Document:

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                                                                 EXHIBIT 10.12

                               SECURITY AGREEMENT

         SECURITY AGREEMENT, dated as of April __ 2000, between COLLECTIBLE
CONCEPTS GROUP, INC., a Delaware corporation (the "Company"), and the secured
parties signatory hereto and their respective endorsees, transferees and assigns
(collectively, the "Secured Party").

                              W I T N E S S E T H:
                               -------------------

         WHEREAS, pursuant to a Secured Convertible Debenture Purchase
Agreement, dated the date hereof among Company and the Secured Party (the
"Purchase Agreement"), Company has agreed to issue to the Secured Party and the
Secured Party has agreed to purchase from Company an aggregate principal amount
of $400,000 of Company's 10% Secured Convertible Debentures (the "Debentures"),
which are convertible into shares of Company's Class A Common Stock, no par
value (the "Common Stock"); and

         WHEREAS, in order to induce the Secured Party to purchase the
Debentures, Company has agreed to execute and deliver to the Secured Party this
Agreement for the benefit of the Secured Party and to grant to it a first
priority security interest in certain property of Company to secure the prompt
payment, performance and discharge in full of all of Company's obligations under
the Debentures.

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

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

                  (a) "Warrants" means the Company's Class A Warrants, entitling
the holders thereof to purchase an aggregate of 4,000,000 shares of Common
Stock.

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

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

                           (ii)  All Inventory of the Company; and

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

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

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

                  (c) "Company" shall mean, collectively, Company and all of the
subsidiaries of Company.

                  (d) "Obligations" means all of the Company's obligations under
this Agreement, the Debentures and the Warrants, in each case, whether now or
hereafter existing, voluntary or involuntary, direct or indirect, absolute or
contingent, liquidated or unliquidated, whether or not jointly owed with others,
and whether or not from time to time decreased or extinguished and later
increased, created or incurred, and all or any portion of such obligations or
liabilities that are paid, to the extent all or any part of such payment is
avoided or recovered directly or indirectly from the Secured Party as a

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preference, fraudulent transfer or otherwise as such obligations may be amended,
supplemented, converted, extended or modified from time to time.

                  (e) INTENTIONALLY OMITTED.

                  (f) INTENTIONALLY OMITTED.

                  (g) "Two Thirds-in-Interest"means one or more of the secured
party signatories hereto holding in excess of 66.66% of the aggregate principal
amount of the Debentures outstanding, determined on a cumulative basis.

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

         2. Grant of Security Interest. As an inducement for the Secured Party
to purchase the Debentures and to secure the complete and timely payment,
performance and discharge in full, as the case may be, of all of the
Obligations, the Company hereby, unconditionally and irrevocably, pledges,
grants and hypothecates to the Secured Party, a continuing security interest in,
a first lien upon and a right of set-off against all of the Company's right,
title and interest of whatsoever kind and nature in and to the Collateral (the
"Security Interest").

         3. Representations, Warranties, Covenants and Agreements of the
Company. The Company represents and warrants to, and covenants and agrees with,
the Secured Party as follows:

                  (a) The Company has the requisite corporate power and
authority to enter into this Agreement and otherwise to carry out its
obligations thereunder. The execution, delivery and performance by the Company
of this Agreement and the filings contemplated therein have been duly authorized
by all necessary action on the part of the Company and no further action is
required by the Company.

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

                  (c) Except as specified in Schedule 3(c), the Company is the
sole owner of the Collateral (except for non-exclusive licenses granted by the
Company in the ordinary course of business), free and clear of any liens,
security interests, encumbrances, rights or claims, and is fully authorized to
grant the Security Interest in and to pledge the Collateral. There is not on
file in any governmental or regulatory authority, agency or recording office an
effective financing statement, security agreement, license or transfer or any
notice of any of the foregoing (other than those that have been filed in favor
of the Secured Party pursuant to this Agreement) covering or affecting any of
the Collateral. So long as this Agreement shall be in effect and other than
pursuant to Section 11 hereof, the Company shall not execute and shall not

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knowingly permit to be on file in any such office or agency any such financing
statement or other document or instrument (except to the extent filed or
recorded in favor of the Secured Party pursuant to the terms of this Agreement).

                  (d) Except as specified in Schedule 3(d), no written claim has
been received that any Collateral or the Company's use of any Collateral
violates the rights of any third party. There has been no adverse decision to
the Company's claim of ownership rights in or exclusive rights to use the
Collateral in any jurisdiction or to the Company's right to keep and maintain
such Collateral in full force and effect, and there is no proceeding involving
said rights pending or, to the best knowledge of the Company, threatened before
any court, judicial body, administrative or regulatory agency, arbitrator or
other governmental authority.

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

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

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

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

                  (i) The Company shall at all times maintain the liens and
Security Interest provided for hereunder as valid and perfected first priority
liens and security interests in the Collateral in favor of the Secured Party

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until this Agreement and the Security Interest hereunder shall be terminated
pursuant to Section 11. The Company hereby agrees to defend the same against any
and all persons. The Company shall safeguard and protect all Collateral for the
account of the Secured Party. At the request of the Secured Party, the Company
will sign and deliver to the Secured Party at any time or from time to time one
or more financing statements pursuant to the UCC (or any other applicable
statute) in form reasonably satisfactory to the Secured Party and will pay the
cost of filing the same in all public offices wherever filing is, or is deemed
by the Secured Party to be, necessary or desirable to effect the rights and
obligations provided for herein. Without limiting the generality of the
foregoing, the Company shall pay all fees, taxes and other amounts necessary to
maintain the Collateral and the Security Interest hereunder, and the Company
shall obtain and furnish to the Secured Party from time to time, upon demand,
such releases and liens which may be required to maintain the priority of the
Security Interest hereunder.

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

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

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

                  (m) The Company shall promptly execute and deliver to the
Secured Party such further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates and
assurances and take such further action as the Secured Party may from time to
time request and may in its sole discretion deem necessary to perfect, protect
or enforce its security interest in the Collateral.

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

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

                  (p) The Company shall promptly notify the Secured Party in
sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Collateral and of any other
information received by the Company that may materially affect the value of the

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Collateral, the Security Interest or the rights and remedies of the Secured
Party hereunder.

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

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

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

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

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

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

                  (d) Any breach or default under the Warrants.

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

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

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

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premises and facilities for the purpose of the Secured Party taking possession
of, removing or putting the Collateral in saleable or disposable form.

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

         7. Applications of Proceeds. The proceeds of any such sale, lease or
other disposition of the Collateral hereunder shall be applied first, to the
expenses of retaking, holding, storing, processing and preparing for sale,
selling, and the like (including, without limitation, any taxes, fees and other
costs incurred in connection therewith) of the Collateral, to the reasonable
attorneys' fees and expenses incurred by the Secured Party in enforcing its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral, and then to satisfaction of the Obligations, and to the payment of
any other amounts required by applicable law, after which the Secured Party
shall pay to the Company any surplus proceeds. If, upon the sale, license or
other disposition of the Collateral, the proceeds thereof are insufficient to
pay all amounts to which the Secured Party is legally entitled, secured parties
signatory hereto will be entitled to their pro rata portion of such proceeds
(determined by reference to the aggregate principal amount of Debentures
outstanding, determined on a cumulative basis), and the Company will be liable
for the deficiency, together with interest thereon, at the rate of 17% per annum
(the "Default Rate"), and the reasonable fees of any attorneys employed by the
Secured Party to collect such deficiency. To the extent permitted by applicable
law, the Company waives all claims, damages and demands against the Secured
Party arising out of the repossession, removal, retention or sale of the
Collateral, unless due to the gross negligence or willful misconduct of the
Secured Party.

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

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exercise or enforcement of any of the rights of the Secured Party under the
Debentures. Until so paid, any fees payable hereunder shall be added to the
principal amount of the Debentures and shall bear interest at the Default Rate.

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

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

         11. Term of Agreement and Subordination of Security Interest. (a) This
Agreement and the Security Interest shall terminate on the date on which all
payments under the Debentures have been made in full and all other Obligations
have been paid or discharged. Notwithstanding the foregoing and anything to the
contrary contained herein, in no event shall this Agreement or the Security
Interest terminate prior to the date that an Underlying Shares Registration
Statement is first declared effective by the Securities and Exchange Commission.

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                  (b) INTENTIONALLY OMITTED.

                  (c) Upon any termination of the Security Interest pursuant to
this Section 11, the Secured Party, at the request and at the expense of the
Company, will join in executing an appropriate amendment or termination
statement (as the case may be) with respect to any financing statement executed
and filed pursuant to this Agreement.

          12. Power of Attorney; Further Assurances. (a) The Company authorizes
the Secured Party, and does hereby make, constitute and appoint it, and its
respective officers, agents, successors or assigns with full power of
substitution, as the Company's true and lawful attorney-in-fact, with power, in
its own name or in the name of the Company, to, after the occurrence and during
the continuance of an Event of Default, (i) endorse any notes, checks, drafts,
money orders, or other instruments of payment (including payments payable under
or in respect of any policy of insurance) in respect of the Collateral that may
come into possession of the Secured Party; (ii) to sign and endorse any UCC
financing statement or any invoice, freight or express bill, bill of lading,
storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with accounts, and other documents
relating to the Collateral; (iii) to pay or discharge taxes, liens, security
interests or other encumbrances at any time levied or placed on or threatened
against the Collateral; (iv) to demand, collect, receipt for, compromise, settle
and sue for monies due in respect of the Collateral; and (v) generally, to do,
at the option of the Secured Party, and at the Company's expense, at any time,
or from time to time, all acts and things which the Secured Party deems
necessary to protect, preserve and realize upon the Collateral and the Security
Interest granted therein in order to effect the intent of this Agreement, the
Debentures and the Warrants all as fully and effectually as the Company might or
could do; and the Company hereby ratifies all that said attorney shall lawfully
do or cause to be done by virtue hereof. This power of attorney is coupled with
an interest and shall be irrevocable for the term of this Agreement and
thereafter as long as any of the Obligations shall be outstanding, subject to
termination under Section 11.

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

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

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

         If to the Company:
                                  1600 Lower State Road
                                  Doylestown, PA 18901
                                  Fax 215-491-1079

         If to the Secured Party, to the address set forth below such Secured
Party's name on the signatures pages hereto.

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

         15. Actions by the Secured Party. Any action required or permitted
hereunder to be taken by or on behalf of the secured parties signatory hereto
shall, for such action to be valid, require the approval of the Two
Thirds-in-Interest prior to the taking of such action. If the consent, approval
or disapproval of the secured parties signatory hereto is required or permitted
pursuant to this Agreement, such consent, approval or disapproval shall only be
valid if given by the Two Thirds-in-Interest.

         16.      Miscellaneous.

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

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

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

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

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

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

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

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

                  (i) EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT

                                      -11-
<PAGE>

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

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

                              * * * * * * * * * * *

                                      -12-
<PAGE>

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

                                    COLLECTIBLE CONCEPTS GROUP, INC.

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

                                    Secured Parties:
                                    NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                                    By: FIRST STREET MANAGER II, LLC

                                    By:
                                       ----------------------------------------
                                    Name:  Glenn A. Arbeitman
                                    Title: Manager

                                    155 First Street, Suite B
                                    Mineola, New York 11501
                                    Facsimile No.: 516-739-7115

                                    Debentures Purchase Price:        $175,000

                                    AJW PARTNERS, LLC
                                    By: SMS GROUP, LLC

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

                                    155 First Street, Suite B
                                    Mineola, New York 11501
                                    Facsimile No.: 516-739-7115

                                    Debentures Purchase Price:        $175,000

                                    EQUILIBRIUM EQUITY, LLC

                                    By:
                                       ----------------------------------------
                                    Name: Corey S. Ribotsky

                                    155 First Street, Suite B
                                    Mineola, New York 11501
                                    Facsimile No.: 516-739-7115
                                    Debentures Purchase Price:         $50,000

                                      -13-
<PAGE>

                                   SCHEDULE A

Principal Place of Business of the Company:
------------------------------------------

Locations Where Collateral is Located or Stored:
-----------------------------------------------

List of subsidiaries of the Company:
------------------------------------

                                      -14-<PAGE>

                                                                 EXHIBIT 10.13

                         BUSINESS SEPARATION AGREEMENT

         THIS AGREEMENT is dated this 28th day of April, 1999, and is entered
into by and between USA SPORTS GROUP, INC. ("USAS") and ERUDITE CONSULTING
(sometimes referred to herein as the "Lipschutz Entities"), and SD STUDIOS
("SDS") (sometimes referred to herein as the "Dymszo Entity"). PAUL LIPSCHUTZ
and STEPHEN DYMSZO, have joined in executing this Agreement for the limited
purposes specifically stated herein.

         NOW, THEREFORE, in consideration of their mutual covenants, and for
other good and valuable consideration, the adequacy of which is hereby
acknowledged and agreed, and intending to be legally bound hereby, the parties
hereto hereby agree as follows:

            1. At or prior to the signing of this Agreement, Dymszo will tender
to USAS Steve Dymszo's shares ("Dymszo") in USAS. Simultaneously, Dymszo will
resign from any and all positions he may have as director, officer or employee
of USAS. Simultaneously, Dymszo's wife, Linda Dymszo, will tender any shares, or
interest in shares, she may have in USAS, and will resign from any and all
positions she may have as a director, officer or employee of USAS.

            2. At or prior to the signing of this Agreement, Lipschutz will
tender to Dymszo all of Lipschutz's shares in SD Studios (SDS). At the same
time, Lipschutz will resign from all positions he may have as director, officer
or employee of SDS.

            3. Subject to paragraph 31 Dymszo will agree to complete the
manufacture of approximately forty five (45) briefcases at a location to be
chosen by Dymszo and promptly communicated to Lipschutz. Dymszo will do so on
the following terms and conditions. Dymszo will complete approximately eight (8)
briefcases per business week. At the end of each day, he will fax Lipschutz
certification of the number of briefcases finished and ready to be shipped. USAS
will then provide, in immediately available funds, payment in full for said
briefcases by the morning of the next business day. One Hundred Dollars
($100.00) per each completed case. Upon receipt of payment in cash or cash
equivalency, Dymszo will cause the shipment of the briefcases to take place.
USAS will be entitled to any profit realized with respect to the sale of said
briefcases. USAS will be responsible for any and all expenses for packaging and
shipping the cases.

            4. In addition to the briefcases referenced above, there are
approximately sixty (60) additional attaches which may be available for sale,
pending the acquisition of purchasers for the same. Dymszo agrees to endeavor to
market to sell said attaches in accordance with paragraph #7. With respect to
each additional attache sold out of the proceeds of said sale, One Hundred
Dollars ($100.00) will be paid to USAS, and Twenty Five Dollars ($25.00) will be
paid to USAS's lender, Michael Bachurski.

<PAGE>

            5. USAS shall generate a payment summary, showing all vendors
amounts paid and balances due as of the date of this Agreement. With respect to
the various vendors for whom there is an outstanding balance owed by USAS or SDS
with respect to products manufactured by SDS, and where said product or the
inventory for the same is to be retained by Dymszo and removed from the USAS
corporate offices, Dymszo will take the following action. He will contact all
the vendors in question (the four identified on Exhibit "A" attached hereto) and
will make arrangements with them, such that SDS will assume its prorated portion
of the outstanding balance, and USAS assume its prorated portion of the
outstanding balance, and Dymszo will obtain written assurances from said vendors
that they will hold Lipschutz and USAS harmless from any portion of the balance
assumed by SDS, with respect to said products. Once satisfactory agreements have
been entered into with the applicable vendors generally in accordance with the
terms of this paragraph, Dymszo shall be entitled to remove from the premises
all inventory related to said products, and shall thereafter be entitled to
attempt to obtain any necessary license(s) to market said products and business
capital so as to be in a position to fabricate, market and sell said products.
In the event that SDS shall not have received a commitment for the issuance of
the relevant licenses, or in the event that marketing shall not have commenced
by Dymszo, SDS, or any other affiliate of Dymszo, within six (6) months from the
date of the execution of this Agreement, USAS shall be entitled to reclaim all
said inventory, and shall thereafter be entitled to seek to obtain a license for
James Bond merchandise, and Dymszo, SDS and all Dymszo affiliates shall
cooperate with USAS in returning said inventory, and USAS shall thereafter be
entitled to attempt to market and sell said inventory or completed products with
respect thereto.

            6. On all future sales to the existing client base generated by the
marketing efforts of Lipschutz Entities, including USAS, Dymszo, SDS and all
Dymszo affiliates jointly and severally agree to pay a five percent (5%) royalty
to USAS on the first One Hundred Thousand Dollars ($100,000.00) of sales,
whereupon the royalty shall increase to six percent (6%) on the next One Hundred
Fifty Thousand Dollars ($150,000.00) of sales, whereupon the royalty shall
decrease again to five percent (5%) on sales above Two Hundred Fifty Thousand
Dollars ($250,000.00), which such royalty obligation to expire five (5) years
from the date of this Agreement.

            7. (A) Dymszo, SDS and/or Dymszo's affiliates shall be solely liable
and responsible for all debts, obligations, undertakings, liabilities,
commitments or claims of or against (collectively referred to herein as
"Obligations") SDS which accrued or became due prior to January 1, 1998, or
after the date of execution of this Agreement, and SDS and its successors and
assigns shall indemnify, and hold harmless, USAS, Erudite, Lipschutz and any
Lipschutz affiliates from and against any claims arising out of said
Obligations. Neither Dymszo, SDS nor any other Dymszo affiliate shall be
responsible for any other Obligations of SDS occurring during the period January
1, 1998 through the effective date of this Agreement, nor for any Obligations of
USAS or Erudite or any other Lipschutz affiliates.

                                       2
<PAGE>

               (B) USAS shall be solely liable for all Obligations which
occurred, arose or accrued during the period January 1, 1998 through the date of
the execution of this Agreement, and USAS and Erudite and their successors and
assigns, hereby indemnify, and hold harmless, Dymszo, SDS, and all other Dymszo
affiliates, from and against any and all claims which may at any time arise out
of, or in connection with, said Obligations. Neither Lipschutz, USAS, Erudite,
or any other Lipschutz Entities shall be responsible for any Obligations of SDS
which occurred, arose or accrued prior to January 1, 1998, or after the
execution of this Agreement, nor for any other debts, obligations, commitments,
undertakings or liabilities of Dymszo, SDS, or any other Dymszo affiliates.

               (C) Except as specifically set forth in this Agreement, Dymszo,
SDS and all Dymszo affiliates, on behalf of themselves, their heirs, executors,
administrators, successors and assigns, do hereby remise, release, acquit and
forever discharge Lipschutz, USAS, Erudite, and all other Lipschutz entities,
their insurance carriers, predecessors, successors and assigns, officers,
directors, owners, employees and agents, from and against any and every claim,
demand, right or cause of action, on account of or in any way arising out of the
business relationship between and/or among any two or more of the parties
hereto, whether known or unknown, including but not limited to all claims
arising out of or related to any agreements entered into by, between or among
the parties prior to the date hereof, any stock or other equity interest of any
party held in any other party hereof, any employment relationship, or other
consulting or similar arrangement at any time entered into by and between the
parties, it being the intention of the parties that this release shall be a
complete release, in full, of all claims identified herein which may be
released, except as expressly set forth in this Agreement.

               (D) Except as specifically set forth in this Agreement,
Lipschutz, USAS, Erudite, and all other Lipschutz entities, on behalf of
themselves, their heirs, executors, administrators, successors and assigns, do
hereby remise, release, acquit and forever discharge Dymszo, SDS and all Dymszo
affiliates, their insurance carriers, predecessors, successors and assigns,
officers, directors, owners, employees and agents, from and against any and
every claim, demand, right or cause of action, on account of or in any way
growing out of or arising out of the business relationship between and/or among
any two or more of the parties hereto, whether known or unknown, including but
not limited to all claims arising out of or related to any agreements entered
into by, between or among the parties prior to the date hereof, any stock or
other equity interest of any party held in any other party hereof, any
employment relationship, or other consulting or similar arrangment at any time
entered into by and between the parties, it being the intention of the parties
that this release shall be a complete release, in full, of all claims identified
herein which may be released, except as expressly set forth in this Agreement.

            8. Before the date of this Agreement, USAS will remove Dymszo's
and/or SDS's name from the Sprint cellular phone bill and provide written
documentation of same.

            9. USAS will provide written evidence to Dymszo that Dymszo's
friends (listed on Exhibit "B") who invested in the company were issued USAS
stock.

                                       3

<PAGE>

            10. USAS will deliver to Dymszo at the date of this Agreement all
product slides obtained from the USAS ad agency.

            11. USAS will deliver to Dymszo at the date of this Agreement all
still photographs, instruction manuals, "top secret" stamper dossier materials,
customer order forms, and miscellaneous SDS files brought to the office by SDS.

            12. All dossiers in the office which match up to briefcases will be
issued to Dymszo for completion of said briefcases. All prototype dossiers will
also be returned to Dymszo at the date of this Agreement.

            13. At the date of this Agreement, all "originals," prototypes and
mockups for any Bond or Star Trek product which are needed will be delivered to
Dymszo.

            14. At the date of this Agreement, Dymszo will be given the schedule
boards on the wall.

            15. At the date of this Agreement, Dymszo will be entitled to take
with him the Thomas Registers.

            16. At the date of this Agreement, the checkbook and debit card for
SD Studios will be changed so as to remove Lipschutz from the account. A
corporate resolution will be signed by Marilyn Lonker removing her as a
signatory on the First Union SDS Checking account.

            17. The parties have agreed to the following arrangements such that
Ed Maggiani will be repaid the One Thousand Six Hundred Dollar ($1,600.00) loan,
which was paid to USAS in order to finance a business trip to California. Dymszo
shall build (3) additional briefcases in addition to the forty-five (45)
briefcases referenced in paragraph 3. He will complete said briefcases at the
rate of approximately one(1) every three (3) weeks, and the net proceeds from
the sale of said briefcases will be utilized by USAS to reduce the obligation to
Maggiani. In this way, USAS will repay the One Thousand Six Hundred Dollar
($1,600.00) loan from Ed Maggiani within three (3) months from the date of this
Agreement.

            18. Effective as of the date of this Agreement, Dymszo shall cancel
all liability insurance, car insurance and property insurance from Erie
Insurance Group, covering all of USAS interests.

            19. Effective as of the date of this Agreement, the LP53 air gun and
frame will be given to Dymszo.

                                       4

<PAGE>

            20. The "James Bond" website will be deleted from the Internet, and
no further promotional activities will be engaged in by USAS with respect to any
James Bond, Star Trek electronic prop replicas, or Star Wars prop replicas
marketing, subject to the provisions of paragraph 5 hereof.

            21. Effective as of the date of this Agreement, the photocopier
leased from Copelco Capital in the name of SD Studios will be turned over to
Dymszo and/or SDS. Dymszo and/or SDS will assume the lease, but USAS shall pay
all outstanding invoices up to the date of this Agreement with respect to said
lease; to bring it current, and shall provide written documentation of this
payment.

            22. USAS will assume all liability for any and all Heritage Business
Systems' bills related to the copier incurred prior to this Agreement.

            23. USAS shall assume and be responsible for any refund and any
subsequent claims asserted by Neil Trickel in relation to Six Hundred Dollars
($600.00) collected for product that cannot be delivered. Mr. Trickel has
requested a refund of the above amount.

            24. Effective as of the date of this Agreement, Dymszo and/or SDS
will take the Polaroid spectra cameras on consignment. USAS will get paid first
Three Hundred Dollars ($300.00), then Ed will receive additional funds until he
is paid in full. If there is any remaining monies or profit after said payments,
Dymszo, SDS, or the relevant Dymszo affiliate shall be entitled to same.

            25. Effective as of the date of this Agreement, Dymszo, SDS or the
relevant Dymszo affiliate shall be entitled to take with him and remove from the
premises and thereafter be solely entitled to all equipment and related tangible
personal property which he brought with him to the merged entity, including his
computer, drill press, hand tools and related items, all of which are detailed
on Exhibit "C" attached hereto and incorporated herein by reference.

            26. Except as provided herein, all equipment or other tangible
personal property purchased by USAS after the merger shall be retained by USAS.

            27. USAS shall be responsible for the approximately Fourteen Hundred
Dollars ($1,400.00) in medical bills incurred by Dymszo and his family as a
result of his health insurance lapsing due to nonpayment of premium. Payment
with respect to the approximately Seven Hundred Twenty Two Dollars ($722.00) of
dental bills shall be made at the rate of One Hundred Dollars ($100.00) per
month following the date of this Agreement.

            28. The parties shall enter into a confidentiality, nondisclosure
and limited noncomplete agreement with one another. In particular, in connection
therewith, Dymszo shall agree not to compete with Lipschutz on the Austin Powers
Line, and Lipschutz shall agree with Dymszo not to compete on the Star Trek,
Star Wars or James Bond lines (except for the products referenced in paragraph
20), and further subject to the provisions of paragraph 5. Further, Lipschutz
shall agree not to market any competitive product to any direct customers (as
opposed to wholesalers) on the mailing list attached hereto as Exhibit "D".

                                       5

<PAGE>

            29. Except as specifically referenced herein, this Agreement shall
contain all the essential terms and conditions, covenants and undertakings of
the parties with respect to the transactions contemplated hereby. This Agreement
shall be governed by, and construed in accordance with, the laws of the
Commonwealth of Pennsylvania. In the event that either party has any claim or
cause of action or arising out of the terms of this Agreement or the
transactions contemplated hereby, the parties agree to submit such claim, cause
of action or controversy to binding arbitration to be held either in Montgomery
County or Bucks County Pennsylvania and to be conducted in accordance with the
rules and procedures of the American Arbitration Association.

            30. Upon the execution of this Agreement, and the transfer of stock
as contemplated hereby, USAS and SD Studios shall thereafter be two, separate
and legally distinct entities, with no equity ownership in common, and that the
two entities shall thereafter operate independently and autonomously.

            31. USAS shall pay for any additional expenses incurred by Dymszo to
complete the forty five (45) attache cases. These expenses will cover the
purchase of miscellaneous hardware, magnets, brass number plates, etc. required
to complete the cases. This shall also include payments to the leather company
for the above cases.

            32. USAS will be responsible for any and all cancellations and/or
chargebacks of attache orders except where such cancellations or chargebacks are
due to the failure of Dymszo to construct the attaches in a workman like manner,
and within a reasonable time period. USAS will refund in full, any customers who
have prepaid for the attaches and wish to be refunded due to the delivery delay.
Dymszo's responsibility will be limited to completing the approximately forty
(40) outstanding orders in a reasonable time frame pursuant to paragraph 7
above.

            33. USAS will incur the cost of fulfilling any and all JB
Collectors' Society CLub packages for which USAS collected dues up to the date
of this termination. USAS will provide written documentation to Dymszo as to the
names and address of all Club Members who have received these fulfillments along
with the date of shipment (listed on Exhibit "E").

            34. This Agreement shall constitute a legally binding agreement of
the parties. It shall be binding upon the parties, their heirs, successors,
assigns and all entities of which they are now, or may hereafter be, principals.

                                       6

<PAGE>

            IN WITNESS WHEREOF, the parties hereto by their duly appointed
officers thereunto duly appointed, have executed, or have caused this Agreement
to be executed, on the date set forth below.

Dated:________________

Attest:                                     USAS SPORTS GROUP, INC.

______________________                      By: /s/ Paul S. Lipschutz
                                               -------------------------

                                            Name: Paul S. Lipschutz
                                                  ----------------------

                                            Title: Pres.
                                                  -----------------------

Attest:                                     ERUDITE CONSULTING

______________________                      By: /s/ Paul S. Lipschutz
                                               -------------------------

                                            Name: Paul S. Lipschutz
                                                  ----------------------

                                            Title: Mtg. Dir.
                                                  -----------------------

Attest:                                     SD STUDIOS

______________________                      By: /s/ Stephen Dymszo
                                               -------------------------

                                            Name: Stephen Dymzo
                                                  ----------------------

                                            Title: Pres.
                                                  -----------------------

Witness:

/s/ Jay Lipschutz                           /s/ Stephen Dymszo
---------------------                       -------------------------------
                                            STEPHEN DYMSZO

                                       7

<PAGE>

Witness:

/s/ Jay Lipschutz                           /s/ Linda Dymszo
---------------------                       -------------------------------
                                            LINDA DYMSZO
                                            (Linda Dymszo executing this
                                            Agreement solely with respect with
                                            her undertakings set forth in
                                            paragraph 1 of this Agreement)

Witness:

/s/ Jay Lipschutz                          /s/ Paul Lipschutz
---------------------                      ---------------------------------
                                           PAUL LIPSCHUTZ, Pr.

<PAGE>
                                  EXHIBIT "A"

                       VENDORS TO BE CONTACTED TO CONFIRM
                       ----------------------------------
                            NEW PAYMENT ARRANGEMENTS
                            ------------------------

John R. Bromley (Machine Shop)      (215) 822-7723
Contact: Jason Bromley
105 S. Bristol Road
Chalfont, PA 18914
--------------------------------------------------------------------------------

Montco Manufacturing                (215) 997-9708
Contact: Saju Thomas
1610 Bethlehem Pike
Hatfield, PA 19440
--------------------------------------------------------------------------------

Precision Finishing                 (215) 257-6862
Contact: Jeff Bell
708 Lawn Avenue
Sellersville, PA 18960
--------------------------------------------------------------------------------

The Leather Company                 (215) 243-2433
Contact: Steve Frank
5301 Tacony Street, Box 238
Philadelphia, PA 19137
--------------------------------------------------------------------------------

Also need status of payments for Nadeau Co., Erie Insurance, Laser Creations,
Coincraft, West Coast Video royalty.

<PAGE>

                                  EXHIBIT "B"

                LIST OF DYMSZO'S FRIENDS WHO HAVE ALSO INVESTED
                -----------------------------------------------
                                 IN THE COMPANY
                                 --------------

Denise Marie Taylor                2,000 shares/$500.00
210 Howland Street A
Redwood City, CA 94063
(650) 866-4727
--------------------------------------------------------------------------------

Gary Barth                         8,000 shares/$2,000.00
210 Howland Street A
Redwood City, CA 94063
(650) 866-8028
--------------------------------------------------------------------------------

Tom Gillen
1349 Park Drive, #5
Mountain View, CA 94040
(650) 655-8147
--------------------------------------------------------------------------------

Grace I. Apgar                     8,000 shares/$2,000.00
62 N. Main Street
Marlboro, NJ 07746
(908) 462-4088
--------------------------------------------------------------------------------

Michael & Donna Creager            4,000 shares/$1,000.00
451 Westfield Road
Baltimore, MD 21222
(410) 282-3976
--------------------------------------------------------------------------------

John C. Pisa-Relli                 __________shares/$2,000.00
6018 Stoddard Court, Apr. 302
Alexandria, VA 22315
(703) 719-9418
--------------------------------------------------------------------------------

Alan R. Cross (moved)              2,000 shares/$500.00
1224 Geneva Street
Glendale, CA 91207
(818) 956-5811
--------------------------------------------------------------------------------

Frank Cerney                       4,000 shares/$1,000.00
847 East 8th Street
Tuscon, AZ 85719
(520) 621-1281
--------------------------------------------------------------------------------

William Krewson                    ___________shares/$5,000.00
342 Haines Drive
North Wales, PA 19454
(215) 699-5323

<PAGE>
                                  EXHIBIT "C"

                LIST OF EQUIPMENT AND TANGIBLE PERSONAL PROPERTY
                ------------------------------------------------
                             TO BE TAKEN BY DYMSZO
                             ---------------------

1   Compac computer with laser printer and miscellaneous hardware

1   Drill press and drill bits

1   Grinder with related materials

1   Hard drill with changer

1   Dremel tool with miscellaneous parts

1   Belt Sander

2   Boxes of miscellaneous spray paint

Various hand tools, files, sandpaper and adhesives

1   Cut-off saw

3   Chains

2   Trash cans

1   Desk

1   Filing cabinet

3   Telephones

1   Copier

Casting rubber and resin

2   Card tables

1   Push broom

1   Filing cabinet and related files

3   Wall planners

<PAGE>

                                  EXHIBIT "D"

                         MAILING LIST OF SDS CUSTOMERS
                         -----------------------------

<PAGE>

                                  EXHIBIT "E"

            NAMES AND ADDRESS OF ALL CLUB MEMBERS WHO HAVE RECEIVED
            -------------------------------------------------------
                  FULFILLMENTS ALONG WITH THE DATE OF SHIPMENT
                  --------------------------------------------

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