Document:

Exhibit 10.2

EXHIBIT
10.2

AMENDED
AND RESTATED MASTER SECURITY AGREEMENT

To: Lee
Harrison Corbin, Attorney in-Fact for the Trust Under the Will of John
Svenningsenthe Trust

One North
Broadway

White
Plains, New York 10601

Date: May
18, 2005

To Whom
It May Concern:

This
Amended and Restated Master Security Agreement (this “Master Security
Agreement”) is being entered into in connection with the Trust’s (defined below)
agreement to advance an amount to Laurus Master Fund Ltd (“Laurus”), sufficient
to repay the remaining debt to Laurus in accordance with the terms of the
Assignment, Assumption and Release with Laurus, and in connection therewith,
Laurus has agreed to assign to the Trust all of Laurus’ rights under that
certain Securities Purchase Agreement, dated April 27, 2004, by and between the
Company (defined below) and Laurus, as amended and the Loan Documents, a defined
in the Securities Purchase Agreement (defined below), which includes that
certain Master Security Agreement, dated as of April 27, 2004, between Laurus
and the Company (the “Original Agreement”), such that the Trust shall stand in
the place of Laurus thereunder. In connection therewith, the Trust and the
Company now wish to amend and restate the Original Agreement as provided
herein.

1.    To secure
the payment of all Obligations (as hereafter defined), Sequiam Corporation, a
California corporation (the “Company”), each of the other undersigned parties
(other than Lee Harrison Corbin, Attorney in-Fact for the Trust Under the Will
of John Svenningsen, (“the Trust”) and each other entity that is required to
enter into this Master Security Agreement (each an “Assignor” and, collectively,
the “Assignors”) hereby assigns and grants to the Trust a continuing security
interest in all of the following property now owned or at any time hereafter
acquired by any Assignor, or in which any Assignor now have or at any time in
the future may acquire any right, title or interest (the "Collateral"): all
cash, cash equivalents, accounts, inventory, equipment, goods, documents,
instruments (including, without limitation, promissory notes), contract rights,
general intangibles (including, without limitation, payment intangibles and an
absolute right to license on terms no less favorable than those currently in
effect among our affiliates), chattel paper, supporting obligations, investment
property (including, without limitation, all equity interests owned by any
Assignor), letter-of-credit rights, trademarks and tradestyles, patents,
copyrights and other intellectual property in which any Assignor now have or
hereafter may acquire any right, title or interest, all proceeds and products
thereof (including, without limitation, proceeds of insurance) and all
additions, accessions and substitutions thereto or therefore. In the event any
Assignor wishes to finance the acquisition in the ordinary course of business of
any hereafter acquired equipment and have obtained a commitment from a financing
source to finance such equipment from an unrelated third party, the Trust agrees
to release its security interest on such hereafter acquired equipment so
financed by such third party financing source. Except as otherwise defined
herein, all capitalized terms used herein shall have the meaning provided such
terms in the Securities Purchase Agreement referred to below.

2.    The term
"Obligations" as used herein shall mean and include all debts, liabilities and
obligations owing by each Assignor to the Trust arising under, out of, or in
connection with: (i) that certain Securities Purchase Agreement dated as of the
date hereof by and between the Company and the Trust (the "Securities Purchase
Agreement"), (ii) that certain Amended, Restated and Consolidated Senior Secured
Term Note dated as of the date hereof made by the Company in favor of the Trust
(the "Term Note"), (iii) that certain Warrant dated as of the date hereof made
by the Company in favor of the Trust (the " Warrant"), (iv) that certain Amended
and Restated Subsidiary Guaranty dated as of the date hereof made by certain
Subsidiaries of the Company, (the “Subsidiary Guaranty”), (v) that certain
Registration Rights Agreement dated as of the date hereof by and between the
Company and the Trust (the "Registration Rights Agreement"), (vi) this Master
Security Agreement, (vii) that certain Amended and Restated Stock Pledge
Agreement dated as of the date hereof among the Company, certain subsidiaries of
the Company and the Trust (the “Stock Pledge Agreement”), and (viii) the
Subordination Agreement dated as of the date hereof among the Subordinated
Lenders, as defined therein, and the Purchaser (the “Subordination Agreement”),
(the Securities Purchase Agreement, the Term Note, the Warrant, the Registration
Rights Agreement, the Subsidiary Guaranty, this Master Security Agreement, the
Stock Pledge Agreement, and the Subordination Agreement, as each may be amended,
modified, restated or supplemented from time to time, are collectively referred
to as the "Documents"), and in connection with any documents, instruments or
agreements relating to or executed in connection with the Documents or any
documents, instruments or agreements referred to therein or otherwise, and in
connection with any other indebtedness, obligations or liabilities of any
Assignor to the Trust, whether now existing or hereafter arising, direct or
indirect, liquidated or unliquidated, absolute or contingent, due or not due and
whether under, pursuant to or evidenced by a note, agreement, guaranty,
instrument or otherwise, in each case, irrespective of the genuineness,
validity, regularity or enforceability of such Obligations, or of any instrument
evidencing any of the Obligations or of any collateral therefor or of the
existence or extent of such collateral, and irrespective of the allowability,
allowance or disallowance of any or all of the Obligations in any case commenced
by or against any Assignor under Title 11, United States Code, including,
without limitation, obligations or indebtedness of each Assignor for
post-petition interest, fees, costs and charges that would have accrued or been
added to the Obligations but for the commencement of such case

3.    Each
Assignor hereby jointly and severally represents, warrants and covenants to the
Trust that:

(a)    it is a
corporation, partnership or limited liability company, as the case may be,
validly existing, in good standing and organized under the respective laws of
its jurisdiction of organization set forth on Schedule A, and each Assignor will
provide the Trust thirty (30) days' prior written notice of any change in any of
its respective jurisdiction of organization;

2

(b)    its legal
name is as set forth in its respective Articles of Incorporation or other
organizational document (as applicable) as amended through the date hereof and
as set forth on Schedule A, and it will provide the Trust thirty (30) days'
prior written notice of any change in its legal name;

(c)    its
organizational identification number (if applicable) is as set forth on Schedule
A hereto, and it will provide the Trust thirty (30) days' prior written notice
of any change in any of its organizational identification number;

(d)    it is the
lawful owner of the respective Collateral and it has the sole right to grant a
security interest therein and will defend the Collateral against all claims and
demands of all persons and entities;

(e)    it will
keep its respective Collateral free and clear of all attachments, levies, taxes,
liens, security interests and encumbrances of every kind and nature
("Encumbrances"), except (i) Encumbrances securing the Obligations, (ii) to the
extent said Encumbrance does not secure indebtedness in excess of $100,000 and
such Encumbrance is removed or otherwise released within ten (10) days of the
creation thereof, (iii) liens of warehousemen, mechanics, materialmen, workers,
repairmen, common carriers, or landlords, liens for taxes, assessments or other
governmental charges, and other similar liens arising by operation of law, in
each case arising in the ordinary course of business and for amounts that are
not yet due and payable or which are being contested in good faith by
appropriate proceedings promptly instituted and diligently conducted and for
which an adequate reserve or other appropriate provision shall have been made to
the extent required by generally accepted accounting principals, and (iv)
pledges or deposits in connection with workers' compensation, unemployment
insurance and other social security legislation (collectively, the "Permitted
Encumbrances");

(f)    it will,
at its and the other Assignors joint and several cost and expense use
commercially reasonable efforts to keep the Collateral in good state of repair
(ordinary wear and tear excepted) and will not waste or destroy the same or any
part thereof other than ordinary course discarding of items no longer used or
useful in its or such other Assignors’ business;

(g)    it will
not without the Trust’s prior written consent, sell, exchange, lease or
otherwise dispose of the Collateral, whether by sale, lease or otherwise, except
for the sale of inventory in the ordinary course of business and for the
disposition or transfer in the ordinary course of business during any fiscal
year of obsolete and worn-out equipment or equipment no longer necessary for its
ongoing needs, having an aggregate fair market value of not more than $25,000
and only to the extent that:

3

(i)    the
proceeds of any such disposition are used to acquire replacement Collateral
which is subject to the Trust’s first priority perfected security interest, or
are used to repay Obligations or to pay general corporate expenses;
and

(ii)   following
the occurrence of an Event of Default which continues to exist the proceeds of
which are remitted to the Trust to be held as cash collateral for the
Obligations;

(h)    it will
insure or cause the Collateral to be insured in the Trust’s name against loss or
damage by fire, theft, burglary, pilferage, loss in transit and such other
hazards as the Trust shall specify, in amounts and under policies which are
customary for similarly situated businesses, and by insurers acceptable to the
Trust, and all premiums thereon shall be paid by such Assignor and the policies
delivered to the Trust. If any such Assignor fails to do so, the Trust may
procure such insurance and the cost thereof shall be promptly reimbursed by the
Assignors, jointly and severally, and shall constitute Obligations;

(i)     it will
at all reasonable times and upon reasonable advance notice to such Assignor
allow the Trust or the Trust’s representatives free access to and the right of
inspection of the Collateral;

(j)     such
Assignor (jointly and severally with each other Assignor) hereby indemnifies and
saves the Trust harmless from all loss, costs, damage, liability and/or expense,
including reasonable attorneys' fees, that the Trust may sustain or incur to
enforce payment, performance or fulfillment of any of the Obligations and/or in
the enforcement of this Master Security Agreement or in the prosecution or
defense of any action or proceeding either against the Trust or any Assignor
concerning any matter growing out of or in connection with this Master Security
Agreement, and/or any of the Obligations and/or any of the Collateral except to
the extent caused by the Trust’s own gross negligence or willful misconduct (as
determined by a court of competent jurisdiction in a final and nonappealable
decision).

4.    The
occurrence of any of the following events or conditions shall constitute an
"Event of Default” under this Master Security Agreement:

(a)    Breach of
any covenant, warranty, representation or statement made or furnished to the
Trust by any Assignor or on any Assignor’s benefit was false or misleading in
any material respect when made or furnished, and if subject to cure, shall not
be cured for a period of thirty (30) days;

(b)    the loss,
theft, substantial damage, destruction, sale or encumbrance to or of any of the
Collateral or the making of any levy, seizure or attachment thereof or thereon
except to the extent:

(i)    such loss
is covered by insurance proceeds which are used to replace the item or repaythe
Trust; or

4

(ii)    said
levy, seizure or attachment does not secure indebtedness in excess of $100,000
and such levy, seizure or attachment has not been removed or otherwise released
within ten (10) days of the creation or the assertion thereof;

(b)    any
Assignor shall become insolvent, cease operations, dissolve, terminate our
business existence, make an assignment for the benefit of creditors, suffer the
appointment of a receiver, trustee, liquidator or custodian of all or any part
of Assignors’ property;

(c)    any
proceedings under any bankruptcy or insolvency law shall be commenced by or
against any Assignor and if commenced against any Assignor shall not be
dismissed within forty-five (45) days;

(d)    the
Company shall repudiate, purport to revoke or fail to perform any or all of its
obligations under the Note (after passage of applicable cure period, if any);
or

(e)    an Event
of Default shall have occurred under and as defined in any Document, after
giving effect to any applicable cure or grace period.

5.    Upon the
occurrence of any Event of Default and at any time thereafter, the Trust may
declare all Obligations immediately due and payable and the Trust shall have the
remedies of a secured party provided in the Uniform Commercial Code as in effect
in the State of New York, this Agreement and other applicable law. Upon the
occurrence of any Event of Default and at any time thereafter, the Trust will
have the right to take possession of the Collateral and to maintain such
possession on our premises or to remove the Collateral or any part thereof to
such other premises as the Trust may desire. Upon the Trust’s request, each of
the Assignors shall assemble or cause the Collateral to be assembled and make it
available to the Trust at a place designated by the Trust. If any notification
of intended disposition of any Collateral is required by law, such notification,
if mailed, shall be deemed properly and reasonably given if mailed at least ten
(10) days before such disposition, postage prepaid, addressed to any Assignor
either at such Assignor’s address shown herein or at any address appearing on
the Trust’s records for such Assignor. Any proceeds of any disposition of any of
the Collateral shall be applied by the Trust to the payment of all expenses in
connection with the sale of the Collateral, including reasonable attorneys' fees
and other legal expenses and disbursements and the reasonable expense of
retaking, holding, preparing for sale, selling, and the like, and any balance of
such proceeds may be applied by the Trust toward the payment of the Obligations
in such order of application as the Trust may elect, and each Assignor shall be
liable for any deficiency.

6.    If any
Assignor defaults in the performance or fulfillment of any of the terms,
conditions, promises, covenants, provisions or warranties on such Assignor’s
part to be performed or fulfilled under or pursuant to this Master Security
Agreement, the Trust may, at its option without waiving its right to enforce
this Master Security Agreement according to its terms, immediately or at any
time thereafter and without notice to any Assignor, perform or fulfill the same
or cause the performance or fulfillment of the same for each Assignor’s joint
and several account and at each Assignor’s joint and several cost and expense,
and the cost and expense thereof (including reasonable attorneys' fees) shall be
added to the Obligations and shall be payable on demand with interest thereon at
the highest rate permitted by law.

5

7.    Each
Assignor appoints the Trust, any of the Trust’s officers, employees or any other
person or entity whom the Trust may designate as our attorney, with power to
execute such documents in each of our behalf and to supply any omitted
information and correct patent errors in any documents executed by any Assignor
or on any Assignor’s behalf; to file financing statements against us covering
the Collateral; to sign our name on public records; and to do all other things
the Trust deem necessary to carry out this Master Security Agreement. Each
Assignor hereby ratifies and approves all acts of the attorney and neither the
Trust nor the attorney will be liable for any acts of commission or omission,
nor for any error of judgment or mistake of fact or law other than gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision). This power being coupled
with an interest, is irrevocable so long as any Obligations remains unpaid.
Furthermore, in connection with the filing of any financing statements, the
Collateral may be described in any such financing statements as "all assets"
and/or "all personal property", whether now owned and/or hereafter acquired.

8.    No delay
or failure on the Trust’s part in exercising any right, privilege or option
hereunder shall operate as a waiver of such or of any other right, privilege,
remedy or option, and no waiver whatever shall be valid unless in writing,
signed by the Trust and then only to the extent therein set forth, and no waiver
by the Trust of any default shall operate as a waiver of any other default or of
the same default on a future occasion. The Trust’s books and records containing
entries with respect to the Obligations shall be admissible in evidence in any
action or proceeding, shall be binding upon each Assignor for the purpose of
establishing the items therein set forth and shall constitute prima facie proof
thereof. the Trust shall have the right to enforce any one or more of the
remedies available to the Trust, successively, alternately or concurrently. Each
Assignor agrees to join with the Trust in executing financing statements or
other instruments to the extent required by the Uniform Commercial Code in form
satisfactory to the Trust and in executing such other documents or instruments
as may be required or deemed necessary by the Trust for purposes of affecting or
continuing the Trust’s security interest in the Collateral.

9.    This
Master Security Agreement shall be governed by and construed in accordance with
the laws of the State of New York and cannot be terminated orally. All of the
rights, remedies, options, privileges and elections given to the Trust hereunder
shall inure to the benefit of the Trust’s successors and assigns. The term "the
Trust" as herein used shall include the Trust, any parent of the Trust, any of
the Trust’s subsidiaries and any co-subsidiaries of the Trust’s parent, whether
now existing or hereafter created or acquired, and all of the terms, conditions,
promises, covenants, provisions and warranties of this Agreement shall inure to
the benefit of and shall bind the representatives, successors and assigns of
each Assignor and each of the foregoing. the Trust and each Assignor hereby (a)
waive any and all right to trial by jury in litigation relating to this
Agreement and the transactions contemplated hereby and each Assignor agrees not
to assert any counterclaim in such litigation, (b) submit to the nonexclusive
jurisdiction of any New York State court sitting in the borough of Manhattan,
the city of New York and (c) waive any objection the Trust or each Assignor may
have as to the bringing or maintaining of such action with any such
court.

6

10.   All
notices from the Trust to any Assignor shall be sufficiently given if mailed or
delivered to such Assignor’s address set forth below.

11.   This
Master Security Agreement and the security interests granted by the Assignors
hereunder shall terminate upon the provision by the Trust of written
confirmation to the Company that (x) all indebtedness obligations owed by any
Assignor to the Trust have been repaid in full (including, without limitation,
all principal, interest and fees related to the Term Note, any indebtedness
referred to in the Incremental Funding Side Letter, any Additional Funding
Agreements and any other indebtedness outstanding at such time and owed to the
Trust) and (y) all commitments by the Trust to fund any indebtedness have been
terminated in their entirety.

 

12.   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.

	 	
      Very
      truly yours,

	 	
      SEQUIAM
      CORPORATION

	 	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

	 	 	 
	 	
      SEQUIAM
      SOFTWARE, INC.

	 	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

 

7

 

	 	
      SEQUIAM
      BIOMETRICS, INC.

	 	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

 

	 	
      SEQUIAM
      EDUCATION, INC.

	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

 

	 	
      SEQUIAM
      SPORTS, INC.

	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

 

	 	
      FINGERPRINT
      DETECTION TECHNOLOGIES, INC.

	 	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

 

8

 

	 	
      ACKNOWLEDGED:

	 	 	 
	 	 	 
	 	
      Lee
      Harrison Corbin, Attorney in-Fact for the Trust Under the Will of John
      Svenningsen

	 	 	 
	 	 	 
	 	
      By:
	
      /s/
      Lee Harrison Corbin

	 	
      Name:
	
        

	 	
      Title:
	
        

 

9

 

SCHEDULE
A

 

	
       

      Entity
	
      Jurisdiction
      of Organization
	
      Organization
      Identification Number

	
      Sequiam
      Corporation
	CA
	
      CA:2047001

	
      Sequiam
      Software, Inc.
	CA
	
      CA:2377290

	
      Sequiam
      Biometrics, Inc.
	FL
	
      FL:
      P03000045341

	
      Sequiam
      Education, Inc.
	FL
	
      FL:
      P03000060330

	
      Sequiam
      Sports, Inc.
	DE
	
      DE:
      3172165

	
      Fingerprint
      Detection Technologies, Inc.
	
      FL
	
      FL:
      P03000079719

 

10Exhibit 10.3

EXHIBIT
10.3

AMENDED
AND RESTATED SUBSIDIARY GUARANTY

	
      New
      York, New York
	
      May
      18, 2005

FOR VALUE
RECEIVED, and in consideration of the loans made or to be made or credit
otherwise extended or to be extended by Lee Harrison Corbin, Attorney in-Fact
for the Trust Under the Will of John Svenningsen the Trust(“ the Trust”) to or
for the account of Sequiam Corporation, a California corporation (“Debtor”),
from time to time and at any time and for other good and valuable consideration
and to induce the Trust, in its discretion, to purchase such notes, make such
loans or extensions of credit and to make or grant such renewals, extensions,
releases of collateral or relinquishments of legal rights as the Trust may deem
advisable, each of the undersigned (and each of them if more than one, the
liability under this Guaranty being joint and several) (jointly and severally
referred to as “Guarantors “ or “the undersigned”) unconditionally guaranties to
the Trust, its successors, endorsees and assigns the prompt payment when due
(whether by acceleration or otherwise) of all present and future obligations and
liabilities of any and all kinds of Debtor to the Trust and of all instruments
of any nature evidencing or relating to any such obligations and liabilities
upon which Debtor or one or more parties and Debtor is or may become liable to
the Trust, whether incurred by Debtor as maker, endorser, drawer, acceptor,
guarantors , accommodation party or otherwise, and whether due or to become due,
secured or unsecured, absolute or contingent, joint or several, and however or
whenever acquired by the Trust, whether arising under, out of, or in connection
with (i) that certain Amended and Restated Securities Purchase Agreement dated
as of the date hereof by and between the Debtor and the Trust (the "Securities
Purchase Agreement"), (ii) that certain Amended, Restated and Consolidated
Senior Secured Note dated as of the date hereof made by the Debtor in favor of
the Trust (the "Term Note"), (iii) that certain Warrant dated as of the date
hereof made by the Debtor in favor of the Trust (the "Warrant"), (iv) that
certain Amended and Restated Registration Rights Agreement dated as of the date
hereof by and between the Debtor and the Trust (the "Registration Rights
Agreement"), (v) that certain Amended and Restated Master Security Agreement
dated as of the date hereof by and between the Debtor, certain subsidiaries of
the Debtor and the Trust (the “Master Security Agreement”), (vi) that certain
Amended and Restated Stock Pledge Agreement dated as of the date hereof among
the Debtor, certain subsidiaries of the Debtor and the Trust (the “Stock Pledge
Agreement”), (vii) this Guaranty, and (xi) the Subordination Agreement dated as
of the date hereof among the Subordinated Lenders, as defined therein, and the
Purchaser (the “Subordination Agreement”) (the Securities Purchase Agreement,
the Term Note, the Warrant, the Registration Rights Agreement, the Master
Security Agreement, the Stock Pledge Agreement, this Guaranty, and the
Subordination Agreement, as each may be amended, modified, restated or
supplemented from time to time, are collectively referred to herein as the
"Documents"), or any documents, instruments or agreements relating to or
executed in connection with the Documents or any documents, instruments or
agreements referred to therein or otherwise, or any other indebtedness,
obligations or liabilities of the Debtor to the Trust, whether now existing or
hereafter arising, direct or indirect, liquidated or unliquidated, absolute or
contingent, due or not due and whether under, pursuant to or evidenced by a
note, agreement, guaranty, instrument or otherwise (all of which are herein
collectively referred to as the “Obligations”), and irrespective of the
genuineness, validity, regularity or enforceability of such Obligations, or of
any instrument evidencing any of the Obligations or of any collateral therefor
or of the existence or extent of such collateral, and irrespective of the
allowability, allowance or disallowance of any or all of the Obligations in any
case commenced by or against Debtor under Title 11, United States Code,
including, without limitation, obligations or indebtedness of Debtor for
post-petition interest, fees, costs and charges that would have accrued or been
added to the Obligations but for the commencement of such case. Terms not
otherwise defined herein shall have the meaning assigned such terms in the
Securities Purchase Agreement. In furtherance of the foregoing, the undersigned
hereby agrees as follows:

1.    No
Impairment. The
Trust may at any time and from time to time, either before or after the maturity
thereof, without notice to or further consent of the undersigned, extend the
time of payment of, exchange or surrender any collateral for, renew or extend
any of the Obligations or increase or decrease the interest rate thereon, or any
other agreement with Debtor or with any other party to or person liable on any
of the Obligations, or interested therein, for the extension, renewal, payment,
compromise, discharge or release thereof, in whole or in part, or for any
modification of the terms thereof or of any agreement between the Trust and
Debtor or any such other party or person, or make any election of rights the
Trust may deem desirable under the United States Bankruptcy Code, as amended, or
any other federal or state bankruptcy, reorganization, moratorium or insolvency
law relating to or affecting the enforcement of creditors’ rights generally (any
of the foregoing, an “Insolvency Law”) without in any way impairing or affecting
this Guaranty. This instrument shall be effective regardless of the subsequent
incorporation, merger or consolidation of Debtor, or any change in the
composition, nature, personnel or location of Debtor and shall extend to any
successor entity to Debtor, including a debtor in possession or the like under
any Insolvency Law.

2.    Guaranty
Absolute. Subject
to Section 5(c), each of the undersigned jointly and severally guarantees that
the Obligations will be paid strictly in accordance with the terms of the
Documents and/or any other document, instrument or agreement creating or
evidencing the Obligations, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the
rights of Debtor with respect thereto. Guarantors hereby knowingly accept the
full range of risk encompassed within a contract of “continuing guaranty” which
risk includes the possibility that Debtor will contract additional indebtedness
for which Guarantors may be liable hereunder after Debtor’s financial condition
or ability to pay its lawful debts when they fall due has deteriorated, whether
or not Debtor has properly authorized incurring such additional indebtedness.
The undersigned acknowledge that (i) no oral representations, including any
representations to extend credit or provide other financial accommodations to
Debtor, have been made by the Trust to induce the undersigned to enter into this
Guaranty and (ii) any extension of credit to the Debtor shall be governed solely
by the provisions of the Documents. The liability of each of the undersigned
under this Guaranty shall be absolute and unconditional, in accordance with its
terms, and shall remain in full force and effect without regard to, and shall
not be released, suspended, discharged, terminated or otherwise affected by, any
circumstance or occurrence whatsoever, including, without limitation: (a) any
waiver, indulgence, renewal, extension, amendment or modification of or
addition, consent or supplement to or deletion from or any other action or
inaction under or in respect of the Documents or any other instruments or
agreements relating to the Obligations or any assignment or transfer of any
thereof, (b) any lack of validity or enforceability of any Document or other
documents, instruments or agreements relating to the Obligations or any
assignment or transfer of any thereof, (c) any furnishing of any additional
security to the Trust or its assignees or any acceptance thereof or any release
of any security by the Trust or its assignees, (d) any limitation on any party’s
liability or obligation under the Documents or any other documents, instruments
or agreements relating to the Obligations or any assignment or transfer of any
thereof or any invalidity or unenforceability, in whole or in part, of any such
document, instrument or agreement or any term thereof, (e) any bankruptcy,
insolvency, reorganization, composition, adjustment, dissolution, liquidation or
other like proceeding relating to Debtor, or any action taken with respect to
this Guaranty by any trustee or receiver, or by any court, in any such
proceeding, whether or not the undersigned shall have notice or knowledge of any
of the foregoing, (f) any exchange, release or nonperfection of any collateral,
or any release, or amendment or waiver of or consent to departure from any
guaranty or security, for all or any of the Obligations or (g) any other
circumstance which might otherwise constitute a defense available to, or a
discharge of, the undersigned. Any amounts due from the undersigned to the Trust
shall bear interest until such amounts are paid in full at the highest rate then
applicable to the Obligations. Obligations include post-petition interest
whether or not allowed or allowable.

2

3.    Waivers.

(a)  This
Guaranty is a guaranty of payment and not of collection. the Trust shall be
under no obligation to institute suit, exercise rights or remedies or take any
other action against Debtor or any other person liable with respect to any of
the Obligations or resort to any collateral security held by it to secure any of
the Obligations as a condition precedent to the undersigned being obligated to
perform as agreed herein and each of the Guarantors hereby waives any and all
rights which it may have by statute or otherwise which would require the Trust
to do any of the foregoing. Each of the Guarantors further consents and agrees
that the Trust shall be under no obligation to marshal any assets in favor of
Guarantors, or against or in payment of any or all of the Obligations. The
undersigned hereby waives all suretyship defenses and any rights to interpose
any defense, counterclaim or offset of any nature and description which the
undersigned may have or which may exist between and among the Trust, Debtor
and/or the undersigned with respect to the undersigned’s obligations under this
Guaranty, or which Debtor may assert on the underlying debt, including but not
limited to failure of consideration, breach of warranty, fraud, payment (other
than cash payment in full of the Obligations), statute of frauds, bankruptcy,
infancy, statute of limitations, accord and satisfaction, and usury.

3

(b)  Each of
the undersigned further waives (i) notice of the acceptance of this Guaranty, of
the making of any such loans or extensions of credit, and of all notices and
demands of any kind to which the undersigned may be entitled, including, without
limitation, notice of adverse change in Debtor’s financial condition or of any
other fact which might materially increase the risk of the undersigned and (ii)
presentment to or demand of payment from anyone whomsoever liable upon any of
the Obligations, protest, notices of presentment, non-payment or protest and
notice of any sale of collateral security or any default of any
sort.

(c)  Notwithstanding
any payment or payments made by the undersigned hereunder, or any setoff or
application of funds of the undersigned by the Trust, the undersigned shall not
be entitled to be subrogated to any of the rights of the Trust against Debtor or
against any collateral or guarantee or right of offset held by the Trust for the
payment of the Obligations, nor shall the undersigned seek or be entitled to
seek any contribution or reimbursement from Debtor in respect of payments made
by the undersigned hereunder, until all amounts owing to the Trust by Debtor on
account of the Obligations are paid in full and the Trust’s obligation to extend
credit pursuant to the Documents have been terminated. If, notwithstanding the
foregoing, any amount shall be paid to the undersigned on account of such
subrogation rights at any time when all of the Obligations shall not have been
paid in full and the Trust’s obligation to extend credit pursuant to the
Documents shall not have been terminated, such amount shall be held by the
undersigned in trust for the Trust, segregated from other funds of the
undersigned, and shall forthwith upon, and in any event within two (2) business
days of, receipt by the undersigned, be turned over to the Trust in the exact
form received by the undersigned (duly endorsed by the undersigned to the Trust,
if required), to be applied against the Obligations, whether matured or
unmatured, in such order as the Trust may determine, subject to the provisions
of the Documents. Any and all present and future debts and obligations of Debtor
to any of the undersigned are hereby waived and postponed in favor of, and
subordinated to the full payment and performance of, all present and future
debts and Obligations of Debtor to the Trust.

4.    Security. All
sums at any time to the credit of the undersigned and any property of the
undersigned in the Trust’s possession or in the possession of any bank,
financial institution or other entity that directly or indirectly, through one
or more intermediaries, controls or is controlled by, or is under common control
with, the Trust (each such entity, an “Affiliate”) shall be deemed held by the
Trust or such Affiliate, as the case may be, as security for any and all of the
undersigned’s obligations to the Trust and to any Affiliate of the Trust, no
matter how or when arising and whether under this or any other instrument,
agreement or otherwise. 

5.    Representations
and Warranties. Each of
the undersigned respectively, hereby jointly and severally represents and
warrants (all of which representations and warranties shall survive until all
Obligations are indefeasibly satisfied in full and the Documents have been
irrevocably terminated), that:

4

(a)    Corporate
Status. It is a
corporation, partnership or limited liability company, as the case may be, and
except for Sequiam Software, Inc., is duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization indicated on
the signature page hereof and has full power, authority and legal right to own
its property and assets and to transact the business in which it is
engaged.

(b)    Authority
and Execution. It has
full power, authority and legal right to execute and deliver, and to perform its
obligations under, this Guaranty and has taken all necessary corporate,
partnership or limited liability company, as the case may be, action to
authorize the execution, delivery and performance of this Guaranty.

(c)    Legal,
Valid and Binding Character. This
Guaranty constitutes its legal, valid and binding obligation enforceable in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general
application affecting the enforcement of creditor’s rights and general
principles of equity that restrict the availability of equitable or legal
remedies. 

(d)    Violations. The
execution, delivery and performance of this Guaranty will not violate any
requirement of law applicable to it or any contract, agreement or instrument to
it is a party or by which it or any of its property is bound or result in the
creation or imposition of any mortgage, lien or other encumbrance other than to
the Trust on any of its property or assets pursuant to the provisions of any of
the foregoing, which, in any of the foregoing cases, could reasonably be
expected to have, either individually or in the aggregate, a Material Adverse
Effect.

(e)    Consents
or Approvals. No
consent of any other person or entity (including, without limitation, any
creditor of the undersigned) and no consent, license, permit, approval or
authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required in connection with the
execution, delivery, performance, validity or enforceability of this Guaranty by
it, except to the extent that the failure to obtain any of the foregoing could
not reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect.

(f)    Litigation. No
litigation, arbitration, investigation or administrative proceeding of or before
any court, arbitrator or governmental authority, bureau or agency is currently
pending or, to the best of its knowledge, threatened (i) with respect to this
Guaranty or any of the transactions contemplated by this Guaranty or (ii)
against or affecting it, or any of its property or assets, which, in each of the
foregoing cases, if adversely determined, could reasonably be expected to have a
Material Adverse Effect.

5

(g)    Financial
Benefit. It has
derived or expects to derive a financial or other advantage from each and every
loan, advance or extension of credit made under the Documents or other
Obligation incurred by the Debtor to the Trust.

6.    Acceleration.

(a)    If any
breach of any covenant or condition or other event of default or Event of
Default (as defined in any Document) shall occur and be continuing under any
agreement made by Debtor or any of the Guarantors to the Trust (including
without limitation, under any Document) , any and all Obligations shall for
purposes hereof, at the Trust’s option, be deemed due and payable without notice
notwithstanding that any such Obligation is not then due and payable by
Debtor.

(b)    Each of
the undersigned will promptly notify the Trust of any default by such
undersigned in its respective performance or observance of any term or condition
of any agreement to which the undersigned is a party if the effect of such
default is to cause, or permit the holder of any obligation under such agreement
to cause, such obligation to become due prior to its stated maturity (in each
case, after giving effect to applicable cure and/or grace periods) and, if such
an event occurs, the Trust shall have the right to accelerate such undersigned’s
obligations hereunder.

7.    Payments
from Guarantors. the
Trust, in its sole and absolute discretion, with or without notice to the
undersigned, may apply on account of the Obligations any payment from the
undersigned or any other guarantors, or amounts realized from any security for
the Obligations, or may deposit any and all such amounts realized in a
non-interest bearing cash collateral deposit account to be maintained as
security for the Obligations.

8.    Costs. The
undersigned shall pay on demand, all costs, fees and expenses (including
expenses for legal services of every kind) relating or incidental to the
enforcement or protection of the rights of the Trust hereunder or under any of
the Obligations.

9.    No
Termination. This is
a continuing irrevocable guaranty and shall remain in full force and effect and
be binding upon the undersigned, and each of the undersigned’s successors and
assigns, until all of the Obligations have been paid in full and the Trust’s
obligation to extend credit pursuant to the Documents has been irrevocably
terminated. If any of the present or future Obligations are guarantied by
persons, partnerships or corporations in addition to the undersigned, the death,
release or discharge in whole or in part or the bankruptcy, merger,
consolidation, incorporation, liquidation or dissolution of one or more of them
shall not discharge or affect the liabilities of any undersigned under this
Guaranty.

6

10.   Recapture.
Anything in this Guaranty to the contrary notwithstanding, if the Trust receives
any payment or payments on account of the liabilities guaranteed hereby, which
payment or payments or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside and/or required to be repaid to a
trustee, receiver, or any other party under any Insolvency Law, common law or
equitable doctrine, then to the extent of any sum not finally retained by the
Trust, the undersigned’s obligations to the Trust shall be reinstated and this
Guaranty shall remain in full force and effect (or be reinstated) until payment
shall have been made to the Trust, which payment shall be due on
demand.

11.   Books
and Records. The
books and records of the Trust showing the account between the Trust and Debtor
shall be admissible in evidence in any action or proceeding, shall be binding
upon the undersigned for the purpose of establishing the items therein set forth
and shall constitute prima facie proof thereof.

12.   No
Waiver. No
failure on the part of the Trust to exercise, and no delay in exercising, any
right, remedy or power hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise by the Trust of any right, remedy or power
hereunder preclude any other or future exercise of any other legal right, remedy
or power. Each and every right, remedy and power hereby granted to the Trust or
allowed it by law or other agreement shall be cumulative and not exclusive of
any other, and may be exercised by the Trust at any time and from time to
time.

13.   Waiver
of Jury Trial. EACH OF
THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR WITH RESPECT TO
THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR RELATING OR
INCIDENTAL HERETO. THE UNDERSIGNED DOES HEREBY CERTIFY THAT NO REPRESENTATIVE OR
AGENT OF THE TRUST HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE TRUST WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY
TRIAL PROVISION. 

14.   Governing
Law; Jurisdiction; Amendments. THIS
INSTRUMENT CANNOT BE CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED,
CONSTRUED AND INTERPRETED AS TO VALIDITY, ENFORCEMENT AND IN ALL OTHER RESPECTS
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT HAVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAWS. EACH OF THE UNDERSIGNED EXPRESSLY CONSENTS TO
THE JURISDICTION AND VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY
OF NEW YORK, AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK FOR ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL PROCEEDING BY
THE UNDERSIGNED AGAINST THE TRUST INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER
OR CLAIM IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED HEREWITH SHALL BE
BROUGHT ONLY IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK
OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. THE
UNDERSIGNED FURTHER CONSENTS THAT ANY SUMMONS, SUBPOENA OR OTHER PROCESS OR
PAPERS (INCLUDING, WITHOUT LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION
TO EITHER OF THE AFOREMENTIONED COURTS OR A JUDGE THEREOF) OR ANY NOTICE IN
CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY BE SERVED INSIDE OR OUTSIDE OF
THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT OF NEW YORK BY REGISTERED OR
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE PROVIDED A
REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER MANNER AS MAY BE
PERMISSIBLE UNDER THE RULES OF SAID COURTS. EACH OF THE UNDERSIGNED WAIVES ANY
OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREON AND SHALL
NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR BASED UPON
FORUM NON
CONVENIENS.

7

15.   Severability. To the
extent permitted by applicable law, any provision of this Guaranty 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 provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

16.   Amendments,
Waivers. No
amendment or waiver of any provision of this Guaranty nor consent to any
departure by the undersigned therefrom shall in any event be effective unless
the same shall be in writing executed by each of the undersigned directly
affected by such amendment and/or waiver and the Trust.

17.   Notice. All
notices, requests and demands to or upon the undersigned, shall be in writing
and shall be deemed to have been duly given or made (a) when delivered, if by
hand, (b) three (3) days after being sent, postage prepaid, if by registered or
certified mail, (c) when confirmed electronically, if by facsimile, or (d) when
delivered, if by a recognized overnight delivery service in each event, to the
numbers and/or address set forth beneath the signature of the
undersigned.

18.   Successors. the
Trust may, from time to time, without notice to the undersigned, sell, assign,
transfer or otherwise dispose of all or any part of the Obligations and/or
rights under this Guaranty. Without limiting the generality of the foregoing,
the Trust may assign, or grant participations to, one or more banks, financial
institutions or other entities all or any part of any of the Obligations. In
each such event, the Trust, its Affiliates and each and every immediate and
successive purchaser, assignee, transferee or holder of all or any part of the
Obligations shall have the right to enforce this Guaranty, by legal action or
otherwise, for its own benefit as fully as if such purchaser, assignee,
transferee or holder were herein by name specifically given such right. the
Trust shall have an unimpaired right to enforce this Guaranty for its benefit
with respect to that portion of the Obligations which the Trust has not disposed
of, sold, assigned, or otherwise transferred.

8

19.   Release. Nothing
except cash payment in full of the Obligations shall release any of the
undersigned from liability under this Guaranty, provided that this Guaranty
shall be released upon the provision by the Trust of written confirmation to the
Debtor that (x) all indebtedness obligations owed by the Debtor or any Guarantor
to the Trust have been repaid in full (including, without limitation, all
principal, interest and fees related to the Term Note, any indebtedness referred
to in the Incremental Funding Side Letter, any Additional Funding Agreements and
any other indebtedness outstanding at such time and owed to the Trust) and (y)
all commitments by the Trust to fund any indebtedness have been terminated in
their entirety.

[REMAINDER
OF THIS PAGE IS BLANK.

SIGNATURE
PAGE IMMEDIATELY FOLLOWS] 

 

9

IN
WITNESS WHEREOF, this Guaranty has been executed by the undersigned this 18th
day of May, 2005.

	 	
      Very
      truly yours,

	 	 	 
	 	
      SEQUIAM
      SOFTWARE, INC.

	 	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

	 	
      SEQUIAM
      BIOMETRICS, INC.

	 	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

	 	
      SEQUIAM
      EDUCATION, INC.

	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

	 	
      SEQUIAM
      SPORTS, INC.

	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

 

10

 

	 	
      FINGERPRINT
      DETECTION TECHNOLOGIES, INC.

	 	 	 
	 	 	 
	 	
      By:
      
	
      /s/
      Nicholas VandenBrekel

	 	
      Name:
	
      Nicholas
      VandenBrekel

	 	
      Title:
	
      CEO

	 	
      Address:
      300 Sunport Lane

	 	
      Orlando,
      FL 32809

 

 

11

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