Document:

REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

          This  Registration  Rights  Agreement  (this  "Agreement") is made and
                                                         ---------
entered  into  as  of  April  19,  2002,  between  Appiant Technologies, Inc., a
Delaware  corporation  (the  "Company"),  and the purchaser listed on Schedule A
                              -------
hereto  (the  "Purchaser").
               ---------

          This  Agreement  is  being  entered into pursuant to the Debenture and
Warrant  Purchase Agreement, dated as of the date hereof between the Company and
the  Purchaser  (the  "Purchase  Agreement").
                       -------------------

           The Company and the Purchaser hereby agree as follows:

     1.    Definitions.
           -----------

          Capitalized terms used and not otherwise defined herein shall have the
meanings given such terms in the Purchase Agreement.  As used in this Agreement,
the  following  terms  shall  have  the  following  meanings:

          "Advice"  shall  have  meaning  set  forth  in  Section  3(m).
           ------

          "Affiliate"  means,  with respect to any Person, any other Person that
           ---------
directly or indirectly controls or is controlled by or under common control with
such  Person.  For  the  purposes  of this definition, "control," when used with
                                                        -------
respect to any Person, means the possession, direct or indirect, of the power to
direct  or  cause  the  direction of the management and policies of such Person,
whether  through  the  ownership of voting securities, by contract or otherwise;
and  the  terms  of  "affiliated,"  "controlling" and "controlled" have meanings
                      ----------     -----------       ----------
correlative  to  the  foregoing.

          "Board"  shall  have  meaning  set  forth  in  Section  3(n).
           -----

          "Business Day" means any day except Saturday, Sunday and any day which
           ------------
shall  be a legal holiday or a day on which banking institutions in the state of
New York generally are authorized or required by law or other government actions
to  close.

          "Closing Date" means the Initial Closing Date, as that term is defined
           ------------
in  the  Purchase  Agreement.

          "Commission"  means  the  Securities  and  Exchange  Commission.
           ----------

          "Common  Stock" means the Company's Common Stock, par value $0.001 per
           -------------
share.
          "Effectiveness  Date" means with respect to the Registration Statement
           -------------------
the  earlier  of  the  90th day following the Closing Date and the date which is
within  three  (3)  days of the date on which the Commission informs the Company

                                      -1-
<PAGE>
that  the Commission (i) will not review the Registration Statement or (ii) that
the  Company  may  request  the  acceleration  of  the  effectiveness  of  the
Registration  Statement  and  the  Company  makes  such  request.

          "Effectiveness  Period" shall have the meaning set forth in Section 2.
           ---------------------

          "Event"  shall  have  the  meaning  set  forth  in  Section  7(e).
           -----

          "Event  Date"  shall  have  the  meaning  set  forth  in Section 7(e).
           -----------

          "Exchange  Act" means the Securities Exchange Act of 1934, as amended.
           -------------

          "Filing  Date"  means  the  30th  day  following  the  Closing  Date.
           ------------

          "Holder" or "Holders" means the holder or holders, as the case may be,
           ------      -------
from  time  to  time  of  Registrable  Securities.

          "Indemnified  Party" shall have the meaning set forth in Section 5(c).
           ------------------

          "Indemnifying Party" shall have the meaning set forth in Section 5(c).
           ------------------

          "Losses"  shall  have  the  meaning  set  forth  in  Section  5(a).
           ------

          "Person"  means  an  individual  or a corporation, partnership, trust,
           ------
incorporated  or  unincorporated  association,  joint venture, limited liability
company,  joint stock company, government (or an agency or political subdivision
thereof)  or  other  entity  of  any  kind.

          "Proceeding" means an action, claim, suit, investigation or proceeding
           ----------
(including,  without limitation, an investigation or partial proceeding, such as
a  deposition),  whether  commenced  or  threatened.

          "Prospectus"  means  the  prospectus  included  in  the  Registration
           ----------
Statement  (including,  without  limitation,  a  prospectus  that  includes  any
information  previously  omitted from a prospectus filed as part of an effective
registration  statement  in  reliance  upon  Rule  430A  promulgated  under  the
Securities  Act),  as amended or supplemented by any prospectus supplement, with
respect  to  the  terms  of  the  offering  of  any  portion  of the Registrable
Securities  covered  by the Registration Statement, and all other amendments and
supplements  to  the  Prospectus,  including  post-effective amendments, and all
material  incorporated  by  reference  in  such  Prospectus.

          "Registrable  Securities"  means  the  shares of Common Stock issuable
           -----------------------
upon  conversion  of the Debentures and the shares of Common Stock issuable upon
exercise  of  the  Warrant; provided, however, that Registrable Securities shall
                            --------  -------
include  (but  not be limited to) a number of shares of Common Stock equal to no
less  than  200%  of the maximum number of shares of Common Stock which would be
issuable  upon  conversion  of  the Debenture and upon exercise of the Warrants,
assuming such conversion and exercise occurred on the Closing Date or the Filing
Date,  whichever  date  would  result  in  the  greater  number  of  Registrable

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Securities; provided, further, that notwithstanding anything herein contained to
            --------  -------
the  contrary, all covenants made by the Company in this Agreement in connection
with  the registration of the Warrant Shares shall be on a "best efforts" basis,
and  the  penalties,  protections, indemnifications or other obligations arising
from  this  Agreement  shall  not  apply to the Warrant Shares.  Such registered
shares  of  Common  Stock shall be allocated among the Holders pro rata based on
the  total  number  of Registrable Securities issued or issuable as of each date
that  a  Registration  Statement,  as  amended,  relating  to  the resale of the
Registrable Securities is declared effective by the Commission.  Notwithstanding
anything  herein  contained  to  the contrary, if the actual number of shares of
Common Stock issuable upon conversion of the Debentures and upon exercise of the
Warrants  exceeds  200%  of  the  number of shares of Common Stock issuable upon
conversion  of  the  Debentures  and  upon exercise of the Warrants based upon a
computation  as  at  the  Closing Date or the Filing Date, the term "Registrable
Securities"  shall  be deemed to include such additional shares of Common Stock.

          "Registration  Statement"  means  the  registration statements and any
           -----------------------
additional registration statements contemplated by Section 2, including (in each
case)  the Prospectus, amendments and supplements to such registration statement
or  Prospectus,  including  pre-  and  post-effective  amendments,  all exhibits
thereto,  and  all  material  incorporated  by  reference  in  such registration
statement.

          "Rule  144"  means  Rule 144 promulgated by the Commission pursuant to
           ---------
the  Securities  Act,  as  such  Rule  may  be amended from time to time, or any
similar  rule  or  regulation  hereafter  adopted  by  the  Commission  having
substantially  the  same  effect  as  such  Rule.

          "Rule  158"  means  Rule 158 promulgated by the Commission pursuant to
           ---------
the  Securities  Act,  as  such  Rule  may  be amended from time to time, or any
similar  rule  or  regulation  hereafter  adopted  by  the  Commission  having
substantially  the  same  effect  as  such  Rule.

          "Rule  415"  means  Rule 415 promulgated by the Commission pursuant to
           ---------
the  Securities  Act,  as  such  Rule  may  be amended from time to time, or any
similar  rule  or  regulation  hereafter  adopted  by  the  Commission  having
substantially  the  same  effect  as  such  Rule.

          "Securities  Act"  means  the  Securities  Act  of  1933,  as amended.
           ---------------

          "Special  Counsel" means any special counsel to the Holders, for which
           ----------------
the  Holders  will  be  reimbursed  by  the  Company  pursuant  to  Section  4.

     2.    Shelf  Registration.
           --------------------

          On or prior to the Filing Date the Company shall prepare and file with
the  Commission  a  "shelf"  Registration  Statement  covering  all  Registrable
Securities  for  an  offering  to be made on a continuous basis pursuant to Rule
415.  The  Registration Statement shall be on Form S-3 (except if the Company is
not then eligible to register for resale the Registrable Securities on Form S-3,
in  which  case  such  registration  shall  be  on  another  appropriate form in
accordance  herewith).  The  Company  shall  (i) not permit any securities other
than  the  Registrable  Securities to be included in the Registration Statement,
(ii)  not file any registration statement with the Commission registering shares

                                      -3-
<PAGE>
of  Common  Stock  issued  or  issuable  pursuant  to  a  Subsequent  Financing
consummated  prior  to  the  sixtieth  (60th)  day  immediately  following  the
Effectiveness  Date  until  sixty (60) days after the Registration Statement has
been  declared  effective  by  the  Commission and (iii) use its best efforts to
cause  the  Registration Statement to be declared effective under the Securities
Act  (including  filing  with  the  Commission  a  request  for  acceleration of
effectiveness  in accordance with Rule 12dl-2 promulgated under the Exchange Act
within  five  (5) Business Days of the date that the Company is notified (orally
or  in  writing,  whichever  is  earlier)  by the Commission that a Registration
Statement  will  not be "reviewed," or not be subject to further review, as soon
as  practicable  after  the  filing  thereof,  but  in  any  event  prior to the
Effectiveness  Date,  and  to  keep  such  Registration  Statement  continuously
effective  under the Securities Act until such date as is the earlier of (x) the
date when all Registrable Securities covered by such Registration Statement have
been  sold  or  (y)  the  date  on  which the Registrable Securities may be sold
without  any restriction pursuant to Rule 144(k) as determined by the counsel to
the  Company  pursuant  to  a written opinion letter, addressed to the Company's
transfer  agent  to  such effect (the "Effectiveness Period").  If an additional
                                       --------------------
Registration  Statement  is  required  to  be filed because the actual number of
shares  of  Common  Stock  into  which  the  Debentures  are convertible and the
Warrants  are exercisable exceeds the number of shares of Common Stock initially
registered in respect of the Conversion Shares and the Warrant Shares based upon
the  computation  on  the  Closing  Date, the Company shall have forty-five (45)
Business  Days  to  file such additional Registration Statement, and the Company
shall use its best efforts to cause such additional Registration Statement to be
declared  effective by the Commission as soon as possible, but in no event later
than  ninety  (90)  days  after  filing.

     3.     Registration  Procedures.
            -------------------------

          In  connection  with the Company's registration obligations hereunder,
the  Company  shall:

          (a)     Prepare and file with the Commission on or prior to the Filing
Date,  a  Registration  Statement  on  Form  S-3  (or if the Company is not then
eligible  to  register  for  resale  the Registrable Securities on Form S-3 such
registration  shall  be  on  another appropriate form in accordance herewith) in
accordance  with  the  method or methods of distribution thereof as specified by
the  Holders  (except  if  otherwise  directed  by  the  Holders), and cause the
Registration  Statement  to  become  effective  and remain effective as provided
herein;  provided,  however,  that not less than five (5) Business Days prior to
         --------   -------
the  filing  of  the  Registration  Statement  or  any related Prospectus or any
amendment  or  supplement  thereto  (including  any  document  that  would  be
incorporated therein by reference), the Company shall (i) furnish to the Holders
and  any  Special  Counsel,  copies  of all such documents proposed to be filed,
which  documents (other than those incorporated by reference) will be subject to
the review of such Holders and such Special Counsel, and (ii) cause its officers
and  directors,  counsel and independent certified public accountants to respond
to such inquiries as shall be necessary, in the reasonable opinion of counsel to
such  Holders,  to  conduct a reasonable investigation within the meaning of the
Securities  Act.  The  Company  shall not file the Registration Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders of
a majority of the Registrable Securities or any Special Counsel shall reasonably

                                      -4-
<PAGE>
object  in  writing  within  three  (3)  Business Days of their receipt thereof.

          (b)     (i)  Prepare  and  file  with  the Commission such amendments,
including  post-effective  amendments,  to  the Registration Statement as may be
necessary  to  keep  the Registration Statement continuously effective as to the
applicable  Registrable  Securities for the Effectiveness Period and prepare and
file  with  the  Commission  such additional Registration Statements in order to
register  for resale under the Securities Act all of the Registrable Securities;
(ii)  cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to
Rule  424  (or  any  similar  provisions  then  in  force) promulgated under the
Securities  Act;  (iii) respond as promptly as possible to any comments received
from  the Commission with respect to the Registration Statement or any amendment
thereto and as promptly as possible provide the Holders true and complete copies
of  all  correspondence  from and to the Commission relating to the Registration
Statement;  and  (iv) comply in all material respects with the provisions of the
Securities  Act  and  the  Exchange  Act  with respect to the disposition of all
Registrable  Securities  covered  by  the  Registration  Statement  during  the
applicable  period in accordance with the intended methods of disposition by the
Holders thereof set forth in the Registration Statement as so amended or in such
Prospectus  as  so  supplemented.

          (c)     Notify  the  Holders  of Registrable Securities to be sold and
any  Special  Counsel as promptly as possible (and, in the case of (i)(A) below,
not  less than five (5) days prior to such filing) and (if requested by any such
Person)  confirm  such  notice  in  writing  no  later than one (1) Business Day
following  the  day  (i)(A)  when  a  Prospectus or any Prospectus supplement or
post-effective  amendment to the Registration Statement is proposed to be filed;
(B) when the Commission notifies the Company whether there will be a "review" of
such  Registration  Statement and whenever the Commission comments in writing on
such  Registration  Statement and (C) with respect to the Registration Statement
or any post-effective amendment, when the same has become effective; (ii) of any
request  by  the Commission or any other Federal or state governmental authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional  information;  (iii)  of  the  issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement covering any or
all  of the Registrable Securities or the initiation of any Proceedings for that
purpose;  (iv)  if  at any time any of the representations and warranties of the
Company  contained  in  any  agreement contemplated hereby ceases to be true and
correct  in  all  material  respects;  (v)  of the receipt by the Company of any
notification  with  respect  to the suspension of the qualification or exemption
from  qualification  of  any  of  the  Registrable  Securities  for  sale in any
jurisdiction,  or  the  initiation  or  threatening  of  any Proceeding for such
purpose;  and  (vi) of the occurrence of any event that makes any statement made
in  the  Registration  Statement  or  Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that  requires  any revisions to the Registration Statement, Prospectus or other
documents  so that, in the case of the Registration Statement or the Prospectus,
as  the case may be, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make  the statements therein, in the light of the circumstances under which they
were  made,  not  misleading.

                                      -5-
<PAGE>
          (d)     Use  its best efforts to avoid the issuance of, or, if issued,
obtain  the  withdrawal  of,  (i)  any order suspending the effectiveness of the
Registration Statement or (ii) any suspension of the qualification (or exemption
from  qualification)  of  any  of  the  Registrable  Securities  for sale in any
jurisdiction,  at  the  earliest  practicable  moment.

          (e)     If  requested  by the Holders of a majority in interest of the
Registrable  Securities,  (i) promptly incorporate in a Prospectus supplement or
post-effective  amendment  to the Registration Statement such information as the
Company  reasonably agrees should be included therein and (ii) make all required
filings  of  such Prospectus supplement or such post-effective amendment as soon
as  practicable after the Company has received notification of the matters to be
incorporated  in  such  Prospectus  supplement  or  post-effective  amendment.

          (f)     Furnish  to  each  Holder  and  any  Special  Counsel, without
charge,  at  least  one  conformed  copy of each Registration Statement and each
amendment  thereto,  including financial statements and schedules, all documents
incorporated or deemed to be incorporated therein by reference, and all exhibits
to  the extent requested by such Person (including those previously furnished or
incorporated  by reference) promptly after the filing of such documents with the
Commission.

          (g)     Promptly  deliver  to  each  Holder  and  any Special Counsel,
without charge, as many copies of the Prospectus or Prospectuses (including each
form of prospectus) and each amendment or supplement thereto as such Persons may
reasonably  request;  and  the  Company  hereby  consents  to  the  use  of such
Prospectus  and  each  amendment  or  supplement  thereto by each of the selling
Holders  in  connection with the offering and sale of the Registrable Securities
covered  by  such  Prospectus  and  any  amendment  or  supplement  thereto.

          (h)     Prior  to  any  public offering of Registrable Securities, use
its  best  efforts  to register or qualify or cooperate with the selling Holders
and any Special Counsel in connection with the registration or qualification (or
exemption  from  such  registration  or  qualification)  of  such  Registrable
Securities  for  offer  and  sale  under the securities or Blue Sky laws of such
jurisdictions  within  the  United  States as any Holder requests in writing, to
keep  each such registration or qualification (or exemption therefrom) effective
during  the  Effectiveness  Period  and  to  do any and all other acts or things
necessary  or  advisable  to enable the disposition in such jurisdictions of the
Registrable  Securities  covered by a Registration Statement; provided, however,
                                                              --------  -------
that  the  Company  shall not be required to qualify generally to do business in
any  jurisdiction  where  it is not then so qualified or to take any action that
would subject it to general service of process in any such jurisdiction where it
is  not  then  so subject or subject the Company to any material tax in any such
jurisdiction  where  it  is  not  then  so  subject.

          (i)     Cooperate  with  the  Holders  to  facilitate  the  timely
preparation  and delivery of certificates representing Registrable Securities to
be  sold  pursuant to a Registration Statement, which certificates shall be free
of  all  restrictive legends, and to enable such Registrable Securities to be in
such  denominations  and  registered  in such names as any Holder may request at
least  two  (2)  Business  Days  prior  to  any  sale of Registrable Securities.

                                      -6-
<PAGE>
          (j)     Upon  the  occurrence  of  any  event  contemplated by Section
3(c)(vi),  as promptly as possible, prepare a supplement or amendment, including
a post-effective amendment, to the Registration Statement or a supplement to the
related  Prospectus  or  any  document incorporated or deemed to be incorporated
therein  by  reference,  and  file  any  other  required  document  so  that, as
thereafter  delivered,  neither  the  Registration Statement nor such Prospectus
will  contain an untrue statement of a material fact or omit to state a material
fact  required to be stated therein or necessary to make the statements therein,
in  the  light  of the circumstances under which they were made, not misleading.

          (k)     Use  its  best  efforts  to  cause  all Registrable Securities
relating  to  such  Registration  Statement  to  be listed on the American Stock
Exchange,  The Nasdaq Small Cap Market, The Nasdaq SmallCap Market, OTC Bulletin
Board  and any other securities exchange, quotation system or market, if any, on
which  similar  securities  issued  by  the  Company are then listed as and when
required  pursuant  to  the  Purchase  Agreement.

          (l)     Comply  in all material respects with all applicable rules and
regulations  of  the  Commission  and  make  generally available to its security
holders  earning  statements  satisfying  the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period  (or  90  days  after  the end of any 12-month period if such period is a
fiscal  year)  commencing  on  the  first day of the first fiscal quarter of the
Company  after the effective date of the Registration Statement, which statement
shall  conform  to  the  requirements  of  Rule  158.

          (m)     The  Company may require each selling Holder to furnish to the
Company  information  regarding  such  Holder  and  the  distribution  of  such
Registrable Securities as is required by law to be disclosed in the Registration
Statement,  and  the  Company may exclude from such registration the Registrable
Securities of any such Holder who unreasonably fails to furnish such information
within  a  reasonable  time  after  receiving  such  request.

          If  the  Registration  Statement  refers  to  any  Holder  by  name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (if such reference to such Holder by name or otherwise
is  not  required  by  the Securities Act or any similar federal statute then in
force)  the  deletion  of  the  reference  to  such  Holder  in any amendment or
supplement  to  the  Registration  Statement filed or prepared subsequent to the
time  that  such  reference  ceases  to  be  required.

          Each  Holder  covenants  and  agrees  that  (i)  it  will not sell any
Registrable  Securities  under  the Registration Statement until it has received
copies  of  the  Prospectus  as  then amended or supplemented as contemplated in
Section  3(g)  and  notice from the Company that such Registration Statement and
any  post-effective  amendments thereto have become effective as contemplated by
Section 3(c) and (ii) it and its officers, directors or Affiliates, if any, will
comply  with  the  prospectus  delivery  requirements  of  the Securities Act as
applicable  to  them in connection with sales of Registrable Securities pursuant
to  the  Registration  Statement.

          Each  Holder  agrees by its acquisition of such Registrable Securities
that,  upon  receipt of a notice from the Company of the occurrence of any event

                                      -7-
<PAGE>
of  the  kind  described  in  Section  3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v) or
3(c)(vi), such Holder will forthwith discontinue disposition of such Registrable
Securities  under  the Registration Statement until such Holder's receipt of the
copies  of  the  supplemented  Prospectus  and/or amended Registration Statement
contemplated  by  Section 3(j), or until it is advised in writing (the "Advice")
                                                                        ------
by the Company that the use of the applicable Prospectus may be resumed, and, in
either  case, has received copies of any additional or supplemental filings that
are incorporated or deemed to be incorporated by reference in such Prospectus or
Registration  Statement.

          (n)     If  (i) there is material non-public information regarding the
Company  which  the  Company's  Board  of  Directors  (the  "Board")  reasonably
                                                             -----
determines  not  to  be in the Company's best interest to disclose and which the
Company  is  not  otherwise required to disclose, or (ii) there is a significant
business  opportunity  (including,  but  not  limited  to,  the  acquisition  or
disposition  of  assets  (other  than in the ordinary course of business) or any
merger,  consolidation,  tender offer or other similar transaction) available to
the  Company  which  the  Board reasonably determines not to be in the Company's
best  interest  to  disclose, then the Company may postpone or suspend filing or
effectiveness  of  a  registration  statement  for  a  period  not  to exceed 20
consecutive  days,  provided  that  the  Company may not postpone or suspend its
obligation under this Section 3(n) for more than 45 days in the aggregate during
any  12 month period; provided, however, that no such postponement or suspension
                      --------  -------
shall  be  permitted for consecutive 20 day periods, arising out of the same set
of  facts,  circumstances  or  transactions.

     4.    Registration  Expenses.
           ----------------------

          All  fees  and  expenses  incident to the performance of or compliance
with  this  Agreement  by  the Company, except as and to the extent specified in
Section  4,  shall  be  borne  by  the  Company  whether or not the Registration
Statement  is  filed  or  becomes  effective  and whether or not any Registrable
Securities  are  sold  pursuant  to  the  Registration  Statement.  The fees and
expenses  referred  to  in  the  foregoing  sentence  shall  include,  without
limitation, (i) all registration and filing fees (including, without limitation,
fees  and  expenses  (A)  with  respect  to filings required to be made with the
American  Stock  Exchange, The Nasdaq Small Cap Market and each other securities
exchange  or market on which Registrable Securities are required hereunder to be
listed,  (B)  with  respect  to  filings  required to be made with the Small Cap
Association of Securities Dealers, Inc. and the NASD Regulation, Inc. and (C) in
compliance  with  state  securities  or  Blue  Sky  laws  (including,  without
limitation, fees and disbursements of counsel for the Holders in connection with
Blue  Sky  qualifications of the Registrable Securities and determination of the
eligibility  of the Registrable Securities for investment under the laws of such
jurisdictions  as  the  Holders  of  a  majority  of  Registrable Securities may
designate)),  (ii) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities and of printing prospectuses if
the  printing  of  prospectuses is requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) Securities Act liability insurance, if the
Company  so  desires  such  insurance,  and  (v)  fees and expenses of all other
Persons  retained  by  the  Company  in  connection with the consummation of the
transactions  contemplated  by this Agreement, including, without limitation, he
Company's  independent public accountants (including the expenses of any comfort
letters  or costs associated with the delivery by independent public accountants
of  a  comfort  letter  or  comfort letters).  In addition, the Company shall be

                                      -8-
<PAGE>
responsible  for  all  of  its internal expenses incurred in connection with the
consummation  of  the  transactions  contemplated  by this Agreement (including,
without  limitation,  all  salaries  and  expenses of its officers and employees
performing  legal  or  accounting  duties), the expense of any annual audit, the
fees  and  expenses  incurred  in connection with the listing of the Registrable
Securities  on  any  securities  exchange  as  required  hereunder.

     5.    Indemnification.
           ---------------

          (a)     Indemnification  by  the  Company.  The  Company  shall,
                  ---------------------------------
notwithstanding  any  termination of this Agreement, indemnify and hold harmless
each  Holder,  the  officers,  directors, agents, brokers (including brokers who
offer  and  sell  Registrable Securities as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and  employees of each of them, each Person who controls any such Holder (within
the  meaning  of  Section 15 of the Securities Act or Section 20 of the Exchange
Act)  and the officers, directors, agents and employees of each such controlling
Person,  to the fullest extent permitted by applicable law, from and against any
and  all  losses,  claims,  damages,  liabilities,  costs  (including,  without
limitation,  costs  of  preparation  and  attorneys'  fees)  and  expenses
(collectively, "Losses"), as incurred, asserted by a third party and arising out
                ------
of  or  relating  to  any  untrue or alleged untrue statement of a material fact
contained  in  the  Registration  Statement,  any  Prospectus  or  any  form  of
prospectus  or  in  any  amendment  or  supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of
a  material  fact  required  to  be  stated  therein  or  necessary  to make the
statements  therein  (in  the  case  of  any Prospectus or form of prospectus or
supplement  thereto,  in  the  light  of the circumstances under which they were
made)  not  misleading,  except to the extent, but only to the extent, that such
untrue  statements or omissions are based solely upon information regarding such
Holder  or  such  other Indemnified Party furnished in writing to the Company by
such  Holder  expressly for use therein, which information was reasonably relied
on by the Company for use therein or to the extent that such information relates
to  such  Holder or such Holder's proposed method of distribution of Registrable
Securities  and  was  reviewed  and expressly approved in writing by such Holder
expressly for use in the Registration Statement, such Prospectus or such form of
Prospectus  or in any amendment or supplement thereto.  The Company shall notify
the  Holders  promptly of the institution, threat or assertion of any Proceeding
of  which  the Company is aware in connection with the transactions contemplated
by  this  Agreement.

          (b)     Indemnification  by Holders.  Each Holder shall, severally and
                  ---------------------------
not  jointly,  indemnify and hold harmless the Company, the directors, officers,
agents  and  employees, each Person who controls the Company (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors,  officers,  agents  or  employees of such controlling Persons, to the
fullest  extent  permitted  by  applicable  law, from and against all Losses (as
determined  by a court of competent jurisdiction in a final judgment not subject
to  appeal or review), as incurred, asserted by a third party and arising solely
out of or based solely upon any untrue or alleged untrue statement of a material
fact  contained  in  the  Registration Statement, any Prospectus, or any form of
prospectus,  or  arising  solely  out  of or based solely upon any omission of a
material  fact required to be stated therein or necessary to make the statements

                                      -9-
<PAGE>
therein  (in  the  case  of  any  Prospectus or form of prospectus or supplement
thereto,  in  the  light  of  the  circumstances under which they were made) not
misleading, to the extent, but only to the extent, that such untrue statement or
omission  is contained in any information so furnished in writing by such Holder
or  other  Indemnified  Party  to  the Company specifically for inclusion in the
Registration  Statement  or  such  Prospectus  and  that  such  information  was
reasonably  relied  upon  by  the Company for use in the Registration Statement,
such  Prospectus  or  such  form  of  prospectus  or  to  the  extent  that such
information  relates  to  such  Holder  or  such  Holder's  proposed  method  of
distribution  of  Registrable Securities and was reviewed and expressly approved
in  writing by such Holder expressly for use in the Registration Statement, such
Prospectus  or  such form of Prospectus.  Notwithstanding anything herein to the
contrary,  in no event shall the liability of any Holder hereunder be greater in
amount  than  the dollar amount of the net proceeds received by such Holder upon
the  sale  of  the  Registrable  Securities  giving rise to such indemnification
obligation.

          (c)     Conduct  of  Indemnification  Proceedings.  If  any Proceeding
                  -----------------------------------------
shall  be brought or asserted against any Person entitled to indemnity hereunder
(an  "Indemnified  Party"),  such  Indemnified  Party  promptly shall notify the
      ------------------
Person  from  whom indemnity is sought (the "Indemnifying Party) in writing, and
                                             ------------------
the  Indemnifying  Party  shall  assume  the  defense  thereof,  including  the
employment  of  counsel reasonably satisfactory to the Indemnified Party and the
payment  of  all  fees and expenses incurred in connection with defense thereof;
provided,  that  the  failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this  Agreement,  except  (and  only)  to  the  extent  that it shall be finally
determined  by  a  court  of  competent jurisdiction (which determination is not
subject  to  appeal  or further review) that such failure shall have proximately
and  materially  adversely  prejudiced  the  Indemnifying  Party.

          An  Indemnified  Party shall have the right to employ separate counsel
in  any  such Proceeding and to participate in the defense thereof, but the fees
and  expenses  of such counsel shall be at the expense of such Indemnified Party
or  Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees  and  expenses; or (2) the Indemnifying Party shall have failed promptly to
assume  the  defense  of  such  Proceeding  and  to  employ  counsel  reasonably
satisfactory  to such Indemnified Party in any such Proceeding; or (3) the named
parties  to  any  such Proceeding (including any impleaded parties) include both
such  Indemnified  Party  and the Indemnifying Party, and such Indemnified Party
shall  have been advised by counsel (which shall be reasonably acceptable to the
Indemnifying  Party)  that a conflict of interest is likely to exist if the same
counsel  were to represent such Indemnified Party and the Indemnifying Party (in
which case, if such Indemnified Party notifies the Indemnifying Party in writing
that  it  elects  to  employ separate counsel at the expense of the Indemnifying
Party,  the  Indemnifying  Party  shall not have the right to assume the defense
thereof  and  such  counsel  shall be at the expense of the Indemnifying Party).
The  Indemnifying  Party  shall  not  be  liable  for any settlement of any such
Proceeding  effected  without  its  written  consent, which consent shall not be
unreasonably  withheld  or  delayed.  No  Indemnifying  Party shall, without the
prior  written  consent  of  the Indemnified Party, effect any settlement of any
pending  Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party from
all  liability  on  claims  that  are  the  subject  matter  of such Proceeding.

          All  fees  and expenses of the Indemnified Party (including reasonable
fees  and  expenses  to  the extent incurred in connection with investigating or
preparing  to  defend  such  Proceeding  in  a manner not inconsistent with this

                                      -10-
<PAGE>
Section)  shall  be  paid to the Indemnified Party, as incurred, within ten (10)
Business Days of written notice thereof to the Indemnifying Party (regardless of
whether it is ultimately determined that an Indemnified Party is not entitled to
indemnification  hereunder;  provided,  that  the Indemnifying Party may require
such  Indemnified  Party to undertake to reimburse all such fees and expenses to
the  extent  it  is finally judicially determined that such Indemnified Party is
not  entitled  to  indemnification  hereunder).

          (d)     Contribution.  If  a  claim  for indemnification under Section
                  ------------
5(a)  or  5(b)  is  unavailable  to an Indemnified Party because of a failure or
refusal  of  a  governmental  authority  to  enforce  such  indemnification  in
accordance  with  its terms (by reason of public policy or otherwise), then each
Indemnifying  Party,  in  lieu  of  indemnifying  such  Indemnified Party, shall
contribute  to  the amount paid or payable by such Indemnified Party as a result
of  such  Losses,  in  such proportion as is appropriate to reflect the relative
fault  of  the  Indemnifying  Party and Indemnified Party in connection with the
actions,  statements  or  omissions  that resulted in such Losses as well as any
other  relevant  equitable  considerations.  The  relative  fault  of  such
Indemnifying  Party  and  Indemnified Party shall be determined by reference to,
among  other  things,  whether  any  action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied by,
such Indemnifying, Party or Indemnified Party, and the parties' relative intent,
knowledge,  access  to  information  and  opportunity to correct or prevent such
action,  statement  or  omission.  The  amount  paid  or payable by a party as a
result  of any Losses shall be deemed to include, subject to the limitations set
forth  in  Section  5(c),  any reasonable attorneys' or other reasonable fees or
expenses  incurred by such party in connection with any Proceeding to the extent
such  party  would  have  been  indemnified  for  such  fees  or expenses if the
indemnification  provided  for  in  this  Section was available to such party in
accordance  with  its  terms.

          The  parties  hereto  agree that it would not be just and equitable if
contribution  pursuant  to  this  Section  5(d)  were  determined  by  pro  rata
allocation  or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
No  Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f)  of  the Securities Act) shall be entitled to contribution from any Person
who  was  not  guilty  of  such  fraudulent  misrepresentation.

          The  indemnity  and  contribution agreements contained in this Section
are  in  addition to any liability that the Indemnifying Parties may have to the
Indemnified  Parties

     6.   Rule  144.
          ---------

          As  long  as  any  Holder  owns Shares, Conversion Shares, Warrants or
Warrant  Shares,  the  Company covenants to timely file (or obtain extensions in
respect  thereof  and  file  within  the  applicable  grace  period) all reports
required  to  be  filed by the Company after the date hereof pursuant to Section
13(a) or 15(d) of the Exchange Act and to promptly furnish the Holders with true

                                      -11-
<PAGE>
and  complete  copies  of  all such filings.  As long as any Holder owns Shares,
Conversion Shares, Warrants or Warrant Shares, if the Company is not required to
file  reports  pursuant  to  Section 13(a) or 15(d) of the Exchange Act, it will
prepare  and  furnish  to  the Holders and make publicly available in accordance
with  Rule  144(c)  promulgated  under  the  Securities Act annual and quarterly
financial  statements, together with a discussion and analysis of such financial
statements  in  form  and  substance  substantially  similar to those that would
otherwise  be  required  to  be included in reports required by Section 13(a) or
15(d) of the Exchange Act, as well as any other information required thereby, in
the  time  period  that  such filings would have been required to have been made
under  the  Exchange  Act.  The Company further covenants that it will take such
further  action as any Holder may reasonably request, all to the extent required
from  time  to  time to enable such Person to sell Conversion Shares and Warrant
Shares  without  registration  under the Securities Act within the limitation of
the  exemptions  provided  by  Rule  144  promulgated  under the Securities Act,
including  providing  any  legal opinions relating to such sale pursuant to Rule
144.  Upon the request of any Holder, the Company shall deliver to such Holder a
written certification of a duly authorized officer as to whether it has complied
with  such  requirements.

     7.     Miscellaneous.
            -------------

          (a)     Remedies.  In  the  event  of  a breach by the Company or by a
                  --------
Holder,  of  any  of  their obligations under this Agreement, each Holder or the
Company,  as  the  case  may  be,  in addition to being entitled to exercise all
rights  granted  by law and under this Agreement, including recovery of damages,
will  be  entitled  to  specific performance of its rights under this Agreement.
The  Company  and  each  Holder  agree  that  monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach by it of any
of the provisions of this Agreement and hereby further agrees that, in the event
of any action for specific performance in respect of such breach, it shall waive
the  defense  that  a  remedy  at  law  would  be  adequate.

          (b)     No  Inconsistent  Agreements.  Neither  the Company nor any of
                  ----------------------------
its  subsidiaries  has,  as  of  the  date  hereof entered into and currently in
effect,  nor  shall the Company or any of its subsidiaries, on or after the date
of  this Agreement, enter into any agreement with respect to its securities that
is  inconsistent  with  the  rights  granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof.  Except as disclosed in Schedule
                                                                        --------
2.1(c)  of  the  Purchase  Agreement,  neither  the  Company  nor  any  of  its
------
subsidiaries  has  previously  entered  into  any  agreement currently in effect
granting  any  registration  rights with respect to any of its securities to any
Person.  Without  limiting  the generality of the foregoing, without the written
consent  of  the  Holders  of  a  majority  of  the then outstanding Registrable
Securities,  the  Company shall not grant to any Person the right to request the
Company  to  register  any  securities  of  the Company under the Securities Act
unless  the rights so granted are subject in all respects to the prior rights in

                                      -12-
<PAGE>
full of the Holders set forth herein, and are not otherwise in conflict with the
provisions  of  this  Agreement.

          (c)     No Piggyback on Registrations.  Neither the Company nor any of
                  -----------------------------
its security holders (other than the Holders in such capacity pursuant hereto or
as  disclosed  in  Schedule  2.1(c)  of  the  Purchase  Agreement)  may  include
                   ----------------
securities  of  the Company in the Registration Statement, and the Company shall
not  after  the date hereof enter into any agreement providing such right to any
of  its  securityholders, unless the right so granted is subject in all respects
to  the  prior  rights  in  full  of  the  Holders  set forth herein, and is not
otherwise  in  conflict  with  the  provisions  of  this  Agreement.

          (d)     Piggy-Back Registrations.  If at any time when there is not an
                  ------------------------
effective  Registration Statement covering (i) Conversion Shares or (ii) Warrant
Shares,  the  Company  shall determine to prepare and file with the Commission a
registration  statement  relating  to  an  offering  for  its own account or the
account  of  others  under  the  Securities Act of any of its equity securities,
other  than  on  Form  S-4 or Form S-8 (each as promulgated under the Securities
Act) or their then equivalents relating to equity securities to be issued solely
in  connection  with  any  acquisition  of  any  entity  or  business  or equity
securities  issuable  in  connection with stock option or other employee benefit
plans,  the  Company shall send to each holder of Registrable Securities written
notice  of  such  determination and, if within thirty (30) days after receipt of
such  notice,  any such holder shall so request in writing, (which request shall
specify the Registrable Securities intended to be disposed of by the Purchaser),
the  Company  will  cause  the  registration  under  the  Securities  Act of all
Registrable  Securities  which  the Company has been so requested to register by
the holder, to the extent requisite to permit the disposition of the Registrable
Securities  so  to  be  registered,  provided  that  if at any time after giving
written  notice  of  its  intention  to register any securities and prior to the
effective  date  of  the  registration  statement  filed in connection with such
registration,  the  Company shall determine for any reason not to register or to
delay  registration  of  such securities, the Company may, at its election, give
written  notice  of such determination to such holder and, thereupon, (i) in the
case  of a determination not to register, shall be relieved of its obligation to
register  any  Registrable  Securities in connection with such registration (but
not  from  its  obligation to pay expenses in accordance with Section 4 hereof),
and (ii) in the case of a determination to delay registering, shall be permitted
to  delay  registering  any  Registrable Securities being registered pursuant to
this  Section  7(d)  for  the same period as the delay in registering such other
securities.  The Company shall include in such registration statement all or any
part  of  such  Registrable  Securities  such  holder requests to be registered;
provided,  however,  that  the  Company  shall  not  be required to register any
--------   -------
Registrable  Securities pursuant to this Section 7(d) that are eligible for sale
pursuant  to  Rule 144(k) of the Securities Act.  In the case of an underwritten
public  offering,  if  the  managing  underwriter(s)  or  underwriter(s)  should
reasonably  object  to  the  inclusion  of  the  Registrable  Securities in such
registration statement, then if the Company after consultation with the managing
underwriter  should  reasonably determine that the inclusion of such Registrable
Securities,  would materially adversely affect the offering contemplated in such
registration  statement, and based on such determination recommends inclusion in
such  registration  statement  of fewer or none of the Registrable Securities of
the  Holders,  then  (x)  the  number  of  Registrable Securities of the Holders
included  in  such  registration  statement shall be reduced pro-rata among such
Holders  (based  upon  the  number  of  Registrable  Securities  requested to be
included  in  the  registration),  if  the  Company  after consultation with the
underwriter(s)  recommends the inclusion of fewer Registrable Securities, or (y)
none  of  the  Registrable  Securities  of the Holders shall be included in such
registration  statement,  if  the  Company  after  consultation  with  the
underwriter(s)  recommends the inclusion of none of such Registrable Securities;
provided, however, that if Securities are being offered for the account of other
--------  -------
persons or entities as well as the Company, such reduction shall not represent a
greater  fraction of the number of Registrable Securities intended to be offered
by  the  Holders  than  the fraction of similar reductions imposed on such other
persons  or  entities  (other  than  the  Company).

                                      -13-
<PAGE>
          (e)     Failure  to File Registration Statement and Other Events.  The
                  --------------------------------------------------------
Company  and  the  Purchaser  agree  that the Holders will suffer damages if the
Registration  Statement  is  not  filed  on  or prior to the Filing Date and not
declared  effective  by the Commission on or prior to the Effectiveness Date and
maintained in the manner contemplated herein during the Effectiveness Time or if
certain  other  events occur.  The Company and the Holders further agree that it
would  not  be  feasible to ascertain the extent of such damages with precision.
Accordingly,  if  (A) the Registration Statement is not filed on or prior to the
Filing  Date,  or is not declared effective by the Commission on or prior to the
Effectiveness  Date  (or  in  the  event an additional Registration Statement is
filed  because  the  actual  number  of  shares  of  Common Stock into which the
Debentures  are  convertible and the Warrants are exercisable exceeds the number
of  shares  of  Common  Stock  initially  registered  is  not filed and declared
effective  with  the  time  periods  set forth in Section 2), or (B) the Company
fails  to file with the Commission a request for acceleration in accordance with
Rule  12dl-2 promulgated under the Exchange Act within five (5) Business Days of
the  date  that  the  Company  is  notified  (orally or in writing, whichever is
earlier) by the Commission that a Registration Statement will not be "reviewed,"
or  not  subject  to  further review, or (C) the Registration Statement is filed
with  and  declared  effective  by  the  Commission  but thereafter ceases to be
effective  as  to all Registrable Securities at any time prior to the expiration
of the Effectiveness Period, without being succeeded immediately by a subsequent
Registration  Statement  filed with and declared effective by the Commission, or
(D)  trading  in  the  Common Stock shall be suspended or if the Common Stock is
delisted  from  the New York Stock Exchange, American Stock Exchange, The Nasdaq
National  Market,  The Nasdaq Small-Cap Market or the OTC Bulletin Board for any
reason for more than three Business Days in the aggregate, or (E) the conversion
rights  of the Holders are suspended for any reason, or (F) the Company breaches
in  a  material respect any covenant or other material term or condition to this
Agreement,  the  Purchase  Agreement  (other  than  a representation or warranty
contained  therein)  or  any  other  agreement,  document,  certificate or other
instrument delivered in connection with the transactions contemplated hereby and
thereby,  and  such  breach  continues for a period of thirty days after written
notice thereof to the Company, or (G) the Company has breached Section 3(n) (any
such  failure  or  breach  being  referred to as an "Event," and for purposes of
                                                     -----
clauses  (A)  and  (E)  the  date on which such Event occurs, or for purposes of
clause  (B)  the date on which such five day period is exceeded, or for purposes
of  clause  (C) after more than fifteen Business Days, or for purposes of clause
(D)  the date on which such three Business Day period is exceeded, or for clause
(F)  the  date on which such thirty day period is exceeded, being referred to as
"Event  Date"), the Company shall pay, at the option of the Holder, an amount in
 -----------
cash or shares of Common Stock, as liquidated damages to each Holder equal to 2%
for  the  first  thirty-day  period  and  3% per thirty-day period thereafter or
portion  thereof  of  the principal amount of the Debentures held by such Holder
plus  the  principal  amount  of  any Debentures that have been converted to the
extent  any  of  the Conversion Shares issued upon such conversion have not been
sold from the Event Date until the applicable Event is cured; provided, however,
                                                              --------  -------
that notwithstanding anything contained in this Section 7(e) to the contrary, no
liquidated  damages shall be payable to the Holder as a result of any Event with
respect  only  to  the Warrant or the Warrant Shares and not with respect to the
Debenture  or  the  Conversion  Shares.  Payments  to  be  made pursuant to this
Section  7(e)  shall  be  due and payable immediately upon demand in immediately
available  funds.   If  the  Holder elects to be paid in shares of Common Stock,

                                      -14-
<PAGE>
the  number  of  such  shares  of  Common Stock shall be based on the liquidated
damage  amount  divided  by  the  Conversion Rate (as defined in the Debenture).

          (f)     Amendments  and  Waivers.  The  provisions  of this Agreement,
                  ------------------------
including  the  provisions  of  this  sentence,  may not be amended, modified or
supplemented,  and  waivers or consents to departures from the provisions hereof
may  not be given, unless the same shall be in writing and signed by the Company
and  each of the Holders.  Notwithstanding the foregoing, a waiver or consent to
depart  from  the  provisions  hereof  with  respect  to  a  matter that relates
exclusively  to  the  rights of Holders and that does not directly or indirectly
affect  the  rights  of  other  Holders  may  be  given by Holders of at least a
majority  of the Registrable Securities to which such waiver or consent relates;
provided,  however,  that  the  provisions  of this sentence may not be amended,
--------   -------
modified,  or  supplemented  except  in  accordance  with  the provisions of the
immediately  preceding  sentence.

          (g)     Notices.  Any  and  all  notices  or  other  communications or
                  -------
deliveries  required  or  permitted to be provided hereunder shall be in writing
and  shall  be  deemed  given  and  effective  on the earlier of (i) the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  telephone  number  specified  for notice prior to 5:00 p.m., New York
City  time,  on  a  Business  Day,  (ii)  the  Business  Day  after  the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  telephone  number specified for notice later than 5:00 p.m., New York
City  time, on any date and earlier than 11:59 p.m., New York City time, on such
date,  (iii)  the  Business  Day  following  the  date  of  mailing,  if sent by
nationally  recognized  overnight  courier service or (iv) actual receipt by the
party  to  whom  such  notice  is  required to be given.  The addresses for such
communications  shall  be  with  respect to each Holder at its address set forth
under  its  name  on Schedule 1 attached hereto, or with respect to the Company,
                     ----------
addressed to:

                    Appiant Technologies, Inc.
                    6663  Owens  Drive
                    Pleastanton,  California  94588
                    Attention:  Chief  Financial  Officer
                    Telecopier: (925)  847-3806
                    Telephone:  (925)  251-3200

or to such other address or addresses or facsimile number or numbers as any such
party  may  most recently have designated in writing to the other parties hereto
by  such  notice.  Copies  of notices to the Company shall be sent to Morrison &
Foerster  LLP,  755  Page  Mill Road, Palo Alto, CA 94304, Attention: Stephen J.
Schrader:  Telecopier:  (650)  494-0792.

          (h)     Successors  and Assigns.  This Agreement shall be binding upon
                  -----------------------
and  inure  to  the  benefit  of  the parties and their successors and permitted
assigns  and  shall  inure  to the benefit of each Holder and its successors and
assigns.  The  Company  may  not  assign  this Agreement or any of its rights or
obligations  hereunder  without  the prior written consent of each Holder.  Each
Purchaser  may  assign  its rights hereunder in the manner and to the Persons as
permitted  under  the  Purchase  Agreement.

                                      -15-
<PAGE>
          (i)     Assignment  of Registration Rights.  The rights of each Holder
                  ----------------------------------
hereunder,  including  the  right  to  have  the  Company  register  for  resale
Registrable  Securities in accordance with the terms of this Agreement, shall be
automatically  assignable  by each Holder to any Affiliate of such Holder or any
other  Holder  or  Affiliate  of  any  other  Holder  of all or a portion of the
Debentures  or  the Registrable Securities if:  (i) the Holder agrees in writing
with  the  transferee  or  assignee  to  assign  such rights, and a copy of such
agreement  is  furnished  to  the  Company  within  a reasonable time after such
assignment, (ii) the Company is, within a reasonable time after such transfer or
assignment,  furnished  with  written notice of (a) the name and address of such
transferee  or  assignee,  and  (b)  the  securities  with respect to which such
registration  rights  are  being  transferred  or assigned, (iii) following such
transfer  or  assignment  the  further  disposition  of  such  securities by the
transferee  or  assignees  is restricted under the Securities Act and applicable
state  securities  laws,  (iv)  at  or  before the time the Company receives the
written  notice  contemplated  by clause (ii) of this Section, the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions
of this Agreement, (v) such transfer shall have been made in accordance with the
applicable  requirements  of  the  Purchase Agreement, and (vi) at least 100,000
shares of Registrable Securities (appropriately adjusted for any stock dividend,
split  or  combination  of  the  Common  Stock)  are  being  transferred to such
transferee  or  assignee  in  connection  with  such  assignment  of rights.  In
addition, each Holder shall have the right to assign its rights hereunder to any
other  Person with the prior written consent of the Company, which consent shall
not  be  unreasonably  withheld.  The  rights  to  assignment shall apply to the
Holders  (and  to  subsequent)  successors  and  assigns.

          (j)     Counterparts.  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.

          (k)     Governing  Law.  This  Agreement  shall  be  governed  by  and
                  --------------
construed  in  accordance with the laws of the State of New York, without regard
to  principles  of  conflicts  of  law  thereof.

          (l)     Cumulative  Remedies.  The  remedies  provided  herein  are
                  --------------------
cumulative  and  not  exclusive  of  any  remedies  provided  by  law.

          (m)     Severability.  If any term, provision, covenant or restriction
                  ------------
of  this  Agreement is held to be invalid, illegal, void or unenforceable in any
respect,  the remainder of the terms, provisions, covenants and restrictions set
forth  herein  shall  remain  in  full  force  and effect and shall in no way be
affected,  impaired  or  invalidated,  and  the  parties  hereto shall use their
reasonable  efforts  to find and employ an alternative means to achieve the same
or  substantially  the same result as that contemplated by such term, provision,
covenant  or  restriction.  It  is  hereby  stipulated  and  declared  to be the
intention  of  the  parties  that  they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter  declared  invalid,  illegal,  void  or  unenforceable.

                                      -16-
<PAGE>
          (n)     Headings.  The  headings  herein  are for convenience only, do
                  --------
not  constitute  a  part  of  this Agreement and shall not be deemed to limit or
affect  any  of  the  provisions  hereof.

          (o)     Shares  Held  by  the Company and its Affiliates. Whenever the
                  ------------------------------------------------
consent  or  approval  of  Holders  of  a  specified  percentage  of Registrable
Securities  is required hereunder, Registrable Securities held by the Company or
its  Affiliates  (other  than any Holder or transferees or successors or assigns
thereof  if  such  Holder  is  deemed to be an Affiliate solely by reason of its
holdings  of  such  Registrable  Securities) shall not be counted in determining
whether  such  consent  or  approval  was  given by the Holders of such required
percentage.

     IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights
Agreement  to  be duly executed by their respective authorized persons as of the
date  first  indicated  above.

                                APPIANT TECHNOLOGIES, INC.

                                By:
                                    ------------------------------
                                    Name:
                                    Title:

                                [INVESTOR]

                                By:
                                    ------------------------------
                                    Name:
                                    Title:

                                [INVESTOR]

                                By:
                                    ------------------------------
                                    Name:
                                    Title:

                                      -17-
<PAGE>SECURITY AGREEMENT

     SECURITY  AGREEMENT  (as  amended,  restated,  supplemented  or  otherwise
modified from time to time and including all attachments, exhibits and schedules
hereto,  the  "Agreement"),  dated  as  of  April  19,  2002,  made  by  APPIANT
               ---------
TECHNOLOGIES,  INC.,  a  Delaware  corporation  (the  "Grantor") in favor of the
parties  set  forth  on Schedule B hereto (collectively, the "Secured Parties").

     WHEREAS,  the  Grantor has issued separate debentures dated the date hereof
to  each  of  the  Secured Parties (the "Debentures") in the aggregate principal
amount evidenced by such Debentures pursuant to a Debenture and Warrant Purchase
Agreement by and among the Grantor and the Secured Parties dated the date hereof
(the  "Debenture  and  Warrant  Purchase  Agreement");  and

     WHEREAS, it is a condition precedent to the Secured Parties making the loan
evidenced  by the Debentures to the Grantor that the Grantor execute and deliver
to  the  Secured  Parties  a  security  agreement providing for the grant to the
Secured Parties of a continuing security interest in the accounts receivable and
personal property of the Grantor, all in substantially the form hereof to secure
all  Obligations  (hereinafter  defined);

     NOW,  THEREFORE,  the  parties  agree  as  follows:

                             ARTICLE I.  DEFINITIONS

     Section  1.1.     Definition  of  Terms Used Herein.  All capitalized terms
                       ----------------------------------
used  herein  and  not  defined  herein  have  the  respective meanings provided
therefor  in the Debenture and Warrant Purchase Agreement.  All terms defined in
the Uniform Commercial Code (hereinafter defined) as in effect from time to time
and  used herein and not otherwise defined herein (whether or not such terms are
capitalized)  have  the  same  definitions  herein  as  specified  therein.

     Section  1.2.     Definition of Certain Terms Used Herein.  As used herein,
                       ---------------------------------------
the  following  terms  have  the  following  meanings:

     "Collateral"  means  all  accounts  receivable and all personal and fixture
      ----------
property of every kind and nature, including, without limitation, all furniture,
fixtures,  equipment,  raw  materials,  inventory,  or  other  goods,  accounts,
contract rights, rights to the payment of money, insurance refund claims and all
other  insurance  claims  and  proceeds,  tort claims, chattel paper, documents,
instruments,  securities and other investment property, deposit accounts, rights
to  proceeds of letters of credit and all general intangibles including, without
limitation,  all  tax  refund  claims,  license  fees, patents, patent licenses,
patent  applications,  trademarks,  trademark  licenses, trademark applications,
trade  names,  copyrights, copyright licenses, copyright applications, rights to
sue  and  recover  for  past infringement of patents, trademarks and copyrights,
computer  programs,  computer  software,  engineering  drawings,  service marks,
customer  lists,  goodwill, and all licenses, permits, agreements of any kind or
nature pursuant to which the Grantor possesses, uses or has authority to possess
or  use  property  (whether tangible or intangible) of others or others possess,
use  or  have  authority  to  possess  or  use  property  (whether  tangible  or

<PAGE>
                                                                               2

intangible)  of  the  Grantor,  and  all  recorded  data  of any kind or nature,
regardless  of  the medium of recording including, without limitation, all books
and  records,  software, writings, plans, specifications and schematics; and all
proceeds  and  products  of  each  of  the  foregoing.

     "Debentures"  has the meaning assigned to such term in the first recital of
      ----------
this  Agreement.

     "Default" means any event or circumstance which, with the giving of notice,
      -------
the  lapse  of time, or both, would (if not cured, waived, or otherwise remedied
during  such  time)  constitute  an  Event  of  Default.

     "Event  of  Default" has the meaning specified in the Debenture and Warrant
      ------------------
Purchase  Agreement.

     "Indemnitees"  has  the  meaning  specified  in  Section  7.5(b).
      -----------

     "Lien"  means: (i) any interest in property securing an obligation owed to,
      ----
or  a  claim  by,  a  Person  other than the owner of the property, whether such
interest  is  based  on  the  common  law, statute, or contract, and including a
security  interest,  charge,  claim,  or  lien  arising from a mortgage, deed of
trust,  encumbrance,  pledge,  hypothecation,  assignment,  deposit arrangement,
agreement,  security  agreement,  conditional  sale or trust receipt or a lease,
consignment  or  bailment for security purposes; (ii) to the extent not included
under  clause  (i),  any  reservation,  exception,  encroachment,  easement,
       -----------
right-of-way,  covenant,  condition, restriction, lease or other title exception
or  encumbrance  affecting property; and (iii) any contingent or other agreement
to  provide  any  of  the  foregoing.

     "Obligations"  means  all indebtedness, liabilities, obligations, covenants
      -----------
and  duties  of  the  Grantor  to  the Secured Parties of every kind, nature and
description,  direct  or  indirect,  absolute  or  contingent,  due  or not due,
contractual or tortious, liquidated or unliquidated, arising by operation of law
or  otherwise, now existing of hereafter arising under or in connection with the
Debenture  and  Warrant  Purchase  Agreement  or  this  Agreement.

     "Registered  Organization"  means an entity formed by filing a registration
      ------------------------
document  with  a  United  States Governmental Authority, such as a corporation,
limited  partnership  or  limited  liability  company.

     "Revised  Article  9"  has  the  meaning  specified  in  Section  7.14.
      -------------------

     "Security  Interest"  has  the  meaning  specified  in  Section 2.1 of this
      ------------------
Agreement.

     "Uniform  Commercial  Code"  means the Uniform Commercial Code from time to
      -------------------------
time  in  effect  in  the  State  of  New  York.

                         ARTICLE II.  SECURITY INTEREST

     Section  2.1.     Security  Interest.  As  security  for  the  payment  and
                       ------------------
performance,  in  full  of  the  Obligations,

<PAGE>
                                                                               3

and  any extensions, renewals, modifications or refinancings of the Obligations,
the  Grantor  hereby  bargains,  sells,  conveys, assigns, sets over, mortgages,
pledges, hypothecates and transfers to the Secured Parties, and hereby grants to
the  Secured Parties, its successors and assigns, a security interest in, all of
such  Grantor's  right,  title and interest in, to and under the Collateral (the
"Security  Interest").

     Section  2.2.     No  Assumption  of  Liability.  The  Security Interest is
                       -----------------------------
granted as security only and shall not subject the Secured Parties to, or in any
way  alter or modify, any obligation or liability of the Grantor with respect to
or  arising  out  of  the  Collateral.

                  ARTICLE III.  REPRESENTATIONS AND WARRANTIES

     The  Grantor  represents  and  warrants  to  the  Secured  Parties  that:

     Section  3.1.     Title  and  Authority.  The  Grantor  has  good and valid
                       ---------------------
rights  in and title to the Collateral with respect to which it has purported to
grant a security interest hereunder and has full power and authority to grant to
the  Secured  Parties  the Security Interest and to execute, deliver and perform
its  obligations  in  accordance  with  the terms of this Agreement, without the
consent or approval of any other Person other than any consent or approval which
has  been  obtained.

     Section  3.2.     Filings;  Actions  to Achieve Perfection.  Fully executed
                       ----------------------------------------
Uniform  Commercial  Code  financing  statements  (including fixture filings, as
applicable) or other appropriate filings, recordings or registrations containing
a  description  of the Collateral have been delivered to the Secured Parties for
filing  in  each United States governmental, municipal or other office specified
in  Schedule A, which are all the filings, recordings and registrations that are
    ----------
necessary  to  publish  notice of and protect the validity of and to establish a
legal,  valid and perfected security interest in favor of the Secured Parties in
respect  of  all  Collateral  in which the Security Interest may be perfected by
filing,  recording  or  registration  in  the  United  States  (or any political
subdivision  thereof)  and  its  territories  and possessions, and no further or
subsequent  filing,  refiling,  recording,  rerecording,  registration  or
reregistration  is  necessary in any such jurisdiction, except as provided under
applicable  law  with  respect  to the filing of continuation statements or with
respect  to the filing of amendments or new filings to reflect the change of the
Grantor's  name,  location, identity or corporate structure.  The Grantor's name
is listed in the preamble of this Agreement identically to how it appears on its
certificate  of  incorporation  or  other  organizational  documents.

     legal  and  valid  security  interest  in  all  the Collateral securing the
payment  and  performance  of  the  Obligations, (b) subject only to the filings
described  in Section 3.2 above, a perfected security interest in all Collateral
in  which  a  security  interest  may  be  perfected  by  filing,  recording  or
registration  in  the  United  States pursuant to the Uniform Commercial Code or
other applicable law in the United States (or any political subdivision thereof)
and  its  territories  and possessions or any other country, state or nation (or
any political subdivision thereof).  The Security Interest is and shall be prior
to  any  other  Lien  on  any  of  the  Collateral.

<PAGE>
                                                                               4

     Section 3.4.     Absence of Other Liens.  The Grantor's Collateral is owned
                      ----------------------
by  the  Grantor free and clear of any Lien.  Without limiting the foregoing and
except as set forth on Schedule 3.4 to this Agreement, the Grantor has not filed
                       ------------
or  consented to any filing described in Schedule A in favor of any Person other
                                         ----------
than the Secured Parties, nor permitted the granting or assignment of a security
interest  or  permitted perfection of any security interest in the Collateral in
favor  of  any  Person  other  than  the  Secured Parties.  The Grantor's having
possession of all instruments and cash constituting Collateral from time to time
and  the filing of financing statements in the offices referred to in Schedule A
                                                                      ----------
hereto  results  in  the  perfection  of  such security interest.  Such security
interest  is,  or  in  the case of Collateral in which the Grantor obtain rights
after  the  date hereof, will be, a perfected, first priority security interest.
Such notices, filings and all other action necessary or desirable to perfect and
protect  such  security  interest  have  been  duly  taken.

     Section  3.5.     Valid and Binding Obligation.  This Agreement constitutes
                       ----------------------------
the  legal, valid and binding obligation of the Grantor, enforceable against the
Grantor  in  accordance  with  its  terms,  except  (i) as limited by applicable
bankruptcy,  insolvency,  reorganization,  moratorium, and other laws of general
application  affecting  enforcement  of  creditors'  rights  generally,  (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies, and (iii) to the extent the indemnification
provisions  contained  in this Agreement may be limited by applicable federal or
state  securities  laws.

                             ARTICLE IV.  COVENANTS

     Section 4.1.     Change of Name; Location of Collateral; Place of Business,
                      ----------------------------------------------------------
State  of  Formation  or  Organization.
---------------------------------------

          (a)     The  Grantor  shall  notify  the  Secured  Parties  in writing
     promptly  of any change (i) in its corporate name or in any trade name used
     to  identify  it  in the conduct of its business or in the ownership of its
     properties,  (ii)  in  the  location  of  its  chief  executive office, its
     principal  place  of  business,  any  office in which it maintains books or
     records  relating to Collateral owned by it (including the establishment of
     any  such  new  office  or  facility),  (iii)  in its identity or corporate
     structure  such  that a filed filing made under the Uniform Commercial Code
     becomes  misleading  or (iv) in its Federal Taxpayer Identification Number.
     In  extension  of the foregoing, the Grantor shall not 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  Secured  Parties  to  continue at all times following such
     change  to  have  a  valid,  legal  and  perfected  first priority security
     interest  in  all  the  Collateral.

          (b)     Without  limiting  Section  4.1(a),  without the prior written
     consent  of  the  Secured  Parties  in each instance, the Grantor shall not
     change  its  (i) principal residence, if it is an individual, (ii) place of
     business,  if  it  has  only  one place of business and is not a Registered
     Organization,  (iii)  principal  place of business, if it has more than one
     place  of  business  and is not a Registered Organization, or (iv) state of
     incorporation,  formation  or  organization,  if  it  is  a  Registered
     Organization.

<PAGE>
                                                                               5

     Section  4.2.     Records.  The Grantor shall maintain, at its own cost and
                       --------
expense, such complete and accurate records with respect to the Collateral owned
by  it  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 the Grantor is engaged, but in any event to include
complete  accounting  records indicating all payments and proceeds received with
respect to any part of the Collateral, and, at such time or times as the Secured
Parties  may  reasonably request, promptly to prepare and deliver to the Secured
Parties  a  duly certified schedule or schedules in form and detail satisfactory
to  the Secured Parties showing the identity, amount and location of any and all
Collateral.

     Section  4.3.     Periodic  Certification; Notice of Changes.  In the event
                       ------------------------------------------
there  should  at  any  time  be  any  change in the information represented and
warranted  herein  or in the documents and instruments executed and delivered in
connection herewith, the Grantor shall immediately notify the Secured Parties in
writing  of  such  change  (this notice requirement shall be in extension of and
shall  not  limit  or  relieve  the  Grantor  of any other covenants hereunder).

     Section  4.4.     Protection  of  Security.  The  Grantor shall, at its own
                       -------------------------
cost  and  expense,  take  any  and all actions necessary to defend title to the
Collateral  against  all  persons  and  to  defend  the Security Interest of the
Secured  Parties  in  the  Collateral and the priority thereof against any Lien.

     Section 4.5.     Inspection and Verification.  The Secured Parties and such
                      ---------------------------
persons  as the Secured Parties may reasonably designate shall have the right to
inspect  the  Collateral,  all records related thereto (and to make extracts and
copies  from  such records) and the premises upon which any of the Collateral is
located,  to  discuss the Grantor's affairs with the officers of the Grantor and
its  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, including, in the case of collateral
in the possession of any third Person, by contacting any account debtor or third
Person possessing such Collateral for the purpose of making such a verification.
Out-of-pocket  expenses in connection with any inspections by representatives of
the  Secured Parties shall be (a) the obligations of the Grantor with respect to
any  inspection during the continuance of a Default or an Event of Default or in
which  a  Default  or an Event of Default is discovered or (b) the obligation of
the  Secured  Parties  in  any  other  case.

     Section  4.6.     Taxes;  Encumbrances.  At its option, the Secured Parties
                       ---------------------
may  discharge, Liens at any time levied or placed on the Collateral and may pay
for the maintenance and preservation of the Collateral to the extent the Grantor
fails to do so and the Grantor shall reimburse the Secured Parties on demand for
any  payment made or any expense incurred by the Secured Parties pursuant to the
foregoing  authorization;  provided, however, that nothing in this Section shall
be  interpreted as excusing the Grantor from the performance of, or imposing any
obligation  on  the  Secured  Parties to cure or perform, any covenants or other
obligation  of  the

<PAGE>
                                                                               6

Grantor with respect to any Lien or maintenance or preservation of Collateral as
set  forth  herein.

     Section  4.7.     Use and Disposition of Collateral.  The Grantor shall not
                       ---------------------------------
make  or  permit  to  be  made  an  assignment,  pledge  or hypothecation of any
Collateral  or  shall  grant  any  other Lien in respect of the Collateral.  The
Grantor  shall  not make or permit to be made any transfer of any Collateral and
the  Grantor  shall remain at all times in possession of the Collateral owned by
it.

     Section  4.8.     Insurance/Notice  of Loss.  Within a reasonable period of
                       --------------------------
time  following  the  date of this Agreement, Grantor, at its own expense, shall
maintain or cause to be maintained insurance covering physical loss or damage to
the  Collateral.  In  extension  of  the  foregoing and without limitation, such
insurance  shall be payable to each of the Secured Parties as loss payee under a
"standard"  loss  payee  clause,  and  each  Secured Party shall be listed as an
"additional  insured"  on Grantor's general liability insurance.  Such insurance
shall  not  be  terminated,  cancelled  or not renewed for any reason, including
non-payment  of  insurance  premiums, unless the insurer shall have provided the
Secured  Parties  at  least  30  days prior written notice.  Grantor irrevocably
makes,  constitutes  and  appoints  Intercoastal  Financial  Services  Corp.
("Intercoastal")  (and  all  officers,  employees  or  agents  designated  by
  ------------
Intercoastal) as its true and lawful agent and attorney-in-fact for the purpose,
during the continuance of an Event of Default, of making, settling and adjusting
claims  in respect of Collateral under policies of insurance, endorsing the name
of  Grantor  on  any  check,  draft, instrument or other item of payment for the
proceeds  of  such  policies  of insurance and for making all determinations and
decisions  with respect thereto.  In the event that Grantor at any time or times
shall  fail  to  obtain  or  maintain  any of the policies of insurance required
hereby  or  to  pay  any  premium in whole or part relating thereto, the Secured
Parties may, without waiving or releasing any obligation or liability of Grantor
hereunder or any Event of Default, in their sole discretion, obtain and maintain
such  policies of insurance and pay such premium and take any other actions with
respect  thereto  as  the Secured Parties deem advisable.  All sums disbursed by
the Secured Parties in connection and in accordance with this Section, including
reasonable  attorneys'  fees,  court  costs, expenses and other charges relating
thereto,  shall  be  payable  upon demand, by Grantor to the Secured Parties and
shall  be  additional Obligations secured hereby.  Grantor shall promptly notify
the  Secured  Parties if any material portion of the Collateral owned or held by
Grantor  is  damaged  or  destroyed.  The  proceeds of any casualty insurance in
respect  of  any  casualty loss of any of the Collateral shall (i) so long as no
Default  or  Event  of  Default  has occurred and is continuing, be disbursed to
Grantor for direct application by Grantor solely to the repair or replacement of
Grantor's property so damaged or destroyed, and (ii) in all other circumstances,
be  held  by  the  Secured  Parties as cash collateral for the Obligations.  The
Secured Parties may, at their sole option, disburse from time to time all or any
part of such proceeds so held as cash collateral, upon such terms and conditions
as  the  Secured Parties may reasonably prescribe, for direct application by the
Secured  Parties  solely  to  the repair or replacement of Grantor's property so
damaged  or  destroyed, or Grantor may apply all or any part of such proceeds to
the  Obligations.

     Section  4.9.     Legend.  Grantor  shall  legend,  in  form  and  manner
                       ------
satisfactory  to  the  Secured  Parties, its accounts and its books, records and
documents  evidencing or pertaining thereto with an appropriate reference to the
fact  that  such accounts have been assigned to the Secured Parties and that the
Secured  Parties  have  a  security  interest  therein.

                ARTICLE V.  FURTHER ASSURANCES; POWER OF ATTORNEY

     Section  5.1.     Further  Assurances.  Grantor  shall, at its own expense,
                       -------------------
execute,  acknowledge,  deliver  and  cause  to  be  duly filed all such further
instruments  and  documents  and

<PAGE>
                                                                               7

take  all  such  actions as the Secured Parties may from time to time reasonably
request  to  better  assure, preserve, protect and perfect the Security Interest
and  the  rights  and remedies created hereby, including the payment of any fees
and  taxes  required  in  connection  with  the  execution  and delivery of this
Agreement, the granting of the Security Interest and the filing of any financing
statements (including fixture filings) or other documents in connection herewith
or  therewith.  If  any  amount  payable  under or in connection with any of the
Collateral  shall  be  or  become  evidenced  by  any  promissory  note or other
instrument,  such  note or instrument shall be immediately pledged and delivered
to  the  Secured  Parties, duly endorsed in a manner satisfactory to the Secured
Parties.

     Section  5.2.     Power  of  Attorney.
                       --------------------

          (a)     Grantor  hereby  irrevocably  (as  a  power  coupled  with  an
interest)  constitutes and appoints Intercoastal (and all officers, employees or
agents  designated  by  Intercoastal),  its  attorney-in-fact with full power of
substitution,  for  the  benefit  of  the  Secured  Parties,

               (i)   to take all appropriate action and to execute all documents
     and  instruments  that  may  be  necessary  or  desirable to accomplish the
     purposes  of  this  Agreement,  and  without limiting the generality of the
     foregoing,  Grantor  hereby  grants the power to file one or more financing
     statements  (including  fixture  filings), continuation statements, filings
     with  the  United  States  Patent  and  Trademark  Office  or United States
     Copyright  Office  (or  any  successor  office or any similar office in any
     other  country)  or  other  documents  for  the  purpose  of  perfecting,
     confirming,  continuing,  enforcing  or  protecting  the  Security Interest
     granted by Grantor, without the signature of Grantor, and naming Grantor as
     debtor  and  the  Secured  Parties  as  secured  parties;  and

               (ii)   upon the occurrence and during the continuance of an Event
     of  Default  (i)  to  receive,  endorse,  assign and/or deliver any and all
     Debentures, acceptances, checks, drafts, money orders or other evidences of
     payment  relating  to  the  Collateral or any part thereof; (ii) to demand,
     collect,  receive  payment  of,  give  receipt  for and give discharges and
     releases of all or any of the Collateral; (iii) to sign the name of Grantor
     on any invoice or bill of lading relating to any of the Collateral; (iv) to
     send  verifications  of  accounts to any account debtor or any other Person
     liable  for  an  account;  (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  all  or  any  of the
     Collateral  or  to enforce any rights in respect of any Collateral; (vi) to
     settle,  compromise,  compound,  adjust  or  defend  any  actions, suits or
     proceeding  relating  to  all  or  any of the Collateral; and (vii) to use,
     sell,  assign,  transfer,  pledge,  make  any  agreement with respect to or
     otherwise  deal with all or any of the Collateral, and to do all other acts
     and  things necessary to carry out the purposes of this Agreement, as fully
     and completely as though the Secured Parties were the absolute owner of the
     Collateral  for  all  purposes;  provided,  however,  that  nothing  herein
     contained shall be construed as requiring or obligating the Secured Parties
     to  make  any  commitment  or  to  make  any  inquiry  as  to the nature or
     sufficiency  of  any payment received by the Secured Parties, or to present
     or  file  any  claim  or  notice, or to take any action with respect to the
     Collateral  or  any  part  thereof  or  the  moneys due or to become due in
     respect  thereof  or  any  property  covered  thereby,  and

<PAGE>
     no  action taken or omitted to be taken by the Secured Parties with respect
     to  the  Collateral  or  any  part  thereof shall give rise to any defense,
     counterclaim  or  offset  in  favor  of  Grantor  or to any claim or action
     against  the  Secured  Parties.

               (b)     The  provisions of this Article shall in no event relieve
Grantor  of  any  of its obligations hereunder with respect to the Collateral or
any  part  thereof or impose any obligation on the Secured Parties to proceed in
any  particular manner with respect to the Collateral or any part thereof, or in
any  way limit the exercise by the Secured Parties of any other or further right
which it may have on the date of this Agreement or hereafter, whether hereunder,
by  law  or  otherwise.

                              ARTICLE VI.  REMEDIES

     Section  6.1.     Remedies  upon  Default.
                       ------------------------

          (a)     Upon  the occurrence and during the continuance of an Event of
     Default,  Grantor  agrees  to  deliver  each  item of its Collateral to the
     Secured  Parties on demand, and it is agreed that the Secured Parties shall
     have  the  right to take any of or all the following actions at the same or
     different  times:  with  or without legal process and with or without prior
     notice  or demand for performance, to take possession of the Collateral and
     without  liability  for trespass to enter any premises where the Collateral
     may  be  located  for  the  purpose of taking possession of or removing the
     Collateral,  exercise  Grantor's  right  to  bill  and  receive payment for
     completed work and, generally, to exercise any and all rights afforded to a
     secured  party  under  the Uniform Commercial Code or other applicable law.
     Without  limiting  the generality of the foregoing, Grantor agrees that the
     Secured Parties shall have the right, subject to the mandatory requirements
     of  applicable  law, to sell or otherwise dispose of all or any part of the
     Collateral,  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
     Secured  Parties  shall  deem  appropriate.  The  Secured  Parties shall be
     authorized at any such sale (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 the 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 Secured Parties 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
     Grantor,  and  Grantor  hereby  waives (to the extent permitted by law) all
     rights  of  redemption,  stay and appraisal which Grantor now has or may at
     any  time  in the future have under any rule of law or statute now existing
     or  hereafter  enacted.

          (b)     The  Secured Parties shall give Grantor ten (10) days' written
     notice  (which  Grantor  agrees  is reasonable notice within the meaning of
     Section  9-504(3)  of  the Uniform Commercial Code) of the Secured Parties'
     intention  to  make  any  sale of Collateral. 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 the

<PAGE>
                                                                               9

     Collateral,  or  portion  thereof,  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 Secured
     Parties  may fix and state in the notice (if any) of such sale. At any such
     sale, the Collateral, or portion thereof, to be sold may be sold in one lot
     as an entirety or in separate parcels, as the Secured Parties may (in their
     sole  and  absolute discretion) determine. The Secured Parties 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 Secured Parties 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 all or any part of the
     Collateral is made on credit or for future delivery, the Collateral so sold
     may  be retained by the Secured Parties until the sale price is paid by the
     purchaser  or  purchasers  thereof, but the Secured Parties 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 law, private) sale made pursuant to this Section,
     the  Secured Parties may bid for or purchase, free (to the extent permitted
     by  law)  from any right of redemption, stay, valuation or appraisal on the
     part  of  Grantor (all said rights being also hereby waived and released to
     the  extent  permitted  by law), the Collateral or any part thereof offered
     for  sale  and  may make payment on account thereof by using any claim then
     due and payable to the Secured Parties from Grantor as a credit against the
     purchase price, and the Secured Parties may, upon compliance with the terms
     of  sale,  hold,  retain  and  dispose  of  such  property  without further
     accountability  to  Grantor  therefor.  For  purposes  hereof,  a  written
     agreement  to  purchase  the  Collateral  or  any  portion thereof shall be
     treated  as  a sale thereof; the Secured Parties shall be free to carry out
     such  sale  pursuant to such agreement and Grantor shall not be entitled to
     the  return  of  the  Collateral  or  any  portion thereof subject thereto,
     notwithstanding  the fact that after the Secured Parties 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 Secured Parties may proceed by a suit or
     suits  at  law  or  in  equity  to foreclose this Agreement and to sell the
     Collateral  or  any  portion  thereof pursuant to a judgment or decree of a
     court  or  courts having competent jurisdiction or pursuant to a proceeding
     by  a  court-appointed  receiver.

     Section  6.2.     Application of Proceeds.  The Secured Parties shall apply
                       -----------------------
the  proceeds  of  any  collection  or  sale  of  the Collateral, as well as any
Collateral  consisting  of  cash,  as  follows:

          (a)     FIRST,  to  the  payment of all costs and expenses incurred by
the  Secured  Parties in connection with such collection or sale or otherwise in
connection  with  this  Agreement or any of the Obligations, including all court
costs  and  the fees and expenses of its agents and legal counsel, and any other
costs  or  expenses  incurred  in  connection  with the exercise of any right or
remedy  hereunder,  under  the Debenture and Warrant Purchase Agreement or under
the  Debentures;

<PAGE>
                                                                              10

          (b)     SECOND,  to  the  payment  in  full  of  the  Obligations; and

          (c)     THIRD, to Grantor, its successors or assigns, or to whomsoever
may  be  lawfully  entitled  to  receive  the  same,  or as a court of competent
jurisdiction  may  otherwise  direct.

     Subject  to  the  foregoing,  the  Secured  Parties  shall  have  absolute
discretion as to the time of application of such proceeds, moneys or balances in
accordance  with this Agreement.  Upon any sale of the Collateral by the Secured
Parties  (including  pursuant  to  a power of sale granted by statute or under a
judicial  proceeding),  the  receipt of any such proceeds, moneys or balances by
the  Secured  Parties  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 Secured Parties or such officer or
be  answerable  in  any  way  for  the  misapplication  thereof.

     Section  6.3.     Grant  of  License to Use Intellectual Property.  For the
                       -----------------------------------------------
purpose  of  enabling  the Secured Parties to exercise rights and remedies under
this  Article  at such time as the Secured Parties shall be lawfully entitled to
exercise  such rights and remedies, Grantor hereby grants to the Secured Parties
an irrevocable, non-exclusive license (exercisable without payment of royalty or
other  compensation  to  Grantor)  to  use,  license  or  sub-license any of the
Collateral  consisting  of intellectual property now owned or hereafter acquired
by  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 Secured Parties
may be exercised, at the option of the Secured Parties, only upon the occurrence
and  during  the continuation of an Event of Default (after giving effect to any
applicable  cure  periods).

                           ARTICLE VII.  MISCELLANEOUS

     Section  7.1.     Notices.  All communications and notices hereunder to the
                       --------
Grantor  and  to  the  Secured  Parties  shall  (except  as  otherwise expressly
permitted  herein)  be  in  writing and delivered to the Grantor or the Lenders'
Representative,  as  the  case  may be, as provided in the Debenture and Warrant
Purchase  Agreement.

     Section  7.2.     Security  Interest  Absolute.  All  rights of the Secured
                       ----------------------------
Parties  hereunder,  the  Security  Interest  and  all  obligations  of  Grantor
hereunder  shall  be  absolute and unconditional irrespective of (a) any lack of
validity  or enforceability of the Debenture and Warrant Purchase Agreement, the
Debentures,  any  agreement  with respect to any of the Obligations or any other
agreement  or instrument relating to any of the foregoing, (b) 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 amendment or waiver of or any consent to any departure
from  the  Debenture and Warrant Purchase Agreement, the Debentures or any other
agreement or instrument, (c) any exchange, release or non-perfection of any Lien
on  other  collateral, or any release or amendment or waiver of or consent under
or  departure  from  any  guarantee,  securing or guaranteeing all or any of the
Obligations,  or  (d)  any  other circumstance that might otherwise constitute a
defense  available  to, or a discharge of, Grantor in respect of the Obligations
or  this  Agreement.

<PAGE>
                                                                              11

     Section  7.3.     Survival  of  Agreement.  All  covenants,  agreements,
                       -----------------------
representations and warranties made by Grantor herein and in the certificates or
other  instruments  prepared or delivered in connection with or pursuant to this
Agreement  shall  be  considered to have been relied upon by the Secured Parties
and  shall  survive the making of the loan and the execution and delivery to the
Secured  Parties  of the Debentures, regardless of any investigation made by the
Secured  Parties or on their behalf; and shall continue in full force and effect
until  this  Agreement  shall  terminate.

     Section 7.4.     Binding Effect; Several Agreement; Successors and Assigns.
                      ---------------------------------------------------------
This  Agreement  shall  become effective as to Grantor when a counterpart hereof
executed  on  behalf of Grantor shall have been delivered to the Secured Parties
and  a  counterpart  hereof  shall  have  been executed on behalf of the Secured
Parties,  and  thereafter  shall be binding upon Grantor and the Secured Parties
and  their  respective successors and assigns, and shall inure to the benefit of
Grantor, the Secured Parties and their respective successors and assigns, except
that  Grantor  shall  not  have  the  right  to assign or transfer its rights or
obligations  hereunder or any interest herein or in the Collateral (and any such
assignment  or  transfer shall be void) except as expressly contemplated by this
Agreement,  the  Debenture  and  Warrant  Purchase  Agreement or the Debentures.

     Section  7.5.     Secured  Parties'  Fees  and  Expense;  Indemnification.
                       --------------------------------------------------------

          (a)     Grantor  agrees  to pay upon demand to the Secured Parties the
     amount  of  any and all reasonable expenses, including all reasonable fees,
     disbursements  and  other  charges  of  its  counsel  and of any experts or
     agents,  which  the  Secured  Parties  may incur in connection with (i) the
     administration  of this Agreement (including the customary fees and charges
     of the Secured Parties for any audits conducted by it or on its behalf with
     respect to the accounts inventory), (ii) the custody or preservation of, or
     the  sale  of,  collection  from  or  other  realization  upon  any  of the
     Collateral,  (iii)  the  exercise,  enforcement or protection of any of the
     rights  of  the Secured Parties hereunder or (iv) the failure of Grantor to
     perform  or  observe  any  of  the  provisions  hereof.

          (b)     Without  limitation  of  its indemnification obligations under
     the  Debenture  and Warrant Purchase Agreement, Grantor agrees to indemnify
     the Secured Parties and the agent, contractors and employees of each of the
     foregoing  (collectively, the "Indemnitees") against, and hold each of them
                                    -----------
     harmless from, any and all losses, claims, damages, liabilities and related
     expenses,  including  reasonable  fees,  disbursements and other charges of
     counsel, incurred by or asserted against any of them arising out of, in any
     way  connected  with,  or  as  a  result  of,  the  execution, delivery, or
     performance  of  this Agreement or any agreement or instrument contemplated
     hereby  or  any  claim,  litigation,  investigation  or proceeding relating
     hereto  or  to  the  Collateral,  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 a court of competent jurisdiction by
     final and nonappealable judgment to have resulted from the gross negligence
     or  willful  misconduct  of  such  Indemnitee.

<PAGE>
                                                                              12

          (c)     Any  such  amounts  payable  as  provided  hereunder  shall be
     additional Obligations secured hereby. The provisions of this Section shall
     remain operative and in full force and effect regardless of the termination
     of  this  Agreement,  the  Debenture  and Warrant Purchase Agreement or the
     Debentures,  the  consummation of the transactions contemplated hereby, the
     repayment  of any of the Obligations, the invalidity or unenforceability of
     any term or provision of this Agreement, the Debenture and Warrant Purchase
     Agreement  or  the Debentures, or any investigation made by or on behalf of
     the Secured Parties. All amounts due under this Section shall be payable on
     written  demand  therefor.

     Section  7.6.     GOVERNING  LAW.  THIS  AGREEMENT  SHALL  BE  CONSTRUED IN
                       --------------
ACCORDANCE  WITH  AND  GOVERNED  BY  THE  LAWS  OF  THE  STATE  OF  NEW  YORK.

     Section  7.7.     Waivers;  Amendment.
                       --------------------

          (a)     No  failure  or delay of the Secured Parties 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 Secured Parties hereunder and under the Debenture and
Warrant Purchase Agreement are cumulative and are not exclusive of any rights or
remedies  that  they  would otherwise have.  No waiver of any provisions of this
Agreement,  the  Debenture  and  Warrant Purchase Agreement or the Debentures or
consent  to  any  departure by Grantor therefrom shall in any event be effective
unless  the same shall be permitted by paragraph (b) below, and then such waiver
or  consent shall be effective only in the specific instance and for the purpose
for  which  given.  No  notice to or demand on Grantor in any case shall entitle
Grantor  to  any  other  or  further  notice  or  demand  in  similar  or  other
circumstances.

          (b)     Neither this Agreement nor any provision hereof may be waived,
amended  or  modified  except pursuant to an agreement or agreements, in writing
entered  into  by  the  Secured  Parties  and  Grantor.

     Section 7.8.     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  RESPECT  OF  ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER  OR  IN CONNECTION WITH THIS AGREEMENT, THE DEBENTURE AND WARRANT PURCHASE
AGREEMENT  OR  THE  DEBENTURES.  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 AGREEMENT, THE DEBENTURE AND
WARRANT  PURCHASE  AGREEMENT  AND THE DEBENTURES, AS APPLICABLE, BY, AMONG OTHER
THINGS,  THE  MUTUAL  WAIVERS  AND  CERTIFICATIONS  IN  THIS  SECTION.

<PAGE>
                                                                              13

     Section  7.9.     Severability.  In  the  event  any  one  or  more  of the
                       ------------
provisions  contained  in  this  Agreement  should  be  held invalid, illegal or
unenforceable  in  any respect, the validity, legality and enforceability of the
remaining  provisions  contained  herein  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.

     Section  7.10.     Counterparts.  This  Agreement may be executed in two or
                        ------------
more  counterparts,  each of which shall constitute an original but all of which
when  taken  together  shall  constitute  but one contract.  Each party shall be
entitled  to rely on a facsimile signature of any other party hereunder as if it
were  an  original.

     Section  7.11.     Jurisdiction;  Consent  to  Service  of  Process.
                        -------------------------------------------------

          (a)     Grantor  hereby  irrevocably  and unconditionally submits, for
     itself  and  its property, to the nonexclusive jurisdiction of any New York
     State court or Federal court of the United States of America sitting in New
     York  City,  and  any  appellate  court  from any thereof, in any action or
     proceeding  arising out of or relating to this Agreement, the Debenture and
     Warrant  Purchase  Agreement  or  the  Debentures,  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,  the  Debenture and Warrant Purchase Agreement or the Debentures
     against  Grantor  or  its  properties  in  the  courts of any jurisdiction.

          (b)     Grantor  hereby irrevocably and unconditionally waives, to the
     fullest extent it may legally and effectively do so, any objection which it
     may  now  or  hereafter  have to the laying of venue of any suit, action or
     proceeding  arising out of or relating to this Agreement, the Debenture and
     Warrant  Purchase  Agreement  or  the  Debentures  in any New York State or
     Federal court. 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.

          (c)     Each  party  to this Agreement irrevocably consents to service
     of  process  in  the manner provided for notices in Section 7.1. Nothing in
     this  Agreement  will  affect  the  right of any party to this Agreement to
     process  in  any  other  manner  permitted  by  law.

     Section  7.12.     Termination.  This  Agreement  and the Security Interest
                        -----------
shall  terminate  when all the Obligations have been paid in full, at which time
the  Secured Parties shall execute and deliver to Grantor, at Grantor's expense,
all  Uniform  Commercial  Code  termination

<PAGE>
                                                                              14

statements  and  similar  documents  which  Grantor  shall reasonably request to
evidence such termination.  Any execution and delivery of termination statements
or  documents  pursuant to this Section shall be without recourse to or warranty
by  the  Secured  Parties.

     Section  7.13.     Prejudgment  Remedy  Waiver.  Grantor  acknowledges that
                        ---------------------------
this  Agreement, the Debenture and Warrant Purchase Agreement and the Debentures
evidence a commercial transaction and that it could, under certain circumstances
have  the right, to notice of and hearing on the right of the Secured Parties to
obtain  a  prejudgment  remedy, such as attachment, garnishment and/or replevin,
upon commencing any litigation against Grantor.  Notwithstanding, Grantor hereby
waives  all  rights to notice, judicial hearing or prior court order to which it
might  otherwise  have  the  right  under  any  state  or  federal  statute  or
constitution  in  connection  with  the  obtaining by the Secured Parties of any
prejudgment  remedy  by  reason  of  this  Agreement,  the Debenture and Warrant
Purchase  Agreement,  the  Debentures  or  by  reason  of the Obligations or any
renewals  or  extensions of the same.  Grantor also waives any and all objection
which it might otherwise assert, now or in the future, to the exercise or use by
the  Secured  Parties  of  any right of setoff, repossession or self help as may
presently  exist  under  statute  or  common  law.

     Section  7.14.     Concerning  Revised  Article 9 of the Uniform Commercial
                        --------------------------------------------------------
Code.  The  parties  acknowledge  and  agree to the following provisions of this
Agreement  in  anticipation  of  the  possible  application,  in  one  or  more
jurisdictions  to the transactions contemplated hereby, of the revised Article 9
  -
of the Uniform Commercial Code in the form or substantially in the form approved
in  1998  by  the  American  Law  Institute  and  the  National  Conference  of
Commissioners  on  Uniform  State  Law  ("Revised  Article  9").
                                          -------------------

          (a)     In  applying  the  law  of  any  jurisdiction in which Revised
Article  9 is in effect, the Collateral is all assets of Grantor, whether or not
within  the  scope  of  Revised  Article  9.  The Collateral shall also include,
without  limitation,  the  following  categories of assets as defined in Revised
Article  9:  goods  (including inventory, equipment and any accessions thereto),
instruments  (including  promissory  notes),  documents,  accounts  (including
health-care-insurance  receivables),  chattel  paper  (whether  tangible  or
electronic),  deposit  accounts,  letter-of-credit  rights  (whether  or not the
letter  of credit is evidenced by a writing), commercial tort claims, securities
and  all  other  investment  property,  general  intangibles  (including payment
intangibles  and  software),  supporting obligations and any and all proceeds of
any  thereof,  wherever  located,  whether now owned and hereafter acquired.  If
Grantor  shall at any time, whether or not Revised Article 9 is in effect in any
particular  jurisdiction, acquire a commercial tort claim, as defined in Revised
Article  9,  Grantor  shall  immediately notify the Secured Parties in a writing
signed  by Grantor of the brief details thereof and grant to the Secured Parties
in  such  writing  a  security interest therein and in the proceeds thereof, all
upon  the terms of this Agreement, with such writing to be in form and substance
satisfactory  to  the  Secured Parties.  The Secured Parties may at any time and
from  time  to  time,  pursuant  to  the provisions of Article V, file financing
statements,  continuation  statements  and  amendments thereto that describe the
Collateral as all assets of Grantor or words of similar effect and which contain
any  other  information  required  by  Part  5  of  Revised  Article  9  for the
sufficiency or filing office acceptance of any financing statement, continuation
statement  or  amendment, including whether Grantor is an organization, the type
of  organization  and  any organization identification number issued to Grantor.
Grantor  shall furnish any such information to the Secured Parties promptly upon
request.  Any  such

<PAGE>
                                                                              15

financing statements, continuation statements or amendments may be signed by the
Secured Parties on behalf of Grantor, as provided in Article V, and may be filed
at  any  time  in  any  jurisdiction whether or not Revised Article 9 is then in
effect  in  that  jurisdiction.

          (b)     Grantor  shall  at  any time and from time to time, whether or
not  Revised  Article  9  is in effect in any particular jurisdiction, take such
steps  as the Secured Parties may reasonably request for the Secured Parties (i)
to  obtain an acknowledgement, in form and substance satisfactory to the Secured
Parties,  of  any  bailee  having  possession  of any of the Collateral that the
bailee  holds  such Collateral for the Secured Parties, (ii) to obtain "control"
of  any  investment  property,  deposit  accounts,  letter-of-credit  rights  or
electronic  chattel  paper  (as such terms are defined in Revised Article 9 with
corresponding  provisions  in Sec.Sec. 9-104, 9-105, 9-106 and 9-107 relating to
what  constitutes  "control"  for such items of Collateral), with any agreements
establishing  control  to  be  in form and substance satisfactory to the Secured
Parties,  and (iii) otherwise to insure the continued perfection and priority of
the  Secured  Parties'  security  interest  in  any of the Collateral and of the
preservation  of  its  rights therein, whether in anticipation and following the
effectiveness  of  Revised  Article  9  in  any  jurisdiction.

          (c)     Nothing contained in this Section shall be construed to narrow
the  scope  of the security interest granted hereby in any of the  Collateral or
the  perfection  or  priority thereof or to impair or otherwise limit any of the
rights,  powers,  privileges or remedies of the Secured Parties hereunder except
as  (and  then only to the extent) specifically mandated by Revised Article 9 to
the  extent  then  applicable.

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

                              APPIANT TECHNOLOGIES, INC.

                              By:
                                  -----------------------------------
                                  Name:
                                  Title:

                              [INVESTOR]

                              By:
                                  -----------------------------------
                                  Name:
                                  Title:

<PAGE>

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