Document:

ex10-22.htm

    Exhibit
10.22

     

    STOCK
PURCHASE AGREEMENT

     

    by and
between

     

    IVOICE,
INC.

     

    “PURCHASER”

     

    And

     

    IVOICE
TECHNOLOGY, INC.

     

    “COMPANY”

     

    Dated:  March
11, 2008

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    STOCK
PURCHASE AGREEMENT

     

    THIS
STOCK PURCHASE AGREEMENT, dated as of March 11, 2008, is made and entered into
by and among iVoice Technology, Inc. (the “Company”) and iVoice, Inc. (the
“Purchaser”).   The Purchaser and the Company are sometimes
individually referred to herein as a “Party” and
collectively as the “Parties.”

     

    RECITALS:

     

    WHEREAS,
upon the terms and conditions set forth herein, the Company proposes to sell to
the Purchaser and the Purchaser proposes to purchase from the Company 1,444.44
shares of the Company’s Series A 10% Secured Convertible Preferred Stock (the
“Preferred Stock”);

     

    NOW,
THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants, agreements and conditions hereinafter set forth, and
intending to be legally bound hereby, each Party hereby agrees as
follows:

     

    ARTICLE
I

    DEFINITIONS

     

    Section
1.1 Certain
Definitions.  The following terms, as used herein, have the
following meanings:

     

     “Affiliate” of any
specified Person means any other Person directly or indirectly Controlling or
Controlled by or under direct or indirect common Control with such specified
Person.

     

    “Agreement” means this
Stock Purchase Agreement, as amended from time to time.

     

     “Assets” means all of
the assets, properties and rights of the Company, whether real, personal or
mixed, whether tangible or intangible, and wherever situated, in existence on
the date hereof and any additions thereto on or before the Closing
Date.

     

    “Business Day” means
any day except Saturday, Sunday or any day on which banks are generally not open
for business in the City of New York, New York.

     

     “Closing” means the
consummation of the purchase and sale of the Preferred Stock, as set forth in
this Agreement.

     

    “Closing Date” means
the date on which the Closing occurs.

     

    “Code” means the
United States Internal Revenue Code of 1986, as amended, including effective
date and transition rules (whether codified or not).  Any reference
herein to a specified provision of the Code shall be deemed to include a
reference to any successor provision thereof.

     

    “Company Ancillary
Documents” means any certificate, agreement, document or other
instrument, other than this Agreement, to be executed and delivered by the
Company in connection with the transactions contemplated hereby.

     

     “Contract” means any
contract, sub-contract, agreement, lease, license, commitment, sale and purchase
order, note, loan agreement or any other instrument, arrangement, or
understanding of any kind, whether written or oral, and whether express or
implied.

     

    “Control” means, when
used with respect to any specified Person, the power to direct the management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by Contract or otherwise.

     

    “Customer” means a
customer of the Company that paid the Company in the aggregate more than $25,000
during the twelve (12)-month period ended December 31, 2007.

     

    “GAAP” means generally
accepted accounting principles as applied in the United States.

     

    “Governmental Entity”
means any (i) nation, state, commonwealth, county, city, town, village,
district, or other jurisdiction of any nature, (ii) federal, state, local,
municipal, foreign, or other government, (iii) federal, state, local or
foreign governmental or quasi-governmental authority of any nature (including
any agency, branch, department, board, commission, court or tribunal),
(iv) multi-national or supra-national organization or body, (v) body
exercising, or entitled or purporting to exercise, any administrative,
executive, judicial, legislative, police, regulatory, or taxing authority or
power, including any court or arbitrator, (vi) self-regulatory organization
or (vii) official of any of the foregoing.

     

     “Intellectual
Property” means any or all of the following and all rights, arising out
of or associated therewith: (a) all United States, international and
foreign patents and applications therefor and all reissues, divisions, renewals,
extensions, provisionals, continuations and continuations-in-part thereof;
(b) all inventions (whether patentable or not), invention disclosures,
improvements, proprietary information, know-how, technology, technical data and
customer lists, and all documentation relating to any of the foregoing
throughout the world; (c) all copyrights, copyright registrations and
applications therefor, and all other rights corresponding thereto throughout the
world; (d) all industrial designs and any registrations and applications
therefor throughout the world; (e) all internet uniform resource locators,
domain names, trade names, logos, slogans, designs, common law trademarks and
service marks, trademark and service mark registrations and applications
therefor throughout the world; (f) all databases and data collections and
all rights therein throughout the world; (g) all moral and economic rights
of authors and inventors, however denominated throughout the world; and
(h) any similar or equivalent rights to any of the foregoing anywhere in
the world.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Knowledge” means all
facts known by a Person on the date hereof or on the Closing Date following
reasonable inquiry and diligence with respect to the matters at
hand.

     

     “Laws” means all laws,
statutes, common law, rules, codes, regulations, restrictions, ordinances,
orders, decrees, approvals, directives, judgments, rulings, injunctions, writs,
awards and decrees of, or issued or entered by, all Governmental
Entities.

     

    “Licenses” means all
notifications, licenses, permits (including environmental, construction and
operation permits), franchises, certificates, approvals, exemptions,
classifications, registrations and other similar documents and authorizations
issued by any Governmental Entity, and applications therefor.

     

    “Liens” mean all
mortgages, liens, pledges, security interests, charges, claims, restrictions and
encumbrances of any nature whatsoever.

     

     “Material Adverse
Effect” means any state of facts, change, event, effect or occurrence
(when taken together with all other states of fact, changes, events, effects or
occurrences) that has had or is reasonably likely to have a materially adverse
effect on the financial condition, results of operations, prospects, properties,
assets or liabilities (including contingent liabilities) of the
Company.  A Material Adverse Effect shall also include any state of
facts, change, event or occurrence that shall have occurred or been threatened
that (when taken together with all other states of facts, changes, events,
effects or occurrences that have occurred or been threatened) has prevented or
materially delayed, or would be reasonably likely to prevent or materially
delay, the performance by any Party of their obligations hereunder or the
consummation of the transactions contemplated hereby.

     

    “Permitted Liens”
means (a) Liens for Taxes not yet due and payable, (b) Liens of
carriers, warehousemen, mechanics, materialmen and repairmen incurred in the
ordinary course of business consistent with past practice and not yet delinquent
and (c) in the case of the Real Property, zoning, building, or other
restrictions, variances, covenants, rights of way, encumbrances, easements and
other minor irregularities in title, none of which, individually or in the
aggregate, (i) interfere in any material respect with the present use of or
occupancy of the affected parcel by the Company, (ii) have more than an
immaterial effect on the value thereof or its use, or (iii) would impair
the ability of such parcel to be sold for its present use.

     

    “Person” means any
individual, corporation, partnership, joint venture, limited liability company,
trust, unincorporated organization or Governmental Entity.

     

    “Purchaser Ancillary
Documents” means any certificate, agreement, document or other
instrument, other than this Agreement, to be executed and delivered by the
Purchaser in connection with the transactions contemplated hereby.

     

    “Registered Intellectual
Property” means all United States, international and foreign:
(a) patents and patent applications (including provisional applications);
(b) registered trademarks and service marks, applications to register
trademarks and service marks, intent-to-use applications, or other registrations
or applications related to trademarks and service marks; (c) registered
copyrights and applications for copyright registration; (d) domain name
registrations; and (e) any other Intellectual Property that is the subject
of an application, certificate, filing, registration or other document issued,
filed with, or recorded with any Governmental Entity.

     

     “SEC” means the
Securities and Exchange Commission.

     

    “Securities Act” means
the Securities Act of 1933, as amended.

     

    “Supplier” means any
supplier of goods or services to the Company to which the Company paid in the
aggregate more than $25,000 during the twelve (12)-month period ended December
31, 2007.

     

     “Taxes” means all
taxes, assessments, charges, duties, fees, levies and other charges of a
Governmental Entity, including income, franchise, capital stock, real property,
personal property, tangible, withholding, employment, payroll, social security,
social contribution, unemployment compensation, disability, transfer, sales,
use, excise, gross receipts, value-added and all other taxes of any kind for
which the Company or the Purchaser may have any liability imposed by any
Governmental Entity, whether disputed or not, and any related charges, interest
or penalties imposed by any Governmental Entity.

     

    “Tax Return” means any
report, return, declaration or other information, in whatever form or medium,
required to be supplied to a Governmental Entity in connection with Taxes,
including estimated returns and reports of every kind with respect to
Taxes.

     

    “Termination Date”
means the date prior to the Closing when this Agreement is terminated in
accordance with Article IX.

     

    Section
1.2 Accounting
Terms.  All accounting terms not specifically defined herein
shall be construed in accordance with GAAP.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
II

    PURCHASE
AND SALE

     

    Section
2.1 Agreement to Purchase and
Sell.  Subject to the terms and conditions hereof, at the
Closing, the Company shall sell, assign, transfer and deliver to the Purchaser,
and the Purchaser shall purchase and acquire from the Company, all right, title
and interest of in and to the Preferred Stock, free and clear of all
Liens.

     

    ARTICLE
III

    PURCHASE
PRICE; ADJUSTMENTS

     

    Section
3.1 Purchase
Price.  The aggregate amount to be paid for the Preferred
Stock  shall be One Million and Four Hundred Forty-four Thousand and
Four Hundred and Forty-four Dollars ($1,444,444) (the “Purchase
Price”).

     

    Section
3.2 Payment of Purchase Price
and Delivery of the Preferred Stock.

     

    (a) On the
Closing Date, the Purchaser shall pay the Purchase Price to the
Company.

     

    (b) All
payments required under this Section 3.2 or any other provision hereof shall be
made in cash by wire transfer of next day available funds to such bank account
as shall be designated in writing by Seller, or as otherwise agreed by the
Parties.

     

    (c) On the
Closing Date the Company shall deliver certificates representing the Preferred
Stock to the Purchaser together with such instruments as are customary for the
lawful and proper negotiation of the same.

    

     

    Section
3.3 Funding Fee and
Warrants.

     

    (a) The
Company agrees to pay the Purchaser a Funding Fee equal to ten percent (10%) of
the Purchase Price, or One Hundred Forty-four Thousand and Four Hundred and
Forty-four Dollars ($144,444).  The Funding Fee shall be deducted from
the Purchase Price and the Company hereby authorizes payment of the Funding Fee
to the Purchaser from the proceeds of the sale of the Preferred
Stock.

     

    (b) The
Company agrees to issue to the Purchaser a warrant granting the Purchaser the
right to purchase at the Warrant Exercise Price that number of Class A Common
Stock shares of the Company calculated by dividing the Funding Fee amount, One
Hundred Forty-four Thousand and Four Hundred and Forty-four Dollars ($144,444)
by the lowest price that the Company had ever issued its Class A Common Stock
(the “Warrant Exercise Price”).  A separate Warrant Agreement shall be
executed by the Company.

     

    ARTICLE
IV

    REPRESENTATIONS
AND WARRANTIES OF

    THE COMPANY

     

    The
Company represents and warrants to the Purchaser as follows as of the date
hereof and the Closing Date:

     

    Section
4.1 Organization.  The
Company is a corporation duly formed and validly existing under the Laws of the
State of New Jersey and has all requisite power and authority to own, lease and
operate its properties and to carry on its business as now being
conducted.  The Company is duly qualified or registered as a foreign
corporation to transact business under the Laws of each jurisdiction where the
character of its activities or the location of the properties owned or leased by
it requires such qualification or registration as set forth on Schedule
4.1..

     

    Section
4.2 Authorization.  At
the Closing Date the Company will have full corporate power and authority to
execute and deliver this Agreement and the Company Ancillary Documents and to
perform its obligations hereunder and thereunder and to consummate the
transactions contemplated hereby and thereby.  The execution and
delivery of this Agreement and the Company Ancillary Documents by the Company
and the performance by the Company of its obligations hereunder and thereunder
and the consummation of the transactions provided for herein and therein at the
Closing Date, will have been duly and validly authorized by all necessary
corporate action on the part of the Company.  This Agreement and the
Company Ancillary Documents shall be as of the Closing Date, duly executed and
delivered by the Company and do or shall, as the case may be, constitute the
valid and binding agreements of the Company, enforceable against the Company in
accordance with their respective terms.

     

    Section
4.3 Financial
Statements.  Schedule 4.3 contains
the audited financial statements for the fiscal year ended December 31, 2006 and
the unaudited balance sheet as of September 30, 2007.  The financial
statements and balance sheet are in conformity with GAAP and have been prepared
from, and are in accordance with, the books and records of the Company, which
books and records have been maintained on a basis consistent with the past
practice of the Company.  The balance sheet fairly presents the
financial position of the Company as of the date of such balance
sheet.  Since December 31, 2006, there has been no change in any
accounting (or tax accounting) policy, practice or procedure of the
Company.  The Company maintains accurate books and records reflecting
its assets and liabilities and maintains proper and adequate internal accounting
controls which provide assurance that (i) transactions are executed in
accordance with management’s authorization, (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with GAAP,
and (iii) accounts, notes and other receivables and inventory are recorded
accurately, and proper and adequate procedures are implemented to effect the
collection thereof on a current and timely basis.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    ARTICLE
V 

    REPRESENTATIONS
AND WARRANTIES OF PURCHASER

     

    The
Purchaser hereby represents and warrants to the Company as follows:

     

    Section
5.1 Organization.  The
Purchaser is a corporation duly organized, validly existing and in good standing
under the laws of the State of New Jersey and has all requisite corporate power
and authority to own, lease and operate its properties and to carry on its
business as now being conducted. 

     

    Section
5.2 Authorization.  The
Purchaser has full corporate power and authority to execute and deliver this
Agreement and the Purchaser Ancillary Documents, to perform its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby
and thereby.  The execution and delivery of this Agreement and the
Purchaser Ancillary Documents by the Purchaser, the performance by the Purchaser
of its obligations hereunder and thereunder, and the consummation of the
transactions provided for herein and therein have been duly and validly
authorized by all necessary corporate action on the part of the
Purchaser.  This Agreement has been and, as of the Closing Date, the
Purchaser Ancillary Documents shall be, duly executed and delivered by the
Purchaser and do or shall, as the case may be, constitute the valid and binding
agreements of the Purchaser, enforceable against the Purchaser in accordance
with their respective terms.

     

    Section
5.3 Absence of Restrictions and
Conflicts.  The execution, delivery and performance of this
Agreement and the Purchaser Ancillary Documents, the consummation of the
transactions contemplated hereby and thereby and the fulfillment of, and
compliance with, the terms and conditions hereof and thereof do not or shall not
(as the case may be), with the passing of time or the giving of notice or both,
(a) contravene or conflict with any term or provision of the charter
documents of the Purchaser, (b) violate or conflict with, constitute a
breach of or default under, result in the loss of any benefit under, permit the
acceleration of any obligation under or create in any party the right to
terminate, modify or cancel any Contract to which the Purchaser is a party,
(c) contravene or conflict with any judgment, decree or order of any
Governmental Entity to which the Purchaser is a party or by which the Purchaser
is bound or (d) contravene or conflict with any statute, Law, rule or
regulation applicable to the Purchaser.  No consent, approval, order
or authorization of, or registration, declaration or filing with, any
Governmental Entity is required with respect to the Purchaser in connection with
the execution, delivery or performance of this Agreement or the Purchaser
Ancillary Documents or the consummation of the transactions contemplated hereby
or thereby.

     

    ARTICLE
VI

    CERTAIN
COVENANTS AND AGREEMENTS

     

    Section
6.1 Conduct of Business by the
Company.  For the period commencing on the date hereof and
ending on the Closing Date, the  Company shall, except as expressly
required hereby and except as otherwise consented to in advance in writing by
the Purchaser, conduct the Business in the ordinary course consistent with past
practice and shall, except as expressly required hereby and except as otherwise
consented to in advance in writing by the Purchaser:

     

    (a) use its
commercially reasonable efforts to preserve intact the goodwill and business
organization of the Company, keep the officers and employees of the Company
available to the Purchaser and preserve the relationships and goodwill of the
Company with customers, distributors, suppliers, employees and other Persons
having business relations with the Company;

     

    (b) maintain
its existence and good standing in its jurisdiction of organization and in each
jurisdiction listed on Schedule
4.1;

     

    (c) comply
with all applicable Laws;

     

    (d) maintain
in existing condition and repair (ordinary wear and tear excepted), consistent
with past practices, all buildings, offices, shops and other structures located
on the Real Property, and all equipment, fixtures and other tangible personal
property located on the Real Property;

     

    (e) not
authorize for issuance or issue and deliver any additional shares of its capital
stock or securities convertible into or exchangeable for shares of its capital
stock, or issue or grant any right, option or other commitment for the issuance
of shares of its capital stock or of such securities, or split, combine or
reclassify any shares of its capital stock;

     

    (f) not amend
or modify its articles of incorporation or bylaws;

     

    (g) not
declare any dividend, pay or set aside for payment any dividend or other
distribution or make any payment to any shareholder, officer or director or any
Person with whom any such shareholder, officer or director has any direct or
indirect relation, other than the payment of salaries in the ordinary course of
business and consistent with past practice;

     

    (h) not
create any subsidiary, acquire any capital stock or other equity securities of
any corporation or acquire any equity or ownership interest in any business or
entity;

     

    (i) protect,
defend and maintain the ownership, validity and registration of the Company
Intellectual Property, and not allow any of the Registered Intellectual Property
to be abandoned, forfeited, cancelled, expunged and/or dedicated to the
public;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (j) not (i)
create, incur or assume any indebtedness, (ii) grant, create, incur or suffer to
exist any Lien on the Assets that did not exist on the date hereof, (iii)
write-down the value of any asset or investment on the books or records of the
Company, except for depreciation and amortization in the ordinary course of
business and consistent with past practice, (iv) cancel any debt or waive any
claim or right, (v) make any commitment for any capital expenditure to be made
on or following the date hereof in excess of $10,000 in the case of any single
expenditure or $20,000 in the case of all capital expenditures, (vi) enter into
any Contract which cannot be cancelled by the Company on notice of not longer
than thirty (30) days and without liability or penalty of any kind, (vii)enter
into any Contract which imposes, or purports to impose, any obligations or
restrictions on any of its Affiliates, or (viii) settle or compromise any legal
proceedings related to or in connection with the Business;

     

    (k) not (i)
increase in any manner the compensation of, or enter into any new bonus or
incentive agreement or arrangement with, any of its employees, officers,
directors or consultants, (ii) pay or agree to pay any additional pension,
retirement allowance or other employee benefit under any Company Benefit Plan to
any of its employees or consultants, whether past or present, except, in each
case,  in the ordinary course of business to the extent consistent
with past practice of the Company; provided, however, that the Company shall not
take any action described in this Section 6.1(k) with respect to (i) any
manager, officer or director of the Company or (ii) any Person whose annualized
compensation is $60,000 or more or whose annual compensation for the twelve
(12)-month period following the Expiration Date is expected to be $60,000 or
more;

     

    (l) except as
required by Applicable Benefit Laws, not adopt, amend or terminate any Company
Benefit Plan or increase the benefits provided under any Company Benefit Plan,
or promise or commit to undertake any of the foregoing in the
future;

     

    (m) not enter
into a collective bargaining agreement;

     

    (n) not enter
into any Employment Agreement;

     

    (o) perform
in all material respects all of its obligations under all Company Contracts and
Licenses, and not default or suffer to exist any event or condition that with
notice or lapse of time or both could constitute a default under any Company
Contract or License (except those being contested in good faith);

     

    (p) not
increase any reserves for contingent liabilities (excluding any adjustment to
bad debt reserves in the ordinary course of business consistent with past
practice);

     

    (q) maintain
in full force and effect and in the same amounts policies of insurance
comparable in amount and scope of coverage to that maintained as of the date
hereof by or on behalf of the Company;

     

    (r) continue
to maintain its books and records in accordance with GAAP consistently applied
and on a basis consistent with past practice and not make any change in any
accounting (or tax accounting) policy, practice or procedure of the
Company;

     

    (s) continue
its current cash and inventory management practices; and

     

    (t) not
authorize, or commit or agree to take, any of the foregoing actions, which the
Company is required not to take without the Purchaser’s prior written
consent.

     

    Section
6.2 Inspection and Access to
Information.  During the period commencing on the date hereof
and ending on the Closing Date, the Company shall (and shall cause its officers,
directors, employees, auditors and agents to) provide the Purchaser and its
accountants, investment bankers, counsel, environmental consultants and other
authorized representatives full access, during reasonable hours and under
reasonable circumstances, to any and all of its premises, employees (including
executive officers), properties, contracts, commitments, books, records and
other information (including Tax Returns filed and those in preparation) and
shall cause its officers to furnish to the Purchaser and its authorized
representatives, promptly upon request therefor, any and all financial,
technical and operating data and other information pertaining to the Company and
the Business and otherwise fully cooperate with the conduct of due diligence by
the Purchaser and its representatives.

     

    Section
6.3 Notices of Certain
Events.  The Company shall promptly notify the Purchaser
of:

     

    (a) any fact,
condition, change or event that, individually or in the aggregate, has had or
could reasonably be expected to have a Material Adverse Effect or otherwise
results in any representation or warranty of the Company hereunder being
inaccurate in any respect as of the date of such fact, condition, change or
event had such representation or warranty been made as of such
date;

     

    (b) any fact,
condition, change or event that causes or constitutes a breach of any of the
representations or warranties of the Company hereunder made as of the date
hereof;

     

    (c) any
notice or other communication from any Person alleging that the consent of such
Person is or may be required in connection with the transactions contemplated
hereby;

     

    (d) any
notice or other communication from or to any Governmental Entity in connection
with the transactions contemplated hereby;

     

    (e) any
action, suit, claim, investigation or proceeding commenced or, to its Knowledge,
threatened against, relating to or involving or otherwise affecting the Company
or the Business or that relate to the consummation of the transactions
contemplated hereby; and

     

    (f) (i) the
damage or destruction by fire or other casualty of any material Asset or part
thereof or (ii) any material Asset or part thereof becoming the subject of any
proceeding (or, to the Knowledge of the Company, threatened proceeding) for the
taking thereof or of any right relating thereto by condemnation, eminent domain
or other similar governmental action.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
Company hereby acknowledges that the Purchaser does not and shall not waive any
right it may have hereunder solely as a result of such notifications and any
notification given pursuant to this Section.

     

    Section
6.4 Reasonable Efforts; Further
Assurances; Cooperation.  Subject to the other provisions
hereof, each Party shall each use its reasonable, good faith efforts to perform
its obligations hereunder and to take, or cause to be taken, and do, or cause to
be done, all things necessary, proper or advisable under applicable Law to cause
the transactions contemplated herein to be effected as soon as practicable, but
in any event on or prior to the Expiration Date, in accordance with the terms
hereof and shall cooperate fully with each other Party and its officers,
directors, employees, agents, counsel, accountants and other designees in
connection with any step required to be taken as a part of its obligations
hereunder, including the following:

     

    (a) Each
Party shall promptly make its filings and submissions and shall take all actions
necessary, proper or advisable under applicable Laws to obtain any required
approval of any Governmental Entity with jurisdiction over the transactions
contemplated hereby (except that the Purchaser shall have no obligation to take
or consent to the taking of any action required by any such Governmental Entity
that could adversely affect the Business, the Assets or the transactions
contemplated by this Agreement or the Purchaser Ancillary
Documents).  The Company shall furnish to the Purchaser all
information required for any application or other filing to be made by the
Company pursuant to any applicable Law in connection with the transactions
contemplated hereby;

     

    (b) Each
Party shall promptly notify the other Parties of (and provide written copies of)
any communications from or with any Governmental Entity in connection with the
transactions contemplated hereby;

     

    (c) In the
event any claim, action, suit, investigation or other proceeding by any
Governmental Entity or other Person is commenced that questions the validity or
legality of the transactions contemplated hereby or seeks damages in connection
therewith, the Parties shall (i) cooperate and use all reasonable efforts to
defend against such claim, action, suit, investigation or other proceeding, (ii)
in the event an injunction or other order is issued in any such action, suit or
other proceeding, use all reasonable efforts to have such injunction or other
order lifted, and (iii) cooperate reasonably regarding any other impediment to
the consummation of the transactions contemplated hereby; and

     

    (d) The
Company shall give all notices to third parties and use its best efforts (in
consultation with the Purchaser) to obtain all third-party consents
(i) necessary, proper or advisable to consummate the transactions
contemplated hereby, (ii) required to be given or obtained, including the
Required Consents or (iii) required to prevent a Material Adverse Effect,
whether prior to, on or following the Closing Date.

     

    Section
6.5 Transfer Taxes;
Expenses.  Any Taxes or recording fees payable as a result of
the purchase and sale of the Shares or any other action contemplated hereby
(other than any federal, state, local or foreign Taxes measured by or based upon
income or gains imposed upon the Purchaser) shall be paid by the
Purchaser.  The Parties shall cooperate in the preparation, execution
and filing of all returns, questionnaires, applications and other documents
regarding Taxes and all transfer, recording, registration and other fees that
become payable in connection with the transactions contemplated hereby that are
required or permitted to be filed at or prior to the
Closing.  

     

    ARTICLE
VII

    CONDITIONS
TO CLOSING

     

    Section
7.1 Conditions to Obligations of
the Purchaser.  The obligations of the Purchaser to consummate
the transactions contemplated hereby shall be subject to the
fulfillment  (or waiver by the Purchaser) at or prior to the Closing
of each of the following additional conditions:

     

    (a) Injunction. There
shall be no effective injunction, writ or preliminary restraining order or any
order of any nature issued or Law passed by a Governmental Entity of competent
jurisdiction to the effect that the transactions contemplated hereby may not be
consummated as provided herein, no proceeding or lawsuit shall have been
commenced by any Governmental Entity for the purpose of obtaining any such
injunction, writ or preliminary restraining order and no written notice shall
have been received from any Governmental Entity indicating an intent to
restrain, prevent, materially delay or restructure the transactions contemplated
hereby, in each case where the Closing would (or would be reasonably likely to)
result in a material fine or penalty payable by the Purchaser or the Company or
a material restriction on the operation of the Business as a result of such
matter.

     

    (b) Consents. All
Required Consents shall have been obtained or made on terms and conditions
reasonably satisfactory to the Purchaser.

     

    (c) Representations and
Warranties.  Each of the representations and warranties of the
Company set forth in Article IV shall have been true and correct in all material
respects as of the date hereof and shall be true and correct in all material
respects as of the Closing Date as though made on and as of the Closing Date,
except that those representations and warranties that by their terms are
qualified by materiality shall be true and correct in all respects.

     

    (d) Performance of Obligations
of the Company.  The Company shall have performed in all
material respects all covenants and agreements required to be performed by each
of them hereunder at or prior to the Closing.

     

    (e) No Material Adverse
Effect.  Between the date hereof and the Closing Date, there
shall not have occurred (nor shall the Purchaser have become aware of) any
Material Adverse Effect or any development reasonably likely to result in a
Material Adverse Effect.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
7.2 Conditions to Obligations of
the Company.  The obligations of the Company to consummate the
transactions contemplated hereby shall be subject to the fulfillment (or waiver
by the Company) at or prior to the Closing of each of the following additional
conditions:

     

    (a) Injunction.  There
shall be no effective injunction, writ or preliminary restraining order or any
order of any nature issued by a Governmental Entity of competent jurisdiction to
the effect that the Acquisition may not be consummated as provided herein, no
proceeding or lawsuit shall have been commenced by any Governmental Entity for
the purpose of obtaining any such injunction, writ or preliminary restraining
order and no written notice shall have been received from any Governmental
Entity indicating an intent to restrain, prevent, materially delay or
restructure the transactions contemplated hereby, in each case where the Closing
would (or would be reasonably likely to) result in a material fine or penalty
payable by the Company or a material restriction on the Company’s operations as
a result of such matter.

     

    (b) Consents.  All
consents, approvals, orders or authorizations of, or registrations, declarations
or filings with, any Governmental Entity required in connection with the
execution, delivery or performance hereof shall have been obtained or made on
terms and conditions reasonably satisfactory to the Company.

     

    (c) Representations and
Warranties.  Each of the representations and warranties of the
Purchaser set forth in Article V shall have been true and correct in all
material respects as of the date hereof and shall be true and correct in all
material respects as of the Closing Date as though made on and as of the Closing
Date, except that those representations and warranties that by their terms are
qualified by materiality shall be true and correct in all respects.

     

    (d) Performance of Obligations
by the Purchaser.  The Purchaser shall have performed all
covenants and agreements required to be per­formed by it hereunder on or
prior to the Closing Date.

     

    (e) Ancillary
Documents.  The Purchaser shall have delivered, or caused to be
delivered, to the Company the documents listed in Section 8.2.

     

    ARTICLE
VIII

    CLOSING

     

    Section
8.1         
     Closing.  Subject
to the satisfaction or waiver of the conditions set forth in Article VII, the
Closing shall occur on March 12, 2008 or such other date as the Parties may
agree.  The Closing shall take place at the offices of Company’s
offices located at 750 Route 34, Matawan, NJ  07747, or at such other
place as the Parties may agree.

     

    

    Section
8.2  
             Company Closing
Deliveries.  At the Closing, the Company, as applicable, shall
deliver to the Purchaser the following:

     

    (a) a
certificate executed by the Company as to compliance with the conditions set
forth in Section 7.1(b), (c), and (d) hereof;

     

    (b) certificates
representing the Preferred Stock, duly endorsed in blank or accompanied by duly
executed stock powers or other assignment documents;

     

    (c) a
certificate by the Secretary or any Assistant Secretary of the Company, dated
the Closing Date, as to (1) the good standing of the Company in its jurisdiction
of incorporation and in each other jurisdiction where it is qualified to do
business, (2) no amendments to the Company’s charter documents and (3) the
effectiveness of the resolutions of the board of directors of the Company
authorizing the execution, delivery and performance hereof by the Company passed
in connection herewith and the transactions contemplated hereby;
and

     

    (d) all other
documents required to be entered into by the Company pursuant hereto or
reasonably requested by the Purchaser to convey the Preferred Stock to the
Purchaser or to otherwise consummate the transactions contemplated
hereby.

     

    (e) a Warrant
Agreement executed by the Company in favor of the Purchaser.

     

    (f) a
Security Agreement executed by the Company in favor of the
Purchaser.

     

    Section
8.3                
                Purchaser Closing
Deliveries.  On the Closing, the Purchaser shall have
delivered, or caused to be delivered, to the Company the following:

     

    (a) the
Purchase Price to be paid at Closing in accordance with such Section
3.1;

     

    (b) a
certificate of an authorized officer as to compliance with the conditions set
forth in Section 7.2(c) and (d);

     

    (c) a
Security Agreement executed by the Purchaser.

     

    (d) all other
documents required to be entered into or delivered by the Purchaser at or prior
to the Closing pursuant hereto or reasonably requested by the Company to convey
the Preferred Stock to the Purchaser or to otherwise consummate the transactions
contemplated hereby.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    ARTICLE
IX

    TERMINATION

     

    Section
9.1 Termination.  This
Agreement may be terminated:

     

    (a) in
writing by mutual consent of the Purchaser and the Company;

     

    (b) by
written notice from the Company to the Purchaser, in the event the Purchaser (i)
fails to perform in any material respect any of its agreements contained herein
required to be performed by it at or prior to the Closing or (ii) materially
breaches any of its representations and warranties contained herein, which
failure or breach is not cured within ten (10) days following the Company having
notified the Purchaser of its intent to terminate this Agreement pursuant to
this Section 9.1(b);

     

    (c) by
written notice from the Purchaser to the Company, in the event the Company (i)
fails to perform in any material respect any of their agreements contained
herein required to be performed by it at or prior to the Closing or (ii)
materially breaches any of their representations and warranties contained
herein, which failure or breach is not cured within ten (10) days following the
Purchaser having notified the Company of its intent to terminate this Agreement
pursuant to this Section 9.1(c);

     

    Section
9.2 Specific Performance and
Other Remedies.  Each Party hereby acknowledges that the rights
of each Party to consummate the transactions contemplated hereby are special,
unique and of extraordinary character and that, in the event that any Party
violates or fails or refuses to perform any covenant or agreement made by it
herein, the non-breaching Party may be without an adequate remedy at
law.  In the event that any Party violates or fails or refuses to
perform any covenant or agreement made by such Party herein, the non-breaching
Party or Parties may, subject to the terms hereof and in addition to any remedy
at law for damages or other relief, institute and prosecute an action in any
court of competent jurisdiction to enforce specific performance of such covenant
or agreement or seek any other equitable relief.

     

    ARTICLE
X

    MISCELLANEOUS
PROVISIONS

     

    Section
10.1 Notices.  All
notices, communications and deliveries required or made hereunder must be made
in writing signed by or on behalf of the Party making the same, shall specify
the Section hereunder pursuant to which it is given or being made, and shall be
delivered personally or by telecopy transmission or by a national overnight
courier service or by registered or certified mail (return receipt requested)
(with postage and other fees prepaid) as follows:

     

    To the
Purchaser:               iVoice,
Inc.

                                 
750 Route 34

                                 
Matawan,
NJ  07747

                                 
Attn:  Jerome
Mahoney

                                 
Facsimile
No.:   732-441-9895

    

    To the
Company                iVoice
Technology, Inc.

                                                 
750
Route 34 

                                                 
Matawan,
NJ  07747 

                                                 
Attn:  Jerome
Mahoney 

                                                 
Facsimile
No.:   732-441-9895

     

    with a
copy
to:                    Meritz
& Muenz LLP

                                                 
2021 O
Street, NW

                                                 
Washington,
D.C.  20036 

                                                 
Attn:   Lawrence
A. Muenz, Esq. 

                                                 
Facsimile
No.:   202-728-2910

    

    or to
such other representative or at such other address of a party as such party may
furnish to the other parties in writing.  Any such notice,
communication or delivery shall be deemed given or made (a) on the date of
delivery, if delivered in person, (b) upon transmission by facsimile if receipt
is confirmed by telephone, (c) upon receipt by the addressee by delivery via a
national overnight courier service or (d) on the fifth (5th) Business Day
following it being mailed by registered or certified mail.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
10.2 Schedules and
Exhibits.  The Schedules and Exhibits are hereby
incorporated into this Agreement and are hereby made a part hereof as if set out
in full herein.

     

    Section
10.3 Assignment; Successors in
Interest.  No assignment or transfer by any Party of such
Party’s rights and obligations hereunder shall be made except with the prior
written consent of the other Parties; provided that the Purchaser shall, without
the obligation to obtain the prior written consent of any other Party, be
entitled to assign this Agreement or all or any part of its rights or
obligations hereunder to one or more Affiliates of the
Purchaser.  This Agreement shall be binding upon and shall inure to
the benefit of the Parties and their respective successors and permitted
assigns, and any reference to a Party shall also be a reference to the
successors and permitted assigns thereof.

     

    Section
10.4 Captions.  The
titles, captions and table of contents contained herein are inserted herein only
as a matter of convenience and for reference and in no way define, limit, extend
or describe the scope of this Agreement or the intent of any provision
hereof.  

     

    Section
10.5 Controlling
Law.  This Agreement shall be governed by and construed and
enforced in accordance with the internal Laws of the State of New York without
reference to its choice of law rules.

     

    Section
10.6 Severability.  Any
provision hereof that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such pro­hibition
or unenforceability without invalidating the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other
jurisdiction.  To the extent permitted by Law, each Party hereby
waives any provision of law that renders any such provision prohibited or
unenforceable in any respect.

     

    Section
10.7 Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, and it shall not be necessary in making proof of this
Agreement or the terms hereof to produce or account for more than one of such
counterparts.

     

    Section
10.8 Enforcement of Certain
Rights.  Nothing expressed or implied herein is intended, or
shall be construed, to confer upon or give any Person other than the Parties,
and their successors or permitted assigns, any right, remedy, obligation or
liability under or by reason of this Agreement, or result in such Person being
deemed a third-party beneficiary hereof.

     

    Section
10.9 Waiver;
Amendment.  Any agreement on the part of a Party to any
extension or waiver of any provision hereof shall be valid only if set forth in
an instrument in writing signed on behalf of such Party.  A waiver by
a Party of the performance of any covenant, agreement, obligation, condition,
representation or warranty shall not be construed as a waiver of any other
covenant, agreement, obligation, condition, representation or
warranty.  A waiver by any Party of the performance of any act shall
not constitute a waiver of the performance of any other act or an identical act
required to be performed at a later time.  This Agreement may not be
amended, modified or supplemented except by written agreement of the
Parties.

     

    Section
10.10            Integration.  This
Agreement and the documents executed pursuant hereto supersede all negotiations,
agreements and understandings among the Parties with respect to the subject
matter hereof and constitute the entire agreement among the Parties with respect
thereto.

     

    Section
10.11            Interpretation.  Where
the context requires, the use of a pronoun of one gender or the neuter is to be
deemed to include a pronoun of the appropriate gender.  References
herein to any Law shall be deemed to refer to such Law, as amended from time to
time, and all rules and regulations promulgated thereunder.

     

    Section
10.12            Cooperation Following the
Closing.  Following the Closing, each Party shall deliver to
the other Parties such further information and documents and shall execute and
deliver to the other Parties such further instruments and agreements as any
other Party shall reasonably request to consummate or confirm the transactions
provided for herein, to accomplish the purpose hereof or to assure to any other
Party the benefits hereof.

     

    Section
10.13            Transaction
Costs.  Except as provided above or as otherwise expressly
provided herein, the Parties shall pay their own fees, costs and expenses
incurred in connection herewith and the transactions contemplated hereby,
including the fees, cost and expenses of its financial advisors, accountants and
counsel.

     

    IN
WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed, as
of the date first above written.

     

    iVoice
Technology, Inc.

    

    By:_____________________________                                                                           

    Name:                                                                      

    Title:                                                                      

    

    

    iVoice,
Inc.

    

    

    By:______________________________                                                                           

    Name:                                                                      

    Title:                                                                      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Schedule
4.1

    

    State of
New Jerseyex10-23.htm

Exhibit 10.23

    

     

    SECURITY
AGREEMENT

     

    THIS SECURITY AGREEMENT (the
“Agreement”), is entered into and made
effective as of March 11, 2008, by and between iVoice Technology, Inc., a New Jersey Corporation,
with its principal office at 750 Route 34, Matawan, NJ, 07747 (the “Company”), and
iVoice, Inc., a New Jersey corporation, with its principal office at 750 Route
34, Matawan, NJ, 07747 (the “Secured
Party”).

     

    

    WHEREAS, the Company sold and
the Secured Party purchased 1,444.44 shares of iVoice Technology, Inc. Series A
10% Secured Convertible Preferred Stock (the “Preferred Stock”) on the date
hereof;

    

    

    NOW, THEREFORE, in
consideration of the premises and the mutual covenants herein contained, and for
other good and valuable consideration, the adequacy and receipt of which are
hereby acknowledged, the parties hereto hereby agree as follows:

     

    ARTICLE
1.

     

    DEFINITIONS AND
INTERPRETATIONS

     

    
      	
              Section
      1.1.

            	
              Recitals.

            

    

     

    The above
recitals are true and correct and are incorporated herein, in their entirety, by
this reference.

     

    
      	
              Section
      1.2.

            	
              Interpretations.

            

    

     

    Nothing
herein expressed or implied is intended or shall be construed to confer upon any
person other than the Secured Party any right, remedy or claim under or by
reason hereof.

     

    
      	
              Section
      1.3.

            	
              Obligations
      Secured.

            

    

     

    In
exchange and the consideration for the Secured Party purchasing the Preferred
Stock dated the date hereof, the Company hereby agrees to permit the Secured
Party to secure the obligations pursuant to this Security Agreement and the
Preferred Stock issued the date hereof and any other amounts now or hereafter
owed to the Secured Party by the Company thereunder or hereunder, (collectively,
the “Obligations”).

     

    ARTICLE
2.

     

    PLEDGED PROPERTY,
ADMINISTRATION OF COLLATERAL

    AND TERMINATION OF SECURITY
INTEREST

     

    
      	
              Section
      2.1.

            	
              Pledged
      Property.

            

    

     

    (a)           Company
hereby pledges to the Secured Party, and creates in the Secured Party for its
benefit, a security interest in and to all of the property of the Company as set
forth in Exhibit
A attached hereto and the products thereof and the proceeds of all such
items (collectively, the “Pledged Property”)
for such time until the Obligations are paid in full.

     

    (b)           Simultaneously
with the execution and delivery of this Agreement, the Company shall make,
execute, acknowledge, file, record and deliver to the Secured Party any
documents reasonably requested by the Secured Party to perfect its security
interest in the Pledged Property.  Simultaneously with the execution
and delivery of this Agreement, the Company shall make, execute, acknowledge and
deliver to the Secured Party such documents and instruments, including, without
limitation, financing statements, certificates, affidavits and forms as may, in
the Secured Party’s reasonable judgment, be necessary to effectuate, complete or
perfect, or to continue and preserve, the security interest of the Secured Party
in the Pledged Property, and the Secured Party shall hold such documents and
instruments as secured party, subject to the terms and conditions contained
herein.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              Section
      2.2.

            	
              Rights; Interests;
      Etc.

            

    

     

    (a)           So
long as no Event of Default (as hereinafter defined) shall have occurred
and be continuing:

     

    (i)           the
Company shall be entitled to exercise any and all rights pertaining to the
Pledged Property or any part thereof for any purpose not inconsistent with the
terms hereof; and

     

    (ii)           the
Company shall be entitled to receive and retain any and all payments paid or
made in respect of the Pledged Property.

     

    (b)           Upon
the occurrence and during the continuance of an Event of Default:

     

    (i)           All
rights of the Company to exercise the rights which it would otherwise be
entitled to exercise pursuant to Section 2.2(a)(i) hereof and to
receive payments which it would otherwise be authorized to receive and retain
pursuant to Section 2.2(a)(ii) hereof shall be suspended, and all such
rights shall thereupon become vested in the Secured Party who shall thereupon
have the sole right to exercise such rights and to receive and hold as Pledged
Property such payments; provided, however, that if
the Secured Party shall become entitled and shall elect to exercise its right to
realize on the Pledged Property pursuant to Article 5 hereof, then all cash
sums received by the Secured Party, or held by Company for the benefit of the
Secured Party and paid over pursuant to Section 2.2(b)(ii) hereof,
shall be applied against any outstanding Obligations;

     

    (ii)           All
interest, dividends, income and other payments and distributions which are
received by the Company contrary to the provisions of
Section 2.2(b)(i) hereof shall be received in trust for the benefit of
the Secured Party, shall be segregated from other property of the Company and
shall be forthwith paid over to the Secured Party; and

     

    (iii)           The
Secured Party in its sole discretion shall be authorized to sell any or all of
the Pledged Property at public or private sale in order to recoup all of the
outstanding principal plus accrued interest owed pursuant to the Debenture as
described herein

     

    (c)           Each
of the following events shall constitute a default under this Agreement (each an
“Event of
Default”):

     

    (i)           any
default, whether in whole or in part, shall occur in the payment to the Secured
Party of principal, interest or other item comprising the Obligations as and
when due or with respect to any other debt or obligation of the Company to a
party other than the Secured Party;

     

    (ii)           the
Company shall:  (1) make a general assignment for the benefit of
its creditors; (2) apply for or consent to the appointment of a receiver,
trustee, assignee, custodian, sequestrator, liquidator or similar official for
itself or any of its assets and properties; (3) commence a voluntary case
for relief as a debtor under the United States Bankruptcy Code; (4) file
with or otherwise submit to any governmental authority any petition, answer or
other document seeking:  (A) reorganization, (B) an
arrangement with creditors or (C) to take advantage of any other present or
future applicable law respecting bankruptcy, reorganization, insolvency,
readjustment of debts, relief of debtors, dissolution or liquidation;
(5) file or otherwise submit any answer or other document admitting or
failing to contest the material allegations of a petition or other document
filed or otherwise submitted against it in any proceeding under any such
applicable law; or (6) be adjudicated a bankrupt or insolvent by a court of
competent jurisdiction; or

     

    (iii)           any
case, proceeding or other action shall be commenced against the Company for the
purpose of effecting, or an order, judgment or decree shall be entered by any
court of competent jurisdiction approving (in whole or in part) anything
specified in Section 2.2(c)(iii) hereof, or any receiver, trustee,
assignee, custodian, sequestrator, liquidator or other official shall be
appointed with respect to the Company, or shall be appointed to take or shall
otherwise acquire possession or control of all or a substantial part of the
assets and properties of the Company, and any of the foregoing shall continue
unstayed and in effect for any period of thirty (30) days.

     

    ARTICLE
3.

     

    ATTORNEY-IN-FACT;
PERFORMANCE

     

    
      	
              Section
      3.1.

            	
              Secured Party
      Appointed Attorney-In-Fact.

            

    

     

    Upon the
occurrence of an Event of Default, the Company hereby appoints the Secured Party
as its attorney-in-fact, with full authority in the place and stead of the
Company and in the name of the Company or otherwise, from time to time in the
Secured Party’s discretion to take any action and to execute any instrument
which the Secured Party may reasonably deem necessary to accomplish the purposes
of this Agreement, including, without limitation, to receive and collect all
instruments made payable to the Company representing any payments in respect of
the Pledged Property or any part thereof and to give full discharge for the
same.  The Secured Party may demand, collect, acknowledge, receipt
for, settle, compromise, adjust, sue for, foreclose, or realize on the Pledged
Property as and when the Secured Party may determine.  To facilitate
collection, upon the occurrence of an Event of Default, the Secured Party may
notify account debtors and obligors on any Pledged Property to make payments
directly to the Secured Party.

     

    
      	
              Section
      3.2.

            	
              Secured Party May
      Perform.

            

    

     

    If the
Company fails to perform any agreement contained herein, the Secured Party, at
its option, may itself perform, or cause performance of, such agreement, and the
expenses of the Secured Party incurred in connection therewith shall be included
in the Obligations secured hereby.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
4.

     

    REPRESENTATIONS AND
WARRANTIES

     

    
      	
              Section
      4.1.

            	
              Authorization;
      Enforceability.

            

    

     

    Each of
the parties hereto represents and warrants that it has taken all action
necessary to authorize the execution, delivery and performance of this Agreement
and the transactions contemplated hereby; and upon execution and delivery, this
Agreement shall constitute a valid and binding obligation of the respective
party, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws affecting creditors’ rights or by the principles governing the
availability of equitable remedies.

     

    
      	
              Section
      4.2.

            	
              Ownership of Pledged
      Property.

            

    

     

    The
Company warrants and represents that it is the legal and beneficial owner of the
Pledged Property.

     

    ARTICLE
5.

     

    DEFAULT; REMEDIES;
SUBSTITUTE COLLATERAL

     

    
      	
              Section
      5.1.

            	
              Default and
      Remedies.

            

    

     

    (a)           If
an Event of Default described in Section 2.2(c)(i) and
(ii) occurs, then in each such case the Secured Party may declare the
Obligations to be due and payable immediately, by a notice in writing to the
Company, and upon any such declaration, the Obligations shall become immediately
due and payable.  If an Event of Default described in
Sections 2.2(c)(iii) or (iv) occurs and is continuing for the
period set forth therein, then the Obligations shall automatically become
immediately due and payable without declaration or other act on the part of the
Secured Party.

     

    (b)           Upon
the occurrence of an Event of Default, the Secured Party shall: (i) be
entitled to receive all distributions with respect to the Pledged Property,
(ii) to cause the Pledged Property to be transferred into the name of the
Secured Party or its nominee, (iii) to dispose of the Pledged Property, and
(iv) to realize upon any and all rights in the Pledged Property then held
by the Secured Party.

     

    
      	
              Section
      5.2.

            	
              Method of Realizing
      Upon the Pledged Property: Other
  Remedies.

            

    

     

    Upon the
occurrence of an Event of Default, in addition to any rights and remedies
available at law or in equity, the following provisions shall govern the Secured
Party’s right to realize upon the Pledged Property:

     

    (a)           Any
item of the Pledged Property may be sold for cash or other value in any number
of lots at brokers board, public auction or private sale and may be sold without
demand, advertisement or notice (except that the Secured Party shall give the
Company ten (10) days’ prior written notice of the time and place or
of the time after which a private sale may be made (the “Sale Notice”)), which
notice period is hereby agreed to be commercially reasonable.  At any
sale or sales of the Pledged Property, the Company may bid for and purchase the
whole or any part of the Pledged Property and, upon compliance with the terms of
such sale, may hold, exploit and dispose of the same without further
accountability to the Secured Party.  The Company will execute and
deliver, or cause to be executed and delivered, such instruments, documents,
assignments, waivers, certificates, and affidavits and supply or cause to be
supplied such further information and take such further action as the Secured
Party reasonably shall require in connection with any such sale.

     

    (b)           Any
cash being held by the Secured Party as Pledged Property and all cash proceeds
received by the Secured Party in respect of, sale of, collection from, or other
realization upon all or any part of the Pledged Property shall be applied as
follows:

     

    (i)           first,
to the payment of all amounts due the Secured Party for the expenses
reimbursable to it hereunder or owed to it pursuant to Section 8.3
hereof;

     

    (ii)           second,
to the payment of the Obligations then due and unpaid; and

     

    (iii)           the
balance, if any, to the person or persons entitled thereto, including, without
limitation, the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           In
addition to all of the rights and remedies which the Secured Party may have
pursuant to this Agreement, the Secured Party shall have all of the rights and
remedies provided by law, including, without limitation, those under the Uniform
Commercial Code.

     

    (i)           If
the Company fails to pay such amounts due upon the occurrence of an Event of
Default which is continuing, then the Secured Party may institute a judicial
proceeding for the collection of the sums so due and unpaid, may prosecute such
proceeding to judgment or final decree and may enforce the same against the
Company and collect the monies adjudged or decreed to be payable in the manner
provided by law out of the property of Company, wherever situated.

     

    (ii)           The
Company agrees that it shall be liable for any reasonable fees, expenses and
costs incurred by the Secured Party in connection with enforcement, collection
and preservation of the Security Agreement, including, without limitation,
reasonable legal fees and expenses, and such amounts shall be deemed included as
Obligations secured hereby and payable as set forth in Section 8.3
hereof.

     

    
      	
              Section
      5.3.

            	
              Proofs of
      Claim.

            

    

     

    In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relating to the Company or the property of the Company or of such
other obligor or its creditors, the Secured Party (irrespective of whether the
Obligations shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Secured Party shall have made any
demand on the Company for the payment of the Obligations) shall be entitled and
empowered, by intervention in such proceeding or otherwise:

     

    (i)           to
file and prove a claim for the whole amount of the Obligations and to file such
other papers or documents as may be necessary or advisable in order to have the
claims of the Secured Party (including any claim for the reasonable legal fees
and expenses and other expenses paid or incurred by the Secured Party permitted
hereunder and of the Secured Party allowed in such judicial proceeding),
and

     

    (ii)           to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by the Secured Party to make such payments to
the Secured Party and, in the event that the Secured Party shall consent to the
making of such payments directed to the Secured Party, to pay to the Secured
Party any amounts for expenses due it hereunder.

     

    
      	
              Section
      5.4.

            	
              Duties Regarding
      Pledged Property.

            

    

     

    The
Secured Party shall have no duty as to the collection or protection of the
Pledged Property or any income thereon or as to the preservation of any rights
pertaining thereto, beyond the safe custody and reasonable care of any of the
Pledged Property actually in the Secured Party’s possession.

     

    ARTICLE
6.

     

    AFFIRMATIVE
COVENANTS

     

    The
Company covenants and agrees that, from the date hereof and until the
Obligations have been fully paid and satisfied, unless the Secured Party shall
consent otherwise in writing (as provided in Section 8.4
hereof):

     

    
      	
              Section
      6.1.

            	
              Existence, Properties,
      Etc.

            

    

     

    (a)           The
Company shall do, or cause to be done, all things, or proceed with due diligence
with any actions or courses of action, that may be reasonably necessary
(i) to maintain Company’s due organization, valid existence and good
standing under the laws of its state of incorporation, and (ii) to preserve
and keep in full force and effect all qualifications, licenses and registrations
in those jurisdictions in which the failure to do so could have a Material
Adverse Effect (as defined below); and (b) the Company shall not do, or
cause to be done, any act impairing the Company’s corporate power or authority
(i) to carry on the Company’s business as now conducted, and (ii) to
execute or deliver this Agreement or any other document delivered in connection
herewith, including, without limitation, any UCC-1 Financing Statements required
by the Secured Party to which it is or will be a party, or perform any of
its obligations hereunder or thereunder.  For purpose of this
Agreement, the term “Material Adverse
Effect” shall mean any material and adverse effect as determined by
Secured Party in its sole good-faith discretion, whether individually or in the
aggregate, upon (a) the Company’s assets, business, operations, properties
or condition, financial or otherwise; (b) the Company’s ability to make
payment as and when due of all or any part of the Obligations; or (c) the
Pledged Property.

     

    
      	
              Section
      6.2.

            	
              Financial Statements
      and Reports.

            

    

     

    The
Company shall furnish to the Secured Party such financial data as the Secured
Party may reasonably request.  Without limiting the foregoing, the
Company shall furnish to the Secured Party (or cause to be furnished to the
Secured Party) the following:

     

    (a)           as
soon as practicable and in any event within ninety (90) days after the end of
each fiscal year of the Company, the balance sheet of the Company as of the
close of such fiscal year, the statement of earnings and retained earnings of
the Company as of the close of such fiscal year, and statement of cash flows for
the Company for such fiscal year, all in reasonable detail, prepared in
accordance with generally accepted accounting principles consistently applied,
certified by the chief executive and chief financial officers of the Company as
being true and correct and accompanied by a certificate of the chief executive
and chief financial officers of the Company, stating that the Company has kept,
observed, performed and fulfilled each covenant, term and condition of this
Agreement during such fiscal year and that no Event of Default hereunder has
occurred and is continuing, or if an Event of Default has occurred and is
continuing, specifying the nature of same, the period of existence of same and
the action the Company proposes to take in connection therewith;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           within
thirty (30) days of the end of each calendar month, a balance sheet of the
Company as of the close of such month, and statement of earnings and retained
earnings of the Company as of the close of such month, all in reasonable detail,
and prepared substantially in accordance with generally accepted accounting
principles consistently applied, certified by the chief executive and chief
financial officers of the Company as being true and correct; and

     

    (c)           promptly
upon receipt thereof, copies of all accountants' reports and accompanying
financial reports submitted to the Company by independent accountants in
connection with each annual examination of the Company.

     

    
      	
              Section
      6.3.

            	
              Accounts and
      Reports.

            

    

     

    The
Company shall maintain a standard system of accounting in accordance with
generally accepted accounting principles consistently applied and provide, at
its sole expense, to the Secured Party the following:

     

    (a)           as
soon as available, a copy of any notice or other communication alleging any
nonpayment or other material breach or default, or any foreclosure or other
action respecting any material portion of its assets and properties, received
respecting any of the indebtedness of the Company in excess of $15,000 (other
than the Obligations), or any demand or other request for payment under any
guaranty, assumption, purchase agreement or similar agreement or arrangement
respecting the indebtedness or obligations of others in excess of $15,000,
including any received from any person acting on behalf of the Secured Party or
beneficiary thereof; and

     

    (b)           within
fifteen (15) days after the making of each submission or filing, a copy of
any report, financial statement, notice or other document, whether periodic or
otherwise, submitted to the shareholders of the Company, or submitted to or
filed by the Company with any governmental authority involving or affecting (i)
the Company that could have a Material Adverse Effect; (ii) the
Obligations; (iii) any part of the Pledged Property; or (iv) any of
the transactions contemplated in this Agreement or any other Transaction
Document.

     

    
      	
              Section
      6.4.

            	
              Maintenance of Books
      and Records; Inspection.

            

    

     

    The
Company shall maintain its books, accounts and records in accordance with
generally accepted accounting principles consistently applied, and permit the
Secured Party, its officers and employees and any professionals designated by
the Secured Party in writing, at any time to visit and inspect any of its
properties (including but not limited to the collateral security described in
the Security Agreement), corporate books and financial records, and to discuss
its accounts, affairs and finances with any employee, officer or director
thereof.

     

    
      	
              Section
      6.5.

            	
              Maintenance and
      Insurance.

            

    

     

    (a)           The
Company shall maintain or cause to be maintained, at its own expense, all of its
assets and properties in good working order and condition, making all necessary
repairs thereto and renewals and replacements thereof.

     

    (b)           The
Company shall maintain or cause to be maintained, at its own expense, insurance
in form, substance and amounts (including deductibles), which the Company deems
reasonably necessary to the Company’s business, (i) adequate to insure all
assets and properties of the Company, which assets and properties are of a
character usually insured by persons engaged in the same or similar business
against loss or damage resulting from fire or other risks included in an
extended coverage policy; (ii) against public liability and other tort
claims that may be incurred by the Company; (iii) as may be required by the
Security Agreement and/or applicable law and (iv) as may be reasonably
requested by Secured Party, all with adequate, financially sound and reputable
insurers.

     

    
      	
              Section
      6.6.

            	
              Contracts and Other
      Collateral.

            

    

     

    The
Company shall perform all of its material obligations under or with respect to
each instrument, receivable, contract and other intangible included in the
Pledged Property to which the Company is now or hereafter will be party on a
timely basis and in the manner therein required, including, without limitation,
this Agreement.

     

    
      	
              Section
      6.7.

            	
              Defense of Collateral,
      Etc.

            

    

     

    The
Company shall defend and enforce its right, title and interest in and to any
part of:  (a) the Pledged Property; and (b) if not included
within the Pledged Property, those assets and properties whose loss could have a
Material Adverse Effect, the Company shall defend the Secured Party’s right,
title and interest in and to each and every part of the Pledged Property, each
against all manner of claims and demands on a timely basis to the full extent
permitted by applicable law.

     

    
      	
              Section
      6.8.

            	
              Payment of Debts,
      Taxes, Etc.

            

    

     

    The
Company shall pay, or cause to be paid, all of its indebtedness and other
liabilities and perform, or cause to be performed, all of its obligations in
accordance with the respective terms thereof, and pay and discharge, or cause to
be paid or discharged, all taxes, assessments and other governmental charges and
levies imposed upon it, upon any of its assets and properties on or before the
last day on which the same may be paid without penalty, as well as pay all other
lawful claims (whether for services, labor, materials, supplies or
otherwise) as and when due

     

    
      	
              Section
      6.9.

            	
              Taxes and Assessments;
      Tax Indemnity.

            

    

     

    The
Company shall (a) file all tax returns and appropriate schedules thereto
that are required to be filed under applicable law, prior to the date of
delinquency, (b) pay and discharge all taxes, assessments and governmental
charges or levies imposed upon the Company, upon its income and profits or upon
any properties belonging to it, prior to the date on which penalties attach
thereto, and (c) pay all taxes, assessments and governmental charges or
levies that, if unpaid, might become a lien or charge upon any of its
properties; provided,
however, that the Company in good faith may contest any such tax,
assessment, governmental charge or levy described in the foregoing clauses (b)
and (c) so long as appropriate reserves are maintained with respect
thereto.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              Section
      6.10.

            	
              Compliance with Law
      and Other Agreements.

            

    

     

    The
Company shall maintain its business operations and property owned or used in
connection therewith in compliance with (a) all applicable federal, state
and local laws, regulations and ordinances governing such business operations
and the use and ownership of such property, and (b) all agreements,
licenses, franchises, indentures and mortgages to which the Company is a party
or by which the Company or any of its properties is bound.  Without
limiting the foregoing, the Company shall pay all of its indebtedness promptly
in accordance with the terms thereof.

     

    
      	
              Section
      6.11.

            	
              Notice of
      Default.

            

    

     

    The
Company shall give written notice to the Secured Party of the occurrence of any
default or Event of Default under this Agreement or any other Transaction
Document or any other agreement of Company for the payment of money, promptly
upon the occurrence thereof.

     

    
      	
              Section
      6.12.

            	
              Notice of
      Litigation.

            

    

     

    The
Company shall give notice, in writing, to the Secured Party of (a) any
actions, suits or proceedings wherein the amount at issue is in excess of
$50,000, instituted by any persons against the Company, or affecting any of the
assets of the Company, and (b) any dispute, not resolved within fifteen
(15) days of the commencement thereof, between the Company on the one hand and
any governmental or regulatory body on the other hand, which might reasonably be
expected to have a Material Adverse Effect on the business operations or
financial condition of the Company.

     

    ARTICLE
7.

     

    NEGATIVE
COVENANTS

     

    The
Company covenants and agrees that, from the date hereof until the Obligations
have been fully paid and satisfied, the Company shall not, unless the Secured
Party shall consent otherwise in writing:

     

    
      	
              Section
      7.1.

            	
              Indebtedness.

            

    

     

    The
Company shall not directly or indirectly permit, create, incur, assume, permit
to exist, increase, renew or extend on or after the date hereof any indebtedness
on its part, including commitments, contingencies and credit availabilities, or
apply for or offer or agree to do any of the foregoing, except in the ordinary
course of business.

     

    
      	
              Section
      7.2.

            	
              Liens and
      Encumbrances.

            

    

     

    Except in
the ordinary course of business, the Company shall not directly or indirectly
make, create, incur, assume or permit to exist any assignment, transfer, pledge,
mortgage, security interest or other lien or encumbrance of any nature in, to or
against any part of the Pledged Property or of the Company’s capital stock, or
offer or agree to do so, or own or acquire or agree to acquire any asset or
property of any character subject to any of the foregoing encumbrances
(including any conditional sale contract or other title retention agreement), or
assign, pledge or in any way transfer or encumber its right to receive any
income or other distribution or proceeds from any part of the Pledged Property
or the Company’s capital stock; or enter into any sale-leaseback financing
respecting any part of the Pledged Property  as lessee, or cause or
assist the inception or continuation of any of the foregoing.

     

    
      	
              Section
      7.3.

            	
              Dividends,
      Etc.

            

    

     

    The
Company shall not declare or pay any dividend of any kind, in cash or in
property, on any class of its capital stock, nor purchase, redeem, retire or
otherwise acquire for value any shares of such stock, nor make any distribution
of any kind in respect thereof, nor make any return of capital to shareholders,
nor make any payments in respect of any pension, profit sharing, retirement,
stock option, stock bonus, incentive compensation or similar plan (except as
required or permitted hereunder), without the prior written consent of the
Secured Party.

     

    
      	
              Section
      7.4.

            	
              Guaranties;
      Loans.

            

    

     

    The
Company shall not guarantee nor be liable in any manner, whether directly or
indirectly, or become contingently liable after the date of this Agreement in
connection with the obligations or indebtedness of any person or persons, except
for (i) the indebtedness currently secured by the liens identified on the
Pledged Property identified on Exhibit A hereto and (ii) the endorsement of
negotiable instruments payable to the Company for deposit or collection in the
ordinary course of business.  The Company shall not make any loan,
advance or extension of credit to any person other than in the normal course of
its business.

     

    
      	
              Section
      7.5.

            	
              Debt.

            

    

     

    The
Company shall not create, incur, assume or suffer to exist any additional
indebtedness of any description whatsoever in an aggregate amount in excess of
$25,000 (excluding any indebtedness of the Company to the Secured Party, trade
accounts payable and accrued expenses incurred in the ordinary course of
business and the endorsement of negotiable instruments payable to the Company,
respectively for deposit or collection in the ordinary course of
business).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              Section
      7.6.

            	
              Conduct of
      Business.

            

    

     

    The
Company will continue to engage, in an efficient and economical manner, in a
business of the same general type as conducted by it on the date of this
Agreement.

     

    
      	
              Section
      7.7.

            	
              Places of
      Business.

            

    

     

    The
location of the Company’s chief place of business is 750 Highway 34, Matawan, NJ
07747.  The Company shall not change the location of its chief place
of business, chief executive office or any place of business disclosed to the
Secured Party or move any of the Pledged Property from its current location
without thirty (30) days' prior written notice to the Secured Party in each
instance.

    ARTICLE
8.

     

    MISCELLANEOUS

     

    
      	
              Section
      8.1.

            	
              Notices.

            

    

     

    All
notices or other communications required or permitted to be given pursuant to
this Agreement shall be in writing and shall be considered as duly given
on:  (a) the date of delivery, if delivered in person against
written receipt therefor, or by nationally recognized overnight delivery service
or (b) five (5) days after mailing if mailed from within the
continental United States by postage pre-paid certified mail, return receipt
requested to the party entitled to receive the same:

     

    
      	 
      	
              If
      to the Secured Party:

            	
              iVoice,
      Inc.

            
	 
      	 
      	
              750
      Highway 34

              Matawan,
      NJ 07747

            
	 
      	 
      	
              Attention:  Jerome
      Mahoney

            
	 
      	 
      	
              Telephone:  (732)
      441-7700

            
	 
      	 
      	
              Facsimile:  (732)
      441-9895

            
	 
      	 
      	 
      
	 
      	
              With
      a copy to:

            	
              Meritz
      & Muenz LLP

            
	 
      	 
      	
              2021
      O Street, NW

            
	 
      	 
      	
              Washington,
      DC 20036

            
	 
      	 
      	
              Attention
      : Lawrence A. Muenz, Esquire

            
	 
      	 
      	
              Telephone:
      (202) 728-2909

            
	 
      	 
      	
              Facsimile:  (202)
      728-2910

            
	 
      	 
      	 
      
	 
      	
              And
      if to the Company:

            	
              iVoice
      Technology, Inc.

            
	 
      	 
      	
              750
      Highway 34

              Matawan,
      NJ 07747

            
	 
      	 
      	
              Attention:  Jerome
      Mahoney

            
	 
      	 
      	
              Telephone:  (732)
      441-7700

            
	 
      	 
      	
              Facsimile:  (732)
      441-9895

            
	 
      	 
      	 
      
	 
      	With
      a copy to:	 
      

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Any party
may change its address by giving notice to the other party stating its new
address.  Commencing on the tenth (10th) day
after the giving of such notice, such newly designated address shall be such
party’s address for the purpose of all notices or other communications required
or permitted to be given pursuant to this Agreement.

     

    
      	
              Section
      8.2.

            	
              Severability.

            

    

     

    If any
provision of this Agreement shall be held invalid or unenforceable, such
invalidity or unenforceability shall attach only to such provision and shall not
in any manner affect or render invalid or unenforceable any other severable
provision of this Agreement, and this Agreement shall be carried out as if any
such invalid or unenforceable provision were not contained herein.

     

    
      	
              Section
      8.3.

            	
              Expenses.

            

    

     

    In the
event of an Event of Default, the Company will pay to the Secured Party the
amount of any and all reasonable expenses, including the reasonable fees and
expenses of its counsel, which the Secured Party may incur in connection
with:  (i) the custody or preservation of, or the sale,
collection from, or other realization upon, any of the Pledged Property;
(ii) the exercise or enforcement of any of the rights of the Secured Party
hereunder or (iii) the failure by the Company to perform or observe any of
the provisions hereof.

     

    
      	
              Section
      8.4.

            	
              Waivers, Amendments,
      Etc.

            

    

     

    The
Secured Party’s delay or failure at any time or times hereafter to require
strict performance by Company of any undertakings, agreements or covenants shall
not waiver, affect, or diminish any right of the Secured Party under this
Agreement to demand strict compliance and performance herewith.  Any
waiver by the Secured Party of any Event of Default shall not waive or affect
any other Event of Default, whether such Event of Default is prior or subsequent
thereto and whether of the same or a different type.  None of the
undertakings, agreements and covenants of the Company contained in this
Agreement, and no Event of Default, shall be deemed to have been waived by the
Secured Party, nor may this Agreement be amended, changed or modified, unless
such waiver, amendment, change or modification is evidenced by an instrument in
writing specifying such waiver, amendment, change or modification and signed by
the Secured Party.

     

    
      	
              Section
      8.5.

            	
              Continuing Security
      Interest.

            

    

     

    This
Agreement shall create a continuing security interest in the Pledged Property
and shall: (i) remain in full force and effect until payment in full of the
Obligations; and (ii) be binding upon the Company and its successors and
heirs and (iii) inure to the benefit of the Secured Party and its
successors and assigns.  Upon the payment or satisfaction in full of
the Obligations, the Company shall be entitled to the return, at its expense, of
such of the Pledged Property as shall not have been sold in accordance with
Section 5.2 hereof or otherwise applied pursuant to the terms hereof and
the Secured Party shall release the Pledged Property and execute such documents
as the Company may, in its sole reasonable discretion, request to evidence such
release and/ or termination of the Security Interests.

     

    
      	
              Section
      8.6.

            	
              Independent
      Representation.

            

    

     

    Each
party hereto acknowledges and agrees that it has received or has had the
opportunity to receive independent legal counsel of its own choice and that it
has been sufficiently apprised of its rights and responsibilities with regard to
the substance of this Agreement.

     

    
      	
              Section
      8.7.

            	
              Applicable
      Law:  Jurisdiction.

            

    

     

    This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of New Jersey without regard to the principles of conflict of
laws.  The parties further agree that any action between them shall be
heard in Hudson County, New Jersey, and expressly consent to the jurisdiction
and venue of the Superior Court of New Jersey, sitting in Hudson County and the
United States District Court for the District of New Jersey sitting in Newark,
New Jersey for the adjudication of any civil action asserted pursuant to this
Paragraph.

     

    
      	
              Section
      8.8.

            	
              Waiver of Jury
      Trial.

            

    

     

    AS A
FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS AGREEMENT AND TO
MAKE THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY HEREBY WAIVES ANY
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS
AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS RELATED TO THIS
TRANSACTION.

     

    
      	
              Section
      8.9

            	
              [Intentionally
      omitted]

            

    

     

    
      	
              Section
      8.10

            	
              Entire
      Agreement.

            

    

     

    This
Agreement constitutes the entire agreement among the parties and supersedes any
prior agreement or understanding among them with respect to the subject matter
hereof.

     

    

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date first above
written.

     

    

    
      	 
      	
              COMPANY:

               

            
	 
      	
              IVOICE
      TECHNOLOGY, INC.

            
	 
      	 
      
	 
      	
              By: _______________________________________                                                               

            
	 
      	
              Name:   Jerome
      Mahoney

            
	 
      	
              Title:     President
      and Chief Executive Officer

            
	 
      	 
      
	 
      	 
      
	 
      	
              SECURED
      PARTY:

            
	 
      	 
      
	 
      	
              IVOICE,
      INC.

               

            
	 
      	
              By: _______________________________________                                                               

            
	 
      	
              Name:  
      Jerome Mahoney

            
	 
      	
              Title:     President
      and Chief Executive Officer

            
	 
      	 
      

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
A

     

     

    DEFINITION OF PLEDGED
PROPERTY

     

     

    For the
purpose of securing prompt and complete payment and performance by the Company
of all of the Obligations, the Company unconditionally and irrevocably hereby
grants to the Secured Party a continuing security interest in and to, and lien
upon, the following Pledged Property of the Company:

     

     

    (a)           all
goods of the Company, including, without limitation, machinery, equipment,
furniture, furnishings, fixtures, signs, lights, tools, parts, supplies and
motor vehicles of every kind and description, now or hereafter owned by the
Company or in which the Company may have or may hereafter acquire any interest,
and all replacements, additions, accessions, substitutions and proceeds thereof,
arising from the sale or disposition thereof, and where applicable, the proceeds
of insurance and of any tort claims involving any of the foregoing;

     

     

    (b)           all
inventory of the Company, including, but not limited to, all goods, wares,
merchandise, parts, supplies, finished products, other tangible personal
property, including such inventory as is temporarily out of Company’s custody or
possession and including any returns upon any accounts or other proceeds,
including insurance proceeds, resulting from the sale or disposition of any of
the foregoing;

     

     

    (c)           all
contract rights and general intangibles of the Company, including, without
limitation, goodwill, trademarks, trade styles, trade names, leasehold
interests, partnership or joint venture interests, patents and patent
applications, copyrights, deposit accounts whether now owned or hereafter
created;

     

     

    (d)           all
documents, warehouse receipts, instruments and chattel paper of the Company
whether now owned or hereafter created;

     

     

    (e)           all
accounts and other receivables, instruments or other forms of obligations and
rights to payment of the Company (herein collectively referred to as “Accounts”), together
with the proceeds thereof, all goods represented by such Accounts and all such
goods that may be returned by the Company’s customers, and all proceeds of any
insurance thereon, and all guarantees, securities and liens which the Company
may hold for the payment of any such Accounts including, without limitation, all
rights of stoppage in transit, replevin and reclamation and as an unpaid vendor
and/or lienor, all of which the Company represents and warrants will be bona
fide and existing obligations of its respective customers, arising out of the
sale of goods by the Company in the ordinary course of business;

     

     

    (f)           to
the extent assignable, all of the Company’s rights under all present and future
authorizations, permits, licenses and franchises issued or granted in connection
with the operations of any of its facilities; and

     

     

    (g)           all
products and proceeds (including, without limitation, insurance proceeds) from
the above-described Pledged Property.

     

     

    (h)           all
cash, cash equivalents, certificate of deposits, depository accounts, marketable
securities.

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