Document:

<PAGE>

Exhibit 10.7

                               SECURITY AGREEMENT

         SECURITY AGREEMENT, dated as of December 28, 2000, between Digital
Descriptor Systems, Inc., a Delaware corporation ("Digital"), and the secured
parties signatory hereto and their respective endorsees, transferees and assigns
(Collectively, the "Secured Party").

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

         WHEREAS, pursuant to a Secured Convertible Debenture Purchase
Agreement, dated the date hereof between Digital and the Secured Party (the
"Purchase Agreement"), Digital has agreed to issue to the Secured Party and the
Secured Party has agreed to purchase from Digital certain of Digital's 12%
Secured Convertible Debentures, due one year from the date of issue (the
"Debentures"), which are convertible into shares of Digital's Common Stock, $
0.001 par value (the "Common Stock"). In connection therewith, Digital shall
issue the Secured Party a certain Common Stock purchase warrant dated as of the
date hereof to purchase the number of shares of Common Stock indicated below
each Secured Party's name on the Purchase Agreement (the "Warrant"); and

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

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

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

             (a) "Collateral" means the collateral in which the Secured Party is
granted a security interest by this Agreement and which shall include the
following, whether presently owned or existing or hereafter acquired or coming
into existence, and all additions and accessions thereto and all substitutions
and replacements thereof, and all proceeds, products and accounts thereof,

<PAGE>

including, without limitation, all proceeds from the sale or transfer of the
Collateral and of insurance covering the same and of any tort claims in
connection therewith:

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

                 (ii) All Inventory of the Company; and

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

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

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

             (b) "Company" shall mean, collectively, Digital and all of the
subsidiaries of Digital, a list of which is contained in Schedule A, attached
hereto.

             (c) "Obligations" means all of the Company's obligations under this
Agreement and the Debentures, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated

<PAGE>

or unliquidated, whether or not jointly owed with others, and whether or not
from time to time decreased or extinguished and later decreased, created or
incurred, and all or any portion of such obligations or liabilities that are
paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from the Secured Party as a preference, fraudulent
transfer or otherwise as such obligations may be amended, supplemented,
converted, extended or modified from time to time.

             (d) "UCC" means the Uniform Commercial Code, as currently in effect
in the Commonwealth of Pennsylvania.

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

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

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

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

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

                                      -3-
<PAGE>

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

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

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

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

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

                                      -4-
<PAGE>

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

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

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

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

             (m) The Company shall promptly execute and deliver to the Secured
Party such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take
such further action as the Secured Party may from time to time request and may
in its sole discretion deem necessary to perfect, protect or enforce its
security interest in the Collateral including, without limitation, the execution
and delivery of a separate security agreement with respect to the Company's
intellectual property ("Intellectual Property Security Agreement") in which the
Secured Party has been granted a security interest hereunder, substantially in a
form acceptable to the Secured Party, which Intellectual Property Security
Agreement, other than as stated therein, shall be subject to all of the terms
and conditions hereof.

                                      -5-
<PAGE>

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

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

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

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

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

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

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

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

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

             (d) Any breach of, or default under, the Warrants.

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

                                      -6-
<PAGE>

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

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

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

         7.  Applications of Proceeds. The proceeds of any such sale, lease or
other disposition of the Collateral hereunder shall be applied first, to the
expenses of retaking, holding, storing, processing and preparing for sale,
selling, and the like (including, without limitation, any taxes, fees and other
costs incurred in connection therewith) of the Collateral, to the reasonable
attorneys' fees and expenses incurred by the Secured Party in enforcing its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral, and then to satisfaction of the Obligations, and to the payment of
any other amounts required by applicable law, after which the Secured Party
shall pay to the Company any surplus proceeds. If, upon the sale, license or
other disposition of the Collateral, the proceeds thereof are insufficient to
pay all amounts to which the Secured Party is legally entitled, the Company will
be liable for the deficiency, together with interest thereon, at the rate of 15%
per annum (the "Default Rate"), and the reasonable fees of any attorneys
employed by the Secured Party to collect such deficiency. To the extent

                                      -7-
<PAGE>

permitted by applicable law, the Company waives all claims, damages and demands
against the Secured Party arising out of the repossession, removal, retention or
sale of the Collateral, unless due to the gross negligence or willful misconduct
of the Secured Party.

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

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

         10. Security Interest Absolute. All rights of the Secured Party and all
Obligations of the Company hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement,
the Debentures, the Warrant or any agreement entered into in connection with the
foregoing, or any portion hereof or thereof; (b) any change in the time, manner
or place of payment or performance of, or in any other term of, all or any of
the Obligations, or any other amendment or waiver of or any consent to any
departure from the Debentures, the Warrant or any other agreement entered into
in connection with the foregoing; (c) any exchange, release or nonperfection of
any of the Collateral, or any release or amendment or waiver of or consent to
departure from any other collateral for, or any guaranty, or any other security,
for all or any of the Obligations; (d) any action by the Secured Party to
obtain, adjust, settle and cancel in its sole discretion any insurance claims or
matters made or arising in connection with the Collateral; or (e) any other
circumstance which might otherwise constitute any legal or equitable defense
available to the Company, or a discharge of all or any part of the Security
Interest granted hereby. Until the Obligations shall have been paid and
performed in full, the rights of the Secured Party shall continue even if the
Obligations are barred for any reason, including, without limitation, the
running of the statute of limitations or bankruptcy. The Company expressly
waives presentment, protest, notice of protest, demand, notice of nonpayment and
demand for performance. In the event that at any time any transfer of any

                                      -8-
<PAGE>

Collateral or any payment received by the Secured Party hereunder shall be
deemed by final order of a court of competent jurisdiction to have been a
voidable preference or fraudulent conveyance under the bankruptcy or insolvency
laws of the United States, or shall be deemed to be otherwise due to any party
other than the Secured Party, then, in any such event, the Company's obligations
hereunder shall survive cancellation of this Agreement, and shall not be
discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement, but shall remain a valid and binding obligation enforceable in
accordance with the terms and provisions hereof. The Company waives all right to
require the Secured Party to proceed against any other person or to apply any
Collateral which the Secured Party may hold at any time, or to marshal assets,
or to pursue any other remedy. The Company waives any defense arising by reason
of the application of the statute of limitations to any obligation secured
hereby.

         11. Term of Agreement. This Agreement and the Security Interest shall
terminate on the date on which all obligations under the Debentures have been
fulfilled and all other Obligations have been paid or discharged. Upon such
termination, the Secured Party, at the request and at the expense of the
Company, will join in executing any termination statement with respect to any
financing statement executed and filed pursuant to this Agreement.

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

             (b) On a continuing basis, the Company will make, execute,
acknowledge, deliver, file and record, as the case may be, in the proper filing
and recording places in any jurisdiction, including, without limitation, the
jurisdictions indicated on Schedule B, attached hereto, all such instruments,

                                      -9-
<PAGE>

and take all such action as may reasonably be deemed necessary or advisable, or
as reasonably requested by the Secured Party, to perfect the Security Interest
granted hereunder and otherwise to carry out the intent and purposes of this
Agreement, or for assuring and confirming to the Secured Party the grant or
perfection of a security interest in all the Collateral.

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

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

         If to the Company:       Digital Descriptor Systems, Inc.
                                  446 Lincoln Highway
                                  Fairless Hills, PA 19030
                                  Facsimile No.: (267) 580-1090
                                  Attn: Michael J. Pellegrino

         With copies to:          Owen M. Naccarato, Esq.
                                  19600 Fairchild, Suite 260
                                  Irvine, CA 92612
                                  Facsimile No.: (949) 851-9262
                                  Attn: Owen M. Naccarato, Esq.

         If to the Secured Party: AJW Partners, LLC
                                  155 First Street, Suite B
                                  Mineola, NY, NY 11501
                                  Facsimile No.: (516) 739-7115
                                  Attn: Corey S. Ribotsky

                                       and

                                      -10-
<PAGE>

                                  New Millennium Capital Partners II, LLC
                                  155 First Street, Suite B
                                  Mineola, NY, NY 11501
                                  Facsimile No.: (516) 739-7115
                                  Attn: Glenn A. Arbeitman

         With copies to:          Robinson Silverman Pearce Aronsohn &
                                   Berman LLP
                                  1290 Avenue of the Americas
                                  New York, NY  10104
                                  Facsimile No.: (212) 541-4630 and
                                                 (212) 541-1432
                                  Attn: Eric L. Cohen. Esq.

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

         15. Miscellaneous.

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

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

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

             (d) In the event that any provision of this Agreement is held to be
invalid, prohibited or unenforceable in any jurisdiction for any reason, unless
such provision is narrowed by judicial construction, this Agreement shall, as to
such jurisdiction, be construed as if such invalid, prohibited or unenforceable

                                      -11-
<PAGE>

provision had been more narrowly drawn so as not to be invalid, prohibited or
unenforceable. If, notwithstanding the foregoing, any provision of this
Agreement is held to be invalid, prohibited or unenforceable in any
jurisdiction, such provision, as to such jurisdiction, shall be ineffective to
the extent of such invalidity, prohibition or unenforceability without
invalidating the remaining portion of such provision or the other provisions of
this Agreement and without affecting the validity or enforceability of such
provision or the other provisions of this Agreement in any other jurisdiction.

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

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

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

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

             (i) EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS
TO A JURY TRAIL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF
ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER
OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY
HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO

                                      -12-
<PAGE>

ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY
ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL
FOLLOWING SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING THAT,
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF A
LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

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

                              * * * * * * * * * * *

                                      -13-
<PAGE>

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

                                         DIGITAL DESCRIPTOR SYSTEMS, INC.

                                         By:____________________________________
                                             Name:
                                             Title:

                                         AJW PARTNERS, LLC

                                         By: SMS Group, LLC

                                         By:____________________________________
                                             Name: Corey S. Ribotsky
                                             Title:

                                         NEW MILLENNIUM CAPITAL PARTNERS II, LLC

                                         By: First Street Manager II, LLC

                                         By:____________________________________
                                             Name: Glenn A. Arbeitman
                                             Title:

<PAGE>

                                   SCHEDULE A

Principal Place of Business of the Company:

Locations Where Collateral is Located or Stored:

List of subsidiaries of the Company:

<PAGE>

                                   SCHEDULE B

Jurisdictions:<PAGE>

                                                                    Exhibit 10.8

                              10% CONVERTIBLE NOTE

$100,000

                          Date of Issue: April 10, 2001

Digital Descriptor Systems, Inc. (a Delaware corporation) (hereinafter referred
to as the "Company" or "Borrower") is indebted and, for value received, herewith
promises to pay to:

                                 Rudy Hallenbeck

or to his order, (together with any assignee, jointly or severally, the "Holder"
or "Lender") on the date which is six (6) months following the date of issue
(the "Original Due Date"), unless later extended by the Lender, in his sole
discretion, by Lender delivering written notice to Borrower within five (5)
business days prior to the Original Due Date of his desire to extend such
maturity, which notice shall contain the new maturity date which shall not be
more than 180 days following the Original Due Date (the "Due Date"), the sum of
One Hundred Thousand ($100,000), or, if less, so much thereof as may be
outstanding from time to time (the "Principal Amount") and to pay interest on
the Principal Amount at the rate of Ten percent (10%) per annum as provided
herein. In furtherance thereof, and in consideration of the premises, covenants,
promises, representations and warranties hereinafter set forth the Borrower
hereby agrees as follows:

1.   Interest. Interest on the Principal Amount outstanding from time to time
     shall accrue at the rate of 10% per annum, shall be based on a year of 360
     days and shall be payable on the Original Due Date, or if Lender extends
     such date, the Due Date. Overdue principal and interest on the Note shall,
     to the extent permitted by applicable law, bear interest at the rate of 10%
     per annum. All payments of both principal and interest, shall be made at
     the address of the Holder hereof as it appears in the books and records of
     the Borrower, or at such other place as may be designated by the Holder
     hereof. Payments of both principal and interest are to be made in lawful
     money of the United States.

2.   Maturity. If not converted by the Holder as hereinafter set forth, this
     Note shall mature on the Original Due Date or if Lender extends such Date,
     the Due Date at which time all then remaining unpaid principal, interest
     and any other charges then due hereunder shall be due and payable in full.

3.   Prepayment. The principal amount hereof, together with interest thereon,
     may be prepaid, in whole or in part, prior to the scheduled maturity of
     this Note without premium or penalty. The Holder's conversion rights under
     paragraph 4 shall be extinguished if and to the extent that the Note is
     paid before the Holder gives its "Conversion Notice," as the term is
     defined in paragraph 4.

<PAGE>

4.   Conversion Right. The Holder of this Note shall have the right at Holder's
     sole option, at any time after the date which is thirty (30) days prior to
     the Original Due Date, or at any time during any extension of maturity
     provided by Lender in accordance with the first paragraph of this Note, to
     convert all or, in multiples of $5,000, any part of this Note into such
     number of fully paid and nonassessable shares of common stock, $.001 par
     value, of the Company (the "Common Stock") as shall be provided herein. The
     Holder may exercise the conversion right by giving written notice (the
     "Conversion Notice") to Borrower of the exercise of such right and stating
     the name or names in which the stock certificate or stock certificates for
     the shares of Common Stock are to be issued and the address to which such
     certificates shall be delivered. The Conversion Notice shall be accompanied
     by a duly executed assignment of the portion of the Note that Holder
     desires to convert. The number of shares of Common Stock that shall be
     issuable upon conversion of the Note or any portion thereof shall equal the
     face amount of the Note or portion thereof divided by the Conversion Price
     as defined below and in effect on the date the Conversion Notice is given.
     Conversion shall be deemed to have been effected on the date the Conversion
     Notice is given (the "Conversion Date"). Within ten (10) business days
     after receipt of the Conversion Notice, Borrower shall issue and deliver by
     hand against a signed receipt therefor or by United States registered mail
     return receipt requested, to the address designated in the Conversion
     Notice, a stock certificate or stock certificates of Borrower representing
     the number of shares of Common Stock to which Holder is entitled and (if
     applicable) a check or cash in payment of all interest accrued and unpaid
     on the Note up to and including the Conversion Date unless Holder elects to
     apply such interest to the Conversion Price in accordance with Section 4(c)
     below. The conversion rights will be governed by the following provisions:

     (a) Conversion Price: On the issue date hereof and until such time as an
         adjustment shall occur, the Conversion Price per share shall be an
         amount equal to 50% of the mean average price of the common stock of
         the Borrower for the ten (10) trading days prior to notice of
         conversion per share; provided, however, that the Conversion Price
         shall be subject to adjustment at the times, and in accordance with the
         provisions, as follows:

         i)   Adjustment of Issuance of Shares at less than the Conversion
              Price: If and whenever any shares of Additional Common Stock (as
              defined below) shall be issued by the Company (the "Stock Issue
              Date") for a consideration per share less than the Conversion
              Price, then in each such case the Conversion Price shall be
              reduced to a new Conversion Price in amount equal to the
              consideration per share received by the Company for the shares of
              Additional Common Stock then issued; and, in the case of shares
              issued without consideration, the initial Conversion Price shall
              be reduced in amount and the number of shares issued upon
              conversion shall be increased in an amount so as to maintain for
              the Holder the right to convert the Note into shares equal in
              amount to the same percentage interest in the Common Stock of the
              Company as existed for the Holder immediately preceding the Stock
              Issue Date.

         ii)  Sale of Shares: In the event of the issuance of shares of
              Additional Common Stock for a consideration part or all of which
              shall be cash, the amount of the cash consideration therefor shall
              be deemed to be the amount of the cash received by the Company for
              such shares, after any compensation or discount in the sale,
              underwriting or purchase thereof by underwriters or dealers or
              others performing similar services or for any expenses incurred in
              connection therewith.

         iii) Reclassification of Shares: In case of the reclassification of
              securities into shares of Common Stock, the shares of Common Stock
              issued in such reclassification shall be deemed to have been
              issued for a consideration other than cash. Shares of Additional
              Common Stock issued by way of dividend or other distribution on
              any class of stock of the Company shall be deemed to have been
              issued without consideration.

<PAGE>

         iv)  Split-up or Combination of Shares: In the event issued and
              outstanding shares of Common Stock shall be subdivided or split up
              into a greater number of shares of the Common Stock, the
              Conversion Price shall be proportionately decreased, and in the
              event issued and outstanding shares of Common Stock shall be
              combined into a smaller number of shares of Common Stock, the
              Conversion Price shall be proportionately increased, such increase
              or decrease, as the case may be, becoming effective at the time of
              record of the split-up or combination, as the case may be.

         v)   Additional Common Stock: The term "Additional Common Stock" herein
              shall mean all shares of Common Stock hereafter issued by the
              Company (including Common Stock held in the treasury of the
              Company), except Common Stock issued upon the conversion of any
              portion of the Note.

     (b) Adjustment for Mergers, Consolidations, Etc.:

         i)   In the event of distribution to all Common Stock holders of any
              stock, indebtedness of the Company or assets (excluding cash
              dividends or distributions from retained earnings) or other rights
              to purchase securities or assets, then, after such event, the Note
              will be convertible into the kind and amount of securities, cash
              and other property which the Holder of the Note would have been
              entitled to receive if the Holder owned the Common Stock issuable
              upon conversion of the Note immediately prior to the occurrence of
              such event.

         ii)  In the event of any capital reorganization, reclassification of
              the stock of the Company (other than a change in par value or as a
              result of a stock dividend, subdivision, split up or combination
              of shares), or consolidation or merger of the Company with or into
              another person or entity (other than a consolidation or merger in
              which the Company is the continuing corporation and which does not
              result in any change in the Common Stock) or of the sale,
              exchange, lease, transfer or other disposition of all or
              substantially all of the properties and assets of the Company as
              an entirety or the participation by the Company in an exchange of
              shares as the corporation the stock of which is to be acquired,
              this Note shall be convertible into the kind and number of shares
              of stock or other securities or property of the Company (or of the
              corporation resulting from such consolidation or surviving such
              merger or to which such properties and assets shall have been
              sold, exchanged, leased, transferred or otherwise disposed, or
              which was the corporation whose securities were exchanged for
              those of the Company), to which the Holder of the Note would have
              been entitled to receive if the Holder owned the Common Stock
              issuable upon conversion of the Note immediately prior to the
              occurrence of such event. The provisions of the foregoing
              sentences of this Section 4(b)(ii) shall similarly apply to
              successive reorganizations, reclassifications, consolidations,
              mergers, sales, exchanges, leases, transfers or other dispositions
              or other share exchanges.

<PAGE>

         iii) Notice of Adjustment: (A) In the event the Company shall propose
              to take any action which shall result in an adjustment in the
              Conversion Price, the Company shall give notice to the Holder,
              which notice shall specify the record date, if any, with respect
              to such action and the date on which such action is to take place.
              Such notice shall be given on or before the earlier of thirty (30)
              days before the record date or the date which such action shall be
              taken. Such notice shall also set forth all facts material to the
              effect of such action on the Conversion Price and the number, kind
              or class of shares or other securities or property which shall be
              deliverable or purchasable upon the occurrence of such action or
              deliverable upon conversion of this Note. (B) Following completion
              of an event wherein the Conversion Price shall be adjusted, the
              Company shall furnish to the Holder a statement, signed by the
              Chief Executive Officer of the Company, of the facts creating such
              adjustment and specifying the resultant adjusted Conversion Price
              then in effect.

     (c) The Holder may, at his sole option, apply any accrued interest and/or
         principal outstanding on the Conversion Date towards the Conversion
         Price.

5.   Reservation of Shares. Borrower warrants and agrees that it shall at all
     times reserve and keep available, free from preemptive rights, sufficient
     authorized and unissued, or of treasury, shares of Common Stock to effect
     conversion of this Note upon the terms and conditions contained herein.

6.   Registration Rights. The Borrower has filed a Registration Statement on
     Form SB-2 under the United States Security Act of 1933 and has included
     this Convertible Note and the underlying common stock thereunder from
     transfer by the Holder except if and unless the shares are duly registered
     for sale pursuant to the Securities Act of 1993, as amended, or the
     transfer is duly exempt from registration.

7.   Taxes. The Borrower shall pay any documentary or other transactional taxes
     attributable to the issuance or delivery of this Note or the shares of
     Common Stock issued upon conversion by the Holder (excluding any federal,
     state or local income taxes and any franchise taxes or taxes imposed upon
     the Holder by the jurisdiction, or any political subdivision thereof, under
     which such Holder is organized or is qualified to do business).

<PAGE>

8.   Default.

     (a) Event of Default: An "Event of Default" shall exist if any one or more
         of the following events (herein collectively called "Events of
         Default") shall occur and be continuing:

         i)   Borrower shall fail to pay (or shall state in writing an intention
              not to pay or its inability to pay), when due or no later than 10
              days thereof, any installment of interest on or principal of, the
              Note or any fee, expense or other payment required hereunder;

         ii)  Any representation or warranty made under this Note shall prove to
              be untrue or inaccurate in any material respect as of the date on
              which such representation or warranty is made;

         iii) Default in the performance of any of the covenants or agreements
              of Borrower contained under the Note, which default is not
              remedied within thirty (30) days after written notice thereof to
              Borrower from Lender, provided that such thirty (30) day grace
              period shall not apply to default of any payment requirement or
              notice covenant made by Borrower;

         iv)  Borrower and/or its subsidiaries and/or affiliates, if any, shall
              (A) apply for or consent to the appointment of a receiver,
              trustee, custodian, intervenor or liquidator of itself, or of all
              or substantially all, of its assets, (B) file a voluntary petition
              in bankruptcy, admit in writing that it is unable to pay its debts
              as they become due or generally not pay its debts as they become
              due, (C) make a general assignment for the benefit of creditors,
              (D) file a petition or answer seeking reorganization of an
              arrangement with creditors or to take advantage of any bankruptcy
              or insolvency laws, (E) file an answer admitting the material
              allegations of, or consent to, or default in answering, a petition
              filed against it in any bankruptcy, reorganization or insolvency
              proceeding, or (F) take corporate action for the purpose of
              effecting any of the foregoing;

         v)   An involuntary petition or complaint shall be filed against
              Borrower or any of its subsidiaries, if any, seeking its
              bankruptcy or reorganization or the appointment of a receiver,
              custodian, trustee, intervenor or liquidator, or all or
              substantially all of Borrower's assets, and such petition or
              complaint shall not have been dismissed within sixty (60) days of
              the filing thereof or an order, order for relief judgement or
              decree shall be entered by any court of competent jurisdiction or
              other competent authority approving a petition or complaint
              seeking reorganization of Borrower or its subsidiary, if any, or
              appointing a receiver, custodian, trustee, intervenor or
              liquidator of such person, or of all or substantially all of such
              person' assets; or

         vi)  The failure of Borrower to issue and deliver shares of Common
              Stock as provided herein upon conversion of the Note.

<PAGE>

     (b) Remedies upon Event of Default: If an Event of Default shall have
         occurred and be continuing, then Lender may exercise any one or more of
         the following rights and remedies:

         i)   declare the unpaid Principal Amount of, and all interest then
              accrued but unpaid on, the Note and any other liabilities
              hereunder to be forthwith due and payable, whereupon the same
              shall forthwith become due and payable without presentment,
              demand, protest, notice of default, notice of acceleration or of
              intention to accelerate or other notice of any kind, all of which
              Borrower hereby expressly waives, anything contained herein or in
              the Note to the contrary notwithstanding in which event the Lender
              may, in its sole discretion, immediately exercise its conversion
              rights provided for in Section 4 hereof,

         ii)  reduce any claim to judgment, and/or;

     (c) Remedies Nonexclusive: Each right, power or remedy of the Holder upon
         the occurrence of any Event of Default as provided for in this Note or
         now or hereafter existing at law or in equity or by statute shall be
         cumulative and concurrent and shall be in addition to every other
         right, power or remedy provided for in this Note or now or hereafter
         existing at law or in equity or by statute, and the exercise or
         beginning of the exercise by the Holder of any one or more of such
         rights, powers or remedies shall not preclude the simultaneous or later
         exercise by the Holder of any or all such other rights, powers or
         remedies.

     (d) Expenses: Upon the occurrence of a Default or an Event of Default,
         which occurrence is not cured within the applicable grace period, if
         any provided therefor, Borrower agrees to pay and shall pay all costs
         and expenses (including Lender's attorney's fees and expenses)
         reasonably incurred by Lender in connection with the preservation and
         enforcement of Lender's rights under the Note.

9.   Failure to Act and Waiver. No failure or delay by the Holder to require the
     performance of any term or terms of this Note or nor to exercise any right,
     or any remedy shall constitute a waiver of any such term or of any right or
     of any default, nor shall such delay or failure preclude the Holder from
     exercising any such right, power or remedy at any later time or times. By
     accepting payment after the due date of any amount payable under this Note,
     the Holder shall not be deemed to waive the right either to require payment
     when due of all other amounts payable, or to later declare a default for
     failure to effect such payment of any such other amount. The failure of the
     Holder of this Note to give notice of any failure or breach of the Borrower
     under the Note shall not constitute a waiver of any right or remedy in
     respect of such continuing failure or breach or any subsequent failure or
     breach.

<PAGE>

10.  Consent to Jurisdiction. The Borrower hereby agrees and consents that any
     action, suit or proceeding arising out of this Note may be brought in any
     appropriate court in the State of Illinois including the United States
     District Court for the Northern District of Illinois, or in any other court
     having jurisdiction over the subject matter, all at the sole election of
     the Holder hereof, and by the issuance and execution of this Note the
     Borrower irrevocably consents to the jurisdiction of each such court.
     Borrower irrevocably consents to the service of any complaint, summons,
     notice or other process relating to any action or proceeding by delivery
     thereof to it by hand or by any other manner provided for in Section 11
     hereof.

11.  Notices. All notices and communications under this Note shall be in writing
     and shall be either delivered in person and accompanied by a signed receipt
     therefor, or mailed first-class United States certified mail return receipt
     requested, postage prepaid, and addressed as follows; (i) if to the
     Borrower at 446 Lincoln Highway, Fairless Hills, Pennsylvania 19030; and,
     (ii) if to the Holder of this Note, to the address (a) of such Holder as it
     appears on the books of the Borrower if, or (b) in the case of a partial
     assignment to one or more Holder(s), to the Lender's agent for notice, if
     applicable. Any notice of communication shall be deemed given and received
     as of the date of such delivery of delivered; or if mailed, then three days
     after the date of mailing.

12.  GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
     ACCORDANCE WITH THE LAWS OF COMMONWEALTH OF PENNSYLVANIA.

                                     *  *  *

         IN WITNESS WHEREOF, the undersigned Borrower have caused this Note to
be duly executed under its corporate seal on the date of issue above stated.

                                      BORROWER

Address for Notice                    Digital Descriptor Systems, Inc.

                                      By:_________________________________
                                      Title:  President

                                      Attest by:__________________________
                                      Title:  Secretary

<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

(To be Executed by the Registered Holder
in order to Convert the Debenture)

The undersigned hereby elects to convert the attached Debenture into shares of
common stock, $0.001 par value per share (the "Common Stock"), of Digital
Descriptor Systems, Inc. (the "Company") according to the conditions hereof, as
of the date written below. If shares are to be issued in the name of a person
other than the undersigned, the undersigned will pay all transfer taxes payable
with respect thereto and is delivering herewith such certificates and opinions
as reasonably requested by the Company in accordance therewith. No fee will be
charged to the bolder for any conversion, except for such transfer taxes, if
any.

Conversion calculations:

                                Date to Effect Conversion

                                Principal Amount of Debentures to be Converted

                                Payment of Interest in Kind      Yes

                                                                     No

                                If yes, $_______ of Interest Accrued on
                                Account of Conversion at Issue

                                Number of shares of Common Stock to be issued

                                Applicable Conversion Price

                                Signature

                                Name

                                Address

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00024-of-00352.parquet"}]]