Document:

Unassociated Document

    Exhibit
      4.9

     

    PLEDGE
      AGREEMENT

     

    This
      PLEDGE AGREEMENT (this “Agreement”), dated as of
      ________, 2007, made by Mohen, Inc. d/b/a Spiral Frog, a Delaware corporation
      (the “Company”) and each entity listed as a pledgor on the
      signature pages hereto (each a “Pledgor”), and in favor of
      GOTTBETTER CAPITAL FINANCE, LLC, in its capacity as collateral agent (in such
      capacity, the "Collateral Agent") for the "Buyers" (as defined
      below) party to the Amended and Restated Purchase Agreement, dated August ____,
      2007 (as amended, restated or otherwise modified from time to time, the
      "Purchase Agreement").

     

    WITNESSETH:

     

     

    WHEREAS,
      the Company and each party listed as a "Buyer" on the Schedule
      of Buyers attached to the Purchase Agreement (collectively, the
"Buyers") are parties to that Purchase Agreement, pursuant to
      which the Company shall be required to sell, and the Buyers shall purchase,
      the
      "Notes” and acquire the “Warrants” (each as defined therein) ;

     

    WHEREAS,
      it is a condition precedent to the Buyers purchasing the Notes and acquiring
      the
      Warrants that the Pledgors shall have executed and delivered to the Collateral
      Agent for the benefit of itself and the Buyers this Agreement to secure all
      of
      the Company’s obligations under the Purchase Agreement, the Notes issued
      pursuant thereto, as such Notes may be amended, restated, replaced or otherwise
      modified from time to time in accordance with the terms thereof) and the other
      “Transaction Documents” (as defined in the Purchase Agreement, the
“Transaction Documents”), on such terms and conditions as are
      set forth herein; and

     

    WHEREAS,
      each Pledgor has determined that the execution, delivery and performance of
      this
      Agreement directly benefits, and is in the best interest of, such
      Pledgor;

     

    NOW,
      THEREFORE, in consideration of the premises and the agreements herein and in
      order to induce the Buyers to perform under the Purchase Agreement, each Pledgor
      agrees with the Collateral Agent as follows:

     

    SECTION
      1.  Definitions
      and Rules of Interpretation.

     

    (a)  Definitions.  Reference
      is made to the Purchase Agreement and the Notes for a statement of terms
      thereof.  All terms used in this Agreement which are defined in the
      Purchase Agreement or the Notes or in Article 8 or Article 9 of the Uniform
      Commercial Code  as in effect from time to time in the State of New
      York (the “Code”), and which are not otherwise defined herein
      shall have the same meanings herein as set forth therein; provided, that
      terms used herein which are defined in the Code as in effect in the State of
      New
      York on the date hereof shall continue to have the same meaning notwithstanding
      any replacement or amendment of such statute except as the Collateral Agent
      may
      otherwise determine.  In the event that any such term is defined in
      both the Purchase Agreement or the Notes and the Code, the definition of such
      term in the Purchase Agreement or the Notes shall control.

     

    
      
        
        

      

      
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    (b)  Rules
      of Interpretation.  Except as otherwise expressly provided in this
      Agreement, the following rules of interpretation apply to this Agreement: (i)
      the singular includes the plural and the plural includes the singular; (ii)
“or”
and “any” are not exclusive and “include” and “including” are not limiting;
      (iii) a reference to any agreement or other contract includes permitted
      supplements and amendments; (iv) a reference to a law includes any amendment
      or
      modification to such law and any rules or regulations issued thereunder; (v)
      a
      reference to a person includes its permitted successors and assigns; and (vi)
      a
      reference in this Agreement to an Article, Section, Annex, Exhibit or Schedule
      is to the Article, Section, Annex, Exhibit or Schedule of this
      Agreement.

     

    SECTION
      2.  Pledge
      and Grant of Security Interest.

     

    (a)           As
      collateral security for all of the Obligations (as defined in Section 3 hereof),
      each of the Pledgors hereby pledges and assigns and grants to the Collateral
      Agent a continuing security interest in, and Lien on, all of such Pledgor’s
      right, title and interest in and to the following (collectively, the
“Collateral”):  the shares of capital stock described
      in Schedule I, whether or not evidenced or represented by any stock
      certificate, certificated security or other instrument, together with the
      certificates representing such equity interests, (including, but not limited
      to,
      any stock dividend and any distribution in connection with a stock split) from
      time to time received, receivable or otherwise distributed in respect of any
      of
      the foregoing and all cash and noncash proceeds thereof (collectively, the
      “Pledged Shares”).

     

    SECTION
      3.  Security
      for Obligations.  The security interest created hereby in the
      Collateral constitutes continuing collateral security for all of the following
      obligations, whether now existing or hereafter incurred (the
“Obligations”):

     

    (a)  the
      payment by the Company, as and when due and payable (by scheduled maturity,
      required prepayment, acceleration, demand or otherwise), of all amounts from
      time to time owing by it in respect of the Purchase Agreement, the Notes and
      the
      other Transaction Documents, including, without limitation, (A) all principal
      of
      and interest on the Notes (including, without limitation, all interest that
      accrues after the commencement of any bankruptcy proceeding of the Pledgors,
      whether or not the payment of such interest is unenforceable or is not allowable
      due to the existence of such bankruptcy proceeding), and (B) all fees,
      commissions, expense reimbursements, indemnifications and all other amounts
      due
      or to become due under any of the Transaction Documents, above, for so long
      as
      the Notes are outstanding; and

     

    (b)  the
      due
      performance and observance by each Pledgor of all of its other obligations
      from
      time to time existing in respect of any of the Transaction Documents for so
      long
      as the Notes are outstanding.

     

    
      
        
        

      

      
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    SECTION
      4.  Delivery
      of the Collateral.

     

    (a)  All
      certificates currently representing the Pledged Shares shall be delivered to
      the
      Collateral Agent on or prior to the execution and delivery of this
      Agreement.  All other promissory notes, certificates and instruments
      constituting Collateral from time to time or required to be pledged to the
      Collateral Agent pursuant to the terms of this Agreement (the
“Additional Collateral”) shall be delivered to the Collateral
      Agent promptly upon receipt thereof by or on behalf of any of the
      Pledgors.  All such promissory notes, certificates and instruments
      shall be held by the Collateral Agent pursuant hereto and shall be delivered
      in
      suitable form for transfer by delivery or shall be accompanied by duly executed
      instruments of transfer or assignment or undated stock powers executed in blank
      (“Transfer Materials”), all in form and substance reasonably
      satisfactory to the Collateral Agent.  If any Collateral consists of
      uncertificated securities, unless the immediately following sentence is
      applicable thereto, the Pledgors shall cause the Collateral Agent (or its
      designated custodian, nominee or other designee) to become the registered holder
      thereof, or cause each issuer of such securities to agree that it will comply
      with instructions originated by the Collateral Agent (or its designated
      custodian, nominee or other designee) with respect to such securities without
      further consent by the Pledgors.  

     

    (b)  If
      any
      Pledgor shall receive, by virtue of such Pledgor’s being or having been an owner
      of any Collateral, any (i) stock certificate (including, without limitation,
      any
      certificate representing a stock dividend or distribution in connection with
      any
      increase or reduction of capital, reclassification, merger, consolidation,
      sale
      of assets, combination of shares, stock split, spin-off or split-off),
      promissory note or other instrument, (ii) option or right, whether as an
      addition to, substitution for, or in exchange for, any Collateral, or otherwise,
      (iii) dividends payable in cash (except such dividends permitted to be
      retained by such Pledgor pursuant to Section 7 hereof) or in securities
      or other property or (iv) dividends, distributions, cash, instruments,
      investment property and other property in connection with a partial or total
      liquidation or dissolution or in connection with a reduction of capital, capital
      surplus or paid-in surplus, such Pledgor shall receive such stock certificate,
      promissory note, instrument, option, right, payment or distribution in trust
      for
      the benefit of the Collateral Agent, shall segregate it from such Pledgor’s
      other property and shall deliver it forthwith to the Collateral Agent in the
      exact form received, together with appropriate Transfer Materials, to be held
      by
      the Collateral Agent as Collateral and as further collateral security for the
      Obligations.

     

    (c)  If,
      from
      time to time, the Company redeems at least 20% of the aggregate original
      principal amount of the Notes, the Collateral Agent shall return to the holders
      of Pledged Shares 20% of such shares on a pro rata basis.

     

    
      
        
        

      

      
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    (d)  If
      the
      Notes become exchangeable, the Company shall prepare, and, as soon as
      practicable, but in no event later than the sixty (60) calendar days after
      the
      Notes become exchangeable into Common Stock, file with the SEC, a Registration
      Statement on Form SB-2 (or such other form as may be available) covering the
      resale of at least 2,593,847 shares of Common Stock in addition to the Exchange
      Shares and Warrant Shares.  The Company shall use its best efforts to
      have the Registration Statement declared effective by the SEC as soon as
      practicable, but in no event later than ninety (90) calendar days after the
      date
      the Registration Statement is filed with the SEC. By 9:30 a.m. on the Business
      Day following such date, the Company shall file with the SEC in accordance
      with
      Rule 424 under the 1933 Act the final prospectus to be used in connection
      with sales pursuant to such Registration Statement.

     

    (e)  Upon
      the
      earlier of the effectiveness of the registration statement described in Section
      4(c) or full satisfaction of the Company's obligations under the Notes, the
      Company shall notify the Collateral Agent in writing.  Upon receipt of
      such notice or if it becomes publicly known to Collateral Agent, the Collateral
      Agent shall return the Pledged Shares, together with the relevant Transfer
      Materials, to the respective Pledgors, and all rights of the Pledgee in the
      Pledged Shares shall terminate.  Notwithstanding anything herein to
      the contrary, upon full satisfaction of the Company's obligations under the
      Notes, Pledgee's interest in and to the Pledged Shares, if any, shall
      terminate.

     

    SECTION
      5.  Covenants
      as to the Collateral.  So long as any Obligations shall remain
      outstanding and the Purchase Agreement and the other Transaction Documents
      shall
      not have been terminated, the Company will, unless the Collateral Agent shall
      otherwise consent in writing:

     

    (a)  keep
      adequate records concerning the Collateral owned or purported to be owned by
      it,
      and permit the Collateral Agent, or any designees or representatives thereof
      at
      any time or from time to time to examine and make copies of and abstracts from
      such records;

     

    (b)  at
      the
      Company’s expense, promptly deliver to the Collateral Agent a copy of each
      material notice or other material communication received by any Pledgor in
      respect of the Collateral;

     

    (c)  at
      the
      Company’s expense, defend the Collateral Agent’s right, title and security
      interest in and to the Collateral against the claims of any Person (other than
      the holders of Permitted Liens);

     

    
      
        
        

      

      
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    (d)  at
      the
      Company’s expense, at any time and from time to time, promptly execute and
      deliver all further instruments and documents and take all further action that
      may be necessary or that the Collateral Agent may reasonably request in order
      to
      (i) perfect and protect, or maintain the perfection of, the security
      interest and Lien purported to be created hereby, (ii) enable the Collateral
      Agent to exercise and enforce its rights and remedies hereunder in respect
      of
      the Collateral or (iii) otherwise effect the purposes of this Agreement,
      including, without limitation, delivering to the Collateral Agent irrevocable
      proxies in respect of the Collateral registered in the name of such Company,
      except for Collateral which the Company is entitled to vote under the terms
      of
      Section 7 hererof;

     

    (e)  not
      sell,
      assign (by operation of law or otherwise), exchange or otherwise dispose of
      any
      Collateral or any interest therein except in the ordinary course of business
      or
      as expressly permitted by the Purchase Agreement or the Notes;

     

    (f)  not
      create or suffer to exist any Lien, upon or with respect to any Collateral
      except for Permitted Liens;

     

    (g)  not
      make
      or consent to any amendment or other modification or waiver with respect to
      any
      Collateral or enter into any agreement or permit to exist any restriction with
      respect to any Collateral other than pursuant to the Transaction
      Documents;

     

    (h)  not
      issue
      any stock certificate, certificated security or other instrument to evidence
      or
      represent any shares of capital stock, any partnership interest or membership
      interest described in Schedule I hereto; and

     

    (i)  not
      take
      or fail to take any action which would in any manner impair the validity or
      enforceability of the Collateral Agent’s security interest in and Lien on any
      Collateral.

     

    SECTION
      6.  Voting
      Rights, Dividends, Etc. in Respect of the Collateral.

     

    (a)  So
      long
      as the Collateral Agent has not offered the Collateral for sale in accordance
      with Section 9 hereof:

     

    
      
        
        

      

      
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    (i)  each
      Pledgor may exercise any and all voting and other consensual rights pertaining
      to any Collateral;

     

    (ii)  the
      Pledgors may receive and retain any and all dividends, interest or other
      distributions paid in respect of the Collateral to the extent permitted by
      the
      Purchase Agreement; provided, however, that any and all (A)
      dividends and interest paid or payable other than in cash in respect of, and
      instruments (other than checks) and other property received, receivable or
      otherwise distributed in respect of or in exchange for, any Collateral, (B)
      dividends and other distributions paid or payable in cash in respect of any
      Collateral in connection with a partial or total liquidation or dissolution
      or
      in connection with a reduction of capital, capital surplus or paid-in surplus,
      and (C) cash paid, payable or otherwise distributed in redemption of, or in
      exchange for, any Collateral, together with any dividend, distribution, interest
      or other payment which at the time of such dividend, distribution, interest
      or
      other payment was not permitted by the Purchase Agreement, shall be, and shall
      forthwith be delivered to the Collateral Agent to hold as, Collateral and shall,
      if received by any of the Pledgors, be received in trust for the benefit of
      the
      Collateral Agent, shall be segregated from the other property or funds of the
      Pledgors, and shall be forthwith delivered to the Collateral Agent in the exact
      form received with any Transfer Materials, to be held by the Collateral Agent
      as
      Collateral and as further collateral security for the Obligations;
      and

     

    (iii)  the
      Collateral Agent will execute and deliver (or cause to be executed and
      delivered) to a Pledgor all such proxies and other instruments as such Pledgor
      may reasonably request for the purpose of enabling such Pledgor to exercise
      the
      voting and other rights which it is entitled to exercise pursuant to paragraph
      (i) of this Section 6(a) and to receive the dividends, distributions,
      interest and other payments which it is authorized to receive and retain
      pursuant to paragraph (ii) of this Section 6(a), in each case, to the
      extent that the Collateral Agent has possession of such Collateral.

     

    (b)  So
      long
      as the Collateral Agent has not offered the Collateral for sale in accordance
      with Section 9 hereof:

     

    (i)  all
      rights of each Pledgor to exercise the voting and other consensual rights which
      it would otherwise be entitled to exercise pursuant to paragraph (i) of
      subsection (a) of this Section 6, and to receive the dividends,
      distributions, interest and other payments which it would otherwise be
      authorized to receive and retain pursuant to paragraph (ii) of subsection
      (a) of this Section 6, shall cease, and all such rights shall
      thereupon become vested in the Collateral Agent which shall thereupon have
      the
      sole right to exercise such voting and other consensual rights and to receive
      and hold as Collateral such dividends, distributions, interest and other
      payments;

     

    (ii)  without
      limiting the generality of the foregoing, the Collateral Agent may, at its
      option, exercise any and all rights of conversion, exchange, subscription or
      any
      other rights, privileges or options pertaining to any of the Collateral as
      if it
      were the absolute owner thereof, including, without limitation, the right to
      exchange, in its discretion, any and all of the Collateral upon the merger,
      consolidation, reorganization, recapitalization or other adjustment of any
      issuer of the Collateral or upon the exercise by any issuer of the Collateral
      of
      any right, privilege or option pertaining to any Collateral, and, in connection
      therewith, to deposit and deliver any and all of the Collateral with any
      committee, depository, transfer collateral agent, registrar or other designated
      collateral agent upon such terms and conditions as it may determine;
      and

     

    
      
        
        

      

      
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    (iii)  all
      dividends, distributions, interest and other payments which are received by
      any
      Pledgor contrary to the provisions of paragraph (i) of this Section 7(b)
      shall be received in trust for the benefit of the Collateral Agent, shall be
      segregated from other funds of such Pledgor, and shall be forthwith paid over
      to
      the Collateral Agent as Collateral in the exact form received with any necessary
      indorsement and/or appropriate stock powers duly executed in blank, to be held
      by the Collateral Agent as Collateral and as further collateral security for
      the
      Obligations.

     

    SECTION
      7.  Additional
      Provisions Concerning the Collateral.

     

    (a)  Each
      Pledgor hereby (i) authorizes the Collateral Agent to file one or more financing
      or continuation statements, and amendments thereto, relating to the Collateral,
      without the signature of such Pledgor where permitted by law, (ii) ratifies
      such
      authorization to the extent that the Collateral Agent has filed any such
      financing or continuation statements, or amendments thereto, without the
      signature of such Pledgor prior to the date hereof and (iii) authorizes the
      Collateral Agent to execute any agreements, instruments or other documents
      in
      such Pledgor’s name and to file such agreements, instruments or other documents
      that perfect, protect or enforce the security interest and Lien of the
      Collateral Agent in the Collateral or as provided under Article 8 or Article
      9
      of the UCC in any appropriate filing office.

     

    (b)  Each
      Pledgor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact
      and proxy, with full authority in the place and stead and in its name or
      otherwise, from time to time in the Collateral Agent’s discretion to take any
      action and to execute any instrument which the Collateral Agent may deem
      necessary or advisable to accomplish the purposes of this Agreement (subject
      to
      the rights of such Pledgor under Section 7(a) hereof), including, without
      limitation, to receive, indorse and collect all instruments made payable to
      such
      Pledgor representing any dividend, interest payment or other distribution in
      respect of any Collateral and to give full discharge for the
      same.  This power is coupled with an interest and is irrevocable until
      the termination of this Agreement in accordance with Section 13(e)
      hereof.

     

    (c)  If
      any
      Pledgor fails to perform any agreement or obligation contained herein, the
      Collateral Agent itself may perform, or cause performance of, such agreement
      or
      obligation, and the expenses of the Collateral Agent incurred in connection
      therewith shall be paid by the Company and shall be secured by the
      Collateral.

     

    
      
        
        

      

      
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    (d)  Other
      than the exercise of reasonable care to assure the safe custody of the
      Collateral while held hereunder, the Collateral Agent shall have no duty or
      liability to preserve rights pertaining thereto and shall be relieved of all
      responsibility for the Collateral upon surrendering it or tendering surrender
      of
      it to the respective Pledgors.  The Collateral Agent shall be deemed
      to have exercised reasonable care in the custody and preservation of the
      Collateral in its possession if the Collateral is accorded treatment
      substantially equal to that which the Collateral Agent accords its own property,
      it being understood that the Collateral Agent shall not have responsibility
      for
      (i) ascertaining or taking action with respect to calls, conversions, exchanges,
      maturities, tenders or other matters relating to any Collateral, whether or
      not
      the Collateral Agent has or is deemed to have knowledge of such matters, or
      (ii)
      taking any necessary steps to preserve rights against any parties with respect
      to any Collateral.

     

    (e)  The
      powers conferred on the Collateral Agent hereunder are solely to protect its
      interest in the Collateral and shall not impose any duty upon it to exercise
      any
      such powers.  Except for the safe custody of any Collateral in its
      possession and the accounting for monies actually received by it hereunder,
      the
      Collateral Agent shall have no duty as to any Collateral or as to the taking
      of
      any necessary steps to preserve rights against prior parties or any other rights
      pertaining to any Collateral.

     

    (f)  Upon
      the
      occurrence and during the continuation of any Default or Event of Default,
      the
      Collateral Agent may at any time in its discretion (i) without notice to the
      Pledgors, transfer or register in the name of the Collateral Agent or any of
      its
      nominees any or all of the Collateral, subject only to the revocable rights
      of
      the Pledgors under Section 7(a) hereof, and (ii) exchange certificates or
      instruments constituting Collateral for certificates or instruments of smaller
      or larger denominations.

     

    SECTION
      8.  Remedies
      Upon Default.  If any Event of Default shall have occurred and be
      continuing:

     

    (a)  The
      Collateral Agent may exercise in respect of the Collateral, in addition to
      other
      rights and remedies provided for herein or otherwise available to it, all of
      the
      rights and remedies of a secured party on default under the Code then in effect
      in the State of New York; and, without limiting the generality of the foregoing,
      and without notice except as specified below, sell the Collateral or any part
      thereof in one or more parcels at public or private sale, at any exchange or
      broker’s board or elsewhere, at such price or prices and on such other terms as
      the Collateral Agent may deem commercially reasonable.  The Pledgors
      agree that, to the extent notice of sale shall be required by law, at least
      ten
      (10) days’ notice to any of the Pledgors of the time and place of any public
      sale or the time after which any private sale is to be made shall constitute
      reasonable notification.  The Collateral Agent shall not be obligated
      to make any sale of Collateral regardless of notice of sale having been
      given.  The Collateral Agent may adjourn any public or private sale
      from time to time by announcement at the time and place fixed therefor, and
      such
      sale may, without further notice, be made at the time and place to which it
      was
      so adjourned.

     

    
      
        
        

      

      
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    (b)  Each
      Pledgor recognizes that it may be impracticable to effect a public sale of
      all
      or any part of the Pledged Shares or any other securities constituting
      Collateral and that the Collateral Agent may, therefore, determine to make
      one
      or more private sales of any such securities to a restricted group of purchasers
      who will be obligated to agree, among other things, to acquire such securities
      for its own account, for investment and not with a view to the distribution
      or
      resale thereof.  Each Pledgor acknowledges that any such private sale
      may be at prices and on terms less favorable to the seller than the prices
      and
      other terms which might have been obtained at a public sale and, notwithstanding
      the foregoing, agrees that such private sales shall be deemed to have been
      made
      in a commercially reasonable manner and that the Collateral Agent shall have
      no
      obligation to delay sale of any such securities for the period of time necessary
      to permit the issuer of such securities to register such securities for public
      sale under the Securities Act of 1933, as amended (the “Securities
      Act”).  Each Pledgor further acknowledges and agrees that any
      offer to sell such securities which has been (i) publicly advertised on a bona
      fide basis in a newspaper or other publication of general circulation in the
      financial community of New York, New York (to the extent that such an offer
      may
      be so advertised without prior registration under the Securities Act) or (ii)
      made privately in the manner described above to not less than fifteen (15)
      bona
      fide offerees shall be deemed to involve a “public disposition” for the purposes
      of Section 9-610 of the Code (or any successor or similar, applicable statutory
      provision) as then in effect in the State of New York, notwithstanding that
      such
      sale may not constitute a “public offering” under the Securities Act, and that
      the Collateral Agent may, in such event, bid for the purchase of such
      securities.

     

    (c)  Any
      cash
      held by the Collateral Agent as Collateral and all cash proceeds received by
      the
      Collateral Agent in respect of any sale of, collection from, or other
      realization upon, all or any part of the Collateral shall be applied (after
      payment of any amounts payable to the Collateral Agent pursuant to Section
      10 hereof) by the Collateral Agent against, all or any part of the
      Obligations in such order as the Collateral Agent shall elect consistent with
      the provisions of the Purchase Agreement.

     

    (d)  In
      the
      event that the proceeds of any such sale, collection or realization are
      insufficient to pay all amounts to which the Collateral Agent is legally
      entitled, the Company shall be liable for the deficiency, together with interest
      thereon at the highest rate specified in the Notes for interest on overdue
      principal thereof or such other rate as shall be fixed by applicable law,
      together with the costs of collection and the reasonable fees, costs and
      expenses of any attorneys employed by the Collateral Agent to collect such
      deficiency.

     

    (e)  In
      the
      event that the proceeds of any such sale, collection, or realization are more
      than sufficient to pay all amounts to which the Collateral Agent is legally
      entitled, the remainder of such proceeds together with any remaining Pledged
      Shares and Subsequent Pledged Shares shall be returned to the Pledgors in
      accordance with the terms hereof.

     

    
      
        
        

      

      
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    SECTION
      9.  Indemnity
      and Expenses.

     

    (a)  The
      Company hereby agrees to indemnify and hold the other Pledgors and the
      Collateral Agent (and all of its officers, directors, employees, attorneys,
      and
      consultants) harmless from and against any and all claims, damages, losses,
      liabilities, obligations, penalties, fees, costs and expenses (including,
      without limitation, reasonable legal fees and disbursements of counsel) to
      the
      extent that they arise out of or otherwise result from this Agreement
      (including, without limitation, enforcement of this Agreement), except such
      claims, damages, losses, liabilities, obligations, penalties, fees, costs and
      expenses resulting from such Person’s gross negligence or willful misconduct as
      determined by a court of competent jurisdiction.

     

    (b)  The
      Company shall be obligated for, and will upon demand pay to the other Pledgors
      and the Collateral Agent the reasonable amount of any and all out-of-pocket
      costs and expenses, including the reasonable fees and disbursements of the
      Collateral Agent’s counsel and of any experts which the Collateral Agent may
      incur in connection with (i) the preparation, negotiation, execution, delivery,
      recordation, administration, amendment, waiver or other modification or
      termination of this Agreement, (ii) the custody, preservation, use or operation
      of, or the sale of, collection from, or other realization upon, any Collateral,
      (iii) the exercise or enforcement of any of the rights of the Collateral Agent
      hereunder, or (iv) the failure by any Pledgor to perform or observe any of
      the
      provisions hereof.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    SECTION
      10.  Notices,
      Etc.  All notices and other communications provided for hereunder
      shall be in writing and shall be mailed (by certified mail, postage prepaid
      and
      return receipt requested), sent by Federal Express or other recognized courier
      service (return receipt requested), telecopied or delivered by hand, if to
      any
      Pledgor, to it at the address specified for the Company in the Purchase
      Agreement or if to the Collateral Agent, to it at the address specified in
      the
      Purchase Agreement or, if not a party to the Purchase Agreement as
      follows:

     

    
      	
              If
                to the Company:

            	
              Mohen,
                Inc. d/b/a Spiral Frog

              95
                Morton Street, Ground Fl.

              New
                York, NY 10014

              Attention:  Chief
                Executive Officer

               

            
	
              With
                a copy to:

            	
              Hughes
                Hubbard and Reed

              One
                Battery Park Plaza

              New
                York, NY 10004

              Attention:                                Harry
                Packman, Esq.

              Telephone:                                (212)
                837-6000

              Facsimile:                                (212)
                422-4726

            
	 	 
	
              If
                to other Pledgors, to:

            	
              Cesar
                Moya

              Anteaus
                Capital

              9952
                South Santa Monica Blvd, Suite 210

              Beverly
                Hills, CA 90212

               

              Chris
                Leahy

              Anteaus
                Capital

              9952
                South Santa Monica Blvd, Suite 210

              Beverly
                Hills, CA 90212

            
	
              If
                to the Collateral Agent, to:

            	
              Gottbetter
                Capital Finance, LLP

            
	 	
              488
                Madison Avenue, 12th
                Floor

            
	 	
              New
                York, NY 10022

            
	 	
              Attention:                                 
                Jason M. Rimland, Esq.

            
	 	
              Telephone:                                212-400-6900

            
	 	
              Facsimile:                                 
                 212-400-6901

            

    

     

    or
      as to
      either such Person at such other address as shall be designated by such Person
      in a written notice to such other Person complying as to delivery with the
      terms
      of this Section 11.  All such notices and other communications
      shall be effective (i) if sent by certified mail, postage prepaid, return
      receipt requested, when received or three (3) Business Days after mailing,
      whichever first occurs, (ii) if telecopied, when transmitted and confirmation
      is
      received, provided same is on a Business Day and, if not, on the next
      Business Day or (iii) if delivered by hand or sent by Federal Express or other
      recognized courier service (return receipt requested), upon delivery,
provided same is on a Business Day and, if not, on the next Business
      Day.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    SECTION
      11.  Security
      Interest Absolute.  All rights of the Collateral Agent, all Liens
      and all obligations of each of the Pledgors hereunder shall be absolute and
      unconditional irrespective of:  (i) any lack of validity or
      enforceability of the Purchase Agreement or any other Transaction Document,
      (ii)
      any change in the time, manner or place of payment of, or in any other term
      in
      respect of, all or any of the Obligations, or any other amendment or waiver
      of
      or consent to any departure from the Purchase Agreement or any other Transaction
      Document, (iii) any exchange or release of, or non-perfection of any Lien on
      any
      Collateral, or any release or amendment or waiver of or consent to departure
      from any guaranty, for all or any of the Obligations, or (iv) any other
      circumstance which might otherwise constitute a defense available to, or a
      discharge of, any of the Pledgors in respect of the Obligations (other than
      the
      payment in full of the Obligations).  All authorizations and agencies
      contained herein with respect to any of the Collateral are irrevocable and
      powers coupled with an interest.

     

    SECTION
      12.  Miscellaneous.

     

    (a)  No
      amendment of any provision of this Agreement shall be effective unless it is
      in
      writing and signed by each Pledgor and the Collateral Agent, and no waiver
      of
      any provision of this Agreement, and no consent to any departure by the Pledgors
      therefrom, shall be effective unless it is in writing and signed by the
      Collateral Agent, and then such waiver or consent shall be effective only in
      the
      specific instance and for the specific purpose for which given.

     

    (b)  No
      failure on the part of the Collateral Agent to exercise, and no delay in
      exercising, any right hereunder or under any other Transaction Document shall
      operate as a waiver hereof or thereof; nor shall any single or partial exercise
      of any such right preclude any other or further exercise hereof or thereof
      or
      the exercise of any other right.  The rights and remedies of the
      Collateral Agent provided herein and in the other Transaction Documents are
      cumulative and are in addition to, and not exclusive of, any rights or remedies
      provided by law.  The rights of the Collateral Agent under any
      Transaction Document against any party thereto are not conditional or contingent
      on any attempt by the Collateral Agent to exercise any of its rights under
      any
      other Transaction Document against such party or against any other
      Person.

     

    (c)  Any
      provision of this Agreement which 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 portions
      hereof or affecting the validity or enforceability of such provision in any
      other jurisdiction.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (d)  This
      Agreement shall create a continuing security interest in and Lien on the
      Collateral and shall (i) remain in full force and effect until the termination
      of this Agreement in accordance with Section 13 (e) hereof and (ii) be
      binding on the Pledgors and their respective successors and assigns and shall
      inure, together with all rights and remedies of the Collateral Agent, to the
      benefit of the Collateral Agent and its successors, transferees and
      assigns.  Without limiting the generality of clause (ii) of the
      immediately preceding sentence, the Collateral Agent may assign or otherwise
      transfer its rights and obligations under this Agreement and any other
      Transaction Document to any other Person pursuant to the terms of the Purchase
      Agreement, and such other Person shall thereupon become vested with all of
      the
      benefits in respect thereof granted to the Collateral Agent herein or
      otherwise.  Upon any such assignment or transfer, all references in
      this Agreement to the Collateral Agent shall mean the assignee of the Collateral
      Agent.  None of the rights or obligations of any of the Pledgors
      hereunder may be assigned or otherwise transferred without the prior written
      consent of the Collateral Agent, and any such assignment or transfer shall
      be
      null and void.

     

    (e)  Notwithstanding
      anything to the contrary in this Agreement, (i) this Agreement (along with
      all
      powers of attorney granted hereunder) and the security interests and Lien
      created hereby shall terminate and all rights to the Collateral shall revert
      to
      the Pledgors upon the repayment in full and /or complete conversion to equity
      securities of the Company of all indebtedness obligations owed by the Company
      to
      the Buyers under the Notes (including, without limitation, all principal,
      interest and fees related to the Notes), and (ii) the Collateral Agent will,
      upon each Pledgor’s request and at each such Pledgor’s expense, (A) return to
      such Pledgor such of the Collateral (to the extent delivered to the Collateral
      Agent) as shall not have been sold or otherwise disposed of or applied pursuant
      to the terms hereof, and (B) execute and deliver to such Pledgor, without
      recourse, representation or warranty, such documents as such Pledgor shall
      reasonably request to evidence such termination.

     

    (f)  The
      internal laws, and not the laws of conflicts, of New York shall govern the
      enforceability and validity of this Agreement, the construction of its terms
      and
      the interpretation of the rights and duties of the parties, except as required
      by mandatory provisions of law and except to the extent that the validity and
      perfection or the perfection and the effect of perfection or non-perfection
      of
      the security interest and Lien created hereby, or remedies hereunder, in respect
      of any particular Collateral are governed by the law of a jurisdiction other
      than the State of New York.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (g)  Each
      party to this Agreement hereby irrevocably and unconditionally submits, for
      itself and its property, to the exclusive jurisdiction of the United States
      District Court for the Southern District of New York sitting in Manhattan or
      the
      Commercial Division, Civil Branch of the Supreme Court of the State of New
      York
      sitting in New York County in connection with any suit, action or proceeding
      directly or indirectly arising out of, under or in connection with this
      Agreement or the other Transaction Documents or the transactions contemplated
      hereby or thereby.  No party to this Agreement may move to (i)
      transfer any such suit, action or proceeding brought in such New York court
      or
      federal court to another jurisdiction, (ii) consolidate any such suit, action
      or
      proceeding brought in such New York court or federal court with a suit, action
      or proceeding in another jurisdiction or (iii) dismiss any such suit, action
      or
      proceeding brought in such New York court or federal court for the purpose
      of
      bringing the same in another jurisdiction.  Each party to this
      Agreement agrees that a final judgment in any such suit, action or proceeding
      shall be conclusive and may be enforced in any other jurisdiction by suit on
      the
      judgment or in any other manner provided by law.  Each party to this
      Agreement hereby irrevocably and unconditionally waives, to the fullest extent
      it may legally and effectively do so, any objection which it may now or
      hereafter have to the laying of venue of any suit, action or proceeding arising
      out of or relating to this Agreement or the other Transaction Documents, in
      any
      New York court sitting in the County of New York or any federal court sitting
      in
      the Southern District of New York.

     

    (h)  Each
      Pledgor irrevocably consents to the service of process of any of the aforesaid
      courts in any such action, suit or proceeding by the mailing of copies thereof
      by registered or certified mail (or any substantially similar form of mail),
      postage prepaid, to such Pledgor at its address provided herein, such service
      to
      become effective when received or 10 days after such mailing, whichever first
      occurs.

     

    (i)  Nothing
      contained herein shall affect the right of the Collateral Agent to serve process
      in any other manner permitted by law or commence legal proceedings or otherwise
      proceed against any Pledgor or any property of any Pledgor in any other
      jurisdiction.

     

    (j)  Each
      Pledgor irrevocably and unconditionally waives any right it may have to claim
      or
      recover in any legal action, suit or proceeding referred to in this Section
      any
      special, exemplary, punitive or consequential damages.

     

    (k)  EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR
      PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
      THIS AGREEMENT OR OTHER TRANSACTION DOCUMENTS.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (l)  The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.  The language used in this Agreement will be deemed to be the
      language chosen by the parties to express their mutual intent, and no rules
      of
      strict construction will be applied against any party.

     

    (m)  This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which shall be deemed to be an
      original, but all of which taken together shall constitute one and the same
      agreement.

     

    (n)  All
      of
      the obligations of the Pledgors hereunder are joint and several.  The
      Collateral Agent may, in its sole and absolute discretion, enforce the
      provisions hereof against any of the Pledgors and shall not be required to
      proceed against all Pledgors jointly or seek payment from the Pledgors
      ratably.  In addition, the Collateral Agent may, in its sole and
      absolute discretion, select the Collateral of any one or more of the Pledgors
      for sale or application to the Obligations, without regard to the ownership
      of
      such Collateral, and shall not be required to make such selection ratably from
      the Collateral owned by all of the Pledgors.  The release or discharge
      of any Pledgor by the Collateral Agent shall not release or discharge any other
      Pledgor from the obligations of such Person hereunder.

     

    

    [Signature
      Page Follows]

     

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    In
      Witness Whereof, each Pledgor has caused this Agreement to be executed and
      delivered by its officer thereunto duly authorized, as of the date first above
      written.

     

    
      	 	
              MOHEN,
                INC.

            	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	
              Name: 
                Orville Hagler

            	 
	 	 	
              Title:
                Corporate Secretary

            	 
	 	 	 	 
	 	 	 	 
	 	PLEDGORS:	 
	 	 	 	 

    

     

    
      	 	
              MOHEN,
                INC.

            	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	
              Name:
                Orville Hagler

            	 
	 	 	
              Title:
                Corporate Secretary

            	 
	 	 	 	 

    

    
      	 	
              ANTAEUS
                CAPITAL PARTNERS.

            	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

    

     

     

    

    ACCEPTED
      BY:

    

    GOTTBETTER
      CAPITAL FINANCE, LLC

    as
      Collateral Agent

    

    

    By:           __________________________

    Name:

    Title:

     

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      I TO PLEDGE AGREEMENT

     

    Pledged
      Shares

     

    
      	
              Pledgor

            	
               

              Number
                of Shares

            	
               

              Class

            	
              Certificate

              No.(s)

            
	
              Mohen,
                Inc.

            	
              1,840,000

            	
              Class
                A Common

            	
              42

            
	 	 	 	 
	
              Antaeus
                Capital Partners

            	
              153,847

            	
              Preferred
                Class A

            	
              77

            
	 	 	 	 
	
              Antaeus
                Capital Partners

            	
              600,000

            	
              Class
                A Common

            	
              52

            

    

    

    

    
 

     

     

    17Unassociated Document

    
      Exhibit
        4.10

       

      AMENDMENT
        NO. 1 TO SECURITY AGREEMENT

       

      AMENDMENT
        NO. 1 TO THE SECURITY AGREEMENT (this “Amendment”), dated as of August ___, 2007
        made by MOHEN, INC. d/b/a SPIRAL FROG, a Delaware corporation (the “Company”),
        in favor of Gottbetter Capital Finance, LLC in its capacity as collateral
        agent
        (in such capacity, the “Collateral Agent”) for the “Buyers” party to a certain
        Amended and Restated Purchase Agreement, dated August 6, 2007.

       

      WITNESSETH:

       

      WHEREAS,
        the Company and the Collateral Agent for the benefit of each of the Buyers
        are
        parties to a Security Agreement, dated March ___, 2007 (hereinafter the
“Security Agreement”); and

       

      WHEREAS,
        the Company and the Collateral Agent desire to amend the Security Agreement
        as
        hereinafter set forth.

       

      NOW,
        THEREFORE, the parties hereto agree as follows:

       

      
        	
                 

              	
                1.

              	
                Section
                  2 shall be amended to include a new subsection (f), which shall
                  read as
                  follows:

              

      

       

      “(f)
        all
        Equipment;” and

       

      the
        proviso at the end of Section 2 referencing the Equipment shall be deleted
        in
        its entirety.

       

      
        	
                 

              	
                2.

              	
                Subsections
                  (f) through (p) of Section 2 of the Security Agreement shall accordingly
                  be re-lettered following the inclusion of a new subsection (f)
                  to the
                  Security Agreement.

              

      

       

      
        	
                 

              	
                3.

              	
                Except
                  as specifically provided in and modified by this Amendment, the
                  Security
                  Agreement is in all other respects hereby ratified and confirmed
                  and
                  references to the Security Agreement shall be deemed to refer to
                  the
                  Security Agreement as modified by this
                  Amendment.

              

      

       

      
        	
                 

              	
                4.

              	
                This
                  Amendment may be signed in any number of counterparts with the
                  same effect
                  as if all parties to this Amendment signed the same
                  counterpart.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      IN
        WITNESS WHEREOF, the undersigned have executed this Amendment as of the day
        and
        year first above written.

       

       

       

    

     

    
      	 	MOHEN,
              INC.	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	 	Orville
              Hagler, Corporate
              Secretary	 
	 	 	 	 
	 	 	 	 

    

     

    
      	 	
              GOTTBETTER
                CAPITAL FINANCE, LLC 

              as
                Collateral Agent

            	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

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