Document:

ISLAND PACIFIC, INC. AND CERTAIN OF ITS SUBSIDIARIES
                            MASTER SECURITY AGREEMENT

To:     Multi-Channel Holdings, Inc.
c/o Golden Gate Private Equity, Inc.
One Embarcadero Center, 33rd Floor
San Francisco, CA 94111
Attention:  Prescott Ashe and Rajeev Amara
Facsimile:  (415) 627-4501

Date:    April 18, 2005

To Whom It May Concern:

         1. To secure the payment of all Obligations (as hereafter defined),
Island Pacific, Inc., a Delaware corporation (the "Company"), each of the other
undersigned parties (other than Multi-Channel Holdings, Inc., ("Multi-Channel"))
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 Multi-Channel 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 has or at any time in the future may acquire any
right, title or interest (the "Collateral"): all cash, cash equivalents,
accounts, deposit accounts (including, without limitation, the Restricted
Accounts (the "Restricted Accounts") maintained at each of Silicon Valley Bank
(Account Name: Cash Collateral Account, Account Number: 3300397264; Account
Name: Payroll Account, Account Number: 3300397279; Account Name: Operating
Accounting, Account Number: 3300400459) referred to in the Silicon Valley Bank
Restricted Account Agreement) and California Bank and Trust (Account Name:
Checking, Account Number: 21-400272-81; Account Name: Payroll, Account Number:
21-400274-41; Account Name: Administrative Division, Account Number:
21-400185-31; Account Name: Money Market, Account Number: 21-400169-19; Account
Name: Store Solutions Division, Account Number: 21-400273-61; Account Name: IPI
Acquisition, Inc. d/b/a Page Digital, Account Number: 21-400231-01) referred to
in the California Bank and Trust Restricted Account Agreement), 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 current 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, trademark applications, tradestyles, patents, patent
applications, copyrights, copyright applications 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; provided, however, that the Collateral shall not include
non-assignable real estate leases to which any Assignor is a party. In the event
any Assignor wishes to finance the acquisition in the ordinary course of
business of any hereafter acquired equipment and has obtained a commitment from
a financing source to finance such equipment from an unrelated third party,
Multi-Channel 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 Note Purchase Agreement referred to below.

<PAGE>

         2. The term "Obligations" as used herein shall mean and include all
debts, liabilities and obligations owing by each Assignor to Multi-Channel
arising under, out of, or in connection with: (i) that certain Note Purchase
Agreement dated as of the date hereof by and between the Company and
Multi-Channel (the "Note Purchase Agreement") and (ii) the Related Agreements
referred to in the Note Purchase Agreement (the Note Purchase Agreement and each
Related Agreement, as each may be amended, modified, restated or supplemented
from time to time, are collectively referred to herein 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 Multi-Channel,
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 Multi-Channel 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 Multi-Channel
         thirty (30) days' prior written notice of any change in any of its
         respective jurisdiction of organization;

                  (b) its legal name is as set forth in its respective
         Certificate 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 Multi-Channel 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 Multi-Channel
         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 other than Laurus;

                                       2
<PAGE>

                  (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) the
         liens and security interests securing the Laurus Indebtedness (the
         "Laurus Encumbrance"); (ii) Encumbrances securing the Obligations;
         (iii) Encumbrances permitted under Section 6(m)(v) of the Note Purchase
         Agreement ; and (iv) Encumbrance that do not secure indebtedness in
         excess of $50,000 and are removed or otherwise released within ten (10)
         days of the creation thereof;

                  (f) it will, at its and the other Assignors joint and several
         cost and expense 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 Multi-Channel'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 $50,000
         and only to the extent that:

                           (i) the proceeds of any such disposition are used to
                  acquire replacement Collateral which is subject to
                  Multi-Channel's 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
                  Laurus in accordance with the terms of the Subordination
                  Agreement to be held as cash collateral for the Laurus
                  Indebtedness, and upon payment in full of the Laurus
                  Indebtednes, to Multi-Channel to be held as cash collateral
                  for the Obligations;

                  (h) it will insure or cause the Collateral to be insured in
         Multi-Channel's name against loss or damage by fire, theft, burglary,
         pilferage, loss in transit and such other hazards as Multi-Channel
         shall specify in amounts and under policies by insurers acceptable to
         Multi-Channel and all premiums thereon shall be paid by such Assignor
         and the policies delivered to Multi-Channel. If any such Assignor fails
         to do so, Multi-Channel 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 allow Multi-Channel or
         Multi-Channel' 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 Multi-Channel harmless from all
         loss, costs, damage, liability and/or expense, including reasonable
         attorneys' fees, that Multi-Channel 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 Multi-Channel 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 Multi-Channel's
         own gross negligence or willful misconduct (as determined by a court of
         competent jurisdiction in a final and nonappealable decision).

                                       3
<PAGE>

         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 Multi-Channel 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 fifteen (15) days; provided that, if such breach is of a
         nature that it can not be cured within fifteen (15) days and Assignor
         has taken reasonable steps to cure such default within fifteen (15)
         days, upon written notice to and the consent of Multi-Channel, the
         Assignor will have a commercially reasonable amount of time to cure
         such breach before such breach shall be deemed an Event of Default;

                  (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 repay Laurus or, if the Laurus
                  Indebtedness has been paid in full, Multi-Channel; or

                           (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;

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

                  (d) 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 thirty (30) days;

                  (e) 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

                  (f) an Event of Default shall have occurred and be continuing
         beyond any applicable grace period under and as defined in any
         Document.

                                       4
<PAGE>

         5. Upon the occurrence of any Event of Default and at any time
thereafter, Multi-Channel may declare all Obligations immediately due and
payable and Multi-Channel shall have the remedies of a secured party provided in
the Uniform Commercial Code as in effect in the State of California, this
Agreement and other applicable law. Upon the occurrence of any Event of Default
and at any time thereafter following the expiration of the applicable cure
period, Multi-Channel 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 Multi-Channel may desire. Upon
Multi-Channel's request, each of the Assignors shall assemble or cause the
Collateral to be assembled and make it available to Multi-Channel at a place
designated by Multi-Channel. 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 Multi-Channel's
records for such Assignor. Any proceeds of any disposition of any of the
Collateral shall be applied by Multi-Channel 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 Multi-Channel toward the payment of the
Obligations in such order of application as Multi-Channel may elect, and each
Assignor shall be liable for any deficiency. For the avoidance of doubt,
following the occurrence and during the continuance of an Event of Default which
has not been cured, Multi-Channel shall have the immediate right to withdraw any
and all monies contained in the Restricted Account and apply same to the
repayment of the Obligations (in such order of application as Multi-Channel may
elect).

         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, Multi-Channel 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.

         7. Each Assignor appoints Multi-Channel, any of Multi-Channel's
officers, employees or any other person or entity whom Multi-Channel 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 (and, in connection with
the filing of any such financing statements, describe the Collateral as "all
assets and all personal property, whether now owned and/or hereafter acquired"
(or any substantially similar variation thereof)); to sign our name on public
records; and to do all other things Multi-Channel reasonably deems necessary to
carry out this Master Security Agreement. This power being coupled with an
interest, is irrevocable so long as any Obligations remains unpaid.

         8. No delay or failure on Multi-Channel'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 Multi-Channel and then only to the extent therein set
forth, and no waiver by Multi-Channel of any default shall operate as a waiver
of any other default or of the same default on a future occasion.

                                       5
<PAGE>

Multi-Channel'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. Multi-Channel shall
have the right to enforce any one or more of the remedies available to
Multi-Channel, successively, alternately or concurrently. Each Assignor agrees
to join with Multi-Channel in executing financing statements or other
instruments to the extent required by the Uniform Commercial Code in form
satisfactory to Multi-Channel and in executing such other documents or
instruments as may be required or deemed necessary by Multi-Channel for purposes
of affecting or continuing Multi-Channel'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 California and cannot be terminated
orally. All of the rights, remedies, options, privileges and elections given to
Multi-Channel hereunder shall inure to the benefit of Multi-Channel's successors
and assigns. The term "Multi-Channel" as herein used shall include
Multi-Channel, any parent of Multi-Channel's, any of Multi-Channel's
subsidiaries and any co-subsidiaries of Multi-Channel'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 each of the foregoing, and shall bind the representatives,
successors and assigns of each Assignor. Multi-Channel 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 court in the state of California and (c) waive any objection
Multi-Channel or each Assignor may have as to the bringing or maintaining of
such action with any such court.

         10. In the event of any conflict between the terms of this Agreement
and the terms of the Stock Pledge Agreement dated as of the date hereof between
Multi-Channel and the Company (the "Stock Pledge Agreement"), the terms of the
Stock Pledge Agreement will govern as to all matters relating to the Pledged
Collateral (as such term is defined in the Stock Pledge Agreement).

         11. All notices from Multi-Channel to any Assignor shall be
sufficiently given if mailed or delivered to such Assignor's address set forth
below.

                                       6
<PAGE>

                                             Very truly yours,

                                             ISLAND PACIFIC, INC.

                                             By: /s/ M. Tomczak
                                             -----------------------------------
                                             Name: Mike Tomczak
                                             Title: President
                                             Address:

                                             PAGE DIGITAL INCORPORATED

                                             By: /s/ M. Tomczak
                                             -----------------------------------
                                             Name: Mike Tomczak
                                             Title: President
                                             Address:

                                             IP RETAIL TECHNOLOGIES
                                             INTERNATIONAL, INC.

                                             By: /s/ M. Tomczak
                                             -----------------------------------
                                             Name: Mike Tomczak
                                             Title: President
                                             Address:

                                             SABICA VENTURES, INC.

                                             By: /s/ M. Tomczak
                                             -----------------------------------
                                             Name: Mike Tomczak
                                             Title: President
                                             Address:

                                             ACKNOWLEDGED:

                                             MULTI-CHANNEL HOLDINGS, INC.

                                             By: /s/ Prescott Ashe
                                             -----------------------------------
                                             Name: Prescott Ashe
                                             Title: Managing Director<PAGE>
EXHIBIT 4.4

                               SUBSIDIARY GUARANTY

San Francisco, California                                         April 18, 2005

         FOR VALUE RECEIVED, and in consideration of note purchases from, loans
made or to be made or credit otherwise extended or to be extended by
Multi-Channel Holdings, Inc. ("Multi-Channel") to or for the account of Island
Pacific, Inc., a Delaware corporation ("Debtor"), from time to time and at any
time and for other good and valuable consideration and to induce Multi-Channel,
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 Multi-Channel 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 Multi-Channel,
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 Multi-Channel 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
Multi-Channel, 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 Multi-Channel, whether arising under, out of, or in
connection with (i) that certain Note Purchase Agreement dated as of the date
hereof by and between the Debtor and Multi-Channel (the "Note Purchase
Agreement") and (ii) each Related Agreement referred to in the Note Purchase
Agreement (the Note Purchase Agreement and each Related 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 Multi-Channel, 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 "Guaranteed
Obligations"), and irrespective of the genuineness, validity, regularity or
enforceability of such Guaranteed Obligations, or of any instrument evidencing
any of the Guaranteed 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 Guaranteed 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 Guaranteed Obligations but for the commencement of such case. Terms
not otherwise defined herein shall have the meaning assigned such terms in the
Note Purchase Agreement. In furtherance of the foregoing, the undersigned hereby
agrees as follows:

         1. NO IMPAIRMENT. Multi-Channel 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 Guaranteed 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 Guaranteed
Obligations, or interested therein, for the extension, renewal, payment,
compromise, discharge or release thereof, in whole or in part, or for any

<PAGE>

modification of the terms thereof or of any agreement between Multi-Channel and
Debtor or any such other party or Person, or make any election of rights
Multi-Channel 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 Guaranteed Obligations will be paid in
accordance with the terms of the Documents and/or any other document, instrument
or agreement creating or evidencing the Guaranteed 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
Multi-Channel 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 Guaranteed 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 Guaranteed Obligations or any
assignment or transfer of any thereof, (c) any furnishing of any additional
security to Multi-Channel or its assignees or any acceptance thereof or any
release of any security by Multi-Channel 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 Guaranteed 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 Guaranteed Obligations or (g) any other circumstance which
might otherwise constitute a defense available to, or a discharge of, the
undersigned, all except to the extent agreed to in writing by Multi-Channel. Any
amounts due from the undersigned to Multi-Channel shall bear interest until such
amounts are paid in full at the highest rate then applicable to the Guaranteed
Obligations. Guaranteed Obligations include post-petition interest whether or
not allowed or allowable.

                                       2
<PAGE>

         3. WAIVERS.

                  (a) This Guaranty is a guaranty of payment and not of
collection. Multi-Channel 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 Guaranteed Obligations or resort to any
collateral security held by it to secure any of the Guaranteed 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 Multi-Channel to do any of the
foregoing. Each of the Guarantors further consents and agrees that Multi-Channel
shall be under no obligation to marshal any assets in favor of Guarantors, or
against or in payment of any or all of the Guaranteed 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 Multi-Channel, 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 Guaranteed Obligations), statute of frauds,
bankruptcy, infancy, statute of limitations, accord and satisfaction, and usury.

                  (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 Guaranteed 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 Multi-Channel, the undersigned shall not be entitled to be subrogated to any
of the rights of Multi-Channel against Debtor or against any collateral or
guarantee or right of offset held by Multi-Channel for the payment of the
Guaranteed 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 Multi-Channel by Debtor on
account of the Guaranteed Obligations are paid in full and Multi-Channel'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 Guaranteed
Obligations shall not have been paid in full and Multi-Channel'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 Multi-Channel, 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
Multi-Channel in the exact form received by the undersigned (duly endorsed by
the undersigned to Multi-Channel, if required), to be applied against the
Guaranteed Obligations, whether matured or unmatured, in such order as
Multi-Channel 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 Guaranteed
Obligations of Debtor to Multi-Channel.

                                       3
<PAGE>

         4. SECURITY. All sums at any time to the credit of the undersigned
(upon payment if full of the Laurus Indebtedness) and any property of the
undersigned in Multi-Channel'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, Multi-Channel (each such entity, an "Affiliate") shall be deemed held by
Multi-Channel or such Affiliate, as the case may be, as security for any and all
of the undersigned's obligations to Multi-Channel and to any Affiliate of
Multi-Channel, 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 Guaranteed Obligations
are satisfied in full and the Documents have been irrevocably terminated), other
than as set forth in the Disclosure Schedule attached to and made part of the
Note Purchase Agreement, which Disclosure Schedule is incorporated herein by
this reference or described in the reports filed by Island Pacific, Inc. under
the Securities Exchange Act of 1934, that:

                  (a) CORPORATE STATUS. It is a corporation, partnership or
limited liability company, as the case may be, 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 Multi-Channel 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.

                                       4
<PAGE>

                  (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.

                  (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 Guaranteed Obligation incurred by the
Debtor to Multi-Channel.

         6. ACCELERATION.

                  (a) If any breach of any covenant or condition or other event
of default shall occur and be continuing under any agreement made by Debtor or
any of the undersigned to Multi-Channel, or either Debtor or any of the
undersigned should at any time become insolvent, or make a general assignment,
or if a proceeding in or under any Insolvency Law shall be filed or commenced
by, or in respect of, any of the undersigned, or if a notice of any lien, levy,
or assessment is filed of record with respect to any assets of any of the
undersigned by the United States of America or any department, agency, or
instrumentality thereof, or if any taxes or debts owing at any time or times
hereafter to any one of them becomes a lien or encumbrance upon any assets of
the undersigned in Multi-Channel's possession, or otherwise, any and all
Guaranteed Obligations shall for purposes hereof, at Multi-Channel's option, be
deemed due and payable without notice notwithstanding that any such Guaranteed
Obligation is not then due and payable by Debtor.

                  (b) Each of the undersigned will promptly notify Multi-Channel
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 and, if such an event occurs, Multi-Channel shall have the right to
accelerate such undersigned's obligations hereunder.

         7. PAYMENTS FROM GUARANTORS. Multi-Channel, in its sole and absolute
discretion, with or without notice to the undersigned, may apply on account of
the Guaranteed Obligations any payment from the undersigned or any other
guarantors, or amounts realized from any security for the Guaranteed
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
Guaranteed Obligations.

         8. COSTS. The undersigned shall timely reimburse Multi-Channel for all
costs, fees and expenses (including expenses for legal services of every kind)
reasonably incurred to the enforcement or protection of the rights of
Multi-Channel hereunder or under any of the Guaranteed 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 Guaranteed
Obligations have been paid in full and Multi-Channel's obligation to extend
credit pursuant to the Documents has been irrevocably terminated. If any of the
present or future Guaranteed Obligations are guarantied by Persons 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.

                                       5
<PAGE>

         10. RECAPTURE. Anything in this Guaranty to the contrary
notwithstanding, if Multi-Channel 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 Multi-Channel, the undersigned's obligations
to Multi-Channel shall be reinstated and this Guaranty shall remain in full
force and effect (or be reinstated) until payment shall have been made to
Multi-Channel, which payment shall be due on demand.

         11. BOOKS AND RECORDS. The books and records of Multi-Channel showing
the account between Multi-Channel 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 Multi-Channel 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 Multi-Channel 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 Multi-Channel or allowed it by law or other agreement shall be
cumulative and not exclusive of any other, and may be exercised by Multi-Channel
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 MULTI-CHANNEL
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT MULTI-CHANNEL 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 CALIFORNIA 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 CALIFORNIA, COUNTY OF SAN DIEGO, AND
OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA FOR
ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL PROCEEDING BY THE UNDERSIGNED

                                       6
<PAGE>

AGAINST MULTI-CHANNEL 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 CALIFORNIA, COUNTY OF SAN DIEGO OR THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA. 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 CALIFORNIA OR THE SOUTHERN DISTRICT OF CALIFORNIA 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.

         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
Multi-Channel.

         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. Multi-Channel may, from time to time, without notice to
the undersigned, sell, assign, transfer or otherwise dispose of all or any part
of the Guaranteed Obligations and/or rights under this Guaranty. Without
limiting the generality of the foregoing, Multi-Channel may assign, or grant
participations to, one or more banks, financial institutions or other entities
all or any part of any of the Guaranteed Obligations. In each such event,
Multi-Channel, its Affiliates and each and every immediate and successive
purchaser, assignee, transferee or holder of all or any part of the Guaranteed
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.
Multi-Channel shall have an unimpaired right to enforce this Guaranty for its
benefit with respect to that portion of the Guaranteed Obligations which
Multi-Channel has not disposed of, sold, assigned, or otherwise transferred.

         19. RELEASE. Nothing except cash payment in full of the Guaranteed
Obligations shall release any of the undersigned from liability under this
Guaranty.

                        [REMAINDER OF THIS PAGE IS BLANK.
                       SIGNATURE PAGE IMMEDIATELY FOLLOWS]

                                       7
<PAGE>

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

                                      PAGE DIGITAL INCORPORATED

                                      By: /s/ M. Tomczak
                                      -------------------------------------
                                      Name: Mike Tomczak

                                      Title: President

                                      Address:

                                      IP RETAIL TECHNOLOGIES INTERNATIONAL, INC.

                                      By: /s/ M. Tomczak
                                      -------------------------------------
                                      Name: Mike Tomczak

                                      Title: President

                                      Address:

                                      SABICA VENTURES, INC.

                                      By: /s/ M. Tomczak
                                      -------------------------------------
                                      Name: Mike Tomczak

                                      Title: President

                                      Address:

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