Document:

ex104.htm

    AMENDED
AND RESTATED

     

    PLEDGE
AND SECURITY AGREEMENT

     

    PLEDGE AND SECURITY AGREEMENT
(this “Agreement”), dated as
of July 2, 2009, made by and among Beyond Commerce, Inc. (the “Company”) and each
holder of Company’s common stock signatory hereto (the “Pledgor” and,
collectively, the “Pledgors”) in favor
of OmniReliant Holdings, Inc. (the “Pledgee”).

    

    W  I  T  N  E  S  S  E  T  H:

    

    WHEREAS, the Company, the
Pledgee and a Pledgor have previously entered into a pledge and security
agreement dated June 29, 2009 whereby Pledgor Linlithgow Holdings LLC pledged
2,500,000 shares of the Company’s Common Stock;

    

    WHEREAS, the Company, the
Pledgee and Pledgor Linlithgow Holdings LLC wish to amend and restate the June
29, 2009 pledge and security agreement so that additional Pledgors may pledge
their shares of the Company’s Common Stock;

    

    WHEREAS, Pledgee has lent to
the Company, and the Company has agreed to borrow from the Pledgee, up to an
aggregate of $3,500,000 pursuant to the terms and conditions set forth in the
Amended and Restated Securities Purchase Agreement (the “Purchase Agreement”)
and the Debentures of the Company (the “Debentures”);

    

    WHEREAS, pursuant to the
provisions of the Debentures, and as a condition to the obligation of the
Pledgee to lend thereunder, the Pledgors, as principals, employees and
shareholders of the Company, have agreed to make the pledge contemplated by this
Agreement in order to induce Pledgee to perform their obligations under the
Debentures;

    

     WHEREAS, as a condition to the
obligation of the Pledgee to lend pursuant to the Debentures, the Company agrees
to undertake such action contemplated by this Agreement in order to induce
Pledgee to perform their obligations under the Debentures;

    

    WHEREAS, Pledgors own the
shares of common stock, $0.001 par value per share, of the Company (the “Common Stock”) as set
forth opposite the Pledgors’ respective names on Schedule A attached
hereto;

    

    WHEREAS, terms used but not
otherwise defined in this Agreement that are defined in Article 9 of the Uniform
Commercial Code in effect in the State of New York at that time (whether or not
the UCC applies to the affected Pledged Collateral) (the "UCC") shall have the
meanings ascribed to them in the UCC; and

    

    WHEREAS, if an aggregate of
$3,500,000 worth of funding (with the Company receiving proceeds of $3,000,000),
as described in the Purchase Agreement, does not occur on or around July 30,
2009, the difference between the amount of shares pledged hereunder and four
times the number of shares of Common Stock the Debentures are convertible into
based on the closing price of the Company’s Common Stock on July 30, 2009, will
be returned to the Pledgors on a pro rata basis;

    

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

    

    
      
        
        

      

      
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    SECTION
1. Pledge and Security
Interest.  The Pledgor hereby unconditionally and irrevocably
pledges, grants and hypothecates to the Pledgee, and grants to the Pledgee a
continuing first priority security interest in, a first lien upon and a right of
set-off against, all of its respective rights, titles and interests of
whatsoever kind and nature in (the “Security Interest”),
and to secure the complete and timely payment, performance and discharge in
full, as the case may be, of all of the obligations pursuant to the Debentures,
the following (collectively, the “Pledged
Collateral”):

     

    (a) the
shares of Common Stock owned by the Pledgor and set forth on Schedule A attached
hereto (the “Pledged
Shares”), and all dividends, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Pledged Shares; and

     

    (b) all
proceeds of any and all of the foregoing Pledged Collateral, in whatever form
(including, without limitation, proceeds that constitute property of the types
described above).

     

    (c) if an
aggregate of $3,500,000 worth of funding (with the Company receiving proceeds of
$3,000,000), as described in the Purchase Agreement, does not occur on or around
July 30, 2009, the difference between the amount of shares pledged hereunder and
four times the number of shares of Common Stock the Debentures are convertible
into based on the closing price of the Company’s Common Stock on July 30, 2009,
will be returned to the Pledgors on a pro rata basis.

     

    SECTION
2. Security for
Obligations.  This Agreement secures the payment and
performance of the following obligations (collectively, the “Obligations”): all
present and future indebtedness, obligations, covenants, duties and liabilities
of any kind or nature of the Company to the Pledgee now existing or hereafter
arising under or in connection with this Agreement or the Debentures
(collectively, the “Transaction
Documents”).

     

    SECTION
3. Delivery of Pledged
Collateral.  Within 3 business days of the date hereof, all
certificates representing or evidencing the Pledged Shares, in suitable form for
transfer by delivery, or accompanied by instruments of transfer or assignment
duly executed in blank, are being deposited with and delivered to the Agent, as
collateral agent for the Pledgee.  The Agent shall have the right, at
any time after the occurrence of an Event of Default (as hereinafter defined)
(unless such Event of Default is waived in writing by the Pledgee), without
notice to the Pledgor, to transfer to or to register in the name of the Pledgee
or their nominees any or all of the Pledged Collateral.  In addition,
the Agent shall have the right at any time after the occurrence of an Event of
Default (unless such Event of Default is waived in writing by the Pledgee), to
exchange certificates or instruments representing or evidencing Pledged
Collateral for certificates or instruments of smaller or larger
denominations.

     

    SECTION
4. Representations and
Warranties.  The Pledgor, severally and not jointly with the
other Pledgors, represents and warrants as follows:

     

    
      
        
        

      

      
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    (a) Except as
set forth on Schedule
4(a) hereto, the Pledgor is the legal, record and beneficial owner of the
Pledged Collateral owned by the Pledgor, free and clear of any lien, security
interest, restriction, option or other charge or encumbrance (collectively,
"Liens").

     

    (b) The
pledge of the Pledged Collateral and the grant of the Security Interest pursuant
to this Agreement creates a valid and perfected first priority security interest
in the Pledged Collateral, securing payment and performance of the
Obligations.

     

    (c) Except
for the filing of financing statements pursuant to the UCC with the proper
filing and recording agencies in the proper jurisdictions pursuant to the
security agreement between the Company and the Pledgee, entered into
concurrently with this Agreement, no consent of any other person or entity and
no authorization, approval, or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required (i) for the pledge by
the Pledgor of the Pledged Collateral pursuant to this Agreement or for the
execution, delivery or performance of this Agreement by the Pledgor, (ii) for
the perfection or maintenance of the security interest created hereby, or (iii)
for the exercise by the Agent of the voting or other rights provided for in this
Agreement or the remedies in respect of the Pledged Collateral pursuant to this
Agreement (except as may be required in connection with any disposition of any
portion of the Pledged Collateral by laws affecting the offering and sale of
securities generally).

     

    (d) There are
no conditions precedent to the effectiveness of this Agreement that have not
been satisfied or waived.

     

    (e) Effective
on the date of execution of this Agreement, the Pledgor hereby authorizes the
Agent to file one or more financing statements under the UCC with respect to the
Security Interest with the proper filing and recording agencies in the
jurisdictions indicated on Schedule B attached
hereto, and in such other jurisdictions as may be requested by the
Pledgee.

     

    (f) The
Pledgor will not transfer, pledge, hypothecate, sell or otherwise dispose of any
of the Pledged Collateral without the prior written consent of the
Pledgee.

     

    (g) The
Pledgor shall promptly execute and deliver to the Pledgee such further
assignments, security agreements, financing statements or other instruments,
documents, certificates and assurances and take such further action as the
Pledgee may from time to time request and may in its sole discretion deem
necessary to perfect, protect or enforce its security interest in the Pledged
Collateral.

     

    (h) All
information heretofore, herein or hereafter supplied to the Pledgee by or on
behalf of the Pledgor with respect to the Pledged Collateral is accurate and
complete in all material respects as of the date furnished.

     

    SECTION
5. Further
Assurances.  The Pledgor, severally and not jointly with the
other Pledgors, agrees that at any time and from time to time, at the expense of
the Pledgor, the Pledgor shall promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary or
desirable, or that the Agent and/or the Pledgee may reasonably request, in order
to perfect and protect any security interest granted or purported to be granted
hereby or to enable the Agent and/or Pledgee to exercise and enforce their
rights and remedies hereunder with respect to any Pledged
Collateral.  The Company agrees that at any time and from time to
time, at the expense of the Company, the Company shall promptly execute and
deliver all further instruments and documents, and take all further action, that
may be necessary or desirable, or that the Pledgee may reasonably
request.

     

     

    
      
        
        

      

      
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    SECTION
6. Voting Rights; Dividends;
Etc.

     

    (a) So long
as no Event of Default shall have occurred (unless such Event of Default is
waived in writing by the Pledgee):

     

    (i) The
Pledgor shall be entitled to exercise or refrain from exercising any and all
voting and other consensual rights pertaining to the Pledged Collateral or any
part thereof for any purpose not inconsistent with the terms of this Agreement;
provided, however, that the
Pledgor shall not exercise or refrain from exercising any such right if, in the
reasonable judgment of such Pledgee, such action would have a material adverse
effect on the Security Interest or the rights and remedies of the Pledgee
hereunder; provided, further, that the
Pledgor shall give the Pledgee at least ten (10) days' prior written notice of
the manner in which it intends to exercise, or the reasons for refraining from
exercising, any such right.

     

    (ii) The
Pledgor shall be entitled to receive and retain any and all cash dividends and
interest paid in respect of the Pledgor’s Pledged Collateral.

     

    (b) Upon and
after the occurrence of any Event of Default (unless such Event of Default is
waived in writing by the Pledgee):

     

    (i) All
rights of the Pledgor to exercise or refrain from exercising the voting and
other consensual rights which it would otherwise be entitled to exercise
pursuant to Section 6(a)(i) and to receive the dividends and interest payments
which it would otherwise be authorized to receive and retain pursuant to Section
6(a)(ii) shall cease, and all such rights shall thereupon become vested in the
Agent who shall thereupon have the sole right to exercise or refrain from
exercising such voting and other consensual rights and to receive and hold as
Pledged Collateral such dividends and interest payments.

     

    (ii) All
dividends and interest payments which are received by the Pledgors contrary to
the provisions of paragraph (i) of this Section 6(b) shall be received in trust
for the benefit of the Pledgee, shall be segregated from other funds of the
applicable Pledgor and shall be forthwith paid over to the Agent as Pledged
Collateral in the same form as so received (with any necessary
endorsement).

     

    SECTION
7. Transfers and Other Liens;
Additional Shares.  During the term of this Agreement, the
Pledgor agrees that it shall not (i) sell, assign (by operation of law or
otherwise) or otherwise dispose of, or grant any option with respect to, any of
the Pledged Collateral, or (ii) create or permit to exist any Lien upon or with
respect to any of the Pledged Collateral, except for the security interest
granted pursuant to this Agreement.

     

    SECTION
8. Agent Appointed
Attorney-in-Fact.

    
      
        
        

      

      
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    (a)           Effective
only upon an Event of Default (unless such Event of
Default is waived in writing by the Pledgee), the Pledgors hereby appoints the
Agent as the Pledgors’ attorney-in-fact, with full authority in the place and
stead of, and in the name of, the Pledgors or otherwise, from time to time in
the Agent's discretion to take any action and to execute any instrument which
the Agent may deem necessary or desirable to accomplish the purposes of this
Agreement, including, without limitation, to receive, endorse and collect all
instruments made payable to the Pledgors representing any dividend, interest
payment or other distribution in respect of the Pledged Collateral or any part
thereof and to give full discharge for the same.

     

    (b)           The
Pledgor, severally and not jointly, authorizes the Agent, and do hereby make,
constitute and appoint the Agent and its respective officers, agents, successors
or assigns with full power of substitution, as the Pledgors’ true and lawful
attorney-in-fact, with power, in the name of the Pledgee or the Pledgors, after
the occurrence and during the continuance of an Event of Default, (i) to endorse
any checks, drafts, money orders or other instruments of payment (including
payments payable under or in respect of any policy of insurance) in respect of
the Pledged Collateral that may come into possession of the Pledgee; (ii) to
sign and endorse any financing statement pursuant to the UCC or any invoice,
freight or express bill, bill of lading, storage or warehouse receipts, drafts
against Pledgors, assignments, verifications and notices in connection with
accounts, and other documents relating to the Pledged Collateral; (iii) to pay
or discharge taxes, liens, security interests or other encumbrances at any time
levied or placed on or threatened against the Pledged Collateral; (iv) to
demand, collect, receipt for, compromise, settle and sue for monies due in
respect of the Pledged Collateral; (v) generally to do, at the option of the
Pledgee, and at the expense of the Pledgors, severally and jointly, at any time,
or from time to time, all acts and things which the Pledgee deem necessary to
protect, preserve and realize upon the Pledged Collateral and the Security
Interest granted herein in order to effect the intent of this Agreement all as
fully and effectually as the Pledgors might or could do; and (vi) in the event
of the bankruptcy of the Pledgor, to appoint a receiver or equivalent person to
marshall the Pledgor’s assets, and the Pledgor hereby ratifies all that said
attorney-in-fact shall lawfully do or cause to be done by virtue hereof. This
power of attorney is coupled with an interest and shall be irrevocable for the
term of this Agreement and thereafter as long as any of the Obligations shall be
outstanding.

     

    (c)           The
Pledgor hereby irrevocably appoints the Agent as the Pledgor’s attorney-in-fact,
with full authority in the place and stead of the Pledgor and in the name of the
Pledgor, from time to time in the Agent’s discretion, to file in its sole
discretion, of one or more financing or continuation statements and amendments
thereto, relative to any of the Collateral without the signature of the Pledgor
where permitted by law.

     

    SECTION
9. Pledgee May
Perform.  If any Pledgor fails to perform any agreement
contained herein, the Agent and/or Pledgee may itself perform, or cause
performance of, such agreement, and the expenses of the Agent and/or Pledgee
incurred in connection therewith shall be payable by the Pledgor under Section
14 hereof.

     

    
      
        
        

      

      
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    SECTION
10. The Agent's
Duties.  The duties and rights of the Agent are as set forth on
Annex A
attached hereto and incorporated herein by reference. Any fees of the Agent for
its services hereunder shall be paid by the Company.  The powers
conferred on the Agent hereunder are solely to protect the interests of the
Pledgee in the Pledged Collateral and shall not impose any duty upon the Agent
to exercise any such powers.  Except for the safe custody of any
Pledged Collateral in its possession and the accounting for moneys actually
received it hereunder, neither the Agent nor Pledgee shall have any duty as to
any Pledged Collateral, as to ascertaining or taking action with respect to
calls, conversions, exchanges, maturities, tenders or other matters relative to
any Pledged Collateral, whether or not such party has or is to have knowledge of
such matters, or as to the taking of any necessary steps to preserve rights
against any parties or any other rights pertaining to any Pledged
Collateral.  The Agent and Pledgee shall be deemed to have exercised
reasonable care in the custody and preservation of any Pledged Collateral in its
possession if such Pledged Collateral is accorded treatment substantially equal
to that which such party accords its own property.

     

    SECTION
11. Event of
Default.  The occurrence of any of the following events shall
constitute an event of default under this Agreement (each, an “Event of
Default”):

     

    (a) The
failure of any Pledgor to observe, perform or comply with any act, duty,
covenant, agreement or obligation under this Agreement, which is not cured
within ten business days following written notice by Agent to the Pledgor;

     

    (b) If any of
the representation or warranty of any Pledgor set forth in this Agreement shall
be breached or shall be untrue or incorrect in any material respect, and is not
cured within ten business days following written notice by Agent to the
Pledgor;

     

    (c) The
filing of any financing statement with regard to any of the Pledged Collateral
other than pursuant to this Agreement, or the attachment of any additional Lien
to any portion of the Pledged Collateral in favor of any Person other than the
Pledgee; or 

     

    (d) If any
event of default (and expiration of any cure period) shall occur (unless such
event of default is waived in writing by the Pledgee) under any of the other
Transaction Documents. 

     

    SECTION
12. Cross-Default;
Cross-Collateralization.

     

      The
Pledgors acknowledges and agrees that any default under the terms of this
Agreement shall constitute a default by the Company under the Debentures, and
that any event of default (following expiration of any applicable cure period)
under the Debentures shall constitute a default under this
Agreement.

    

    
      
        
        

      

      
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    SECTION
13. Remedies upon Event of
Default.  Upon and after the occurrence of any Event of
Default: 

     

    (a) The Agent
may exercise in respect of the Pledged Collateral, in addition to other rights
and remedies provided for herein or otherwise available to the Agent (including,
without limitation, the vesting in the Agent pursuant to Section 6(b)(i) of the
sole right to exercise voting rights pertaining to the Pledged Collateral,
including, without limitation, voting rights with respect to the sale of assets
of the issuer of such Pledged Shares), all the rights and remedies of a secured
party on default under the UCC, and may also, without notice except as specified
below and subject to the applicable securities laws, sell the Pledged Collateral
or any part thereof at public or private sale, at any exchange, broker's board
or at any of the Agent's offices or elsewhere, for cash, on credit or for future
delivery, and upon such other terms as the Agent may deem commercially
reasonable.  The Pledgor agrees that, to the extent notice of sale
shall be required by law, at least ten (10) days’ notice to the Pledgor of the
time and place of any public sale or the time after which any private sale is to
be made shall constitute reasonable notification.  The Agent shall not
be obligated to make any sale of Pledged Collateral regardless of notice of sale
having been given. The Agent may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned.  The Pledgor acknowledges and agrees that the Pledged
Collateral consisting of the Pledged Shares, and/or any other shares of common
stock of the Company, is of a type customarily sold on a recognized market, and
accordingly that no notice of the sale thereof need be given.  In
addition, Agent may transfer all of the Pledged Collateral to Pledgee, who may
hold all of such Pledged Collateral as payment in full of the
Obligations.

     

    (b) Any cash
held by the Agent or the Pledgee as Pledged Collateral and all cash proceeds
received by the Agent or the Pledgee in respect of any sale of, collection from,
or other realization upon all or any part of the Pledged Collateral may, in the
discretion of the Agent or the Pledgee, be held as collateral for, and/or then
or at any time thereafter be applied (after payment of any amounts payable
pursuant to Section 14) in whole or in part against, all or any part of the
Obligations.  Any surplus of such cash or cash proceeds held by the
Agent or the Pledgee and remaining after payment in full of all the Obligations
shall be paid over to the Pledgors, pro-rata, or to whomsoever may be lawfully
entitled to receive such surplus.

     

    SECTION
14. Expenses.  The
Pledgors and the Company, severally and jointly, shall upon demand pay to the
Agent and/or the Pledgee the amount of any and all reasonable expenses,
including reasonable attorneys’ fees and expenses and the reasonable fees and
expenses of any experts and agents, which the Agent and/or Pledgee may incur in
connection with (a) the administration of this Agreement, (b) the custody or
preservation of, or the sale of, collection from, or other realization upon, any
of the Pledged Collateral, (c) the exercise or enforcement of any of the rights
of the Agent and/or Pledgee hereunder or (d) the failure by any Pledgor to
perform or observe any of the provisions hereof.

     

    SECTION
15. Continuing Security
Interest; Termination.  This Agreement shall create a
continuing security interest in the Pledged Collateral and shall remain in full
force and effect until the indefeasible payment in full of the
Obligations.  Upon the indefeasible payment in full of the
Obligations, the security interest granted hereby shall terminate and all rights
to the Pledged Collateral shall revert to the Pledgor.  Upon any such
termination, the Agent shall, at the Pledgors’ expense, return, pro-rata, to the
Pledgor such of the Pledged Collateral as shall not have been sold or otherwise
applied pursuant to the terms hereof and execute and deliver to the Pledgors
such documents as the Pledgors shall reasonably request to evidence such
termination.

     

    SECTION
16. Governing Law;
Terms.  For the convenience of the Agent, this Agreement shall
be governed by, and construed in accordance with, the laws of the State of New
York, without regard to principles of conflict of laws.  The Pledgor
agrees to submit to the in personam jurisdiction
of the state and federal courts situated within the City of New York, State of
New York with regard to any controversy arising out of or relating to this
Agreement.  Unless otherwise defined herein, terms defined in Article
9 of the UCC are used herein as therein defined.

     

    
      
        
        

      

      
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    SECTION
17. Notice.  All
notices and other communications hereunder shall be in writing and shall be
deemed to have been received when delivered personally (which shall include,
without limitation, via express overnight courier) or if mailed, three (3)
business days after having been mailed by registered or certified mail, return
receipt requested, postage prepaid, to the addresses of the parties as set forth
herein. 

     

    SECTION
18. Waivers.

     

    (a) Waivers.  The
Pledgor waives any right to require the Pledgee to (i) proceed against any
person, (ii) proceed against any other collateral under any other agreement,
(iii) pursue any other remedy, or (iv) make presentment, demand, dishonor,
notice of dishonor, acceleration and/or notice of non-payment.

     

    (b) Waiver of
Defense.  No course of dealing between the Pledgors and the
Pledgee, nor any failure to exercise nor any delay in exercising on the part of
the Agent or Pledgee, any right, power, or privilege under this Agreement or
under any of the other Transaction Documents shall operate as a
waiver.  No single or partial exercise of any right, power, or
privilege under this Agreement or under any of the other Transaction Documents
shall preclude any other or further exercise of such right, power, or privilege
or the exercise of any other right, power, or privilege.

     

    SECTION
19. Rights Are
Cumulative.  All rights and remedies of the Agent and the
Pledgee with respect to the Pledged Collateral, whether established by this
Agreement, the other Transaction Documents or by law, shall be cumulative and
may be exercised concurrently or in any order.

     

    SECTION
20. Indemnity.  The
Pledgor, jointly and severally, agrees to indemnify and hold harmless the Agent,
the Pledgee and their respective heirs, successors and assigns against and from
all liabilities, losses and costs (including, without limitation, reasonable
attorneys' fees) arising out of or relating to the taking or the failure to take
action in respect of any transaction effected under this Agreement or in
connection with the lien provided for herein, including, without limitation, any
and all excise, sales or other taxes which may be payable or determined to be
payable with respect to any of the Pledged Collateral, except to the extent
resulting from their gross negligence or intentional misconduct.  The
liabilities of the Pledgors under this Section 20 shall survive the termination
of this Agreement.

     

    SECTION
21. Severability.  The
provisions of this Agreement are severable.  If any provision of this
Agreement is held invalid or unenforceable in whole or in part in any
jurisdiction, then such invalidity or unenforceability shall affect only such
provision, or part thereof, in such jurisdiction, and shall not in any manner
affect such provision or part thereof in any other jurisdiction, or any other
provision of this Agreement in any jurisdiction.

     

     

    
      
        
        

      

      
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    SECTION
22. Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be
considered an original, but all of which together shall constitute one and the
same instrument.

     

    SECTION
23. Amendments; Entire
Agreement.  This Agreement is subject to modification only by a
writing signed by the parties.  To the extent any provision of this
Agreement conflicts with any provision of the Debentures, the provision giving
Pledgee greater rights or remedies shall govern, it being understood that the
purpose of this Agreement is to add to, and not detract from, the rights granted
to Pledgee under the Debentures.  This Agreement and the other
Transaction Documents constitute the entire agreement of the parties with
respect to the subject matter of this Agreement.

     

    SECTION
24. Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors, legal
representatives, successors and assigns; provided, however, that no
Pledgor may, without the prior written consent of the Pledgee, assign or
delegate any rights, powers, duties or obligations hereunder, and any such
purported assignment or delegation without such consent shall be null and
void.

     

     

    

     

     

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    IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date
first above written.

    

     

     

     

    

     

    
      	 	 PLEDGORS:	 	 
	 	 	 	 
	 	 /s/ Rhett McNulty	 	 
	 	 Linlithgow
      Holdings, LLC	 	 
	 	 By: Rhett
      McNulty	 	 
	 	 	 	 
	 	 	 	 
	 	 /s/
      Wendy
      Borow-Johnson	 	 
	 	 Wendy
      Borow-Johnson	 	 
	 	 	 	 
	 	 /s/ Robert McNulty	 	 
	 	 Robert
      McNulty	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

     

    
      
        
          	 	 THE
      COMPANY:	 	 
	 	 BEYOND
      COMMERCE, INC.	 	 
	 	 	 	 
	 	 By: /s/ Robert McNulty	 	 
	 	 Name: Robert
      McNulty	 	 
	 	 Title: Chief
      Executive Officer	 	 
	 	 	 	 

                                                        

      

      
        	 	 PLEDGEE	 	 
	 	 OMNIRELIANT
      HOLDINGS, INC.	 	 
	 	 By: /s/ Paul Morrison	 	 
	 	 Name: Paul
      Morrison	 	 
	 	 Title: Chief
      Executive Officer	 	 
	 	 	 	 

      

       

    

                             

       

                            

                                                                     

                                                                                      

     

    

    

     

    

     

    

    

     

     

     

    

    

    

     

    

     

    

     

     

     

     

     

     

     

    10ex105.htm

    

    

    SECURITY
AGREEMENT

    

                SECURITY
AGREEMENT, dated as of July 2, 2009 (this “Agreement”), among
Beyond Commerce, Inc., a Nevada corporation (the “Company” or the
“Debtor”), the
Company’s subsidiaries, and the holder or holders of the Company’s
Secured Original Issue Discount Convertible Debentures due twelve
months from the date of their respective issuance (the “Debentures”), signatory
hereto, their endorsees, transferees and assigns (collectively referred to as,
the “Secured
Parties”).

    

    W
I T N E S S E T H:

    

                WHEREAS,
pursuant to the Debentures, the Secured Parties have severally agreed to extend
the loans to the Company evidenced by the Debentures;

    

                WHEREAS,
pursuant to a certain Subsidiary Guarantee dated as of the date hereof (the
“Guaranty”),
the subsidiaries of the Company (the “Guarantors”) have
jointly and severally agreed to guaranty and act as surety for payment of such
loans; and

    
 

    WHEREAS, in order to induce the
Secured Parties to extend the loans evidenced by the Debentures, The Debtor has
agreed to execute and deliver to the Secured Parties this Agreement and to grant
the Secured Parties, a perfected security interest in certain property of
such Debtor to secure the prompt payment, performance and discharge in full of
all of the Company’s obligations under the Debenture and the other Debtor’s
obligations under the Guaranty.

    

    
      
        
        

      

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

    

                1.                                         Certain Definitions. As used
in this Agreement, the following terms shall have the meanings set forth in this
Section 1.  Terms used but not otherwise defined in this Agreement
that are defined in Article 9 of the UCC (such as “account”, “chattel paper”,
“commercial tort claim”, “deposit account”, “document”, “equipment”, “fixtures”,
“general intangibles”, “goods”, “instruments”, “inventory”, “investment
property”, “letter-of-credit rights”, “proceeds” and “supporting obligations”)
shall have the respective meanings given such terms in Article 9 of the
UCC.

    

    (a)           “Collateral” means the
collateral in which the Secured Parties are granted a security interest by this
Agreement and which shall include the following personal property of the
Debtors, whether presently owned or existing or hereafter acquired or coming
into existence, wherever situated, and all additions and accessions
thereto and all substitutions and replacements thereof, and all proceeds,
products and accounts thereof, including, without limitation, all proceeds from
the sale or transfer of the Collateral and of insurance covering the same and of
any tort claims in connection therewith, and all
dividends, interest, cash, notes, securities, equity interest or other property
at any time and from time to time acquired, receivable or otherwise distributed
in respect of, or in exchange for, any or all of the Pledged Securities (as
defined below):

    

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

    

    (ii)
           All contract
rights and other general intangibles, including, without limitation, all
partnership interests, membership interests, stock or other securities, rights under any of the Organizational Documents,
agreements related to the Pledged Securities, licenses, distribution and
other agreements, computer software (whether “off-the-shelf”, licensed from any
third party or developed by any Debtor), computer software development rights,
leases, franchises, customer lists, quality control procedures, grants and
rights, goodwill, trademarks, service marks, trade styles, trade names, patents,
patent applications, copyrights, and income tax refunds;

     

    (iii)           All
accounts, together with all instruments, all documents of title representing any
of the foregoing, all rights in any merchandising, goods, equipment, motor
vehicles and trucks which any of the same may represent, and all right, title,
security and guaranties with respect to each account, including any right of
stoppage in transit;

    

    (iv)           All
documents, letter-of-credit rights, instruments and chattel paper;

    

    (v)           All
commercial tort claims;

    

    (vi)           All
deposit accounts and all cash (whether or not deposited in such deposit
accounts);

    

    (vii)          All
investment property;

    

    (viii) 
       All supporting obligations;
and

    

    (ix)           All
files, records, books of account, business papers, and computer programs;
and

    

    (x)           
the products and proceeds of all of the foregoing Collateral set forth in
clauses (i)-(ix) above.

    

    
      
        
        

      

      
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    Without limiting the generality of the foregoing, the
“Collateral” shall include all
investment property and general intangibles respecting ownership and/or other
equity interests in each Guarantor,
including, without limitation, the shares of capital stock and the other equity
interests listed on Schedule H hereto (as the same may be modified from time to time
pursuant to the terms hereof), and any other shares of capital stock
and/or other equity interests of any other
direct or indirect subsidiary of any Debtor obtained in the future, and, in each
case, all certificates representing such shares and/or equity interests and, in
each case, all rights, options, warrants, stock, other securities and/or
equity interests that may hereafter be received, receivable or distributed in
respect of, or exchanged for, any of the foregoing (all of the foregoing being
referred to herein as the “Pledged
Securities”) and all rights arising under or in connection with the Pledged Securities, including, but
not limited to, all dividends, interest and cash.

     

    Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any
asset which, in the event of an assignment, becomes void by operation of
applicable law or the assignment of which is otherwise prohibited by applicable
law (in each case to the extent that such applicable law is not overridden by
Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law);
provided, however, that to the extent permitted by applicable law, this
Agreement shall create a valid security interest in such asset and, to the
extent permitted by applicable law, this Agreement shall create a valid security
interest in the proceeds of such asset.

    

    (b)           “Intellectual
Property” means the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United
States, multinational or foreign laws or otherwise, including, without
limitation, (i) all copyrights arising under the laws of the United States, any
other country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished, all registrations and
recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the United
States Copyright Office, (ii) all letters patent of the United States, any other
country or any political subdivision thereof, all reissues and extensions
thereof, and all applications for letters patent of the United States or any
other country and all divisions, continuations and continuations-in-part
thereof, (iii) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade dress, service marks, logos,
domain names and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common law
rights related thereto, (iv) all trade secrets arising under the laws of the
United States, any other country or any political subdivision thereof, (v) all
rights to obtain any reissues, renewals or extensions of the foregoing, (vi) all
licenses for any of the foregoing, and (vii) all causes of action for
infringement of the foregoing.

    

               (c)           “Majority in
Interest” shall mean, at any time of determination, the majority
in interest (based on then-outstanding principal amounts of Debentures at
the time of such determination) of the
Secured Parties.

    

               (d)           “Necessary
Endorsement” shall mean undated stock powers endorsed in blank or
other proper instruments of assignment duly executed and such other instruments
or documents as the Agent (as that term is
defined below) may reasonably request.

    

    (e)                    “Obligations” means
all of the liabilities and obligations (primary, secondary, direct,
contingent, sole, joint or several) due or to become due, or that are now or may
be hereafter contracted or acquired, or owing to, of any Debtor to the Secured
Parties, including, without limitation, all obligations under this Agreement,
the Debentures, the Guaranty and any other instruments, agreements or other
documents executed and/or delivered in connection herewith or therewith, in each
case, whether now or hereafter existing, voluntary or involuntary, direct or
indirect, absolute or contingent, liquidated or unliquidated, whether or not
jointly owed with others, and whether or not from time to time decreased or
extinguished and later increased, created or incurred, and all or any portion of
such obligations or liabilities that are paid, to the extent all or any part of
such payment is avoided or recovered directly or indirectly from any of the
Secured Parties as a preference, fraudulent transfer or otherwise as such
obligations may be amended, supplemented, converted, extended or modified from
time to time.  Without limiting the generality of the foregoing, the
term “Obligations” shall include, without limitation: (i) principal of, and
interest on the Debentures and the loans extended pursuant thereto; (ii) any and
all other fees, indemnities, costs, obligations and liabilities of the Debtors
from time to time under or in connection with this Agreement, the Debentures,
the Guaranty and any other instruments, agreements or other documents executed
and/or delivered in connection herewith or therewith; and (iii) all amounts
(including but not limited to post-petition interest) in respect of the
foregoing that would be payable but for the fact that the obligations to pay
such amounts are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving any
Debtor.

    

    
      
        
        

      

      
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    (f)                    “Organizational
Documents” means with respect to any Debtor, the documents by which such
Debtor was organized (such as a certificate of incorporation, certificate of
limited partnership or articles of organization, and including, without
limitation, any certificates of designation for preferred stock or other forms
of preferred equity) and which relate to the internal governance of such Debtor
(such as bylaws, a partnership agreement or an operating, limited liability or
members agreement).

    

     (g)                    “UCC” means the
Uniform Commercial Code of the State of New York and or any other applicable law
of any state or states which has jurisdiction with respect to all, or any
portion of, the Collateral or this Agreement, from time to time.  It
is the intent of the parties that defined terms in the UCC should be construed
in their broadest sense so that the term “Collateral” will be construed in its
broadest sense.  Accordingly if there are, from time to time, changes
to defined terms in the UCC that broaden the definitions, they are incorporated
herein and if existing definitions in the UCC are broader than the amended
definitions, the existing ones shall be controlling.

    

               2.           Grant of Perfected Second Priority Security Interest. As an inducement
for the Secured Parties to extend the loans as evidenced by the Debentures and
to secure the complete and timely payment, performance and discharge in full, as
the case may be, of all of the Obligations, The Debtor hereby unconditionally
and irrevocably pledges, grants and hypothecates to the Secured Parties a
continuing and perfected security interest in and to, a lien upon and a right of
set-off against all of their respective right, title and interest of whatsoever
kind and nature in and to, the Collateral (the “Security
Interest”).

    

               3.           Delivery of Certain
Collateral.  Contemporaneously or prior to the execution of this
Agreement, The Debtor shall deliver or cause to be delivered to the Agent (a)
any and all certificates and other instruments representing or evidencing the
Pledged Securities, and (b) any and all certificates and other instruments or documents representing any of
the other Collateral, in each case, together with all Necessary
Endorsements.  The Debtors are, contemporaneously with the execution
hereof, delivering to Agent, or have previously delivered to Agent, a true and correct copy of each Organizational Document
governing any of the Pledged Securities.

    

                4.                      Representations, Warranties,
Covenants and Agreements of the Debtors. The Debtor represents and
warrants to, and covenants and agrees with, the Secured Parties as
follows:

    

    (a)   The
Debtor has the requisite corporate, partnership, limited liability company or
other power and authority to enter into this Agreement and otherwise to carry
out its obligations hereunder. The execution, delivery and performance by The
Debtor of this Agreement and the filings contemplated therein have been duly
authorized by all necessary action on the part of such Debtor and no further
action is required by such Debtor.  This Agreement has been duly
executed by The Debtor.  This Agreement constitutes the legal, valid
and binding obligation of The Debtor, enforceable against The Debtor in
accordance with its terms except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization and similar laws of general
application relating to or affecting the rights and remedies of creditors and by
general principles of equity.

    

     (b)           The
Debtors have no place of business or offices where their respective books of
account and records are kept (other than temporarily at the offices of its
attorneys or accountants) or places where Collateral is stored or located,
except as set forth on Schedule A attached
hereto.  Except as specifically set forth on Schedule A, The
Debtor is the record owner of the real property where such Collateral is
located, and there exist no mortgages or other liens on any such real property
except for Permitted Liens (as defined in the Debentures).  Except as
disclosed on Schedule
A, none of such Collateral is in the possession of any consignee, bailee,
warehouseman, agent or processor.

    

    
      
        
        

      

      
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    (c)           Except
for Permitted Liens (as defined in the Debentures) and except as set forth on
Schedule
B attached hereto, the Debtors are the sole owner of the Collateral
(except for non-exclusive licenses granted by any Debtor in the ordinary course
of business), free and clear of any liens, security interests, encumbrances,
rights or claims, and are fully authorized to grant the Security
Interest.  There is not on file in any governmental or regulatory
authority, agency or recording office an effective financing statement, security
agreement, license or transfer or any notice of any of the foregoing (other than
those that will be filed in favor of the Secured Parties pursuant to this
Agreement) covering or affecting any of the Collateral.  So long as
this Agreement shall be in effect, the Debtors shall not execute and shall not
knowingly permit to be on file in any such office or agency any such financing
statement or other document or instrument (except to the extent filed or
recorded in favor of the Secured Parties pursuant to the terms of this
Agreement).

    

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

    

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

    

    (f)           This
Agreement creates in favor of the Secured Parties a valid, security interest in
the Collateral, subject only to Permitted Liens (as defined in the Debentures)
securing the payment and performance of the Obligations.  Upon making
the filings described in the immediately following paragraph, all security
interests created hereunder in any Collateral which may be perfected by filing
Uniform Commercial Code financing statements shall have been duly
perfected.  Except for the filing of the Uniform Commercial Code
financing statements referred to in the immediately following paragraph,
the recordation of the Intellectual Property Security Agreement (as defined
below) with respect to copyrights and copyright applications in the United
States Copyright Office referred to in paragraph (m), the execution and delivery
of deposit account control agreements satisfying the requirements of Section
9-104(a)(2) of the UCC with respect to each deposit account of the Debtors, and the delivery of the certificates and other
instruments provided in Section 3,
no action is necessary to create, perfect or protect the security interests
created hereunder.  Without limiting the generality of the foregoing,
except for the filing of said financing statements, the recordation of said
Intellectual Property Security Agreement, and the execution and delivery of said
deposit account control agreements, no consent of any third parties and no
authorization, approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for (i) the execution,
delivery and performance of this Agreement, (ii) the creation or perfection of
the Security Interests created hereunder in the Collateral or (iii) the
enforcement of the rights of the Secured Parties hereunder.

    

     (g)                    The
Debtor hereby authorizes the Secured Parties, or any of them, to file one or
more financing statements under the UCC, with respect to the Security Interest
with the proper filing and recording agencies in any jurisdiction deemed proper
by them.

    

     (h)           The
execution, delivery and performance of this Agreement by the Debtors does not
(i) violate any of the provisions of any Organizational Documents of any Debtor
or any judgment, decree, order or award of any court, governmental body or
arbitrator or any applicable law, rule or regulation applicable to any Debtor or
(ii) conflict with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing any Debtor's debt or otherwise) or other understanding to
which any Debtor is a party or by which any property or asset of any Debtor is
bound or affected. No consent (including, without limitation, from stockholders
or creditors of any Debtor) is required for any Debtor to enter into and perform
its obligations hereunder.

    

    
      
        
        

      

      
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     (i)             The capital stock and other equity interests listed on Schedule
H hereto represent all of the capital stock
and other equity interests of the Guarantors, and represent all capital stock
and other equity interests owned, directly or indirectly, by the
Company.  All of the Pledged Securities are validly issued, fully paid and nonassessable,
and the Company is the legal and beneficial owner of the Pledged Securities,
free and clear of any lien, security interest or other encumbrance except for
the security interests created by this Agreement and other
Permitted Liens (as defined in the Debenture). 

    

    (j)           The ownership and other equity interests in partnerships
and limited liability companies (if any)
included in the Collateral (the
“Pledged
Interests”) by their express terms do not provide that they are securities governed by Article 8 of the
UCC and are not held in a securities account or by any financial
intermediary.

    

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

    

    (l)                    No
Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise
dispose of any of the Collateral (except for non-exclusive licenses granted by a
Debtor in its ordinary course of business and sales of inventory by a Debtor in
its ordinary course of business) without the prior written consent of a Majority in Interest.

    

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

    

    (n)           The Debtor shall
maintain with financially sound and reputable insurers, insurance with respect
to the Collateral against loss or damage of the kinds and in the amounts
customarily insured against by entities of
established reputation having similar properties similarly situated and in such
amounts as are customarily carried under similar circumstances by other such
entities and otherwise as is prudent for entities engaged in similar businesses
but in any event sufficient to cover the full replacement cost
thereof.  The Debtor shall cause each insurance policy issued in connection
herewith to provide, and the insurer issuing such policy to certify to the Agent
that (a) the Agent will be named as lender
loss payee and additional insured under each such insurance policy; (b) if such
insurance be proposed to be cancelled or materially changed for any reason
whatsoever, such insurer will promptly notify the Agent and such
cancellation or change shall not be effective as to the Agent for
at least thirty (30) days after receipt by the Agent of such notice, unless the
effect of such change is to extend or increase coverage under the policy; and
(c) the Agent will have the right (but no obligation) at its
election to remedy any default in the payment of premiums within thirty (30)
days of notice from the insurer of such default.  If no Event of
Default (as defined in the Debenture) exists and if the proceeds arising out of
any claim or series of related claims do not exceed $100,000, loss payments in each instance will be applied by the
applicable Debtor to the repair and/or replacement of property with respect to
which the loss was incurred to the extent reasonably feasible, and any loss
payments or the balance thereof remaining,
to the extent not so applied, shall be payable to the applicable Debtor,
provided, however, that payments received by any Debtor after an Event of
Default occurs and is continuing or in
excess of $100,000 for any occurrence or series of related occurrences shall be paid
to the Agent and, if received by such Debtor, shall be held in trust for and
immediately paid over to the Agent unless otherwise directed in writing by the
Agent.   Copies of such policies or the related certificates,
in each case, naming the Agent as lender loss payee and additional insured shall
be delivered to the Agent at least annually and at the time any new policy of
insurance is issued.

    

    
      
        
        

      

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

    

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

    

    (q)                    The
Debtor shall permit the Secured Parties and their representatives and agents to
inspect the Collateral at any time, and to make copies of records pertaining to
the Collateral as may be requested by a Secured Party from time to
time.

    

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

    

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

    

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

    

    (u)                    The
Debtors shall at all times preserve and keep in full force and effect their
respective valid existence and good standing and any rights and franchises
material to its business.

    

    (v)                    No
Debtor will change its name, type of organization, jurisdiction of organization,
organizational identification number (if it has one), legal or corporate
structure, or identity, or add any new fictitious name unless it provides at
least 30 days prior written notice to the Secured Parties of such change and, at
the time of such written notification, such Debtor provides any financing
statements or fixture filings necessary to perfect and continue perfected the
perfected security Interest granted and evidenced by this
Agreement.

    

    (w)                                               No
Debtor may consign any of its Inventory or sell any of its Inventory on bill and
hold, sale or return, sale on approval, or other conditional terms of sale
without the consent of a Majority in
Interest which shall not be unreasonably withheld, except to the extent
such consignment or sale does not exceed 15% of the total value of all of the
Company’s finished goods in Inventory.

    

    
      
        
        

      

      
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    (x)                    No
Debtor may relocate its chief executive office to a new location without
providing 30 days prior written notification thereof to the Secured Parties and
so long as, at the time of such written notification, such Debtor provides any
financing statements or fixture filings necessary to perfect and continue
perfected the perfected security Interest granted and evidenced by this
Agreement.

    

     (y)                    The
Debtor was organized and remains organized solely under the laws of the state
set forth next to such Debtor’s name in the first paragraph of this
Agreement.  Schedule D attached
hereto sets forth The Debtor’s organizational identification number or, if any
Debtor does not have one, states that one does not exist.

    

    (z)                    
(i) The actual name of The Debtor is the name set forth in the preamble above;
(ii) no Debtor has any trade names except as set forth on Schedule
E attached hereto; (iii) no Debtor has used any name other than that
stated in the preamble hereto or as set forth on Schedule E for the
preceding five years; and (iv) no entity has merged into any Debtor or been
acquired by any Debtor within the past five years except as set forth on Schedule
E.

    

    (aa)                    At
any time and from time to time that any Collateral consists of instruments,
certificated securities or other items that require or permit possession by the
secured party to perfect the security interest created hereby, the applicable
Debtor shall deliver such Collateral to the Agent.

    

              
  (bb)                     The Debtor, in its
capacity as issuer, hereby agrees to comply with any and all orders and
instructions of Agent regarding the Pledged Interests consistent with the terms
of this Agreement without the further consent of any Debtor as contemplated by
Section 8-106 (or any successor section) of
the UCC.  Further, The
Debtor agrees that it shall not enter into
a similar agreement (or one that would confer “control” within the
meaning of Article 8 of the UCC) with any other person or
entity.

     

    (cc)                    The
Debtor shall cause all tangible chattel paper constituting Collateral to be
delivered to the Agent, or, if such delivery is not possible, then to cause such
tangible chattel paper to contain a legend noting that it is subject to the
security interest created by this Agreement.  To the extent that any
Collateral consists of electronic chattel paper, the applicable Debtor shall
cause the underlying chattel paper to be “marked” within the meaning of Section
9-105 of the UCC (or successor section thereto).

    

    (dd)                    If
there is any investment property or deposit account included as Collateral that
can be perfected by “control” through an account control agreement, the
applicable Debtor shall cause such an account control agreement, in form and
substance in each case satisfactory to the Secured Parties, to be entered into
and delivered to the Secured Parties.

    

    (ee)                    To
the extent that any Collateral consists of letter-of-credit rights, the
applicable Debtor shall cause the issuer of each underlying letter of credit to
consent to an assignment of the proceeds thereof to the Secured
Parties.

    

    (ff)                    To
the extent that any Collateral is in the possession of any third party, the
applicable Debtor shall join with the Secured Parties in notifying such third
party of the Secured Parties’ security interest in such Collateral and shall use
its best efforts to obtain an acknowledgement and agreement from such third
party with respect to the Collateral, in form and substance satisfactory to the
Secured Parties.

    
      
        
        

      

      
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    (gg)                    If
any Debtor shall at any time hold or acquire a commercial tort claim, such
Debtor shall promptly notify the Secured Parties in a writing signed by such
Debtor of the particulars 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.

    

    (hh)                                  The
Debtor shall immediately provide written notice to the Secured Parties of any
and all accounts which arise out of contracts with any governmental authority
and, to the extent necessary to perfect or continue the perfected status of the
Security Interest in such accounts and proceeds thereof, shall execute and
deliver to the Secured Parties an assignment of claims for such accounts and
cooperate with the Secured Parties in taking any other steps required, in their
judgment, under the Federal Assignment of Claims Act or any similar federal,
state or local statute or rule to perfect or continue the perfected status of
the Security Interest in such accounts and proceeds thereof.

    

     (ii)                    The
Debtor shall cause each subsidiary of such
Debtor to immediately become a party hereto (an “Additional Debtor”),
by executing and delivering an Additional Debtor Joinder in substantially the
form of Annex A attached hereto and comply with the provisions hereof applicable
to the Debtors.  Concurrent therewith, the Additional Debtor shall
deliver replacement schedules for, or supplements to all other Schedules to (or
referred to in) this Agreement, as applicable, which replacement schedules shall
supersede, or supplements shall modify, the Schedules then in
effect.  The Additional Debtor shall also deliver such opinions of
counsel, authorizing resolutions, good standing certificates, incumbency
certificates, organizational documents, financing statements and other
information and documentation as the Secured Parties may reasonably
request.  Upon delivery of the foregoing to the Secured Parties, the
Additional Debtor shall be and become a party to this Agreement with the same
rights and obligations as the Debtors, for all purposes hereof as fully and to
the same extent as if it were an original signatory hereto and shall be deemed
to have made the representations, warranties and covenants set forth herein as
of the date of execution and delivery of such Additional Debtor Joinder, and all
references herein to the “Debtors” shall be deemed to include each Additional
Debtor.

    

    (jj)           The Debtor shall
vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the
Debentures.

    

    (kk)                    The Debtor shall
register the pledge of the applicable Pledged Securities on the books of such
Debtor.  The Debtor shall notify each issuer of Pledged Securities to
register the pledge of the applicable
Pledged Securities in the name of the Secured Parties on the books of such
issuer.  Further, except with respect to certificated securities
delivered to the Agent, the applicable Debtor shall deliver to Agent an
acknowledgement of pledge (which, where appropriate, shall comply with the
requirements of the relevant UCC with respect to perfection by registration)
signed by the issuer of the applicable Pledged Securities, which acknowledgement
shall confirm that: (a) it has registered the pledge on its books and
records; and (b) at any time directed by Agent during the continuation of an
Event of Default, such issuer will transfer the record ownership of such Pledged
Securities into the name of any designee of Agent, will take such steps as
may be necessary to effect the transfer, and will comply
with all other instructions of Agent regarding such Pledged Securities without
the further consent of the applicable Debtor.

    

    (ll)           In the event that, upon an occurrence of an Event of
Default, Agent shall sell all or any of the
Pledged Securities to another party or parties (herein called the “Transferee”) or shall
purchase or retain all or any of the Pledged Securities, The Debtor shall,
to the extent applicable: (i) deliver to Agent or the Transferee, as the case may be, the articles of incorporation,
bylaws, minute books, stock certificate books, corporate seals, deeds, leases,
indentures, agreements, evidences of indebtedness, books of account, financial
records and all other Organizational Documents and records of
the Debtors and their direct and indirect subsidiaries; (ii) use its best
efforts to obtain resignations of the persons then serving as officers and
directors of the Debtors and their direct and indirect subsidiaries, if so
requested; and (iii) use its best efforts to obtain any approvals that
are required by any governmental or regulatory body in order to permit the sale
of the Pledged Securities to the Transferee or the purchase or retention of the
Pledged Securities by Agent and allow the Transferee or
Agent to continue the business of the Debtors and their direct and indirect
subsidiaries.

     

    
      
        
        

      

      
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    (mm)                    Without
limiting the generality of the other obligations of the Debtors hereunder, The
Debtor shall promptly (i) cause to be registered at the United States Copyright
Office all of its material copyrights, (ii) cause the security interest
contemplated hereby with respect to all Intellectual Property registered at the
United States Copyright Office or United States Patent and Trademark Office to
be duly recorded at the applicable office, and (iii) give the Agent notice
whenever it acquires (whether absolutely or by license) or creates any
additional material Intellectual Property.

    

     (nn)                                 The
Debtor will from time to time, at the joint and several expense of the Debtors,
promptly execute and deliver all such further instruments and documents, and
take all such further action as may be necessary or desirable, or as the Secured
Parties may reasonably request, in order to perfect and protect any security
interest granted or purported to be granted hereby or to enable the Secured
Parties to exercise and enforce their rights and remedies hereunder and with
respect to any Collateral or to otherwise carry out the purposes of this
Agreement.

    

    (oo)                    Schedule F attached
hereto lists all of the patents, patent applications, trademarks, trademark
applications, registered copyrights, and domain names owned by any of the
Debtors as of the date hereof.  Schedule F lists all
material licenses in favor of any Debtor for the use of any patents, trademarks,
copyrights and domain names as of the date hereof.  All material
patents and trademarks of the Debtors have been duly recorded at the United
States Patent and Trademark Office and all material copyrights of the Debtors
have been duly recorded at the United States Copyright Office.

    

    (pp)                    Except
as set forth on Schedule
G attached hereto, none of the account debtors or other persons or
entities obligated on any of the Collateral is a governmental authority covered
by the Federal Assignment of Claims Act or any similar federal, state or local
statute or rule in respect of such Collateral.

    

               5.           Effect of Pledge on Certain
Rights. If any of the Collateral subject to this Agreement
consists of nonvoting equity or ownership interests (regardless of class, designation, preference or
rights) that may be converted into voting equity or ownership interests upon the
occurrence of certain events (including, without limitation, upon the transfer
of all or any of the other stock or assets of the
issuer), it is agreed that the pledge of such equity or ownership interests
pursuant to this Agreement or the enforcement of any of Agent’s rights hereunder
shall not be deemed to be the type of event which would trigger such conversion
rights notwithstanding any provisions in the Organizational
Documents or agreements to which any Debtor is subject or to which any Debtor is
party.

    

               6.
           Defaults. The following events
shall be “Events of
Default”:

    

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

    

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

    

    (c)   The
failure by any Debtor to observe or perform any of its obligations hereunder for
five (5) days after delivery to such Debtor of notice of such failure by or on
behalf of a Secured Party unless such default is capable of cure but cannot be
cured within such time frame and such Debtor is using best efforts to cure same
in a timely fashion; or

    

    (d)   If
any provision of this Agreement shall at any time for any reason be declared to
be null and void, or the validity or enforceability thereof shall be contested
by any Debtor, or a proceeding shall be commenced by any Debtor, or by any
governmental authority having jurisdiction over any Debtor, seeking to establish
the invalidity or unenforceability thereof, or any Debtor shall deny that any
Debtor has any liability or obligation purported to be created under this
Agreement.

    

    
      
        
        

      

      
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                7.              Duty To Hold In
Trust.

    

    (a)           Upon
the occurrence of any Event of Default and at any time thereafter, The Debtor
shall, upon receipt of any revenue, income,
dividend, interest or other sums subject to the Security Interest,
whether payable pursuant to the Debenture or otherwise, or of any check, draft,
note, trade acceptance or other instrument evidencing an obligation to pay any
such sum, hold the same in trust for the Secured Parties and shall forthwith
endorse and transfer any such sums or instruments, or both, to the Secured
Parties, pro-rata in proportion to their initial purchases of Debentures for
application to the satisfaction of the Obligations (and if any Debenture is not
outstanding, pro-rata in proportion to the initial purchases of the remaining
Debentures).

    

    (b)           If any Debtor shall become entitled to receive or shall
receive any securities or other property (including, without limitation, shares
of Pledged Securities or instruments representing Pledged Securities
acquired after the date hereof, or any
options, warrants, rights or other similar property or certificates representing
a dividend, or any distribution in connection with any recapitalization,
reclassification or increase or reduction of capital, or issued in
connection with any reorganization of such Debtor or any of
its direct or indirect subsidiaries) in respect of the Pledged Securities
(whether as an addition to, in substitution of, or in exchange for, such Pledged
Securities or otherwise), such Debtor agrees to (i) accept
the same as the agent of the Secured Parties; (ii) hold the same in trust on
behalf of and for the benefit of the Secured Parties; and (iii) to deliver any
and all certificates or instruments evidencing the same to Agent on or before
the close of business on the fifth business day following the
receipt thereof by such Debtor, in the exact form received together with the
Necessary Endorsements, to be held by Agent subject to the terms of this
Agreement as Collateral.

    

                8.              Rights and Remedies Upon
Default.

    

               (a)           Upon
the occurrence of any Event of Default and at any time thereafter, the Secured
Parties, acting through any agent appointed by them for such purpose, shall have
the right to exercise all of the remedies conferred hereunder and under the
Debentures, and the Secured Parties shall have all the rights and remedies of a
secured party under the UCC.  Without limitation, the Secured Parties
shall have the following rights and powers:

    

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

    

    (ii)                       Upon notice to the Debtors by Agent, all rights of
The Debtor to exercise the voting and other consensual
rights which it would otherwise be entitled
to exercise and all rights of The
Debtor to receive the dividends and
interest which it would otherwise be authorized to receive and retain, shall
cease.  Upon such notice, Agent shall have the right to receive any
interest, cash dividends or other payments
on the Collateral and, at the option of Agent, to exercise in such
Agent’s discretion all voting rights pertaining
thereto.  Without limiting the generality of the foregoing, Agent
shall have the right (but not the obligation) to
exercise all rights with respect to the Collateral as it were the sole and
absolute owners thereof, including, without limitation, to vote and/or to
exchange, at its sole discretion, any or all of the Collateral in connection
with a merger, reorganization, consolidation, recapitalization or
other readjustment concerning or involving the Collateral or any Debtor or any
of its direct or indirect subsidiaries.

    

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

    

    (iv)                       The
Secured Parties shall have the right (but not the obligation) to notify any
account debtors and any obligors under instruments or accounts to make payments
directly to the Secured Parties and to enforce the Debtors’ rights against such
account debtors and obligors.

    

    (v)                       The
Secured Parties may (but are not obligated to) direct any financial intermediary
or any other person or entity holding any investment property to transfer the
same to the Secured Parties or their designee.

    

    (vi)                       The
Secured Parties may (but are not obligated to) transfer any or all Intellectual
Property registered in the name of any Debtor at the United States Patent and
Trademark Office and/or Copyright Office into the name of the Secured Parties or
any designee or any purchaser of any Collateral.

    

               (b)           The Agent may comply with any applicable law in
connection with a disposition of Collateral and such compliance will not be
considered adversely to affect the commercial reasonableness of any sale of the
Collateral.  The Agent may sell
the Collateral without giving any warranties and may specifically disclaim such
warranties.  If the Agent sells any of the Collateral on credit, the
Debtors will only be credited with payments actually made by the
purchaser.  In addition, The
Debtor waives any and all rights that it may have to a judicial
hearing in advance of the enforcement of any of the Agent’s rights and
remedies hereunder, including, without limitation, its right following an Event
of Default to take immediate possession of the Collateral and to
exercise its rights and remedies with respect thereto.

     

    (c)           For the purpose of enabling the Agent to further
exercise rights and remedies under this Section 8 or elsewhere provided by
agreement or applicable law, The
Debtor hereby grants to the Agent, for the benefit of the Agent and the Secured
Parties, an irrevocable, nonexclusive license (exercisable without payment of
royalty or other compensation to such Debtor) to use, license or sublicense
following an Event of Default, any Intellectual Property now owned
or hereafter acquired by such Debtor, and wherever the same may be located, and
including in such license 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.

    

    
      
        
        

      

      
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                9.              Applications of Proceeds. The
proceeds of any such sale, lease or other disposition of the Collateral
hereunder shall be applied first, to the expenses of retaking, holding, storing,
processing and preparing for sale, selling, and the like (including, without
limitation, any taxes, fees and other costs incurred in connection therewith) of
the Collateral, to the reasonable attorneys’ fees and expenses incurred by the
Secured Parties in enforcing their rights hereunder and in connection with
collecting, storing and disposing of the Collateral, and then to satisfaction of
the Obligations pro rata among the Secured Parties (based on then-outstanding
principal amounts of Debentures at the time of any such determination), and to
the payment of any other amounts required by applicable law, after which the
Secured Parties shall pay to the applicable Debtor any surplus proceeds. If,
upon the sale, license or other disposition of the Collateral, the proceeds
thereof are insufficient to pay all amounts to which the Secured Parties are
legally entitled, the Debtors will be liable for the deficiency, together with
interest thereon, at the rate of 10% per annum or the lesser amount permitted by
applicable law (the “Default Rate”), and the reasonable fees of any attorneys
employed by the Secured Parties to collect such deficiency.  To the
extent permitted by applicable law, The Debtor waives all claims, damages and
demands against the Secured Parties arising out of the repossession, removal,
retention or sale of the Collateral, unless due solely to the gross negligence
or willful misconduct of the Secured Parties as determined by a final judgment
(not subject to further appeal) of a court of competent
jurisdiction.

    

               10.           Securities Law Provision.  The
Debtor recognizes that Agent may be limited
in its ability to effect a sale to the public of all or part of the Pledged
Securities by reason of certain prohibitions in the Securities Act of 1933, as
amended, or other federal or state
securities laws (collectively, the “Securities Laws”), and may be
compelled to resort to one or more sales to a restricted group of purchasers who
may be required to agree to acquire the Pledged Securities for their own
account, for investment and not with a view
to the distribution or resale thereof.  The Debtor agrees
that sales so made may be at prices and on terms less favorable than if the
Pledged Securities were sold to the public, and that Agent has no obligation to
delay the sale of any Pledged Securities
for the period of time necessary to register the Pledged Securities for sale to
the public under the Securities Laws.  The Debtor shall
cooperate with Agent in its attempt to satisfy any requirements under the
Securities Laws (including, without
limitation, registration thereunder if requested by Agent) applicable to the
sale of the Pledged Securities by Agent.

     

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

    

                12.              Responsibility for Collateral.
The Debtors assume all liabilities and responsibility in connection with all
Collateral, and the Obligations shall in no way be affected or diminished by
reason of the loss, destruction, damage or theft of any of the Collateral or its
unavailability for any reason.  Without limiting the generality of the
foregoing, (a) neither the Agent nor any Secured Party (i) has any duty (either
before or after an Event of Default) to collect any amounts in respect of the
Collateral or to preserve any rights relating to the Collateral, or (ii) has any
obligation to clean-up or otherwise prepare the Collateral for sale, and (b) The
Debtor shall remain obligated and liable under each contract or agreement
included in the Collateral to be observed or performed by such Debtor
thereunder.  Neither the Agent nor any Secured Party shall have any
obligation or liability under any such contract or agreement by reason of or
arising out of this Agreement or the receipt by the Agent or any Secured Party
of any payment relating to any of the Collateral, nor shall the Agent or any
Secured Party be obligated in any manner to perform any of the obligations of
any Debtor under or pursuant to any such contract or agreement, to make inquiry
as to the nature or sufficiency of any payment received by the Agent or any
Secured Party in respect of the Collateral or as to the sufficiency of any
performance by any party under any such contract or agreement, to present or
file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to the Agent or to which the
Agent or any Secured Party may be entitled at any time or times.

    

               13.           Security Interest Absolute.
All rights of the Secured Parties and all obligations of the Debtors hereunder,
shall be absolute and unconditional, irrespective of: (a) any lack of validity
or enforceability of this Agreement, the Debentures or any agreement entered
into in connection with the foregoing, or any portion hereof or thereof; (b) any
change in the time, manner or place of payment or performance of, or in any
other term of, all or any of the Obligations, or any other amendment or waiver
of or any consent to any departure from the Debentures or any other agreement
entered into in connection with the foregoing; (c) any exchange, release or
nonperfection of any of the Collateral, or any release or amendment or waiver of
or consent to departure from any other collateral for, or any guaranty, or any
other security, for all or any of the Obligations; (d) any action by the Secured
Parties to obtain, adjust, settle and cancel in its sole discretion any
insurance claims or matters made or arising in connection with the Collateral;
or (e) any other circumstance which might otherwise constitute any legal or
equitable defense available to a Debtor, or a discharge of all or any part of
the Security Interest granted hereby.  Until the Obligations shall
have been paid and performed in full, the rights of the Secured Parties shall
continue even if the Obligations are barred for any reason, including, without
limitation, the running of the statute of limitations or
bankruptcy.  The Debtor expressly waives presentment, protest, notice
of protest, demand, notice of nonpayment and demand for performance. In the
event that at any time any transfer of any Collateral or any payment received by
the Secured Parties hereunder shall be deemed by final order of a court of
competent jurisdiction to have been a voidable preference or fraudulent
conveyance under the bankruptcy or insolvency laws of the United States, or
shall be deemed to be otherwise due to any party other than the Secured
Parties, then, in any such event, The Debtor’s obligations hereunder shall
survive cancellation of this Agreement, and shall not be discharged or satisfied
by any prior payment thereof and/or cancellation of this Agreement, but shall
remain a valid and binding obligation enforceable in accordance with the terms
and provisions hereof.  The Debtor waives all right to require the
Secured Parties to proceed against any other person or entity or to apply any Collateral which the
Secured Parties may hold at any time, or to marshal assets, or to pursue any
other remedy. The Debtor waives any defense arising by reason of the application
of the statute of limitations to any obligation secured hereby.

    

    
      
        
        

      

      
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                14.
              Term of Agreement. This Agreement and the
Security Interest shall terminate on the date on which all payments under the
Debentures have been indefeasibly paid in full and all other Obligations have
been paid or discharged; provided, however, that all indemnities of the Debtors
contained in this Agreement (including, without limitation, Annex B hereto)
shall survive and remain operative and in full force and effect regardless of
the termination of this Agreement.

    

    15.
           Power of Attorney; Further
Assurances.

    

     (a)           The
Debtor authorizes the Secured Parties, and does hereby make, constitute and
appoint the Secured Parties and their respective officers, agents, successors or
assigns with full power of substitution, as such Debtor’s true and lawful
attorney-in-fact, with power, in the name of the various Secured Parties or such
Debtor, to, after the occurrence and during the continuance of an Event of
Default, (i) endorse any note, checks, drafts, money orders or other instruments
of payment (including payments payable under or in respect of any policy of
insurance) in respect of the Collateral that may come into possession of the
Secured Parties; (ii) to sign and endorse any financing statement pursuant to
the UCC or any invoice, freight or express bill, bill of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications and
notices in connection with accounts, and other documents relating to the
Collateral; (iii) to pay or discharge taxes, liens, security interests or other
encumbrances at any time levied or placed on or threatened against the
Collateral; (iv) to demand, collect, receipt for, compromise, settle and sue for
monies due in respect of the Collateral; (v) to transfer any Intellectual
Property or provide licenses respecting any Intellectual Property; and (vi)
generally, at the option of the Secured Parties, and at the expense of the
Debtors, at any time, or from time to time, to execute and deliver any and all
documents and instruments and to do all acts and things which the Secured
Parties deem necessary to protect, preserve and realize upon the Collateral and
the Security Interest granted therein in order to effect the intent of this
Agreement and the Debentures all as fully and effectually as the Debtors might
or could do; and The Debtor hereby ratifies all that said attorney shall
lawfully do or cause to be done by virtue hereof.  This power of
attorney is coupled with an interest and shall be irrevocable for the term of
this Agreement and thereafter as long as any of the Obligations shall be
outstanding.  The designation set forth
herein shall be deemed to amend and supersede any inconsistent provision in the
Organizational Documents or other documents or agreements to which any Debtor is
subject or to which any Debtor is a party.  Without limiting
the generality of the foregoing, after the occurrence and during the continuance
of an Event of Default, each Secured Party is specifically authorized to execute
and file any applications for or instruments of transfer and assignment of any
patents, trademarks, copyrights or other Intellectual Property with the United
States Patent and Trademark Office and the United States Copyright
Office.

    

     (b)           On
a continuing basis, The Debtor will make, execute, acknowledge, deliver, file
and record, as the case may be, with the proper filing and recording agencies in
any jurisdiction, including, without limitation, the jurisdictions indicated on
Schedule
C attached
hereto, all such instruments, and take all such action as may reasonably be
deemed necessary or advisable, or as reasonably requested by the Secured
Parties, to perfect the Security Interest granted hereunder and otherwise to
carry out the intent and purposes of this Agreement, or for assuring and
confirming to the Secured Parties the grant or perfection of a perfected
security interest in all the Collateral under the UCC.

    

    (c)           The
Debtor hereby irrevocably appoints the Secured Parties as such Debtor’s
attorney-in-fact, with full authority in the place and instead of such Debtor
and in the name of such Debtor, from time to time in the Secured Parties’
discretion, to take any action and to execute any instrument which the Secured
Parties may deem necessary or advisable to accomplish the purposes of this
Agreement, including the filing, in its sole discretion, of one or more
financing or continuation statements and amendments thereto, relative to any of
the Collateral without the signature of such Debtor where permitted by law,
which financing statements may (but need not) describe the Collateral as “all
assets” or “all personal property” or words of like import, and ratifies all
such actions taken by the Secured Parties.  This power of attorney is
coupled with an interest and shall be irrevocable for the term of this Agreement
and thereafter as long as any of the Obligations shall be
outstanding.

    

                16.              Notices. All notices,
requests, demands and other communications hereunder shall be subject to the
notice provision of the Purchase Agreement (as such term is defined in the
Debentures).

    

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

    

               18.           Reserved.

    
 

    
      
        
        

      

      
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               19.           Miscellaneous.

    

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

    

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

    

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

    

    (d)           In
the event any provision of this Agreement is held to be invalid, prohibited or
unenforceable in any jurisdiction for any reason, unless such provision is
narrowed by judicial construction, this Agreement shall, as to such
jurisdiction, be construed as if such invalid, prohibited or unenforceable
provision had been more narrowly drawn so as not to be invalid, prohibited or
unenforceable.  If, notwithstanding the foregoing, any provision of
this Agreement is held to be invalid, prohibited or unenforceable in any
jurisdiction, such provision, as to such jurisdiction, shall be ineffective to
the extent of such invalidity, prohibition or unenforceability without
invalidating the remaining portion of such provision or the other provisions of
this Agreement and without affecting the validity or enforceability of
such provision or the other provisions of this Agreement in any other
jurisdiction.

    

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

    

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

    

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

    

    (h)   All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof.  The Debtor agrees that all
proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement and the Debenture (whether brought
against a party hereto or its respective affiliates, directors, officers,
shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York,
Borough of Manhattan. The Debtor hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York,
Borough of Manhattan for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any
proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such proceeding is improper. Each party hereto hereby
irrevocably waives personal service of process and consents to process being
served in any such proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any
right to serve process in any manner permitted by law.  Each party
hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, any and all right to trial by jury in any legal proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby. If any
party shall commence a proceeding to enforce any provisions of this Agreement,
then the prevailing party in such proceeding shall be reimbursed by the other
party for its reasonable attorney’s fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such
proceeding.

    

    (i)           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.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (j)           All
Debtors shall jointly and severally be liable for the obligations of The Debtor
to the Secured Parties hereunder.

    

    (k)           The
Debtor shall indemnify, reimburse and hold harmless the Secured Parties and
their respective partners, members, shareholders, officers, directors, employees
and agents (collectively, “Indemnitees”) from
and against any and all losses, claims, liabilities, damages, penalties, suits,
costs and expenses, of any kind or nature, (including fees relating to the cost
of investigating and defending any of the foregoing) imposed on, incurred by or
asserted against such Indemnitee in any way related to or arising from or
alleged to arise from this Agreement or the Collateral, except any such losses,
claims, liabilities, damages, penalties, suits, costs and expenses which result
from the gross negligence or willful misconduct of the Indemnitee as determined
by a final, nonappealable decision of a court of competent
jurisdiction.  This indemnification provision is in addition to, and
not in limitation of, any other indemnification provision in the Debentures,
the Purchase Agreement (as such term is defined in the Debentures) or any
other agreement, instrument or other document executed or delivered in
connection herewith or therewith.

    

    (l)           Nothing in this Agreement shall be construed to subject
Agent or any Secured Party to liability as
a partner in any Debtor or any if its direct or indirect subsidiaries that is a
partnership or as a member in any Debtor or any of its direct or indirect
subsidiaries that is a limited liability company, nor shall Agent or any
Secured Party be deemed to have assumed any obligations under
any partnership agreement or limited liability company agreement, as applicable,
of any such Debtor or any if its direct or indirect subsidiaries or otherwise,
unless and until any such Secured Party exercises its
right to be substituted for such Debtor as a partner or member, as applicable,
pursuant hereto.

    

    (m)           To the extent that the grant of the security interest in
the Collateral and the enforcement of the terms hereof require the consent,
approval or action of any partner or
member, as applicable, of any Debtor or any direct or indirect subsidiary of any
Debtor or compliance with any provisions of any of the Organizational Documents,
the Debtors hereby grant such consent and approval and waive any such
noncompliance with the terms of said documents.

    

    [SIGNATURE
PAGES FOLLOW]

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

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

    

    

    
      	
              BEYOND  COMMERCE,
      INC.

               

            
	
              By:
      /s/ Robert
      McNulty

                   Name:
      Robert McNulty

                   Title:
      Chief Executive Officer

               

            
	 
      
	
              BOOMJ.COM,
      INC.

               

               

            
	
              By:
      /s/ Robert
      McNulty

                   Name:
      Robert McNulty

                   Title:
      Chief Executive Officer

               

               

            

    

    

    

    
      	
              LOCAL
      AD LINK, INC.

               

               

            
	
              By:
      /s/ Robert
      McNulty

                   Name:
      Robert McNulty

                   Title:
      Chief Executive Officer

               

            

    

    

    

    

    [SIGNATURE
PAGE OF HOLDERS FOLLOWS]

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    [SIGNATURE
PAGE OF HOLDERS TO BYOC SA]

    

               Name
of Investing Entity: Omnireliant Holdings, Inc.

    Signature of Authorized Signatory of
Investing entity:   /s/ Paul Morrison

    Name of
Authorized Signatory: Paul Morrison

    Title of
Authorized Signatory: Chief Executive Officer

    

    

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    ANNEX
A

    to

    SECURITY

    AGREEMENT

    

    
      	
               
      

            	
              FORM
      OF ADDITIONAL DEBTOR JOINDER

            

    

    

    Security
Agreement dated as of [_____ ___, 200__ made by

    [_____________

    and its
subsidiaries party thereto from time to time, as Debtors

    to and in
favor of

    the
Secured Parties identified therein (the “Security
Agreement”)

    

               Reference
is made to the Security Agreement as defined above; capitalized terms used
herein and not otherwise defined herein shall have the meanings given to such
terms in, or by reference in, the Security Agreement.

    

               The
undersigned hereby agrees that upon delivery of this Additional Debtor Joinder
to the Secured Parties referred to above, the undersigned shall (a) be an
Additional Debtor under the Security Agreement, (b) have all the rights and
obligations of the Debtors under the Security Agreement as fully and to the
same extent as if the undersigned was an original signatory thereto and (c) be
deemed to have made the representations and warranties set forth in Section ___
therein as of the date of execution and delivery of this Additional Debtor
Joinder.  WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE
UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES A SECURITY INTEREST IN
THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND
ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS SET FORTH
THEREIN.

    

               Attached
hereto are supplemental and/or replacement Schedules to the Security Agreement,
as applicable.

    

               An
executed copy of this Joinder shall be delivered to the Secured Parties, and the
Secured Parties may rely on the matters set forth herein on or after the date
hereof.  This Joinder shall not be modified, amended or terminated
without the prior written consent of the Secured Parties.

    

    
      	
               
      

            	 

    

               IN
WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in the
name and on behalf of the undersigned.

    

    
      	 	
              [Name
      of Additional Debtor]

            

    

    

    
      	 	
              By:

            

    

    
      	 	
              Name:

            

    

    
      	 	
              Title:

            

    

    

    
      	 	
              Address:

            

    

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    

    

    
      	
               
      

            	
              Dated:

            

    

    

    ANNEX
B

    to

    SECURITY

    AGREEMENT

    

    THE
AGENT

    

                          1.  Appointment. The Secured Parties
(all capitalized terms used herein and not otherwise defined shall have the
respective meanings provided in the Security Agreement to which this Annex B is
attached (the "Agreement")), by
their acceptance of the benefits of the Agreement, hereby designate OmniReliant
Holdings, Inc. (“Omni” or “Agent”) as the
Agent to act as specified herein and in the Agreement.  Each Secured
Party shall be deemed irrevocably to authorize the Agent to take such action on
its behalf under the provisions of the Agreement and any other Transaction
Document (as such term is defined in the Debentures) and to exercise such
powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Agent by the terms hereof and thereof and such
other powers as are reasonably incidental thereto.  The Agent may
perform any of its duties hereunder by or through its agents or
employees.

    

                          2.
Nature of Duties.  The Agent shall
have no duties or responsibilities except those expressly set forth in the
Agreement.  Neither the Agent nor any of its partners, members,
shareholders, officers, directors, employees or agents shall be liable for any
action taken or omitted by it as such under the Agreement or hereunder or in
connection herewith or therewith, be responsible for the consequence of any
oversight or error of judgment or answerable for any loss, unless caused
solely by its or their gross negligence or willful conduct as determined by a
final judgment (not subject to further appeal) of a court of competent
jurisdiction.  The duties of the Agent shall be mechanical and
administrative in nature; the Agent shall not have by reason of the Agreement or
any other Transaction Document a fiduciary relationship in respect of any Debtor
or any Secured Party; and nothing in the Agreement or any other Transaction
Document, expressed or implied, is intended to or shall be so construed as to
impose upon the Agent any obligations in respect of the Agreement or any other
Transaction Document except as expressly set forth herein and
therein.

    

                          3.
Lack of Reliance on
the
Agent.  Independently and without reliance upon the Agent, each
Secured Party, to the extent it deems appropriate, has made and shall continue
to make (i) its own independent investigation of the financial condition and
affairs of the Company and its subsidiaries in connection with such Secured
Party’s investment in the Debtors, the creation and continuance of the
Obligations, the transactions contemplated by the Transaction Documents, and the
taking or not taking of any action in connection therewith, and (ii) its own
appraisal of the creditworthiness of the Company and its subsidiaries, and of
the value of the Collateral from time to time, and the Agent shall have no duty
or responsibility, either initially or on a continuing basis, to provide any
Secured Party with any credit, market or other information with respect thereto,
whether coming into its possession before any Obligations are incurred or at any
time or times thereafter.  The Agent shall not be responsible to the
Debtors or any Secured Party for any recitals, statements, information,
representations or warranties herein or in any document, certificate or other
writing delivered in connection herewith, or for the execution, effectiveness,
genuineness, validity, enforceability, perfection, collectibility, priority or
sufficiency of the Agreement or any other Transaction Document, or for the
financial condition of the Debtors or the value of any of the Collateral, or be
required to make any inquiry concerning either the performance or observance
of any of the terms, provisions or conditions of the Agreement or any other
Transaction Document, or the financial condition of the Debtors, or the value of
any of the Collateral, or the existence or possible existence of any default or
Event of Default under the Agreement, the Debentures or any of the other
Transaction Documents.

    

                          4.
Certain Rights of the
Agent.  The Agent shall have the right to take any action with
respect to the Collateral, on behalf of all of the Secured
Parties.  To the extent practical, the Agent shall request
instructions from the Secured Parties with respect to any material act or action
(including failure to act) in connection with the Agreement or any other
Transaction Document, and shall be entitled to act or refrain from acting in
accordance with the instructions of Secured Parties holding a majority in
principal amount of Debentures (based on then-outstanding principal amounts of
Debentures at the time of any such determination); if such instructions are not
provided despite the Agent’s request therefor, the Agent shall be entitled to
refrain from such act or taking such action, and if such action is taken, shall
be entitled to appropriate indemnification from the Secured Parties in respect
of actions to be taken by the Agent; and the Agent shall not incur
liability to any person or entity by reason of so refraining.  Without
limiting the foregoing, (a) no Secured Party shall have any right of action
whatsoever against the Agent as a result of the Agent acting or refraining from
acting hereunder in accordance with the terms of the Agreement or any other
Transaction Document, and the Debtors shall have no right to question or
challenge the authority of, or the instructions given to, the Agent pursuant to
the foregoing and (b) the Agent shall not be required to take any action which
the Agent believes (i) could reasonably be expected to expose it to personal
liability or (ii) is contrary to this Agreement, the Transaction Documents or
applicable law.

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

                          5.  Reliance.  The Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
writing, resolution, notice, statement, certificate, telex, teletype or
telecopier message, cablegram, radiogram, order or other document or telephone
message signed, sent or made by the proper person or entity, and, with respect
to all legal matters pertaining to the Agreement and the other Transaction
Documents and its duties thereunder, upon advice of counsel selected by it and
upon all other matters pertaining to this Agreement and the other
Transaction Documents and its duties thereunder, upon advice of other experts
selected by it.

    

                          6.  Indemnification.  To the extent
that the Agent is not reimbursed and indemnified by the Debtors, the Secured
Parties will jointly and severally reimburse and indemnify the Agent, in
proportion to their initially purchased respective principal amounts of
Debentures, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by or
asserted against the Agent in performing its duties hereunder or under the
Agreement or any other Transaction Document, or in any way relating to or
arising out of the Agreement or any other Transaction Document except for those
determined by a final judgment (not subject to further appeal) of a court of
competent jurisdiction to have resulted solely from the Agent's own gross
negligence or willful misconduct.  Prior to taking any action
hereunder as Agent, the Agent may require each Secured Party to deposit with it
sufficient sums as it determines in good faith is necessary to protect the Agent
for costs and expenses associated with taking such action.

    

                          7.  Resignation by the Agent.

    

    (a)  The
Agent may resign from the performance of all its functions and duties under the
Agreement and the other Transaction Documents at any time by giving 30 days'
prior written notice (as provided in the Agreement) to the Debtors and the
Secured Parties.  Such resignation shall take effect upon the
appointment of a successor Agent pursuant to clauses (b) and (c)
below.

    

    (b)  Upon
any such notice of resignation, the Secured Parties, acting by a Majority in Interest, shall appoint a successor
Agent hereunder.

    

    (c) If a
successor Agent shall not have been so appointed within said 30-day period, the
Agent shall then appoint a successor Agent who shall serve as Agent until such
time, if any, as the Secured Parties appoint a successor Agent as provided
above.  If a successor Agent has not been appointed within such 30-day
period, the Agent may petition any court of competent jurisdiction or may
interplead the Debtors and the Secured Parties in a proceeding for the
appointment of a successor Agent, and all fees, including, but not limited to,
extraordinary fees associated with the filing of interpleader and expenses
associated therewith, shall be payable by the Debtors on demand.

    

                          8.  Rights with respect to
Collateral.  Each Secured
Party agrees with all other Secured Parties and the Agent (i) that it shall not,
and shall not attempt to, exercise any rights with respect to its security
interest in the Collateral, whether pursuant to any other agreement or otherwise
(other than pursuant to this Agreement), or take or institute any action
against the Agent or any of the other Secured Parties in respect of the
Collateral or its rights hereunder (other than any such action arising from the
breach of this Agreement) and (ii) that such Secured Party has no other rights
with respect to the Collateral other than as set forth in this Agreement and the
other Transaction Documents.

    
20

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