Document:

GUARANTY AND PLEDGE AGREEMENT

         This Guaranty and Pledge Agreement (the "Agreement") is made on the
21st day of July, 2000, among the persons whose names are set forth at the end
of this Agreement (collectively the "Guarantors"), and TRANSCAP TRADE FINANCE,
an Illinois general partnership (the "Contractor"), as follows:

BACKGROUND OF AGREEMENT:

A.       The Contractor and MAJESCO SALES, INC., a New Jersey corporation (the
         "Manufacturer"), have on this day entered into a Master Purchase Order
         Assignment Agreement (the "Assignment Agreement") under the terms of
         which the Manufacturer will assign customer purchase orders to the
         Contractor and request the Contractor to purchase the required
         materials to fulfill such purchase orders; the Contractor will retain
         the Manufacturer to manufacture, process and ship ordered goods; and
         fees will be paid to the Contractor and the Manufacturer for their
         services thereunder.

B.       Each of the Guarantors has a substantial financial stake in the
         Manufacturer and will substantially benefit from the performance by
         Contractor of its obligations under the Assignment Agreement.

C.       The execution of this Agreement is an express condition to the
         consummation of the transactions contemplated by the Assignment
         Agreement and the Contractor is unwilling to enter into or perform in
         accordance with the Assignment Agreement in the absence of the
         execution of this Agreement.

         THEREFORE, in consideration of the services to be performed, the
payments to be made, and the obligations to be assumed by the Contractor
pursuant to the Assignment Agreement, and further as an inducement to the
Contractor to enter into and perform in accordance with the Assignment
Agreement, the Guarantors hereby agree as follows:

         1. DEFINITIONS. In this Agreement, the following frequently used terms
are defined as set forth in this (paragraph) 1:

         (a) Any terms used in this Agreement which are defined in the
Assignment Agreement will have the same meaning herein as is ascribed to such
term in the Assignment Agreement.

         (b) The "Contract Documents" are, collectively, the Assignment
Agreement, the Security Agreement and Financing Statement between the Contractor
and the Manufacturer dated this day, the Subordination Agreement between the
Contractor, the Manufacturer, and the Senior Lender dated this day, and this
Agreement.

         (c) The "Obligations" mean all of the obligations of the Manufacturer
and each of the Guarantors pursuant to the Contract Documents.

         (d) The term "Guarantors" means all of the undersigned, jointly and
severally; and the term "Guarantor" means each of the undersigned, individually
and collectively.

         (e) The "Securities" means the securities of the Manufacturer listed on
Schedule I attached to this Agreement and made a part hereof, together with all
other or additional securities to which any of the Guarantors (without
additional consideration) now are, or hereafter may be, entitled by virtue of
such Guarantor's ownership of any of the securities as a result of any corporate
reorganization, merger or consolidation, stock split, stock dividend, or
otherwise.

         (f) A "Default" means the occurrence of an event of default by the
Manufacturer pursuant to or in accordance with the provisions of any of the
Contract Documents or the failure of the Guarantors (or any of them) to perform
any covenant or agreement contained in this Agreement or if any representation
or warranty contained in this Agreement is found to have been untrue, incomplete
or misleading in any material respect when furnished.

         (g) The "Collateral" means all assets, property, and interests in
assets and property in which a security interest is granted and a pledge is made
by the Guarantors (or any of them) pursuant to (paragraph) 3 below.

         2. GUARANTY. The Guarantors, jointly and severally, unconditionally and
irrevocably, guaranty to Contractor the full and prompt payment and performance
when due, whether at maturity or earlier (by reason of acceleration) and at all
times thereafter, of all of the Obligations, and the undersigned further agree
to pay all costs and expenses including, without limitation, all court costs and
reasonable attorneys' fees and expenses paid or incurred by the Contractor in
endeavoring to collect all or any part of the Obligations from, or in
prosecuting any action against, Manufacturer or any of the Guarantors.

         3. PLEDGE OF SECURITIES. In addition, to secure the payment and
performance of the Obligations, the Guarantors each hereby grant to Contractor a
security interest in and hereby pledge and assign to Contractor the Securities,
with stock powers attached thereto all duly endorsed in blank, herewith
delivered to Contractor, and any and all dividends, distributions and other
proceeds thereof.

         4. TERMS AND CONDITIONS. (a) Subject to the provisions of the Contract
Documents, Contractor shall have the exclusive right to determine the
application of payments and credits, if any, received by Contractor from the
undersigned, the Manufacturer, the Senior Lender, and any Customer.

         (b) Contractor is authorized, without notice or demand, and without
affecting the liability of any of the Guarantors, from time to time to (i)
renew, extend, accelerate or otherwise change the time for payment or
performance of, or other terms relating to, the Obligations or any of them, or
otherwise modify, amend or change the terms of the Contract Documents or any of
them, or any other agreement, document or instrument now or hereafter executed
by the Manufacturer and delivered to Contractor; (ii) accept partial payments on
or performance of the Obligations; (iii) take and hold security or collateral
for the undersigned's Obligations under this Agreement, or any other

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guaranties of, or support or security agreement relating to, the Obligations and
exchange, enforce, waive and release any such security or collateral; (iv) apply
such security or collateral and direct the order or manner of sale as in its
sole discretion it may determine; and (v) settle, release, compromise, collect
or otherwise liquidate the Obligations and any security or collateral in any
manner, without affecting or impairing the Obligations of the undersigned.

         (c) At any time after a Default, Contractor may, at its discretion,
upon notice to the Guarantors and regardless of the acceptance of any security
or collateral for the payment, appropriate and apply toward the payment and
satisfaction of the Obligations (i) any indebtedness due or to become due from
Contractor to one or more of the Guarantors; and (ii) any monies, credits or
other property belonging to one or more of the Guarantors, at any time held by
Contractor on deposit or otherwise.

         (d) Contractor shall not be required to take any steps to preserve any
rights against prior parties (if any) to or in any of the Collateral or
Obligations.

         (e) Contractor may, but shall not be obligated to, and each of the
undersigned designates Contractor as attorney-in-fact to, contest, pay and/or
discharge all liens, encumbrances, taxes or assessments on, or claims, actions
or demands against any of the Collateral upon notice to, but without the consent
of the undersigned and to take all actions and proceedings in their name or in
the name of the Manufacturer or of any other appropriate person to remove or
contest such liens, encumbrances, claims, actions, demands, taxes or assessments
by litigation or otherwise. The undersigned agree to pay on demand all costs,
attorneys' fees, expenses, and all other stuns advanced or paid by Contractor
pursuant to this (paragraph) 4(e).

         (f) Contractor may, at its discretion, file one or more financing
statements, and in that respect to serve as the attorney-in-fact for each of
the undersigned for the purpose of executing such financing statements under the
Uniform Commercial Code, naming the Guarantors as debtor and Contractor as
secured party, and describing the types or items of Collateral. Contractor may
further serve as the attorney-in-fact for the Guarantors for the purpose of
executing any additional notices, affidavits or other documents as Contractor
may deem necessary to protect its security interest. The Guarantors agree to pay
on demand the amount of any and all filing fees and expenses which Contractor
deems necessary to incur to protect its interest in the Collateral.

         (g) Contractor shall exercise reasonable care in the custody and
preservation of the Collateral to the extent required by applicable statute, and
shall be deemed to have exercised reasonable care if it takes such action for
that purpose as the undersigned shall reasonably request in writing; but under
no circumstances shall any omission to comply with any such request of itself be
deemed a failure to exercise reasonable care. The undersigned agree to pay on
demand any cost or expense, including without limitation, attorneys' fees and
costs incurred by Contractor in the reasonable preservation of the Collateral.

         (h) The Guarantors consent and agree that Contractor shall be under no
obligation to marshall any assets against, or in payment of, any or all of the
Obligations. Guarantors further agree that to the extent that the Manufacturer
makes a payment(s) to Contractor, which payment(s) are

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subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to a trustee, receiver or any other party under any
bankruptcy act, state or federal law, common law or equitable cause, then to the
extent of such payment or repayment, the obligation intended to be satisfied
shall be renewed and continued in full force and effect as if said payment had
not been made, and the Guarantors shall, upon demand by Contractor, immediately
satisfy such obligation in full in accordance with the terms of this Agreement.
The Guarantors further agree that any and all claims of the Guarantors against
the Manufacturer or against its properties, arising by reason of any loan,
advance, investment or other payment by the undersigned to Contractor shall be
subordinate and subject in right of payment to the prior payment, in full, of
all sums due pursuant to the Obligations.

         (i) Each Guarantor assumes responsibility for keeping himself, herself
or itself informed of the financial condition of the Manufacturer and of all
other circumstances bearing upon the risk of Default. Contractor shall have no
duty to advise the Guarantors of information known to Contractor regarding such
condition or circumstances.

         (j) No delay on the part of Contractor in the exercise of any right or
remedy shall operate as a waiver or constitute a discharge of any of the
Guarantors' obligations under this Agreement, and no single or partial exercise
by Contractor of any right or remedy shall preclude the further exercise to any
extent; nor shall any modification or waiver of any of the provisions of this
Agreement be binding upon Contractor except as expressly set forth in a writing
duly signed and delivered by an authorized officer of Contractor. Contractor's
failure at any time to require strict performance by the Manufacturer or any
other party of any of the provisions, warranties, terms and conditions contained
in the Contract Documents shall not discharge any of the Guarantors' obligations
under this Agreement, nor shall it waive, affect or diminish any right of the
Contractor at any time to demand strict performance and such right shall not be
deemed to have been waived by any act or knowledge of Contractor unless such
waiver is contained in an instrument in writing, signed by an officer of
Contractor specifying such waiver. No waiver by Contractor of any default shall
operate as a waiver of either any other default or the same default on a future
occasion, and no action or inaction by Contractor including, without limitation,
Contractor's failure to take any steps to preserve its rights in the Collateral,
shall in any way affect or impair Contractor's rights or the obligations of the
Guarantors under this Agreement. The Guarantors agree that their obligations
under this Agreement will not be discharged except by complete performance of
all of the Obligations. Any determination by a court of competent jurisdiction
of the sums owing by the Manufacturer to Contractor shall be conclusive and
binding on the Guarantors irrespective of whether any of the Guarantors was a
party to the suit or action in which such determination was made.

         5. WARRANTIES AND REPRESENTATIONS. Each of the Guarantors, jointly and
severally, hereby represent and warrant to the Contractor that:

         (a) The execution, delivery, and performance by each Guarantor of this
Agreement will not violate any provision of law, any order of any court or other
agency of government, or any agreement or other instrument to which any of the
Guarantors is a party or by which any of the Guarantors is bound or be in
conflict with, result in a breach of or constitute (with due notice or lapse of
time, or both) a default under any such agreement or other instrument, or result
in the creation or

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imposition of any lien, charge, or encumbrance of any nature whatsoever upon any
of the property or assets of any Guarantor, except as contemplated by the
provisions of this Agreement;

         (b) This Agreement constitutes the legal, valid and binding obligation
of each of the Guarantors and is enforceable against each of the Guarantors in
accordance with the terms hereof;

         (c) As to such of the Collateral deposited with the Contractor on the
date hereof (i) the Guarantors are between them the legal and beneficial owners
of the Securities; (ii) the Securities are validly issued, fully paid and
non-assessable, and represent the percent of issued and outstanding shares of
stock of (or other interest in) the Manufacturer as set forth in Schedule I;
(iii) the securities transfer forms attached to the Certificates representing
such Collateral have been duly executed and delivered by each of the Guarantors
to Contractor; and (iv) none of the Collateral is subject to any security
interest, pledge, lien or other encumbrance or adverse claim of any nature
whatsoever.

         6. VOTING RIGHTS. Unless and until a Default hereunder shall have
occurred, each of the Guarantors shall be entitled to exercise all voting powers
pertaining to the portion of the Securities owned by such Guarantor for any
purposes not inconsistent with, or in violation of, the provisions of this
Agreement in all corporate matters except (unless Contractor consents thereto)
those related to any merger or consolidation of the Manufacturer, reorganization
of the Manufacturer, or mortgage, hypothecation, sale, or any other disposition
whatsoever by the Manufacturer of any of its material assets if such sale or
disposition shall decrease the net worth of the Manufacturer.

         7. DEFAULT. (a) Upon and during the continuance of any Default,
Contractor may, at its sole election: (i) proceed directly and at once, without
notice, against one or more of the Guarantors to collect and recover the full
amount or any portion of the Obligations, without first proceeding against the
Manufacturer or any other Guarantor, any collateral or any other party or any
other person, firm or corporation; (ii) with or without notice, transfer to or
register in the name of itself or its nominee any of the Securities, and whether
or not so transferred or registered, receive the income and dividends, including
stock dividends and rights to subscribe, and hold the same as a part of the
Collateral to secure the performance and payment of the Obligations, and/or
apply the same as provided in this Agreement; (iii) exchange any of the
Securities for other property upon the reorganization, recapitalization, or
other readjustment of the Manufacturer; and (iv) vote the Securities and
exercise or cause its nominee to exercise all or any powers with the same force
and effect as an absolute owner. All of the above rights and powers may be
exercised by Contractor without liability, except the obligation to account for
property actually received.

         (b) In addition to any other rights given by law and under this
Agreement, Contractor shall have the rights and remedies with respect to the
Collateral of a secured party under the Illinois Uniform Commercial Code
(whether or not that Code is in effect in the jurisdiction where the rights and
remedies are asserted) all of which remedies shall be cumulative, and none
exclusive, to the extent permitted by law. Contractor may sell or cause to be
sold, in one or more sales or parcels, at such price or prices as Contractor may
deem best, and for cash or on credit or for future delivery, without assumption
of any credit risk, all or any of the Collateral, at public or private sale,
without demand of performance but with notice to the undersigned, and the
purchaser of any or all of the

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Collateral so sold shall then hold the same absolutely, free from any claim or
right of any kind including (but not limited to) any equity of redemption of any
Guarantor. Any requirements of reasonable notice shall be met if such notice is
mailed, postage prepaid, to the Guarantors at the addresses set forth below at
least ten (10) days before the time of the sale or disposition. Any other
requirement of notice, demand or advertisement for sale is waived. Contractor
may, in its own name, or in the name of its designee, buy at any public or, if
permitted by law, any private sale, and, in lieu of the actual payment of the
purchase price, Contractor may set off the amount of such price against each
Guarantor's obligations hereunder. The undersigned, jointly and severally, will
pay to Contractor all expenses (including attorney's fees) of, or incident to,
the enforcement of any of the provisions of this Agreement.

         (c) Any right to set-off exercised by Contractor shall be deemed to
have been exercised immediately on the occurrence of a Default, even though such
set-off is made or entered on the books of Contractor at any subsequent time.

         (d) In view of the fact that federal and state securities laws may
impose certain restrictions on the method by which a sale of the Securities may
be effected, it is agreed that in the event of a Default, Contractor may from
time to lime attempt to sell all or any part of the Collateral by means of a
private placement, restricting the bidders and prospective purchasers to those
who will represent and agree that they are purchasing for investment only and
not for distribution. The undersigned agrees that acceptance by Contractor of
the highest offer after soliciting offers from two or more potential buyers
would be commercially reasonable.

         (e) Contractor, at any time and at its option, may apply all or any net
cash receipts from the sale of Collateral to the payment of the Obligations,
applying or reapplying, or distributing or allocating the same as it shall
elect, whether or not then due. In case of any sale by Contractor of any of the
Collateral on credit or for future delivery, the property sold may be retained
by Contractor until the selling price is paid by the purchaser, but Contractor
shall incur no liability in case of failure of the purchaser to take and pay for
the property so sold. In case of any such failure, the property so sold may be
again similarly sold.

         8. INDEMNIFICATION. The Guarantors will at all times, now and
hereafter, jointly and severally, indemnify and hold Contractor harmless from
and against all loss or damage arising in connection with this Agreement and
against all claims, liability, demands, actions or suits, and all liabilities,
payments, costs, charges and expenses including, but not limited to, attorneys'
fees and costs incurred by Contractor on account of or in connection with the
Agreement or the transactions or assertions of rights contemplated or permitted
hereunder.

         9. MISCELLANEOUS. (a) This Agreement shall be binding upon the
undersigned and upon the heirs, executors, successors and assigns of the
undersigned and shall inure to the benefit of Contractor's successors and
assigns; all references to the Manufacturer and to the undersigned shall be
deemed to include their respective successors, assigns, participants, receivers
or trustees (as the case may be).

         (b) This Agreement embodies the entire understanding of the parties
pertaining to the subject matter hereof, and shall constitute a continuing
agreement applicable to future as well as existing transactions between the
Contractor and the Manufacturer.

         (c) THIS AGREEMENT HAS BEEN DELIVERED AT AND SHALL BE DEEMED TO HAVE
BEEN MADE IN CHICAGO, ILLINOIS, AND SHALL BE INTERPRETED, AND THE RIGHTS AND
LIABILITIES OF THE PARTIES DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE STATE
OF ILLINOIS, AND AS PART OF THE CONSIDERATION FOR CONTRACTOR'S PERFORMANCE
PURSUANT TO THE CONTRACT DOCUMENTS, THE UNDERSIGNED CONSENT TO THE JURISDICTION
OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF ILLINOIS, AND
FURTHER CONSENT THAT ALL SUCH SERVICE OF PROCESS BE MADE BY CERTIFIED OR
REGISTERED MAIL, AND BY FEDERAL EXPRESS OR OTHER REPUTABLE OVERNIGHT COURIER,
DIRECTED TO THE UNDERSIGNED AT THE ADDRESS STATED HEREIN AND SERVICE SO MADE
SHALL BE DEEMED TO BE COMPLETED TWO (2) DAYS AFTER THE SAME SHALL HAVE BEEN
POSTED.

         (d) The headings used in this Agreement are for the convenience of the
reader only; such headings constitute no part whatsoever of the Agreement
between the parties.

         (e) No invalidity, irregularity or unenforceability of the Obligations
(or any of them) hereby secured shall affect, impair or be a defense to any
provision contained in this Agreement. If any term, condition or provision of
this Agreement is determined to be invalid or unenforceable, such determination
shall not affect the validity or enforceability of any other term, condition or
provision of this Agreement.

         (f) If this Agreement shall differ or conflict in terms with any of the
Contract Documents, the Agreement which gives Contractor the greater right, as
determined by Contractor, shall prevail.

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                                   GUARANTORS:

                                       JESSE SUTTON

                                       /s/ Jesse Sutton
                                       -----------------------------------------
                                       Address:
                                                --------------------------------

                                                --------------------------------

                                                --------------------------------

                                       JOE SUTTON

                                       /s/ Joe Sutton
                                       -----------------------------------------
                                       Address:
                                                --------------------------------

                                                --------------------------------

                                                --------------------------------

                                       Morris Sutton

                                       /s/ Morris Sutton
                                       -----------------------------------------
                                       Address:
                                                --------------------------------

                                                --------------------------------

                                                --------------------------------

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                                   GUARANTORS:

                                       ADAM SUTTON

                                       /s/ Adam Sutton
                                       -----------------------------------------
                                       Address:
                                                --------------------------------

                                                --------------------------------

                                                --------------------------------

                                       9

                                   SCHEDULE I
                         SECURITIES OF THE MANUFACTURERSECURITY AGREEMENT AND
                               FINANCING STATEMENT

         THIS SECURITY AGREEMENT AND FINANCING STATEMENT is made this 21st of
July, 2000, between TRANSCAP TRADE FINANCE, an Illinois general partnership (the
"SECURED PARTY"), and MAJESCO SALES, INC., a New Jersey corporation (the
"DEBTOR"), as follows:

BACKGROUND

A.       On this date, the Secured Party and Debtor entered into a Master
         Purchase Order Assignment Agreement (the "Assignment Agreement").

B.       It is a condition to Secured Party's performance of its obligations
         under the Assignment Agreement that the Debtor execute and deliver this
         Agreement to secure performance and payment of the "Liabilities" (as
         hereinafter defined).

         THEREFORE, in consideration of the agreements described in this
Agreement and the Assignment Agreement, the parties agree as follows:

         1. DEFINITIONS. In this Agreement, the following frequently used terms
are defined as set forth in this (paragraph) 1:

         (a) Each term used in this Agreement which is defined in the Assignment
Agreement will have the same meaning herein as that ascribed to it in the
Assignment Agreement.

         (b) The "LIABILITIES" are all payments and other obligations from time
to time due or owing to the Secured Party by the Debtor under the Assignment
Agreement, this Agreement and any agreement referred to in the Assignment
Agreement or this Agreement.

         (c) The "PRIMARY COLLATERAL" means those assets of the Debtor set forth
on Exhibit "A" attached to and made part of this Agreement, whether now or
hereafter existing or acquired, together with all the proceeds thereof and
Debtor's interests therein.

         (d) The "COMMON COLLATERAL" are those assets of Debtor set forth on
Exhibit "B" attached to and made part of this Agreement, whether now or
hereafter existing or acquired, together with all the proceeds thereof and
Debtor's interests therein which from time to time are also pledged to a Senior
Lender and as to which the Secured Party shall maintain a subordinated security
interest. If no Senior Lender is involved in the subject transaction, Exhibit
"B" shall be excluded from this Agreement and the Primary Collateral and Common
Collateral shall refer to the same assets.

         (e) The "COLLATERAL" means the Primary Collateral and the Common
Collateral and the Secured Party's security interest in the Collateral is
referred to as the "LIEN".

         (f) The "SENIOR LIEN" is the security interest in the Common Collateral
maintained by a Senior Lender (if any).

         (g) The "LOCATIONS" are Debtor's facilities set forth at the end of
this Agreement at which all or a portion of the Collateral will be located.

         2. GRANT OF SECURITY INTEREST. As security for the performance and
payment of the Liabilities, the Debtor hereby assigns, grants, conveys,
mortgages, hypothecates, pledges, and sets over to the Secured Party a
continuing first priority security interest for the use and benefit of the
Secured Party in the Primary Collateral; and a security interest for the use and
benefit of the Secured Party in the Common Collateral which is subordinate only
to the Senior Lien, if any.

         3. REPRESENTATION AND WARRANTIES. The Debtor represents, warrants, and
agrees that: (i) except with respect to the Senior Lien, no financing statement
or other lien notice covering any portion of the Collateral is on file in any
public office; (ii) the Debtor is and at all times will be the lawful owner of
all Collateral, free of all liens and claims whatsoever except the Senior Lien
and the Lien; (iii) the Debtor has full power and authority to execute this
Agreement and to perform the Debtor's obligations hereunder, and to subject the
Collateral to the Lien; (iv) all information with respect to Collateral set
forth in any schedule, certificate or other writing at any time heretofore, and
all other written information heretofore or hereafter furnished by the Debtor to
the Secured Party is and will be true and correct in all respects as of the date
furnished; (v) the Locations include the address at which any portion of the
Collateral is located and Debtor will immediately notify Secured Party of any
other location at which any portion of the Collateral is hereafter located; and
(vi) there is no litigation or regulatory complaint against the Debtor or
affecting or relating to the Collateral or any portion thereof which is pending
or threatened as of this date other than as set forth on Exhibit "E" of the
Assignment Agreement.

         4. CERTIFICATES, SCHEDULES AND REPORTS. The Debtor will from time to
time, as the Secured Party may request, deliver to the Secured Party such
schedules and such certificates and reports respecting the Collateral to such
extent as the Secured Party may reasonably request. Any such schedule,
certificate or report shall be executed by an authorized officer of the Debtor
and shall be in such form and detail as the Secured Party may specify. The
Debtor shall immediately notify the Secured Party of the occurrence of any event
causing a material loss or depreciation in the value of any item of Collateral,
and the amount of such loss or depreciation.

         5. AGREEMENTS OF THE DEBTOR. The Debtor (i) will, upon request of the
Secured Party, execute such financing statements and other documents (and pay
the cost of filing or recording the same), and do such other acts and things as
Secured Party may from time to time reasonably request to establish and maintain
valid perfected security interests in the Collateral; (ii) will keep all items
of Collateral at the Locations; (iii) will keep its records concerning all items
of Collateral at the Locations, which records will be of such character as will
enable Secured Party to determine at any time the status thereof; (iv) will
furnish the Secured Party such information concerning the Debtor and the
Collateral as the Secured Party may from time to time reasonably request; (v)
will permit the Secured Party or its designees, at all times, to inspect the
Collateral, and to inspect, audit and make copies of and extracts from all
records and all other papers in the possession of the Debtor, and

                                        2

will, upon request of the Secured Party, deliver to the Secured Party all of
such records and papers that pertain to the Collateral; (vi) will, upon request
of the Secured Party, stamp on its records concerning the Collateral (and/or
enter in its computer records concerning the Collateral) a notation, in form
reasonably satisfactory to the Secured Party, of the security interests of the
Secured Party hereunder; (vii) except as consented to in writing by the Secured
Party, will not sell, lease, assign or create or permit to exist any lien on or
security interest in any item of Collateral to or in favor of anyone other than
the Secured Party and the Senior Lender(s); (viii) will at all times keep all
items of Collateral insured against loss, damage, theft and other risks, in such
amounts, by such companies, under such policies and in such form as may be
required pursuant to the Assignment Agreement, which policies shall contain a
so-called lender's loss payable (or comparable) clause, whereby a denial of
payment based on policy conditions will not prevent recovery by Secured Party,
and such policies or certificates thereof shall be deposited with the Secured
Party; (ix) furnish to the Secured Party no less than thirty (30) days prior to
the occurrence of any change in the Locations or in Debtor's name, notice in
writing of such change; and (x) will reimburse the Secured Party for all
expenses, including reasonable attorneys' fees and legal expenses incurred by
the Secured Party in seeking to collect or enforce any rights under this
Agreement or the Assignment Agreement.

         6. REMEDIES. Whenever Debtor shall fail to perform any obligation in
the manner and at the time required by the Assignment Agreement or this
Agreement, or whenever the Debtor or any of them shall breach or default on a
covenant made by any Debtor pursuant to the Assignment Agreement or this
Agreement (collectively an "event of default"), the Secured Party may exercise
any rights and remedies available to it under the Assignment Agreement and
applicable law. The Debtor and each of them agrees, upon the occurrence of an
event of default and during the continuance thereof, if requested by the Secured
Party, to assemble, at the Debtor's expense, all or any part of the Collateral
at a place designated by the Secured Party. Without limiting the foregoing, upon
an event of default the Secured Party may, to the fullest extent permitted by
applicable law, without notice, advertisement, hearing or process of law of any
kind, (i) enter upon any premises where any of the Collateral may be located and
take possession of and remove such Collateral, (ii) sell any or all of the
Collateral, free of all rights and claims of the Debtor therein and thereto, at
any public or private sale, and (iii) bid for and purchase any or all of the
Collateral at any such sale. The Debtor and each of them hereby expressly
waives, to the fullest extent permitted by applicable law, any and all notices,
advertisements, hearings or process of law in connection with the exercise by
the Secured Party of any of its rights and remedies upon an event of default.
Any notification of the intended disposition of any of the Collateral required
by law shall be deemed reasonably and properly given if given at least ten (10)
days before such disposition. Any proceeds of any disposition by the Secured
Party of any of the Collateral will be applied by the Secured Party.

         First, to the payment of the Secured Party's reasonable out-of-pocket
         expenses in connection with the Collateral or this Agreement and
         enforcement of the Secured Party's rights with respect thereto or
         hereunder, including reasonable attorney's fees and legal expenses;

         Second, toward the payment or satisfaction of the Liabilities in full;
         and

         Third, any surplus to be paid to the Debtor, its successors and
         assigns, or as a court of competent jurisdiction may direct.

                                        3

         7. RELATIONSHIP WITH SENIOR LENDER. If a Senior Lender is involved in
the instant transaction, the Secured Party and each Senior Lender have entered
into a Subordination Agreement of even date herewith which defines and sets
forth the respective rights and interests of the Secured Party and each Senior
Lender in connection with the Collateral.

         8. MISCELLANEOUS. (a) The Secured Party shall be deemed to have
exercised reasonable care in the custody and preservation of any of the
Collateral in its possession if it takes such action for that purpose as the
Debtor requests in writing, but failure of the Secured Party to comply with any
such request shall not of itself be deemed a failure to exercise reasonable
care, and no failure of the Secured Party to preserve or protect any rights with
respect to such Collateral against prior parties, or to do any act with respect
to the preservation of such Collateral not so requested by the Debtor, shall be
deemed a failure to exercise reasonable care in the custody or preservation of
such Collateral.

         (b) All notices required or permitted pursuant to this Agreement shall
be in writing and either personally delivered, sent by facsimile transmission
(provided evidence of transmission is maintained and the original of the
transmittal notice is sent by U.S. mail), or Federal Express or similar
overnight delivery service, to the Secured Party at its address set forth at the
end of this Agreement and to the Debtor at any one of the Locations. Notices
given in the manner prescribed herein shall be deemed given on the date sent or
transmitted (as the case may be). Either party may change its notice address by
notice to the other party in the manner prescribed herein.

         (c) No delay on the part of the Secured Party in the exercise of any
right or remedy shall operate as a waiver thereof, and no single or partial
exercise by the Secured Party of any right or remedy shall preclude other or
further exercise thereof or the exercise of any other right or remedy.

         (d) No amendment to, modification or waiver of, or consent with respect
to, any provision of this Agreement shall in any event be effective unless the
same shall be in writing and signed and delivered by the Secured Party, and then
any such amendment, modification, waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

         (e) All obligations of the Debtor and all rights, powers and remedies
of the Secured Party expressed herein are in addition to all other rights,
powers and remedies possessed by Secured Party, including, without limitation,
those provided by applicable law or in any other written instrument or agreement
relating to any of the Liabilities or security therefor.

         (f) The Agreement shall in all respects be a continuing agreement and
shall remain in full force and effect until final payment in full of all the
Liabilities.

         (g) THIS AGREEMENT HAS BEEN DELIVERED AT NORTHBROOK, ILLINOIS, AND
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
ILLINOIS, SUBJECT, HOWEVER, TO THE UNIFORM COMMERCIAL CODE OF ANY APPLICABLE
JURISDICTION. WHENEVER POSSIBLE, EACH PROVISION OF THIS AGREEMENT SHALL BE
INTERPRETED IN SUCH MANNER AS TO BE EFFECTIVE AND VALID UNDER APPLICABLE LAW,
BUT

                                        4

IF ANY PROVISION OF THIS AGREEMENT SHALL BE HELD INVALID, ILLEGAL OR
UNENFORCEABLE UNDER APPLICABLE LAW, SUCH PROVISION SHALL BE INEFFECTIVE TO THE
EXTENT OF SUCH INVALIDITY, ILLEGALITY OR UNENFORCEABILITY, WITHOUT INVALIDATING
THE REMAINDER OF SUCH PROVISION OR THE REMAINING PROVISIONS OF THIS AGREEMENT.

         (h) THE DEBTOR IRREVOCABLY SUBMITS AND CONSENTS TO THE JURISDICTION OF
THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, EASTERN
DIVISION, OR ANY COURT OF THE STATE OF ILLINOIS LOCATED IN COOK COUNTY, AND
WAIVES ANY AND ALL OBJECTIONS TO JURISDICTION OR VENUE THAT ANY SUCH PARTY MAY
HAVE UNDER THE LAWS OF THE STATE OF ILLINOIS OR OTHERWISE IN THOSE COURTS IN ANY
SUCH SUIT, ACTION, OR PROCEEDING. FURTHER, TO THE EXTENT PERMITTED BY LAW,
SERVICE OF PROCESS SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST
THE DEBTOR MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, TO ITS ADDRESS FOR NOTICE AS PROVIDED IN THIS AGREEMENT.

         (i) DEBTOR AND SECURED PARTY ACKNOWLEDGE AND AGREE THAT ANY CONTROVERSY
WHICH MAY ARISE UNDER THIS AGREEMENT, ANY OTHER AGREEMENT RELATED HERETO OR WITH
RESPECT TO THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY WOULD BE BASED UPON
DIFFICULT AND COMPLEX ISSUES, AND THEREFORE, THE PARTIES AGREE THAT ANY COURT
PROCEEDING ARISING OUT OF ANY SUCH CONTROVERSY WILL BE TRIED IN A COURT OF
COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

         (j) This Agreement shall be binding upon, and shall inure to the
benefit of, the Secured Party and the Debtor and their respective successors and
assigns.

         (k) At the option of the Secured Party, this Agreement, or a carbon,
photographic or other reproduction of this Agreement or of any Uniform
Commercial Code financing statement covering the Collateral or any portion
thereof, shall be sufficient as a Uniform Commercial Code financing statement
and may be filed as such.

         (l) This Agreement is the Security Agreement referred to in the
Assignment Agreement.

         (m) In the case of any irreconcilable conflict between the provisions
of this Agreement and the Assignment Agreement, the provisions of the Assignment
Agreement shall control.

         (n) If more than one person or entity is included as a Debtor
hereunder, each of Debtor's obligations, covenants, warranties, and
representations hereunder is joint, several and mutually binding on each such
party.

         (o) This Agreement may be executed in one or more counterparts, each of
which taken together shall constitute one and the same instrument, admissible
into evidence. Delivery of an

                                        5

executed counterpart of this Agreement by facsimile shall be equally as
effective as delivery of a manually executed counterpart of this Agreement. Any
party delivering an executed counterpart of this Agreement by facsimile shall
also deliver a manually executed counterpart of this Agreement, but the failure
to deliver a manually executed counterpart shall not affect the validity,
enforceability, and binding effect of this Agreement.

         IN WITNESS WHEREOF, this Agreement has been duly signed at Northbrook,
Illinois on the day and year first above written.

                                        SECURED PARTY:

                                        TRANSCAP TRADE FINANCE

                   By: /s/
                   ------------------------------
                          Senior Credit Manager, Transcap Associates, Inc. GF
                   Address: 900 N. Skokie Blvd.
                   Northbrook, IL 60062

                   DEBTOR:

                   MAJESCO SALES, INC.

                   By:    /s/ Jesse Sutton
                   ----------------------
                   Title: President
                   ----------------------

                   LOCATIONS:

                   ---------------------------

                   ---------------------------

                   ---------------------------

                                        6

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