)

            	
              The
                equity owner is a director or executive officer of the
                Corporation;

            

    

     

    
      
        
          
            

          

        

        1  For
          purposes of this item, “individual net worth” means the excess of total assets
          at fair-market value, including home and personal property (and including
          property owned by a spouse), over total liabilities.

      

      
        2 For
          purposes of this questionnaire, “individual income” means individual annual
          adjusted gross income, as reported for federal income tax purposes, plus:
          (i) the amount of any tax-exempt interest income received; (ii) the
          amount of losses claimed as a limited partner in a limited partnership;
          (iii) any deduction claimed for depletion; (iv) amounts contributed to
          an IRA or Keogh retirement plan; (v) alimony paid; and (vi) any amount
          by which income from long-term capital gains has been reduced in arriving
          at
          adjusted gross income pursuant to the provisions of Section 1202 of the
          Internal Revenue Code of 1986, as amended.

      

      
        3 An
          investor initiating this paragraph must provide a questionnaire from each
          of its
          equity owners. If the investor is a trust, only a trust which is revocable
          and
          which may be amended at the sole discretion of its grantor is eligible
          to
          qualify as an accredited investor under this item 6(a). The grantors of the
          trust are deemed to be the equity owners of the trust and each grantor
          must
          provide a questionnaire.

        

          
            
              
              

            

            
              -
                15 -

              
                

              

            

            
              
              

            

          
 

      

    

    
      	 	 	 	
              (iv)

            	
              The
                equity owner is one of: (a) a bank as defined in
                Section 3(a)(2) of the Act whether acting in its individual or
                fiduciary capacity; (b) an insurance company as defined in
                Section 2(13) of the Act; (c) an investment company
                registered under the Investment Company Act of 1940 or a business
                development company as defined in Section 2(a)(48) of that Act;
                (d) a Small Business Administration under Section 301(c) or
                (d) of the Small Business Investment Act of 1958; or (e) an
                employee-benefit plan within the meaning of Title I of the Employee
                Retirement Income Security Act of 1974, if the investment decision
                is made
                by a plan fiduciary, as defined in Section 3(21) of such Act,
                which such plan fiduciary is either a bank, insurance company, or
                registered investment adviser, or if the employee-benefit plan has
                total
                assets in excess of $5,000,000; or

            

    

     

    
      	 	 	 	
              (v)

            	
              The
                equity owner is a private business development company as defined
                in
                Section 202(a)(22) of the Investment Advisers Act of
                1940.

            

    

    

    
      	 	
              (b)

            	
              _____

            	
              That
                the investor is one of: (i) a bank as defined in
                Section 3(a)(2) of the Act whether acting in its individual or
                fiduciary capacity; (ii) an insurance company as defined in
                Section 2(13) of the Act; (iii) an investment company
                registered under the Investment Company Act of 1940 or a business
                development company as defined in Section 2(a)(48) of such Act;
                (iv) a Small Business Investment Company licensed by the U. S.
                Small Business Administration under Section 301(c) or
                (d) of the Small Business Investment Act of 1958; or (v) an
                employee-benefit plan within the meaning of the Employee Retirement
                Income
                Security Act of 1974, if the investment decision is made by a plan
                fiduciary, as defined in Section 3(21) of such Act, and the plan
                fiduciary is either a bank, insurance company or registered investment
                adviser, or if the employee-benefit plan has total assets in excess
                of
                $5,000,000.

            
	 	 	 	 
	 	
              (c)

            	
              _____

            	
              That
                the investor is a private business development company as defined
                in
                Section 202(a)(22) of the Investment Advisers Act of
                1940.

            
	 	 	 	 
	 	
              (d)

            	
              _____

            	
              That
                the investor is an organization described in
                Section 501(c)(3) of the Internal Revenue Code of 1986, as
                amended, not formed for the specific purpose of acquiring the Units,
                with
                total assets exceeding $5,000,000.

            
	 	 	 	 
	 	
              (e)

            	
              _____

            	
              That
                the investor is a corporation, Massachusetts or similar business
                trust or
                partnership, not formed for the specific purpose of acquiring the
                Units,
                with total assets exceeding $5,000,000.

            
	 	 	 	 
	 	
              (f)

            	
              _____

            	
              That
                the investor is a trust, not formed for the specific purpose of acquiring
                the Units, with total assets exceeding $5,000,000 and whose purchase
                is
                directed by a “sophisticated person,” as defined in
                Rule 506(b)(2)(ii) of
                Regulation D.

            

    

     

    THE
      REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

    

    SIGNATURE
      PAGE FOLLOWS

    
      
        
        

      

      
        -
          16 -

        
          

        

      

      
        
        

      

    

    

    The
      Subscriber certifies that the foregoing responses are true, complete and
      accurate to the best of the Subscriber’s knowledge and belief. The Subscriber
      will provide such further information as may be requested by the Corporation
      to
      verify this response. The Subscriber will notify the Corporation in writing
      regarding any material change to this response prior to the closing of the
      purchase of all Units from the Corporation. Absent such notification, the
      issuance of Units in the name of the Subscriber shall be deemed to be an
      automatic affirmation by the Subscriber of the truth and accuracy of the
      statements and information set forth above.

    
      	 	 	 
	 	 	 
	 	 	 
	
              Date

            	 	
              Type
                or Print Name of Prospective Investor

            
	 	 	 
	 	 	 
	 	 	 
	 	 	
              Signature
                of Prospective Investor or Authorized Signatory

            
	 	 	
              of
                Entity Investor, as applicable

            
	 	 	 
	 	 	 
	 	 	 
	 	 	
              Title
                of Authorized Signatory of Entity Investor

            
	 	 	
              (if
                applicable)

            

    

    

     

    
      
        
        

      

      
        -
          17 -

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