Document:

EXHIBIT 10.16
                                                                   -------------

                           TRADEMARK LICENSE AGREEMENT

         AGREEMENT made as of the 12th day of October 2005, (the "Agreement") by
and between Kobra International, Ltd. d/b/a Nicole Miller, a New York
corporation ("Licensor"), and Signature Eyewear, Inc. a California corporation
("Licensee") (collectively, the "Parties" and each individually a "Party").

         WHEREAS, Licensor is the owner of the Trademarks as defined herein and
as set forth in Schedule 1 attached hereto; and

         WHEREAS, the Trademarks are unique, extraordinary, valuable and have
acquired and established outstanding reputation and goodwill; and

         WHEREAS, Licensee recognizes the great value and goodwill associated
with the Trademarks and that all rights to the Trademarks and the associated
goodwill belong exclusively to the Licensor and that the Trademarks have
acquired a secondary meaning to the public; and

         WHEREAS, Parties and various predecessors in interest have operated
under a license agreement dated April 1, 1993 and various amendments thereto,
which shall expire on March 31, 2006; and

         WHEREAS, Parties desire to enter into this new Agreement which, upon
expiration of the prior license agreement and pursuant to Section 27 herein,
shall supersede the prior license agreement; and

         WHEREAS, Licensee desires to obtain an exclusive license to use one or
more of the Trademarks, on and in connection with the manufacture, sale and
distribution of Licensed Products (as defined herein and as set forth in
Schedule 2) bearing, incorporating or otherwise utilizing said Trademarks
Worldwide excluding Japan (the "Territory"); and

         WHEREAS, Licensor has agreed to grant to Licensee such license under
and subject to the terms and conditions set forth herein;

         NOW, THEREFORE, the Parties hereto, in consideration of the mutual
agreements herein contained and promises herein expressed, and for other good
consideration acknowledged by each of them to be satisfactory and adequate, do
hereby agree as follows:

         1.   Definitions: The following words are defined for this Agreement in
the section indicated:

              DEFINITION                                     SECTION
              ----------                                     -------

         "Advertising Approval Form"                        Section 6.2

         "Advertising Royalty"                              Section 5.4

         "Agreement"                                        First Clause

Portions marked with {***} have been omitted pursuant to a Request for
Confidential Treatment and were filed separately with the Commission.
<PAGE>
              DEFINITION                                     SECTION
              ----------                                     -------

         "Approvals"                                        Section 8

         "Certification"                                    Section 4.3

         "Closeouts"                                        Section 3.5

         "Competing Products"                               Section 12.1

         "Confidential Information"                         Section 7

         "Counterfeit Product"                              Section 12.2

         "Distribution Level(s)"                            Section 4.1

         "Events of Default"                                Section 10

         "Guaranteed Minimum Royalties"                     Section 5.2

         "Indemnitees"                                      Section 16

         "Label Level(s)"                                   Section 4.1

         "Laws"                                             Section 8

         "License"                                          Section 2.1

         "Licensee"                                         First Clause

         "Licensed Products"                                Section 2.1

         "Licensor"                                         First Clause

         "Licensor Sales"                                   Section 4.6

         "Minimum Sales Volume"                             Section 4.2.1

         "Net Sales"                                        Section 4.2.1

         "Parties"                                          First Clause

         "Production Sample(s)"                             Section 3.1

         "Prototype Sample(s)"                              Section 3.1

         "Royalty Down Payment"                             Section 5.3

         "Royalty" or Royalties"                            Section 5.1

         "Sales Period"                                     Section 4.2.1

         "Seconds" or "Irregular"                           Section 3.4

         "Sell Off Period"                                  Section 11.2

         "Term"                                             Section 2.3

         "Territory"                                        Fifth Clause

         "Trademarks"                                       Section 2.1

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<PAGE>
         2.   Grant of Rights.

              2.1  Use of the Trademarks by Licensee. Subject to the terms and
provisions of this Agreement, Licensor hereby grants to Licensee an exclusive
license (the "License") during the Term to use those certain trademarks, service
marks, logos and tradenames owned by the Licensor set forth in Schedule 1 (the
"Trademarks") in connection with the manufacture, distribution and sale of the
products set forth in Schedule 2 (the "Licensed Products") in the Territory.
Licensee may only use the Trademarks in the exact manner set forth in Schedule
1. Any other use must be approved in advance in writing by Licensor. All rights
with respect to the Trademarks and all other trademarks, service marks and trade
names used by Licensor not specifically granted to Licensee in this Agreement
are reserved to Licensor.

              2.2  Ownership. Licensee acknowledges that (a) Licensor owns the
Trademarks and all goodwill associated with or symbolized thereby, (b) Licensee
has no ownership right in or to any of the Trademarks, and (c) Licensee shall
acquire no ownership interest in or to any of the Trademarks, any other
trademarks, service marks or trade names used by Licensor by virtue of this
Agreement. Licensee shall do nothing inconsistent with Licensor's ownership of
the Trademarks and related goodwill and agrees that all use of the Trademarks by
Licensee shall inure to the benefit of Licensor. Licensee shall not use any of
the Trademarks or any other trademark, service marks or trade names used by
Licensor in any manner as a part of its business, corporate or trade name or
otherwise, except and unless expressly permitted hereunder.

              2.3  Term. This Agreement shall commence as of April 1, 2006 (the
"Effective Date") and shall end on March 31, 2009 unless the License is renewed
in accordance with his Section 2.3 (the "Term"). If Licensee wishes to renew the
Term then between three (3) and (6) months of the expiration of the Term,
Licensee shall send Licensor written notice of its desire to renew this
Agreement for an additional three (3) year period pursuant the terms set forth
in Sections 4.2 and 5.2 herein. Such renewal shall be automatic if Licensee
meets the Minimum Sales Volume for the Sales Period ending on March 31, 2009 and
if Licensee is not otherwise in default, and Licensor shall send acknowledgement
of renewal within thirty (30) days of receipt. Otherwise, Licensor may in its
sole discretion accept or reject this proposal by written notice within thirty
(30) days of receipt.

              2.4  Identification. On backing cards of each Licensed Product,
Licensee shall include the following language:

                   Manufactured by Signature Eyewear, Inc. under license from
                   Kobra International, Ltd. [Insert specific Trademark] is a
                   registered trademarks of Kobra International, Ltd. All
                   rights reserved.

Licensee shall place any other notices, reflecting ownership as required by
Licensor, on all Licensed Products, samples, packaging, backing cards,
advertising, public relations and promotional materials.

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<PAGE>
              2.5  Registration. Licensor shall have the sole right to take such
action as it deems appropriate to obtain trademark registration in the Territory
for any of the Trademarks. If it shall be necessary for Licensee to be the
applicant to effect any such registrations, Licensee shall cooperate with
Licensor and execute all necessary documents to effect the registration of the
Trademarks as Licensor may request to effect any such registrations, all at
Licensor's sole expense. Licensee hereby assigns all of its right, title and
interest in and to each such application, and any resulting registration, to
Licensor. Licensee shall execute all papers and documents necessary to
effectuate or confirm any such assignment. Licensee shall perform all reasonable
and necessary acts and execute all necessary documents to effect the
registration of the Trademarks as Licensor may request, all at Licensor's sole
expense. Licensee shall not obtain or attempt to obtain in the Territory, or
elsewhere, any right, title, interest, registration, or otherwise, in or to the
Trademarks, or any of them. In the event that any such right, title or interest
should be obtained by Licensee in contravention hereof, Licensee shall hold the
same on behalf of Licensor and shall transfer the same to Licensor upon request
at the sole expense of Licensee and without expense to Licensor.

              2.6  No Export. The License is granted for the Territory only.
Subject to applicable law, Licensee shall not export Licensed Products from the
Territory or sell Licensed Products to any entity or individual which it knows
or has any reason to believe intends to export Licensed Products from the
Territory. Subject to applicable law, Licensee will use its best efforts to
prohibit the export of Licensed Products from the Territory.

              2.7  Exclusivity. The License granted to Licensee hereby entitles
Licensee the exclusive right to market, distribute and sell the Licensed
Products set forth in Schedule 2 bearing the Trademarks set forth on Schedule 1
in the Territory under the terms and conditions hereof.

Licensor reserves the right: (i) to use and to grant others the right to use the
Trademarks in the Territory on and in connection with all products not included
in Licensed Products and (ii) to manufacture, and to grant to others the right
to manufacture, Licensed Products outside the Territory and within the Territory
solely for export. In the event any of the Licensee's rights to use Trademarks
in a particular Distribution Level are terminated pursuant to Section 4.2.3
hereunder, Licensor shall thereinafter have the right grant others the right to
use such the Trademark in connection with the Licensed Products marketed and
sold in such Distribution Level.

Except under the circumstances set forth in the prior paragraph, Licensor shall
not grant to any person the right during the Term to manufacture, market, sell
and/or distribute Licensed Products bearing the Trademarks or variation of the
Trademarks (including without limitation any variation or derivation of the name
"Nicole Miller").

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         3.   Product Design, Quality and Standards, Manufacture, Irregulars.

              3.1  Design Process. The process for the design of each of the
Licensed Products shall be in accordance with the following steps:

              Step 1: DESIGN DIRECTION: Licensor shall provide to Licensee
design direction as determined by Licensor in its discretion. Licensee shall
acknowledge in writing that it has been provided with Licensor's design
direction.

              Step 2: SKETCHES: Based on the design direction provided in Step
1, Licensee, when requested by Licensor and in consultation with Licensor and/or
Licensor's designee (such as, for example, a merchandiser or retail store
operator) shall prepare sketches of the design for each Licensed Product which
shall include specifications of, including, but not limited to, material(s),
color(s), size(s) and shape(s). Licensee shall provide such sketches, and if
required by Licensor, revisions thereto, to Licensor until Licensor provides
written approval of such sketches. In conjunction with its submission of such
sketches, Licensee shall provide to Licensor a completed "Product Approval
Sheet," in the form annexed hereto as Schedule 4, and if required by Licensor,
revisions thereto, until Licensor provides written approval of such Product
Approval Sheet. Licensor shall provide Licensee with written approval(s) or
disapproval(s) of such sketches, revisions and Product Approval Sheet, or
revisions thereto, within three (3) business days of receipt.

              Step 3: PROTOTYPE SAMPLES: - Based on the sketches approved
pursuant to Step 2, Licensee, in consultation with Licensor and/or Licensor's
designee, shall produce prototype sample(s) of each of the Licensed Products
("Prototype Sample(s)"). Licensee shall provide to Licensor such Prototype
Sample(s), and if required by Licensor, revisions thereto, until Licensor
provides written approval of such Prototype Sample(s). At Licensor's request,
Licensee shall provide Licensor with a reasonable number of each of the
Prototype Sample(s). In conjunction with its submission of such Prototype
Sample(s), Licensee shall provide Licensor with a completed Product Approval
Sheet, in the form annexed hereto as Schedule 4, along with a photograph of each
Prototype Sample and if required by Licensor, revisions thereto until Licensor
provides written approval of such Product Approval Sheet and of such
photographs. Licensor shall provide Licensee with written approval(s) or
disapproval(s) of such Prototype Sample(s), Product Approval Sheet, or revisions
thereto, and of such photographs within three (3) business days of receipt.

              Step 4: PRODUCTION SAMPLES: Based on the Prototype Sample(s)
approved pursuant to Step 3, Licensee, in consultation with Licensor and/or
Licensor's designee, shall produce production sample(s) of each of the Licensed
Products ("Production Sample(s)"). Licensee shall provide such Production
Sample(s), and if required by Licensor, revisions thereto, to Licensor until
Licensor provides written approval of such Production Sample(s). At Licensor's
request, Licensee shall provide Licensor with a reasonable number of each of the
Production Sample(s). In conjunction with its submission of such Production
Samples, Licensee shall provide to Licensor a completed Product Approval Sheet,
in the form annexed hereto as Schedule 4, along with a photograph of each
Production Sample and if required by Licensor, revisions thereto, until Licensor
provides written approval of such Product Approval Sheet and such photographs.
Licensor shall provide Licensee with written approval(s) or disapproval(s) of

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<PAGE>
such Product Sample(s), Product Approval Sheet, or revisions thereto, and of
such photographs within three (3) business days of receipt.

              Step 5: FINAL MANUFACTURE: In conformity with the Production
Sample(s) approved pursuant to Step 4, Licensee shall manufacture each Licensed
Product. Licensed Products shall be subject to Licensor's approval and
satisfaction. Once Licensor has approved the Production Sample(s), Licensee will
manufacture Licensed Products only in accordance with such approved Production
Sample(s) and will not make any changes without Licensor's prior written
approval. At Licensor's request, Licensee shall provide Licensor with a
reasonable number of each Licensed Product.

              3.2  Ownership/ Costs of Samples, Etc.

The costs of the steps in Section 3.1 above shall be apportioned as follows:

                   3.2.1  Step 1 of the design process above shall be at the
         sole cost and expense of Licensor. Steps 2, 3, 4 and 5 shall be at the
         sole cost and expense of Licensee.

                   3.2.2  The right, title and interest in and to samples
         (Prototype, Production, or otherwise), sketches, designs, photos, and
         other materials including any modifications or improvements thereto,
         shall be the sole property of the Party which created such work. The
         Party which created such work may use and permit others to use said
         designs and other materials in any manner it desires, provided that
         such use does not conflict with any rights of the other Party granted
         hereunder. The Party which created such work may in its discretion
         affix a statutory copyright notice on or to any of the designs,
         sketches, samples, products or other materials it created in connection
         with this Agreement.

              3.3  Non-Conforming Products. In the event that any Licensed
Product is, in Licensor's reasonable discretion, not being manufactured,
distributed or sold in conformity with Licensor's approval in Step 5 of Section
3.1, upon written notice from Licensor and until such Licensed Product is
brought into conformity acceptable to the Licensor, Licensee must immediately
cease and desist from the use of the Trademarks in connection with such
non-conforming Licensed Product and the promotion, advertising, sale,
manufacture and distribution thereof. Licensor may require Licensee to recall
promptly any Licensed Product not in conformity. If at the end of the thirty
(30) day period from the written notice, the Licensed Product is still not in
conformity acceptable to Licensor or if such Licensed Product ceases to be in
conformity thereafter, in Licensor's sole discretion, Licensor may immediately
terminate upon written notice the License with respect to such Licensed Product.
Licensor may purchase at Licensee's expense any Licensed Product found in the
marketplace which, in Licensor's discretion, are not in conformity hereunder,
and bill such costs to Licensee. Licensee must pay all royalties due on sales of
non-conforming goods occurring prior to the issuance of the notice of
nonconformity hereunder.

              3.4  Seconds. If in the sole discretion of Licensor, any Licensed
Product is not in conformity with Licensor's approval as set forth in Section
3.1, but is suitable for sale as a non-first quality product ("Seconds"), then
Licensee may sell such Seconds in a way which shall

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<PAGE>
not reduce the value of the Trademarks or detract from Licensor's reputation and
shall obtain the approval of Licensor with respect to the terms and method of
such disposal. All Seconds approved for sale by Licensor shall be clearly marked
"Seconds" or "Irregular." Additionally, Licensee shall remove all labels and
hang tags bearing the Trademarks in accordance with Licensor's specifications.
The percentage of Seconds of any Licensed Product which may be disposed of in
any given year pursuant to this section shall not, in any event, exceed five
(5%) percent of the total number of units of that particular Licensed Product
distributed or sold by Licensee in that year.

              3.5  Closeouts. Sales of first-quality Sunglasses for less than
75% of their regular wholesale prices ("Closeouts") may be made only to the
retailers in Distribution Level #4 as defined in Section 4 and approved by
Licensor in Schedule 3.

              3.6  Inspection. Licensor or its designee shall be entitled, upon
reasonable written notice and during normal business hours, to enter the
premises of the Licensee, including all facilities where Licensed Products are
stored or warehoused, to inspect Licensed Products.

              3.7  Third Party Manufacturers . Licensee shall advise Licensor of
specific Licensed Products to be manufactured by third parties and shall provide
Licensor with the names and addresses of all third party manufacturers. Licensor
may demand that Licensee impose restrictions on such third party manufacturers,
including but not limited to having such third party manufacturers execute
confidentiality, Trademarks acknowledgement and anti-pirating and
anti-infringement agreements and/or letter agreements guaranteeing the third
party manufacturer's compliance with the provisions of this Agreement. Licensor
may demand that each third party manufacturer also covenant in the letter
agreement that it will not subcontract any of its obligations to manufacture
Licensed Products without prior written approval by the Licensor.

                   3.7.1  Representatives of Licensor shall have the right to
         inspect, evaluate and approve such third party manufacturers. Licensee
         further covenants to obtain in writing from any such manufacturers,
         undertakings in a form satisfactory to Licensor, regarding the transfer
         of unused materials containing the Trademarks and defective finished
         products to Licensee.

                   3.7.2  Such third party manufacture notwithstanding, Licensee
         shall remain primarily and completely responsible to Licensor for the
         acts of such third party manufacturers under all of the provisions of
         this Agreement and the acts of such third party manufacturers shall be
         deemed the acts of Licensee. Licensee shall promptly provide Licensor
         with written notice of any changes in third party manufacturers.

              3.8 Monitoring. Licensee shall actively monitor Licensee's and its
customers' use of the Trademarks so that the Trademarks' and Licensor's image or
reputation is not impaired.

              3.9  Notice of Infringement. Licensee shall immediately notify
Licensor of any infringement or imitation, threatened or actual, of the
Trademarks or the use by any person of any trademark(s), service mark(s), or
tradename(s) that Licensee reasonably believes poses a

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threat to the Trademarks. In such event, Licensor will act in its sole
discretion to protect the Trademarks. Licensee will have no right to take any
action with respect to the Trademarks without the prior written approval of
Licensor. Licensee shall execute and deliver to Licensor any and all documents
and do all other acts and things which Licensor deems necessary or appropriate
to protect the Trademarks.

         4.   Sales.

              4.1  Exploitation. Licensee shall exploit the License in the
Territory by selling Licensed Products to the customer venue categories
("Distribution Level(s)"), specifically set forth in Schedule 3 comprising the
Nicole Miller customer base and profile. In accordance with the terms hereof,
Licensee shall manufacture, distribute and sell Licensed Products under
different tiers of labels ("Label Level(s)") bearing the specific Trademarks
comprising that Label Level as set forth in Schedule 1 to the appropriate
Distribution Level shown in Schedule 3 as follows:

              o    Licensee shall only distribute and sell Licensed Products
                   bearing the Trademarks in Label Level #1 to Distribution
                   Level #1.

              o    Licensee shall only distribute and sell Licensed Products
                   bearing the Trademarks in Label Level #2 to Distribution
                   Level #2.

              o    Licensee shall only distribute and sell Licensed Products
                   bearing the Trademarks in Label Level #3 to Distribution
                   Level #3.

              o    Licensee shall only distribute and sell Closeouts and Seconds
                   (as defined herein) to Distribution Level #4.

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              4.2  Minimum Sales

                   4.2.1  During each Sales Period, Licensee shall meet the
         following "Minimum Sales Volume" of Licensed Products:

                                                     Minimum Sales
                   Sales Period(s)                      Volume
                   --------------------------        -------------
                   4/1/06 - 3/31/07                      {***}
                   4/1/07 - 3/31/08                      {***}
                   4/1/08 - 3/31/09                      {***}
                   4/1/09 - 3/31/10                      {***}
                   4/1/10 - 3/31/11                      {***}
                   4/1/11 - 3/31/12                      {***}

Minimum Sales Volume shall be based on sales of Licensed Products less returns,
normal trade discounts and allowances ("Net Sales"). In no event shall returns,
normal trade discounts and allowances exceed {***} of Licensed Products sold.
Deductions in excess of {***} shall be disallowed when computing royalties due
as specified in Section 5.1. Closeouts and Seconds shall not be counted in
determining Minimum Sales Volume

                   4.2.2  Minimum Sales for Particular Licensed Products. If
         Licensee's Net Sales of ophthalmic eyewear in any Sales Period are less
         than {***} of the Minimum Sales Volume for such Sales Period Licensor
         may terminate the License by written notice within sixty (60) days
         following the end of such Sales Period. If Licensee's Net Sales of
         sunglasses in any Sales Period are less than {***} of the Minimum Sales
         Volume for such Sales Period, Licensor may terminate the License for
         sunglasses by written notice within sixty (60) days following the end
         of such Sales Period. In the event of termination of the License for
         sunglasses: (i) the existing stock of sunglasses shall remain in
         circulation for sale and continue to be subject to the License Fees set
         forth in Section 5; and (ii) the Minimum Sales Volume and Guaranteed
         Minimum Royalty shall be reduced by {***} for all Sales Periods.

                   4.2.3 Minimum Sales for Each Distribution Level. In the event
         that Licensee's Net Sales within Distribution Level #1 or #3 falls
         below the percentage of the Minimum Sales Volume shown below during any
         Sales Period, Licensor may terminate the License for that particular
         Distribution Level by written notice to Licensee delivered within sixty
         (60) days following the date Licensee fails to meet such requirement.
         In the event of such termination for a particular Distribution Level:
         (a) the existing stock of Licensed Products within that particular
         Distribution Level shall remain in circulation for sale and continue to
         be subject to the License Fees set forth in Section 5; and (b) the
         Minimum Sales Volume and Guaranteed Minimum Royalties shall be reduced
         by the percentages shown below, as applicable.

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                   Percent of Minimum Sales Volume
                   -------------------------------

                   Distribution Level #1     {***}

                   Distribution Level #2     {***}

                   Distribution Level #3     {***}

                   4.2.4  Minimum Sales for Each Country Within the Territory.
         During the Term, if Licensee's Net Sales to any "Country" within the
         Territory for the prior Sales Period were less than {***}, Licensor may
         enter into negotiations with a prospective licensee(s) to sell Licensed
         Products in that Country provided that proposed license includes
         Minimum Sales Volumes of not less than {***} per year (calculated no
         less favorably to the licensee than Net Sales under this Agreement) and
         Guaranteed Minimum Royalties of not less than {***} per year (payable
         at times and on terms not less favorable to the licensee than the terms
         of payment under this Agreement) for that Country. Licensor will advise
         Licensee in writing if it enters into negotiations with a prospective
         licensee(s) for such a proposed license so that Licensee may present a
         proposal for that Country.

                   Licensee will have twenty (20) business days from the date of
         such notice to present a proposal to Licensor. Licensor may accept or
         reject that proposal; if it rejects that proposal, it may enter into a
         license no less favorable to the licensee than described in the prior
         paragraph. Upon entering into such a license, Licensor shall give
         written notice to Licensee that it terminates the Licensee for that
         Country, which notice shall contain a certification from an executive
         officer of Licensor to the effect that the Minimum Sales Volumes and
         Guaranteed Minimum Royalties under the new license meet the
         requirements of this Section 4.2.4. Upon receipt of such notice,
         Licensee will be given an opportunity for a period of three (3) months
         after any such termination for that particular Country to dispose of
         any then existing inventories (including work in progress) of Licensed
         Products bearing the Trademarks. Such sales shall be made subject to
         the provisions of this Agreement; and to an accounting for and the
         payment of the Royalty thereon pursuant to Section 5 herein. During
         this sell-off period, the License for that Country shall be
         nonexclusive.

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              4.3  Certification. Within thirty (30) days of the end of each
Sales Period, Licensee shall send to Licensor a certification by a duly
authorized officer of Licensee approved by Licensor of the Net Sales of Licensed
Products during such Sales Period (the "Certification").

              4.4  Distribution and Sale of Licensed Products. Licensee shall be
required to (a) distribute Licensed Products so that they may be sold to
consumers on a timely basis; (b) maintain a sales force, which shall include
Licensee's authorized distributors, sufficient to provide effective distribution
of Licensed Products throughout the North America, Europe and Australia; and (c)
participate in such of Licensor's marketing, merchandising, sales and other
programs and activities, including, but not limited to, scheduling personal
appearances by Nicole Miller, and special design work by Licensor for Licensee,
in the manner and at the extra charge(s) to Licensee, as set forth in Schedule
5. No license is granted hereby for the manufacture, sale or distribution of
Licensed Products in combination sales, premiums or giveaways, such license
being specifically reserved for Licensor.

              4.5  Sale of Licensed Products by Licensor. Licensor (or its
designee), in its sole discretion, may purchase any number of Licensed Products
from Licensee, which Licensee shall sell to Licensor at a twenty (20%) percent
discount from Licensee's published prices for such Licensed Products ("Licensor
Sales"). Licensor or its designees may sell Licensed Products outside of the
Territory. Royalties shall not be paid on Licensor Sales and Licensor Sales
shall not count toward Licensee's Minimum Sales Volume. Licensor shall have no
obligation to purchase Licensed Products from Licensee.

Licensee shall, whenever reasonably possible and subject to credit constraints,
give priority of delivery of Licensed Products to "Nicole Miller" licensed
boutiques.

         5.   Royalties; Other Fees and Payments.

              5.1  Royalties. Licensee shall pay to Licensor royalties based on
a percent of Net Sales as shown below. All license fees referred to herein are
"Royalty" or "Royalties."

              Distribution Level # 1 - {***}
              Distribution Level # 2 - {***}
              Distribution Level # 3 - {***}
              Distribution Level # 4 - {***}

              5.2  Guaranteed Minimum Royalties. Licensee shall, during each
Sales Period or portion thereof of the Term calculated on a pro rata basis, pay
to Licensor "Guaranteed Minimum Royalties" as shown below whether or not the
minimum sales levels comprising the Minimum Sales Volume are actually achieved.
All such payments shall be credited towards Royalties due in Section 5.1 above.

                                                      Guaranteed
                                                        Minimum
                   Sales Period(s)                     Royalties
                   --------------------------        -------------
                   4/1/06 - 3/3/ /07                     {***}
                   4/1/07 - 3/31//08                     {***}
                   4/1/08 - 3/31/09                      {***}
                   4/1/09 - 3/31/10                      {***}
                   4/1/10 - 3/31/11                      {***}
                   4/1/11 - 3/31/12                      {***}

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Guaranteed Minimum Royalties are payable monthly and are due by the 25th of the
month with the first payment due on April 25, 2006.

In the event Licensor files a petition for relief under any chapter of the
United States Bankruptcy Code 11 U.S.C. ss. 101 et seq., or if such a petition
is filed against it and is not dismissed within ninety (90) days from the date
of filing, or if Licensor makes an assignment for the benefit of its creditors,
or files a petition, or otherwise seeks relief under, or pursuant to any
bankruptcy, liquidation, insolvency, or reorganization statute or proceedings,
or if a custodian, receiver, or trustee is appointed for it, or a substantial
portion of its business or assets, the Minimum Sales Volume and the Guaranteed
Minimum Royalties shall thereinafter be reduced by {***}.

              5.3  Royalty Payment Schedule. Guaranteed Minimum Royalties shall
be due and payable by Licensee to Licensor in installments as shown above. All
other Royalties set forth above, including percentage royalties in excess of
minimum royalties, shall be due and payable by Licensee to Licensor in quarterly
installments on the twentieth (20th) day after the close of each contract
quarter (on a pro rata basis for any period less than twelve (12) months).

              5.4  Late Payment. Payments not received within ten (10) days of
the date due shall accrue interest at the prime rate according to the Wall
Street Journal or another reputable business publication plus two (2%) percent.

              5.5  Royalty Statements. Licensee shall, by the twentieth (20th)
day after the close of each contract quarter, send to Licensor, together with
payment of Royalties, complete and accurate statements, in a form approved by
Licensor, signed by a duly authorized officer of Licensee acceptable to Licensor
and certified by said officer as accurate. Such statements must be sufficiently
detailed to enable Licensor to determine whether the exploitation provisions of
Sections 4.2.2, 4.2.3 and 4.2.4 have been met and indicate, without limitation,
the following: (a) the total invoice price of all Licensed Products by style in
each Distribution Level sold during the period covered by such Royalty
payment(s); (b) a breakdown, by unit(s) and dollar amount(s), and identifying
each customer (by name and address), to whom Licensee sold and/or distributed
each such Licensed Product in each Distribution Level during the period covered
by such Royalty Payment(s); and (c) the amount of returns, discount, and
allowances by style and by customer within each Distribution Level which have
been deducted to compute Net Sales during said period. Receipt or acceptance by
Licensor of any Royalty statement furnished, or of any sums paid by Licensee,
shall not create an "accord and satisfaction" by Licensor and shall not

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preclude Licensor from questioning its correctness at any time; provided,
however, that reports submitted by Licensee shall be binding and conclusive on
Licensee.

              5.6  Licensee's Annual Financial Statement. Licensee shall provide
Licensor upon request with (a) a certified, audited financial statement within
one hundred twenty (120) days of the end of Licensee's fiscal year; and (b) a
six (6) month interim unaudited financial statement within seventy five (75)
days after the end of the first six months of Licensee's fiscal year.

              5.7  Right to Audit Books and Records. Licensee shall, at its sole
cost and expense, maintain complete and accurate books and records covering all
transactions arising out of or relating to this Agreement. Licensor and its duly
authorized representative(s) shall have the right, during normal business hours,
during the Term as extended or renewed and for three (3) years thereafter, to
examine and copy said books and records and all other documents and materials in
the possession of and under the control of Licensee with respect to the subject
matter and terms of this Agreement. The exercise by Licensor of any right to
audit at any time or times or the acceptance by Licensor of any statement, or
payment shall be without prejudice to any other of Licensor's rights or remedies
and shall not bar Licensor from thereafter disputing the accuracy of any payment
or statement and Licensee shall remain fully liable for any balance due under
this Agreement.

              5.8  Taxes. Licensee will bear all taxes, duties and other
governmental charges relating to or arising under this Agreement, including
without limitation, any sales or use taxes, value added taxes, excise taxes but
excluding Licensor's income tax, or any other charges relating to or on, any
Royalty payable by Licensee to Licensor.

              5.9  Underpayments. If, upon any audit of Licensee's books and
records, Licensor shall discover any unpaid Royalty or other underpayment by
Licensee, Licensee shall pay the discrepancy within ten (10) days of receipt of
written notice. In addition, if this audit reveals Royalty or other underpayment
of ten percent (10%) or more for any quarterly period, Licensee will within ten
(10) days reimburse Licensor for the cost of said audit. Payments under this
section shall accrue interest from the time such payments were first due at the
prime rate according to the Wall Street Journal or another reputable business
publication plus two percent (2%).

              5.10 No Set-Off. Licensee's obligation to pay Royalties hereunder
shall be absolute notwithstanding any claim which Licensee may assert against
Licensor. Licensee shall not have the right to set-off, compensate or make any
deduction from such Royalty or other payments for any reason.

         6.   Advertising and Public Relations.

              6.1  Advertising by Licensor. Licensee shall be required to spend
during each Sales Period {***}. Advertising shall include expenditures made in
connection with the public promotion, through standard media, of the Licensed
Product for sale and distribution. Advertising shall not include any expenses
incurred in connection with trade show fees, space, booths or set-ups,
entertainment expenses, showroom costs, and promotional giveaways.

                                       13
<PAGE>
Advertising and promotion shall be provided in connection with Distribution
Level #1 and # 2 customers only as identified in Schedule 3.

              6.2  Advertising by Licensee. All advertising and promotion,
(including, without limitation, photo shoots, layouts, artwork, etc.), as well
as packaging and labeling, in connection with the License and Licensed Products
shall be produced solely at Licensee's cost and expense and must be approved by
Licensor. Such advertising and promotion produced by Licensee during the Term
shall enhance the Trademarks within the Territory and maintain the standards and
quality of the Trademarks. No packaging, labeling or advertising, including
cooperative advertising may be used without the prior written approval of
Licensor.

With respect to such other advertising, promotion, etc. before publication or
use of any packaging, photo shoots, labeling, advertisement or promotion by
Licensee, Licensee shall submit every element of the advertisement or promotion
to Licensor for approval using an "Advertising Approval Form", attached hereto
as Schedule 6 as provided by Licensor. Any approval granted hereunder shall be
limited to use during the seasonal collection of Licensed Products to which such
advertising relates and shall be further limited to use (e.g. television or
print) for which approval by Licensor was granted. Samples of initial packaging,
labeling and advertising, and samples of any revisions, changes, modifications
or substitutions thereto, shall be submitted to Licensor sufficiently far in
advance to permit Licensee time to make such changes as Licensor shall deem
necessary.

              6.3 Ownership of Advertising. The right, title and interest in and
to any advertising, packaging, labeling and such other materials whether created
by Licensor or Licensee, including any modifications or improvements thereto,
shall be the sole property of Licensor. Licensor may use and permit others to
use said advertising and other materials in any manner it desires, provided that
such use does not conflict with any rights granted to Licensee hereunder.
Licensor may in its discretion affix, or require that Licensee affix, a
copyright notice and/or a trademark notice indicating the ownership of rights by
Licensor on or to any of the advertising or other materials in connection with
this Agreement, it being understood that the advertising and other materials, to
the extent produced by Licensee, are produced as Works for Hire of Licensor.
Licensee agrees to make, procure and execute all assignments necessary to vest
ownership of such rights in Licensor.

              6.4  Public Relations. Licensor has an active public relations
program in which Licensee is required, to participate, at a cost, and in a
manner, as set forth in Schedule 7. Participation in the public relations
program will begin when Licensed Products under the Nicole Miller Collection
label are ready to launch and will continue thereafter for a six month trial
period. Licensee may terminate participation in this program at the end of this
trial period upon written notice to Licensor.

              6.5  Use of the Trademarks on Stationery, Etc. Licensee's use of
the Trademarks on invoices, order forms, stationery and related materials in
advertising, in telephone or other directory listings is permitted only upon
Licensor's written approval.

         7.   Confidentiality. All non-public information and trade secrets
("Confidential Information") given to Licensee by Licensor shall be solely for
Licensee's own use, shall remain

                                       14
<PAGE>
confidential, and shall not be disclosed to any other person without prior
written consent of Licensor, unless as required by order of a court or
government agency of competent jurisdiction, except to those persons to which
Licensee deems such disclosure necessary in order to manufacture, sell or
distribute Licensed Products; provided, however, that Licensee shall require
that such persons agree not to disclose Confidential Information other than for
the purposes hereof. If any of such persons disclose or use any Confidential
Information other than for the purposes hereof, Licensee will take such steps,
at Licensee's sole cost and expense, as may be required to prohibit such
disclosure, and at the direction of Licensor and at Licensee's sole cost and
expense, commence or cooperate in any action required to recover damages, with
respect to such disclosure. Any breach by Licensee, or any other such persons,
of this section will cause irreparable injury to Licensor, and, therefore, in
addition to any other legal remedies available to Licensor, Licensor shall have
the right, at Licensee's sole cost and expense, to obtain injunctive relief
against the continuation by Licensee or such other persons of any breach of this
provision, and a decree for specific performance of the terms of this Agreement.
In the event of any breach by Licensee or any such other persons noted above,
Licensor shall have the right to obtain injunctive relief against the
continuation of such breach without the necessity of showing any actual damage.

         8.   Regulatory Matters. Licensee shall be responsible for obtaining
all necessary government approvals, registrations, consents, licenses and
permits of the Territory or any governmental or political subdivisions thereof,
excluding Trademark registrations, which are the responsibility of Licensor
pursuant to Section 2.5 of this Agreement (collectively, but excluding Trademark
registrations, "Approvals"), and for complying with any and all applicable
statutory, administrative or regulatory requirements of the Territory or any
governmental or political subdivisions thereof (collectively, "Laws") that are
necessary for the importation and sale of Products within the Territory,
including, without limitation, product documentation such as traceability,
samples, sales literature and records, and documentation of recalls, which
documentation shall be maintained on a permanent basis by the Licensee
notwithstanding termination or expiration of this Agreement, any product
registrations with any government agency or health authority, or any
registration, approvals, or filing of this Agreement. Without limiting the
generality of the foregoing:

              8.1  Licensee shall bear all costs, fees and expenses associated
with obtaining Approvals or complying with Laws.

              8.2  All Approvals by any governmental agency or health authority
which are necessary to sell Licensed Products within the Territory shall be the
sole property of Licensor and shall be issued to, and in the name of, Licensor.
In the event that any right, title or interest in and to any such Approvals
should be obtained by Licensee in contravention hereof, Licensee shall hold the
same on behalf of Licensor and shall transfer the same to Licensor upon request
and without expense to Licensor. In the event such Approvals are not
transferable, Licensee shall offer Licensor reasonable cooperation and
assistance in obtaining such Approvals in the name of Licensor, or its
designated affiliate.

              8.3  In order to prevent the importation of counterfeit
merchandise, Licensee shall use a customs broker for all Licensed Product
imported under this Agreement. Licensee shall promptly notify Licensor of the
identity of each such customs broker as Licensee shall use

                                       15
<PAGE>
from time to time during the Term for Licensed Product imported hereunder.
Licensor shall not be liable for any acts of or transactions with said broker.

              8.4  Licensee agrees that it will not engage in "unlawful
transshipment" of merchandise, as that term is defined by the U.S. Customs
Service, or utilize manufacturers that engage in such "unlawful transshipment."
Licensee further agrees that all merchandise manufactured outside the United
States will have labels permanently affixed thereto that reflect the actual
"country of origin" as that term is defined by the U.S. Custom Service.

              8.5  Licensee shall promptly provide to Licensor, upon Licensor's
request, such evidence that Licensor shall require, including, but not limited
to an opinion of an attorney licensed to practice law in the Territory
confirming that all Approvals necessary to import and sell Products in the
Territory have been obtained and that Licensee's sales of Licensed Products are
in compliance with all Laws. If such evidence is not received by Licensor upon
request, in addition to Licensor's other rights hereunder, Licensor shall be
entitled to withhold shipment of Licensed Products until such evidence is
received.

         9.   Compliance With Operation of Law. Licensee shall comply and shall
ensure that all Licensed Products comply in all material respects with all
applicable laws, rules and regulations.

              9.1  If any provision of this Agreement shall be in violation of
the present or future laws of the United States of America, or any other
relevant jurisdiction, in such a way that it is void or voidable, the validity
of the remaining provisions shall not be affected thereby unless such invalidity
is of an essential and material part of this Agreement, in which event either
party shall have the right to terminate this Agreement upon thirty (30) day's
prior written notice to the other.

         10.  Termination. Notwithstanding the termination provisions in
Sections 4.2.2, 4.2.3 and 4.2.4 herein (which entitle the Licensor to terminate
the License as to certain Licensed Products, Distribution Levels and Countries
under particular circumstances), the occurrence of any one or more of the
following events shall constitute a default by the Licensee under this Agreement
("Events of Default"), whereupon, in addition to all other rights and remedies
available to Licensor, Licensor shall have the right to terminate this
Agreement:

              10.1 Failure of the Licensee to make any payment required to be
made to Licensor when the same shall be due;

              10.2 Any purported assignment, sublicense or transfer of this
Agreement or the License by Licensee including any sale or other transfer of all
or substantially all of the assets of the Licensee;

              10.3 Cessation by the Licensee of its business or the taking by
the Licensee of concrete steps to cease to carry on its business;

              10.4 Licensee's breach of any of its representations, warranties
and/or obligations contained in Section 14 of this Agreement;

                                       16
<PAGE>
              10.5 Licensee making a general assignment for the benefit of its
creditors or a proposal under any bankruptcy statute; declaration by Licensee of
bankruptcy; application by Licensee for suspension of payments; appointment of a
custodian, sequestrator, receiver or similar officer of Licensee and failure to
remove same within 30 days thereafter; disposal by Licensee of all or, in the
opinion of Licensor, a substantial portion of Licensee's property other than in
the ordinary course of business; or proposal by Licensee of a compromise or
arrangement with creditors under any legislation;

              10.6 Entry of a judgment against Licensee in an amount that
Licensor, in its discretion, determines puts Licensee's business at risk, which
is not promptly paid or for which a stay of execution is not procured within the
time limit for appeal, and, if appealed, for which a stay shall not be procured
during such appeal;

              10.7 Inability of Licensee to meet its obligations as they
generally become due;

              10.8 Failure of Licensee to maintain its corporate existence;

              10.9 Breach by Licensee of any other covenant, warranty or
obligation hereunder other than Licensee's obligations to meet the Minimum Sales
Volumes under Section 4.2 except as expressly provided in Sections 4.2.2, 4.2.3
and 4.2.4.

              If an Event of Default described in any of subsections 10.1, 10.4,
10.6, 10.7 or 10.9 above is not corrected within twenty (20) business days of
written notice by Licensor, Licensor shall have the right to immediately
terminate this Agreement upon written notice. If an Event of Default specified
in any of subsections 10.2, 10.3, 10.5 or 10.8 occurs, Licensor shall have the
right to immediately terminate this Agreement upon written notice.

         11.  Effect of Expiration or Termination. If the License expires or is
terminated due to an Event of Default described in subsections 10.1, 10.4, 10.6,
10.7 or 10.9, Licensee will be given an opportunity for a period of six (6)
months after any termination of this Agreement (the "Sell Off Period") to
dispose of any then existing inventories (including work in progress and binding
purchase orders) of Licensed Products bearing the Trademarks. Such sales shall
be made subject to the provisions of this Agreement; and to an accounting for
and the payment of the Royalty thereon pursuant to Section 5 herein. During the
Sell Off Period, the License shall be nonexclusive. With the exception of this
Sell Off Period, no rights whatsoever shall extend to Licensee beyond the
expiration or termination of this Agreement, and Licensee shall not be entitled
to any compensatory payment based on the expiration or other termination of this
Agreement. All Royalties, and any other payments outlined in this Agreement,
shall be immediately due and payable.

              11.1 Upon termination of this Agreement for any reason, or upon
expiration of the Sell Off Period as the case may be, Licensee shall within
thirty (30) days:

                   11.1.1  cease and desist and thereafter refrain from
         advertising, shipping, manufacturing and selling Licensed Products
         bearing the Trademarks; and

                   11.1.2  deliver to Licensor, all unused labels, tags,
         pamphlets, folders, brochures, and other printed promotional and
         advertising materials displaying the Trademarks which are in Licensee's
         possession, or under its control.

                                       17
<PAGE>
              11.2 Upon termination of this Agreement for any reason or upon
expiration of the Sell Off Period as the case may be, Licensee shall destroy any
molds bearing the Trademarks that are in its possession, and shall use its best
efforts to cause any third person that manufactures the Licensed Products for
Licensee to destroy all such molds in its possession.

              11.3 Licensee hereby appoints Licensor as Licensee's
attorney-in-fact or agent to execute and record with any governmental authority
all documents necessary or desirable, to evidence the termination of any of
Licensee's rights hereunder as "registered user," or otherwise.

              11.4 Upon termination or expiration of this Agreement, with the
exception of the Sell Off Period, Licensee shall have no further right to
exercise the License hereunder or otherwise acquired in relation to this
Agreement. Licensee agrees that its failure to stop in all respects the use of
the Trademarks upon the termination or expiration of this Agreement will result
in immediate irreparable damage to Licensor for which there is no adequate
remedy at law, and in the event of such failure by Licensee, Licensor shall be
entitled to injunctive relief. Licensor shall be entitled to recover from
Licensee, in addition to any other remedies in the event of default, reasonable
attorney's fees, costs and expenses, including collection agency fees incurred
by Licensor in the enforcement of the provisions hereof. Licensor's exercise of
any of the foregoing remedies shall not operate as a waiver of any other rights
or remedies which Licensor may have.

              11.5 Survivorship. The following provisions shall survive
expiration or termination of this Agreement: Sections 5, 7, 10, 11, 12, 13, 14,
16, 19, 20, 21, 22, 23, 24, 25, 27.

              11.6 Licensee Bankruptcy. In the event Licensee files a petition
for relief under any chapter of the United States Bankruptcy Code 11 U.S.C. ss.
101 et seq., or if such a petition is filed against it and is not dismissed
within thirty (30) days from the date of filing, or if Licensee makes an
assignment for the benefit of its creditors, or files a petition, or otherwise
seeks relief under, or pursuant to any bankruptcy, liquidation, insolvency, or
reorganization statute or proceedings, or if a custodian, receiver, or trustee
is appointed for it, or a substantial portion of its business or assets,
Licensor may, notwithstanding any other provision of this Agreement, at its sole
election, terminate this Agreement by written notice to Licensee and thereupon
this agreement shall be terminated.

                   11.6.1  No assignee for the benefit of creditors, custodian,
         receiver, trustee in bankruptcy, sheriff, or any other officer of a
         court, or official charged with taking over custody of Licensee's
         assets, or business, shall have any rights to continue this Agreement,
         or to exploit, or in any way use the Trademarks if Licensor exercises
         its right of termination pursuant to Section 10.5.

                   11.6.2  In the event that Licensee as a debtor-in-possession
         in a case filed under the U.S. Bankruptcy Code or a trustee in
         bankruptcy of the Licensor or Licensee (the "Trustee") proposes to
         assign this Agreement to a third party, which proposed assignment
         satisfies the requirements of applicable law, the Trustee shall notify
         Licensor

                                       18
<PAGE>
         of such proposed assignment in writing, including the terms thereof.
         The giving of such notice shall be deemed to constitute an offer to
         Licensor to have this Agreement assigned to it, or its designee. In the
         event Licensor wishes to accept such offer, it shall notify the Trustee
         in writing within thirty (30) days after Licensor's receipt of the
         Trustee's notice. The Trustee and Licensor shall thereupon determine
         the consideration and such other terms of the assignment as shall be
         mutually acceptable to both the Trustee and Licensor. If Licensor fails
         to give its notice to the Trustee within the said thirty (30) days, it
         shall be deemed to have declined such offer and the Trustee may proceed
         with an assignment to an unrelated third party, but only if such
         assignment is for consideration equal to, or greater than that
         contained in the offer to Licensor and upon all other terms and
         conditions not more favorable to such assignee than those offered to
         Licensor.

                   11.6.3  In the event Licensor files a petition for relief
         under any chapter of the United States Bankruptcy Code ss. 101 et seq.,
         or if such a petition is filed against it and is not dismissed within
         thirty (30) days from the date of filing, or if Licensor or Licensee
         makes an assignment for the benefit of its creditors, or files a
         petition, or otherwise seeks relief under, or pursuant to any
         bankruptcy, liquidation, insolvency, or reorganization statute or
         proceedings, of if a custodian, receiver, or trustee is appointed for
         it, or a substantial portion of its business or assets, Licensor
         agrees, to the extent this Agreement may be determined to be an
         executory contract by a bankruptcy court of competent jurisdiction, to
         file an appropriate motion in bankruptcy court seeking authority to
         assume the Agreement, and Licensor shall assume the Agreement.

                                       19
<PAGE>
         12.  Non-competition. Other than as provided in this Agreement,
Licensee shall not, either during the Term or at any time thereafter,
manufacture, process, package, distribute or sell products on its own behalf or
for others, which bear trademarks, logos, insignias or markings of any kind
which in any way replicate or are confusingly similar to the Trademarks.

              12.11 Counterfeits. Upon Termination and following the Sell Off
Period, if applicable, if Licensee or any of its employees, agents,
representatives or affiliates continue to manufacture, distribute or sell
Licensed Products or any product bearing the Trademarks or any similar mark,
this product shall be deemed for the purposes of this Agreement a "Counterfeit
Product." Licensor shall have all available remedies under law or equity to stop
such manufacture, distribution and sale of Counterfeit Product.

         13.  Independent Contractors. The relationship of Licensor and Licensee
established by this Agreement is that of independent contractors, and nothing
contained in this Agreement shall be construed to (a) give either party hereto
the power to direct and control the day-to-day activities of the other, or (b)
constitute the parties as partners, joint venturers, co-owners or otherwise as
participants in a joint or common undertaking. Neither party hereto nor any of
its agents is the representative of the other party for any purpose except as
expressly set forth in this Agreement, and has no power or authority as agent,
employee or in any other capacity to represent, act for, bind or otherwise
create or assume an obligation on behalf of the other for any purpose
whatsoever. All financial obligations associated with Licensee's business are
the sole responsibility of Licensee. All sale and other agreements between
Licensee and its customers are Licensee's sole responsibility and shall have no
effect on Licensee's obligations under this Agreement.

         14.  Warranties, Representations and Obligations of Parties

              14.1 Warranties, Representations and Obligations of Licensee.
Licensee hereby warrants and represents that: (a) it has the full right, power
and authority to enter into this Agreement; (b) it is financially able to
perform its obligations hereunder; (c) it is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation; (d) all necessary corporate acts have been effected by it to
render this Agreement valid and binding upon it; and (e) with respect to this
Agreement, it has not utilized the services of any finder, broker or agent to
whom Licensor owes any commission or fee. Licensee further warrants and
represents prior to executing this Agreement, Licensee has disclosed to Licensor
the name(s) of all of Licensor's competitors with whom Licensee has existing
contracts and/or for whom Licensee performs services including, but not limited
to manufacturing, selling or distributing, and that during the Term, Licensor
shall promptly notify Licensee of any other of Licensor's competitors with whom
Licensee contracts and/or for whom Licensee performs services. Licensee further
warrants and represents that it recognizes the great value and goodwill
associated with the Trademarks and that all rights to the Trademarks and the
associated goodwill belong exclusively to the Licensor as defined herein and
that the Trademarks have acquired a secondary meaning to the public.

              14.2 Warranties, Representations and Obligations of Licensor.
Licensor hereby warrants and represents that: (a) it has the full right, power
and authority to enter into this Agreement; (b) it is financially able to
perform its obligations hereunder; (c) it is a corporation

                                       20
<PAGE>
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation; (d) all necessary corporate acts have been
effected by it to render this Agreement valid and binding upon it; and (e) it is
the sole and exclusive owner of the Trademarks. Licensor hereby expressly
warrants and represents that it controls all rights necessary for the
performance of its obligations under this Agreement, that it has ownership and
all rights in and to the Trademarks and all intellectual property licensed under
this Agreement, that it has not granted and will not grant to any third party
during the term of this Agreement the right to use in connection with the
Licensed Products in the Territory the Trademarks or any intellectual property
licensed under this Agreement and that it has all rights necessary to grant to
Licensee the license of the Trademarks and all intellectual property licensed
under this Agreement.

         15.  Insurance. Licensee shall maintain commercial general liability
insurance in the amount of at least $3,000,000 (combined single limit per
occurrence) with a broad form property damage liability coverage. This insurance
shall include broad form blanket contractual liability, personal injury
liability, advertising liability, products and completed operations liability.
Each coverage shall be written on an "occurrence" form. In addition, Licensee
shall purchase insurance against theft and destruction of Licensed Products
which shall, without limitation, (a) be written on an "all risk" basis; (b)
provide that Licensee shall be reimbursed for loss in an amount equal to the
manufacturer's selling price; (c) provide that Licensor is added as a loss payee
in respect to losses to Licensed Products; (d) be in effect while goods are on
premises owned, rented or controlled by Licensee and while in transit or
storage; and (e) include a brand and label clause stating, among other things,
that the insurer will pay the cost of removing Licensor's name from damaged
merchandise and relabeling goods.

              15.1 The insurance described above shall include: (a) an
endorsement stating that Licensor shall receive at least thirty (30) days
written notice prior to cancellation or non-renewal of coverage; (b) an
endorsement naming Licensor as an additional insured; and (c) a mutual waiver of
subrogation for insured property losses. All insurance obtained by Licensee
under this section shall be from an insurance company approved by Licensor.
Licensee shall give Licensor thirty (30) days notice of the cancellation of, or
any modification in, such insurance. Licensee shall furnish to Licensor
evidence, in form satisfactory to Licensor, of the maintenance and renewal of
the insurance herein required.

         16.  Indemnification

              16.1 Indemnification by Licensee During the Term, and thereafter,
Licensee hereby indemnifies and holds harmless Licensor, its directors,
officers, employees, agents, and related companies ("Licensor's Indemnitees")
from and against any and all losses, liabilities, damages and expenses
(including reasonable attorneys' fees and expenses) which Licensor's Indemnitees
or any of them may incur or be obligated to pay in any action, claim or
proceeding against them or any of them, for or by reason of any acts, whether of
omission or commission, that may be committed or suffered by Licensee or any of
its servants, agents or employees in connection with Licensee's performance of
this Agreement, except for acts authorized by this Agreement including the use
of the Trademarks as permitted herein. Licensor shall promptly

                                       21
<PAGE>
notify Licensee of any suit or claim against Licensor relating to Licensed
Products and/or this Agreement.

              16.2 Indemnification by Licensor During the Term, and thereafter,
Licensor hereby indemnifies and holds harmless Licensee, its directors,
officers, employees, agents, and related companies ("Licensee's Indemnitees")
from and against any and all losses, liabilities, damages and expenses
(including reasonable attorneys' fees and expenses) which Licensee's Indemnitees
or any of them may incur or be obligated to pay in any action, claim or
proceeding against them or any of them, for or by reason of any acts, whether of
omission or commission, that may be committed or suffered by Licensor or any of
its servants, agents or employees in connection with Licensor's performance of
this Agreement, and by reason of any breach of any representation by Licensor in
this Agreement. Licensee shall promptly notify Licensor of any suit or claim
against Licensee relating to this Agreement.

         17.  Assignment. Neither this Agreement nor the rights granted
hereunder may be assigned, sub-licensed, or transferred in whole or in part by
the Licensee

         18.  Suspension of Obligations. If Licensee shall be prevented from
performing any of its obligations because of governmental regulation or order,
or by strike, civil unrest or war, declared or undeclared, or other calamities
such as fire, flood, hurricane, tornado, earthquake, or similar acts of God, or
because of other similar or dissimilar cause beyond the control of Licensee,
Licensee's obligations shall be suspended during the period of such conditions.
If such conditions continue for a continuous period of more than sixty (60)
days, Licensor and Licensee shall have the right to terminate this Agreement. If
the act of force majeure consists of a fire, flood, hurricane, tornado,
earthquake, terrorist act or nuclear war and if the act prevents Licensee from
manufacturing and/or timely delivering Licensed Products, whether due to an
inability to obtain fabric or other materials, destruction of manufacturing
facilities, inability to deliver finished product, or otherwise, Licensee shall
have a period not to exceed sixty (60) days to find alternate sources and shall
timely advise Licensor of the progress it has made in that regard. If, in
Licensor's discretion, Licensee shall fail to diligently proceed to obtain
alternate sources, or if the condition shall continue to exist for more than
sixty (60) days, Licensor shall have the right to terminate this Agreement.

         19.  Non-Waiver. The failure of Licensor to enforce any term, provision
or condition of this Agreement, or to exercise any right or option herein, shall
in no way operate as a waiver thereof, nor shall any single or partial exercise
by Licensor preclude any other right or option herein; and no waiver by Licensor
shall be valid unless in writing.

         20.  Severability. If any provision or any portion of any provision of
this Agreement shall be determined by any court or arbitration panel to be
illegal, invalid, or unenforceable, such provision or portion shall be deemed
stricken from this Agreement as if never incorporated herein. In such case, all
other provisions of this Agreement shall continue in full force and effect,
unless Licensor, in its discretion, determines that such determination adversely
affects the original intent of the parties, in which event this Agreement shall
terminate on thirty (30) days notice from Licensor to Licensee.

                                       22
<PAGE>
         21.  Notices. All notices, claims, requests, demands and approvals
hereunder shall be in writing and shall be deemed to have been duly given if
both sent (a) via facsimile and (b) by mail (by certified mail, return receipt
requested and postage prepaid), or if sent by an internationally recognized
reputable overnight courier for next business morning delivery or as shortly as
possible thereafter as follows:

         If to Licensor to:  Kobra International, Ltd.

                           525 Seventh Avenue
                           New York, New York 10018
                           Attention:  Mr. Bud Konheim, Chief Executive Officer

                           Fax:  212-869-1938

         With a copy to:  Law Offices of Greenberg Traurig, LLP

                           200 Park Avenue
                           New York, New York 10166
                           Attention Harley I. Lewin, Esq.

                           Fax:  212-688-2449

         If to Licensee to:

                           Signature Eyewear, Inc.
                           498 North Oak Street
                           Inglewood, CA 90302
                           Attention: Michael Prince, CEO

                           Fax:  310-330-2770

                           With a copy to:  Lisa Funk

                           498 N. Oak Street
                           Inglewood, CA 90302
                           Fax 310-330-2755

         22.  Schedules. All Schedules are incorporated into this Agreement. The
Licensor may revise forms referred to in the Agreement in its discretion.

         23.  Governing Law. This Agreement shall be deemed to have been entered
into in the State of New York, interpreted and enforced in accordance with the
laws of the State of New York.

         24.  Resolution of Disputes. Any controversy or claim arising out of,
or relating to, or referring to any provision of this Agreement, or the breach
thereof, shall be resolved by final and binding arbitration in New York, New
York administered by the American Arbitration Association under the Commercial
Arbitration Rules. The language of the arbitration shall be

                                       23
<PAGE>
English and the arbitrator shall speak English fluently. All documents which are
not in English shall be submitted with an English translation thereof. The
decision of the arbitrator shall be final and binding and any court with proper
jurisdiction shall be entitled to issue a final decree enforcing the arbitral
award. Service of process or notice in any such arbitration shall be effective
if delivered in the manner required by Section 21 herein. Any such arbitration
proceeding shall be before a single arbitrator selected by the parties from a
list of arbitrators provided by the American Arbitration Association of active
or retired attorneys, law professors, or judicial officers with at least ten
(10) years experience in general commercial matters.

Notwithstanding the foregoing, Licensor shall be entitled to seek equitable
relief in a court of competent jurisdiction without first submitting the matter
to arbitration with respect to alleged breaches or threatened breaches of
Sections 7, 11.4 and 12 herein, in which case, Licensee hereby consents to the
jurisdiction of the United States District Court for the Southern District of
New York and of the Supreme Court of the State of New York, County of New York,
in any dispute arising under this Agreement and agrees further that service of
process or notice in any such action, suit or proceeding shall be effective if
delivered in the manner required by Section 21 herein.

         25.  Cooperation. Each party hereto shall cooperate with the other
party hereto and shall take such further action and shall execute and deliver
such further documents as may be necessary or desirable in order to carry out
the provisions and purposes of this Agreement.

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

         27.  Entire Agreement. This Agreement (including the exhibits and
schedules hereto, each of which is incorporated herein and made a part of this
Agreement) constitutes the entire agreement and understanding of the parties
hereto and terminates and supersedes any and all prior agreements, arrangements
and understandings, both oral and written, express or implied, between the
parties hereto concerning the subject matter of this Agreement.

                                       24
<PAGE>
         IN WITNESS WHEREOF, the parties have first caused this Agreement to be
executed as of the date first above written,

AGREED AND ACCEPTED:

KOBRA INTERNATIONAL, LTD.                          SIGNATURE EYEWEAR, INC.

By: /s/ B. Brand Konheim                           By: /s/ Michael Prince
    -----------------------                            -----------------------
    Name: B. Brand Konheim                             Name: Michael Prince
    Title: CEO                                         Title: CEO

                                       25
<PAGE>
SCHEDULE 1 OF THE LICENSE AGREEMENT BETWEEN KOBRA INTERNATIONAL, LTD. AND
SIGNATURE EYEWEAR, INC. OF OCTOBER 12, 2005

Label Level #1 - Nicole Miller Collection

Label Level #2 - Nicole Miller New York

Label Level #3 - Nicole by Nicole Miller

                                       26
<PAGE>
SCHEDULE 2 OF THE LICENSE AGREEMENT BETWEEN KOBRA INTERNATIONAL, LTD. AND
SIGNATURE EYEWEAR, INC. DATED OCTOBER 12, 2005

LICENSED PRODUCTS:

Ophthalmic eyewear (including cases)

Sunglasses (including cases)

                                       27
<PAGE>
SCHEDULE 3- OF THE LICENSE AGREEMENT BETWEEN KOBRA INTERNATIONAL, LTD. AND
SIGNATURE EYEWEAR INC. OF OCTOBER 12, 2005

The following listing sets forth the various categories of retailers to whom
Licensee shall sell Licensed Products in accordance with the terms of the
Agreement. While the specific retailers identified are for example only,
Licensee may sell to these retailers without further approval from Licensor.
Licensee may sell to other retailers within the various Distribution Levels only
upon prior written approval from Licensor. Licensee shall notify Licensor of any
additional retailers to whom it desires to sell Licensed Products in the form
annexed hereto as Schedule 8. Licensor shall notify Licensee within five (5)
business days of written notice whether or not in its sole discretion it
approves such newly identified retailer.

Distribution #1 - (Nicole Miller Collection) Distribution: Neiman Marcus, Saks
Fifth Avenue, Nordstrom, Bloomingdale's, Bergdorf Goodman, Barney's, and
comparable high end specialty stores and websites.

Distribution #2 - (Nicole Miller New York) Distribution: Lord & Taylor,
Federated other than Bloomingdale's, Saks, Inc. Department Store Group, May
Company, Dillards, Marshall Fields, and comparable better department and
specialty stores. Optical independents; National optical chains; sun specialty
stores; optical and sunwear websites

Distribution #3 - (Nicole by Nicole Miller) Distribution:

J. C Penney

Distribution #4 - Closeouts and Seconds: Marshall's, T.J.Maxx, Loehmann's, Ross
Stores, Syms, Century 21, Off Fifth, Nordstrom Rack, Filene's Basement,
America's Best, and Eyeglass World.

                                       28
<PAGE>
                                  NICOLE MILLER

SCHEDULE 4

                             PRODUCT APPROVAL SHEET
                             ----------------------

Please submit this sheet completed at every approval stage from initial sketch
to final production approval, updating it, after each approval to include
current information and any changes. Also include technical drawings and a photo
upon 1st sample stage and thereafter. At final sample stage, NICOLE MILLER
should have a complete set of these line sheets, containing everything that is
on the current seasonal line! ONE SHEET PER STYLE PLEASE! (If you need more
space please attach swatches and/or drawings.)

COMPANY: ______________________________   SEASON: ______________________________

LABEL: ________________________________   STYLE #: _____________________________

DESCRIPTION OF PRODUCT:

________________________________________________________________________________

________________________________________________________________________________

APPROVAL STAGE: ________________________________________________________________

SUGGESTED RETAIL COST: _________________________________________________________

MATERIAL(S): ___________________________________________________________________

SIZES: _________________________________________________________________________

COLOR / PRINT NAMES AND SWATCHES:

_________________    _________________    _________________    _________________

(SWATCH)
_________________    _________________    _________________    _________________

(NAME)
_________________    _________________    _________________    _________________

LINE DRAWING / PHOTO:

                                                       Date:____________________

                                                       NICOLE MILLER

                                                       XXX______________________

                                       29
<PAGE>
SCHEDULE 5 - EXTRA CHARGES

The Charge for a personal appearance by Nicole Miller shall be $500 per day plus
expenses. Expense shall include first class airfare, hotels, meals, and
transportation.

THE FOLLOWING IS THE NEW STANDARD FORMAT FOR DEVELOPING NEW NICOLE MILLER PRINTS
AND THEIR MENU OF PRICES, TO ALL LICENSEES, USED UNDER ANY LABEL:

Licensor will create seven new prints, two times a year (Fall & Spring). Three
of these prints are designated for sole use under the NICOLE MILLER New York
label and the NICOLE MILLER kiss label, for all licensees use. Another three
prints are designated for sole use under the NICOLE & Co. label, for all
licensees use. And the last print is designated for sole use under the Nicki
label. The use of these prints must maintain a distribution that is congruent
with what Licensor has designated appropriate for that print and label.

These prints come free of charge to all licensees, subject to Licensor approval.
With these prints, come two free change options, such as....

         Changing 1-3 colors inside the print
         Changing the scale of the print

These changes are all subject to approval by Licensor.

Any changes to the print thereafter, results in a fee as follows....

         o    Change 1-3 colors....$100
         o    Change 3-6 colors....$200
         o    Changing the scale of a print....$100

These changes are all subject to approval by Licensor.

Any licensee has the option to purchase more prints. These prints are not
exclusive to the licensee and are distributed by the Licensor at it's
discretion. These prints are also subject to approval by Licensor. Each
additional print is $400 US Dollars.

NICOLE MILLER Collection fabrics (1 yard) are also available, free of charge, to
any licensee for their product use, but are also subject to Licensor approval.

If Licensor needs to do any work to these Collection fabrics for Licensee usage,
the prices are as follows....

         o    Scanning the fabric into the computer with an option to change the
              scale of the pattern ....$100
         o    Manipulating the Scanned in Fabric, such as changing the colors
              (1-3) ....$100
         o    Manipulating the Scanned in Fabric, such as changing the colors
              (3-6) ....$200
         o    Putting the pattern into repeat ....$100

                                       30
<PAGE>
SCHEDULE 6 - ADVERTISING APPROVAL FORM

                            ADVERTISING APPROVAL FORM
                            -------------------------

Licensee / Store                ________________________________________________

Contact person                  ________________________________________________

Phone number                    ________________________________________________

Season / year of ad             ________________________________________________

Type of image being used
(ad creative, runway, etc.)     ________________________________________________

Name of publication/issue       ________________________________________________

Publication materials deadline  ______________   Disc needed by ________________

Name of publication ad representative / phone number

                                ________________________________________________

Who will be creating the actual ad? ____________________________________________

Licensee Signature              ________________________________________________

NM Corporate Approval           ________________________________________________

All advertising and/or collateral material must be approved by the Nicole Miller
corporate communications department. All proposed copy, artwork, photos, layout
of creative, etc. must accompany this form and be approved before placing an ad.
This form may be faxed to 212.391.1349 to the attention of Nicole Miller
Director of Communications.

Please keep a copy of the approved form for your records. Upon approval, disc
with creative will be sent to the attention of the licensee. It is the
responsibility of the licensee to produce the final ad and incur all charges for
the production.

                                       31
<PAGE>

SCHEDULE 7 - PUBLIC RELATIONS PROGRAM

Licensor has an active public relations program in which Licensee is required to
participate at a cost of [*********************************************] The
monthly cost for 2007 (and for any potential renewal periods thereafter) is
subject to increase upon notice from Licensor. A public relations program
encompasses all facets of visibility for Nicole Miller, as a licensor, and for
the brand. This entails relationships with editors, stylists, producers and
celebrities.

                                       32
<PAGE>

                            Kobra International, Ltd.
                                      d/b/a

                                  NICOLE MILLER

SCHEDULE 8

                                RETAILER APPROVAL
                                -----------------

Date:                      _____________________________________________________

Licensee Name:             _____________________________________________________

Proposed Label/
Distribution level:        _____________________________________________________

Type of Merchandise:       _____________________________________________________

Customer Corporate Name:   _____________________________________________________

DBA Name:                  _____________________________________________________

Owners Name:               _____________________________________________________

Contact Name:              _____________________________________________________

Corporate Address:         _____________________________________________________

Phone #:                   _____________________________________________________

Territory:                 _____________________________________________________

Store Locations:           _____________________________________________________

Number of Stores:          _____________________________________________________

Key Suppliers /
Other brands in store:     _____________________________________________________

Comments:                  _____________________________________________________

                           _____________________________________________________

Licensor's Signature
of Approval                _____________________________________________________

Date:                      _____________________________________________________

                                       33EXHIBIT 10.18
                                                                   -------------

<TABLE><CAPTION>
<S>     <C>
                                                     COMMERCIAL PROMISSORY NOTE
------------------------------------------------------------------------------------------------------------------------------------
 NAME(S)/ADDRESS(ES) OF BORROWER(S) ("Borrower, I, My or Me")              NAME/ADDRESS OF LENDER (CREDITOR) ("Lender, You or Your")
   SIGNATURE EYEWEAR, INC.
                                                                           HOME LOAN INVESTMENT COMPANY
                                                                           205 NORTH 4TH STREET
   BY: MICHAEL PRINCE, CEO                                                 GRAND JUNCTION, CO 81501
   498 N. OAK STREET
   INGLEWOOD CA 90302
------------------------------------------------------------------------------------------------------------------------------------
    NOTE NUMBER        TRANSACTION DATE         MATURITY DATE         OFFICE         OFFICER                      LOAN AMOUNT
     100092449             10/3l/05                7/31/07                           EBD                           655,693.00
------------------------------------------------------------------------------------------------------------------------------------

For value received, on or before the Maturity Date, the undersigned Borrower promises to pay the principal amount, together with
interest, and any other charges, including service charges, to the order of the Lender at its office at the address noted above or
holder, all in lawful money of the United States of America. The undersigned further agrees to the terms below and on page two of
this Note.

Words, numbers or phrases preceded by a [_] are applicable only if the [_] is marked.
------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT -                                                                                                      $ 655,693.00
Six hundred fifty five thousand six hundred ninety three & no/100
------------------------------------------------------------------------------------------------------------------------------------
PAYMENT SCHEDULE:  [x] In 1 installments of $         [_] plus interest [x] including interest       starting
[_] interest only starting                                                  and payable          [_] monthly.         [_] quarterly,
[_]
[X] interest, principal and other charges due on Maturity Date.
[_] other payment schedule:

INTEREST RATE:
This loan is subject to    [x] a fixed interest rate of 12.0000% per             [_] annum a variable simple interest rate, which is
                           % greater than:    [_]  equal to:  [_]                  % less than: the following Index:

------------------------------------------------------------------------------------------------------------------------------------
Initial Variable Simple          Present Variable          Minimum                Maximum                Interest Rate
   Interest Rate                   Interest Rate         Interest Rate          Interest Rate          Changes Will Occur:
       N/A  %                          N/A  %              N/A  %                 N/A  %                     N/A  %
------------------------------------------------------------------------------------------------------------------------------------
Interest will be calculated on the unpaid balance for the actual days outstanding on a:   [x] 365/365 Day Basis.    [_] / Day Basis.

DEFAULT RATE:  If in default the interest rate shall be:  [x]  25.000 %  per annum.    [_]   %  in excess of the Index.

LATE CHARGE:   If Borrower is more than 10 days late in making any payment, in addition to such payment, Borrower will pay a late
charge of:

[_]  the lesser of  [_] the greater of  [x] an amount equal to  [x] $15.00  or  [x] 5.000% of the payment in default.

PAYABLE ON DEMAND:  [_] Payment is due upon demand.  [X] Payment is due upon demand, but in any event, not later than Maturity Date.

LINE OF CREDIT:  [_] If this Note is not in default, Lender may make advances an a continuing basis up to the Principal Amount.
------------------------------------------------------------------------------------------------------------------------------------
[_]   Additional Note Provisions:

------------------------------------------------------------------------------------------------------------------------------------
Security for this Note, if any, (the "Collateral") is granted pursuant to the following document(s) executed on the date(s) noted
below:

    [X] security agreement dated 10/31/05

    [_] mortgage, deed of trust, trust deed or security deed dated

    [_] other

------------------------------------------------------------------------------------------------------------------------------------
  By initialing, I acknowledge this is page 1 of 2                                ------        ------         ------        ------
  of the Commercial Promissory Note.                                             Initials      Initials       Initials      Initials
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

ADDITIONAL PROVISIONS

If this Note is secured by a security agreement, mortgage, deed of trust, trust
deed, security deed or loan agreement of even or previous date, as set forth on
page one hereof, it is subject to all the terms thereof. Additionally, the
Lender may, upon deeming itself insecure or upon Borrower's default in payment
or in the terms of this or any other agreement Borrower may have with Lender
declare the entire principal amount due and payable. The Borrower severally
waives demand, notice, and protest and any defense due to extensions of time or
other indulgence by Lender or to any substitution or release of collateral.

If there is a Default Rate shown an page one, it may be applied to all periods
of time in which a default exists. If the interest rate on this note is tied to
an Index stated on page one, that Index is used solely to establish a base from
which the actual rate of interest payable under this Note will be figured, and
is not a reference to any actual rate of interest charged by any lender to any
particular borrower. If the interest rate varies in accordance with a selected
Index, if that Index ceases to exist, Lender may substitute a similar index
which will become the Index.

If this Note is payable in installments, each installment payment will be due on
the same day of the installment period as the day upon which payments commence,
unless otherwise specified. Failure to pay this Note according to specified
terms shall constitute a default. If permitted by law and at Lender's option,
interest up to the highest rate permitted by law may be assessed on any interest
which is past due as the result of any payment not being paid when due.

The Lender shall have the right to hold or apply its own indebtedness or
liability to Borrower in payment of, or to provide collateral security for the
payment of this Note either prior to or after Maturity Date. If legal
proceedings are instituted to enforce the terms of this Note, Borrower agrees to
pay all costs of the Lender in connection therewith, including reasonable
attorney fees, to the extent permitted by law. If this Note is secured, then
upon default in payment or in the terms of this agreement, the Lender shall have
all rights of a secured party under the Uniform Commercial Code and/or other
law(s) governing secured transactions. If permitted by law, Borrower waives any
otherwise required notice of: presentment; demand; acceleration; and, intent to
accelerate.

This Note is governed by the laws of the state in which it is written except to
the extent that federal law controls.

The Borrower expressly agrees to all of the provisions hereof and signifies
assent thereto by the signature below. IN WITNESS WHEREOF, the Borrower has
executed this Note on the date and year shown below.

SIGNATURE EYEWEAR, INC.

By X                                   By X
  ---------------------------------      ---------------------------------
  SIGNATURE EYEWEAR, INC.      Date      BY: MICHAEL PRINCE, CEO      Date
Its                                    Its

By X                                   By X
  ---------------------------------      ---------------------------------
                               Date                                   Date
Its                                    Its
<PAGE>

                         COLLATERAL INSURANCE AGREEMENT
                                  ("AGREEMENT")

<TABLE><CAPTION>
<S>     <C>
------------------------------------------------------------------------------------------------------------------------------------
NAME/ADDRESS OF BORROWER(S)/PURCHASER ("Borrower," "I," "My," or "Me")             NAME/ADDRESS OF LENDER ("Lender,")
SIGNATURE EYEWEAR, INC.                                                            HOME LOAN INVESTMENT COMPANY
                                                                                   205 NORTH 4TH STREET
BY: MICHAEL PRINCE, CEO                                                            GRAND JUNCTION, CO 81501
498 N. OAK STREET
INGLEWOOD CA 90302
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
NAME OF COLLATERAL OWNER OTHER THAN BORROWER ("Non-Borrower Collateral Owner)      ADDRESS OF NON-BORROWER COLLATERAL OWNER

------------------------------------------------------------------------------------------------------------------------------------
 Loan/Note Number       Transaction Date       Maturity Date       Loan Amount       Officer       Loan Amount       Interest Rate

   1100092449               10/31/05              7/31/07           655,693.00       EBD           655,693.00           12.0000
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Words, phrases, or the text of a paragraph following a [_] are only applicable
if the [_] is marked, e.g., [x].

1.   Collateral Owner. For purposes of this Agreement, the term "Collateral
     Owner" refers to any party who has an interest in the collateral described
     in Provision 3, Collateral, below. Unless otherwise indicated with a mark
     in one of the boxes below, the Collateral Owner is the Borrower identified
     above.

           [_]  "Collateral Owner" includes the Borrower and the Non-Borrower
                Collateral Owner identified above.
           [_]  "Collateral Owner" is the Non-Borrower Collateral Owner
                identified above.
           Throughout this Agreement, references to Collateral Owner are to be
           construed as set forth in this Provision 1.

2.   Requirement to Insure Collateral. As a condition of the credit granted by
     Lender to Borrower Referenced above (the "Loan"), Collateral Owner is
     required to continuously insure the collateral pledged to secure the Loan.
     The collateral securing the Loan is described below in Provision 3,
     Collateral, and the insurance coverage(s) that Collateral Owner must keep
     and maintain an the collateral securing the Loan are described below in
     Provision 4, Required Insurance. Collateral Owner agrees to maintain the
     insurance required by this Agreement for the entire term of the Loan.

3.   Collateral. Collateral Owner agrees to maintain the insurance required by
     the Agreement on the following-described property that has been pledged as
     collateral security for the Loan (the "Collateral"):

     SEE ATTACHED

4.   Required Insurance. The Collateral Owner agrees to obtain and maintain the
     following insurance on the Collateral:

     TYPE OF COVERAGE:
     [_]  Fire, Theft  [_] Collision  [_] Comprehensive  [_] All Risk Hull
     [_]  Flood   [_]  Property Hazard
     [_]  Other:

     INSURANCE COMPANY                           INSURANCE AGENT

     Policy or Binder Number:
     Effective Dates: From:               To:
                                                     Agent Telephone:

Collateral Owner has arranged for the Required Insurance through the insurance
company and insurance agent described above, and agrees to instruct the
insurance agent to designate lender as loss payee on the policy(ies) evidencing
the Required Insurance. Collateral Owner further agrees to instruct the
insurance agent to notify Lender of any change in coverage or cancellation of
policy(ies) at least fifteen (15) days prior to such change or cancellation.
Collateral Owner acknowledges that Lender may furnish a copy of this form to the
Insurance Agent listed above for purposes of verifying the insurance information
described above.

Collateral Owner and Borrower, if different, understand and agree that if for
any reason the Required Insurance is not obtained and continuously maintained,
that Lender may, in its sole discretion, secure insurance to protect its
interest in the collateral according to the terms of the agreement evidencing
the Loan, and may, to the extent permitted by law, add any sums so paid to the
balance owning under the Loan. Collateral Owner and Borrower, if different,
understand and agree that the insurance coverage that Lender may obtain to
protect its interest does not provide bodily injury and property damage
liability insurance coverage, and does not comply with any financial
responsibility or no-fault insurance laws. Collateral Owner and Borrower, if
different, acknowledge and agree that Lender shall not be liable for any claims
or losses which may arise from Collateral Owner's failure to adequately insure
the Collateral.

SIGNATURE(S) / DATE: The undersigned have executed this Collateral Insurance
Agreement on the date below, and acknowledge that he/she/they have read it,
understand it, and have received a completely filled-in copy of it.

BORROWER: SIGNATURE EYE WEAR, INC.

x____________________________________    x______________________________________
 SIGNATURE EYEWEAR, INC.         Date     BY: MICHAEL PRINCE, CEO           Date

X____________________________________    X______________________________________
                                 Date                                       Date

COLLATERAL OWNER OTHER THAN BORROWER:

X____________________________________    X______________________________________
                                 Date                                       Date
<PAGE>

                          COMMERCIAL SECURITY AGREEMENT
                                  ("AGREEMENT")
<TABLE><CAPTION>
<S>     <C>
------------------------------------------------------------------------------------------------------------------------------------
NAME(S)/ADDRESS(ES) OF OBLIGOR(S)/OBLIGOR-DEBTOR(S) ("Borrower")         NAME/ADDRESS OF SECURED PARTY ("Lender")
SIGNATURE EYEWEAR, INC.                                                  HOME LOAN INVESTMENT COMPANY
                                                                         205 NORTH 4TH STREET
BY: MICHAEL PRINCE, CEO                                                  GRAND JUNCTION, CO 81501
498 N. OAK STREET
INGLEWOOD CA 90302

------------------------------------------------------------------------------------------------------------------------------------
BORROWER'S TYPE OF BUSINESS ORGANIZATION (Corporation, Partnership,      BORROWER'S STATE OF ORGANIZATION/FORMATION
L.L.C., Assumed Name, etc.)
                                                                         COLORADO

------------------------------------------------------------------------------------------------------------------------------------
NAME(S) OF DEBTOR(S) OTHER THAN BORROWER ("Non-Borrower Debtor")         ADDRESS(ES) OF NON-BORROWER DEBTOR(S)
(If Applicable)

------------------------------------------------------------------------------------------------------------------------------------
NON-BORROWER DEBTOR'S TYPE OF BUSINESS ORGANIZATION (Corporation,        NON-BORROWER DEBTOR'S STATE OF ORGANIZATION/FORMATION/
Partnership, L.L.C., Assumed Name, etc.)                                 RESIDENCE (if a natural person)
(If Applicable)

------------------------------------------------------------------------------------------------------------------------------------
   AGREEMENT DATE             OFFICER            LOAN AMOUNT                INTEREST RATE                      NOTE NUMBER
------------------------------------------------------------------------------------------------------------------------------------
      10/31/05                EBD                 655,693.00                 12.0000                            100092449
------------------------------------------------------------------------------------------------------------------------------------
 Words, phrases, or the text of a paragraph following a [_] are only applicable if the [_] is marked, e.g. [x]
</TABLE>

1. DEBTOR - For purposes of this Agreement, the term "Debtor" refers to any
party who has an interest in the Collateral defined in Provision 4 below. Unless
otherwise indicated with a mark in one of the boxes below, the Debtor is the
Borrower identified above.

[_]  "Debtor" includes the Borrower and the Non-Borrower Debtor identified
     above.

[_]  "Debtor" is the Collateral owner identified above as Non-Borrower Debtor.

[_]  "Debtor" is a guarantor and also the Collateral owner, and is identified
     above as Non-Borrower Debtor.

Throughout this Agreement, references to Debtor are to be construed as set forth
in this Provision 1, and as more specifically defined by Article 9 of the
Uniform Commercial Code.

2. SECURITY INTEREST GRANT - Debtor, in consideration of the Obligations to
Lender, as defined in Provision 3 below, hereby agrees to all of the terms of
this Agreement and further hereby specifically grants Lender a continuing
security interest in the collateral described in the paragraph(s) following any
boxes) marked in Provision 4 below, including any collateral described under
paragraph 0 of Provision 4 ("Specific"). Debtor further grants Lender a security
interest in the proceeds of said collateral, the proceeds of hazard insurance
and eminent domain or condemnation awards involving the collateral, all products
of, and accessions to, such collateral or interests therein, any and all
deposits or other sums at any time credited by or due from Lender to Debtor, and
any and all instruments, documents, policies, and certificates of insurance,
securities, goods, accounts receivable, choses in action, chattel paper, cash,
property, and the proceeds thereof (whether or not the same are Collateral or
proceeds thereof hereunder) owned by Debtor or in which Debtor has an interest
which are now or at any time hereafter in possession or control of Lender or in
transit by mail or carrier to or from Lender or in possession of any third party
acting on Lender's behalf, without regard to whether Lender received the same in
pledge, for safekeeping, as agent or otherwise, or whether Lender has
conditionally released the same. Debtor's grant of a continuing security
interest in the foregoing described collateral secures to Lender the payment of
all loans, advances, and extensions of credit from Lender to Borrower, including
all renewals and extensions thereof and any and all obligations of every kind
whatsoever, whether heretofore, now, or hereafter existing or arising between
Lender and Borrower and howsoever incurred or evidenced, whether primary,
secondary, contingent, or otherwise.

3. OBLIGATIONS - As used in this Agreement, the term "Obligations" shall mean
any and all of Borrower's and/or Debtor's obligations to Lender, whether they
arise under this Agreement or the Note, Loan Agreement, Guaranty, or other
evidence of debt executed in connection with this Agreement, or under any other
mortgage, trust deed, deed of trust, security deed, security agreement, note,
lease, instrument, contract, document, or other similar writing heretofore, now,
or hereafter executed by the Borrower and/or Debtor to Lender, including any
renewals, extensions and modifications thereof, and including oral agreements
and obligations arising by operation of law. The Obligations shall also include
all expenditures that Lender may make under the terms of this Agreement or for
the benefit of Borrower and/or Debtor, all interest, costs, expenses, and
attorneys' fees accruing to or incurred by Lender in enforcing the Obligations
or in the protection, maintenance, preservation, or liquidation of the
Collateral, and any of the foregoing that may arise after the filing of any
petition by or against Borrower and/or Debtor under the Bankruptcy Code,
irrespective of whether the obligations do not accrue because of the automatic
stay under Bankruptcy Code ss. 362 or otherwise.

4. DESCRIPTION OF COLLATERAL - The collateral covered by this Agreement (the
"Collateral") is all of the Debtor's property described below, with regard to
which a mark has been placed in the applicable box, which the Debtor now owns or
may hereafter acquire or create and which may include, but shall not be limited
to, any items listed on any schedule or list attached hereto.

<TABLE><CAPTION>
<S>     <C>
------------------------------------------------------------------------------------------------------------------------------------
  By initialing, I acknowledge this is page 1 of 10                               ------        ------         ------        ------
  of the Commercial Security Agreement.                                          Initials      Initials       Initials      Initials
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[X]  A. ACCOUNTS - "Accounts" shall consist of Debtor's right to payment of a
     monetary obligation, whether or not earned by performance, (i) for property
     that has been or is to be sold, leased, licensed, assigned, or otherwise
     disposed of; (ii) for services rendered or to be rendered; (iii) for a
     policy of insurance issued or to be issued; (iv) for a secondary obligation
     incurred or to be incurred; (v) for energy provided or to be provided; (vi)
     for the use or hire of a vessel under a charter or other contract; (vii)
     arising out of the use of a credit card or charge card or information
     contained on or for use with the card; (viii) as winnings in a lottery or
     other game of chance operated or sponsored by a State, governmental unit of
     a State, or person licensed or authorized to operate the game by a State or
     governmental unit of a State, or (ix) for health-care-insurance
     receivables.

[X]  B. INVENTORY - "Inventory" shall consist of all inventory and goods, other
     than farm products, which (a) are leased by Debtor as lessor, (b) are held
     by Debtor for sale or lease or to be furnished under a contract of service,
     (c) are furnished by Debtor under a contract of service, or (d) consist of
     raw materials, work in process, or materials used or consumed in business.

[X]  C. EQUIPMENT - "Equipment" shall consist of all of Debtor's goods other
     than inventory, farm products or consumer goods. Equipment includes, but is
     not limited to, all equipment and fixtures of every nature and description
     whatsoever, now owned or hereafter acquired by Debtor, wherever located,
     including all machinery, manufacturing equipment, shop equipment,
     furnishings, furniture, record keeping equipment, and vehicles, together
     with all accessions, parts, imbedded software, attachments, accessories,
     tools, and dies, or appurtenances thereto intended for use in connection
     therewith, and all substitutions, betterments, and replacements thereof and
     additions thereto.

[X]  D. INSTRUMENTS - "Instruments" shall consist of all negotiable instruments
     and other writings that are now owned or hereafter acquired by Debtor that
     evidence a right to the payment of a monetary obligation, are not
     themselves security agreements or leases, and are of a type that in the
     ordinary course of business are transferred by delivery with any necessary
     endorsements or assignments. Instruments shall not include investment
     property, letters of credit, or writings that evidence a right to payment
     arising out of the use of a credit or charge card or information contained
     on or for use with the card.

[X]  E. FIXTURES - "Fixtures" shall consist of all Debtor's goods that have or
     will become so related to the real property described below that an
     interest in them arises under real property law. Fixtures include, but are
     not limited to, any fixtures and appurtenances thereto now owned or
     hereafter acquired by Debtor, and such other goods, chattels, equipment,
     and personal property affixed or in any manner attached to the real
     property and/or building(s) or structure(s), including all additions and
     accessions thereto, and replacements, substitutions, insurance benefits,
     and proceeds thereof.

[X]  F. GENERAL INTANGIBLES - "General Intangibles" shall consist of all
     personal property now owned or hereafter acquired by Debtor, including
     things in action, other than accounts, chattel paper, commercial tort
     claims, deposit accounts, goods, instruments, investment property,
     letter-of-credit rights, letters of credit, money, and oil, gas, or other
     minerals before extraction. General Intangibles shall also include all
     payment intangibles now held or hereafter acquired by Debtor and all
     software now owned or hereafter acquired by Debtor, which is not
     encompassed by the term "Goods," and all supporting information pertaining
     or relating thereto. General Intangibles include, but are not limited to,
     trade names, patents, formulas, service marks, trademarks, intellectual
     property, rights that arise under a license of intellectual property,
     including the right to exploit the intellectual property without liability
     for infringement, and the right to payment of a loan of funds that is not
     evidenced by chattel paper or an instrument.

[X]  G. INVESTMENT PROPERTY - "Investment Property" shall consist of all
     securities, whether certificated or uncertificated, security entitlements,
     securities accounts, commodities contracts, and commodities accounts, now
     held or hereafter acquired by Debtor, together with all contracts,
     instruments, and general intangibles related thereto and all monies,
     income, proceeds, and benefits attributable or accruing to said property,
     including, but not limited to, all stock rights, options, rights to
     subscribe, dividends, liquidating dividends, stock dividends, dividends
     paid in stock, new securities, and the properties and benefits to which the
     Debtor is, or may hereafter become, entitled to receive on account of said
     property.

[X]  H. CHATTEL PAPER - "Chattel Paper" shall consist of all records now held or
     hereafter acquired by Debtor that evidence both a monetary obligation and a
     security interest in specific goods, a security interest in specific goods
     and software used in the goods, a security interest in specific goods and
     license of software used in the goods, a lease of specific goods, or a
     lease of specific goods and license of software used in the goods. In this
     paragraph, "monetary obligation" means a monetary obligation secured by the
     goods or owed under a lease of the goods and includes a monetary obligation
     with respect to software used in the goods. The term does not include (i)
     charters or other contracts involving the use or hire of a vessel or (ii)
     records that evidence a right to payment arising out of the use of a credit
     card or charge card or information contained on or for use with the card.
     If a transaction is evidenced by records that include an instrument or
     series of instruments, the group of records taken together constitutes
     chattel paper. The definition of chattel paper includes electronic
     chattel-paper. Debtor agrees that it will assist Lender in obtaining
     control of the electronic chattel paper by (i) creating a single
     authoritative copy of the record(s) existing which is unique and
     identifiable, (ii) ensuring that the authoritative copy identifies the
     Lender as the assignee of the record(s), and (iii) ensuring that the
     authoritative copy is communicated to and maintained by the Lender or its
     designated custodian. Copies or revisions that add or change an identified
     assignee of the authoritative copy can be made only with the participation
     of the Lender. Debtor agrees that each copy or authoritative copy and any
     copy of a copy shall be readily identifiable as a copy that is not the
     authoritative copy, and any revision of any authoritative copy is readily
     identifiable as an authorized or unauthorized revision.

[_]  I. STANDING TIMBER - "Standing timber" shall consist of all of the standing
     timber to be cut and removed from the real property described below upon
     which Debtor has granted to Lender a security interest evidenced by a
     mortgage, trust deed, deed of trust, security deed, or similar security
     instrument conveying rights to the real property, including rights to the
     standing timber. Standing timber includes all accounts arising out of the
     sale of such standing timber, including all products thereof in whatever
     form, and encompasses arrangements based on the sale of the timber at the
     moment that it is severed from the qround and is measured.
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[_]  J. TITLED VEHICLE - "Titled Vehicle" shall consist of any and all
     vehicle(s) described below, wherever located, now owned or hereafter
     acquired by Debtor, and all additions and accessions thereto, replacements
     thereof, and substitutions therefor; and all documents of title evidencing
     or representing any part thereof, and all products, rents, and proceeds
     thereof.

[X]  K. LETTER OF CREDIT RIGHTS - "Letter of Credit Rights" shall consist of a
     right to payment or performance under a Letter of Credit, whether or not
     the beneficiary(ies) has demanded or is at the time entitled to demand
     payment or performance. The term does not include the right of a
     beneficiary to demand payment or performance under a letter of credit.
     Debtor agrees to cooperate with Lender in obtaining the Letter of Credit
     issuer or its nominated persons' consent to assignment of the proceeds of
     the Letter of Credit.

[_]  L. AS-EXTRACTED COLLATERAL - "As-Extracted Collateral" shall consist of all
     oil, gas, and other minerals which are to be extracted from the real
     property described below upon which Debtor has granted to Lender a security
     interest evidenced by a mortgage, trust deed, deed of trust, security deed
     or similar security instrument conveying rights to the real property,
     including rights to such oil, gas, or other minerals. As-Extracted
     Collateral includes all accounts arising out of the sale at the wellhead or
     at the minehead of such oil, gas, or other minerals. The terms "at the
     wellhead" and "at the minehead" encompass arrangements based on the sale of
     the oil, gas, or other minerals at the moment that it issues from the
     ground and is measured, without technical distinctions as to whether title
     passes at the "Christmas tree" of a well, the far side of a gathering tank,
     or at some other point.

[_]  M. GOVERNMENT PROGRAM PAYMENTS - "Government Program Payments" shall
     consist of all Debtor's right to payment of a monetary obligation,
     accounts, general intangibles, and other benefits, now held or hereafter
     acquired, that arise under or as a result of Debtor's participation in any
     prior, contemporaneous, or future state or federal governmental program,
     including any such program offered by a subdivision, agency, department,
     county, parish, municipality, or other unit of the government of the United
     States, a state, or a foreign country, or any organization having a
     separate corporate existence from such governmental entities if the
     organization is eligible to issue debt on which interest is exempt from
     income taxation under the laws of the United States. Government Program
     Payments include, but are not limited to, letters of entitlement,
     deficiency payments, diversion payments, payments in kind, emergency
     assistance payments, production flexibility contracts, conservation reserve
     payments, warehouse receipts, and storage payments.

[X]  N. DEPOSIT ACCOUNTS - "Deposit Accounts" shall consist of all demand, time,
     savings, passbook, and similar deposit accounts which are now or are
     hereafter held by Debtor in Lender's institution, or maintained in another
     bank ("Bank") and for which Debtor, Lender and the Bank have entered into a
     duly executed Control Agreement (as used herein, the term Bank means an
     organization that is engaged in the business of banking, and includes
     banks, savings banks, savings and loan associations, credit unions, and
     trust companies), unless the deposit is an Individual Retirement Account
     (IRA), Keogh Account, or other tax-deferred retirement account, or Debtor's
     right of withdrawal arises only in a representative capacity.

[_]  O. SPECIFIC - "Specific" refers to the specific property, together with all
     related rights shown below.

     [_]  The term Obligations is limited to the extension of credit Lender is
          providing Borrower, the proceeds of which are to purchase the specific
          property shown below, including any extensions and renewals thereof;
          plus related interest, costs, expenses, and attorneys' fees as called
          for in Provision 2, debt unrelated to purchase proceeds being excluded
          regardless of words to the contrary in Provision 2.

    SPECIFIC COLLATERAL DESCRIPTION. The properties and interest in properties
    described below and also described in the applicable paragraph(s) above are
    sometimes hereinafter individually and collectively referred to as the
    "Collateral."

REAL PROPERTY DESCRIPTION, if Collateral includes Fixtures, Standing Timber, or
As-Extracted Collateral

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5. WARRANTIES - The Debtor warrants the following: it has or will acquire free
and clear title to all of the Collateral, unless otherwise provided herein; the
security interest granted to the Lender shall be a first security interest, and
the Debtor will defend same to the Lender against the claims and demands of all
persons; the Debtor will fully cooperate in placing or maintaining Lender's lien
or security interest; the Debtor agrees not to allow or permit any lien,
security interest, adverse claim, charge, or encumbrance of any kind against the
collateral or any part thereof, without the Lender's prior written consent; all
of the Collateral is located in the state of the Debtor's address specified on
page one hereof, unless otherwise certified to and agreed to by the Lender, or,
alternatively, is in possession of the Lender; the Debtor will not remove or
change the location of any Collateral without the Lender's prior written
consent; the Debtor will use the Collateral only in the conduct of its own
business, in a careful and proper manner; the Debtor will not use the Collateral
or permit it to be used for any unlawful purpose; except as otherwise provided
in this Agreement with respect to Inventory, Debtor will not, without the
Lender's prior written consent, sell, assign, transfer, lease, charter,
encumber, hypothecate, or dispose of the Collateral, or any part thereof, or any
interest therein, nor will Debtor offer to sell, assign, transfer, lease,
charter, encumber, hypothecate, or dispose of the Collateral, or any part
thereof, or any interest therein; the Debtor will not conduct business under any
name other than that given on page one hereof, nor change, nor reorganize the
type of business entity as described, except upon the prior written approval of
the Lender, in which event the Debtor agrees to execute any documentation of
whatsoever character or nature demanded by the Lender for filing or recording,
at the Debtor's expense, before such change occurs; the information regarding
Debtor's state of organization or formation as set forth on page 1 hereof is
correct, and Debtor further warrants that Debtor will not change Debtor's state
of organization or formation without Lender's prior written consent and will
assist Lender with any changes to any documents, filings, or other records
resulting or required therefrom; the Debtor will keep all records of account,
documents, evidence of title, and all other documentation regarding its business
and the Collateral at the address specified on page 1 hereof, unless notice
thereof is given to the Lender at least ten (10) days prior to the change of any
address for the keeping of such records; the Debtor will, at all times, maintain
the Collateral in good condition and repair and will not sell or remove same
except as to inventory in the ordinary course of business; the Debtor is a
legally created business entity, as described before, and it has the power, and
the person signing is duly authorized, to enter into this Agreement; the
execution of this Agreement will not create any breach of any provision of the
Debtor's organizational documents (Articles of Incorporation and By-Laws if the
Debtor is a corporation, Articles of Organization and Operating Agreement if the
Debtor is a limited liability company, or Certificate of Limited Partnership (if
applicable) or Partnership Agreement if the Debtor is a partnership), or any
other agreement to which the Debtor is or may become a party; all financial
information and statements delivered by the Debtor to the Lender to obtain loans
and extensions of credit are true and correct and are prepared in accordance
with generally accepted accounting principles; there has been no material
adverse change in the financial condition of the Debtor since it last submitted
any financial information to the Lender; there are no actions or proceedings,
including set-off or counterclaim, which are threatened or pending against the
Debtor which may result in any material adverse change in the Debtor's financial
condition or which might materially affect any of the Debtor's assets; and the
Debtor has duly filed all federal, state, municipal, and other governmental tax
returns, and has obtained all licenses, permits, and the like which the Debtor
is required by law to file or obtain, and all such taxes and fees for such
licenses and permits required to be paid, have been paid in full.

6. INSURANCE - The Debtor agrees that it will, at its own expense, fully insure
the Collateral against ail loss or damage for any risk of whatsoever nature in
such amounts, with such companies, and under such policies as shall be
satisfactory to the Lender. All policies shall expressly provide that the Lender
shall be the loss payee or, alternatively, if requested by Lender, mortgagee.
The Lender is granted a security interest in the proceeds of such insurance and
may apply such proceeds as it may receive toward the payment of the Obligations,
whether or not due, in such order as the Lender may in its sole discretion
determine. The Debtor agrees to maintain, at its own expense, public liability
and property damage insurance upon all its other property, to provide such
policies in such form as the Lender may approve, and to furnish the Lender with
copies of other evidence of such policies and evidence of the payments of the
premiums thereon. All policies of insurance shall provide for a minimum 10 days'
written notice of cancellation to Lender. At the request of Lender, such
policies of insurance shall be delivered to and held by Lender. Debtor agrees
that Lender is authorized to act as attorney for Debtor in obtaining, adjusting,
settling, and canceling such insurance and endorsing any drafts or instruments
issued or connected with such insurance. Debtor specifically authorizes Lender
to disclose information obtained in conjunction with this Agreement and from
policies of insurance to prospective insurers of the Collateral. If the Debtor
at any time fails to obtain or to maintain any of the insurance required above
or pay any premium in whole or in part relating thereto, the Lender, without
waiving any default hereunder, may make such payment or obtain such policies as
the Lender, in its sole discretion, deems advisable to protect the Debtor's
property. All costs incurred by the Lender, including reasonable attorneys'
tees, court costs, expenses, and other charges thereby incurred, shall become a
part of the Obligations and shall be payable on demand.

7. TAXES, LIENS, ETC. - The Debtor agrees to pay all taxes, levies, judgments,
assessments, and charges of any nature whatsoever relating to the Collateral or
to the Debtor's business. If the Debtor tails to pay such taxes or other
charges, the Lender, at its sole discretion, may pay such charges on behalf of
the Debtor; and all sums so dispensed by the Lender, including reasonable
attorneys' fees, court costs, expenses, and other charges relating thereto,
shall become a part of the Obligations and shall be payable on demand.

8. ENVIRONMENTAL LAWS - Debtor certifies that as to any real estate which has
been, is now, or will be in the future owned or occupied by Debtor, that such
real estate has not in the past, nor will now or in the future be allowed in any
manner to be exposed to or contain hazardous or environmentally harmful
substances as may be defined or regulated by any state or federal law or
regulation which impacts, in any way, such substances, except to the extent the
existence of such substances has been presently disclosed in writing to Lender,
and Debtor will immediately notify Lender in writing of any assertion made by
any party to the contrary. Debtor indemnifies and holds Lender and Lender's
directors, officers, employees, and agents harmless from any liability or
expense of whatsoever nature, including reasonable attorneys' fees, incurred
directly or indirectly as a result of Debtor's involvement with hazardous or
environmentally harmful substances as may be defined or regulated as such under
any state or federal law or regulation.

9. PROTECTION OF COLLATERAL - Debtor agrees that Lender may, at Lender's sole
option, whether before or after any event of default, and without prior notice
to Debtor, take the following actions to protect Lender's interest in the
Collateral: (a) pay for the maintenance, preservation, repair, improvement, or
testing of the Collateral; (b) pay any filing, recording, registration,
licensing, certification, or other fees and

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charges related to the Collateral; or (c) take any other action to preserve and
protect the Collateral or Lender's rights and remedies under this Agreement, as
Lender may deem necessary or appropriate from time to time. Debtor agrees that
Lender is not obligated and has no duty whatsoever to take the foregoing
actions. Debtor further agrees to reimburse Lender promptly upon demand for any
payment made or any expenses incurred by Lender pursuant to this authorization.
Payments and expenditures made by Lender under this authorization shall
constitute additional Obligations, shall be secured by this Agreement, and shall
bear interest thereon from the date incurred at the maximum rate of interest,
including any default rate, if one is provided, as set forth in the notes
secured by this obligation.

10. INFORMATION AND REPORTING - The Debtor agrees to supply to the Lender such
financial and other information concerning its affairs and the status of any of
its assets as the Lender, from time to time, may reasonably request. The Debtor
further agrees to permit the Lender, its employees, and agents, to have access
to the Collateral for the purpose of inspecting it, together with all of the
Debtor's other physical assets, if any, and to permit the Lender, from time to
time, to verify Accounts as well as to inspect, copy, and to examine the books,
records, and files of the Debtor.

11. ACCOUNTS - The following provisions shall apply to all accounts included in
the Collateral and--all accounts arising from the sale of inventory included in
the Collateral:

As of the time any account becomes subject to the security interest (or pledge
or assignment, as applicable) granted hereby, Debtor shall be deemed further to
have warranted as to each and all of such accounts as follows: (a) Each account
and all papers and documents relating thereto are genuine and in all respects
what they purport to be; (b) each account is valid and subsisting and arises out
of a bona fide sale of goods sold and delivered to, or out of and for services
theretofore actually rendered by Debtor to, the account debtor named in the
account or other bona fide transaction; (c) the amount of the account
represented as owing is the correct amount actually and unconditionally owing
except for normal cash discounts and is not subject to any setoffs, credits,
defenses, or countercharges; and (d) Debtor is the owner thereof free and clear
of any charges, liens, security interests, adverse claims, and encumbrances of
any and every nature whatsoever.

Lender shall have the right in its own name or in the name of the Debtor,
whether before or after default, to require Debtor forthwith to transmit all
proceeds of collection of accounts to Lender; to notify any and all account
debtors to make payments of the accounts directly to Lender; to demand, collect,
receive, receipt for, sue for, compound, and give acquittal for, any and all
amounts due or to become due on the accounts and to endorse the name of the
Debtor on all commercial paper given in payment or part payment thereof; and in
Lender's discretion, to file any claim or take any other action or proceeding
that Lender may deem necessary or appropriate to protect and preserve and
realize upon the accounts and related Collateral. Unless and until Lender elects
to collect accounts, and the privilege of Debtor to collect accounts is revoked
by Lender in writing, Debtor shall continue to collect accounts, account for
same to Lender, shall not commingle the proceeds of collection of accounts with
any funds of the Debtor, and shall deposit such proceeds in an account with
Lender. In order to assure collection of accounts in which Lender has an
interest hereunder, Lender may notify the post office authorities to change the
address for delivery of mail addressed to Debtor to such address as Lender may
designate, open and dispose of such mail, and receive the collections of
accounts included therewith. Lender shall have no duty or obligation whatsoever
to collect any account or to take any other action or preserve or protect the
Collateral; however, should Lender elect to collect any account or take
possession of the Collateral, Debtor releases Lender from any claim or claims
for loss or damage arising from any act or omission in connection therewith, and
costs of collection incurred by Lender shall be an obligation secured hereby and
constitute a portion of the Obligations.

Upon request by Lender, whether before or after default, Debtor shall take such
action and execute and deliver such documents as Lender may reasonably request
in order to identify, confirm, mark, segregate, and assign accounts and to
evidence Lender's interest in same. Without limiting the foregoing, Debtor, upon
request, agrees to assign accounts to Lender, identify and mark accounts as
being subject to the security interest (or pledge or assignment, as applicable)
granted hereby, mark Debtor's books and records to reflect such assignments, and
forthwith to transmit to Lender in the form as received by Debtor any and all
proceeds of collection of such accounts.

Debtor will deliver to Lender, prior to the 10th day of each month, or with such
other frequency as Lender may request, a written report in form and content
satisfactory to Lender, showing a listing and aging of accounts and such other
information as Lender may request from time to time. Debtor shall immediately
notify Lender of the assertion by any account debtor of any setoff, defense, or
claim regarding an account or any other matter adversely affecting an account.

Returned or repossessed goods arising from or relating to any accounts included
within the Collateral shall, if requested by Lender, be held separate and apart
from any other property. Debtor, on request by Lender, but not less than weekly
even though no request has been made, shall report to Lender identifying
information with respect to any such goods relating to accounts included in
transactions under this Agreement.

12. INVENTORY - The following provisions shall apply to all inventory included
in the Collateral:

Debtor will deliver to Lender prior to the 10th day of each month, or on such
other frequency as Lender may request, a written report in form and content
satisfactory to Lender, with respect to the preceding month or other applicable
period, showing Debtor's opening inventory, inventory acquired, inventory sold,
inventory returned, inventory used in Debtor's business, closing inventory, and
other inventory not with the preceding categories, and such other information as
Lender may request from time to time. Debtor shall immediately notify Lender of
any matter adversely affecting the inventory, including, without limitation, any
event causing loss or depreciation in the value of the inventory and the amount
of such possible loss or depreciation.

Debtor will promptly notify Lender in writing of any addition to, change in, or
discontinuance of its place(s) of business as shown in this Agreement, and the
location of the office where it keeps its records. All Collateral will be
located at the place(s) of business shown herein, as modified by any written
notice(s) given pursuant hereto.

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Unless and until the privilege of Debtor to use inventory in the ordinary course
of Debtor's business is revoked by Lender in the event of default or if Lender
deems itself insecure, Debtor may use the inventory in any manner not
inconsistent with this Agreement, may sell that part of the Collateral
consisting of inventory provided that all such sales are in the ordinary course
of business, and may use and consume any raw materials or supplies that are
necessary in order to carry on Debtor's business. A sale in the ordinary course
of business does not include a transfer in partial or total satisfaction of a
debt.

All accounts that arise from the sale of the inventory included within the
Collateral shall be subject to all of the terms and provisions hereof pertaining
to accounts.

Debtor shall take all action necessary to protect and preserve the inventory.

13. INSTRUMENTS - The following provisions shall apply to instruments included
in the Collateral.

Debtor shall immediately deliver to Lender all instruments included in the
Collateral. Negotiable instruments shall be endorsed to the order of Lender.
With respect to other writing(s) evidencing a right to the payment of money
that, in the ordinary course of business, is transferred by delivery with any
necessary endorsement or assignment, Debtor shall deliver to Lender and to any
third-party issuer a document of assignment in a form and content satisfactory
to Lender assigning the Debtor's rights in the said writing(s), and the
third-party issuer shall acknowledge receipt of notice of the assignment.

Debtor agrees that Lender may, at any time (whether before or after default) and
in its sole discretion, surrender for payment and obtain payment of any portion
of the Collateral.

Any and all replacement instruments and other benefits and proceeds related to
the Collateral that are received by the Debtor shall be held by Debtor in trust
for Lender and immediately delivered to Lender to be held as part of the
Collateral.

14. DEPOSIT ACCOUNTS - The following provisions shall apply to deposit accounts
included in the Collateral.

Debtor shall immediately deliver to Lender all certificated certificates of
deposit included in the Collateral. Negotiable certificates of deposit shall be
endorsed to the order of Lender. Debtor shall execute any and all other
documents necessary to provide an appropriate security interest in any account
with Lender. With respect to deposit accounts held in another Bank, Debtor shall
deliver to Lender a control agreement ("Control Agreement") in a form and
content satisfactory to Lender assigning the Debtor's rights in the deposit
account to Lender and the Bank shall acknowledge receipt of the Control
Agreement. The Control Agreement must be in a form_ that provides that the Bank
will comply with any instruction originated by the Lender directing disposition
of funds in the Deposit Account without further consent of the Debtor. The form
of Control Agreement must be in a form satisfactory to the Lender, and must
provide that said Bank will comply with a directive originated by the Lender and
will not comply with any directive of the Debtor without the additional written
consent of the Lender.

Debtor agrees that Lender may, at any time (whether before or after default) and
in its sole discretion, surrender for payment and obtain payment of any portion
of the Collateral, whether such have matured or the exercise of the Lender's
rights results in a loss of interest or principal or other penalty on such
deposits, and, in connection therewith, cause payments to be made directly to
Lender.

Any and all replacement or renewal certificates and other benefits and proceeds
related to the Collateral that are received by the Debtor shall be held by
Debtor in trust for Lender and immediately delivered to Lender to be held as
part of the Collateral.

Without limiting the foregoing, it is specifically understood and agreed that
Lender shall have no responsibility for ascertaining any maturities or similar
matters relating to any of the Collateral or for informing Debtor with respect
to any such matters (irrespective of whether Lender actually has, or may be
deemed to have, knowledge thereof).

15. INVESTMENT PROPERTY - The following provisions apply to investment property
included in the Collateral:

Immediately upon the execution of this Agreement or Debtor's acquiring rights in
the Collateral, Debtor shall: (a) If the Collateral includes certificated
securities, deliver such certificated securities to Lender; if the certificate
is in registered form, register it in the name of Lender or deliver to Lender
with the certificate a stock power satisfactory in form and substance to Lender.
(b) If the Collateral includes uncertificated securities directly held by
Debtor, transfer such securities from Debtor to Lender on the books of the
issuer or cause the issuer to enter into and deliver to Lender a control
agreement with Debtor and Lender, having a form and substance satisfactory to
Lender, providing that issuer will comply with instructions originated by Lender
without further consent of the registered owner and issuer will not follow
instructions originated by Debtor without the Lender's written consent. (c) If
the Collateral includes security entitlements, security accounts, or commodity
accounts, cause the Lender to become the holder of the entitlements or accounts
or cause the securities intermediary and/or the commodity intermediary to enter
into and deliver to Lender an agreement with Debtor and Lender, in a form and
substance satisfactory to Lender, providing that said intermediary WILL COMPLY
WITH ENTITLEMENTS OR ORDERS ORIGINATED BY LENDER WITHOUT FURTHER CONSENT BY
DEBTOR AND WILL NOT COMPLY WITH ORDERS ORIGINATED BY Debtor without Lender's
written consent. (d) If the Collateral includes commodity contracts, cause the
commodity intermediary to enter into and deliver to Lender an agreement with
Debtor and Lender, in a form and substance satisfactory to Lender, that said
intermediary will apply any value distributed on account of the commodity
contract as directed by Lender without further consent by the commodity customer
and will not comply with orders originated by Debtor without Lender's written
consent.

Upon demand by Lender, Debtor shall execute, assign, and endorse all proxies,
applications, acceptances, stock powers, chattel paper, documents, instruments,
or other evidence of payment or writing constituting or relating to any of the
Collateral, all in such form and substance as may be satisfactory to Lender.

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Lender shall also have a security interest in all investment property, rights,
and interests of every description at any time issued or issuable as an addition
to, in substitution or exchange for, or with respect to the Collateral,
including, without limitation, shares issued as dividends or as the result of
any reclassifications, merger, spin-off, or other reorganization. Debtor shall
deliver promptly to Lender in the exact form received, any such securities or
other property which come into the possession, custody, or control of Debtor,
and shall with respect to such property transfer control to Lender in accord
with the paragraphs above.

In its discretion and without notice to Debtor, the Lender may take any one or
more of the following actions, without liability except to account for the
property actually received: (a) transfer or register in its name or the name of
its nominee any of the Collateral, with or without liability except to account
for the property actually received; (b) transfer or register in its name or the
name of its nominee any of the Collateral, with or without identification of the
security interest herein created, and whether or not so transferred or
registered, receive the income, dividends and other distributions thereon and
hold them to apply them to the Obligations in any order of priority; (c) to the
fullest extent possible under applicable law, exercise or cause to be exercised
all voting and corporate powers with respect to any of the Collateral, including
all rights of conversion, exchange, subscription, and any other rights,
privileges, or options pertaining to such Collateral, as if the absolute owner
thereof; (d) exchange any of the Collateral for other property upon a
reorganization, recapitalization, or other readjustment and, in connection
therewith, deposit any of the Collateral with any committee or depository upon
such terms as the Lender may determine; and (e) in its absolute discretion to
exercise or to withhold the exercise of any of the rights, powers, privileges,
and options expressly or implicitly granted to the Lender in this Agreement,
without duty to do so and without responsibility for any failure to do so or to
delay in so doing.

Without limiting any other right of Lender, on default the Lender may, to the
fullest extent permitted by applicable law, without notice, advertisement,
hearing, or process of law of any kind, sell any or all of the Collateral, free
of all rights and claims of the Debtor therein or thereto, on any recognized
market or exchange at any price reasonably consistent with the market price
occurring at the time of the sale of the Collateral and, notwithstanding any
recent or current decreases or increases in that market price, the sale of the
Collateral on such recognized market or exchange shall be deemed reasonable if
conducted under ordinary terms regardless of how soon after default the Lender
sells such Collateral.

16. POSSESSION OF COLLATERAL BY LENDER - The following paragraphs shall apply
when possession of the Collateral by the Lender is required to perfect Lender's
security interest, or when Lender requests delivery of the Collateral. Debtor
shall deliver to the Lender all certificates of deposit, notes and drafts,
instruments, and certificated securities which now or hereafter constitute
Collateral under this Agreement. In addition, at the request of Lender from time
to time, and at any time, Debtor shall deliver to Lender other Collateral. All
such Collateral is hereinafter referred to as Delivered Property. Lender shall
have the duty to exercise reasonable care with respect to the Delivered
Property. In exercise of the duty: (a) Lender shall never be liable for its
failure to give notice to Debtor of default in the payment of or upon the
Delivered Property. Lender shall have no duty to fix or preserve the rights
against prior parties to the Delivered Property and shall never be liable for
its failure to use diligence to collect any amount payable in respect to the
Delivered Property, but shall be liable only to account to Debtor for what it
may actually collect or receive thereon. (b) Without limiting the foregoing, it
is specifically understood and agreed that Lender shall have no responsibility
for ascertaining any maturities, calls, conversions, exchanges, offers, tenders,
or similar matters relating to any of such matters (irrespective of whether
Lender actually has, or may be deemed to have, knowledge thereof). The foregoing
provisions of this paragraph shall be applicable to all notes, certificates of
deposit, securities, or similar Delivered Property held hereunder, irrespective
of whether such property is held in the name of Lender, Debtor, or other person.
(c) Lender shall be deemed to have exercised reasonable care in the custody and
preservation of the Delivered Property if it takes such action for that purpose
as Debtor (or if more than one, any one or more of the Debtors) shall request in
writing, but failure of the Lender to comply with any such request shall not of
itself be deemed a failure to exercise reasonable care. (d) No failure of Lender
to preserve or protect any rights with respect to the Delivered Property against
prior parties or to do any act with respect to preservation of the Delivered
Property shall be deemed a failure to exercise reasonable care in the custody or
preservation of Delivered Property, unless such act was requested in writing by
Debtor and received by Lender in sufficient time to permit the Lender to take
the requested action in the ordinary course of its business. (e) Notwithstanding
any other fact or duty or written request by the Debtor, Lender shall have no
duty to release possession of any of the Delivered Property to the Debtor or
otherwise, unless at the time of such request for release, the Debtor (1)
tenders fulfillment of all Obligations secured by such Delivered Property, or
(2) tenders replacement Delivered Property or other collateral deemed adequate
by Lender.

In its discretion, either before or after maturity, default, or acceleration of
the Obligations and without notice to Debtor, the Lender may take any one or
more of the following actions, without liability except to account for the
property actually received by it: (a) insure any of the Delivered Property; (b)
in its name or in the name of the Debtor, demand, sue for, collect, or receive
any money or property at any time payable or receivable on account of or in
exchange for any of the Delivered Property and, in connection therewith, endorse
notes, checks, drafts, money orders, documents of title, or other evidence of
payment, shipment, or storage in the name of the Debtor: (c) make any compromise
or settlement deemed advisable with respect to any of the Delivered Property;
and (d) renew, extend, or otherwise change the terms and conditions of any of
the Delivered Property. The Lender shall be under no duty to exercise, or to
withhold the exercise of, any of the rights, powers, privileges, and options
expressly or implicitly granted to the Lender in this Agreement, and shall not
be responsible for any failure to do so or to delay in doing so.

17. ADDITIONAL COLLATERAL - In the event that Lender should, at any time,
determine that the Collateral or Lender's security interest in the Collateral is
impaired, insufficient, or has declined or may decline in value, or if Lender
should deem that payment of the Obligations is insecure, time being of the very
essence, then Lender may require, and Debtor agrees to furnish, additional
Collateral that is satisfactory to Lender. Lender's request for additional
collateral may be oral or in writing delivered by United States mail addressed
to Debtor and shall not affect any other subsequent right of Lender to request
additional Collateral.

18. FINANCING STATEMENTS) AND LIEN PERFECTION - Lender is authorized to file a
conforming financing statement or statements to perfect its security interest in
the Collateral, as provided in Revised Article 9, Uniform Commercial Code -
Secured Transactions. Debtor agrees to
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provide such information, supplements, and other documents as Lender may from
time to time require to supplement or amend such financing statement filings, in
order to comply with applicable state or federal law and to preserve and protect
the Lender's rights in the Collateral. The Debtor further grants the Lender a
power of attorney to execute any and all documents necessary for the Lender to
perfect or maintain perfection of its security interest in the Collateral, and
to change or correct any error on any financing statement or any other document
necessary for proper placement of a lien on any Collateral which is subject to
this Agreement.

19. LANDLORD'S WAIVER - Upon request, Debtor shall furnish to Lender, in a form
and upon such terms as are acceptable to Lender, a landlord's waiver of all
liens with respect to any Collateral covered by this Agreement that is or may be
located upon leased premises.

20. NOTICES - Any notice or demand given by Lender to Borrower and/or Debtor in
connection with this Agreement, the Collateral, or the Obligations, shall be
deemed given and effective upon deposit in the United States mail, postage
prepaid, addressed to Borrower and/or Debtor at the address Borrower and/or
Debtor designated at the beginning of this Agreement, or such other address as
Borrower and/or Debtor may provide to Lender in writing from time to time for
such purposes. Actual notice to Borrower and/or Debtor shall always be effective
no matter how such notice is given or received.

21. RELATIONSHIP TO OTHER AGREEMENTS - This Agreement and the security interests
(and pledges and assignments, as applicable) herein granted are in addition to
(and not in substitution, novation or discharge of) any and all prior or
contemporaneous security agreements, security, interests, pledges, assignments,
mortgages, liens, rights, titles, or other interests in favor of Lender or
assigned to Lender by others in connection with the Obligations. All rights and
remedies of Lender in all such agreements are cumulative.

22. CROSS-COLLATERALIZATION / CROSS-DEFAULT - Borrower and/or Debtor agrees that
any security interest provided in collateral under this Agreement or any and all
other indebtedness of Borrower and/or Debtor to lender, whether or not such
indebtedness is related by class or claim and whether or not contemplated by the
parties at the time of executing each evidence of indebtedness, shall act as
collateral for all said indebtedness. Any default of the Borrower and/or Debtor
in the terms of any indebtedness to Lender shall constitute a default under this
Agreement.

23. DEFAULT - The occurrence of any of the following events shall constitute a
default of this Agreement: (a) the non-payment, when due (whether by
acceleration of maturity or otherwise), of any amount payable on any of the
Obligations or any extension or renewal thereof; (b) the failure to perform any
agreement of the Borrower and/or Debtor contained herein or in any other
agreement Borrower and/or Debtor has or may have with Lender; (c) the failure to
perform any agreement of any Guarantor or Non-Borrower Debtor contained herein
or in any other agreement said Guarantor or Non-Borrower Debtor has or may have
with Lender; (d) the publication of any statement, representation, or warranty,
whether written or oral, by the Borrower and/or Debtor to the Lender, which at
any time is untrue in any respect as of the date made; (e) the publication of
any statement, representation, or warranty, whether written or oral, by any
Guarantor or Non-Borrower Debtor to the Lender, which at any time is untrue in
any respect as of the date made; (f) the condition that any Obligor (which term,
as used herein, shall mean the Borrower and each party primarily or secondarily
liable on any of the Obligations) becomes insolvent or unable to pay debts as
they mature, or makes an assignment for the benefit of the Obligor's creditors,
or conveys substantially all of its assets, or in the event of any proceedings
instituted by or against any Obligor alleging that such Obligor is insolvent or
unable to pay debts as they mature (failure to pay being conclusive evidence of
inability to pay), or makes application for appointment of a receiver or any
other legal custodian, or in the event that a petition of any kind is filed
under the Federal Bankruptcy Act by or against such Obligor; (g) the entry of
any judgment against any Obligor, or the issue of any order of attachment,
execution, sequestration, claim and delivery, or other order in the nature of a
writ levied against the Collateral; (h) the death of any Obligor who is a
natural person, or of any partner of the Obligor which is a partnership; (i) the
dissolution, liquidation, termination of existence, business failure, merger,
and consolidation or transfer of a substantial part of the property of any
Obligor which is a corporation or partnership; ()) the Collateral or any part of
the Collateral declines in value in excess of normal wear, tear, and
depreciation or becomes, in the judgment of Lender, impaired, unsatisfactory, or
insufficient in character or value, including but not limited to the filing of a
competing financing statement; breach of warranty that the Obligor is the owner
of the Collateral free and clear of any encumbrances (other than those
encumbrances disclosed by Obligor or otherwise made known to Lender, and which
were acceptable to Lender at that time); sale of the Collateral (except in the
ordinary course of business) without Lender's express written consent; failure
to keep the Collateral insured as provided herein; failure to allow Lender to
inspect the Collateral upon demand or at reasonable time; failure to make prompt
payment of taxes on the Collateral; loss, theft, substantial damage, or
destruction of the Collateral; and, when Collateral includes inventory,
accounts, chattel paper, or instruments, failure of account debtors to pay their
obligations in due course; or (k) the Lender in good faith, believes the
Debtor's ability to repay the Debtor's indebtedness secured by this Agreement,
any Collateral, or the Lender's ability to resort to any Collateral, is or soon
will be impaired, time being of the very essence.

24. REMEDY; Upon the occurrence of an event of default, Lender, at its option,
shall be entitled to exercise any one or more of the remedies described in this
Agreement, in all documents evidencing the Obligations, in any other agreements
executed by or delivered by Borrower and/or Debtor for benefit of Lender, in any
third-party security agreement, mortgage, pledge, or guaranty relating to the
Obligations, in the Uniform Commercial Code of the state in which Lender is
located, and all remedies at law and equity, all of which shall be deemed
cumulative. The Debtor agrees that, whenever a default exists, all Obligations
may (notwithstanding any provision in any other agreement), at the sole option
and discretion of the Lender and without demand or notice of any kind, be
declared, and thereupon immediately shall become due and payable; and the Lender
may exercise, from time to time, any rights and remedies, including the right to
immediate possession of the Collateral, available to it under applicable law.
The Debtor agrees, in the case of default, to assemble, at its own expense, all
Collateral at a convenient place acceptable to the Lender. The Lender shall, in
the event of any default, have the right to take possession of and remove the
Collateral, with or without process of law, and in doing so, may peacefully
enter any premises where the Collateral may be located for such purpose. Debtor
waives any right that Debtor may have, in such instance, to a judicial hearing
prior to such retaking. The Lender shall have the right to hold any property
then in or upon said Collateral at the time of repossession not covered by the
security agreement until return is demanded in writing by Debtor. Borrower
and/or Debtor agrees to pay all reasonable costs of the Lender in connection
with the collecting of the Obligations and
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enforcement of any rights connected with retaking, holding, testing, repairing,
improving, selling, leasing, or disposing of the Collateral, or like expenses.
These expenses, together with interest thereon from the date incurred until paid
by Debtor at the maximum post-default rate stated in the notes secured hereby,
which Debtor agrees to pay, shall constitute additional Obligations and shall be
secured by and entitled to the benefits of this Agreement. The Lender may sell,
lease, or otherwise dispose of the Collateral, by public or private proceedings,
for cash or credit, without assumption of credit risk. Unless the Collateral is
perishable or threatens to decline speedily in value or of a type customarily
sold on a recognized market, Lender will send Debtor reasonable notice of the
time and place of any public sale or of the time after which any private sale or
other disposition will be made. Any notification of intended disposition of the
Collateral by the Lender shall be deemed to be reasonable and proper if sent
postage prepaid, by regular mail, to the Debtor at least ten (10) days before
such disposition, and addressed to the Debtor either at the address shown herein
or at any other address provided to Lender in writing for the purpose of
providing notice. Proceeds received by Lender from disposition of the Collateral
may be applied toward Lender's expenses and other obligations in such order or
manner as Lender may elect. Debtor shall be entitled to any surplus if one
results after lawful application of the proceeds. If the proceeds from a sale of
the Collateral are insufficient to extinguish the Obligations of the Debtor
hereunder, Debtor shall be liable for a deficiency. Lender shall have the right,
whether before or after default, to collect and receipt for, compound,
compromise, and settle, and give releases, discharges, and acquittances with
respect to, any and all amounts owed by any person or entity with respect to the
Collateral. Lender may remedy any default and may waive any default without
waiving the default remedied and without waiving any other prior or subsequent
default. The rights and remedies of the Lender are cumulative, and the exercise
of any one or more of the rights or remedies shall not be deemed an election of
rights or remedies or a waiver of any other right or remedy.

25. FORBEARANCE NOT A WAIVER - Any delay on the part of the Lender in exercising
any power, privilege, or right hereunder, or under any other document executed
by Borrower and/or Debtor to the Lender in connection herewith, shall not
operate as a waiver thereof, and no single or partial exercise thereof or any
other power, privilege, or right shall preclude other or further exercise
thereof. The waiver by the Lender of any default of the Borrower and/or Debtor
shall not constitute a waiver of subsequent default.

26. CONTINUING AGREEMENT - This is a continuing agreement, and shall remain in
full force and effect until the Obligations are paid in full. In the event that
Lender should take additional Collateral, or enter into other security
agreements, mortgages, guarantees, assignments, or similar documents with
respect to the Obligations, or should Lender enter into other such agreements
with respect to other obligations of Debtor, such agreements shall not discharge
this Agreement, which shall be construed as cumulative and continuing and not
alternative and exclusive.

The security interest (and pledge and assignment as applicable), hereby granted
and all of the terms and provisions of this Agreement shall be deemed a
continuing agreement and shall continue in full force and effect until the
Obligations are paid in full. Any such revocation or termination shall only be
effective if explicitly confirmed in a signed writing issued by Lender to such
effect and shall in no way impair or affect any transactions entered into or
rights created or liabilities incurred or arising prior to such revocation or
termination, as to which this Agreement shall be truly operative until same are
repaid and discharged in full. Unless otherwise required by applicable law,
Lender shall be under no obligation to issue a termination statement or similar
document unless Debtor requests same in writing, and providing further, that all
Obligations have been repaid and discharged in full and there are no commitments
to make advances, incur any obligations, or otherwise give value.

27. ABSENCE OF CONDITIONS OF LIABILITY - This Agreement is unconditional. Lender
shall not be required to exhaust its remedies against Debtor, other collateral,
or guarantors, or pursue any other remedies within Lender's power before being
entitled to exercise its remedies hereunder. Lender's rights to the Collateral
shall not be altered by the lack of validity or enforceability of the
Obligations against Borrower, and this Agreement shall be fully enforceable
irrespective of any counterclaim which the Borrower may assert on the underlying
debt and notwithstanding any stay, modification, discharge, or extension of
Borrower's Obligation arising by virtue of Debtor's insolvency, bankruptcy, or
reorganization, whether occurring with or without Lender's consent.

28. WAIVERS - Debtor waives notice of Lender's acceptance of this Agreement,
defenses based on suretyship, and to the fullest extent permitted by law, any
defense arising as a result of any election by Lender under the Bankruptcy Code
and the Uniform Commercial Code. Debtor and any maker, endorser, guarantor,
surety, third-party pledgor, and other party executing this Agreement that is
liable in any capacity with respect to the Obligations hereby waive demand,
notice of intention to accelerate, notice of acceleration, notice of nonpayment,
presentment, protest, notice of dishonor, and any other similar notice
whatsoever.

29. WAIVER OF JURY TRIAL - All parties to this Agreement hereby waive to the
fullest extent permitted by law any right to trial by jury with respect to any
disputes, whether in contract, tort, or otherwise, arising out of, in connection
with, related to, or incidental to the relationship established between them in
this Agreement or any note or other instrument, document, or agreement executed
or delivered in connection herewith or the transactions related hereto.

30. JOINT AND SEVERAL LIABILITY - If this Agreement is executed by more than one
Debtor, it is understood and agreed that each such Debtor shall be -jointly and
severally bound and the word "Debtor" as used herein shall be construed to be of
such number as circumstances require.

31. SEVERABILITY - Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law;
but, in the event any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity and shall be severed from the rest of this
Agreement without invalidating the remainder of such provision or the remaining
provisions of this Agreement.

32. SURVIVAL - The rights and privileges of the Lender hereunder shall inure to
the benefits of its successors and assigns, and this Agreement shall be binding
on all heirs, executors, administrators, assigns, and successors of Debtor.
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33. ASSIGNABILITY - Lender may assign, pledge, or otherwise transfer this
Agreement or any of its rights and powers under this Agreement without notice,
with all or any of the Obligations, and in such event the assignee shall have
the same rights as if originally named herein in place of Lender. Debtor may not
assign this Agreement or any benefit accruing to it hereunder without the
express written consent of the Lender.

34. AUTHORIZATIONS - Debtor authorizes Lender, without notice or demand and
without altering Debtor's liability or Lender's rights hereunder, from time to
time to take acts which may alter the obligation of Borrower to Lender and/or
Debtor's right to restitution or subrogation, including: (a) to renew,
compromise, extend, or otherwise change the time for payment of, or otherwise
change the terms of the Obligations or any part thereof, including increasing
the rate of interest; (b) to extend additional credit to Borrower in any manner
for any purpose; (c) to incur costs, including attorneys' fees, with respect to
enforcing its rights with respect to the Obligations and collateral securing the
Obligations; (d) to exchange, enforce, waive, or release (whether intentionally
or unintentionally) any security for the Obligations or any part thereof or
purchase such security at private or public sale; (e) to settle, release,
compromise with, or substitute any one or more endorsers, guarantors, or other
obligors or the Obligations; (f) to impair the value of Lender's interest in
Collateral through failure to obtain or maintain protection, failure to obtain
or maintain recordation of an interest, or through failure to perform a duty
owed to Debtor to preserve the Collateral; and (g) to apply all monies received
from Debtor and others or from Collateral in Lender's discretion without in any
way being required to marshall assets.

35. AMENDMENT - This is the final expression of the agreement between the
parties and may not be contradicted by evidence of any prior or contemporaneous
oral agreement. This Agreement may not be amended except by written agreement
signed by the parties.

36. GOVERNING LAW - This Agreement has been delivered in the state where the
Lender is located and shall be construed in accordance with the laws of that
state.

37. HEADINGS AND GENDER - The headings preceding text in this Agreement are for
general convenience in identifying subject matter, but have no limiting impact
on the text which follows any particular heading. All words used in this
Agreement shall be construed to be of such gender or number as the circumstances
require.

38. MISCELLANEOUS - Time is of the essence of this Agreement. Except as
otherwise defined in this Agreement, all terms herein shall have the meanings
provided by the Uniform Commercial Code as it has been adopted in the state
where the Lender is located. All rights, remedies, and powers of the Lender
hereunder are irrevocable and cumulative, and not alternative or exclusive, and
shall be in addition to all rights, remedies, and powers given hereunder or in
or by any other instruments or by the provision of the Uniform Commercial Code
as adopted in the state where the Lender is located, or any other laws, now
existing or hereafter enacted. The Debtor specifically agrees that, if it has
heretofore or hereafter executed any loan agreement in conjunction with this
Agreement, any ambiguities between this Agreement and any such loan agreement
shall be construed under the provisions of the loan agreement, to the extent
that it may be necessary to eliminate any such ambiguity. Debtor releases Lender
from any liability which might otherwise exist for any act or omission of Lender
related to the collection of any debt secured by this Agreement or the disposal
of any Collateral, except for Lender's wilful misconduct.

[_] ADDITIONAL PROVISIONS - If checked, the following Provisions are made a part
of this Agreement:

ACKNOWLEDGMENT - The Debtor acknowledges that this is the entire agreement
between the parties, except to the extent that writings signed by the party
against whom enforcement is sought are specifically incorporated herein by
reference either in this Agreement or in such writings, and acknowledges receipt
of a true and complete copy of this Agreement including pages 1 through 10. The
Debtor expressly agrees to all of the provisions of this Agreement and signifies
assent by the signature(s) below.

IN WITNESS WHEREOF, the Debtor has executed this Agreement on the date and year
shown below.

SIGNATURE EYEWEAR, INC.

By X                                   By X
  ---------------------------------      ---------------------------------
  SIGNATURE EYEWEAR, INC.      Date      BY: MICHAEL PRINCE, CEO      Date
Its                                    Its

By X                                   By X
  ---------------------------------      ---------------------------------
                               Date                                   Date
Its                                    Its

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