Document:

SECURITY AGREEMENT

SECURITY AGREEMENT

SECURITY AGREEMENT (this "Agreement"), dated as of January 24, 2005,
by and among Modern Technology Corp., a Nevada corporation (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 9% 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
$.0001 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 property 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.

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. Certain Definitions. As used in this Agreement, the following terms
shall have the meanings set forth in this Section 1. Terms used but not
otherwise defined in this Agreement that are defined in Article 9 of the UCC
(such as "general intangibles" and "proceeds") shall have the
respective meanings given such terms in Article 9 of the UCC.

(a) "Collateral" means the collateral in which the Secured Party is
granted a security interest by this Agreement and which shall include the
following, whether presently owned or existing or hereafter acquired or coming
into existence, and all additions and accessions thereto and all substitutions
and replacements thereof, and all proceeds, products and accounts thereof,
including, without limitation, all proceeds from the sale or transfer of the
Collateral and of insurance covering the same and of any tort claims in
connection therewith:

(i) All Goods of the Company, including, without limitations, all
        machinery, equipment, computers, motor vehicles, trucks, tanks, boats,
        ships, appliances, furniture, special and general tools, fixtures, test
        and quality control devices and other equipment of every kind and nature
        and wherever situated, together with all documents of title and
        documents representing the same, all additions and accessions thereto,
        replacements therefor, all parts therefor, and all substitutes for any
        of the foregoing and all other items used and useful in connection with
        the Company's businesses and all improvements thereto (collectively, the
        "Equipment"); and

        (ii) All Inventory of the Company; and

        (iii) All of the Company's contract rights and general intangibles,
        including, without limitation, all partnership interests, stock or other
        securities, licenses, distribution and other agreements, computer
        software development rights, leases, franchises, customer lists, quality
        control procedures, grants and rights, goodwill, trademarks, service
        marks, trade styles, trade names, patents, patent applications,
        copyrights, deposit accounts, and income tax refunds (collectively, the
        "General Intangibles"); and

        (iv) All Receivables of the Company including all insurance proceeds,
        and rights to refunds or indemnification whatsoever owing, together with
        all instruments, all documents of title representing any of the
        foregoing, all rights in any merchandising, goods, equipment, motor
        vehicles and trucks which any of the same may represent, and all right,
        title, security and guaranties with respect to each Receivable,
        including any right of stoppage in transit; and

        (v) All of the Company's documents, instruments and chattel paper,
        files, records, books of account, business papers, computer programs and
        the products and proceeds of all of the foregoing Collateral set forth
        in clauses (i)-(iv) above.

      
    
  

(b) "Company" shall mean, collectively, Company and all of the
subsidiaries of Company, a list of which is contained in Schedule A,
attached hereto.

(c) "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.

(d) "UCC" means the Uniform Commercial Code, as currently in effect in
the State of New York.

2. Grant of Security Interest. As an inducement for the Secured Party
to purchase the Notes and 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 Collateral (the "Security Interest").

3. Representations, Warranties, Covenants and Agreements of the Company.
The Company represents and warrants to, 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
Collateral is stored or located, except as set forth on Schedule A
attached hereto;

(c) The Company is the sole owner of the Collateral (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 Collateral.
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 Collateral. 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).

(d) No part of the Collateral has been judged invalid or unenforceable. No
written claim has been received that any Collateral or the Company's use of any
Collateral violates the rights of any third party. There has been no adverse
decision to the Company's claim of ownership rights in or exclusive rights to
use the Collateral in any jurisdiction or to the Company's right to keep and
maintain such Collateral in full force and effect, and there is no proceeding
involving said rights pending or, to the best knowledge of the Company,
threatened before any court, judicial body, administrative or regulatory agency,
arbitrator or other governmental authority. 

(e) The Company shall at all times maintain its books of account and records
relating to the Collateral at its principal place of business and its Collateral
at the locations set forth on Schedule A attached hereto and may not
relocate such books of account and records or tangible Collateral 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 appropriate financing
statements and other 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
Collateral. 

(f) This Agreement creates in favor of the Secured Party a valid security
interest in the Collateral securing the payment and performance of the
Obligations and, upon making the filings described in the immediately following
sentence, a perfected first priority security interest in such Collateral.
Except for the filing of financing statements on Form-1 under the UCC with the
jurisdictions indicated on Schedule B, attached hereto, no authorization
or approval of or filing with or notice to any governmental authority or
regulatory body is required either for the grant by the Company of, or the
effectiveness of, the Security Interest granted hereby or for the execution,
delivery and performance of this Agreement by the Company or for the perfection
of or exercise by the Secured Party of its rights and remedies hereunder. 

(g) On the date of execution of this Agreement, the Company will deliver to
the Secured Party one or more executed UCC financing statements on Form-1 with
respect to the Security Interest for filing with the jurisdictions indicated on
Schedule B, attached hereto and in such other jurisdictions as may be
requested by the Secured Party.

(h) 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.

(i) 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 Collateral 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 Collateral for the account of the
Secured Party. At the request of the Secured Party, the Company will sign and
deliver to the Secured Party at any time or from time to time one or more
financing statements pursuant to the UCC (or any other applicable statute) in
form reasonably satisfactory to the Secured Party and will pay the cost of
filing the same in all public offices wherever filing is, or is deemed by the
Secured Party to be, necessary or desirable to effect the rights and obligations
provided for herein. Without limiting the generality of the foregoing, the
Company shall pay all fees, taxes and other amounts necessary to maintain the
Collateral 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. 

(j) 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 Collateral without the
prior written consent of the Secured Party.

(k) The Company shall keep and preserve its Equipment, Inventory and other
tangible Collateral in good condition, repair and order and shall not operate or
locate any such Collateral (or cause to be operated or located) in any area
excluded from insurance coverage.

(l) 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 Collateral, and of the occurrence of any event which would have a
material adverse effect on the value of the Collateral or on the Secured Party's
security interest therein.

(m) The Company shall promptly execute and deliver to the Secured Party such
further deeds, mortgages, assignments, security agreements, financing statements
or other instruments, documents, certificates and assurances and take such
further action as the Secured Party may from time to time request and may in its
sole discretion deem necessary to perfect, protect or enforce its security
interest in the Collateral including, without limitation, the execution and
delivery of a separate security agreement with respect to the Company's
intellectual property ("Intellectual Property Security Agreement") in
which the Secured Party has been granted a security interest hereunder,
substantially in a form acceptable to the Secured Party, which Intellectual
Property Security Agreement, other than as stated therein, shall be subject to
all of the terms and conditions hereof.

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

(o) 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 Collateral.

(p) 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 Collateral and of any other information received by
the Company that may materially affect the value of the Collateral, the Security
Interest or the rights and remedies of the Secured Party hereunder.

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

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

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 or in the
Intellectual Property Security 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 or in the Intellectual Property Security Agreement 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 Collateral 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
Collateral and, for that purpose, enter, with the aid and assistance of any
person, any premises where the Collateral, or any part thereof, is or may be
placed and remove the same, and the Company shall assemble the Collateral 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 Collateral in saleable or disposable form.

(b) The Secured Party shall have the right to operate the business of the
Company using the Collateral and shall have the right to assign, sell, lease or
otherwise dispose of and deliver all or any part of the Collateral, 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 Collateral, the Secured Party may, unless
prohibited by applicable law which cannot be waived, purchase all or any part of
the Collateral being sold, free from and discharged of all trusts, claims, right
of redemption and equities of the Company, which are hereby waived and released.

7. Applications of Proceeds. The proceeds of any such sale, lease or
other disposition of the Collateral 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 Collateral, 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
Collateral, 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 Collateral, 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 Collateral, 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
Collateral 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 the enforcement of
this Agreement, the custody or preservation of, or the sale of, collection
from, or other realization upon, any of the Collateral, or 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 Collateral. The Company assumes all liabilities
and responsibility in connection with all Collateral, 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 Collateral 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: 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; 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 departure
from the Notes, the Warrants or any other agreement entered into in connection
with the foregoing;  any exchange, release or nonperfection of any of the
Collateral, or any release or amendment or waiver of or consent to departure
from any other collateral for, or any guaranty, or any other security, for all
or any of the Obligations; 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 Collateral; or 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 Collateral 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 Collateral 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, 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 Collateral that may come into possession of the Secured Party;
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 Collateral; to pay or discharge taxes, liens,
security interests or other encumbrances at any time levied or placed on or
threatened against the Collateral; to demand, collect, receipt for, compromise,
settle and sue for monies due in respect of the Collateral; and generally, to
do, at the option of the Secured Party, and at the Company's expense, at any
time, or from time to time, all acts and things which the Secured Party deems
necessary to protect, preserve and realize upon the Collateral 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 B, 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 Collateral.

(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 Collateral 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 if delivered by hand, upon
receipt, if sent by facsimile, upon receipt of proof of sending thereof, if
sent by nationally recognized overnight delivery service (receipt requested),
the next business day or 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: Modern Technology Corp.

            1420 N. Lamar Boulevard

            Oxford, Mississippi 38655

            Attention: Chief Executive Officer

            Telephone: 662-236-5928

            Facsimile: 662-236-7662

            With a copy to: Parsons
            Law Firm

            2070 Skyline Tower

            10900 N.E. 4th
            Street

            Bellevue, WA 98004

            Attention: James B.
            Parsons, Esq.

            Telephone: (425) 451-8036

            Facsimile: (425) 451-8568

            If to the Secured Party: AJW Partners, LLC

            AJW Offshore, Ltd.

            AJW Qualified Partners, LLC

            New Millennium Capital Partners II, LLC

            1044 Northern Boulevard

            Suite 302

            Roslyn, New York 11576

            Attention: Corey Ribotsky

            Facsimile: 516-739-7115

            With a copy to: Ballard Spahr Andrews & Ingersoll, LLP

            1735 Market Street, 51st Floor

            Philadelphia, Pennsylvania 19103

            Attention: Gerald J. Guarcini, Esq. 

            Facsimile: 215-864-8999

          

        

      

    

  

14. Other Security. To the extent that the Obligations are now or
hereafter secured by property other than the Collateral 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
Collateral, 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.

(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 Collateral 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. 

(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]

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

  
    
      
        
          
            
              MODERN TECHNOLOGY CORP.

              
              By:
              _____________________________________

              Anthony K. Welch

              Chief Executive Officer

              

              
              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

              

              
              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

              ManagerFiled by Automated Filing Services Inc. (604) 609-0244 - Fitmedia Inc. - Exhibit 10.1

Exhibit 10.1

WRITER AGREEMENT

This agreement made and entered into as of the 27th
day of June, 2005.

BETWEEN:

FITMEDIA INC., a company duly
  incorporated under the laws of the state of Delaware, and extra-provincially
  registered in B.C., with an office at 304B-338 W 8th Avenue, Vancouver,
  British Columbia, Canada, V6Y 3X2 (“Producer”).

OF THE FIRST PART 

AND: 

JOELLE LAZAR, a person residing
  at 2710 East 7th Avenue, 17 West 18th Avenue, Vancouver,
  B.C., Canada, V5M 1T7 (“Writer”).

OF THE SECOND PART

WHEREAS:

	A.   	Producer intends to engage the services
        if the Writer to prepare the outline (the “Screenplay”) (collectively
        the “Property”) tentatively entitled “Fitmedia’s Pre-Natal
        Yoga”. 

	  	  
	B.   	Producer wishes to obtain the exclusive
        right s in and to the Screenplay upon the terms and conditions herein
        contained. 

	  	  
	  	ACCORDINGLY, IT IS AGREED AS FOLLOWS:
      

	1.	ENGAGEMENT 
	 	 	 	 	 
	1.1	Producer engages Writer
        to provide services as a writer of the Screenplay as specified below.
      

	 	 
	1.2	Writer’s services shall
        include the preparation and delivery of : 

	 	a.
	treatment (the “Treatment”)
        of the Screenplay which shall include the following: 

	 	 	a.
	an outline for 45 minutes of yoga poses suitable
      for pregnant women, which shall include pelvic floor exercises; 
	 	 	b.
	a list of subheadings for the 45 minutes of yoga;
    
	 	 	c.
	short separate segment (up to 5 minutes each)
      regarding the following: 
	 	 	 	i.	guided mediation (how to stay centered in the midst of a
      storm); 
	 	 	 	ii.	anatomy of breath; and 
	 	 	 	iii.	hand mudras; 
	 	b.
	A Draft (the “First
        Draft”) of the Screenplay to be based on the Treatment; and 

	 	c.
	One set of changes and revisions
        to that resulting in a revised draft (the “Revisited Draft”)
        of the Screenplay 

	 	 	 
	 	as may be required by Producer.
      

	 	 
	1.3	Writer acknowledges that
        the First Draft and the Revisited Draft shall be based on the treatment
        and the materials such other suggestions and comments as may be provided
        by Producer and shall be suitable for the production of a film based in
        the Screenplay (the “Video”) having a running time of between
        approximately 60 minutes. 

1

	1.4 	Producer shall, in its sole discretion, be entitled
        to modify the overall length of the Screenplay, the Video or both. In
        the event that modifications affect the services as reasonably required
        by Producer. 

	 	 
	2. 	DELIVERY 

	2.1 	Writer agrees to prepare and deliver the Treatment
        on or before 2 days of entering into this Agreement; 

	 	 
	2.2 	Writer agrees to prepare and deliver the First Draft
        on or before 3 days of entering into this Agreement. 

	 	 
	2.3 	Producer shall have a period of 2 days following
        its receipt of the First Draft to review it and to require Writer, by
        notice in writing (a “Revision Notice”) given to Writer within
        such period, to prepare the Revised Draft. During the 2 day period, Writer
        shall make himself available to Producer at mutually convenient times
        for the purposes of reviewing and discussion changes and revisions to
        the First Draft. In the event that the Producer requires that Writer prepare
        the Revised Draft, Writer shall prepare and deliver it within 3 days after
        the Revision Notice was given. 

	 	 
	3. 	COMPENSATION 

	3.1 	In consideration for Writer’s services rendered
        or agreed to be rendered and for all the rights granted or agreed to be
        granted by Writer, together with Writer’s other agreements, Producer
        agrees to pay writer and Writer agrees to accept a fee of $80 U.S. Dollars
        per hour, but Writer shall not spend more than 8 hours in total for writing
        services without first notifying Producer in writing. Writer shall invoice
        Producer on a weekly basis for services, and invoices shall be paid within
        10 days of receipt. 

	 	 
	3.2 	In addition to hourly fees, Producer shall pay to
        the Writer a royalty payment amount equal to 5% of all net receipts received
        by Producer for exploitation of the Property. Net Receipts is defined
        as all revenues received by Producer from the sale of the Property, less
        all production expenses, duplication expenses, marketing expenses, credit
        card fees and chargebacks, transaction processing fees, other electronic
        commerce processing, patent royalties or other fees, sales tax, mechanical
        royalties, public performance fees, shipping, union, guild or other third
        party fees, Internet advertising and promotion costs, such as banner ads
        on other web sites, Internet referral fees, such as fees payable to any
        third party who, through their web site, email or other means, refers
        to us a purchaser, and a $3.00 server/e-commerce charge from each single
        download where the property is sold in digital format. Royalty payments
        shall be due annually. 

	 	 
	3.3 	Payment to Writer shall be deemed to be equitable
        and inclusive remuneration, including all sales and goods and services
        tax, for all services rendered by Writer in connection with the Screenplay
        and have been paid by way of a complete buy-out of all proceeds of Writer’s
        services hereunder in any and all media throughout the universe pursuant
        to any collective bargaining agreement, if any, other wise, by way of
        residuals, repeat fees, pension contributions, or any other monies whatsoever.
      

	 	 
	3.4 	If Writer arranges for any of her students to appear
        in the Video, each student shall sign a photo release as approved by both
        Writer and Producer, and each student shall be compensated for her services
        at a rate of $22 U.S. Dollars per hour. 

	 	 
	3.5 	If Writer’s studio is used as a location for
        photography of the Video, Writer shall receive additional compensation
        of $26 U.S. Dollars per hour for each hour that the studio is used for
        pre-production and actual filming of the Video. 

2

	4. 	CREDIT 

	4.1 	Provided that Writer is not in breach if
        any provision of this Agreement, Producer shall accord Writer a credit
        in a single card clear view as “Written by Joelle Lazar”. The
        credit shall be a single screen front credit which shall be no less in
        size than any other credit appearing in the Video. Producer will request
        comments from Writer regarding the form, shape, size and placement of
        the credit, and Producer will make its best efforts to comply with any
        request made by Writer regarding her credit. 

	 	 	 
	4.2 	There shall no obligation to accord Writer
        credit in paid advertising or publicity, although Producer may from time
        to time elect, in its sole discretion, to accord Writer such credit. 

	 	 	 
		Producer shall exert its reasonable and
        best efforts to require any distributor of the Picture to comply with
        the foregoing credit obligations. Any casual or inadvertent failure of
        the Producer or its assignees or licensees to comply with the foregoing
        credit provisions shall not constitute a material breach of this Agreement
        and Producer shall exert its reasonable best efforts to cure any such
        failure upon receipt of written notice from Performer. 

			
	4.3 	Producer shall include, at the end of the
        main video sequence on the Video, information directing viewers to Writer’s
        website and how to obtain further information on Writer’s yoga classes.
      

	 	 	 
	5. 	GRANT OF RIGHTS 

	5.1 	For the purposes of this Agreement, the
        term “Screenplay” shall include the Treatment, the First Draft,
        and the Revisited Draft and all the revisions of the Screenplay. 

	 	 	 
	5.2 	Writer shall transfer and Producer shall
        own in perpetuity (or the maxim term allowed by law) the sole and exclusive
        ownership of all proprietary rights, options and interests of any kind
        whatsoever in the Screenplay, all elements, portions and components thereof,
        copyright ownership of; all worldwide copyrights, trade marks and similar
        intellectual property rights (all of which are included in the definition
        of the Screenplay) including without limitation, the following exclusive
        worldwide, perpetual and irrevocable rights: 

	 	 	 
		A. 
	re-make, sequel, prequel, serial, spin-off, “behind
        the scenes”, “making of” and similar rights in the Screenplay;
      

	 	 	 
		B. 
	the right to exhibit, perform, transmit, sell, rent
        lease, and generally exploit, by any and all means and technical process
        now known or hereafter devised commercially throughout the world the Screenplay
        and all motion pictures, films and television programs based upon or derived
        from the Screenplay in all media and by all manner and means of communication
        including, without limitation, theatrical and non-theatrical exhibition,
        television broadcast, live television, cable and satellite transmission,
        video cassettes, computer software, computer video games, interactive
        devices, laser discs and similar items, DVD discs, CSI, CD-ROM, digital
        download, digital or other stream through the Internet, PDA or mobile
        phone, soundtrack recordings, radio play rights, books and similar items,
        format rights, stage rights and any other recording device whether known
        or unknown; 

	 	 	 
		C. 
	the right to undertake and authorize the use and
        reproduction off all titles, characters, places, names and other elements
        of the Screenplay on and in conjunction with the commercial exploitation
        of all manner of goods, products and services, including all types of
        merchandising and theme park rights; 

3

	 	D. 	commercial endorsement, promotional and advertising
        and tie-up rights associated with the Screenplay and all motion pictures,
        films and television programs based thereon; 

	 	 	 
	 	E. 	the non-exclusive right and license to use and reproduce
        the name, sobriquet, likeness, photograph and biographical information
        of the Writer for purpose of advertising and publicity in connection with
        the exercise by the Producer of any of the foregoing rights; and 

	 	 	 
	 	F. 	the rights to publish the Screenplay. 

	5.3 	If and to the extend that the Writer may
        now or in the future be entitled to any so-called moral, authors’
        or similar rights in the Screenplay pursuant to the Copyright Act or otherwise,
        the Writer hereby irrevocably waives and relinquishes all such rights
        in favour of the Producer and its assignees and licensees to the fullest
        extent permitted by law. 

	 	 	 
	5.4 	The Writer covenants and agrees that all
        rights, licenses, interests and Screenplay granted it the Producer herein
        shall be irrevocable vested in the Producer in perpetuity and shall not
        be subjected to revocation or rescission by the Writer, or any party claiming
        through or instead of the Writer, for any reason whatsoever. If any time
        the Producer or its assignees or licensees are alleged to be in breach
        or default of any provision of this agreement, the rights of the Writer
        with respect to such alleged or default of any provision of this agreement,
        the rights of the Writer with respect to such alleged breaches or default
        shall be limited to a claim for damages in an action at law and the Writer
        specifically covenants and agrees that he will not be entitled to seek,
        obtain or enforce an injunctive or other equitable relief which would
        in any way interfere with, prevent, delay or impede the complete unfettered
        exercise by the Producer of all rights, interests, licenses and Screenplay
        granted herein. 

	 	 	 
	5.5 	The Writer hereby covenants and warrants
        to the Producer that: 

	 	 	 
		A. 
	the Screenplay will be based upon or derived from
        ideas and characters created by the Writer; 

	 	 	 
		B. 
	the Screenplay will not, to the best of Writer’s
        knowledge, information and belief, infringe upon or violate any right
        or Screenplay, whether common law or statutory, of any person, firm or
        corporation and does not contain any matter which is libelous, obscene
        or otherwise unlawful; and 

	 	 	 
		C. 
	the Screenplay will be free and clear of all liens,
        claims and encumbrances of every kind and Writer will not grant any right,
        license or interest in the Screenplay other than to Producer or at Producer’s
        direction, nor is there any pending or threatened any legal proceeding
        or arbitration of any kind in respect of the Screenplay; 

	 	 	 
			and the Writer acknowledges and agrees that all of
        the foregoing covenants and warranties constitute material inducements
        upon which the Producer has relied in entering this Agreement. 

	 	 	 
	5.6 	The Writer covenants to indemnify and save
        harmless the Producer from all liabilities, causes of action, damages,
        costs and expenses, including actual and reasonable legal and Court costs,
        which may be incurred or suffered by the Producer as a result of any breach
        by the Writer of any representation or provision of this Agreement. 

4

	6. 	NO INJUNCTION 

		Writer acknowledges and agrees that if at any time
        Producer or its assignees or licensees are alleged to be in breach of
        default of any provision of this Agreement, the sole remedy of Writer
        with respect to such a breach or default shall be limited to a claim for
        money damages in an action at law and neither Writer nor any party claiming
        in the place of or through Writer shall be entitled to rescind or terminate
        this Agreement or to apply for, obtain or enforce any injunctive, equitable
        or other relief of any nature whatsoever which would in any manner prohibit,
        prevent, restrict, impede, delay, or otherwise interfere with the complete
        and unfettered exercise by Producer and its assignees and licensees of
        all rights and licenses granted herein including the Production, distribution,
        advertising, and general exploitation of the Picture and all elements
        and rights therein. 

	 	 
	7. 	ASSIGNMENT 

		Producer shall have the right to assign this agreement
        and any of the rights granted herein, in whole or in part, to any person,
        form, corporation or entity, and nothing contained therein shall imply
        anything to the contrary. Upon the assign’s assumption of the obligations
        of Producer with respect to the rights so assigned, Producer shall be
        relieved of all such obligations. Producer shall also have the rights
        to lend the services of the Writer to any person, firm or corporation
        which is a subsidiary, parent or affiliate of Producer or the successor
        to Producer by a merger or by a transfer of substantially all of Producer’s
        assets. 

	 	 
	8. 	FURTHER DOCUMENTS 

	8.1 	On delivery of the First Draft and the Revised Draft,
        Writer agrees to execute and sign and have witnessed and notarized by
        a Notary Public, and to provide to Producer three originals of a Writer’s
        Certificate, and a Transfer of Rights document. 

	 	 
	8.2 	Writer undertakes and agrees to execute, deliver
        and acknowledge such further documents, instruments and assurances as
        may be reasonably required in order to carry out and implement fully the
        terms of this Agreement. 

	 	 
	9. 	NO OBLIGATION 

		Writer agrees that Producer shall have no obligation
        to make, produce, or otherwise exploit or make use of any of the rights
        granted to Producer, and hereby releases and holds Producer free and harmless
        from any liability and loss or damage that Writer may suffer by reason
        or Producer’s failure to make, produce, or otherwise exploit any
        motion picture based on Screenplay in whole or in part. 

	 	 
	10. 	NO WAIVER 

		A waiver by Producer of any breach or default hereunder
        by Writer shall not be deemed to constitute a waiver of any preceding
        or subsequent breach or default, whether or not of the same or similar
        nature. 

	 	 
	11. 	BINDING ON ESTATE 

		This Agreement shall enure to the befit of and be
        binding upon the parties hereto and their respective heirs, executors,
        successors, administrators and permitted assigns. 

	 	 
	12. 	NO LIMIT ON RIGHTS 

		Termination of this Agreement or of Writer’s
        services rendered, for any reason whatsoever, shall not extinguish or
        limit any of Producer’s rights, interests or property in, or title
        to, the results and proceeds of Writer’s services. 

	 	 
	13. 	WITHHOLDING TAX 

5

		Producer may deduct and withhold from any monies
        otherwise payable under this Agreement such amounts as Producer may reasonably
        believe it is legally required to deduct and withhold. 

	 	 
	14. 	ENTIRE AGREEMENT 

		This Agreement constitutes the entire understanding
        and agreement of Writer and Producer regarding Writer’s services
        to be rendered in connection with the Picture, and supersedes and replaces
        all previous written and verbal communications, representations, negotiations,
        expectations and understandings. 

	AGREED TO AND ACCEPTED: 	 
	  	 
	/s/ Joelle Lazar 	 
	  	(signature) 
	Joelle Lazar 	 
	  	 
	  	 
	AGREED TO AND ACCEPTED: 	 
	  	 
	Fitmedia Inc. 	 
	  	 
	  	 
	By: /s/ Timothy Crottey 	 
	  	(signature) 
	Per: Authorized Signatory: Timothy Crottey,
      President 	 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]