Document:

EXHIBIT 10.4

                               SECURITY AGREEMENT

This SECURITY AGREEMENT ("SECURITY  AGREEMENT") is made this 18th day of August,
1998, by, between and among,  ADVANCED  KNOWLEDGE,  INC, a Delaware  corporation
("DEBTOR"), on the one hand, and BUDDY YOUNG, an individual,  ("SECURED PARTY"),
on the other hand, with respect to the following:

                                    RECITALS

A. DEBTOR has borrowed the sum of up to Three Hundred  Thousand  ($300,000) from
Secured Party (the "DEBT");

B. DEBTOR and SECURED PARTY now mutually desire for DEBTOR to secure the Loan in
the principal sum of up to Three Hundred  Thousand  ($300,000) as evidenced by a
SECURED  PROMISSORY  NOTE,  dated of even date  herewith and signed by DEBTOR in
favor of SECURED  PARTY (the  "NOTE") in said amount (the "DEBT") and for DEBTOR
to  pledge  the   personal   property   listed  on   attached   Exhibit  "A"  as
security\collateral  for the  repayment  of the DEBT (the  "COLLATERAL")  on the
terms and conditions set forth herein.

NOW,  THEREFORE,  in  consideration  of and  reliance  on the mutual  covenants,
conditions,  promises, and representations  contained herein, the parties hereto
agree as follows:

1. Recitals. The recitals stated above are incorporated herein by this reference
as if set forth in full at this point.

2. Definitions.  As used in this SECURITY  AGREEMENT,  the following terms shall
have the following meanings:

a.  "COLLATERAL"  and "SECURITY" mean the personal  property set forth and fully
described in attached Exhibit "A".

b. "DEBTOR" means ADVANCED KNOWLEDGE, INC., a Delaware corporation.

c. "DEBT",  "INDEBTEDNESS" and "LOAN" mean DEBTOR'S  obligations  represented by
the NOTE executed by DEBTOR and payable to the SECURED PARTY as Holder.

d. "LIEN" means any  security  interest,  mortgage,  pledge,  lien,  attachment,
claim, charge, encumbrance, agreement retaining title, or other interests in, to
or covering the COLLATERAL.

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e.  "OBLIGATIONS"  mean any and all  existing  and future  duties,  obligations,
indebtedness  and liabilities of DEBTOR to SECURED PARTY,  including  attorneys'
fees  incurred in enforcing  this SECURITY  AGREEMENT or collecting  payment due
under the NOTE.

f. "BREACH" and "DEFAULT" mean an event or omission that is or would be a breach
or default  under this  SECURITY  AGREEMENT  or any other  document  evidencing,
creating or relating to the security for and performance of the OBLIGATIONS.

g. "NOTE" means the SECURED  PROMISSORY NOTE, of even date herewith  executed by
DEBTOR for the benefit of SECURED  PARTY,  a true and  correct  copy of which is
attached hereto and marked as Exhibit "B".

h. Terms defined in the California Uniform Commercial Code not otherwise defined
in this Security  Agreement  are used in this  Security  Agreement as defined in
that Code on the date of this agreement.

i. "SECURED PARTY" and "HOLDER" mean BUDDY YOUNG, or his nominee or order.

3. Grant of Security  Interest.  For the purpose of providing SECURED PARTY with
security for the DEBTOR's  payment of the NOTE,  DEBTOR  hereby  grants  SECURED
PARTY a security  interest in and to the COLLATERAL,  which is more specifically
described and set forth in attached Exhibit "A" and which is incorporated herein
by this  reference.  Further,  DEBTOR shall execute any and all other  documents
necessary to grant, perfect and otherwise effect notice that SECURED PARTY has a
first priority secured interest in the COLLATERAL. In this regard, DEBTOR grants
SECURED PARTY the limited power of attorney to sign such  documents on behalf of
DEBTOR in the event DEBTOR is unable to or refuses to sign such documents.  Said
documents include,  without limitation,  a UCC-1 Financing Statement to be filed
with the California Secretary of State.

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<PAGE>

         4.       DEBTOR'S Covenants.

DEBTOR shall:

a. make all payments to the SECURED PARTY as set forth in the NOTE;

b. pay all expenses, including attorneys' fees, incurred by SECURED PARTY in the
perfection, preservation,  realization,  enforcement, and exercise of its rights
under this SECURITY AGREEMENT;

c.  indemnify  SECURED  PARTY  against  loss of any kind,  including  reasonable
attorneys'  fees,  caused to  SECURED  PARTY by reason  of its  interest  in the
COLLATERAL;

d. not sell,  lease,  transfer,  or  otherwise  dispose  of or  hypothecate  the
COLLATERAL, without the express prior written consent of the SECURED PARTY;

e. not permit liens on the COLLATERAL,  except the lien created by this SECURITY
AGREEMENT;

f. not use the COLLATERAL for any unlawful purpose or in any way that would void
any effective insurance;

g. perform all acts necessary to maintain, preserve, and protect the COLLATERAL;

h. notify SECURED PARTY promptly in writing of any default,  potential  default,
or any development that might have a material adverse effect on the COLLATERAL;

5. Debtor's  Representations  and Warranties.  DEBTOR covenants,  warrants,  and
represents as follows:

a. DEBTOR,  has the full  corporate  capacity to understand  and enter into this
SECURITY  AGREEMENT  and  possesses  all the  necessary  corporate  authority to
conduct its businesses in the fashion now conducted and as contemplated  herein,
wherever conducted;

b. The SECURITY  AGREEMENT  is a valid and binding  obligation  of DEBTOR.  This
SECURITY  AGREEMENT  creates  a  perfected,  first  priority  security  interest
enforceable  against the COLLATERAL in which DEBTOR'S rights will be effected as
this SECURITY  AGREEMENT  creates a perfected,  first priority security interest
for the benefit of SECURED PARTY, which is enforceable against the COLLATERAL;

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<PAGE>

c. Neither the execution and delivery of this SECURITY AGREEMENT, nor the taking
of any  action in  compliance  with it,  will (1)  violate  or  breach  any law,
regulation,  rule, order, or judicial action binding on DEBTOR, any agreement to
which DEBTOR is a party,  if such exist; or (2) result in the creation of a lien
against the COLLATERAL except that created by this SECURITY AGREEMENT;

d. No default or potential default exists; and,

e. DEBTOR owns the  COLLATERAL,  subject only to those liens and adverse  claims
created by this SECURITY AGREEMENT.

6.  Termination.  This SECURITY  AGREEMENT  shall continue in effect even though
from time to time there may be no outstanding  obligations or commitments  under
this SECURITY AGREEMENT and/or the NOTE. This SECURITY AGREEMENT shall terminate
when (a) DEBTOR'S  complete  performance  of all  obligations  to SECURED PARTY,
including  without  limitation  the  payment  of all  INDEBTEDNESS  by DEBTOR to
SECURED  PARTY;  (b) SECURED PARTY has no commitment  that could give rise to an
obligation;  and (c)  DEBTOR  has  notified  SECURED  PARTY  in  writing  of the
termination.

7. Default. DEBTOR shall be in default under this SECURITY AGREEMENT if:

a. DEBTOR  fails to make the  payment,  or any  payment  when due, or the entire
indebtedness to SECURED PARTY when due;

b. DEBTOR fails to make any remittances required by this SECURITY AGREEMENT;

c.  DEBTOR  commits  any breach of this  SECURITY  AGREEMENT,  or any present or
future rider or supplement to this SECURITY  AGREEMENT,  or any other  agreement
between DEBTOR and SECURED PARTY evidencing the obligation or securing it;

d. Any warranty, representation, or statement, made by or on behalf of DEBTOR in
or with respect to the SECURITY AGREEMENT, is false;

e. The COLLATERAL is lost, stolen, or damaged; or,

f. There is a seizure or attachment of, or a levy on, the COLLATERAL.

8. Remedies.

8.1 Upon an event of default, SECURED PARTY may, at its option, to:

a.  Declare  the  obligations   immediately  due  and  payable  without  demand,
presentment, protest, or notice to DEBTOR, all of which DEBTOR expressly waives;

b. Terminate any obligations or to make future advances, if any;

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<PAGE>

c.  Exercise  all rights and  remedies  available  to a secured  creditor  after
default,  including  but not  limited  to the  rights  and  remedies  of secured
creditors under the California Uniform Commercial Code;

d.  Perform  any of  DEBTOR's  obligations  under this  SECURITY  AGREEMENT  for
DEBTOR's account; and,

e.  SECURED  PARTY's  notice  of the  time  and  place  of  public  sale  of the
COLLATERAL, or the time on or after which a private sale or other disposition of
the  COLLATERAL  will be made, is reasonable if sent to DEBTOR in the manner for
giving notice at least five days before the public or private sale.

Any money expended or  obligations  incurred in doing so,  including  reasonable
attorneys'  fees and  interest at the highest  rate  permitted  by law,  will be
charged  to  DEBTOR  and  added  to the  obligation  secured  by  this  SECURITY
AGREEMENT.

8.2 Upon an event of a notice of default by the SECURED PARTY, DEBTOR shall:

a. Assemble the COLLATERAL and make it and all records  relating to it available
to SECURED PARTY as SECURED PARTY directs; and,

b.  Allow  SECURED  PARTY,  its  representatives,  and its  agents  to enter the
premises where all or any part of the COLLATERAL,  the records,  or both may be,
and remove any or all of it.

9.  Attorney's  Fees.  In the  event  that  SECURED  PARTY is  forced  to engage
attorneys  to enforce  its rights  under the  SECURITY  AGREEMENT  and the NOTE,
including to collect  payments due under the NOTE,  DEBTOR shall be  responsible
for the payment of his, her or its costs and expenses of  collection,  including
reasonable attorneys' fees.

10.   Survival   of   DEBTOR's   Representations   and   Warranties.    DEBTOR's
representations and warranties made in this SECURITY AGREEMENT shall survive its
execution, delivery, and termination.

11.  Assignment.  This SECURITY AGREEMENT shall bind and enure to the benefit of
the parties successors,  heirs and assigns.  However,  DEBTOR may not assign its
rights, duties and obligations under this SECURITY AGREEMENT or the NOTE without
SECURED PARTY's prior written consent.

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<PAGE>

12.  Notices.  Any  communication  to be  given to any  party  to this  SECURITY
AGREEMENT  shall be in writing and deemed  delivered  when  delivered in person,
sent by fax, or five (5) days after such is deposited in the United States Mail,
postage prepaid,  certified, return receipt requested and addressed to the party
at its address set forth below:

                                    If to DEBTOR:

                                    Advanced Knowledge
                                    17337 Ventura Blvd. Suite 224
                                    Encino, CA 91316

                                    If to SECURED PARTY:

                                    Buddy Young
                                    17614 McCormick Street
                                    Encino, CA 91316

13. Binding Effect.  The parties hereto hereby  represent and warrant,  each for
themselves, that they have the capacity to and are authorized to enter into this
SECURITY  AGREEMENT on behalf of their  respective  party and that this SECURITY
AGREEMENT,  when duly  executed,  will  constitute a legal,  valid,  and binding
agreement,  enforceable against each of the parties in accordance with the terms
hereof.

14. Severability.  In the event that any covenant,  condition or other provision
herein  contained  is held to be  invalid,  void,  or  illegal  by any  court of
competent jurisdiction, the same shall be deemed severable from the remainder of
this  SECURITY  AGREEMENT and shall in no way affect,  impair or invalidate  any
other  covenant,   condition  or  other  provision  herein  contained.  If  such
condition,  covenant or other provision shall be deemed invalid due to its scope
or breadth, such covenant,  condition,  or other provision shall be deemed valid
to the extent of the scope or breadth permitted by law.

15. Waiver, Amendment and Modification. No breach of any provision hereof can be
waived unless in writing. Waiver of any one breach of any provision hereof shall
not be  deemed  to be a waiver  of any  other  breach  of the same or any  other
provision hereof.  This SECURITY AGREEMENT may only be amended or modified by an
instrument in writing executed by each of the parties hereto.

16.  Construction.  This SECURITY  AGREEMENT shall not be construed  against the
party preparing it, and shall be construed without regard to the identity of the
person who  drafted  it or the party who  caused it to be  drafted  and shall be
construed as if all parties had jointly prepared this SECURITY  AGREEMENT and it
shall be deemed their joint work product,  and each and every  provision of this
SECURITY  AGREEMENT  shall be  construed  as though  all of the  parties  hereto
participated  equally in the drafting  hereof;  and any uncertainty or ambiguity
shall not be  interpreted  against any one party.  As a result of the foregoing,
any rule of construction that a document is to be construed against the drafting
party shall not be applicable.

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<PAGE>

17.  Governing Law. This SECURITY  AGREEMENT  shall be governed in all respects,
including validity,  interpretation,  effect and enforcement, by the laws of the
State of California.

18. Counterparts.  This SECURITY AGREEMENT may be executed in counterparts, each
of which, when so executed and delivered,  shall be an original;  however,  such
counterparts together shall constitute but one and the same SECURITY AGREEMENT.

19.  Headings The headings used herein are for convenience of reference only and
do not  constitute a part of this SECURITY  AGREEMENT and shall not be deemed to
limit or effect any of the provisions hereof.

                                        7

<PAGE>

IN WITNESS  WHEREOF,  the parties  hereto have executed this SECURITY  AGREEMENT
effective as of the day and year above first written.

DEBTOR:

ADVANCED KNOWLEDGE, INC., a Delaware corporation

By:      /S/  L. STEPHEN ALBRIGHT
          --------------------------------------
          L. STEPHEN ALBRIGHT, Secretary and Director

SECURED PARTY:

          /S/  BUDDY YOUNG
          ---------------------------------------
          BUDDY YOUNG

                                       8EXHIBIT 10.5

                                   AGREEMENT

This  AGREEMENT  ("AGREEMENT")  is made and entered into this 24th day of March,
1999, by, between and among BUDDY YOUNG, an individual,  ("LENDER"),  on the one
hand, and, ADVANCED KNOWLEDGE,  INC. a Delaware corporation,  ("DEBTOR"), on the
other hand, with respect to the following:

                                    RECITALS

A. On August 18, 1998,  DEBTOR  executed a Secured  Promissory Note (the "NOTE")
and a Security Agreement ("SECURITY AGREEMENT"),  pursuant to which DEBTOR could
borrow up to Three Hundred Thousand Dollars ($300,000) from LENDER;

B. The  maturity  date of the  NOTE is  December  31,  1999,  at  which  time an
outstanding and unpaid principal and interest is to be repaid;

C. DEBTOR now wishes to extend the due date of the NOTE from  December  31, 1999
to December 31, 2001;

D. In order to assist DEBTOR with the implementation of its business plan and to
assist the DEBTOR  during its renewed  business  efforts,  LENDER also wishes to
extend the due date of the NOTE from December 31, 1999 to December 31, 2001.

E.  LENDER and DEBTOR now  mutually  desire for LENDER to extend the due date of
the NOTE to  December  31,  2001 in  accordance  with and  upon  the  terms  and
conditions stated herein;

NOW THEREFORE, in consideration of mutual promises and covenants, and conditions
herein contained, the parties agree as follows:

1. Recitals. The recitals stated above are incorporated herein by this reference
as if set forth in full at this point.

                                        1

<PAGE>

2. Extension of the Due Date of the NOTE. Upon execution of this AGREEMENT,  the
due date of the NOTE shall be extended  from  December  31, 1999 to December 31,
2001.  The  extension  of  the  due  date  is and  shall  be  the  only  change,
modification,  amendment or alteration of the terms and  conditions of the NOTE.
Except for the extension of the due date,  all other terms and conditions of the
NOTE shall remain unchanged and in full force and effect.

3. SECURITY AGREEMENT. The SECURITY AGREEMENT is hereby amended so as to conform
with the  modification of the NOTE which is set forth in paragraph 2 above.  The
extension  of the due  date  is and  shall  be the  only  change,  modification,
amendment or alteration of the terms and  conditions of the SECURITY  AGREEMENT.
Except for the extension of the due date,  all other terms and conditions of the
SECURITY AGREEMENT shall remain unchanged and in full force and effect.

4. Further Cooperation. To the extent reasonably necessary and requested, DEBTOR
shall execute and deliver such documents and instruments as may be necessary for
LENDER to continue  to hold a  perfected  first  position  security  lien in the
COLLATERAL,  as that term is defined in the SECURITY AGREEMENT. . 5. Other Terms
Unchanged.  Except as expressly modified herein, the balance of the terms of the
NOTE and the SECURITY  AGREEMENT  shall remain  unchanged by this  AGREEMENT and
shall be in full force and effect.  . The  parties  hereto  have  executed  this
AGREEMENT as set forth below,  and the effective date of this AGREEMENT shall be
the latest date of execution.

"LENDER":

/S/ BUDDY YOUNG
-----------------------------
BUDDY YOUNG

"DEBTOR":

ADVANCED KNOWLEDGE, INC.
A Delaware Corporation

By:  /S/ L. STEPHEN ALBRIGHT
    -------------------------
     L. STEPHEN ALBRIGHT, Secretary

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