Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Fortified Holdings Corp. - Exhibit 10.3

CONTINUING GUARANTY AGREEMENT 

          This
CONTINUING GUARANTY AGREEMENT (the “Guaranty”), dated as of September
13th, 2007 by FORTIFIED DATA COMMUNICATIONS, INC., a Delaware corporation
(the “Guarantor”), in favor of THOMAS KEENAN VENTURES, LLC
(“TKV”). 

PREAMBLE 

          Reference
is made to that certain $5,000,000 term loan (the “Loan”) from TKV to
Fortified Holdings Corp., a Nevada corporation (the “Company”), which
Loan is evidenced by, among other things, a Term Loan Note of the Company in
favor of TKV (as the same may be amended, supplemented, modified or replaced
from time to time, the “Note”). 

          The
Company owns 100% of the issued and outstanding capital stock of the Guarantor
and as such the Guarantor will receive a direct material benefit from the
extension of the Loan by TKV to the Company. 

          In
consideration of and as a material inducement for TKV having extended the Loan
to the Company, the Guarantor does hereby represent, warrant, covenant and agree
as follows: 

          1.
Definitions. 

          The
term “Obligations” and all other capitalized terms used herein without
definition shall have the respective meanings provided therefor in the Note.

          2.
Guaranty of Payment and Performance. 

          The
Guarantor hereby guarantees to TKV the full and punctual payment when due
(whether at stated maturity, by required pre-payment, by acceleration or
otherwise), of (a) the principal of and premium, if any, and interest on the
Loan, (b) obligations of the Company under the Note, and (c) all other monetary
Obligations of the Company to TKV, including, without limitation, all fees,
costs, expenses and indemnities, whether primary, secondary, direct, contingent,
fixed or otherwise, in each case whether now in existence or hereafter incurred
or arising, including all such Obligations which would become due but for the
operation of the automatic stay pursuant to §362(a) of the Federal Bankruptcy
Code and the operation of §§502(b) and 506(b) of the Federal Bankruptcy Code
(collectively, the “Guaranteed Obligations”). This Guaranty is an
absolute, unconditional and continuing guaranty of the full and punctual payment
and performance of all of the Guaranteed Obligations and not of their
collectibility only and is in no way conditioned upon any requirement that TKV
first attempt to collect any of the Guaranteed Obligations from the Company or
any other entity or other person primarily or secondarily liable with respect to
any of the Guaranteed Obligations or 

resort to any collateral security or other means of obtaining
payment. Should the Company default in the payment or performance of any of the
Guaranteed Obligations, the obligations of the Guarantor hereunder with respect
to such Guaranteed Obligations in default shall become immediately due and
payable to the TKV, without demand or notice of any nature, all of which are
expressly waived by the Guarantor. Payments by the Guarantor hereunder may be
required by TKV on any number of occasions. 

          2.1.
Guarantor’s Agreement to Pay Enforcement Costs, etc. 

          The
Guarantor further agrees, as the principal obligor and not as a guarantor only,
to pay to TKV, on demand, all costs and expenses (including court costs and
legal expenses) incurred or expended by TKV following the occurrence and during
the continuation of an Event of Default in connection with the Guaranteed
Obligations, this Guaranty and the enforcement thereof, together with interest
on amounts recoverable under this §3 from the time when such amounts become due
until payment, whether before or after judgment, at the Default Rate,
provided that if such interest exceeds the maximum amount permitted to be
paid under applicable law, then such interest shall be reduced to such maximum
permitted amount. 

          3.
Waivers by Guarantor; TKV’s Freedom to Act. 

          The
Guarantor agrees that the Guaranteed Obligations will be paid and performed
strictly in accordance with their respective terms, regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of TKV with respect thereto. The Guarantor waives
promptness, diligences, presentment, demand, protest, notice of acceptance,
notice of any Guaranteed Obligations incurred and all other notices of any kind,
all defenses which may be available by virtue of any valuation, stay, moratorium
law or other similar law now or hereafter in effect, any right to require the
marshalling of assets of the Company or any other entity or other person
primarily or secondarily liable with respect to any of the Guaranteed
Obligations, and all suretyship defenses generally. Without limiting the
generality of the foregoing, the Guarantor agrees to the provisions of all Loan
Documents evidencing, securing or otherwise executed in connection with any
Guaranteed Obligation and agrees that the obligations of the Guarantor hereunder
shall not be released or discharged, in whole or in part, or otherwise affected
by (i) the failure of TKV to assert any claim or demand or to enforce any right
or remedy against the Company or any other entity or other person primarily or
secondarily liable with respect to any of the Guaranteed Obligations; (ii) any
extensions, compromise, refinancing, consolidation or renewals of any Guaranteed
Obligation; (iii) any change in the time, place or manner of payment of any of
the Guaranteed Obligations or any rescissions, waivers, compromise, refinancing,
consolidation, amendments or modifications of any of the terms or provisions of
any Loan Document evidencing, securing or otherwise executed in connection with
any of the Guaranteed Obligations; (iv) the addition, substitution or release of
any entity or other person primarily or secondarily liable for any Guaranteed
Obligation, (v) the adequacy of any rights which TKV may have against any
collateral security or other means of obtaining repayment of any of the
Guaranteed Obligations; (vi) the impairment of any collateral securing any of
the Guaranteed Obligations, including without limitation the failure to perfect
or preserve any rights which TKV might have in such collateral security or the
substitution, exchange, surrender, release, loss or destruction of any such
collateral security; or 

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(vii) any other act or omission (other than wrongful acts or
omissions of TKV that affect the validity or enforceability of the Obligations
against the Company) which might in any manner or to any extent vary the risk of
the Guarantor or otherwise operate as a release or discharge of the Guarantor,
all of which may be done without notice to the Guarantor. To the fullest extent
permitted by law, the Guarantor hereby expressly waives any and all rights or
defenses arising by reason of (A) any “one action” or “anti-deficiency” law
which would otherwise prevent TKV from bringing any action, including any claim
for a deficiency, or exercising any other right or remedy (including any right
of set-off), against the Guarantor before or after TKV’s commencement or
completion of any foreclosure action, whether judicially, by exercise of power
of sale or otherwise, or (B) any other law which in any other way would
otherwise require any election of remedies by TKV. 

          4.
Unenforceability of Guaranteed Obligations Against Company. 

          If
for any reason the Company has no legal existence or is under no legal
obligation to discharge any of the Guaranteed Obligations, or if any of the
Guaranteed Obligations have become irrecoverable from the Company by reason of
the Company’s insolvency, bankruptcy or reorganization or by other operation of
law or for any other reason, this Guaranty shall nevertheless be binding on the
Guarantor to the same extent as if the Guarantor at all times had been the
principal obligor on all such Guaranteed Obligations. In the event that
acceleration of the time for payment of any of the Guaranteed Obligations is
stayed upon the insolvency, bankruptcy or reorganization of the Company, or for
any other reason, all such amounts otherwise subject to acceleration under the
terms of any Loan Document evidencing, securing or otherwise executed in
connection with any Guaranteed Obligation shall be immediately due and payable
by the Guarantor. 

          5.
Subrogation; Subordination. 

          5.1.
Waiver of Rights Against Company. 

          Until
the final payment and performance in full of all of the Guaranteed Obligations
and any and all other obligations of the Company to TKV or any affiliate of TKV,
the Guarantor shall not exercise any rights against the Company arising as a
result of payment by the Guarantor hereunder, by way of subrogation,
reimbursement, restitution, contribution or otherwise, and will not prove any
claim in competition with TKV or such affiliate in respect of any payment
hereunder in any bankruptcy, insolvency or reorganization case or proceedings of
any nature; the Guarantor will not claim any setoff, recoupment or counterclaim
against the Company in respect of any liability of the Guarantor to the Company;
and the Guarantor waives any benefit of and any right to participate in any
collateral security which may be held by TKV or any such affiliate.

          5.2.
Subordination. 

          The
payment of any amounts due with respect to any indebtedness of the Company now
or hereafter owed to the Guarantor is hereby subordinated to the prior payment
in full of all of the Guaranteed Obligations and any and all other obligations
of the Company to TKV or any affiliate of TKV. The Guarantor agrees that, after
the 

-3-

occurrence of any default in the
payment or performance of any of the Guaranteed Obligations, the Guarantor will
not demand, sue for or otherwise attempt to collect any such indebtedness of the
Company to the Guarantor until all of the Guaranteed Obligations shall have been
paid in full. If, notwithstanding the foregoing sentence, the Guarantor shall
collect, enforce or receive any amounts in respect of such indebtedness, such
amounts shall be collected, enforced and received by the Guarantor as trustee
for the TKV and be paid over to TKV on account of the Guaranteed Obligations
without affecting in any manner the liability of the Guarantor under the other
provisions of this Guaranty. 

          6.
Further Assurances. 

          The
Guarantor agrees to do all such things and execute all such documents as TKV may
reasonably consider necessary or desirable to give full effect to this Guaranty
and to perfect and preserve the rights and powers of TKV hereunder. The
Guarantor acknowledges and confirms that the Guarantor itself has established
its own adequate means of obtaining from the Company on a continuing basis all
information desired by the Guarantor concerning the financial condition of the
Company and that the Guarantor will look to the Company and not to TKV in order
for the Guarantor to keep adequately informed of changes in the Company’s
financial condition. 

          7.
Termination; Reinstatement. 

          This
Guaranty shall remain in full force and effect notwithstanding any attempt by
the Guarantor to revoke this Guaranty. This Guaranty shall continue to be
effective or be reinstated, notwithstanding any such attempted revocation, if at
any time any payment made or value received with respect to any Guaranteed
Obligation is rescinded or must otherwise be returned by TKV upon the
insolvency, bankruptcy or reorganization of the Company, or otherwise, all as
though such payment had not been made or value received. 

          8.
Successors and Assigns. 

          This
Guaranty shall (i) be binding upon the Guarantor and the Guarantor’s permitted
successors and assigns, provided that the Guarantor shall have no right
to assign or transfer any of the Guarantor’s obligations hereunder, and (ii)
inure to the benefit of, and be enforceable by, TKV, its successors, transferees
and assigns, and any person who shall from time to time be the owner or holder
of any of the Guaranteed Obligations. Without limiting the generality of the
foregoing sentence, TKV may assign or otherwise transfer any Loan Document held
by it evidencing, securing or otherwise executed in connection with the
Guaranteed Obligations, or sell participations in any interest therein, to any
other entity or other person, and such other entity or other person shall
thereupon become vested, to the extent set forth in the agreement evidencing
such assignment, transfer or participation, with all the rights in respect
thereof granted to the TKV herein. 

          9.
Amendments and Waivers. 

          No
amendment or waiver of any provision of this Guaranty nor consent to any
departure by the Guarantor therefrom shall be effective unless the same shall be
in writing and signed by TKV. No failure on the part of TKV to exercise, and no
delay in exercising, any right hereunder 

-4-

shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. 

          10.
Notices. 

          All
notices and other communications called for hereunder shall be made in writing
and, unless otherwise specifically provided herein, shall be made or given in
the manner set forth in the Security Agreement. 

          11.
Governing Law; Consent to Jurisdiction. 

          THIS
GUARANTY IS INTENDED TO TAKE EFFECT AND SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CONNECTICUT. The Guarantor agrees
that any suit for the enforcement of this Guaranty may be brought in the courts
of the State of Connecticut or any federal court sitting therein and consents to
the nonexclusive jurisdiction of such court and to service of process in any
such suit being made upon the Guarantor by registered or certified mail, return
receipt requested, at the address set forth in the Security Agreement. The
Guarantor hereby waives any objection that it may now or hereafter have to the
venue of any such suit or any such court or that such suit was brought in an
inconvenient court. 

          12.
Waiver of Jury Trial. 

          THE
GUARANTOR AND TKV (BY ITS ACCEPTANCE OF THIS GUARANTY) HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF
ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
GUARANTY OR ANY OTHER LOAN DOCUMENTS OR ANY COURSE OF CONDUCT, COURSE OF
DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY,
INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS,
STATEMENTS OR ACTIONS OF TKV RELATING TO THE ADMINISTRATION OF THE LOANS OR
ENFORCEMENT OF THIS GUARANTY OR THE OTHER LOAN DOCUMENTS, AND AGREE THAT NEITHER
PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A
JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, THE
GUARANTOR HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY
DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. The Guarantor (i)
certifies that neither TKV nor any representative, agent or attorney of TKV has
represented, expressly or otherwise, that TKV would not, in the event of
litigation, seek to enforce the foregoing waivers and (ii) acknowledges that, in
entering into the Loan Documents to which TKV is a party, TKV is relying upon,
among other things, the waivers and certifications contained in this §13. 

          13.
Miscellaneous. 

          This
Guaranty constitutes the entire agreement of the Guarantor with respect to the
matters set forth herein. The rights and remedies herein provided are cumulative
and not 

-5-

exclusive of any remedies provided by law or any other
agreement, and this Guaranty shall be in addition to any other guaranty of or
collateral security for any of the Guaranteed Obligations. The invalidity or
unenforceability of any one or more sections of this Guaranty shall not affect
the validity or enforceability of its remaining provisions. Captions are for the
ease of reference only and shall not affect the meaning of the relevant
provisions. The meanings of all defined terms used in this Guaranty shall be
equally applicable to the singular and plural forms of the terms defined. 

          14.
Prejudgment Remedy Waiver. 

          TO
INDUCE TKV TO ENTER INTO THE COMMERCIAL LOAN TRANSACTIONS EVIDENCED BY THE
CREDIT AGREEMENT, THE NOTES, AND ANY OTHER LOAN DOCUMENTS, GUARANTOR AGREES THAT
THIS IS A COMMERCIAL TRANSACTION AND NOT A CONSUMER TRANSACTION, AND
WAIVES ANY RIGHT TO NOTICE AND A HEARING UNDER CHAPTER 903a OF THE CONNECTICUT
GENERAL STATUTES, AS AMENDED, OR UNDER ANY OTHER FEDERAL OR STATE STATUTE OR
STATUTES OR FOREIGN LAWS AFFECTING PREJUDGMENT REMEDIES, AND AUTHORIZES TKV’S
ATTORNEY TO ISSUE A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER, PROVIDED
THE COMPLAINT SHALL SET FORTH A COPY OF THIS WAIVER, AND WAIVES ANY CLAIM IN
TORT, CONTRACT OR OTHERWISE AGAINST TKV’S ATTORNEY WHICH MAY ARISE OUT OF SUCH
ISSUANCE OF A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER. FURTHER, IN THE
EVENT TKV SEEKS TO TAKE POSSESSION OF ANY OR ALL OF GUARANTOR’S PROPERTIES OR
OTHER ASSETS BY COURT PROCESS OR OTHER METHOD AVAILABLE UNDER THE LAW, GUARANTOR
IRREVOCABLY WAIVES ANY BOND AND ANY SURETY OR SECURITY RELATING THERETO REQUIRED
BY ANY STATUTE, COURT RULE OR OTHERWISE AS AN INCIDENT TO SUCH POSSESSION, AND
WAIVES ANY DEMAND FOR POSSESSION PRIOR TO THE COMMENCEMENT OF ANY SUIT OR ACTION
TO RECOVER WITH RESPECT THERETO. SPECIFICALLY, GUARANTOR RECOGNIZES AND
UNDERSTANDS THAT THE EXERCISE OF TKV’S RIGHTS DESCRIBED ABOVE MAY RESULT IN THE
ATTACHMENT OF OR LEVY AGAINST GUARANTOR’S PROPERTY, AND SUCH WRIT FOR A
PREJUDGMENT REMEDY WILL NOT HAVE THE PRIOR WRITTEN APPROVAL OR SCRUTINY OF A
COURT OF LAW OR OTHER JUDICIAL OFFICER AND GUARANTOR WILL NOT HAVE THE RIGHT TO
ANY NOTICE OR PRIOR HEARING WHERE GUARANTOR MIGHT CONTEST SUCH A PROCEDURE. THE
INTENT OF GUARANTOR IS TO GRANT TO TKV FOR GOOD AND VALUABLE CONSIDERATION THE
RIGHT TO OBTAIN SUCH A PREJUDGMENT REMEDY AND TO EXPRESS ITS BELIEF THAT ANY
SUCH PREJUDGMENT REMEDY OBTAINED IS VALID AND CONSTITUTIONAL UNLESS A COURT OF
COMPETENT JURISDICTION SHOULD DETERMINE OTHERWISE. FURTHER, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, GUARANTOR HEREBY WAIVES DEMAND, PRESENTMENT
FOR PAYMENT, PROTEST, NOTICE OF PROTEST, NOTICE OF DISHONOR, DILIGENCE IN
COLLECTION, NOTICE OF NONPAYMENT OF ANY NOTES AND ANY AND ALL NOTICES OF A LIKE
NATURE. FURTHER, TO THE EXTENT NOT OTHERWISE 

-6-

EXPRESSLY PROVIDED HEREIN, GUARANTOR EXPRESSLY WAIVES ALL
DEFENSES OF SURETYSHIP OR IMPAIRMENT OF COLLATERAL. 

          GUARANTOR
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF TKV HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT TKV WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVERS. GUARANTOR ACKNOWLEDGES AND STIPULATES THAT THE
WAIVERS GRANTED ABOVE ARE MADE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY AND
AFTER FULL CONSULTATION WITH COUNSEL AND CONSTITUTE A MATERIAL INDUCEMENT FOR
TKV TO MAKE THE LOAN. 

          15.
Other Guarantors. 

          The
Guarantor acknowledges that other individuals or entities have or may also from
time to time become primarily or secondarily liable with respect to any of the
Guaranteed Obligations (including each other guarantor, the “Other
Guarantors”), in which event the liability of the Guarantor hereunder shall
be joint and several. The Guarantor further acknowledges that the failure of any
of the Other Guarantors, if any, to execute and deliver their respective
guarantees shall not discharge the liability of the Guarantor under this
Guaranty. 

[THE NEXT PAGE IS THE SIGNATURE PAGE] 

-7-

          IN
WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed and
delivered as of the date first above written. 

FORTIFIED
DATA
COMMUNICATIONS, INC. 

By         /s/
Dennis
Mee                                                         
            
Dennis Mee

           
Authorized Representative 

-8-Filed by Automated Filing Services Inc. (604) 609-0244 - Fortified Holdings Corp. - Exhibit 10.4

SECURITY AGREEMENT 

          SECURITY
AGREEMENT, dated as of the 13th day of September, 2007, by and between
FORTIFIED DATA COMMUNICATIONS, INC. (formerly Aegis Merger
Corporation), a Delaware corporation (the "Debtor"), and THOMAS
KEENAN VENTURES, LLC (hereinafter, the "Secured Party"). 

          WHEREAS,
Fortified Holdings Corp. ("Borrower") has requested from Secured Party,
and Secured Party has agreed to extend to Borrower, a $5,000,000 term loan, as
evidenced by that certain Term Loan Note made by Borrower to the order of
Secured Party dated as of even date herewith (the "Note"); and 

          WHEREAS,
it is a condition precedent to Secured Party’s extending the term loan evidenced
by the Note to Borrower that Debtor execute and deliver to Secured Party (i) a
Continuing Guaranty Agreement in favor of Secured Party (the "Guaranty")
guaranteeing Borrower’s obligations to Secured Party and (ii) a security
agreement in substantially the form hereof; and 

          WHEREAS,
  Debtor desires to grant to Secured Party, as security for Debtor’s obligations
  set forth in the Guaranty (the "Obligations"), a first priority security
  interest in the Collateral (as defined below). 

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

          1.      Definitions;
Rules of Interpretation. All capitalized terms used herein without
definitions (whether in the plural or singular form), including, but not limited
to, the terms "Loan Documents" and "Event of Default", shall have the
respective meanings provided therefor in the Note. The term "State", as used
herein, means the State of Connecticut. All terms defined in the Uniform
Commercial Code of the State and used herein shall have the same definitions
herein as specified therein. However, if a term is defined in Article 9 of the
Uniform Commercial Code of the State differently than in another Article of the
Uniform Commercial Code of the State, the term has the meaning specified in
Article 9. No reference to "proceeds" in this Agreement authorizes any sale,
transfer, or other disposition of Collateral by Debtor. 

          2.      Grant
of Security Interest. Debtor hereby grants to Secured Party, to
secure the payment and performance in full of all of the Debtor’s Obligations, a
security interest in and so pledges and assigns to Secured Party the following
properties, assets and rights of Debtor, wherever located, whether now owned or
hereafter acquired or arising, and any and all proceeds and products of any
thereof (all of the same being hereinafter called the "Collateral"): all
personal and fixture property of every kind and nature including, without
limitation, all goods (including inventory, equipment and any accessions
thereto), instruments (including promissory notes), documents, accounts, chattel
paper (whether tangible or electronic), deposit accounts, letter-of-credit
rights 

(whether or not the letter of credit is evidenced by a
writing), commercial tort claims, securities and all other investment property,
supporting obligations, any other contract rights or rights to the payment of
money, insurance claims and proceeds, and all general intangibles (including all
payment intangibles and software), including all patents, trademarks,
applications and registrations thereof, service marks and other intellectual
property. Secured Party acknowledges that the attachment of its security
interest in any commercial tort claim as original collateral is subject to
Debtor's compliance with §4.7. 

          3.      Authorization
to File Financing Statements. Debtor hereby irrevocably authorizes
Secured Party at any time and from time to time to file in any filing office in
any Uniform Commercial Code jurisdiction any initial financing statements and
amendments thereto that (a) indicate the Collateral (i) as all assets of Debtor
or words of similar effect, regardless of whether any particular asset comprised
in the Collateral falls within the scope of Article 9 of the Uniform Commercial
Code of the State or such jurisdiction, or (ii) as being of an equal or lesser
scope or with greater detail, and (b) provide any other information required by
part 5 of Article 9 of the Uniform Commercial Code of the State, or such other
jurisdiction, for the sufficiency or filing office acceptance of any financing
statement or amendment, including (i) whether Debtor is an organization, the
type of organization and any organizational identification number issued to
Debtor and, (ii) in the case of a financing statement filed as a fixture filing,
a sufficient description of real property to which the Collateral relates.
Debtor agrees to furnish any such information to Secured Party promptly upon
Secured Party's request. Debtor also ratifies its authorization for Secured
Party to have filed in any Uniform Commercial Code jurisdiction any like initial
financing statements or amendments thereto if filed prior to the date hereof.

          4.      Other
Actions. To further the attachment, perfection and first priority
of, and the ability of Secured Party to enforce, Secured Party's security
interest in the Collateral, and without limitation on Debtor's other obligations
in this Agreement, Debtor agrees, in each case at Debtor's expense and upon the
written request of Secured Party, to take the following actions with respect to
the following Collateral: 

          4.1      Promissory
Notes and Tangible Chattel Paper. If Debtor shall at any
time hold or acquire any promissory notes or tangible chattel paper, Debtor
shall forthwith endorse, assign and deliver the same to Secured Party,
accompanied by such instruments of transfer or assignment duly executed in blank
as Secured Party may from time to time specify. 

          4.2      Deposit
Accounts. For each deposit account that Debtor at any time opens or
maintains, Debtor shall, at Secured Party's request and option, pursuant to an
agreement in form and substance reasonably satisfactory to Secured Party, either
(a) cause the depositary bank to comply at any time with instructions from
Secured Party to such depositary bank directing the disposition of funds from
time to time credited to such deposit account, without further consent of
Debtor, or (b) arrange for Secured Party to become the customer of the
depositary bank with respect to the deposit account, with Debtor being
permitted, only with the consent of Secured Party (which consent shall, so long
as no Event 

of Default has occurred and is
continuing, be promptly given), to exercise rights to withdraw funds from such
deposit account. Secured Party agrees with Debtor that Secured Party shall not
give any such instructions or withhold any withdrawal rights from Debtor, unless
an Event of Default has occurred and is continuing, or would occur, if effect
were given to any withdrawal not otherwise permitted by the Loan Documents. The
provisions of this paragraph shall not apply to (i) any deposit account for
which Debtor, the depositary bank and Secured Party have entered into a cash
collateral agreement specially negotiated among Debtor, the depositary bank and
Secured Party for the specific purpose set forth therein, (ii) a deposit account
for which Secured Party is the depositary bank and is in automatic control, and
(iii) deposit accounts specially and exclusively used for payroll, payroll taxes
and other employee wage and benefit payments to or for the benefit of Debtor's
salaried employees. 

          4.3     
Investment Property. If Debtor shall at any time hold or
acquire any certificated securities, Debtor shall forthwith endorse, assign and
deliver the same to Secured Party, accompanied by such instruments of transfer
or assignment duly executed in blank as Secured Party may from time to time
specify. If any securities now or hereafter acquired by Debtor are
uncertificated and are issued to Debtor or its nominee directly by the issuer
thereof, Debtor shall immediately notify Secured Party thereof and, at Secured
Party's request and option, pursuant to an agreement in form and substance
reasonably satisfactory to Secured Party, either (a) cause the issuer to agree
to comply with instructions from Secured Party as to such securities, without
further consent of Debtor or such nominee, or (b) arrange for Secured Party to
become the registered owner of the securities. If any securities, whether
certificated or uncertificated, or other investment property now or hereafter
acquired by Debtor are held by Debtor or its nominee through a securities
intermediary or commodity intermediary, Debtor shall immediately notify Secured
Party thereof and, at Secured Party's request and option, pursuant to an
agreement in form and substance reasonably satisfactory to Secured Party, either
(i) cause such securities intermediary or (as the case may be) commodity
intermediary to agree to comply with entitlement orders or other instructions
from Secured Party to such securities intermediary as to such securities or
other investment property, or (as the case may be) to apply any value
distributed on account of any commodity contract as directed by Secured Party to
such commodity intermediary, in each case without further consent of Debtor or
such nominee, or (ii) in the case of financial assets or other investment
property held through a securities intermediary, arrange for Secured Party to
become the entitlement holder with respect to such investment property, with
Debtor being permitted, only with the consent of Secured Party (which consent
shall, so long as no Event of Default has occurred and is continuing, be
promptly given), to exercise rights to withdraw or otherwise deal with such
investment property. Secured Party agrees with Debtor that Secured Party shall
not give any such entitlement orders or instructions or directions to any such
issuer, securities intermediary or commodity intermediary, and shall not
withhold its consent to the exercise of any withdrawal or dealing rights by
Debtor, unless an Event of Default has occurred and is continuing, or, after
giving effect to any such investment and 

withdrawal rights not otherwise
permitted by the Loan Documents, would occur. The provisions of this paragraph
shall not apply to any financial assets credited to a securities account for
which Secured Party is the securities intermediary. 

          4.4     
Collateral in the Possession of a Bailee. If any Collateral
is at any time in the possession of a bailee, Debtor shall promptly notify
Secured Party thereof and, at Secured Party's request and option, shall promptly
obtain an acknowledgement from the bailee, in form and substance reasonably
satisfactory to Secured Party, that the bailee holds such Collateral for the
benefit of Secured Party, and that such bailee agrees to comply, without further
consent of Debtor, with instructions from Secured Party as to such Collateral;
provided, however, that until such instructions are given by the Secured
Party, Debtor may withdraw such Collateral and otherwise deal with such
Collateral. Secured Party agrees with Debtor that Secured Party shall not give
any such instructions unless an Event of Default has occurred and is continuing
or would occur after taking into account any action by Debtor with respect to
the bailee. 

          4.5     
Electronic Chattel Paper and Transferable Records. If Debtor at
any time holds or acquires an interest in any electronic chattel paper or any
"transferable record," as that term is defined in Section 201 of the federal
Electronic Signatures in Global and National Commerce Act, or in §16 of the
Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
Debtor shall promptly notify Secured Party thereof and, at the request and
option of Secured Party, shall take such action as Secured Party may reasonably
request to vest in Secured Party control, under §9-105 of the Uniform Commercial
Code, of such electronic chattel paper or control under Section 201 of the
federal Electronic Signatures in Global and National Commerce Act or, as the
case may be, §16 of the Uniform Electronic Transactions Act, as so in effect in
such jurisdiction, of such transferable record. Secured Party agrees with Debtor
that Secured Party will arrange, pursuant to procedures satisfactory to Secured
Party and so long as such procedures will not result in Secured Party's loss of
control, for Debtor to make alterations to the electronic chattel paper or
transferable record permitted under UCC §9-105 or, as the case may be, Section
201 of the federal Electronic Signatures in Global and National Commerce Act or
§16 of the Uniform Electronic Transactions Act for a party in control to make
without loss of control, unless a Default has occurred and is continuing or
would occur after taking into account any action by Debtor with respect to such
electronic chattel paper or transferable record. 

          4.6      Letter-of-Credit
Rights. If Debtor is at any time a beneficiary under a letter of
credit, Debtor shall promptly notify Secured Party thereof and, at the request
and option of Secured Party, Debtor shall, pursuant to an agreement in form and
substance reasonably satisfactory to Secured Party, either (i) arrange for the
issuer and any confirmer or other nominated person of such letter of credit to
consent to an assignment to Secured Party of the proceeds of the letter of
credit or (ii) arrange for Secured Party to become the transferee beneficiary of
the letter of credit, with Secured Party agreeing, in each case, that the
proceeds of the letter of 

credit are to be held by Secured Party
as cash collateral for the Obligations. Secured Party shall, so long as no Event
of Default has occurred and is continuing, disburse all such proceeds so held as
cash collateral directly to Debtor; provided, however, that Secured Party
may, if an Event of Default has occurred and is continuing, at its sole option,
apply all or any part of such proceeds to the Obligations in such order or
preference as Secured Party may determine, in its sole discretion. 

          4.7      Commercial
Tort Claims. If Debtor shall at any time hold or acquire a
commercial tort claim, Debtor shall immediately notify Secured Party in a
writing signed by Debtor of the particulars thereof and grant to Secured Party
in such writing a security interest therein and in the proceeds thereof, all
upon the terms of this Agreement, with such writing to be in form and substance
satisfactory to Secured Party. 

          4.8     
Other Actions as to any and all Collateral. Debtor further agrees,
at the request and option of Secured Party, to take any and all other actions
Secured Party may determine to be reasonably necessary or useful for the
attachment, perfection and first priority of, and the ability of Secured Party
to enforce, Secured Party's security interest in any and all of the Collateral,
including, without limitation, (a) executing, delivering and, where appropriate,
filing financing statements and amendments relating thereto under the Uniform
Commercial Code, to the extent, if any, that Debtor's signature thereon is
required therefor, (b) causing Secured Party's name to be noted as secured party
on any certificate of title for a titled good if such notation is a condition to
attachment, perfection or priority of, or ability of Secured Party to enforce,
Secured Party's security interest in such Collateral, (c) complying with any
provision of any statute, regulation or treaty of the United States as to any
Collateral if compliance with such provision is a condition to attachment,
perfection or priority of, or ability of Secured Party to enforce, Secured
Party's security interest in such Collateral, (d) obtaining, if possible,
governmental and other third party waivers, consents and approvals in form and
substance satisfactory to Secured Party, including, without limitation, any
consent of any licensor, lessor or other person obligated on Collateral, (e)
obtaining waivers from mortgagees and landlords in form and substance reasonably
satisfactory to Secured Party and (f) taking all actions under any earlier
versions of the Uniform Commercial Code or under any other law, as reasonably
determined by Secured Party to be applicable in any relevant Uniform Commercial
Code or other jurisdiction, including any foreign jurisdiction. 

          5.      Representations
and Warranties Concerning Debtor's Legal Status. Debtor is,
concurrently with the execution of this Agreement, delivering to Secured Party a
certificate signed by Debtor and entitled "Perfection Certificate" (the
"Perfection Certificate"). Debtor represents and warrants to Secured
Party as follows: (a) Debtor's exact legal name is that indicated on the
Perfection Certificate and on the signature page hereof, (b) Debtor is an
organization of the type, and is organized in the jurisdiction set forth in the
Perfection Certificate, (c) the Perfection Certificate accurately 

sets forth Debtor's organizational identification number or
accurately states that Debtor has none, (d) the Perfection Certificate
accurately sets forth Debtor's place of business or, if more than one, its chief
executive office, as well as Debtor's mailing address, if different, (e) all
other information set forth on the Perfection Certificate pertaining to Debtor
is accurate and complete in all material respects, and (f) that there has been
no material change in any information provided in the Perfection Certificate
since the date on which it was executed by Debtor. 

          6.      Covenants
Concerning Debtor’s Legal Status. Debtor covenants with Secured
Party as follows: (a) without providing at least 30 days prior written notice to
Secured Party, Debtor will not change its name, its place of business or, if
more than one, chief executive office, or its mailing address or organizational
identification number if it has one, (b) if Debtor does not have an
organizational identification number and later obtains one, Debtor shall
forthwith notify Secured Party of such organizational identification number, and
(c) Debtor will not change its type of organization, jurisdiction of
organization or other legal structure. 

          7.      Representations
and Warranties Concerning Collateral, Etc. Debtor further
represents and warrants to Secured Party as follows: (a) Debtor is the owner of
or has other rights in or power to transfer the Collateral, free from any right
or claim or any person or any adverse lien, security interest or other
encumbrance, except for the security interest created by this Agreement, (b)
none of the Collateral constitutes, or is the proceeds of, "farm products" as
defined in §9-102(a)(34) of the Uniform Commercial Code of the State, (c) none
of the account debtors or other persons obligated on any of the Collateral is a
governmental authority covered by the Federal Assignment of Claims Act or like
federal, state or local statute or rule in respect of such Collateral, (d)
Debtor holds no commercial tort claim except as indicated on the Perfection
Certificate, and (e) Debtor has at all times operated its business in compliance
with all applicable provisions of the federal Fair Labor Standards Act, as
amended, and with all applicable provisions of federal, state and local statutes
and ordinances dealing with the control, shipment, storage or disposal of
hazardous materials or substances, (f) all other information set forth on the
Perfection Certificate pertaining to the Collateral is accurate and complete in
all material respects, and (g) that there has been no material change in any
information provided in the Perfection Certificate since the date on which it
was executed by Debtor. 

          8.      Covenants
Concerning Collateral, Etc. Debtor further covenants with Secured
Party as follows: (a) the tangible Collateral, to the extent not delivered to
Secured Party pursuant to §4, will be kept at those locations listed on the
Perfection Certificate and Debtor will not remove the Collateral from such
locations, without providing at least 30 days prior written notice to Secured
Party (with the exception of the movement of inventory sold by Debtor and
removal and replacement of equipment in the ordinary course of Debtor's
business), (b) except for the security interest herein granted, Debtor shall be
the owner of the Collateral free from any right or claim of any other person,
lien, security interest or other encumbrance, and Debtor shall defend the same
against all claims and demands of all persons at any time claiming the same or
any interests therein adverse to Secured Party, (c) Debtor shall not pledge,
mortgage or create, or suffer to exist any right of any person in or claim by
any person to the Collateral, or 

any security interest, lien or encumbrance in the Collateral in
favor of any person, other than Secured Party, (d) Debtor will keep the
Collateral in good order and repair, ordinary wear and tear excepted, and will
not use the same in violation of law or any policy of insurance thereon, (e)
Debtor will permit Secured Party, or its designee, to inspect the Collateral at
any reasonable time on reasonable advance notice, wherever located, (f) Debtor
will pay promptly when due all taxes, assessments, governmental charges and
levies upon the Collateral or incurred in connection with the use or operation
of such Collateral or incurred in connection with this Agreement, except for
such taxes, assessments and governmental charges being contested by Debtor in
good faith, (g) Debtor will continue to operate its business in material
compliance with all applicable provisions of the federal Fair Labor Standards
Act, as amended, and with all applicable provisions of federal, state and local
statutes and ordinances dealing with the control, shipment, storage or disposal
of hazardous materials or substances, and (h) Debtor will not sell or otherwise
dispose, or offer to sell or otherwise dispose, of the Collateral or any
interest therein. 

          9.      Insurance.
Debtor will maintain with financially sound and reputable insurers any
and all insurance typically maintained on such collateral by similarly situated
entities. 

          10.      Collateral
Protection Expenses; Preservation of Collateral.

          10.1      Expenses
Incurred by Secured Party. In Secured Party's discretion, if Debtor
fails to do so within fifteen (15) days after notice from Secured Party, Secured
Party may discharge taxes and other encumbrances at any time levied or placed on
any of the Collateral, maintain any of the collateral, make repairs thereto and
pay any necessary filing fees or insurance premiums. Debtor agrees to reimburse
Secured Party on demand for all expenditures so made. Secured Party shall have
no obligation to Debtor to make any such expenditures, nor shall the making
thereof be construed as the waiver or cure of any Default or Event of Default.

          10.2     
Secured Party's Obligations and Duties. Anything herein to the
contrary notwithstanding, Debtor shall remain obligated and liable under each
contract or agreement comprised in the Collateral to be observed or performed by
Debtor thereunder. Secured Party shall not have any obligation or liability
under any such contract or agreement by reason of or arising out of this
Agreement or the receipt by Secured Party of any payment relating to any of the
Collateral, nor shall Secured Party be obligated in any manner to perform any of
the obligations of Debtor under or pursuant to any such contract or agreement,
to make inquiry as to the nature or sufficiency of any payment received by
Secured Party in respect of the Collateral or as to the sufficiency of any
performance by any party under any such contract or agreement, to present or
file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to Secured Party or to which
Secured Party may be entitled at any time or times. Secured Party's sole duty
with respect to the custody, safe keeping and physical preservation of the
Collateral in its possession, under §9-207 

of the Uniform Commercial Code of the
State or otherwise, shall be to deal with such Collateral in the same manner as
Secured Party deals with similar property for its own account. 

          11.      Securities
and Deposits. Secured Party may at any time following and during
the continuance of an Event of Default, at its option, transfer to itself or any
nominee any securities constituting Collateral, receive any income thereon and
hold such income as additional Collateral or apply it to the Obligations.
Whether or not any Obligations are due, Secured Party may following and during
the continuance of an Event of Default demand, sue for, collect, or make
any settlement or compromise which it deems desirable with respect to the
Collateral. Regardless of the adequacy of Collateral or any other security for
the Obligations, any deposits or other sums at any time credited by or due from
Secured Party to Debtor may at any time be applied to or set off against any of
the Obligations then due and owing. 

          12.      Notification
to Account Debtors and Other Persons Obligated on Collateral.
If an Event of Default shall have occurred and be continuing, Debtor
shall, at the request and option of Secured Party, notify account debtors and
other persons obligated on any of the Collateral of the security interest of
Secured Party in any account, chattel paper, general intangible, instrument or
other Collateral and that payment thereof is to be made directly to Secured
Party or to any financial institution designated by Secured Party as Secured
Party's agent therefor, and Secured Party may itself, if an Event of
Default shall have occurred and be continuing, without notice to or demand upon
Debtor, so notify account debtors and other persons obligated on Collateral.
After the making of such a request or the giving of any such notification,
Debtor shall hold any proceeds of collection of accounts, chattel paper, general
intangibles, instruments and other Collateral received by Debtor as trustee for
Secured Party without commingling the same with other funds of Debtor and shall
turn the same over to Secured Party in the identical form received, together
with any necessary endorsements or assignments. Secured Party shall apply the
proceeds of collection of accounts, chattel paper, general intangibles,
instruments and other Collateral received by Secured Party to the Obligations,
such proceeds to be immediately credited after final payment in cash or other
immediately available funds of the items giving rise to them. 

          13.      Power
of Attorney.

          13.1      Appointment
and Powers of Secured Party. Debtor hereby irrevocably constitutes
and appoints Secured Party and any officer or agent thereof, with full power of
substitution, as its true and lawful attorneys-in-fact with full irrevocable
power and authority in the place and stead of Debtor or in Secured Party's own
name, for the purpose of carrying out the terms of this Agreement, to take any
and all appropriate action and to execute any and all documents and instruments
that may be necessary or useful to accomplish the purposes of this Agreement
and, without limiting the generality of the foregoing, hereby gives said
attorneys the power and right, on behalf of Debtor, without notice to or assent
by Debtor, to do the following: 

          (a)      upon
the occurrence and during the continuance of an Event of Default, generally to
sell, transfer, pledge, make any agreement with respect to or otherwise dispose
of or deal with any of the Collateral in such manner as is consistent with the
Uniform Commercial Code of the State and as fully and completely as though
Secured Party were the absolute owner thereof for all purposes, and to do, at
Debtor's expense, at any time, or from time to time, all acts and things which
Secured Party deems necessary or useful to protect, preserve or realize upon the
Collateral and Secured Party's security interest therein, in order to effect the
intent of this Agreement, all at least as fully and effectively as Debtor might
do, including, without limitation, (i) the filing and prosecuting of
registration and transfer applications with the appropriate federal, state,
local or other agencies or authorities with respect to trademarks, copyrights
and patentable inventions and processes, (ii) upon written notice to Debtor, the
exercise of voting rights with respect to voting securities, which rights may be
exercised, if Secured Party so elects, with a view to causing the liquidation of
assets of the issuer of any such securities, and (iii) the execution, delivery
and recording, in connection with any sale or other disposition of any
Collateral, of the endorsements, assignments or other instruments of conveyance
or transfer with respect to such Collateral; and 

          (b)      to
the extent that Debtor's authorization given in §3 is not sufficient, to file
such financing statements with respect hereto, with or without Debtor's
signature, or a photocopy of this Agreement in substitution for a financing
statement, as Secured Party may deem appropriate and to execute in Debtor's name
such financing statements and amendments thereto and continuation statements
which may require Debtor's signature. 

          13.2      Ratification
by Debtor. To the extent permitted by law, Debtor hereby ratifies
all that said attorneys shall lawfully do or cause to be done by virtue hereof.
This power of attorney is a power coupled with an interest and is irrevocable.

          13.3     
No Duty on Secured Party. The powers conferred on Secured Party
hereunder are solely to protect its interests in the Collateral and shall not
impose any duty upon it to exercise any such powers. Secured Party shall be
accountable only for the amounts that it actually receives as a result of the
exercise of such powers, and neither it nor any of its officers, directors,
employees or agents shall be responsible to Debtor for any act or failure to
act, except for Secured Party's own gross negligence or willful misconduct. 

          14.      Rights
and Remedies. If an Event of Default shall have occurred and be
continuing, Secured Party, without any other notice to or demand upon Debtor,
shall have in any jurisdiction in which enforcement hereof is sought, in
addition to all other rights and remedies, the rights and remedies of a secured
party under the Uniform Commercial 

Code of the State and any additional rights and remedies which
may be provided to a secured party in any jurisdiction in which Collateral is
located, including, without limitation, the right to (a) take possession of the
Collateral, and for that purpose Secured Party may, so far as Debtor can give
authority therefor, enter upon any premises on which the Collateral may be
situated and remove the same therefrom, and (b) locate, disable or to take
possession of the Collateral by electronic, digital, magnetic or wireless
optical electromagnetic or similar means after giving any notices required under
applicable law. Secured Party may in its discretion require Debtor to assemble
all or any part of the Collateral at such location or locations within the
jurisdiction(s) of Debtor's principal office(s) or at such other locations as
Secured Party may reasonably designate. Unless the Collateral is perishable or
threatens to decline speedily in value or is of a type customarily sold on a
recognized market, Secured Party shall give to Debtor at least ten (10) Business
Days prior written notice of the time and place of any public sale of Collateral
or of the time after which any private sale or any other intended disposition is
to be made. Debtor hereby acknowledges that ten (10) Business Days prior written
notice of such sale or sales shall be reasonable notice.

          15.     
Standards for Exercising Rights and Remedies. To the extent that
applicable law imposes duties on Secured Party to exercise remedies in a
commercially reasonable manner, Debtor acknowledges and agrees that it is
commercially reasonable for Secured Party (a) to fail to incur expenses
reasonably deemed significant by Secured Party to prepare Collateral for
disposition or otherwise to fail to complete raw material or work in process
into finished goods or other finished products for disposition, (b) to fail to
obtain third party consents for access to Collateral to be disposed of, or to
obtain or, if not required by other law, to fail to obtain governmental or third
party consents for the collection or disposition of Collateral to be collected
or disposed of, (c) to fail to exercise collection remedies against account
debtors or other persons obligated on Collateral or to fail to remove liens or
encumbrances on or any adverse claims against Collateral, (d) to exercise
collection remedies against account debtors and other persons obligated on
Collateral directly or through the use of collection agencies and other
collection specialists, (e) to advertise dispositions of Collateral through
publications or media of general circulation, whether or not the Collateral is
of a specialized nature, (f) to contact other persons, whether or not in the
same business as Debtor, for expressions of interest in acquiring all or any
portion of the Collateral, (g) to hire one or more professional auctioneers to
assist in the disposition of Collateral, whether or not the collateral is of a
specialized nature, (h) to dispose of Collateral by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral
or that have the reasonable capability of doing so, or that match buyers and
sellers of assets, (i) to dispose of assets in wholesale rather than retail
markets, (j) to disclaim disposition warranties, (k) to purchase insurance or
credit enhancements to insure Secured Party against risks of loss, collection or
disposition of Collateral or to provide to Secured Party a guaranteed return
from the collection or disposition of Collateral, or (l) to the extent deemed
appropriate by Secured Party, to obtain the services of other brokers,
investment bankers, consultants and other professionals to assist Secured Party
in the collection or disposition of any of the Collateral. Debtor acknowledges
that the purpose of this §15 is to provide non-exhaustive indications of what
actions or omissions by Secured Party would fulfill Secured Party's duties under
the Uniform Commercial Code or other law of the State or any other 

relevant jurisdiction in Secured Party's exercise of remedies
against the Collateral and that other actions or omissions by Secured Party
shall not be deemed to fail to fulfill such duties solely on account of not
being indicated in this §15. Without limitation upon the foregoing, nothing
contained in this §15 shall be construed to grant any rights to Debtor or to
impose any duties on Secured Party that would not have been granted or imposed
by this Agreement or by applicable law in the absence of this §15.

          16.      No
Waiver by Secured Party, etc. Secured Party shall not be deemed to
have waived any of its rights or remedies in respect of the Obligations or the
Collateral unless such waiver shall be in writing and signed by Secured Party.
No delay or omission on the part of Secured Party in exercising any right or
remedy shall operate as a waiver of such right or remedy or any other right or
remedy. A waiver on any one occasion shall not be construed as a bar to or
waiver of any right or remedy on any future occasion. All rights and remedies of
Secured Party with respect to the Obligations or the Collateral, whether
evidenced hereby or by any other instrument or papers, shall be cumulative and
may be exercised singularly, alternatively, successively or concurrently at such
time or at such times as Secured Party deems expedient. 

          17.      Suretyship
Waivers by Debtor. Debtor waives demand, notice, protest, notice of
acceptance of this Agreement, notice of loans made, credit extended, Collateral
received or delivered or other action taken in reliance hereon and all other
demands and notices of any description. With respect to both the Obligations and
the Collateral, Debtor assents to any extension or postponement of the time of
payment or any other indulgence, to any substitution, exchange or release of or
failure to perfect any security interest in any Collateral, to the addition or
release of any party or person primarily or secondarily liable, to the
acceptance of partial payment thereon and the settlement, compromising or
adjusting of any thereof, all in such manner and at such time or times as
Secured Party may deem advisable. Secured Party shall have no duty as to the
collection or protection of the Collateral or any income therefrom, the
preservation of rights against prior parties, or the preservation of any rights
pertaining thereto beyond the safe custody thereof as set forth in §10.2. Debtor
further waives any and all other suretyship defenses. 

          18.      Marshalling.
Secured Party shall not be required to marshal any present or future
collateral security (including but not limited to the Collateral) for, or other
assurances of payment of, the Obligations or any of them or to resort to such
collateral security or other assurances of payment in any particular order, and
all of its rights and remedies hereunder and in respect of such collateral
security and other assurances of payment shall be cumulative and in addition to
all other rights and remedies, however existing or arising. To the extent that
it lawfully may, Debtor hereby agrees that it will not invoke any law relating
to the marshalling of collateral which might cause delay in or impede the
enforcement of Secured Party's rights and remedies under this Agreement or under
any other instrument creating or evidencing any of the Obligations or under
which any of the Obligations is outstanding or by which any of the Obligations
is secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, Debtor hereby irrevocably waives the benefits of all such laws.

          19.      Proceeds
of Dispositions; Expenses. Debtor shall pay to Secured Party on
demand any and all expenses, including reasonable attorneys' fees and
disbursements, incurred or paid by Secured Party following an Event of Default
in protecting, preserving or enforcing Secured Party's rights and remedies under
or in respect of any of the Obligations or any of the Collateral. After
deducting all of said expenses, the residue of any proceeds of collection or
sale or other disposition of the Collateral shall, to the extent actually
received in cash, be applied to the payment of the Obligations in such order or
preference as Secured Party may determine, in its sole discretion, proper
allowance and provision being made for any Obligations not then due. Upon the
final payment and satisfaction in full of all of the Obligations and after
making any payments required by Sections 9-608(a) (1) (C) or 9-615(a) (3) of the
Uniform Commercial Code of the State, any excess shall be returned to Debtor. In
the absence of final payment and satisfaction in full of all of the Obligations,
Debtor shall remain liable for any deficiency. 

          20.      Overdue
Amounts. Until paid, all amounts due and payable by Debtor
hereunder shall be a debt secured by the Collateral and shall bear, whether
before or after judgment, interest at the rate of interest for overdue principal
set forth in the Note.

          21.      Notices.
All notices, demands, requests, and other communications given under this
Agreement shall only be effective (a) if they are (i) in writing, and (ii) sent
by hand delivery, by facsimile transmission, by reputable express delivery
service, or by certified or registered mail, postage prepaid, and (b) (i) when
delivered to the addressee by hand, (ii) when received by the addressee as
evidenced by a return receipt signed by the addressee or its agent, or (iii)
when transmitted, answer back received, if sent by facsimile transmission: 

	 	(i) 	If to Secured Party, to it at:
  
	 	  	  
	 	  	TK Management LLC 
	 	 	1692 Massachusetts
      Avenue 
	 	  	Cambridge, MA 02138 
	 	  	Attn: Brendan Reilly 
	 	  	Telephone No.:__________________
    
	 	  	Facsimile No.: 
	 	  	  
	 	With a copy to: 	
	 	  	  
	 	  	Robinson & Cole LLP 
	 	  	695 East Main Street 
	 	  	Stamford, CT 06904-2305 
	 	  	Attn: Eric J. Dale, Esq. 
	 	 	Telephone No.:
      (203) 462-7568 
	 	 	Facsimile No.:
      (203) 462-7599 

	 	(ii) 	If to Debtor, to it at: 
	 	  	
	 	  	Fortified Data Communications, Inc. 
	 	 	c/o Fortified Holdings Corp. 
	 	  	75200 Shady Grove Road, Suite 202 
	 	 	Rockville, Maryland 20850 
	 	  	Attn.: [y] 
	 	  	Telephone No.: [y] 
	 	  	Facsimile No.: [y] 
	 	  	
	 	With a copy to: 	
	 	  	
	 	  	Richardson & Patel LLP 
	 	  	The Chrysler Building 
	 	  	405 Lexington Avenue, 26th Floor 
	 	 	New York, New York 10174 
	 	 	Attn.: Jody R. Samuels, Esq. 
	 	  	Telephone No.: (212) 907-6686 
	 	 	Facsimile No.: (212) 907-6687

or to such other address (and/or facsimile transmission number)
as Secured Party or Debtor, as the case may be, shall have specified in the
latest unrevoked notice sent to the other in accordance with this §21. 

          22.      Governing
Law; Consent to Jurisdiction; Prejudgment Remedies;
Waivers.

          (a)      This
Agreement and the other Loan Documents shall be construed in accordance with and
governed by the laws of the State of Connecticut (excluding the laws applicable
to conflicts or choice of law). It is the express intention of Secured Party and
Debtor that the laws of the State of Connecticut (but not its conflict of laws
rules) apply to the entirety of the transactions evidenced by the Loan
Documents. 

                    (b)      Debtor
hereby irrevocably submits, for itself and its property, to the nonexclusive
jurisdiction of any Connecticut State or United States Federal court sitting in
the State of Connecticut, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement or the other
Loan Documents, or for recognition or enforcement of any judgment, and Debtor
hereby irrevocably and unconditionally agrees that all claims in respect to such
action or proceeding may be heard and determined in such Connecticut State or
Federal court. Debtor irrevocably consents to the service of any and all process
in any such action or proceeding by the mailing of copies of such process to
Debtor by registered or certified mail, return receipt requested, at the address
specified in §21. Debtor agrees 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. 

                    (c)      Nothing
in this §22 shall affect the right of Secured Party to serve legal process in
any other manner permitted by law or affect any right that Secured Party may
otherwise have to bring an action or proceeding relating to this Agreement or
the other Loan Documents against Debtor or its properties in the courts of any
jurisdiction, including without limitation, the courts (State and Federal) of or
sitting in the State of Connecticut. 

                    (d)      Debtor
hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or any other Loan Document in any Connecticut State
or Federal Court (or other State or Federal Court chosen by Secured Party as
provided above). Debtor hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court. 

                    (e)      To
the extent that Debtor has or hereafter may acquire any immunity from
jurisdiction of any court or from any legal process (whether from service or
notice, attachment prior to judgment, attachment in aid of execution, execution
or otherwise,) with respect to Debtor or its property, Debtor hereby irrevocably
waives such immunity in respect of its obligations under this Agreement, the
Notes and the other Loan Documents. 

                    (f)     
(i) TO INDUCE SECURED PARTY TO ENTER INTO THE COMMERCIAL LOAN TRANSACTION
EVIDENCED BY THIS AGREEMENT, THE NOTE, AND ANY OTHER LOAN DOCUMENTS, DEBTOR
AGREES THAT THIS IS A COMMERCIAL TRANSACTION AND NOT A CONSUMER
TRANSACTION, AND (SUBJECT ONLY TO SECTION (f)(ii) HEREOF) WAIVES ANY RIGHT TO
NOTICE AND A HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES, AS
AMENDED, OR UNDER ANY OTHER FEDERAL OR STATE STATUTE OR STATUTES OR FOREIGN LAWS
AFFECTING PREJUDGMENT REMEDIES, AND AUTHORIZES SECURED PARTY’S ATTORNEY TO ISSUE
A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER, PROVIDED THE COMPLAINT
SHALL SET FORTH A COPY OF THIS WAIVER, AND WAIVES ANY CLAIM IN TORT, CONTRACT OR
OTHERWISE AGAINST SECURED PARTY’S ATTORNEY WHICH MAY ARISE OUT OF SUCH ISSUANCE
OF A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER. FURTHER, SUBJECT ONLY TO
SECTION (f)(ii) HEREOF, IN THE EVENT SECURED PARTY SEEKS TO TAKE POSSESSION OF
ANY OR ALL OF DEBTOR’S PROPERTIES OR OTHER ASSETS BY COURT PROCESS OR OTHER
METHOD AVAILABLE UNDER THE LAW, DEBTOR IRREVOCABLY WAIVES ANY BOND AND ANY
SURETY OR SECURITY RELATING THERETO REQUIRED BY ANY STATUTE, COURT RULE OR
OTHERWISE AS AN INCIDENT TO SUCH POSSESSION, AND WAIVES ANY DEMAND FOR
POSSESSION PRIOR TO THE COMMENCEMENT OF ANY SUIT OR ACTION TO RECOVER WITH
RESPECT THERETO. SPECIFICALLY, DEBTOR 

RECOGNIZES AND UNDERSTANDS THAT THE EXERCISE OF SECURED
PARTY’S RIGHTS DESCRIBED ABOVE MAY RESULT IN THE ATTACHMENT OF OR LEVY AGAINST
DEBTOR’S PROPERTY, AND SUCH WRIT FOR A PREJUDGMENT REMEDY WILL NOT HAVE THE
PRIOR WRITTEN APPROVAL OR SCRUTINY OF A COURT OF LAW OR OTHER JUDICIAL OFFICER
AND DEBTOR WILL NOT HAVE THE RIGHT TO ANY NOTICE OR PRIOR HEARING WHERE DEBTOR
MIGHT CONTEST SUCH A PROCEDURE. THE INTENT OF DEBTOR IS TO GRANT TO SECURED
PARTY FOR GOOD AND VALUABLE CONSIDERATION THE RIGHT TO OBTAIN SUCH A PREJUDGMENT
REMEDY AND TO EXPRESS ITS BELIEF THAT ANY SUCH PREJUDGMENT REMEDY OBTAINED IS
VALID AND CONSTITUTIONAL UNLESS A COURT OF COMPETENT JURISDICTION SHOULD
DETERMINE OTHERWISE. FURTHER, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
DEBTOR HEREBY WAIVES DEMAND, PRESENTMENT FOR PAYMENT, PROTEST, NOTICE OF
PROTEST, NOTICE OF DISHONOR, DILIGENCE IN COLLECTION, NOTICE OF NONPAYMENT OF
THIS AGREEMENT AND ANY NOTES AND ANY AND ALL NOTICES OF A LIKE NATURE. FURTHER,
TO THE EXTENT NOT OTHERWISE EXPRESSLY PROVIDED HEREIN, DEBTOR EXPRESSLY WAIVES
ALL DEFENSES OF SURETYSHIP OR IMPAIRMENT OF COLLATERAL. 

                    (ii)      THE
FOREGOING (A) WAIVER BY DEBTOR OF ITS RIGHT TO A HEARING UNDER CHAPTER 903(a) OF
THE CONNECTICUT GENERAL STATUTES, AS AMENDED, OR UNDER ANY OTHER FEDERAL OR
STATE STATUTE OR STATUTES OR FOREIGN LAWS AFFECTING PREJUDGMENT REMEDIES, (B)
AUTHORIZATION TO SECURED PARTY’S ATTORNEY TO ISSUE A WRIT FOR A PREJUDGMENT
REMEDY WITHOUT COURT ORDER, AND (C) WAIVER OF ANY BOND, SURETY OR SECURITY OR OF
ANY DEMAND FOR POSSESSION PRIOR TO THE COMMENCEMENT OF A SUIT OR ACTION AS
DESCRIBED ABOVE, SHALL NOT APPLY TO ACTIONS TAKEN BY SECURED PARTY UNDER CHAPTER
903(a) OF THE CONNECTICUT GENERAL STATUTES, AS AMENDED (x) IF DEBTOR OR ANY
OTHER MEMBER OF THE PURCHASER GROUP (AS DEFINED IN THE MERGER AGREEMENT) SHALL
HAVE GIVEN WRITTEN NOTICE OF A CLAIM FOR INDEMNIFICATION BY SELLER PURSUANT TO
SECTION 9.1(a)(i) OF THE AGREEMENT AND PLAN OF MERGER DATED AS OF MAY 31, 2007
BY AND AMONG BORROWER, SECURED PARTY, Z5 TECHNOLOGIES LLC AND DEBTOR (THE
“MERGER AGREEMENT”) PRIOR TO THE COMMENCEMENT OF SUCH ACTION BY SECURED PARTY,
OR (y) WHILE THE PRINCIPAL OF OR ACCRUED INTEREST ON ANY ONE OR MORE OF THE
PROMISSORY NOTES OF BORROWER LISTED ON SCHEDULE A HERETO REMAINS OUTSTANDING
(NEITHER PAID IN FULL, NOR CONVERTED TO EQUITY, NOR A COMBINATION THEREOF)
UNLESS SECURED PARTY HAS OBTAINED THE WRITTEN CONSENT OF THE HOLDER(S) OF SUCH
OUTSTANDING NOTE(S). 

23.      Additional
Waivers. 

          24.1     
Jury Trial and Certain Damages. DEBTOR AND SECURED PARTY MUTUALLY HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN
RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY
COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF SECURED PARTY
RELATING TO THE ADMINISTRATION OF ANY OF THE OBLIGATIONS OR ENFORCEMENT OF THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, AND AGREE THAT NEITHER PARTY WILL SEEK TO
CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT
BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, DEBTOR HEREBY WAIVES ANY
RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO,
ACTUAL DAMAGES. 

          23.2      DEBTOR
(A) CERTIFIES THAT NEITHER SECURED PARTY NOR ANY REPRESENTATIVE, AGENT OR
ATTORNEY OF SECURED PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SECURED
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE ANY OR ALL OF THE
FOREGOING WAIVERS OR OTHER WAIVERS CONTAINED IN THIS AGREEMENT, (B) ACKNOWLEDGES
AND STIPULATES THAT THE FOREGOING WAIVERS AND OTHER WAIVERS CONTAINED IN THIS
AGREEMENT ARE MADE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY AND AFTER FULL
CONSULTATION WITH COUNSEL, AND (C) ACKNOWLEDGES THAT THE FOREGOING WAIVERS AND
OTHER WAIVERS CONTAINED IN THIS AGREEMENT CONSTITUTE A MATERIAL INDUCEMENT FOR
SECURED PARTY TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH
SECURED PARTY IS A PARTY AND MAKE THE LOANS. 

24.     
Entire Agreement; Severability. 

          24.1     
Entire Agreement. This Agreement is intended by the parties as
the final, complete and exclusive statement of the transactions evidenced by
this Agreement. All prior or contemporaneous promises, agreements and
understandings, whether oral or written, are deemed to be superceded by this
Agreement, and no party is relying on any promise, agreement or understanding
not set forth in this Agreement. Nothing in this Agreement, express or implied,
is 

intended to confer upon any party other than the parties hereto
and thereto, any rights, remedies, obligations or liabilities under or by reason
of this Agreement. 

          24.2     
Severability. If any one or more terms or provisions contained
in this Agreement or the application thereof to any circumstance shall, in any
jurisdiction and to any extent, be held invalid, illegal or unenforceable, such
terms or provisions shall be ineffective as to such jurisdiction only to the
extent of such invalidity, illegality or unenforceability without invalidating
or rendering unenforceable the remaining terms and provisions hereof or thereof
or the application of such term or provision to circumstances other than those
as to which it is held invalid, illegal or unenforceable. The parties shall
endeavor in good faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions. 

          25.     
Miscellaneous. The headings of each section of this Agreement
are for convenience only and shall not define or limit the provisions thereof.
This Agreement and all rights and obligations hereunder shall be binding upon
Debtor and its respective successors and assigns, and shall inure to the benefit
of Secured Party and its successors and assigns. Debtor acknowledges receipt of
a copy of this Agreement. 

THE NEXT PAGE IS THE SIGNATURE PAGE 

          IN
WITNESS WHEREOF, intending to be legally bound, Debtor has caused this Agreement
to be duly executed as of the date first above written. 

FORTIFIED DATA 
COMMUNICATIONS,
INC.

By:     /s/ Dennis
Mee
                  
        
Dennis Mee 
         President &
Secretary

Accepted: 

THOMAS KEENAN VENTURES, LLC 

 

By: /s/ Brendan Reilly

        Name: Brendan Reilly

        Title: Sole Manager of TK

                
Management, LLC, the

                
Manager 

Schedule A

 

	  	 	  	 	Original 
	Payee 	 	Date 	 	Principal Amount 
	Greg Veitch 	 	April 26, 2007 	 	$               
      250,000 
	Tom Joyce 	 	April 26, 2007 	 	$               
      250,000 
	Jason Baer 	 	May 4, 2007 	 	$                 
      50,000 
	William P. Whalen 	 	May 9, 2007 	 	$               
      100,000 
	Charles Schwab & Co. Inc. 	 	  	 	$               
      100,000 
	as Custodian for Paul M. Foley IRA 	 	May 11, 2007

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