Document:

EXHIBIT 10.2

                    INTELLECTUAL PROPERTY SECURITY AGREEMENT

         INTELLECTUAL PROPERTY SECURITY AGREEMENT (this "Agreement" dated as of
February 25, 2005, by and among Veridicom International, Inc., a Delaware
corporation, EssTec, Inc., a Nevada corporation, Veridicom, Inc., a California
corporation, Cavio Corporation, a Washington corporation, Veridicom
International (Canada) Inc., a Canadian and British Columbia corporation,
Essential Tec Pakistan (Private) Limited, a Pakistan corporation, Veridicom
International (Europe) Limited, a UK corporation, and Veridicom KK, a Japan
corporation (collectively, the "Company"), and the secured parties signatory
hereto and their respective endorsees, transferees and assigns (collectively,
the "Secured Party").

                              W I T N E S S E T H :

         WHEREAS, pursuant to a Securities Purchase Agreement, dated the date
hereof, between the Company and the Secured Party (the "Purchase Agreement"),
the Company has agreed to issue to the Secured Party and the Secured Party has
agreed to purchase from the Company certain of the Company's 10% Callable
Secured Convertible Notes, due three years from the date of issue (the "Notes"),
which are convertible into shares of the Company's Common Stock, par value $.001
per share (the "Common Stock"). In connection therewith, the Company shall issue
the Secured Party certain Common Stock purchase warrants (the "Warrants"); and

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

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

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

                  "Software Intellectual Property" shall mean:

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

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

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

                  (d) all rights with respect to all of the foregoing,
including, without limitation, any and all upgrades, modifications, copyrights,
licenses, options, warranties, service contracts, program services, test rights,
maintenance rights, support rights, improvement rights, renewal rights and
indemnifications and substitutions, replacements, additions, or model
conversions of any of the foregoing.

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

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

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

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

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

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

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                  "Trademarks" shall mean (a) all trademarks, corporate names,
company names, business names, fictitious business names, trade dress, service
marks, logos and other source or business identifiers, and the goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any state thereof or any other
country or any political subdivision thereof, or otherwise, including, without
limitation, any thereof referred to in Schedule B hereto, and (b) all reissues,
extensions or renewals thereof.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                  (q) With respect to any Intellectual Property:

                        (i)   such Intellectual Property is subsisting and has
                              not been adjudged invalid or unenforceable, in
                              whole or in part;

                        (ii)  such Intellectual Property is valid and
                              enforceable;

                        (iii) the Company has made all necessary filings and
                              recordations to protect its interest in such
                              Intellectual Property, including, without
                              limitation, recordations of all of its interests
                              in the Patents, Patent Licenses, Trademarks and
                              Trademark Licenses in the United States Patent and
                              Trademark Office and in corresponding offices
                              throughout the world and its claims to the
                              Copyrights and Copyright Licenses in the United
                              States Copyright Office and in corresponding
                              offices throughout the world;

                        (iv)  other than as set forth in Schedule B, the Company
                              is the exclusive owner of the entire and
                              unencumbered right, title and interest in and to
                              such Intellectual Property and no claim has been
                              made that the use of such Intellectual Property
                              infringes on the asserted rights of any third
                              party; and

                        (v)   the Company has performed and will continue to
                              perform all acts and has paid all required fees
                              and taxes to maintain each and every item of
                              Intellectual Property in full force and effect in
                              the Company's jurisdiction of operation,
                              including, but not limited to, the jurisdictions
                              specified on Schedule C.

                  (r) The Company shall:

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

                  (ii) employ each Trademark or Copyright with the appropriate
            notice of registration; not adopt or use any mark which is
            confusingly similar or a colorable imitation of such Trademark or
            Copyright unless the Secured Party shall obtain a perfected security
            interest in such mark pursuant to this Agreement; and not (and not
            permit any licensee or sublicensee thereof to) do any act or
            knowingly omit to do any act whereby any Trademark or Copyright may
            become invalidated;

                  (iii) not do any act, or omit to do any act, whereby any
            Patent may become invalidated; and

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

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

                  (t) In the event that any of the Intellectual Property is
infringed, misappropriated or diluted by a third party, the Company shall
promptly notify the Secured Party after it learns thereof and shall, unless it
shall reasonably determine that such is of negligible economic value to it,
which determination it shall promptly report to the Secured Party, promptly sue
for infringement, misappropriation or dilution, to seek injunctive relief where
appropriate and to recover any and all damages for such infringement,
misappropriation or dilution, or take such other actions as it shall reasonably
deem appropriate under the circumstances to protect such Intellectual Property.
If the Company lacks the financial resources to comply with this Section 3(t),
the Company shall so notify the Secured Party and shall cooperate fully with any
enforcement action undertaken by the Secured Party on behalf of the Company.

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

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

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

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

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

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

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

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

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

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

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

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

            10. Security Interest Absolute. All rights of the Secured Party and
all Obligations of the Company hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement,
the Notes, the Warrants or any agreement entered into in connection with the
foregoing, or any portion hereof or thereof; (b) any change in the time, manner
or place of payment or performance of, or in any other term of, all or any of
the Obligations, or any other amendment or waiver of or any consent to any

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

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

            12. Power of Attorney; Further Assurances.

                  (a) The Company authorizes the Secured Party, and does hereby
make, constitute and appoint it, and its respective officers, agents, successors
or assigns with full power of substitution, as the Company's true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after the occurrence and during the continuance of an Event of Default, (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including payments payable under or in respect of any policy of insurance) in
respect of the Intellectual Property that may come into possession of the
Secured Party; (ii) to sign and endorse any UCC financing statement or any
invoice, freight or express bill, bill of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications and notices in connection
with accounts, and other documents relating to the Intellectual Property; (iii)
to pay or discharge taxes, liens, security interests or other encumbrances at
any time levied or placed on or threatened against the Intellectual Property;
(iv) to demand, collect, receipt for, compromise, settle and sue for monies due
in respect of the Intellectual Property; and (v) generally, to do, at the option
of the Secured Party, and at the Company's expense, at any time, or from time to

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time, all acts and things which the Secured Party deems necessary to protect,
preserve and realize upon the Intellectual Property and the Security Interest
granted therein in order to effect the intent of this Agreement, the Notes and
the Warrants, all as fully and effectually as the Company might or could do; and
the Company hereby ratifies all that said attorney shall lawfully do or cause to
be done by virtue hereof. This power of attorney is coupled with an interest and
shall be irrevocable for the term of this Agreement and thereafter as long as
any of the Obligations shall be outstanding.

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

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

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

    If to the Company:         Veridicom International, Inc.
                               3800-999 3rd Avenue
                               Seattle, Washington 98104
                               Attention: President and Chief Executive Officer
                               Telephone: 206-224-6206
                               Facsimile: 206-224-6207

    With copies to:            Kirkpatrick & Lockhart Nicholson Graham LLP
                               10100 Santa Monica Boulevard
                               Seventh Floor
                               Los Angeles, California 90067
                               Attention: Thomas J. Poletti, Esq.
                               Telephone: 310-552-5000
                               Facsimile: 310-552-5001

                                       11
<PAGE>

    If to the Secured Party:   to the address set forth immediately
                               below such party's name on the
                               signature pages to the Securities
                               Purchase Agreement

    With copies to:            Ballard Spahr Andrews & Ingersoll, LLP
                               1735 Market Street, 51st Floor
                               Philadelphia, Pennsylvania  19103
                               Attention:  Gerald J. Guarcini, Esquire
                               Facsimile:  215-864-8999

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

            15. Miscellaneous.

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

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

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

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

                                       12
<PAGE>

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

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

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

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

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

                                       13
<PAGE>

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       14
<PAGE>

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

                                      VERIDICOM INTERNATIONAL, INC.

                                      By:
                                         ---------------------------------------
                                           Paul Mann
                                           President and Chief Executive Officer

                                      ESSTEC, INC.

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      VERIDICOM, INC.

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      CAVIO CORPORATION

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      VERIDICOM INTERNATIONAL (CANADA) INC.

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                       15
<PAGE>

                                      ESSENTIAL TEC PAKISTAN (PRIVATE) LIMITED

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      VERIDICOM INTERNATIONAL (EUROPE) LIMITED

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      VERIDICOM KK

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      AJW PARTNERS, LLC
                                      By:  SMS Group, LLC

                                      By:
                                         ---------------------------------------
                                           Corey S. Ribotsky
                                           Manager

                                      AJW OFFSHORE, LTD.
                                      By:  First Street Manager II, LLC

                                      By:
                                         ---------------------------------------
                                           Corey S. Ribotsky
                                           Manager

                                       16
<PAGE>

                                      AJW QUALIFIED PARTNERS, LLC
                                      By:  AJW Manager, LLC

                                      By:
                                         ---------------------------------------
                                           Corey S. Ribotsky
                                           Manager

                                      NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                                      By:  First Street Manager II, LLC

                                      By:
                                         ---------------------------------------
                                           Corey S. Ribotsky
                                           Manager

                                      ALPHA CAPITAL

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      ENABLE GROWTH PARTNERS L.P.

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      WHALEHAVEN CAPITAL FUND LIMITED

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                       17
<PAGE>

                                      MEADOWBROOK OPPORTUNITY FUND LLC

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                      TCMP3 PARTNERS

                                      By:
                                         ---------------------------------------
                                           Name:
                                           Title:

                                       18Exhibit 10.4f

                                        May 7, 2004

Intelsat USA Sales Corp.
3400 International Drive NW
Washington, DC 20008-3006
Attn: Mr. Stephen Spengler

RE:   AGREEMENT REGARDING CONTRACT EXTENSIONS AND NEW VENTURES

Dear Mr. Spengler:

Reference is made to the following certain agreements:

      A.    Contract Number T70102100 between Playboy Entertainment Group, Inc.,
            ("Playboy") and Loral SpaceCom Corporation doing business as Loral
            Skynet ("Loral") dated March 1, 2001 in connection with the C-Band
            transponder capacity service on the Telstar 7 Satellite, now known
            as the Intelsat Americas 7 Satellite ("IA 7"), Transponder 15 (the
            "IA 7-C15 Agreement"). The IA 7-C15 Agreement was transferred and
            assigned from Playboy to its wholly-owned subsidiary, Andrita
            Studios, Inc. ("Andrita") effective February 1, 2004.

      B.    Contract number T70309257 between Andrita and Loral dated November
            20, 2003 in connection with the C-Band satellite space segment
            capacity, consisting of 18.0 MHz bandwidth allocation, on IA 7,
            Transponder 9 (the "IA 7-C9 Agreement").

All rights and obligations pursuant to the IA 7-C15 Agreement, and the IA 7-C9
Agreement were assumed by Intelsat, Ltd. ("Intelsat") as part of its acquisition
of certain Loral assets and customer contracts as of March 17, 2004.

This letter, when signed by both parties, shall reflect the agreement (the
"Agreement") between Intelsat and Playboy in connection with the following:

      1.    IA 7-C15. Playboy and Intelsat agree to extend the term of the IA
            7-C15 Agreement from its current term expiration of January 31, 2010
            to a term expiration of January 31, 2013, as set forth more
            specifically in the first amendment to the IA 7-C15 Agreement dated
            May 7, 2004 (the "IA 7-C15 First Amendment"). The IA 7-C15 First
            Amendment is attached hereto as Exhibit "A" and incorporated by this
            reference as part of this Agreement.

      2.    IA 7-C9. Playboy and Intelsat agree to add an additional 18.0 MHz
            bandwidth allocation to the IA 7-C9 Agreement, as set forth more
            specifically in the first amendment to the IA 7-C9 Agreement dated
            May 7, 2004 (the "IA 7-C9 First Amendment"). The IA 7-C9 First
            Amendment is attached hereto as Exhibit "B" and incorporated by this
            reference as part of this Agreement.

      3.    Digital Channel Platform Agreement. Playboy and Intelsat agree to
            extend the term of that certain Digital Channel Platform Agreement
            dated February 4, 2003 between Playboy and Loral (as predecessor in
            interest to Intelsat) (the "Digital Channel Platform Agreement")

                                       1
<PAGE>

      from its current term expiration of February 3, 2008 to a term expiration
      of January 31, 2013, as set forth more specifically in the first amendment
      to the Digital Channel Platform Agreement dated May 7, 2004 (the "Digital
      Channel Platform First Amendment"). The Digital Channel Platform First
      Amendment is attached hereto as Exhibit "C" and incorporated by this
      reference as part of this Agreement.

4.    Preferred Global Provider. Playboy agrees that, for so long as the Digital
      Channel Platform Agreement dated February 4, 2003 between Playboy and
      Loral, as predecessor in interest and obligation to Intelsat, remains in
      effect, Intelsat and its Affiliates shall be the preferred provider of
      domestic and international satellite and terrestrial capacity for Playboy
      and its Affiliates. As preferred provider, Playboy shall notify Intelsat
      in writing of any new requirements for itself and/or its Affiliates
      relating to space segment, terrestrial capacity or a combination of both,
      and Intelsat and/or its Affiliates may submit a written bid (the "Intelsat
      Bid") in connection with such requirements. The notice referred to above
      shall include the origination and destination point(s), the amount of
      capacity required, and a technical description thereof. Playboy further
      agrees that provided that: 1) Intelsat's technology solution meets or
      exceeds Playboy's requirements, as solely and reasonably determined by
      Playboy; and 2) Intelsat's proposed terms and conditions comprising the
      Intelsat Bid are equal to or at a lower price than the competing bids
      received by Playboy in connection with the specific requirement for which
      a proposal is being requested, as solely and reasonably determined by
      Playboy, then Playboy shall be obligated to accept the Intelsat Bid. In
      the event the Intelsat Bid is higher than competing bids received by
      Playboy, Playboy will provide Intelsat with the terms and conditions that
      would be acceptable to Playboy (the "Playboy Terms"), which Playboy Terms
      shall not be higher than the lowest competing bid, and Intelsat shall have
      the one-time right to meet the Playboy Terms within five (5) business days
      of Playboy providing Intelsat with the Playboy Terms. Should Intelsat
      elect not to meet the Playboy Terms, Playboy shall be free to secure its
      capacity requirements from any source it elects, provided that such
      capacity does not exceed the competing minimum bid. An "Affiliate" shall
      be defined as any entity that any party may directly, or indirectly
      through an intermediary, direct or cause the direction of the management
      and policies of the specified entity without the approval or agreement of
      third parties. In the event the approval or agreement of a third party is
      required to direct or cause the direction of the management and policies
      of a such an entity, Playboy agrees in good faith to submit the Intelsat
      Bid to such third party for consideration; however, Intelsat acknowledges
      that Playboy cannot control the ultimate vendor selection in this
      situation.

5.    Strategic Advice. Playboy shall provide Intelsat with strategic advice
      regarding all reasonable aspects related to the domestic distribution of
      cable networks, via satellite, to domestic cable headends, DTH platforms
      and SMATV systems, as Intelsat reasonably requests such advice, so long as
      the Digital Channel Platform Agreement remains in full force and effect.
      Playboy's obligation to provide strategic advice shall not be deemed to
      create a fiduciary duty on the part of Playboy, nor shall it be deemed to
      place the parties in the relationship of partners or joint venturers.

6.    Galaxy Carriage. Intelsat shall utilize best efforts to secure carriage
      for Playboy on the Hong Kong based Galaxy platform. Intelsat shall further
      make best efforts to secure playback and origination services from Galaxy
      for the Playboy channels on Galaxy. Playboy acknowledges that Intelsat is
      a partner in the Galaxy platform and can only utilize its best efforts,
      but not guarantee such carriage, as such requires the agreement of the
      other Galaxy platform partner(s).

                                       2
<PAGE>

7.    Notices. All notices, demands, requests, or other communications which may
      be or are required to be given, served, or sent by one party to the other
      party pursuant to this Agreement (except as otherwise specifically
      provided in this Agreement) shall be in writing and shall be delivered by
      confirmed facsimile, confirmed overnight mail, by hand or mailed by
      first-class, registered or certified mail, return receipt requested,
      postage prepaid, address as follows:

      If to Playboy:          Andrita Studios, Inc.
                              3030 Andrita Street
                              Los Angeles, CA 90065
                              Attention: Mr. William Tillson
                              Phone: 323-344-4610
                              Facsimile: 323-276-4500

      Copy to:                Playboy Entertainment Group, Inc.
                              2706 Media Center Drive
                              Los Angeles, CA 90065
                              Attention: Ms. Alexandra Shepard

      If to Intelsat:         Intelsat Ltd.
                              3400 International Drive NW
                              Washington, DC 20008-3006
                              Attn: Ramu V. Potarazu
                              Phone: 202 944 7200
                              Facsimile: 202 944 7860

      Copy to:                General Counsel

      Either party may designate by notice in writing a new address or
      addressee, to which any notice, demand, request, or communication may
      thereafter be so given, served or sent. Each notice, demand, request, or
      communication shall be deemed sufficiently given, served or sent for all
      purposes three (3) days after depositing such notice in the United States
      Mail, or one (1) day after delivery to a nationally recognized overnight
      courier for overnight delivery if such notice is properly addressed and
      the appropriate fee is prepaid, and the same day as hand delivered or
      faxed with confirmation.

8.    Headings. The section headings in this Agreement are inserted only as a
      matter of convenience, and in no way define, limit or extend or interpret
      the scope of this Agreement or of any particular section.

9.    Governing Law. All questions with respect to this Agreement and the rights
      and liabilities of the parties will be governed by the laws of the State
      of New York, irrespective of the choice of laws provisions of New York or
      any other jurisdiction. The parties each hereby consent to the personal
      jurisdiction and venue in the state and federal courts sitting in the
      State of New York.

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

                                       3
<PAGE>

11.   Confidentiality. This Agreement shall be kept strictly confidential,
      except for disclosure: (a) to the extend required by the law or legal
      process, in which case the parties shall seek confidential treatment of
      the document and the information contained herein, (b) as a part of normal
      accounting and/or auditing procedures, (c) to each party's parent company,
      provided any such party shall have agreed to keep this Agreement
      confidential pursuant to an agreement. Notwithstanding the foregoing,
      Intelsat shall have the right to issue a press release regarding this
      Agreement provided such press release shall meet with Playboy's approval,
      not to be unreasonably withheld.

12.   Entire Agreement. This Agreement, together with its attachments,
      constitute the entire agreement between the parties and supersedes all
      prior agreements and understandings, oral and written, with respect to the
      subject matter hereof.

                                        Very truly yours,

                                        PLAYBOY ENTERTAINMENT GROUP, INC.

                                        BY: /s/ Alexandra Atkins Shepard
                                            --------------------------------
                                                Alexandra Atkins Shepard
                                                Senior Vice President

AGREED AND ACCEPTED:

INTELSAT USA SALES CORP.

BY: /s/ Stephen Spengler
    --------------------------
    Stephen Spengler
    Director and President

                                       4
<PAGE>

                                  Exhibit "A"

                            IA 7-C15 First Amendment

                                       5

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