Document:

GUARANTEE
      AND SECURITY AGREEMENT

     

    among

     

    TWISTBOX
      ENTERTAINMENT, INC.,

     

    EACH
      OF THE SUBSIDIARIES PARTY HERETO,

     

    THE
      INVESTOR PARTY HERETO,

     

    and

    

    VALUEACT
      SMALLCAP MASTER FUND, L.P.,
      as
      Collateral Agent

     

      
        

      

       

    

    Dated
      as of July 30, 2007

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

    

      
        	 	 	
                Page

              	 
	
                ARTICLE
                  1. DEFINITIONS; GUARANTEE; GRANT OF SECURITY; CONTINUING PERFECTION
                  AND PRIORITY

              	 	 	
                1

              	 
	
                Section
                  1.1 General Definitions

              	 	 	
                1

              	 
	
                Section
                  1.2 Other Definitions; Interpretation

              	 	 	
                8

              	 
	
                Section
                  1.3 Guarantee

              	 	 	
                9

              	 
	
                Section
                  1.4 Grant of Security

              	 	 	
                13

              	 
	
                ARTICLE
                  2. SECURITY FOR OBLIGATIONS; NO ASSUMPTION OF LIABILITY

              	 	 	
                15

              	 
	
                Section
                  2.1 Security for Obligations

              	 	 	
                15

              	 
	
                Section
                  2.2 No Assumption of Liability

              	 	 	
                15

              	 
	
                ARTICLE
                  3. REPRESENTATIONS AND WARRANTIES AND COVENANTS

              	 	 	
                15

              	 
	
                Section
                  3.1 Generally

              	 	 	
                15

              	 
	
                Section
                  3.2 Equipment and Inventory

              	 	 	
                19

              	 
	
                Section
                  3.3 Receivables

              	 	 	
                19

              	 
	
                Section
                  3.4 Investment Property

              	 	 	
                21

              	 
	
                Section
                  3.5 Letter of Credit Rights

              	 	 	
                24

              	 
	
                Section
                  3.6 Intellectual Property Collateral

              	 	 	
                24

              	 
	
                Section
                  3.7 Commercial Tort Claims

              	 	 	
                25

              	 
	
                Section
                  3.8 Deposit Accounts; Control Accounts

              	 	 	
                26

              	 
	
                ARTICLE
                  4. FURTHER ASSURANCES

              	 	 	
                27

              	 
	
                ARTICLE
                  5. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT

              	 	 	
                27

              	 
	
                ARTICLE
                  6. REMEDIES UPON DEFAULT

              	 	 	
                28

              	 
	
                Section
                  6.1 Remedies Generally

              	 	 	
                28

              	 
	
                Section
                  6.2 Application of Proceeds of Sale

              	 	 	
                30

              	 
	
                Section
                  6.3 Investment Property

              	 	 	
                30

              	 
	
                Section
                  6.4 Grant of License to Use Intellectual Property

              	 	 	
                31

              	 
	
                ARTICLE
                  7. REIMBURSEMENT OF COLLATERAL AGENT

              	 	 	
                31

              	 
	
                ARTICLE
                  8. WAIVERS; AMENDMENTS

              	 	 	
                32

              	 
	
                ARTICLE
                  9. SECURITY INTEREST ABSOLUTE

              	 	 	
                32

              	 
	
                ARTICLE
                  10. TERMINATION; RELEASE

              	 	 	
                33

              	 
	
                ARTICLE
                  11. ADDITIONAL SUBSIDIARY GUARANTORS AND GRANTORS

              	 	 	
                33

              	 
	
                ARTICLE
                  12. COLLATERAL AGENT

              	 	 	
                34

              	 
	
                ARTICLE
                  13. NOTICES

              	 	 	
                35

              	 
	
                ARTICLE
                  14. BINDING EFFECT; SEVERAL AGREEMENT; ASSIGNMENTS

              	 	 	
                36

              	 
	
                ARTICLE
                  15. SURVIVAL OF AGREEMENT; SEVERABILITY

              	 	 	
                37

              	 

      

    

    
      
        	
                ARTICLE
                  16. GOVERNING LAW

              	 	 	
                37

              	 
	
                ARTICLE
                  17. COUNTERPARTS

              	 	 	
                37

              	 
	
                ARTICLE
                  18. HEADINGS

              	 	 	
                38

              	 
	
                ARTICLE
                  19. JURISDICTION; VENUE; CONSENT TO SERVICE OF PROCESS

              	 	 	
                38

              	 
	
                ARTICLE
                  20. WAIVER OF JURY TRIAL

              	 	 	
                39

              	 

      

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    SCHEDULES:

     

    
      	
              Schedule
                I

            	 	
              List
                of Subsidiary Guarantors and Addresses for Notices List
                of Foreign Subsidiaries which are not Subsidiary Guarantors as of
                July 30,
                2007,
                and Addresses

            
	 	 	 
	
              Schedule
                1.4(a)

            	 	
              Twistbox
                Games Ltd. & Co KG Collateral

            
	 	 	 
	
              Schedule
                3.1(a)(i)

            	 	
              List
                of Chief Executive Offices, Jurisdictions of Organization, Federal
                Employer
                Identification Numbers and Company Organizational
                Numbers

            
	 	 	 
	
              Schedule
                3.1(a)(ii)

            	 	
              List
                of Legal and Other Names

            
	 	 	 
	
              Schedule
                3.1(a)(v)(A)

            	 	
              List
                of Filing Offices

            
	 	 	 
	
              Schedule
                3.1(a)(v)(B)

            	 	
              Excluded
                Trademarks

            
	 	 	 
	
              Schedule
                3.2

            	 	
              List
                of Locations of Equipment and Inventory

            
	 	 	 
	
              Schedule
                3.4

            	 	
              List
                of Pledged Collateral, Investment Property and Securities
                Accounts

            
	 	 	 
	
              Schedule
                3.5

            	 	
              List
                of Letters of Credit

            
	 	 	
               

            
	
              Schedule
                3.6

            	 	
              List
                of Intellectual Property

            
	 	 	
               

            
	
              Schedule
                3.7

            	 	
              List
                of Commercial Tort Claims

            
	 	 	 
	
              Schedule
                3.8

            	 	
              List
                of Deposit Accounts

            

    

     

    EXHIBITS:

     

    
      	
              Exhibit
                A

            	
              Form
                of Supplement

            
	 	 
	
              Exhibit
                B

            	
              Form
                of Control Agreement

            
	 	 
	
              Exhibit
                C

            	
              Form
                of Securities Control Account
                Letter

            

    

    

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    GUARANTEE
      AND SECURITY AGREEMENT, dated as of July 30, 2007 (this “Guarantee
      and Security Agreement”), among
      Twistbox Entertainment, Inc., a Delaware corporation (the
      “Company”),
      each
      of
      the subsidiaries of the Company identified on Schedule I as being a subsidiary
      guarantor (each such subsidiary, individually a “Subsidiary
      Guarantor” and,
      collectively, the “Subsidiary
      Guarantors”; the Subsidiary Guarantors and the Company are referred to
      collectively herein as
      the
“Grantors”),
      the
      Investors from time to time party hereto (including their successors and
      permitted assigns,
      the “Investor”)
      and
      ValueAct SmallCap Master Fund, L.P.,
      as
      collateral agent for the benefit of the
      Secured Parties (including its successors and permitted assigns and in such
      capacity, the “CollateralAgent”).

    

    Reference
      is made to the Securities Purchase Agreement, dated as of July 30, 2007,
among
      the
      Company and the Investors from time to time party thereto (as amended,
      supplemented or otherwise
      modified from time to time, the “Securities
      Purchase Agreement”).

    

    The
      Investor has agreed to purchase Senior Secured Notes in the aggregate principal
      amount
      of
      $16,500,000 (as amended, supplemented or otherwise modified, the “Senior
      Secured Notes”) from
      the
      Company pursuant to, and upon the terms and subject to the conditions specified
      in, the Securities
      Purchase Agreement. Each of the Subsidiary Guarantors has agreed to guarantee,
      among other things,
      all the obligations of the Company and each other Subsidiary Guarantor under
      the
      Secured Transaction
      Documents. The obligations of the Investor to purchase Senior Secured Notes
      are
conditioned
      upon, among other things, the execution and delivery by the Grantors of an
      agreement in the form
      hereof to guarantee and secure the Obligations.

    

    Accordingly,
      the Grantors and the Collateral Agent, on behalf of itself and each other
Secured
      Party (and each of their respective successors or permitted assigns), hereby
      agree as follows:

    

    ARTICLE
      1.

    

    DEFINITIONS;
      GUARANTEE; GRANT OF SECURITY;

    CONTINUING
      PERFECTION AND PRIORITY

    

    Section
      1.1 General
      Definitions

    

    As
      used
      in this Guarantee and Security Agreement, the following terms shall have the
      meanings
      specified below:

    

    “Account
      Debtor” means
      each Person who is obligated in respect of any Receivable or any Supporting
      Obligation or Collateral Support related thereto.

    

    “Accounts”
      means
      all
“accounts” as defined in Article 9 of the UCC.

    

    “Additional
      Subsidiary Guarantor and Grantor” has
      the
      meaning assigned to such term
      in
      Article 11.

    

    “Applicable
      Date” means
      (i)
      in the case of any Grantor (other than an Additional Subsidiary
      Guarantor and Grantor), the date hereof, and (ii) in the case of any Additional
      Subsidiary Guarantor
      and Grantor, the date of the Supplement executed and delivered by such
      Additional Subsidiary Guarantor
      and Grantor.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “Approved
      Securities Intermediary” means
      a
      Securities Intermediary or commodity intermediary
      selected or approved by the Collateral Agent and with respect to which a Grantor
      has delivered
      to the Collateral Agent an executed Securities Control Account
      Letter.

    

    “Authorization”
      means,
      collectively, any license, approval, permit or other authorization issued by
      Governmental Authority.

    

    “Bankruptcy
      Law” means
      Title 11, U.S. Code, or any similar foreign, federal or state law
      for
      the relief of debtors.

    

    “Business
      Day” means
      any
      day other than Saturday, Sunday or other day on which commercial banks in The
      City of New York are authorized or required by law to remain
      closed.

    

    “Cash
      Collateral Account” means
      any
      Deposit Account or Securities Account established
      by the Collateral Agent in which cash may from time to time be on deposit or
      held therein pursuant
      to the Secured Transaction Documents.

    

    “Chattel
      Paper” means
      all
“chattel paper” as defined in Article 9 of the UCC.

    

    “Claim
      Proceeds” means,
      with respect to any Commercial Tort Claim or any Collateral Support
      or Supporting Obligation relating thereto, all Proceeds thereof, including
      all
      insurance proceeds and
      other
      amounts and recoveries resulting or arising from the settlement or other
      resolution thereof, in each case regardless of whether characterized as a
“commercial
      tort claim” under
      Article 9 of the UCC or “proceeds” under the UCC.

    

    “Collateral”
      has
      the
      meaning assigned to such term in Section 1.4(a).

    

    “Collateral
      Records” means
      all
      books, instruments, certificates, Records, ledger cards, files, correspondence,
      customer lists, blueprints, technical specifications, manuals and other
      documents, and
      all
      computer software, computer printouts, tapes, disks and related data processing
      software and similar
      items, in each case that at any time represent, cover or otherwise evidence
      any
      of the Collateral.

    

    “Collateral
      Support” means
      all
      property (real or personal) assigned, hypothecated or otherwise
      securing any of the Collateral, and shall include any security agreement or
      other agreement granting
      a lien or security interest in such real or personal property.

    

    “Commercial
      Tort Claims” means
      (i)
      all “commercial tort claims” as defined in Article
      9
      of the UCC and (ii) all Claim Proceeds with respect to any of the foregoing;
      including all claims described
      on Schedule
      3.7.

    

    “Company”
      has
      the
      meaning assigned to such term in the preliminary statement of this Guarantee
      and Security Agreement.

    

    “Control
      Account” means
      a
      Deposit Account maintained by any Grantor with a Control Account
      Bank which account is the subject of an effective Control Agreement, and
      includes all monies on deposit
      therein.

    

    “Control
      Account Bank” means
      a
      financial institution selected or approved by the Collateral Agent and with
      respect to which a Grantor has entered into a Control Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

    

    “Control
      Agreement” means
      a
      Control Agreement, substantially in the form of Exhibit
      B
      (with such changes thereto as may be agreed to by the Collateral Agent),
      executed by the relevant Grantor and the Collateral Agent and acknowledged
      and
      agreed to by the relevant Control

    Account
      Bank.

    

    “Copyright
      License” means
      any
      written agreement, now or hereafter in effect, granting any right to any third
      party under any Copyright now or hereafter owned or held by any Grantor or
      which
any
      Grantor otherwise has the right to license, or granting any right to any Grantor
      under any Copyright now
      or
      hereafter owned by any third party, and all rights of any Grantor under any
      such
      agreement, including each agreement described on Schedule
      3.6.

    

    “Copyrights”
      means
      all
      of the following: (i) all copyright rights in any work subject to the
      copyright laws of the United States or any other country, whether as author,
      assignee, transferee or otherwise, and (ii) all registrations and applications
      for registration of any such copyright in the United States
      or
      any other country, including registrations, recordings, supplemental
      registrations and pending applications
      for registration in the United States Copyright Office or any similar offices
      in
      the United States
      or
      any other country, including those described on Schedule
      3.6.

    

    “Deposit
      Accounts” means
      all
“deposit accounts” as defined in Article 9 of the UCC, including
      all such accounts described on Schedule
      3.8.

    

    “Documents”
      means
      all
“documents” as defined in Article 9 of the UCC.

    

    “Equipment”
      means
      (i)
      all “equipment” as defined in Article 9 of the UCC, (ii) all machinery,
      manufacturing equipment, data processing equipment, computers, office equipment,
      furnishings, furniture, appliances, fixtures and tools, in each case, regardless
      of whether characterized as “equipment”
      under the UCC, and (iii) all accessions or additions to any of the foregoing,
      all parts thereof, whether
      or not at any time of determination incorporated or installed therein or
      attached thereto, and all replacements therefor, wherever located, now or
      hereafter existing.

    

    “Equity
      Interest” means
      (i)
      shares of corporate stock, partnership interests, membership interests, and
      any
      other interest that confers on a Person the right to receive a share of the
      profits and losses of, or distribution of assets of, the issuing Person, and
      (ii) all warrants, options or other rights to acquire any Equity Interest set
      forth in clause (i) of this defined term.

    

    “Equity
      Related Documents” means
      the
      Securities Purchase Agreement, any Convertible Note or Warrant issued pursuant
      to the Securities Purchase Agreement.

    

    “Event
      of Default” has
      the
      meaning assigned to such term in the Senior Secured Notes. 

     

    “Excepted
      Deposit Accounts” has
      the
      meaning assigned to such term in Section 3.8(b).

    

    “Foreign
      Subsidiary” means
      any
      direct subsidiary of any Grantor organized under the laws of any jurisdiction
      outside the United States of America other than any Subsidiary Guarantor and
      as
designated
      as such on Schedule
      I
      hereto.

    

    “Foreign
      Subsidiary Voting Stock” means
      the
      voting capital stock of any Foreign Subsidiary.

    

    “Financial
      Assets” means
      all
“financial assets” as defined in Article 8 of the UCC. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “General
      Intangibles” means
      (i)
      all “general intangibles” as defined in Article 9 of the UCC
      and
      (ii) all chooses in action and causes of action, all indemnification claims,
      all
      goodwill, all tax refunds,
      all licenses, permits, concessions, franchises and authorizations, all
      Intellectual Property, all Payment
      Intangibles and all Software, in each case, regardless of whether characterized
      as a “general intangible”
      under the UCC.

    

    “Goods”
      means
      (i)
      all “goods” as defined in Article 9 of the UCC and (ii) all Equipment
and
      Inventory and any computer program embedded in goods and any supporting
      information provided in connection
      with such program, to the extent (a) such program is associated with such goods
      in such a manner
      that it is customarily considered part of such goods or (b) by becoming the
      owner of such goods, a Person
      acquires a right to use the program in connection with such goods, in each
      case,
      regardless of whether characterized as a “good” under the UCC.

    

    “Governmental
      Authority” means
      any
      nation or government, any state, province, city, municipal
      entity or other political subdivision thereof, and any governmental, executive,
      legislative, judicial,
      administrative or regulatory agency, department, authority, instrumentality,
      commission, board, bureau
      or
      similar body, whether federal, state, provincial, territorial, local or
      foreign.

    

    “Grantor”
      and
      “Grantors”
      have
      the
      meanings assigned to such terms in the preliminary statement
      of this Guarantee and Security Agreement.

    

    “Guaranteed
      Obligations” has
      the
      meaning assigned to such term in Section 1.3(a)(i). 

     

    “Instruments”
      means
      all
“instruments” as defined in Article 9 of the UCC.

    

    “Insurance”
      means
      all
      insurance policies covering any or all of the Collateral (regardless
of
      whether the Collateral Agent or any other Secured Party is an additional named
      insured or the loss payee
      thereof) and all business interruption insurance policies.

    

    “Intellectual
      Property” means
      all
      intellectual and similar property owned by any Grantor
      of every kind and nature, including inventions, designs, Patents, Copyrights,
      Trademarks, Licenses,
      domain names, Trade Secrets, confidential or proprietary technical and business
      information, know
      how,
      show how or other data or information, software and databases and all
      embodiments or fixations
      thereof and related documentation, registrations and franchises, and all
      additions, improvements and accessions to, and books and records describing
      or
      used in connection with, any of the foregoing.

    

    “Inventory”
      means
      (i)
      all “inventory” as defined in Article 9 of the UCC and (ii) all goods held for
      sale or lease or to be furnished under contracts of service or so leased or
      furnished, all raw materials,
      work in process, finished goods and materials used or consumed in the
      manufacture, packing, shipping,
      advertising, selling, leasing, furnishing or production of such inventory or
      otherwise used or consumed
      in any Grantor's business, all goods which are returned to or repossessed by
      or
      on behalf of any
      Grantor, and all computer programs embedded in any goods, and all accessions
      thereto and products thereof,
      in each case, regardless of whether characterized as “inventory” under the
      UCC.

    

    “Investor”
      has
      the
      meaning assigned to such term in the preliminary statements of this Guarantee
      and Security Agreement.

    

    “Investment
      Property” means,
      collectively, all “investment
      property” as
      defined in Article
      9
      of the UCC including all Pledged Collateral.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Letter
      of Credit Rights” means
      all
“letter-of-credit rights” as defined in Article 9 of the UCC
      and
      all rights, title and interests of each Grantor to any letter of credit, in
      each
      case regardless of whether
      characterized as a “letter-of-credit right” under the UCC.

    

    “License”
      means
      any
      Copyright License, Patent License, Trademark License, Trade Secret
      License or other license or sublicense to which any Grantor is a
      party.

    

    “Lien”
      means
      any lien, mortgage, charge, claim, security interest, encumbrance, or right
      of
      first
      refusal.

    

    “Net
      Receivables Balance” means
      all
      amounts recorded on the Company's balance sheet as
      Receivables or accrued Receivables net of allowance for doubtful accounts
      consistent with past practice.

    

    “New
      Deposit Account” has
      the
      meaning assigned to such term in Section 3.8.

    

    “Obligations”
      means
      (i)
      the due and punctual payment of (a) principal of and premium, if
      any,
      and interest (including interest accruing during the pendency of any bankruptcy,
      insolvency, receivership
      or other similar proceeding, regardless of whether allowed or allowable in
      such
      proceeding) on
      the
      Senior Secured Notes, when and as due, whether at maturity or by acceleration
      or
      otherwise, and (b)
      all
      other monetary obligations, including fees, commissions, costs, expenses and
      indemnities, whether primary, secondary, direct, contingent, fixed or otherwise
      (including monetary obligations incurred during the
      pendency of any bankruptcy, insolvency, receivership or other similar
      proceeding, regardless of whether
      allowed or allowable in such proceeding), of the Grantors to the Secured Parties
      when and as due, or
      that
      are otherwise payable to any Investor, in each case under the Secured
      Transaction Documents when
      and
      as due, (ii) the due and punctual performance of all covenants, agreements,
      obligations and liabilities of the Grantors or any other party (other than
      an
      Investor) under or pursuant to the Secured Transaction
      Documents, and (iii) with respect to the Subsidiary Guarantor, the Guaranteed
      Obligations.

    

    “Patent
      License” means
      any
      written agreement, now or hereafter in effect, granting to any
      third
      party any right to make, use or sell any invention on which a Patent, now or
      hereafter owned or held
      by
      or on behalf of any Grantor or which any Grantor otherwise has the right to
      license, is in existence, or granting to any Grantor any right to make, use
      or
      sell any invention on which a Patent, now or
      hereafter owned by any third party, is in existence, and all rights of any
      Grantor under any such agreement, including each agreement described on
Schedule
      3.6.

    

    “Patents”
      means
      all
      of the following: (i) all letters patent of the United States or any
other
      country, all registrations and recordings thereof and all applications for
      letters patent of the United States
      or
      any other country, including registrations, recordings and pending applications
      in the United States
      Patent and Trademark Office or any similar offices in the United States or
      any
      other country, including
      those described on Schedule
      3.6, and
      (ii)
      all reissues, continuations, divisions, continuations in part,
      renewals or extensions thereof, and the inventions disclosed or claimed therein,
      including the right to make,
      use
      and/or sell the inventions disclosed or claimed therein.

    

    “Payment
      Intangibles” means
      all
“payment intangibles” as defined in Article 9 of the UCC.

    

    “Person”
      means
      any
      individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, or joint stock
      company.

    

    “Pledged
      Collateral”
      means, collectively, Pledged Debt and Pledged Equity Interests. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Pledged
      Debt” means
      all
      indebtedness for borrowed money owed or owing to any Grantor, including all
      indebtedness described on Schedule
      3.4,
      all
      Instruments other than checks received in the ordinary course of business,
      Chattel Paper or other documents, if any, representing or evidencing
such
      debt, and all interest, cash, instruments and other property or proceeds from
      time to time received, receivable
      or otherwise distributed in respect of or in exchange for any or all of such
      debt.

    

    “Pledged
      Equity Interests” means
      all
      Equity Interests owned or held by or on behalf of any
      Grantor, including all such Equity Interests described on Schedule
      3.4, and
      all
      certificates, instruments
      and other documents, if any, representing or evidencing such Equity Interests
      and all interests of
      such
      Grantor on the books and records of the issuers of such Equity Interests, all
      of
      such Grantor's right,
      title and interest in, to and under any partnership, limited liability company,
      shareholder or similar agreements to which it is a party, and all dividends,
      distributions, cash, warrants, rights, options, instruments,
      securities and other property or proceeds from time to time received, receivable
      or otherwise distributed
      in respect of or in exchange for any or all of such Equity Interests;
provided, however, that
      in
no
      event
      shall more than 65% of the total outstanding Foreign Subsidiary Voting Stock
      of
      any Foreign Subsidiary
      be pledged (or deemed to be pledged) hereunder.

    

    “Proceeds”
      means
      (i)
      all “proceeds” as defined in Article 9 of the UCC, (ii) payments or distributions
      made with respect to any Investment Property, (iii) any payment received from
      any insurer or
      other
      Person or entity as a result of the destruction, loss, theft, damage or other
      involuntary conversion of
      whatever nature of any asset or property that constitutes the Collateral, and
      (iv) whatever is receivable or
      received when any of the Collateral or proceeds are sold, exchanged, collected
      or otherwise disposed of, whether
      such disposition is voluntary or involuntary, including any claim of any Grantor
      against any third party
      for
      (and the right to sue and recover for and the rights to damages or profits
      due
      or accrued arising out
      of or
      in connection with) (a) past, present or future infringement of any Patent
      now
      or hereafter owned or
      held
      by or on behalf of any Grantor, or licensed under a Patent License, (b) past,
      present or future infringement or dilution of any Trademark now or hereafter
      owned or held by or on behalf of any Grantor, or
      licensed under a Trademark License, or injury to the goodwill associated with
      or
      symbolized by any Trademark
      now or hereafter owned or held by or on behalf of any Grantor, (c) past, present
      or future infringement
      of any Copyright now or hereafter owned or held by or on behalf of any Grantor,
      or licensed under a Copyright License, (d) past, present or future infringement
      of any Trade Secret now or hereafter owned or held by or on behalf of any
      Grantor, or licensed under a Trade Secret License, and (e) past, present
      or future breach of any License, in each case, regardless of whether
      characterized as “proceeds” under
      the
      UCC.

    

    “QRF
      Deposit Account” has
      the
      meaning assigned to such term in Section 1.4(c).
      

     

    “QRF
      Lender” has
      the
      meaning assigned to such term in Section 1.4(c).

    

    “Qualified
      Receivables Facility” means a receivables facility not to exceed the lesser of
(i)
      $5,000,000, or (ii) 85% of the Net Receivables Balance at any point in
      time.

    

    “Receivables”
      means
      all
      rights to payment, whether or not earned by performance, for goods
      or
      other property sold, leased, licensed, assigned or otherwise disposed of, or
      services rendered or to
      be
      rendered, including all such rights constituting or evidenced by any Account,
      Chattel Paper, Instrument
      or other document, General Intangible or Investment Property, together with
      all
      of the applicable
      Grantor's rights, if any, in any goods or other property giving rise to such
      right to payment, and all Collateral Support and Supporting Obligations related
      thereto and all Receivables Records.

    

    “Receivables
      Records” means
      (i)
      all originals of all documents, instruments or other writings or electronic
      records or other Records evidencing any Receivable, (ii) all books,
      correspondence, credit
      or
      other files, Records, ledger sheets or cards, invoices, and other papers
      relating to such Receivable,
      including all tapes, cards, computer tapes, computer discs, computer runs and
      record keeping systems,
      whether in the possession or under the control of the applicable Grantor or
      any
      computer bureau or
      agent
      from time to time acting for such Grantor or otherwise, (iii) all evidences
      of
      the filing of financing
      statements relating to such Receivable and the registration of other instruments
      in connection therewith,
      and amendments, supplements or other modifications thereto, notices to other
      creditors or secured
      parties, and certificates, acknowledgments, or other writings, including lien
      search reports, from filing or other registration officers and (iv) all credit
      information, reports and memoranda relating to such Receivable.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    “Record”
      means
      a
“record” as defined in Article 9 of the UCC.

    

    “Related
      Party” means,
      with respect to any specified Person, such Person's affiliates and the
      respective directors, officers, employees, agents and advisors of such Person
      and such Person's affiliates.

    

    “Secured
      Parties” means
      (i)
      the Collateral Agent, (ii) the Investor under the Senior Secured
      Notes, (iii) the beneficiaries of each indemnification obligation undertaken
      by
      or on behalf of any Grantor
      under any Secured Transaction Document, and (iv) the successors and permitted
      assigns of each of
      the
      foregoing.

    

    “Secured
      Transaction Documents” means
      the
      Senior Secured Notes, this Guarantee and Security
      Agreement, any Control Agreement, any Securities Control Account Letter, and
      all
      other instruments,
      documents, certificates and agreements related thereto (exclusive of the Equity
      Related Documents).

    

    “Securities
      Accounts” means
      all
“securities accounts” as defined in Article 8 of the UCC, including
      all such accounts described on Schedule
      3.4.

    

    “Securities
      Control Account” means
      a
      Securities Account or commodity account maintained by any Grantor with an
      Approved Securities Intermediary which account is the subject of an effective
      Control Account Letter, and includes all Financial Assets held therein and
      all
      certificates and instruments, if any, representing or evidencing the Financial
      Assets held therein.

    

    “Securities
      Control Account Letter” means
      a
      Securities Control Account Letter, substantially
      in the form of Exhibit C (with such changes thereto as may be agreed to by
      the
      Collateral Agent), executed by any Grantor and the Collateral Agent and
      acknowledged and agreed to by the relevant
      Approved Securities Intermediary.

    

    “Securities
      Intermediary” has
      the
      meaning specified in Article 8 of the UCC.

    

    “Securities
      Purchase Agreement” has
      the
      meaning assigned to such term in the preliminary
      statement of this Guarantee and Security Agreement.

    

    “Security
      Interest” has
      the
      meaning assigned to such term in Section 1.4(a).

    

    “Senior
      Secured Notes” has
      the
      meaning assigned to such term in the preliminary statement
      of this Guarantee and Security Agreement.

    

    “Software”
      means
      all
“software” as defined in Article 9 of the UCC. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    “Subordinated
      Obligations” has
      the
      meaning assigned to such term in Section 1.3(e). 

     

    “Subsidiary
      Guarantee” has
      the
      meaning assigned to such term in Section 1.3(a)(i).

    

    “Subsidiary
      Guarantor” has
      the
      meaning assigned to such term in the preliminary statement of this Guarantee
      and
      Security Agreement.

    

    “Supplement”
      means
      a
      supplement hereto, substantially in the form of Exhibit A.

    

    “Supporting
      Obligation” means
      (i)
      all “supporting obligations” as defined in Article 9 of
      the
      UCC and (ii) all Guaranties and other secondary obligations supporting any
      of
      the Collateral, in each
      case
      regardless of whether characterized as a “supporting obligation” under the
      UCC.

    

    “Trade
      Secret Licenses” means
      any
      written agreement, now or hereafter in effect, granting
      to any third party any right to use any Trade Secrets now or hereafter owned
      or
      held by or on behalf
      of
      any Grantor or which such Grantor otherwise has the right to license, or
      granting to any Grantor any right to use any Trade Secrets now or hereafter
      owned by any third party, and all rights of any Grantor
      under any such agreement, including each agreement described on Schedule
      3.6.

    

    “Trade
      Secrets” means
      all
      trade secrets and all other confidential or proprietary information
      and know-how now or hereafter owned or used in, or contemplated at any time
      for
      use in, the business of any Grantor (all of the foregoing being collectively
      called a “Trade Secret”), whether or not such
      Trade Secret has been reduced to a writing or other tangible form, including
      all
      documents and things
      embodying, incorporating or referring in any way to such Trade Secret, the
      right
      to sue for any past, present and future infringement of any Trade Secret, and
      all proceeds of the foregoing, including licenses, royalties,
      income, payments, claims, damages and proceeds of suit.

    

    “Trademark
      License” means
      any
      written agreement, now or hereafter in effect, granting to any third party
      any
      right to use any Trademark now or hereafter owned or held by any Grantor or
      which
      such Grantor otherwise has the right to license, or granting to any Grantor
      any
      right to use any Trademark
      now or hereafter owned by any third party, and all rights of any Grantor under
      any such agreement,
      including each agreement described on Schedule
      3.6.

    

    “Trademarks”
      means
      all
      of the following: (i) all trademarks, service marks, trade names, corporate
      names, company names, business names, fictitious business names, trade styles,
      trade dress, logos, other source or business identifiers, designs and general
      intangibles of like nature, now existing or hereafter adopted or acquired,
      all
      registrations and recordings thereof, and all registration and recording
      applications filed in connection therewith, including registrations and
      registration applications in the United
      States Patent and Trademark Office or any similar offices in the United States
      or any other country, and
      all
      extensions or renewals thereof, including those described on Schedule
      3.6, (ii)
      all
      goodwill associated
      therewith or symbolized by any of the foregoing and (iii) all other assets,
      rights and interests that
      uniquely reflect or embody such goodwill.

    

    “QRF
      Lender” has
      the
      meaning assigned to such term in Section 1.4(c).

    

    “UCC”
      means the Uniform Commercial Code as in effect from time to time in the State
      of
      New
      York or, when the context implies, the Uniform Commercial Code as in effect
      from
      time to time in
      any
      other applicable jurisdiction.

    

    Section
      1.2 Other
      Definitions; Interpretation

     

    (a)
      Other
      Definitions. Capitalized
      terms used herein and not otherwise defined
      herein, and the term “subsidiary” shall have the meanings assigned to such terms
      in the Securities Purchase
      Agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    (b)
      Rules
      of Interpretation. The
      definitions of terms herein shall apply equally to
      the
      singular and plural forms of the terms defined. Whenever the context may
      require, any pronoun shall include the corresponding masculine, feminine and
      neuter forms. The words “include”, “includes” and “including” shall be deemed to
      be followed by the phrase “without limitation”. The word “will” shall be
      construed to have the same meaning and effect as the word “shall”. Unless the
      context requires otherwise,
      (i) any definition of or reference to any agreement, instrument or other
      document herein shall be
      construed as referring to such agreement, instrument or other document as from
      time to time amended, supplemented
      or otherwise modified, (ii) any definition of or reference to any law shall
      be
      construed as referring
      to such law as from time to time amended and any successor thereto and the
      rules
      and regulations
      promulgated from time to time thereunder, (iii) any reference herein to any
      Person shall be construed
      to include such Person's successors and permitted assigns, (iv) the words
“herein”, “hereof”
and
      “hereunder”, and words of similar import, shall be construed to refer to this
      Guarantee and Security Agreement
      in its entirety and not to any particular provision hereof, (v) all references
      herein to Articles, Sections,
      Exhibits and Schedules shall be construed to refer to Articles and Sections
      of,
      and Exhibits and Schedules
      to and any Supplement thereto, this Guarantee and Security Agreement, and (vi)
      the words “asset”
      and “property” shall be construed to have the same meaning and effect and to
      refer to any and all tangible
      and intangible assets and properties, including cash, securities, accounts
      and
      contract rights. All references herein to provisions of the UCC shall include
      all successor provisions under any subsequent version
      or amendment to any Article of the UCC.

    

    Section
      1.3 Guarantee

    

    (a) Subsidiary
      Guarantee; Limitation of Liability.

    

    (i)
      Each
      Subsidiary Guarantor jointly and severally, hereby absolutely,
      unconditionally and irrevocably guarantees, as a primary obligor and not merely
      as surety, to the Collateral Agent for the ratable benefit of the Secured
      Parties the punctual payment when due (but subject to the expiration of any
      grace period granted by the Secured Parties in their sole discretion or the
      giving of any required notice provided for in any secured Transaction
Document),
      whether at scheduled maturity or on any date of a required prepayment or by
      acceleration, demand or otherwise, of the Obligations of the Company and each
      other Grantor now or hereafter existing under or in respect of the Secured
      Transaction Documents (including, without limitation, any extensions,
      modifications, substitutions, amendments or renewals of any or all of the
      foregoing Obligations), whether direct or indirect, absolute or contingent,
      and
whether
      for principal, interest, premiums, fees, indemnities, contract causes of action,
      costs, expenses
      or otherwise (such Obligations being the “Guaranteed
      Obligations”), and
      agrees to pay any and all reasonable expenses (including, without limitation,
      reasonable fees and out-of-pocket
      expenses of counsel) incurred by the Collateral Agent or any other Investor
      in
      enforcing any
      rights under this Subsidiary Guarantee (the “Subsidiary
      Guarantee”) or
      any
      other Secured Transaction
      Document. Without limiting the generality of the foregoing, each Subsidiary
      Guarantor's liability shall extend to all amounts that constitute part of the
      Guaranteed Obligations and
      would
      be owed by any other Grantor to the Collateral Agent or any Investor under
      or in
respect
      of the Secured Transaction Documents but for the fact that they are
      unenforceable or not allowable
      due to the existence of a bankruptcy, reorganization or similar proceeding
      involving such
      other Grantor.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (ii)
      Each
      Subsidiary Guarantor, and by its acceptance of this Subsidiary
      Guarantee, the Collateral Agent and each other Investor, hereby confirms that
      it
      is the intention
      of all such Persons that this Subsidiary Guarantee and the Obligations of each
      Subsidiary
      Guarantor hereunder not constitute a fraudulent transfer or conveyance for
      purposes of Bankruptcy
      Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer
      Act
or
      any
      similar foreign, federal or state law to the extent applicable to this
      Subsidiary Guarantee and
      the
      Obligations of each Subsidiary Guarantor hereunder. To effectuate the foregoing
      intention,
      the Collateral Agent, each Investor and the Subsidiary Guarantors hereby
      irrevocably agree
      that the Guaranteed Obligations of each Subsidiary Guarantor under this
      Subsidiary Guarantee
      at any time shall be limited to the maximum amount as will result in the
      Guaranteed Obligations
      of such Subsidiary Guarantor under this Subsidiary Guarantee not constituting
      a
fraudulent
      transfer or conveyance.

    

    (iii)
      Each Subsidiary Guarantor hereby unconditionally and irrevocably
      agrees that in the event any payment shall be required to be made to the
      Collateral Agent
      or
      any Investor under this Subsidiary Guarantee, such Subsidiary Guarantor will
      contribute, to
      the
      maximum extent permitted by law, such amounts to each other Subsidiary Guarantor
      so as to
      maximize the aggregate amount then required to be paid to the Collateral Agent
      and Investor under
      or
      in respect of the Secured Transaction Documents.

    

    (b)
      Subsidiary
      Guarantee Absolute. Each
      Subsidiary Guarantor guarantees that
      the
      Guaranteed Obligations will be paid strictly in accordance with the terms of
      the
      Secured Transaction Documents, regardless of any law, regulation or order now
      or
      hereafter in effect in any jurisdiction
      affecting any of such terms or the rights of the Collateral Agent or any
      Investor with respect thereto.
      The Obligations of each Subsidiary Guarantor under or in respect of this
      Subsidiary Guarantee are
      independent of the Guaranteed Obligations or any other Obligations of any other
      Grantor under or in respect of the Secured Transaction Documents, and a separate
      action or actions may be brought and prosecuted
      against each Subsidiary Guarantor to enforce this Subsidiary Guarantee,
      irrespective of whether
      any action is brought against the Company or any other Grantor or whether the
      Company or any other
      Grantor is joined in any such action or actions. The liability of each
      Subsidiary Guarantor under this Subsidiary Guarantee shall be irrevocable,
      absolute and unconditional irrespective of, and each Subsidiary Guarantor hereby
      irrevocably waives any defenses it may now have or hereafter acquire in any
      way
      relating to, any or all of the following:

    

    (i)
      any
      lack of validity or enforceability of any Secured Transaction
      Document or any agreement or instrument relating thereto;

    

    (ii)
      any
      change in the time, manner or place of payment of, or in
      any
      other term of, all or any of the Guaranteed Obligations or any other Obligations
      of any other
      Grantor under or in respect of the Secured Transaction Documents, or any other
      amendment or
      waiver
      of or any consent to departure from any Secured Transaction Document, including,
      without
      limitation, any increase in the Guaranteed Obligations resulting from the
      extension of additional
      credit to any Grantor or any of its Subsidiaries or otherwise;

    

    (iii)
      any
      taking, release or amendment or waiver of, or consent to
      departure from, any other guarantee, for all or any of the Guaranteed
      Obligations it being understood
      that any such amendment, waiver or consent shall be applicable to the Guaranteed
      Obligations
      of the Subsidiary Guarantors;

    

    (iv)
      any
      change, restructuring or termination of the corporate structure
      or existence of any Grantor or any of its Subsidiaries;

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (v)
      any
      failure of any Investor to disclose to any Grantor any information relating
      to
      the business, condition (financial or otherwise), operations, performance,
      properties
      or prospects of any other Grantor now or hereafter known to such Investor (each
      Subsidiary
      Guarantor waiving any duty on the part of the Investor to disclose such
      information);

    

    (vi)
      the
      failure of any other Person to execute or deliver this Agreement,
      any Supplement or any other guarantee or agreement or the release or reduction
      of liability
      of any Subsidiary Guarantor or other guarantor or surety with respect to the
      Guaranteed Obligations;
      or

    

    (vii)
      any
      other circumstance (including, without limitation, any statute
      of limitations) or any existence of or reliance on any representation by any
      Investor that might
      otherwise constitute a defense available to, or a discharge of, any Grantor
      or
      any other guarantor or surety, in each case other than payment in full of the
      Guaranteed Obligations (other than
      contingent indemnification obligations).

    

    This
      Subsidiary Guarantee shall continue to be effective or be reinstated, as the
      case may be, if at any time
      any
      payment of any of the Guaranteed Obligations is rescinded or must otherwise
      be
      returned by any Investor
      or any other Person upon the insolvency, bankruptcy or reorganization of the
      Company or any other
      Grantor or otherwise, all as though such payment had not been made.

    

    (c)
      Waivers
      and Acknowledgments.
      Each
      Subsidiary Guarantor hereby unconditionally
      and irrevocably waives:

    

    (i)
      promptness, diligence, notice of acceptance, presentment, demand
      for performance, notice of nonperformance, default, acceleration, protest or
      dishonor and any
      other
      notice with respect to any of the Guaranteed Obligations and this Subsidiary
      Guarantee and
      any
      requirement that any Investor protect, secure, perfect or insure any Lien or
      any
      property subject
      thereto or exhaust any right or take any action against any Grantor or any
      other
      Person;

    

    (ii)
      any
      right to revoke this Subsidiary Guarantee and acknowledges
      that this Subsidiary Guarantee is continuing in nature and applies to all
      Guaranteed Obligations,
      whether existing now or in the future;

    

    (iii)
      (A)
      any defense arising by reason of any claim or defense based
      upon an election of remedies by any Investor that in any manner impairs,
      reduces, releases or
      otherwise adversely affects the subrogation, reimbursement, exoneration,
      contribution or indemnification
      rights of such Subsidiary Guarantor or other rights of such Subsidiary Guarantor
      to
      proceed against any of the other Grantors, any other guarantor or any other
      Person, and (B) any defense
      based on any right of set-off or counterclaim against or in respect of the
      Obligations of such
      Subsidiary Guarantor hereunder;

    

    (iv)
      any
      duty on the part of any Investor to disclose to such Subsidiary
      Guarantor any matter, fact or thing relating to the business, condition
      (financial or otherwise),
      operations, performance, properties or prospects of any other Grantor or any
      of
      its Subsidiaries
      now or hereafter known by such Investor; and

    

    (v)
      each
      Subsidiary Guarantor acknowledges that it will receive
      substantial direct and indirect benefits from the financing arrangements
      contemplated by the
      Secured Transaction Documents and that the waivers set forth in Section 1.3(b)
      and this Section
      1.3(c) are knowingly made in contemplation of such benefits.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (d)
      Subrogation. Each
      Subsidiary Guarantor hereby unconditionally and irrevocably
      agrees not to exercise any rights that it may now have or hereafter acquire
      against the Company
      or any other Grantor that arise from the existence, payment, performance or
      enforcement of such
      Subsidiary Guarantor's obligations under or in respect of this Subsidiary
      Guarantee or any other Secured
      Transaction Document, including, without limitation, any right of subrogation,
      reimbursement, exoneration,
      contribution or indemnification and any right to participate in any claim or
      remedy of any Investor
      against the Company or any other Grantor, whether or not such claim, remedy
      or
      right arises in equity
      or
      under contract, statute or common law, including, without limitation, the right
      to take or receive from
      the
      Company or any other Grantor, directly or indirectly, in cash or other property
      or by set-off or in any other manner, payment or security on account of such
      claim, remedy or right, unless and until all of the
      Guaranteed Obligations (other than contingent indemnification rights) shall
      have
      been paid in full in cash.
      If
      any amount shall be paid to any Subsidiary Guarantor in violation of the
      immediately preceding sentence
      at any time prior to the latest of the payment in full in cash of the Guaranteed
      Obligations (other than
      contingent indemnification rights), such amount shall be received and held
      in
      trust for the benefit of the
      Investor, shall be segregated from other property and funds of such Subsidiary
      Guarantor and shall forthwith be paid or delivered to the Collateral Agent
      in
      the same form as so received (with any necessary endorsement
      or assignment) to be credited and applied to the Guaranteed Obligations, whether
      matured or unmatured,
      in accordance with the terms of the Secured Transaction Documents, or to be
      held
      as collateral
      for any Guaranteed Obligations. If (i) any Subsidiary Guarantor shall make
      payment to any Investor
      of all or any part of the Guaranteed Obligations and (ii) all of the Guaranteed
      Obligations (other than
      contingent indemnification rights) shall have been paid in full in cash, the
      Investor will, at such Subsidiary
      Guarantor’s
      request and expense, execute and deliver to such Subsidiary Guarantor
appropriate
      documents, without recourse and without representation or warranty, necessary
      to
      evidence the transfer by subrogation to such Subsidiary Guarantor of an interest
      in the Guaranteed Obligations resulting from such payment made by such
      Subsidiary Guarantor pursuant to this Subsidiary Guarantee.

    

    (e)
      Subordination. Each
      Subsidiary Guarantor hereby subordinates any and all debts, liabilities and
      other obligations owed to such Subsidiary Guarantor by each other Grantor (the
      “Subordinated
      Obligations”) to
      the
      Guaranteed Obligations to the extent and in the manner hereinafter set
      forth
      in this Section 1.3:

    

    (i)
      Prohibited
      Payments, Etc. Except
      during the continuance of
      an
      Event of Default, each Subsidiary Guarantor may receive payments from any other
      Grantor on account of the Subordinated Obligations. Upon the occurrence and
      during the continuance of any
      Event
      of Default, however, any Subsidiary Guarantor may demand, accept or take any
      action to collect any payment on account of the Subordinated
      Obligations.

    

    (ii)
      Prior
      Payment of Guaranteed Obligations. In
      any
proceeding
      under any Bankruptcy Law relating to any other Grantor, each Subsidiary
      Guarantor agrees that the Investor shall be entitled to receive payment in
      full
      in cash of all Guaranteed Obligations
      (includings all interest and expenses accruing after the commencement of a
      proceeding
      under any Bankruptcy Law, whether or not constituting an allowed claim in such
      proceeding
      (“Post-Petition
      Interest”)) (other
      than contingent indemnification obligations) before such
      Subsidiary Guarantor receives payment of any Subordinated
      Obligations.

    

    (iii)
      Turn-Over.
      Upon the
      occurrence and during the continuance of any Event of Default, each Subsidiary
      Guarantor shall upon written request by the Collateral
      Agent, collect, enforce and receive payments on account of the Subordinated
      Obligations
      as trustee for the Investor and deliver such payments to the Collateral Agent
      on
account
      of the Guaranteed Obligations (including all Post-Petition Interest), together
      with any necessary endorsements or other instruments of transfer, but without
      reducing or affecting in any manner
      the liability of such Subsidiary Guarantor under the other provisions of this
      Subsidiary Guarantee.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (iv)
      Collateral
      Agent Authorization. Upon
      the
      occurrence and during the continuance of any Event of Default, the Collateral
      Agent is authorized and empowered (but without any obligation to so do), in
      its
      reasonable discretion, (A) in the name of each
      Subsidiary Guarantor, to collect and enforce, and to submit claims in respect
      of, the Subordinated
      Obligations and to apply any amounts received thereon to the Guaranteed
      Obligations (including any and all Post-Petition Interest), and (B) to require
      each Subsidiary Guarantor
      (1) to collect and enforce, and to submit claims in respect of, the Subordinated
      Obligations
      and (2) to pay any amounts received on such obligations to the Collateral Agent
      for application to the Guaranteed Obligations (including any and all
      Post-Petition Interest).

    

    (f)
      Continuing
      Subsidiary Guarantee; Assignments. This
      Subsidiary Guarantee
      is a continuing guarantee and shall (i) remain in full force and effect until
      the payment in full in cash of the Guaranteed Obligations, (ii) be binding
      upon
      each Subsidiary Guarantor, its successors and assigns, and (iii) inure to the
      benefit of and be enforceable by the Investor and their successors and permitted
      transferees and assigns.

    

    (g)
      Mandatory
      Provisions of Bankruptcy Law. Nothing
      in this Section 1.3 shall limit any rights a receiver, liquidator, insolvency
      administrator may have under the GermanInsolvency
      Act (Insolvenzordnung).

    

    Section
      1.4 Grant
      of Security

    

    (a)
      Grant
      by Grantors. As
      security for the payment or performance, as applicable, in full of the
      Obligations, each Grantor hereby pledges and grants to the Collateral Agent,
      for
      the ratable benefit of the Secured Parties, a lien on and security interest
      (the
“Security
      Interest”) in
      and
to
      all of
      the right, title and interest of such Grantor in, to and under the following
      property, wherever located, whether now existing or hereafter arising or
      acquired from time to time (all of which being hereinafter collectively referred
      to as the “Collateral”):

    

    (i)
      all
      Accounts,

    

    (ii)
      all
      Deposit Accounts and Securities Accounts, including all
      Cash
      Collateral Accounts and Control Accounts,

    

    (iii)
      all
      Chattel Paper, Documents and Instruments, 

     

    (iv)
      all
      Commercial Tort Claims,

    

    (v)
      all
      Equipment,

    

    (vi)
      all
      General Intangibles, 

     

    (vii)
      all
      Goods,

    

    (viii)
      all Insurance, 

     

    (ix)
      all
      Instruments,

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (x)
      all
      Intellectual Property, 

     

    (xi)
      all
      Inventory,

    

    (xii)
      all
      Investment Property, including all Pledged Collateral and
      all
      Securities Control Accounts,

    

    (xiii)
      all Proceeds of Authorizations,

    

    (xiv)
      all
      Receivables and Receivables Records,

    

    (xv)
      all
      other
      goods and personal property of such Grantor, whether tangible or intangible,
      wherever located, including letters of credit,

    

    (xvi)
      to
      the extent not otherwise included in clauses (i) through (xv)
      of
      this Section, all Collateral Records, Collateral Support and Supporting
      Obligations in respect
      of any of the foregoing,

    

    (xvii)
      to
      the extent not otherwise included in clauses (i) through (xvi)
      of
      this Section, all other property in which a security interest may be granted
      under the UCC or which may be delivered to and held by the Collateral Agent
      pursuant to the terms hereof (including the account referred to in Section
      3.4(c)(ii) and all funds and other property from time to time therein or
      credited thereto),

    

    (xviii)
      all Collateral of Twistbox Games Ltd. & Co. KG as further defined
      in Schedule
      1.4(a) in
      compliance with mandatory German law, and

    

    (xix)
      to
      the extent not otherwise included in clauses (i) through (xvii)
      of
      this Section, all Proceeds, products, substitutions, accessions, rents and
      profits of or in respect
      of any of the foregoing.

    

    (b)
      Revisions
      to UCC.
      For the
      avoidance of doubt, it is expressly understood and
      agreed that, to the extent the UCC is revised after the date hereof such that
      the definition of any of the foregoing terms included in the description or
      definition of the Collateral is changed, the parties hereto desire
      that any property which is included in such changed definitions, but which
      would
      not otherwise be included
      in the Security Interest on the date hereof, nevertheless be included in the
      Security Interest upon the effective date of such revision. Notwithstanding
      the
      immediately preceding sentence, the Security Interest is intended to apply
      immediately on the date hereof to all of the Collateral to the fullest extent
      permitted by applicable law, regardless of whether any particular item of the
      Collateral was then subject to
      the
      UCC.

    

    (c)
      Qualified
      Receivables Facility. The
      Secured Parties agree with each Grantor that the Collateral Agent shall, upon
      receipt of written notice of such Grantor's imminent entry into a Qualified
      Receivables Facility, release the Security Interest granted hereunder in all
      of
      such Grantor's right, title and interest in, to and under (i) all Receivables
      of
      such Grantor, whereupon such Grantor shall be permitted to pledge and grant
      a
      first priority lien on and security interest in all of its right, title and
      interest in, to and under such Receivables in favor of the lender under such
      Qualified Receivables Facility
      (the “QRF
      Lender”) and
      (ii)
      an amount of cash not to exceed $1,000,000 which shall be placed in
      a
      Deposit Account not subject to a Control Agreement (the “QRF
      Deposit Account”) whereupon
      such Grantor
      shall be permitted to pledge and grant a first priority lien on and security
      interest in all of its right, title
      and
      interest in, to and under the QRF Deposit Account in favor of the QRF Lender;
      provided, that
      the
QRF
      Deposit Account shall not be commingled with and shall be separate from the
      Deposit Accounts on which
      the
      Secured Party has an existing Lien. Promptly after the QRF Lender's filing
      of a
      UCC-1 financing
      statement in respect of such Receivables, such Grantor shall, at its own cost
      and expense, execute, acknowledge, deliver and/or cause to be duly filed all
      such agreements, instruments and other documents that may be reasonably
      requested by the Collateral Agent, and take all such further actions,
that
      the
      Collateral Agent may from time to time reasonably request (i) in order to pledge
      and grant to the Collateral
      Agent, for the ratable benefit of the Secured Parties, subject to an
      intercreditor agreement which
      shall contain customary limitations on the exercise of remedies and pay-over
      provisions, a second priority
      Security Interest in all of such Grantor's right title and interest in, to
      and
      under all of such Grantor's
      Receivables and (ii) to enable the Collateral Agent to perfect such Security
      Interest. The Secured
      Parties acknowledge and agree that nothing in any Secured Transaction Document
      shall restrict or
      be
      deemed to restrict a Grantor from agreeing with the QRF Lender that, upon the
      occurrence of an event
      of
      default under the Qualified Receivables Facility, the QRF Lender shall be
      entitled to instruct each
      Account Debtor to remit all payments in respect of Receivables directly to
      the
      QRF Lender or its designee.
      If any Grantor proposes to enter into a Qualified Receivables Facility, the
      Collateral Agent agrees
      to
      negotiate an intercreditor agreement with the QRF Lender reasonably and in
      good
      faith. Any costs reasonably incurred by the Collateral Agent in connection
      with
      the negotiation of and its entry into an
      intercreditor agreement with the QRF Lender shall be borne by the
      Grantors.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      2.

    

    SECURITY
      FOR OBLIGATIONS; NO ASSUMPTION OF LIABILITY 

     

    Section
      2.1 Security
      for Obligations

    

    This
      Guarantee and Security Agreement secures, and the Collateral is collateral
      security for,
      the
      prompt and complete payment or performance in full when due, whether at stated
      maturity, by required
      prepayment, declaration, acceleration, demand or otherwise (including the
      payment of amounts that
      would become due but for the operation of the automatic stay under Section
      362(a) of Title 11 of the United
      States Code, or any similar provision of any other bankruptcy, insolvency,
      receivership or other similar law), of all Obligations with respect to each
      Grantor.

    

    Section
      2.2 No
      Assumption of Liability

    

    Notwithstanding
      anything to the contrary herein, the Security Interest is granted as
security
      only and shall not subject the Collateral Agent or any other Secured Party
      to,
      or in any way alter or
      modify, any obligation or liability of any Grantor with respect to or arising
      out of the Collateral.

    

    ARTICLE
      3.

    

    REPRESENTATIONS
      AND WARRANTIES AND COVENANTS 

     

    Section
      3.1 Generally

    

    (a) Representations
      and Warranties. Each
      of
      the Grantors, jointly with the other
      Grantors and severally, represents and warrants to the Collateral Agent and
      the
      other Secured Parties
      that:

    

    (i)
      As of
      the Applicable Date, (A) such Grantor's chief executive
      office or its principal place of business is, and for the preceding four months
      has been, located
      at the office indicated on Schedule
      3.1(a)(i), (B)
      such
      Grantor's jurisdiction of organization
      is the jurisdiction indicated on Schedule
      3.1(a)(i), and
      (C)
      such Grantor's Federal Employer
      Identification Number and/or company organizational number is as set forth
      on
Schedule
      3.1(a)(i).

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (ii)
      As
      of the Applicable Date, (A) such Grantor's full legal name
      is
      as set forth on Schedule
      3.1(a)(ii) and
      (B)
      such Grantor has not changed its legal name in the preceding five years, except
      as set forth on Schedule
      3.1(a)(ii).

    

    (iii)
      Such Grantor has not within the five years preceding the Applicable
      Date become bound (whether as a result of merger or otherwise) as debtor under
      a
      security agreement entered into by another Person, which has not theretofore
      been terminated.

    

    (iv)
      Such
      Grantor has good and valid rights in, and title to, the Collateral
      with respect to which it has purported to grant the Security Interest, except
      for minor defects
      in title that do not materially interfere with its ability to conduct its
      business as currently conducted
      or to utilize such Collateral for its intended purposes, and except for Liens
      expressly permitted
      pursuant to the Secured Transaction Documents.

    

    (v)
      To
      the best of such Grantor's knowledge, all actions and consents,
      including all filings, notices, registrations and recordings, necessary or
      desirable to create, perfect or ensure the first priority (subject only to
      Liens
      expressly permitted by the Secured Transaction Documents) of the Security
      Interest in the Collateral owned or held by it or on its behalf or for the
      exercise by the Collateral Agent or any other Secured Party of any voting
or
      other
      rights provided for in this Guarantee and Security Agreement or the exercise
      of
      any remedies
      in respect of any such Collateral have been made or obtained, (A) except for
      (1)
      the filing of UCC financing statements naming such Grantor as “debtor” and the
      Collateral Agent as “secured party”, or the making of other appropriate filings,
      registrations or recordings, containing a
      description of such Collateral in each applicable governmental, municipal or
      other office specified on Schedule
      3.1(a)(v)(A), (2)
      the
      filing, registration or recordation of fully executed security agreements in
      the
      form hereof (or in such other form as shall be in all respects satisfactory
      to
      the Collateral Agent) and containing a description of all such Collateral
      consisting of Patents, Trademarks and Copyrights, together with all other
      necessary documents, in each applicable governmental registry or office, (3)
      Deposit Accounts with respect to which a Control Agreement is not required
      hereunder or is not required as of the Applicable Date, (4) Collateral in which
      the Security Interest may be perfected only by possession, the delivery of
      which
      to the Collateral Agent is not required hereunder; (B) except for any such
      Collateral as to which the representations and warranties in this Section
3.1(a)(v)
      would
      not
      be true solely by virtue of such Collateral having been used or disposed of
      in a
      manner expressly permitted hereunder or under any other Secured Transaction
      Document; and (C) except to the extent that such Security Interest may
      not
      be perfected by filing, registering, recording or taking any other action in
      the
      United States.
      The filing, in a timely manner, of the Securities Purchase Agreement and/or
      the
Guarantee
      and Security Agreement and/or the Pledge Agreements with the following
      governmental bodies is required in order to perfect the security interests
      granted thereunder:

    
      	
            	·	
              The
                United States Patent and Trademark Office and the United States Copyright
                Office

            

    

     

    
      	
            	·	
              The
                Patents, Trademarks and Designs Office of any other jurisdiction.

            

    

    
       

      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    The
      Collateral Agent agrees that it shall not seek (nor require any Grantor
      to take any action in order) to perfect its Security Interest in the trademarks
      set forth on Schedule
      3.1(a)(v)(B).

    

    Subsequent
      recording and filing with the United States Patent and Trademark
      Office and the United States Copyright Office may be necessary to perfect a
      Lien
      on registered patents, trademarks, trademark applications and copyrights
      acquired by the Company or any of its Subsidiaries after the date
      hereof.

    

    (vi)
      It
      has not filed or authorized the filing of (A) any financing statement
      or analogous document under the UCC or any other applicable laws covering any
      such Collateral,
      (B) any assignment in which it assigns any such Collateral or any security
      agreement or similar instrument covering any such Collateral with the United
      States Patent and Trademark Office
      or
      the United States Copyright Office, or (C) any assignment in which it assigns
      any such Collateral
      or any security agreement or similar instrument covering any such Collateral
      with any foreign governmental, municipal or other office, in each case, which
      financing statement, analogous
      document, assignment or other instrument, as applicable, is still in effect,
      except for Liens
      expressly permitted by the Secured Transaction Documents.

    

    (vii)
      The
      Security Interest in the Collateral owned or held by it or
      on its
      behalf (A) is effective to vest in the Collateral Agent, on behalf of the
      Secured Parties, the
      rights of the Collateral Agent in such Collateral as set forth herein and (B)
      does not violate Regulation
      T, U or X as of the Applicable Date.

    

    (viii)
      Immediately after the Applicable Date, (i) the fair value of the
      assets of the Company and the Subsidiary Guarantors, taken as a whole, at a
      fair
      valuation, will exceed their debts and liabilities, subordinated, contingent
      or
      otherwise, (ii) the present fair saleable
      value of the property of the Company and the Subsidiary Guarantors, taken as
      a
      whole, will
      be
      greater than the amount that will be required to pay the probable liability
      of
      their debts and
      other
      liabilities, subordinated, contingent or otherwise, as such debts and other
      liabilities become
      absolute and matured, (iii) the Company and the Subsidiary Guarantors, taken
      as
      a whole, will
      be
      able to pay its debts and liabilities, subordinated, contingent or otherwise,
      as
      such debts and
      liabilities become absolute and matured, and (iv) each of the Company and the
      Subsidiary Guarantors will not have unreasonably small capital with which to
      conduct the business following such
      date.

    

    (b)
      Covenants
      and Agreements. Each
      Grantor hereby covenants and agrees as follows:

    

    (i)
      It
      will promptly notify the Collateral Agent in writing of any
      change (A) in its legal name, (B) in the location of its chief executive office,
      principal place of business, any office in which it maintains books or records
      relating to any of the Collateral owned or held by it or on its behalf or,
      except to the extent permitted by Section 3.1(b)(vii) or Section 3.2, any office
      or facility at which any such Collateral is located (including the establishment
      of any such new office or facility), (C) in its identity or legal or
      organizational structure or its jurisdiction of formation, or (D) in its Federal
      Taxpayer Identification Number. It agrees not to effect or permit any change
      referred to in the preceding sentence unless all filings have been made under
      the Uniform Commercial Code or otherwise that are required in order for the
      Collateral Agent to continue at all times following such change to have a valid,
      legal and perfected security interest in all the Collateral with the priority
      required hereby.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (ii)
      It
      shall
      maintain, at its own cost and expense, such complete
      and accurate Records with respect to the Collateral owned or held by it or
      on
      its behalf as
      is
      consistent with its current practices and in accordance with such prudent and
      standard practices
      used in industries that are the same as or similar to those in which it is
      engaged, but in any
      event
      to include complete accounting Records indicating all payments and proceeds
      received with
      respect to any part of such Collateral.

    

    (iii)
      It
      shall, at its own cost and expense, take any and all actions
      reasonably necessary to defend title to the Collateral owned or held by it
      or on
      its behalf against
      all Persons and to defend the Security Interest in such Collateral and the
      priority thereof against
      any Lien or other interest not expressly permitted by the Secured Transaction
      Documents, and in furtherance thereof, it shall not take, or permit to be taken,
      any action not otherwise expressly
      permitted by the Secured Transaction Documents that is reasonably likely to
      impair the Security
      Interest or the priority thereof or any Secured Party's rights in or to such
      Collateral in violation
      hereof.

    

    (iv)
      The
      Collateral Agent and such Persons as the Collateral Agent
      may
      designate shall have the right at reasonable times and on reasonable notice,
      at
      the cost and
      expense of such Grantor, to inspect all of its Records (and to make extracts
      and
      copies from such
      Records), to discuss its affairs with its officers and (to the extent consented
      to by such independent
      accountants) independent accountants and to verify under reasonable procedures
      the validity,
      amount, quality, quantity, value, condition and status of, or any other matter
      relating to, the
      Collateral owned or held by or on behalf of such Grantor, including, upon the
      occurrence and during
      the continuance of any Event of Default, in the case of Receivables, Pledged
      Debt, General Intangibles, Commercial Tort Claims or Collateral in the
      possession of any third person, by
      contacting Account Debtors, contract parties or other obligors thereon or any
      third person possessing
      such Collateral for the purpose of making such a verification. The Collateral
      Agent shall maintain the confidentiality of all such information and shall
      have
      the absolute right to share on a confidential basis any information it gains
      from such inspection or verification with any Secured Party.

    

    (v)
      At
      its option, the Collateral Agent may discharge past due taxes,
      assessments, charges, fees, Liens, security interests or other encumbrances
      at
      any time levied
      or
      placed on the Collateral owned or held by or on behalf of such Grantor, and
      not
permitted
      by the Secured Transaction Documents, and may pay for the maintenance and
preservation
      of such Collateral to the extent such Grantor fails to do so as required by
      the
      Secured Transaction
      Documents, and such Grantor agrees, jointly with the other Grantors and
      severally, to reimburse
      the Collateral Agent on demand for any payment made or any expense incurred
      by
      the Collateral
      Agent pursuant to the foregoing authorization; provided, however, that
      nothing in this paragraph
      shall be interpreted as excusing any Grantor from the performance of, or
      imposing any obligation
      on the Collateral Agent or any other Secured Party to cure or perform, any
      covenants or
      other
      promises of any Grantor with respect to taxes, assessments, charges, fees,
      Liens, security interests
      or other encumbrances and maintenance as set forth herein or in the other
      Secured Transaction
      Documents.

    

    (vi)
      It
      shall not be excused from liability as a result of granting of
      the
      Security Interest pursuant to this Guarantee and Security Agreement to observe
      and perform
      all the conditions and obligations to be observed and performed by it under
      each
      contract, agreement
      or instrument relating to the Collateral owned or held by it or on its behalf,
      all in accordance with the terms and conditions thereof and it agrees, jointly
      with the other Grantors and
      severally, to indemnify and hold harmless the Collateral Agent and the other
      Secured Parties from and against any and all liability for such
      performance.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    (vii)
      It
      shall not make, or permit to be made, an assignment, pledge
      or
      hypothecation of the Collateral owned or held by it or on its behalf, or grant
      any other Lien
      in
      respect of such Collateral, except as expressly permitted by the Secured
      Transaction Documents.
      Except as expressly permitted by the Secured Transaction Documents, it shall
      not
make
      or
      permit to be made any transfer of such Collateral, and it shall remain at all
      times in possession
      of such Collateral and the direct owner, beneficially and of record, of the
      Pledged Equity
      Interests included in such Collateral, except that (A) Inventory may be sold
      in
      the ordinary course
      of
      business and (B) unless and until the Collateral Agent shall notify it that
      an
      Event of Default
      shall have occurred and be continuing and that, during the continuance thereof,
      it shall not
      sell,
      convey, lease, assign, transfer or otherwise dispose of any such Collateral
      (which notice may
      be
      given by telephone if promptly confirmed in writing), it may use and dispose
      of
      such Collateral
      in any lawful manner not inconsistent with the provisions of this Guarantee
      and
Security
      Agreement or any other Secured Transaction Document.

    

    Section
      3.2 Equipment
      and Inventory

    

    Each
      of
      the Grantors, jointly with the other Grantors and severally, represents and
      warrants to the Collateral Agent and the other Secured Parties that, except
      for
      such Equipment and Inventory
      that does not exceed a book value of $100,000 in the aggregate for all Grantors,
      as of the Applicable
      Date, all of the Equipment and Inventory included in the Collateral owned or
      held by it or on its
      behalf (other than mobile goods and Inventory and Equipment in transit) is
      kept
      only at the locations specified
      on Schedule
      3.2. In
      addition, each Grantor covenants and agrees that it shall not permit any
Equipment
      or Inventory owned or held by it or on its behalf to be in the possession or
      control of any warehouseman,
      bailee, agent or processor for a period of greater than ninety (90) consecutive
      days, unless such
      warehouseman, bailee, agent or processor shall have been notified of the
      Security Interest and shall have
      agreed in writing to hold such Equipment or Inventory subject to the Security
      Interest and the instructions
      of the Collateral Agent and to waive and release any Lien held by it with
      respect to such Equipment
      or Inventory, whether arising by operation of law or otherwise.

    

    Section
      3.3 Receivables

    

    (a)
      Representations
      and Warranties. Each
      of
      the Grantors, jointly with the other
      Grantors and severally, represents and warrants to the Collateral Agent and
      the
      other Secured Parties
      that, except for (i) Receivables valued at less than $25,000 individually and
      $100,000 in the aggregate for all Grantors or (ii) any Receivable pledged to
      the
      QRF Lender, no Receivable is evidenced by
      an
      Instrument (other than checks received in the ordinary course of business)
      or
      Chattel Paper that has not
      been
      delivered to the Collateral Agent.

    

    (b)
      Covenants
      and Agreements.
      Each
      Grantor hereby covenants and agrees that:

    

    (i)
      At
      the reasonable request of the Collateral Agent, it shall mark
      conspicuously, in form and manner reasonably satisfactory to the Collateral
      Agent, all Chattel
      Paper, Instruments (other than checks received in the ordinary course of
      business) and other evidence of any Receivables owned or held by it or on its
      behalf (other than any delivered to the Collateral Agent as provided herein
      and
      other than purchase orders sent to customers), as well as the related
      Receivables Records with an appropriate reference to the fact that the
Collateral
      Agent has a security interest therein.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (ii)
      Except
      with respect to any Receivable pledged to the QRF Lender,
      it will not, without the Collateral Agent's prior written consent (which consent
      shall not be
      unreasonably withheld), grant any extension of the time of payment of any such
      Receivable, compromise,
      compound or settle the same for less than the full amount thereof, release,
      wholly or partly,
      any Supporting Obligation or Collateral Support relating thereto, or allow
      any
      credit or discount
      whatsoever thereon, other than extensions, credits, discounts, releases,
      compromises or settlements
      granted or made in the ordinary course of business and consistent with its
      then
      current practices
      and in accordance with such practices reasonably believed by such Grantor to
      be
prudent.

    

    (iii)
      Except as otherwise provided in this Section and unless otherwise
      determined by such Grantor in accordance with its good faith business judgment,
      it shall continue to use its best efforts to collect all amounts due or to
      become due to it under all such
      Receivables and any Supporting Obligations or Collateral Support relating
      thereto, and diligently exercise each material right it may have thereunder,
      in
      each case at its own cost and expense, and in connection with such collections
      and exercise, it shall, upon the occurrence and during
      the continuance of an Event of Default, except with respect to any Receivable
      pledged to the
      QRF
      Lender, take such action as it or the Collateral Agent may reasonably deem
      necessary. Notwithstanding
      the foregoing, the Collateral Agent shall have the right at any time upon the
      occurrence
      and during the continuance of an Event of Default to notify, or require such
      Grantor to notify,
      any Account Debtor with respect to any such Receivable, Supporting Obligation
      or
Collateral
      Support of the Collateral Agent's security interest therein, and in addition,
      at
      any time during
      the continuation of an Event of Default, the Collateral Agent may: (A) direct
      such Account
      Debtor to make payment of all amounts due or to become due to such Grantor
      thereunder
      directly to the Collateral Agent and (B) enforce, at the cost and expense of
      such Grantor,
      collection thereof and to adjust, settle or compromise the amount or payment
      thereof, in the
      same
      manner and to the same extent as such Grantor would be able to have done. If
      the
      Collateral Agent notifies such Grantor that it has elected to collect any such
      Receivable, Supporting
      Obligation or Collateral Support in accordance with the preceding sentence,
      any
payments
      thereof received by such Grantor shall not be commingled with any of its other
      funds or property but shall be held separate and apart therefrom, shall be
      held
      in trust for the benefit of the Collateral
      Agent hereunder and shall be forthwith delivered to the Collateral Agent in
      the
      same form
      as
      so received (with any necessary indorsement), and such Grantor shall not grant
      any extension
      of the time of payment thereof, compromise, compound or settle the same for
      less
      than the
      full
      amount thereof, release the same, wholly or partly, or allow any credit or
      discount whatsoever
      thereon. For the avoidance of doubt, the parties agree that the foregoing second
      and third
      sentences of this Section 3.3(b)(iii) shall not apply to or be of any force
      or
      effect in respect of any Receivable which has been pledged to the QRF
      Lender.

    

    (iv)
      It
      shall use its reasonable best efforts to keep in full force and
      effect any Supporting Obligation or Collateral Support relating to any
      Receivable.

    

    (v)
      During the continuance of an Event of Default, at the request
      of the Collateral Agent, it shall direct each Account Debtor to make payment
      on
      each Receivable,
      other than any Receivable which has been pledged to the QRF Lender, to a Control
      Account.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
       

      Section
        3.4 Investment
        Property 

       

      (a) Representations
        and Warranties. Each
        of
        the Grantors, jointly with the other Grantors and severally, represents and
        warrants to the Collateral Agent and the other Secured Parties
        that:

      

      (i)
        Schedule
        3.4 sets
        forth, as of the Applicable Date, (i) all of the Investment Property (other
        than
        (A) Receivables not evidenced by an Instrument or Chattel Paper and (B) Equity
        Interests with an immaterial value) owned or held by or on behalf of such
        Grantor to the extent not held in a Securities Account and (ii) each Securities
        Account or commodities account maintained by or on behalf of such
        Grantor.

       

    

    (ii)
      All
      Pledged Equity Interests have been duly authorized and
      validly issued and are fully paid and nonassessable, and such Grantor is the
      direct owner, beneficially and of record, thereof, free and clear of all Liens
      (other than Liens expressly permitted by the Secured Transaction
      Documents).

    

    (iii)
      All
      Pledged Debt other than Pledged Debt described on Schedule
      3.4 hereto
      has been duly authorized, issued and delivered and, where necessary,
authenticated,
      and constitutes the legal, valid and binding obligation of the obligor with
      respect thereto, enforceable in accordance with its terms, subject to the
      effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
      moratorium and other similar laws relating to or affecting creditors' rights
      generally, and general equitable principles (whether considered in a proceeding
      in equity or at law).

    

    (iv)
      All
      Investment Property, other than Investment Property held
      in a
      Securities Account identified on Schedule
      3.4, consisting
      of certificated securities, Chattel
      Paper or Instruments other than checks received in the ordinary course of
      business has been delivered to the Collateral Agent.

    

    (v)
      All
      Pledged Collateral held by a Securities Intermediary in a
      Securities Account or a commodities account is in a Securities Control
      Account.

    

    (vi)
      Other than the Pledged Equity Interests that constitute General
      Intangibles, there is no Investment Property other than that (x) represented
      by
      certificated securities or Instruments in the possession of the Collateral
      Agent
      or (y) held in a Securities Account
      identified on Schedule
      3.4.

    

    (vii)
      No
      Person other than the Collateral Agent or an Approved Securities
      Intermediary has “control” (within the meaning of Article 8 of the UCC) over any
      Investment Property of such Grantor.

    

    (b)
      Registration
      in Nominee Name; Denominations. Each
      Grantor hereby agrees
      that (i) without limiting Article 5, the Collateral Agent, on behalf of the
      Secured Parties, shall have the right (in its sole and absolute discretion)
      to
      hold any Investment Property in its own name as pledgee, the name of its nominee
      (as pledgee or as sub agent) or the name of the applicable Grantor, endorsed
      or
      assigned, where applicable, in blank or in favor of the Collateral Agent, (ii)
      at the Collateral Agent's request, such Grantor will promptly give to the
      Collateral Agent copies of any material notices or other communications received
      by it with respect to any Investment Property registered in its name, and (iii)
      the Collateral Agent shall at all times have the right to exchange any
      certificates, instruments or other documents representing or evidencing any
      Investment Property owned or held by or on behalf of such Grantor for
      certificates, instruments or other documents of smaller or larger denominations
      for any purpose consistent with this Guarantee and Security
      Agreement.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (c)
      Voting
      and Distributions.

     

    (i)
      Unless and until an Event of Default shall have occurred and
      be
      continuing:

     

    (A)
      Each
      Grantor shall be entitled to exercise any and all voting
      and/or other consensual rights and powers inuring to an owner of the Investment
      Property,
      or any part thereof, for any purpose not inconsistent with the terms of this
      Guarantee
      and Security Agreement and the other Secured Transaction Documents; provided, however, that
      such
      Grantor will not be entitled to exercise any such right if the result
      thereof could materially and adversely affect the rights inuring to a holder
      of
      the Investment
      Property or the rights and remedies of the Collateral Agent under this
Guarantee
      and Security Agreement or any other Secured Transaction Document or the
ability
      of the Collateral Agent to exercise the same.

    

    (B)
      The
      Collateral Agent shall execute and deliver to each
      Grantor, or cause to be executed and delivered to each Grantor, all such
      proxies, powers of attorney and other instruments as such Grantor may reasonably
      request for the purpose
      of enabling it to exercise the voting and/or consensual rights and powers it
      is
entitled
      to exercise pursuant to subsection (c)(i)(A) and
      to
      receive the cash payments it is entitled
      to receive pursuant to subsection (c)(i)(C).

    

    (C)
      Each
      Grantor shall be entitled to receive, retain and use
      any
      and all cash dividends, interest and principal paid on the Investment Property
      owned
      or
      held by it or on its behalf to the extent and only to the extent that such
      cash
dividends,
      interest and principal are not prohibited by, and otherwise paid in accordance
      with,
      the
      terms and conditions of the Securities Purchase Agreement, the other Secured
      Transaction
      Documents and applicable laws. All non cash dividends, interest and principal,
      and all dividends, interest and principal paid or payable in cash or otherwise
      in connection
      with a partial or total liquidation or dissolution, return of capital, capital
      surplus
      or paid in surplus, and all other distributions (other than distributions
      referred to in
      the
      preceding sentence) made on or in respect of the Investment Property, whether
      paid or
      payable in cash or otherwise, whether resulting from a subdivision, combination
      or reclassification
      of the outstanding Pledged Equity Interests in any issuer of any Investment
      Property or received in exchange for any Investment Property, or any part
thereof,
      or in redemption thereof, or as a result of any merger, consolidation,
      acquisition or
      other
      exchange of assets to which such issuer may be a party or otherwise, shall
      be
      and become
      part of the Collateral, and, if received by such Grantor, shall not be
      commingled with
      any
      of its other funds or property but shall be held separate and apart therefrom,
      shall
      be
      held in trust for the benefit of the Collateral Agent hereunder and shall be
      forthwith
      delivered to the Collateral Agent in the same form as so received (with any
      necessary
      endorsement).

    

    (ii)
      Without limiting the generality of the foregoing, upon the occurrence
      and during the continuance of an Event of Default:

    

    (A)
      Upon
      the
      direction of the Collateral Agent, all rights of
      each
      Grantor to dividends, interest or principal that it is authorized to receive
      pursuant to subsection (c)(i)(C)
      shall
      cease, and all such rights shall thereupon become vested in the Collateral
      Agent, which shall have the sole and exclusive right and authority to
receive
      and retain such dividends, interest or principal, as applicable. All dividends,
      interest and principal received by or on behalf of any Grantor contrary to
      the
      provisions of
      this
      Section shall be held in trust for the benefit of the Collateral Agent, shall
      be
segregated
      from other property or funds of such Grantor and shall be forthwith delivered
      to
      the Collateral Agent upon demand in the same form as so received (with any
      necessary endorsement).
      Any and all money and other property paid over to or received by the
Collateral
      Agent pursuant to the provisions of this subsection (c)(ii)(A) shall
      be
      retained by
      the
      Collateral Agent in an account to be established in the name of the Collateral
      Agent,
      for the ratable benefit of the Secured Parties, upon receipt of such money
      or
      other property
      and shall be applied in accordance with the provisions of Section 6.2. Subject
      to the
      provisions of this subsection (c)(ii)(A), such
      account shall at all times be under the sole
      dominion and control of the Collateral Agent, and the Collateral Agent shall
      at
      all times
      have the sole right to make withdrawals therefrom and to exercise all rights
      with respect
      to the funds and other property from time to time deposited therein or credited
      thereto
      as set forth in the Secured Transaction Documents. After all Events of Default
      have
      been
      cured or waived, the Collateral Agent shall, within five Business Days after
      all
such
      Events of Default have been cured or waived, repay to the applicable Grantor
      all
cash
      dividends, interest and principal (without interest) that such Grantor would
      otherwise
      be permitted to retain pursuant to the terms of subsection (c)(i)(C)
      and
      which
remain
      in
      such account.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (B)
      Upon
      the direction of the Collateral Agent, all rights of
      each
      Grantor to exercise the voting and consensual rights and powers it is entitled
      to exercise
      pursuant to subsection (c)(i)(A),
      and
      the
      obligations of the Collateral Agent under
      subsection (c)(i)(B),
      shall
      cease, and all such rights shall thereupon become vested in
      the
      Collateral Agent, which shall have the sole and exclusive right and authority
      to
exercise
      such voting and consensual rights and powers, provided that, unless otherwise
      directed
      by the Investor, the Collateral Agent shall have the right from time to time
      upon the
      occurrence of and during the continuance of an Event of Default to permit such
      Grantor
      to exercise such rights. After all Events of Default have been cured or waived,
      the
      applicable Grantor will have the right to exercise the voting and consensual
      rights and powers
      that it would otherwise be entitled to exercise pursuant to the terms of
      subsection (c)(i)(A).

    

    (d)
      Covenants
      and Agreements. Each
      Grantor hereby covenants and agrees as follows:

    

    (i)
      Each
      Grantor agrees that it will not establish or maintain, or
      permit
      any other Grantor to establish or maintain, any Securities Account or
      commodities account
      that is not a Control Account.

    

    (ii)
      In
      the event (A) any Grantor or any Approved Securities Intermediary
      shall, after the date hereof, terminate an agreement with respect to the
      maintenance of
      a
      Securities Control Account for any reason, (B) the Collateral Agent shall demand
      the termination
      of an agreement with respect to the maintenance of a Securities Control Account
      as a result
      of
      the failure of an Approved Securities Intermediary to comply with the terms
      of
      the applicable Securities Control Account Letter, or (C) the Collateral Agent
      determines in good faith that
      the
      financial condition of an Approved Securities Intermediary has materially
      deteriorated, such
      Grantor agrees to promptly transfer the assets held in such Securities Control
      Account to another
      Securities Control Account reasonably acceptable to the Collateral
      Agent.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    (iii)
      If,
      after
      the date hereof, any Grantor seeks to establish a Securities
      Account or commodities account or the Collateral Agent, pursuant to the
      preceding clause
      (ii),
      requires
      the transfer of the assets held in a Securities Control Account, the Collateral
      Agent agrees (x) not to unreasonably withhold its consent to any Securities
      Intermediary or commodity
      intermediary selected by such Grantor and (y) to negotiate the Securities
      Control Account
      Letter reasonably and in good faith.

    

    Section
      3.5 Letter
      of Credit Rights

    

    Each
      of
      the Grantors, jointly with the other Grantors and severally, represents and
      warrants to the Collateral Agent and the other Secured Parties that Schedule
      3.5 sets
      forth, as of the Applicable
      Date, each letter of credit giving rise to a Letter of Credit Right included
      in
      the Collateral owned
      or
      held by or on behalf of such Grantor.

    

    Section
      3.6 Intellectual
      Property Collateral

    

    (a)
      Representations
      and Warranties. Each
      of
      the Grantors, jointly with the other
      Grantors and severally, represents and warrants to the Collateral Agent and
      the
      other Secured Parties
      that Schedule
      3.6
      sets
      forth, as of the Applicable Date, all of the Patents, material Patent Licenses,
      Trademarks,
      Trademark Licenses, material Copyrights, material Copyright Licenses, Trade
      Secret Licenses
      and Domain Names included in the Collateral owned or held by such
      Grantor.

    

    (b)
      Covenants
      and Agreements.
      Each
      Grantor hereby covenants and agrees as follows:

    

    (i)
      It
      will not, knowingly or intentionally, nor will it permit any
      of
      its licensees (or sublicensees) to, do any act, or omit to do any act, whereby
      any Patent that is related to the conduct of its business may become invalidated
      or dedicated to the public, and it shall
      use
      its reasonable best efforts to continue to mark any products covered by a Patent
      with the relevant
      patent number as necessary and sufficient to establish and preserve its maximum
      rights under
      applicable patent laws.

    

    (ii)
      It
      will (either directly or through its licensees or its sublicensees),
      for each Trademark that is necessary for the conduct of its business, (A)
      maintain such Trademark in full force free from any claim of abandonment or
      invalidity for non use, (B) display such Trademark with notice of Federal or
      other analogous registration to the extent necessary
      and sufficient to establish and preserve its rights under applicable law, and
      (C) not knowingly
      use or knowingly permit the use of such Trademark in violation of any third
      party's valid
      and
      legal rights.

    

    (iii)
      It
      will promptly notify the Collateral Agent in writing if it knows
      or
      has reason to know that any Intellectual Property material to the conduct of
      its
      business may
      become abandoned, lost or dedicated to the public, or of any adverse
      determination or development
      (including the institution of, or any such determination or development in,
      any
proceeding
      in the United States Patent and Trademark Office or the United States Copyright
      Office,
      or any similar offices or tribunals in the United States or any other country)
      regarding such
      Grantor's ownership of any such Intellectual Property, its right to register
      the
      same, or to keep
      and
      maintain the same.

    

    (iv)
      In
      no event shall it, either directly or through any agent, employee,
      licensee or designee, file an application for any Intellectual Property with
      the
      United States
      Patent and Trademark Office, the United States Copyright Office or any similar
      offices in the United States or any other country, unless it promptly notifies
      the Collateral Agent in writing thereof
      and, upon request of the Collateral Agent, executes and delivers any and all
      agreements, instruments,
      documents and papers as the Collateral Agent may request to evidence the
      Collateral Agent's security interest in such Intellectual Property, and such
      Grantor hereby appoints the Collateral
      Agent as its attorney in fact to execute and file such writings for the
      foregoing purposes, all
      acts
      of such attorney being hereby ratified and confirmed; such power, being coupled
      with an interest, is irrevocable.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (v)
      It
      will take all necessary steps that are consistent with the practice
      in any proceeding before the United States Patent and Trademark Office, the
      United States
      Copyright Office or any similar offices or tribunals in the United States and
      the European Union,
      and except as otherwise determined in its good faith business judgment, any
      other country, to
      maintain and pursue each material application relating to the Intellectual
      Property owned or held
      by
      it (and to obtain the relevant grant or registration) and to maintain each
      issued Patent and each
      registered Trademark and Copyright that is material to the conduct of its
      business, including timely
      filings of applications for renewal, affidavits of use, affidavits of
      incontestability and payment
      of maintenance fees, and, if consistent, in good faith, with good business
      judgment, to initiate
      opposition, interference and cancellation proceedings against third parties.
      In
      the event that
      it
      has reason to believe that any Intellectual Property material to the conduct
      of
      its business has been or is about to be infringed, misappropriated or diluted
      by
      a third party, it promptly shall notify
      the Collateral Agent in writing and shall, if consistent with good business
      judgment, promptly
      sue for infringement, misappropriation or dilution and to recover any and all
      damages for
      such
      infringement, misappropriation or dilution, and take such other actions as
      are
      appropriate under the circumstances to protect such Intellectual
      Property.

    

    (vi)
      During the continuance of an Event of Default, it shall use its
      reasonable best efforts to obtain all requisite consents or approvals by the
      licenser of each License
      to effect the assignment (as collateral security) of all of its right, title
      and
      interest thereunder to the Collateral Agent or its designee.

    

    (vii)
      It
      shall take all steps reasonably necessary to protect the secrecy
      of all Trade Secrets relating to the products and services sold or delivered
      under or in connection
      with the Intellectual Property owned or held by, including entering into
      confidentiality agreements
      with employees and labeling and restricting access to secret information and
      documents.

    

    (viii)
      It
      shall in accordance with its past practices continue to collect
      all amounts due or to become due to such Grantor under all Intellectual
      Property, and diligently
      exercise each material right it may have thereunder, in each case at its own
      cost and expense,
      and in connection with such collections and exercise, it shall, upon the
      occurrence and during
      the continuance of an Event of Default, take such action as it or the Collateral
      Agent may reasonably
      deem necessary. Notwithstanding the foregoing, the Collateral Agent shall have
      the right
      at
      any time after the occurrence and during the continuance of an Event of Default
      to notify, or require such Grantor to notify, any relevant obligors with respect
      to such amounts of the Collateral
      Agent's security interest therein.

    

    Section
      3.7 Commercial
      Tort Claims

    

    (a)
      Representations
      and Warranties. Each
      of
      the Grantors, jointly with the other
      Grantors and severally, represents and warrants to the Collateral Agent and
      the
      other Secured Parties
      that Schedule
      3.7 sets
      forth, as of the Applicable Date, all Commercial Tort Claims made by it or
      on
      its
      behalf or to which it otherwise has any right, title or
      interest.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    (b)
      Covenants
      and Agreements. Each
      Grantor hereby covenants and agrees that
      promptly after the same shall have been commenced, it shall provide to the
      Collateral Agent written notice
      of
      any Commercial Tort Claim and any judgment, settlement or other disposition
      thereof.

     

    Section
      3.8 Deposit Accounts; Control
      Accounts

     

    (a)
      Representations
      and Warranties. The
      only
      Deposit Accounts maintained by
      any
      Grantor on the Applicable Date are those listed on Schedule
      3.8 which
      sets forth such information separately
      for each Grantor.

    (b)
      Covenants
      and Agreements.
      Each
      Grantor hereby covenants and agrees as follows:

    

    Prior
      to
      the Applicable Date, each Grantor shall cause the financial institution
where
      any
      Deposit Account is maintained, other than the financial institutions where
      the
      Deposit Accounts
      specified in item nos. 10, 11, 12, 13 and 14 of Schedule
      3.8 are
      maintained, to enter in to a Control
      Agreement in the form substantially as set forth on Exhibit B hereto;
provided, however, that
      the
enforceability
      of such Control Agreements shall be exclusively conditioned on the valid
      issuance of the Senior
      Secured Notes to the Investor and the receipt by the Company of gross proceeds
      of $16,500,000 therefrom.
      Notwithstanding the foregoing, Deposit Accounts where the amount of cash on
      deposit does not
      exceed $50,000 individually or $100,000 in the aggregate (exclusive of the
      amounts in accounts for unpaid
      payroll, payroll taxes and withholding taxes) shall not be subject to a Control
      Agreement.

    

    Twistbox
      Games Ltd. & Co. KG shall use its reasonable best efforts to cause the
financial
      institution
      where any Deposit Account specified in item nos. 10, 11, 12, 13 and 14 of
Schedule 3.8 is
      maintained to enter in to a Control Agreement in the form substantially as
      set
      forth on Exhibit B hereto
      within forty-five (45) days after the Applicable Date; provided,
      that if
      Twistbox Games Ltd. & Co. KG
      is
      unable to cause one or more of such financial institutions to enter into a
      Control Agreement within such
      time
      period, the Deposit Account(s) maintained at any such financial institutions
      that are not subject to a Control Agreement (the “Excepted
      Deposit Accounts”) shall
      instead be subject to the following sentence.
      If at any time the amount of cash on deposit in the Excepted Deposit Accounts
      exceeds $500,000
      in the aggregate, the excess shall within forty-five (45) days be transferred
      to
      a Deposit Account subject
      to a Control Agreement. Notwithstanding the foregoing, Deposit Accounts where
      the amount of cash
      on
      deposit does not exceed $50,000 individually or $100,000 in the aggregate
      (exclusive of the amounts
      in accounts for unpaid payroll, payroll taxes and withholding taxes) shall
      not
      be subject to a Control
      Agreement.

    

    Following
      the Applicable Date, each Grantor shall provide the Investor and Collateral
      Agent fifteen (15) days written notice prior to the formation of a Deposit
      Account (each, a “New
      Deposit Account”) and
      shall
      (i) promptly cause the financial institution where such New Deposit Account
      is formed to enter into a Control Agreement with respect to such New Deposit
      Account in substantially
      the form as set forth on Exhibit B hereto and (ii) update Schedule
      3.8
      as
      appropriate thereafter.
      The preceding sentence shall not apply to the QRF Deposit Account.
      Notwithstanding the foregoing,
      New Deposit Accounts where the amount of cash on deposit does not exceed $50,000
      individually
      or $100,000 in the aggregate (exclusive of the amounts in accounts for unpaid
      payroll, payroll
      taxes and withholding taxes) shall not be subject to a Control Agreement. If
      any
      Grantor seeks to establish
      a New Deposit Account, the Collateral Agent agrees (x) not to unreasonably
      withhold its consent
      to any Control Account Bank selected by such Grantor and (y) to negotiate the
      Control Agreement reasonably and in good faith.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    Nothing
      herein shall limit the Grantors’ right to transfer balances among Deposit
      Accounts where each such Deposit Account is subject to a Control
      Agreement.

    

    ARTICLE
      4.

     

    FURTHER
      ASSURANCES

    

    Each
      Grantor hereby covenants and agrees, at its own cost and expense, to execute,
      acknowledge, deliver and/or cause to be duly filed all such further agreements,
      instruments and other documents (including favorable legal opinions in
      connection with any Transaction) that may be reasonably requested by the
      Collateral Agent, and take all such further actions, that the Collateral Agent
      may from time to time reasonably request to preserve, protect and perfect the
      Security Interest granted by it and the rights and remedies created hereby,
      including the payment of any fees and taxes required in connection with its
      execution and delivery of this Guarantee and Security Agreement, the granting
      by
      it of the Security Interest and the filing of any financing statements or other
      documents in connection herewith or therewith. In addition, to the extent
      permitted by applicable law, each Grantor hereby irrevocably authorizes the
      Collateral Agent to file one or more financing or continuation statements,
      and
      amendments thereto,
      relative to all or any part of the Collateral owned or held by it or on its
      behalf without the signature
      of such Grantor and additionally agrees that a photographic or other
      reproduction of this Guarantee and Security Agreement may be filed with the
      United States Patent and Trademark Office and/or the United States Copyright
      Office, as applicable. Each Grantor hereby further irrevocably authorizes the
      Collateral Agent to file a Record or Records, including financing statements,
      in
      all jurisdictions and with all filing offices that the Collateral Agent may
      determine, in its sole and absolute discretion, are necessary, advisable or
      prudent to perfect the Security Interest granted by it and agrees that such
      financing statements may describe the Collateral owned or held by it or on
      its
      behalf in the same manner as described herein or may contain an indication
      or
      description of collateral that describes such property in any other manner
      that
      the Collateral Agent may determine, in its sole and absolute discretion,
is
      necessary, advisable or prudent to perfect the Security Interest granted by
      such
      Grantor, including describing
      such property as “all assets” or “all personal property.”

    

    ARTICLE
      5.

     

    COLLATERAL
      AGENT APPOINTED ATTORNEY-IN-FACT

    

    Each
      Grantor hereby appoints the Collateral Agent and any officer or agent thereof,
      as its true and lawful agent and attorney in fact for the purpose of carrying
      out the provisions of this Guarantee and
      Security Agreement and taking any action and executing any instrument that
      the
      Collateral Agent may
      deem
      necessary or advisable to accomplish the purposes hereof, which appointment
      is
      irrevocable and coupled with an interest, and without limiting the generality
      of
      the foregoing, the Collateral Agent shall have the right, with power of
      substitution for such Grantor and in such Grantor's name or otherwise,
for
      the
      use and benefit of the Collateral Agent and the other Secured Parties, upon
      the
      occurrence and during
      the continuance of an Event of Default, (i) to receive, endorse, assign and/or
      deliver any and all notes, acceptances, checks, drafts, money orders or other
      evidences of payment relating to the Collateral owned or held by it or on its
      behalf or any part thereof; (ii) to demand, collect, receive payment of, give
      receipt for, and give discharges and releases of, any of such Collateral; (iii)
      to sign the name of such Grantor on any invoice or bill of lading relating
      to
      any of such Collateral; (iv) to send verifications of Receivables owned or
      held
      by it or on its behalf to any Account Debtor; (v) to commence and prosecute
      any
      and
      all suits, actions or proceedings at law or in equity in any court of competent
      jurisdiction to collect
      or otherwise realize on any of the Collateral owned or held by it or on its
      behalf or to enforce any rights
      in
      respect of any of such Collateral; (vi) to settle, compromise, compound, adjust
      or defend any actions,
      suits or proceedings relating to any of such Collateral; (vii) to notify, or
      to
      require such Grantor to notify, Account Debtors and other obligors to make
      payment directly to the Collateral Agent, and (viii) to use,
      sell, assign, transfer, pledge, make any agreement with respect to or otherwise
      deal with any of such Collateral,
      and to do all other acts and things necessary to carry out the purposes of
      this
      Guarantee and Security
      Agreement, as fully and completely as though the Collateral Agent were the
      absolute owner of such
      Collateral for all purposes; provided, however, that
      nothing herein contained shall be construed as requiring
      or obligating the Collateral Agent or any other Secured Party to make any
      commitment or to make any inquiry as to the nature or sufficiency of any payment
      received by the Collateral Agent or any other
      Secured Party, or to present or file any claim or notice, or to take any action
      with respect to any of the Collateral or the moneys due or to become due in
      respect thereof or any property covered thereby, and no
      action
      taken or omitted to be taken by the Collateral Agent or any other Secured Party
      with respect to any
      of
      the Collateral shall give rise to any defense, counterclaim or offset in favor
      of such Grantor or to any claim or action against the Collateral Agent or any
      other Secured Party in the absence of the Collateral
      Agent’s or such Secured Party’s gross negligence or willful misconduct. The
      provisions of this Article
      shall in no event relieve any Grantor of any of its obligations hereunder or
      under the other Secured Transaction
      Documents with respect to any of the Collateral or impose any obligation on
      the
      Collateral Agent
      or
      any other Secured Party to proceed in any particular manner with respect to
      any
      of the Collateral, or
      in any
      way limit the exercise by the Collateral Agent or any other Secured Party of
      any
      other or further right
      that it may have on the date of this Guarantee and Security Agreement or
      hereafter, whether hereunder,
      under any other Secured Transaction Document, by law or otherwise. Any sale
      pursuant to the provisions of this paragraph shall conform to the commercially
      reasonable standards as provided in Part 6 of
      Article 9 of the UCC.

     

    
      
        
        

      

      
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    ARTICLE
      6. 

     

    REMEDIES
      UPON DEFAULT

    

    Section
      6.1 Remedies
      Generally

    

    (a)
      General
      Rights. Upon
      the
      occurrence and during the continuance of an Event
      of
      Default, each Grantor agrees to deliver each item of Collateral owned or held
      by
      it or on its behalf to the Collateral Agent on demand, and it is agreed that
      the
      Collateral Agent shall have the right to take any of or all the following
      actions at the same or different times to the extent permitted by law: (i)
      with
      respect to any Collateral consisting of Intellectual Property or Commercial
      Tort
      Claims, on demand,
      to cause the Security Interest to become an assignment, transfer and conveyance
      of any such Collateral
      by the applicable Grantors to the Collateral Agent, or, in the case of
      Intellectual Property, to license
      or sublicense, whether general, special or otherwise, and whether on an
      exclusive or non-exclusive basis,
      any such Collateral throughout the world on such terms and conditions and in
      such manner as the Collateral
      Agent shall determine (other than in violation of any then-existing licensing
      arrangements to the
      extent that waivers cannot be obtained), and (ii) with or without legal process
      and with or without prior
      notice or demand for performance, to take possession of the Collateral owned
      or
      held by it or on its behalf
      and without liability for trespass to enter any premises where such Collateral
      may be located for the purpose of taking possession of or removing such
      Collateral and, generally, to exercise any and all rights afforded to a secured
      party under the UCC or other applicable law. Without limiting the generality
      of
      the
      foregoing, each Grantor agrees that, upon the occurrence and during the
      continuance of an Event of Default,
      the Collateral Agent shall have the right, subject to the mandatory requirements
      of applicable law, to
      sell
      or otherwise dispose of any of the Collateral owned or held by or on behalf
      of
      such Grantor, at public
      or
      private sale or at any broker's board or on any securities exchange, for cash,
      upon credit or for future
      delivery as the Collateral Agent shall deem appropriate. The Collateral Agent
      shall be irrevocably authorized
      at any such sale of such Collateral constituting securities (if it deems it
      advisable to do so) to restrict
      the prospective bidders or purchasers to Persons who will represent and agree
      that they are purchasing
      such Collateral for their own account for investment and not with a view to
      the
      distribution or sale
      thereof, and upon consummation of any such sale, the Collateral Agent shall
      have
      the right to assign, transfer
      and deliver to the purchaser or purchasers thereof the Collateral so sold.
      Each
      such purchaser at any
      such
      sale shall hold the property sold absolutely, free from any claim or right
      on
      the part of the applicable
      Grantor, and such Grantor hereby waives (to the extent permitted by law) all
      rights of redemption,
      stay, valuation and appraisal which such Grantor now has or may at any time
      in
      the future have
      under any rule of law or statute now existing or hereafter enacted.

     

    
      
        
        

      

      
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    (b)
      Sale
      of Collateral. The
      Collateral Agent shall give each Grantor ten days’ written notice (which such
      Grantor agrees is reasonable notice within the meaning of Part 6 of Article
      9 of
the
      UCC)
      of the Collateral Agent’s intention to make any sale of any of the Collateral
      owned or held by or
      on
      behalf of such Grantor. Such notice, in the case of a public sale, shall state
      the time and place for such
      sale
      and, in the case of a sale at a broker’s board or on a securities exchange,
      shall state the board or exchange
      at which such sale is to be made and the day on which such Collateral will
      first
      be offered for sale
      at
      such board or exchange. Any such public sale shall be held at such time or
      times
      within ordinary business
      hours and at such place or places as the Collateral Agent may fix and state
      in
      the notice (if any) of
      such
      sale. At any such sale, the Collateral to be sold may be sold in one lot as
      an
      entirety or in separate parcels, as the Collateral Agent may (in its sole and
      absolute discretion) determine. The Collateral Agent shall
      not
      be obligated to make any sale of any Collateral if it shall determine not to
      do
      so, regardless of the
      fact
      that notice of sale of such Collateral shall have been given. The Collateral
      Agent may, without notice
      or
      publication, adjourn any public or private sale or cause the same to be
      adjourned from time to time
      by
      announcement at the time and place fixed for sale, and such sale may, without
      further notice, be made
      at
      the time and place to which the same was so adjourned. In case any sale of
      any
      of the Collateral is
      made
      on credit or for future delivery, the Collateral so sold may be retained by
      the
      Collateral Agent until the sale price is paid by the purchaser or purchasers
      thereof, but the Collateral Agent shall not incur any
      liability in case any such purchaser or purchasers shall fail to take up and
      pay
      for the Collateral so sold
      and,
      in case of any such failure, such Collateral may be sold again upon like notice.
      At any public (or,
      to
      the extent permitted by applicable law, private) sale made pursuant to this
      Section, any Secured Party
      may
      bid for or purchase, free (to the extent permitted by applicable law) from
      any
      right of redemption,
      stay, valuation or appraisal on the part of such Grantor (all said rights being
      also hereby waived and released to the extent permitted by law), any of the
      Collateral offered for sale and may make payment on account thereof by using
      any
      claim then due and payable to such Secured Party from such Grantor as a credit
      against the purchase price, and such Secured Party may, upon compliance with
      the
      terms of sale, hold, retain and dispose of such property without further
      accountability to such Grantor therefor.
      For purposes hereof, (i) a written agreement to purchase any of the Collateral
      shall be treated as a sale thereof, (ii) the Collateral Agent shall be free
      to
      carry out such sale pursuant to such agreement, and (iii)
      no
      Grantor shall be entitled to the return of any of the Collateral subject
      thereto, notwithstanding the fact that after the Collateral Agent shall have
      entered into such an agreement all Events of Default shall have
      been
      remedied and the Obligations paid in full. As an alternative to exercising
      the
      power of sale herein
      conferred upon it, the Collateral Agent may proceed by a suit or suits at law
      or
      in equity to foreclose
      upon any of the Collateral and to sell any of the Collateral pursuant to a
      judgment or decree of a court
      or
      courts having competent jurisdiction or pursuant to a proceeding by a
      court-appointed receiver. Without
      limiting the generality of the foregoing, each Grantor agrees as follows: (A)
      if
      the proceeds of any
      sale
      of the Collateral owned or held by it or on its behalf pursuant to this Article
      are insufficient to pay all the Obligations, it shall be liable for the
      resulting deficiency and the fees, charges and disbursements
      of any counsel employed by the Collateral Agent or any other Secured Party
      to
      collect such deficiency,
      (B) it hereby waives any claims against the Collateral Agent arising by reason
      of the fact that the price at which any such Collateral may have been sold
      at
      any private sale pursuant to this Article was less
      than
      the price that might have been obtained at a public sale, even if the Collateral
      Agent accepts the first
      offer received and does not offer such Collateral to more than one offeree,
      (C)
      there is no adequate remedy
      at
      law for failure by it to comply with the provisions of this Section and that
      such failure would not be adequately compensible in damages, and therefore
      agrees that its agreements in this Section may be
      specifically enforced, (D) the Collateral Agent may sell any such Collateral
      without giving any warranties
      as to such Collateral, and the Collateral Agent may specifically disclaim any
      warranties of title or the like, and (E) the Collateral Agent shall have no
      obligation to marshall any such Collateral.

     

    
      
        
        

      

      
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    Section
      6.2 Application
      of Proceeds of Sale

    

    The
      Collateral Agent shall apply the proceeds of any collection or sale of the
      Collateral, as
      well
      as any Collateral consisting of cash, as follows:

    

    FIRST, to
      the
      payment of all reasonable costs and expenses incurred by the Collateral Agent
      in
      connection with such collection or sale or otherwise in connection with
      this
      Guarantee and Security Agreement, any other Secured Transaction Document or
      any
      of
      the Obligations, including all out of pocket court costs and the reasonable
      fees
      and expenses of its agents and legal counsel, the repayment of all advances
      made
      by the Collateral
      Agent hereunder or under any other Secured Transaction Document on behalf of
      any
      Grantor and any other reasonable out-of-pocket costs or expenses incurred in
      connection with the exercise of any right or remedy hereunder or under any
      other
      Secured Transaction
      Document;

    

    SECOND,
      to the
      payment in full of the Obligations (the amounts so applied
      to be distributed among the Secured Parties pro rata in accordance with the
      amounts of the Obligations owed to them on the date of any such distribution);
      and

    

    THIRD, to
      the
      applicable Grantor, its successors or assigns, or as a court of
      competent jurisdiction may otherwise direct.

     

    
      The
        Collateral Agent shall have sole and absolute discretion as to the order
        of
        application of any such proceeds, moneys or balances in accordance with this
        Guarantee and Security Agreement. Upon
        any
        sale of the Collateral by the Collateral Agent (including pursuant to a power
        of
        sale granted by statute or under a judicial proceeding), the receipt of the
        purchase money by the Collateral Agent or of the officer making the sale
        shall
        be a sufficient discharge to the purchaser or purchasers of the Collateral
        so
sold
        and
        such purchaser or purchasers shall not be obligated to see to the application
        of
        any part of the purchase
        money paid over to the Collateral Agent or such officer or be answerable
        in any
        way for the misapplication
        thereof.

    

    
       

    

    Section
      6.3 Investment
      Property

     

    In
      view
      of the position of each Grantor in relation to the Investment Property, or
      because of
      other
      current or future circumstances, a question may arise under the Securities
      Act
      of 1933, as now or hereafter in effect, or any similar statute hereafter enacted
      analogous in purpose or effect (such Act and any
      such
      similar statute as from time to time in effect being called the “Federal
      securities laws”) with
      respect
      to any disposition of the Investment Property permitted hereunder. Each Grantor
      understands that compliance with the Federal securities laws might very strictly
      limit the course of conduct of the Collateral
      Agent if the Collateral Agent were to attempt to dispose of all or any part
      of
      the Investment Property, and might also limit the extent to which or the manner
      in which any subsequent transferee of any
      Investment Property could dispose of the same. Similarly, there may be other
      legal restrictions or limitations
      affecting the Collateral Agent in any attempt to dispose of all or part of
      the
      Investment Property
      under applicable Blue Sky or other state securities laws or similar laws
      analogous in purpose or effect.
      Each Grantor recognizes that in light of such restrictions and limitations
      the
      Collateral Agent may, with
      respect to any sale of the Investment Property, limit the purchasers to those
      who will agree, among other
      things, to acquire such Investment Property for their own account, for
      investment, and not with a view
      to
      the distribution or resale thereof. Each Grantor acknowledges and agrees that
      in
      light of such restrictions
      and limitations, the Collateral Agent, in its sole and absolute discretion,
      (i)
      may proceed to make
      such
      a sale whether or not a registration statement for the purpose of registering
      such Investment Property,
      or any part thereof, shall have been filed under the Federal securities laws
      and
      (ii) may approach and
      negotiate with a single potential purchaser to effect such sale. Each Grantor
      acknowledges and agrees
      that any such sale might result in prices and other terms less favorable to
      the
      seller than if such sale were
      a
      public sale without such restrictions. In the event of any such sale, the
      Collateral Agent shall incur no
      responsibility or liability for selling all or any part of the Investment
      Property at a price that the Collateral
      Agent, in its discretion, may in good faith deem reasonable under the
      circumstances, notwithstanding
      the possibility that a substantially higher price might have been realized
      if
      the sale were deferred
      until after registration as aforesaid or if more than a single purchaser were
      approached. The provisions
      of this Section will apply notwithstanding the existence of a public or private
      market upon which
      the
      quotations or sales prices may exceed substantially the price at which the
      Collateral Agent sells any
      such
      Investment Property.

     

    
      
        
        

      

      
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    Section
      6.4 Grant
      of License to Use Intellectual Property

    

    For
      the
      purpose of enabling the Collateral Agent to exercise rights and remedies under
      this Article, at such time as the Collateral Agent shall be lawfully entitled
      to
      exercise such rights and remedies, each Grantor hereby grants to the Collateral
      Agent an irrevocable, non exclusive license (exercisable
      without payment of royalty or other compensation to such Grantor) to use,
      license or sub license
      any of the Collateral consisting of Intellectual Property now owned or held
      or
      hereafter acquired or
      held
by or on behalf of such Grantor, and wherever the same may be located, and
      including in such license
      reasonable access to all media in which any of the licensed items may be
      recorded or stored and to all
      computer software and programs used for the compilation or printout thereof.
      The
      use of such license by the Collateral Agent shall be exercised, at the option
      of
      the Collateral Agent, upon the occurrence and during the continuation of an
      Event of Default; provided that any license, sub license or other transaction
      entered into by the Collateral Agent in accordance herewith shall be binding
      upon such Grantor notwithstanding
      any subsequent cure of an Event of Default. Any royalties and other payments
      received by
      the
      Collateral Agent shall be applied in accordance with Section 6.2.

    

    ARTICLE
      7.

     

    REIMBURSEMENT
      OF COLLATERAL AGENT

    

    Each
      Grantor agrees, jointly with the other Grantors and severally, to pay to the
      Collateral
      Agent the amount of any and all reasonable out-of-pocket expenses, including
      the
      fees, other charges
      and disbursements of counsel and of any experts or agents, that the Collateral
      Agent may incur in connection
      with (i) the administration of this Guarantee and Security Agreement relating
      to
      such Grantor or
      any of
      its property, (ii) the custody or preservation of, or the sale of, collection
      from, or other realization upon, any of the Collateral owned or held by or
      on
      behalf of such Grantor, (iii) the exercise, enforcement
      or protection of any of the rights of the Collateral Agent hereunder relating
      to
      such Grantor or any of its property, or (iv) the failure by such Grantor to
      perform or observe any of the provisions hereof.
      Without limitation of its indemnification obligations under the other Secured
      Transaction Documents,
      each of the Grantors agrees, jointly with the other Grantors and severally,
      to
      indemnify the Collateral
      Agent and each Related Party thereof (each such Person being called an
“Indemnitee”)
      against,
      and
      hold
      each Indemnitee harmless from, any and all losses, claims, damages, liabilities
      and related out-of-pocket
      expenses, including reasonable counsel fees, other charges and disbursements,
      incurred by or asserted
      against any Indemnitee arising out of, in any way connected with, or as a result
      of (a) the execution
      or delivery by such Grantor of this Guarantee and Security Agreement or any
      other Secured Transaction
      Document or any agreement or instrument contemplated hereby or thereby, or
      the
      performance by such Grantor of its obligations under the Secured Transaction
      Documents and the other transactions
      contemplated thereby or (b) any claim, litigation, investigation or proceeding
      relating to any of
      the
      foregoing, whether or not any Indemnitee is a party thereto, provided that
      such
      indemnity shall not, as
      to any
      Indemnitee, be available to the extent that such losses, claims, damages,
      liabilities or related expenses
      are determined by judgment of a court of competent jurisdiction to have
      primarily resulted from the
      gross
      negligence or willful misconduct of such Indemnitee. Any amounts payable as
      provided hereunder
      shall be additional Obligations secured hereby and by the other Secured
      Transaction Documents.
      The provisions of this Section shall remain operative and in full force and
      effect regardless of
      the
      termination of this Guarantee and Security Agreement or any other Secured
      Transaction Document, the consummation of the transactions contemplated hereby
      or thereby, the repayment of any of the Obligations,
      the invalidity or unenforceability of any term or provision of this Guarantee
      and Security Agreement
      or any other Secured Transaction Document or any investigation made by or on
      behalf of the Collateral
      Agent or any other Secured Party. All amounts due under this Section shall
      be
      payable within ten
      days
      of written demand therefor and shall bear interest at the then prevailing rate
      under the Secured Notes.

     

    
      
        
        

      

      
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    ARTICLE
      8.

     

    WAIVERS;
      AMENDMENTS

    

    No
      failure or delay of the Collateral Agent in exercising any power or right
      hereunder shall
      operate as a waiver thereof, nor shall any single or partial exercise of any
      such right or power, or any abandonment
      or discontinuance of steps to enforce such a right or power, preclude any other
      or further exercise thereof or the exercise of any other right or power. The
      rights and remedies of the Collateral Agent and the other Secured Parties
      hereunder and under the other Secured Transaction Documents are cumulative
      and are not exclusive of any rights or remedies that they would otherwise have.
      No waiver of any
      provision of this Guarantee and Security Agreement or any other Secured
      Transaction Document or consent
      to any departure by any Grantor therefrom shall in any event be effective unless
      the same shall be permitted
      by this Section, and then such waiver or consent shall be effective only in
      the
      specific instance and
      for
      the purpose for which given. No notice or demand on any Grantor in any case
      shall entitle such Grantor to any other or further notice or demand in similar
      or other circumstances. Neither this Guarantee and
      Security Agreement nor any provision hereof may be waived, amended, supplemented
      or otherwise modified,
      or any departure therefrom consented to, except pursuant to an agreement or
      agreements in writing
      entered into by the Grantors and Investor holding more than a majority of the
      aggregate principal amount
      of
      the Senior Secured Notes then outstanding, provided that no such agreement
      shall
      waive, amend,
      supplement or otherwise modify, or consent to a departure to, the rights or
      duties of the Collateral Agent
      hereunder without the prior written consent of the Collateral
      Agent.

    

    ARTICLE
      9.

     

    SECURITY
      INTEREST ABSOLUTE

    

    All
      rights of the Collateral Agent hereunder, the Security Interest and all
      obligations of each Grantor hereunder shall be absolute and unconditional
      irrespective of (i) any lack of validity or enforceability of the Securities
      Purchase Agreement, any other Secured Transaction Document, any agreement
      with respect to any of the Obligations, or any other agreement or instrument
      relating to any of the
      foregoing, (ii) any change in the time, manner or place of payment of, or in
      any
      other term of, all or any
      of
      the Obligations, or any other waiver, amendment, supplement or other
      modification of, or any consent
      to any departure from, the Securities Purchase Agreement, any other Secured
      Transaction Document or any other agreement or instrument relating to any of
      the
      foregoing, (iii) any exchange, release or non-perfection of any Lien on any
      other collateral, or any release or waiver, amendment, supplement or other
      modification of, or consent under, or departure from, any guarantee, securing
      or
      guaranteeing all or any of the Obligations, or (iv) any other circumstance
      that
      might otherwise constitute a defense available to, or a discharge of, any
      Grantor in respect of the Obligations or in respect of this Guarantee and
      Security Agreement or any other Secured Transaction Document.

     

    
      
        
        

      

      
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    ARTICLE
      10.

     

    TERMINATION;
      RELEASE

    

    This
      Guarantee and Security Agreement and the Security Interest shall terminate
      and
      be of no further force and effect when the Obligations shall have been finally
      and indefeasibly paid in full. Upon (i) any sale, transfer or other disposition
      permitted by the Secured Transaction Documents (other than
      any
      sale, transfer or other disposition of any Collateral that would, immediately
      after giving effect thereto,
      continue to be Collateral but for the release of the Security Interest therein
      pursuant to this clause) or (ii) the effectiveness of any written consent to
      the
      release of the Security Interest in any Collateral, the Security Interest in
      such Collateral shall be automatically released. In addition, if any of the
      Pledged Equity Interests in any Subsidiary are sold, transferred or otherwise
      disposed of pursuant to a transaction permitted by the Secured Transaction
      Documents and, immediately after giving effect thereto, such Subsidiary or
      subsidiary, as applicable, would no longer be a Subsidiary or a subsidiary,
      as
      applicable, then the obligations of such Subsidiary or subsidiary, as
      applicable, under this Guarantee and Security Agreement and the Security
      Interest in the Collateral owned or held by or on behalf of such Subsidiary
      or
      such subsidiary, as applicable, shall be automatically released. In addition,
      if
      the Company enters into a Qualified Receivables Facility, that portion of the
      Receivables subject to the Qualified Receivables Facility shall be automatically
      released from Collateral and no longer subject to Section 3.3(b) of this
Guarantee
      and Security Agreement; provided, however, should
      such a Qualified Receivables Facility terminate, the Receivables subject thereto
      shall be Collateral and shall thereafter be subject to Section 3.3(b) of this
      Guarantee and Security Agreement. In connection with any termination or release
      pursuant to this Section, the Collateral Agent shall execute and deliver to
      the
      applicable Grantor, and hereby authorizes
      the filing of, at such Grantor's cost and expense, all Uniform Commercial Code
      termination statements
      and similar documents that such Grantor may reasonably request to evidence
      such
      termination or release. Any execution and delivery of documents pursuant to
      this
      Article shall be without recourse to or warranty by the Collateral Agent or
      any
      other Secured Party.

    

    ARTICLE
      11.

     

    ADDITIONAL
      SUBSIDIARY GUARANTORS AND GRANTORS

    

    Upon
      execution and delivery after the date hereof by the Collateral Agent and a
      Subsidiary
      of a Supplement, such Subsidiary shall become a Subsidiary Guarantor and
      Grantor, as applicable,
      hereunder with the same force and effect as of the date of such execution as
      if
      originally named as a Subsidiary Guarantor and a Grantor, as applicable, herein
      (each an “Additional
      Subsidiary Guarantor
      and Grantor”). The
      execution and delivery of any Supplement shall not require the consent of any
      other Grantor hereunder. The rights and obligations of each Grantor hereunder
      and each Grantor and other party (other than an Investor) under the Secured
      Transaction Documents shall remain in full force and effect notwithstanding
      the
      addition of any Additional Subsidiary Guarantor and Grantor as a party to this
      Guarantee and Security Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      12.

     

    COLLATERAL
      AGENT

    

    Each
      Investor hereby irrevocably appoints the Collateral Agent as its agent and
      authorizes
      the Collateral Agent to take such actions on its behalf and to exercise such
      powers as are delegated to the Collateral Agent by the terms hereof, together
      with such actions and powers as are reasonably
      incidental thereto.

    

    The
      Person serving as the Collateral Agent hereunder shall have the same rights
      and
      powers in its capacity as an Investor as any other investor and may exercise
      the
      same as though it were not
      the
      Collateral Agent, and such Person and its Affiliates may accept deposits from,
      lend money to and generally
      engage in any kind of business with the Company or any Subsidiary or other
      Affiliate thereof as if it were not the Collateral Agent hereunder.

    

    The
      Collateral Agent shall not have any duties or obligations except those expressly
      set forth
      herein. Without limiting the generality of the foregoing, (i) the Collateral
      Agent shall not be subject to
      any
      fiduciary or other implied duties, regardless of whether an Event of Default
      has
      occurred and is continuing,
      (ii) the Collateral Agent shall not have any duty to take any discretionary
      action or exercise any
      discretionary powers, except discretionary rights and powers expressly
      contemplated by this Agreement,
      and (iii) except as expressly set forth herein, the Collateral Agent shall
      not
      have any duty to disclose, and shall not be liable for the failure to disclose,
      any information relating to the Company or any of
      the
      Subsidiaries that is communicated to or obtained by the Person serving as
      Collateral Agent or any of
      its
      Affiliates in any capacity. The Collateral Agent shall not be liable for any
      action taken or not taken by it in the absence of its own gross negligence
      or
      willful misconduct. The Collateral Agent shall be deemed
      not to have knowledge of any Event of Default unless and until written notice
      thereof is given to the
      Collateral Agent by the Company or an Investor (and, promptly after its receipt
      of any such notice, it shall
      give each Investor and the Company notice thereof), and the Collateral Agent
      shall not be
      responsible
      for or have any duty to ascertain or inquire into (a) any statement, warranty
      or
      representation made
      in
      or in connection with any Secured Transaction Document, (b) the contents of
      any
      certificate, report
      or
      other document delivered thereunder or in connection therewith, (c) the
      performance or observance
      of any of the covenants, agreements or other terms or conditions set forth
      therein, (d) the validity,
      enforceability, effectiveness or genuineness thereof or any other agreement,
      instrument or other document
      or (e) the satisfaction of any condition set forth in herein, other than to
      confirm receipt of items expressly
      required to be delivered to the Collateral Agent.

    

    The
      Collateral Agent shall be entitled to rely upon, and shall not incur any
      liability for relying
      upon, any notice, request, certificate, consent, statement, instrument, document
      or other writing reasonably believed by it to be genuine and to have been signed
      or sent by the proper Person. The Collateral
      Agent also may rely upon any statement made to it orally or by telephone and
      reasonably believed by it to be made by the proper Person, and shall not incur
      any liability for relying thereon. The Collateral
      Agent may consult with legal counsel (who may be counsel for the Grantors),
      independent accountants
      and other experts selected by it, and shall not be liable for any action taken
      or not taken by it in
      accordance with the advice of any such counsel, accountants or
      experts.

    

    The
      Collateral Agent may perform any and all its duties and exercise its rights
      and
powers
      by
      or through any one or more sub agents appointed by the Collateral Agent,
      provided that no such
      delegation shall serve as a release of the Collateral Agent or waiver by the
      Company of any rights hereunder.
      The Collateral Agent and any such sub agent may perform any and all its duties
      and exercise its rights and powers through their respective affiliates. The
      exculpatory provisions of the preceding paragraphs
      shall apply to any such sub agent and to the affiliates of the Collateral Agent
      and any such sub agent,
      and shall apply to their respective activities acting for the Collateral
      Agent.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    

    Subject
      to the appointment and acceptance of a successor Collateral Agent as provided
      in
this
      paragraph, the Collateral Agent may resign at any time by notifying the Investor
      and the Company. Upon
      any
      such resignation, the Investor holding a majority of the principal amount of
      the
      Senior Secured Notes
      shall have the right to appoint a successor. If no successor shall have been
      so
      appointed by the Investor
      and shall have accepted such appointment within 30 days after the retiring
      Collateral Agent gives notice
      of
      its resignation, then the retiring Collateral Agent may, on behalf of the
      Investor holding a majority
      of the principal amount of the Senior Secured Notes, appoint a successor
      Collateral Agent which shall
      be
      a bank with an office in New York, New York, or an affiliate of any such bank.
      Upon the acceptance of its appointment as Collateral Agent hereunder by a
      successor, such successor shall succeed to
      and
      become vested with all the rights, powers, privileges and duties of the retiring
      Collateral Agent, and
      the
      retiring Collateral Agent shall be discharged from its duties and obligations
      hereunder. After the Collateral
      Agent's resignation hereunder, the provisions of this Article shall continue
      in
      effect for the benefit
      of such retiring Collateral Agent, its sub agents and their respective
      affiliates in respect of any actions
      taken or omitted to be taken by any of them while it was acting as Collateral
      Agent.

    

    Each
      Investor acknowledges that it has, independently and without reliance upon
      the
      Collateral Agent or any other Investor and based on such documents and
      information as it has deemed appropriate,
      made its own credit analysis and decision to enter into the Secured Transaction
      Documents. Each
      Investor also acknowledges that it will, independently and without reliance
      upon
      the Collateral Agent
      or
      any other-Investor and based on such documents and information as it shall
      from
      time to time deem
      appropriate, continue to make its own decisions in taking or not taking action
      under or based upon any Secured Transaction Document, any related agreement
      or
      any document furnished thereunder.

     

    ARTICLE
      13.

     

    NOTICES

    

    All
      notices, requests, demands and other communications to any party hereunder
      shall
      be in
      writing (including facsimile or similar writing) and shall be given to such
      party at its address or facsimile
      number set forth below or such other address or facsimile number as such party
      may hereafter specify
      by notice to the other parties listed below:

    

    (a)
      If
      to the
      Company:

    

       
      Twistbox Entertainment, Inc.

    14242
      Ventura Blvd., Third Floor 

    Sherman
      Oaks, CA 91423 

    Telephone:
      (818)
      301-6200 

    Facsimile:
      (818)
      708-0598 

    Attention:
      Chief
      Executive Officer 

    Attention:
      General
      Counsel

    

    with
      a
      copy to:

    

    Proskauer
      Rose LLP

    1585
      Broadway

    New
      York,
      New York 10036 

    Telephone:
      (212)
      969-3640

    Facsimile:
      (212)
      969-2900 

    Attention:
      Paul
      Rachlin, Esq.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

    (b)
      If
      to a
      Subsidiary Guarantor: At its address for notices set forth on Schedule
      I.

     

    (c) If
      to the
      Collateral Agent:

    

    ValueAct
      SmallCap Master Fund, L.P. 

    435
      Pacific Avenue, 4th Floor 

    San
      Francisco, CA 94133 

    Telephone:
      (415) 249-1237 

    Facsimile:
      (415)
      249-1242 

    Attention:
      Jimmy
      Price

    

    with
      a
      copy to:

    

    ValueAct
      SmallCap Master Fund, L.P. 

    435
      Pacific Avenue, 4th Floor 

    San
      Francisco, CA 94133 

    Telephone:
      (415) 249-1237 

    Facsimile:
      (415)
      249-1242 

    Attention:
      Jimmy
      Price

    

    and

    

    Skadden,
      Arps, Slate, Meagher & Flom LLP 

    525
      University Avenue, Suite 1100 

    Palo
      Alto, CA 94301 

    Facsimile:
      (650)
      470-4570 

    Telephone:
      (650) 470-4500 

    Attention:
      Thomas
      Ivey, Esq.

    Each
      such
      notice, request or other communication shall be effective (i) upon receipt
      (provided, however, that
      notices received on a Saturday, Sunday or legal holiday or after 6:30 p.m.
      (New
      York City time) on any other day will be deemed to have been received on the
      next Business Day), if
      given
      by facsimile transmission, (ii) the Business Day following the date of delivery
      with a nationally recognized
      overnight courier service or (iii) if given by any other means, when delivered
      at the address specified
      in this Article 13.

    

    ARTICLE
      14.

     

    BINDING
      EFFECT; SEVERAL AGREEMENT; ASSIGNMENTS

    

    Whenever
      in this Guarantee and Security Agreement any of the parties hereto is referred
      to, such reference shall be deemed to include the successors and permitted
      assigns of such party, and all covenants,
      promises and agreements by or on behalf of any Grantor that are contained in
      this Guarantee and
      Security Agreement shall bind and inure to the benefit of each party hereto
      and
      its successors and permitted
      assigns. This Guarantee and Security Agreement shall become effective as to
      any
      Grantor when
      a
      counterpart hereof executed on behalf of such Grantor shall have been delivered
      to the Collateral Agent and a counterpart hereof shall have been executed on
      behalf of the Collateral Agent, and thereafter shall
      be
      binding upon such Grantor and the Collateral Agent and their respective
      successors and permitted assigns,
      and shall inure to the benefit of such Grantor, the Collateral Agent and the
      other Secured Parties, and their respective successors and permitted assigns,
      except that no Grantor shall have the right to assign its
      rights or obligations hereunder or any interest herein or in any of the
      Collateral (and any such attempted
      assignment shall be void), except as expressly contemplated by this Guarantee
      and Security Agreement
      or the other Secured Transaction Documents. This Guarantee and Security
      Agreement shall be construed as a separate agreement with respect to each of
      the
      Grantors and may be amended, supplemented, waived or otherwise modified or
      released with respect to any Grantor without the approval of
      any
      other Grantor and without affecting the obligations of any other Grantor
      hereunder.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    ARTICLE
      15.

     

    SURVIVAL
      OF AGREEMENT; SEVERABILITY

    

    All
      covenants, agreements, representations and warranties made by the Grantors
      herein and
      in
      the certificates or other instruments prepared or delivered in connection with
      or pursuant to this Guarantee
      and Security Agreement or any other Secured Transaction Document shall be
      considered to have
      been
      relied upon by the Collateral Agent and the other Secured Parties and shall
      survive the execution
      and delivery of any Secured Transaction Document and the making of any Loan,
      regardless of any
      investigation made by the Secured Parties or on their behalf, and shall continue
      in full force and effect
      until this Guarantee and Security Agreement shall terminate. In the event any
      one or more of the provisions
      contained in this Guarantee and Security Agreement or in any other Secured
      Transaction Document
      should be held invalid, illegal or unenforceable in any respect, the validity,
      legality and enforceability
      of the remaining provisions contained herein or therein shall not in any way
      be
      affected or impaired thereby (it being understood that the invalidity of a
      particular provision in a particular jurisdiction
      shall not in and of itself affect the validity of such provision in any other
      jurisdiction). 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.

    

    ARTICLE
      16.

     

    GOVERNING
      LAW

    

    THIS
      GUARANTEE AND SECURITY AGREEMENT SHALL BE GOVERNED BY, AND
      CONSTRUED
      IN
ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NEW YORK. THE LAWS
      OF
      THE FEDERAL REPUBLIC OF GERMANY SHALL APPLY ONLY TO THE EXTENT SUCH APPLICATION
      IS MANDATORY PURSUANT TO THE PRINCIPLES OF INTERNATIONAL PRIVATE
      LAW (CONFLICT OF LAWS).

    

    ARTICLE
      17.

     

    COUNTERPARTS

    

    This
      Guarantee and Security Agreement may be executed in counterparts (and by
different
      parties hereto on different counterparts), each of which shall constitute an
      original, but all of which,
      when taken together, shall constitute but one contract (subject to Article
      14),
      and shall become effective
      as provided in Article 14. Delivery of an executed counterpart of this Guarantee
      and Security Agreement
      by facsimile transmission shall be as effective as delivery of a manually
      executed counterpart of
      this
      Guarantee and Security Agreement.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    ARTICLE
      18.

     

    HEADINGS

    

    Article
      and Section headings and the Table of Contents used herein are for convenience
      of
      reference only, are not part of this Guarantee and Security Agreement and shall
      not affect the construction
      of, or be taken into consideration in interpreting, this Guarantee and Security
      Agreement.

    

    ARTICLE
      19.

     

    JURISDICTION;
      VENUE; CONSENT TO SERVICE OF PROCESS

    

    EACH
      OF
      THE GRANTORS HEREBY IRREVOCABLY AND UNCONDITIONALLY
      SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION
      OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN
      NEW
      YORK
      COUNTY AND OF THE UNITED STATES' DISTRICT COURT FOR THE SOUTHERN DISTRICT
      OF NEW YORK,
      AND
      ANY APPELLATE COURT FROM ANY THEREOF, IN
      ANY
      ACTION
      OR
      PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER COLLATERAL
      DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT,
      AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
      AGREES THAT ALL CLAIMS IN RESPECT
      OF ANY SUCH ACTION OR PROCEEDING
      MAY BE HEARD AND DETERMINED
      IN
      SUCH
      NEW
      YORK STATE OR, TO THE EXTENT
      PERMITTED BY LAW, IN SUCH
      FEDERAL COURT. EACH OF THE PARTIES HERETO 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. NOTHING IN
      THIS
      AGREEMENT
      SHALL AFFECT ANY RIGHT THAT
      THE
      SECURED PARTIES MAY OTHERWISE HAVE
      TO
      BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST
      THE COMPANY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

    

    EACH
      OF
      THE GRANTORS 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 GUARANTEE AND SECURITY AGREEMENT OR ANY OTHER SECURED TRANSACTION
      DOCUMENT IN
      ANY
      COURT
      REFERRED TO IN
      THE
      PRECEDING PARAGRAPH (b) OF THIS SECTION. EACH OF THE PARTIES HERETO 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.

    

    EACH
      PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN
      THE
      MANNER PROVIDED FOR NOTICES IN ARTICLE
      13. NOTHING IN
      THIS
      AGREEMENT WILL
      AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN
      ANY
      OTHER MANNER PERMITTED BY LAW.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    ARTICLE
      20.

     

    WAIVER
      OF
      JURY TRIAL

    

    EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
      BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
      ANY
      LEGAL
      PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
      GUARANTEE AND SECURITY AGREEMENT OR ANY OTHER SECURED TRANSACTION DOCUMENTS
      OR
      THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED
      ON
      CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
      REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
      REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN
      THE
      EVENT
      OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
      THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
      GUARANTEE AND SECURITY AGREEMENT AND THE OTHER SECURED TRANSACTION
      DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
      IN THIS
      SECTION.

     

    [Signature
      Pages Follow]

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Guarantee and
      Security Agreement
      as of the day and year first above written.

     

    
      	 	 	 
	 	
              TWISTBOX
                ENTERTAINMENT, INC.

            
	 
 	 
 	 
 
	
            	By:  	
              /s/
                IAN AARON

            
	 	
              
Name:
              IAN AARON
	 	Title:
              PRES. / CEO

    

     

    
      	 	 	 
	 	FOREIGN SUBSIDIARIES 
	 	 
	 	TWISTBOX GAMES LTD. & CO. KG
	 
 	 
 	 
 
	
            	By:  	
              
                /s/
                  IAN AARON

              

            
	 	
              

              Name: IAN
                AARON

              Title:
                PRES. / CEO

            

    

    

    
      	 	 	 
	 	DOMESTIC SUBSIDIARIES 
	 	 
	 	WAAT MEDIA CORP.
	 
 	 
 	 
 
	
            	By:  	
              
                /s/
                  IAN AARON 

              

            
	 	
              

              Name:
                IAN AARON

              Title:
                PRES. / CEO

            

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    VALUEACT
      SMALLCAP MASTER FUND, L.P.,
      

      as
        Collateral Agent

    

    
      	 	 	 	 
	By Its General Partner,
              VA SmallCap
              Partners, 	 	 	 
	
            	 	 	 
	  	 	 	 
	By:	/s/
              DAVID
              LOCKWOOD	 	 	
            
	 	
              

              Name:
                DAVID
                LOCKWOOD

              Title: MANAGING
                MEMBER

            	 	 	
            

    

     

    VALUEACT
      SMALLCAP MASTER FUND, L.P., 
      

    as
      Investor

    

    
      	By
              Its General
              Partner, VA SmallCap Partners,	 	 	 
	 	 	 	 
	 	 	 	 
	By:	/s/
              DAVID
              LOCKWOOD	 	 	
            
	 	
              

              Name:
                DAVID LOCKWOOD

              Title:
                MANAGING MEMBERUnassociated Document

     

    CONTROL
      AGREEMENT

     

    July
      30,
      2007

     

    East
      West
      Bank 

    9300
      Flair Drive

    El
      Monte,
      CA 91731

     

    Ladies
      and Gentlemen:

     

    The
      undersigned, WAAT Media Corp. (the “Grantor”)
      has
      entered into a Guarantee and Security Agreement, dated as of July 30, 2007
      (as
      the same may be amended, restated, supplemented or otherwise modified from
      time
      to time, the “Guarantee
      and Security Agreement”),
      among
      Twistbox Entertainment, Inc. (the “Company”),
      each
      of
      the Subsidiaries of the Company party thereto and ValueAct SmallCap Master
      Fund,
      L.P., as Collateral Agent for the benefit of the Secured Parties referred to
      therein (in such capacity, the “Collateral
      Agent”)
      as
      required by (i) that certain Securities Purchase Agreement, dated as of July
      30,
      2007 (as the same may be amended, restated, supplemented or otherwise modified
      from time to time, the “Securities
      Purchase Agreement”),
      among
      the
      Company and ValueAct SmallCap Master Fund, L.P. (the “Investor”),
      and
      (ii)
      the Senior Secured Note, dated as of July 30 2007, among the Company and the
      Investor (as the same may be amended, restated, supplemented or otherwise
      modified from time to time, the “Senior
      Secured Note”).

     

    Pursuant
      to the Guarantee and Security Agreement and related documents, the Grantor
      has
      granted to the Collateral Agent, for the benefit of the Secured Parties (as
      defined therein), a security interest in the accounts set forth on Schedule
      I
      hereto (individually the “Collateral
      Account”,
      together
      the “Collateral
      Accounts”)
      and
      all
      present and future Assets in the Collateral Account.

     

    1.
      Instructions
      of the Grantor.
      The
      Grantor hereby instructs you (the “Control
      Account Bank”)
      to,
      and
      you hereby agree that you will:

     

    (a)
      maintain the Collateral Account, as “Collateral Account No.: _______ - Twistbox
      Entertainment, Inc. Collateral Account”;

     

    (b)
      hold
      in the Collateral Account the assets, including all cash and other financial
      assets and property and rights now or hereafter received in such Collateral
      Account (collectively the “Assets”);

     

    (c)
      provide to the Collateral Agent, with a duplicate copy to the Grantor, a monthly
      statement of Assets including a confirmation statement of each transaction
      effected in the Collateral Account; and

     

    (d)
      honor
      only the written instructions or entitlement orders in regard to or in
      connection with the Collateral Account given by the Collateral Agent, except
      that until such time as the Collateral Agent gives a written notice to the
      Control Account Bank substantially in the form of Annex 1 hereto (a
“Event
      of Default Notice”)
      that
      the
      Grantor’s rights under this Control Account Agreement (the “Control
      Account Agreement”)
      have
      been
      terminated, the Grantor may request the withdrawal of, or transfer of, Assets
      from any Collateral Account (each a “Withdrawal
      Request”),
      and
      the
      Control Account Bank shall honor such Withdrawal Requests. The Collateral Agent
      agrees with the Grantor that it shall not give (i) instructions or entitlement
      orders in regard to or in connection with the Collateral Account or (ii) an
      Event of Default Notice to the Control Account Bank unless, in each case, an
      Event of Default has occurred and is continuing under the Senior Secured Note.
      The Control Account Bank shall be entitled to rely and shall be fully protected
      in relying on the due authorization of any such written notice without inquiry.
      At the time the Collateral Agent gives an Event of Default Notice to the Control
      Account Bank it shall deliver a copy of such Event of Default Notice to the
      Grantor.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.
      Agreements
      of the Control Account Bank.

     

    (a)
      By
      its signature below, the Control Account Bank agrees to comply with the written
      entitlement orders and instructions of the Collateral Agent directing transfer
      of the Assets relating to the Collateral Account (including any instructions
      with respect to transfers and withdrawals of cash or other of the Assets)
      without the consent of the Grantor or any other person (it being understood
      and
      agreed by the Grantor that the Control Account Bank shall have no duty or
      obligation whatsoever of any kind or character to have knowledge of the terms
      of
      the Guarantee and Security Agreement or the Securities Purchase Agreement or
      to
      determine whether or not an Event of Default exists thereunder). The Grantor
      hereby agrees to indemnify and hold harmless the Control Account Bank, its
      affiliates, officers and employees from and against any and all claims, causes
      of action, liabilities, lawsuits, demands and/or damages, including any and
      all
      court costs and reasonable attorney’s fees, that may result by reason of the
      Control Account Bank complying with such instructions of the Collateral Agent.
      In the event that the Control Account Bank is sued or becomes involved in
      litigation as a result of complying with the above stated written instructions,
      the Grantor and the Collateral Agent agree that the Control Account Bank shall
      be entitled to charge all costs and fees it incurs in connection with such
      litigation to the Assets in the Collateral Account and withdraw such sums as
      the
      costs and charges accrue.

     

    (b)
      Except with respect to the obligations and duties as set forth herein, this
      Control Account Agreement shall not impose or create any obligations or duties
      upon the Control Account Bank greater than or in addition to the customary
      and
      usual obligations and duties of the Control Account Bank to the
      Grantor.

     

    (c)
      During the term of this Control Account Agreement, the Control Account Bank
      agrees that, except for Liens resulting from customary, fees, or charges based
      upon transactions in the Collateral Account, it subordinates in favor of the
      Collateral Agent any security interest, lien or right of setoff the Control
      Account Bank may have. The Control Account Bank acknowledges that it has not
      received notice of any other security interest in the Collateral Account or
      the
      Assets. In the event any such notice is received, the Control Account Bank
      will
      promptly notify the Collateral Agent.

     

    3.
      Binding
      Agreement.
      This
      Control Account Agreement shall be binding upon and inure to the benefit of
      the
      parties hereto and their respective successors and permitted assigns and it
      and
      the rights and obligations of the parties hereto shall be governed by, and
      construed and interpreted in accordance with, and the law of the Control Account
      Bank’s jurisdiction for the purposes of Sections 9-301, 9-304 and 9-307 of the
      UCC shall be, the law of the State of New York.

     

    4.
      Control.
      The
      Grantor, Collateral Agent and Control Account Bank are entering into this
      Control Account Agreement to provide for the Collateral Agent’s control of the
      Assets and to confirm the first and exclusive priority of the Collateral Agent’s
      security interest in the Assets. The Control Account Bank agrees to promptly
      make and thereafter maintain all necessary entries or notations in its books
      and
      records to reflect the Collateral Agent’s security interest in the
      Assets.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.
      Severability.
      If any
      term or provision of this Control Account Agreement is determined to be invalid
      or unenforceable, the remainder of this Control Account Agreement shall be
      construed in all respects as if the invalid or unenforceable term or provision
      were omitted. This Control Account Agreement may not be altered or amended
      in
      any manner without the express written consent of the Grantor, the Collateral
      Agent and the Control Account Bank. This Control Account Agreement may be
      executed in any number of counterparts, all of which shall constitute one
      original agreement.

     

    6.
      Termination.
      This
      Control Account Agreement shall be terminated upon the earlier of (i) thirty
      (30) days following the date of the Control Account Bank’s delivery of written
      notice to the Grantor and the Collateral Agent or (ii) written notice by the
      Collateral Agent to the Control Account Bank and the Grantor. The Collateral
      Agent shall deliver such notice promptly upon the termination of the Collateral
      Agent’s security interest in the Assets.

     

    7.
      Miscellaneous.

     

    (a)
      The
      Grantor acknowledges that this Control Account Agreement supplements any
      existing agreements of the Grantor with the Control Account Bank and, except
      as
      expressly provided herein, is in no way intended to abridge any rights that
      the
      Control Account Bank might otherwise have.

     

    (b)
      Any
      action arising out of or relating to this Control Account Agreement shall be
      litigated in, and only in, courts located in New York City, New York, Borough
      of
      Manhattan, and the parties hereby submit to the exclusive jurisdiction of such
      courts and agree that they are a convenient forum. Each party hereby waives
      the
      right to trial by jury in any action arising out of or relating to this Control
      Account Agreement.

     

    (c)
      This
      Control Account Agreement may be executed in any number of counterparts and
      by
      different parties hereto in separate counterparts, each of which when so
      executed shall be deemed to be an original and all of which when taken together
      shall constitute one and the same agreement. Delivery of an executed counterpart
      of a signature page to this Control Account Agreement by telecopier shall be
      effective as delivery of a manually executed counterpart of this Control Account
      Agreement.

     

    (d)
      This
      Control Account Agreement supersedes all prior agreements, oral or written,
      with
      respect to the subject matter hereof. There are no third party beneficiaries
      to
      this Control Account Agreement, other than as specifically referred to
      herein.

     

    (e)
      This
      Control Account Agreement shall be governed by, and construed in accordance
      with, the law of the state of New York.

     

    (f)
      Upon
      acceptance of this Control Account Agreement, it will be the valid and binding
      obligation of the Grantor, the Collateral Agent, and you, in accordance with
      its
      terms.

     

    [Remainder
      of Page is Intentionally Blank]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              Very
                truly yours,

            
	 	 	 
	 	 	
              TWISTBOX
                ENTERTAINMENT, INC.

            
	 	 	
              By:

            	
               

              /s/
                Ian Aaron

            
	 	 	
              Name:

            	
              IAN
                AARON

            
	 	 	
              Title:

            	
              PRES.
                /CEO

            

    

    

    
      	 	 	
              VALUEACT
                SMALLCAP MASTER FUND, L.P.,

            
	 	 	
              as
                Collateral Agent

            
	 	 	 
	 	 	
              By:

            	 /s/
              David Lockwood
	 	 	
              Name:

            	David
              Lockwood
	 	 	
              Title:

            	 Managing
              Member

    

     

    Acknowledged
      and agreed to as of the date first above written:

    

    
      	
              EAST
                WEST BANK

            	 	 	 
	 	 	 	 
	
              By:

            	/s/
              Phillip Leung	 	
               

            	 
	 	
              Phillip
                Leung, SVP

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]