Document:

Unassociated Document

    SECURITY
      AGREEMENT 

    

    SECURITY
      AGREEMENT dated as of May 5, 2008 (this “Agreement”),
      made
by
      the
      Borrower and each of the Guarantors referred to below (each a “Grantor”
and,
      collectively, the “Grantors”),
      in
      favor
      of ACF CTC, L.L.C., a Delaware limited liability company, in its capacity as
      agent (in such capacity, together with any successor in such capacity,
      the “Agent”)
      on
      behalf of itself and the Lenders referred to below.

    

    WITNESSETH:

    

    WHEREAS,
      Composite Technology Corporation, a Nevada corporation, (the “Borrower”),
      each
      subsidiary of the Borrower listed as a “Guarantor”
on
      the
      signature pages thereto (together with each other Person that executes a joinder
      agreement and becomes a “Guarantor”
      thereunder or otherwise guaranties all or any part of the Obligations, each
      a
“Guarantor”
and
      collectively, the “Guarantors”),
      the
      financial institutions from time to time party thereto (each a “Lender”
and,
      collectively, the “Lenders”),
      and
      the Agent are parties to the Financing Agreement, dated as of the date hereof
      (such agreement, as amended, restated, supplemented or otherwise modified from
      time to time, being hereinafter referred to as the “Financing
      Agreement”),
      pursuant to which the Lenders have agreed to make certain loans (collectively,
      the “Loans”)
      to the
      Borrower;

    

    WHEREAS,
      it is a condition precedent to the making of any Loan to the Borrower pursuant
      to the Financing Agreement that each Grantor shall have executed and delivered
      to the Agent a security agreement providing for the grant to the Agent for
      the
      benefit of the Agent and the Lenders of a security interest in all personal
      property of such Grantor;

    

    WHEREAS,
      the Grantors are mutually dependent on each other in the conduct of their
      respective businesses as an integrated operation, with the credit needed from
      time to time by each Grantor often being provided through financing obtained
      by
      the other Grantors and the ability to obtain such financing being dependent
      on
      the successful operations of all of the Grantors as a whole; and 

    

    WHEREAS,
      each Grantor has determined that the execution, delivery and performance of
      this
      Agreement directly benefit, and are in the best interest of, such
      Grantor.

    

    NOW,
      THEREFORE, in consideration of the premises and the agreements herein and in
      order to induce the Lenders to make and maintain the Loans pursuant to the
      Financing Agreement, each Grantor hereby jointly and severally agrees with
      the
      Agent, for the benefit of the Agent and the Lenders, as follows:

     

    SECTION
      1. Definitions.

     

    (a) Reference
      is hereby made to the Financing Agreement for a statement of the terms thereof.
      All terms used in this Agreement and the recitals hereto which are defined
      in
      the Financing Agreement or in Article 9 of the Uniform Commercial Code as in
      effect from time to time in the State of New York (the “Code”)
      and
      which are not otherwise defined herein shall have the same meanings herein
      as
      set forth therein; provided
      that
      terms used herein which are defined in the Code as in effect
      in
      the State of New York on the date hereof shall continue to have the same meaning
      notwithstanding any replacement or amendment of such statute except as the
      Agent
      may otherwise determine.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) The
      following terms shall have the respective meanings provided for in the Code:
      “Accounts”, “Cash Proceeds”, “Chattel Paper”, “Commercial Tort Claim”,
“Commodity Account”, “Commodity Contracts”, “Deposit Account”, “Documents”,
“Equipment”, “Fixtures”, “General Intangibles”, “Goods”, “Instruments”,
“Inventory”, “Investment Property”, “Letter-of-Credit Rights”, “Noncash
      Proceeds”, “Payment Intangibles”, “Proceeds”, “Promissory Notes”, “Record”,
“Security Account”, “Software”, and “Supporting Obligations”.

     

    (c) As
      used
      in this Agreement, the following terms shall have the respective meanings
      indicated below, such meanings to be applicable equally to both the singular
      and
      plural forms of such terms:

    

    “Copyright
      Licenses”
means
      all licenses, contracts or other agreements, whether written or oral, naming
      any
      Grantor as licensee or licensor and providing for the grant of any right to
      use
      or sell any works covered by any copyright (including, without limitation,
      all
      Copyright Licenses set forth in Schedule II hereto).

    

    “Copyrights”
means
      all domestic and foreign copyrights, whether registered or unregistered,
      including, without limitation, all copyright rights throughout the universe
      (whether now or hereafter arising) in any and all media (whether now or
      hereafter developed), in and to all original works of authorship fixed in any
      tangible medium of expression, acquired or used by any Grantor (including,
      without limitation, all copyrights described in Schedule II hereto), all
      applications, registrations and recordings thereof (including, without
      limitation, applications, registrations and recordings in the United States
      Copyright Office or in any similar office or agency of the United States or
      any
      other country or any political subdivision thereof), and all reissues,
      divisions, continuations, continuations in part and extensions or renewals
      thereof.

    

    “Intellectual
      Property”
means
      the Copyrights, Trademarks and Patents.

    

    “Licenses”
means
      the Copyright Licenses, the Trademark Licenses and the Patent
      Licenses.

    

    “Patent
      Licenses”
means
      all licenses, contracts or other agreements, whether written or oral, naming
      any
      Grantor as licensee or licensor and providing for the grant of any right to
      manufacture, use or sell any invention covered by any Patent (including, without
      limitation, all Patent Licenses set forth in Schedule II hereto).

    

    “Patents”
means
      all domestic and foreign letters patent, design patents, utility patents,
      industrial designs, inventions, trade secrets, ideas, concepts, methods,
      techniques, processes, proprietary information, technology, know-how, formulae,
      rights of publicity and other general intangibles of like nature, now existing
      or hereafter acquired (including, without limitation, all domestic and foreign
      letters patent, design patents, utility patents, industrial designs, inventions,
      trade secrets, ideas, concepts, methods, techniques, processes, proprietary
      information, technology, know-how and formulae described in Schedule II hereto),
      all applications, registrations and recordings thereof (including, without
      limitation, applications, registrations and recordings in the United States
      Patent and Trademark Office, or in any similar office or agency of the United
      States or any other country or any political subdivision thereof), and all
      reissues, divisions, continuations, continuations in part and extensions or
      renewals thereof.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    “Trademark
      Licenses”
means
      all licenses, contracts or other agreements, whether written or oral, naming
      any
      Grantor as licensor or licensee and providing for the grant of any right
      concerning any Trademark, together with any goodwill connected with and
      symbolized by any such trademark licenses, contracts or agreements and the
      right
      to prepare for sale or lease and sell or lease any and all Inventory now or
      hereafter owned by any Grantor and now or hereafter covered by such licenses
      (including, without limitation, all Trademark Licenses described in Schedule
      II
      hereto).

    

    “Trademarks”
means
      all domestic and foreign trademarks, service marks, collective marks,
      certification marks, trade names, business names, d/b/a’s, Internet domain
      names, trade styles, designs, logos and other source or business identifiers
      and
      all general intangibles of like nature, now or hereafter owned, adopted,
      acquired or used by any Grantor (including, without limitation, all domestic
      and
      foreign trademarks, service marks, collective marks, certification marks,
      trademark registrations, trade names, business names, d/b/a’s, Internet domain
      names, trade styles, designs, logos and other source or business identifiers
      described in Schedule II hereto), all applications, registrations and recordings
      thereof (including, without limitation, applications, registrations and
      recordings 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), and all reissues, extensions or renewals
      thereof, together with all goodwill of the business symbolized by such marks
      and
      all customer lists, formulae and other Records of any Grantor relating to the
      distribution of products and services in connection with which any of such
      marks
      are used.

     

    SECTION
      2. Grant
      of Security Interest.
      As
      collateral security for all of the Obligations (as defined in Section 3 hereof),
      each Grantor hereby pledges and assigns to the Agent, and grants to the Agent
      for the benefit of the Agent and the Lenders a continuing security interest
      in,
      all personal property of such Grantor, wherever located and whether now or
      hereafter existing and whether now owned or hereafter acquired, of every kind
      and description, tangible or intangible (the “Collateral”),
      including, without limitation, the following:

     

    (a) all
      Accounts;

     

    (b) all
      Chattel Paper (whether tangible or electronic);

     

    (c) the
      Commercial Tort Claims specified on Schedule VI hereto;

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (d) all
      Deposit Accounts, all cash, and all other property from time to time deposited
      therein and the monies and property in the possession or under the control
      of
      the Agent or any Lender or any affiliate, representative, agent or correspondent
      of the Agent or any Lender; 

     

    (e) all
      Documents;

     

    (f) all
      Equipment;

     

    (g) all
      Fixtures;

    

    (h) all
      General Intangibles (including, without limitation, all Payment
      Intangibles);

     

    (i) all
      Goods;

     

    (j) all
      Instruments (including, without limitation, Promissory Notes);

     

    (k) all
      Inventory;

     

    (l) all
      Investment Property;

     

    (m) all
      Copyrights, Patents and Trademarks, and all Licenses;

     

    (n) all
      Letter-of-Credit Rights;

     

    (o) all
      Supporting Obligations;

     

    (p) all
      other
      tangible and intangible personal property of such Grantor (whether or not
      subject to the Code), including, without limitation, all bank and other accounts
      and all cash and all investments therein, all proceeds, products, offspring,
      accessions, rents, profits, income, benefits, substitutions and replacements
      of
      and to any of the property of such Grantor described in the preceding clauses
      of
      this Section 2 (including, without limitation, any proceeds of insurance thereon
      and all causes of action, claims and warranties now or hereafter held by such
      Grantor in respect of any of the items listed above), and all books,
      correspondence, files and other Records, including, without limitation, all
      tapes, disks, cards, Software, data and computer programs in the possession
      or
      under the control of such Grantor or any other Person from time to time acting
      for such Grantor that at any time evidence or contain information relating
      to
      any of the property described in the preceding clauses of this Section 2 or
      are
      otherwise necessary or helpful in the collection or realization
      thereof;
      and

     

    (q) all
      Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of
      any
      and all of the foregoing Collateral; in
      each
      case howsoever such Grantor’s interest therein may arise or appear (whether by
      ownership, security interest, claim or otherwise).

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    SECTION
      3. Security
      for Obligations.
      The
      security interest created hereby in the Collateral constitutes continuing
      collateral security for all of the following obligations, whether now existing
      or hereafter incurred (the “Obligations”):

     

    (a) the
      prompt payment by each Grantor, as and when due and payable (by scheduled
      maturity, required prepayment, acceleration, demand or otherwise), of all
      amounts from time to time owing by it in respect of the Financing Agreement
      and
      the other Loan Documents, including, without limitation, (i) the Obligations
      (as
      defined in the Financing Agreement), (ii) principal of and interest on the
      Loans
      (including, without limitation, all interest that accrues after the commencement
      of any Insolvency Proceeding of any Grantor, whether or not the payment of
      such
      interest is unenforceable or is not allowable due to the existence of such
      Insolvency Proceeding), (iii) in the case of a Guarantor, all amounts from
      time
      to time owing by such Grantor in respect of its guaranty made pursuant to
      Article XI of the Financing Agreement or under any other Guaranty to which
      it is
      a party, including all obligations guaranteed by such Grantor and (iv) all
      fees,
      commissions, charges, expense reimbursements, indemnifications and all other
      amounts due or to become due under any Loan Document; and

     

    (b) the
      due
      performance and observance by each Grantor of all of its other obligations
      from
      time to time existing in respect of the Loan Documents.

    SECTION
      4. Representations
      and Warranties.
      Each
      Grantor jointly and severally represents and warrants as follows:

     

    (a) Schedule
      I hereto sets forth (i) the exact legal name of each Grantor and (ii) the
      organizational identification number of each Grantor or states that no such
      organizational identification number exists.

     

    (b) Each
      Grantor (i) is a corporation, limited liability company or limited partnership
      duly organized, validly existing and in good standing under the laws of the
      state or jurisdiction of its organization as set forth on Schedule I hereto,
      (ii) has all requisite power and authority to execute, deliver and perform
      this Agreement and each other Loan Document to be executed and delivered by
      it
      pursuant hereto and to consummate the transactions contemplated hereby and
      thereby, and (iii) is duly qualified to do business and is in good standing
      in each jurisdiction in which the character of the properties owned or leased
      by
      it or in which the transaction of its business makes such qualification
      necessary,
      except
      where the failure to be so qualified could not be expected to have a Material
      Adverse Effect.

     

    (c) The
      execution, delivery and performance by each Grantor of this Agreement and each
      other Loan Document to which such Grantor is a party or will be a party
      (i) have been duly authorized by all necessary action, (ii) do not and will
      not contravene its charter or by-laws, its limited liability company or
      operating agreement or its certificate of partnership or partnership agreement,
      as applicable, or any applicable law or any contractual restriction binding
      on
      or otherwise affecting such Grantor or its properties, (iii) do not and will
      not
      result in or require the creation of any Lien upon or with respect to any of
      its
      properties other than pursuant to any Loan Document and (iv) do not and
      will not result in any default, noncompliance, suspension, revocation,
      impairment, forfeiture or nonrenewal of any material permit, license,
      authorization or approval applicable to it or its operations or any of its
      properties.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (d) This
      Agreement is, and each other Loan Document to which any Grantor is or will
      be a
      party, when executed and delivered pursuant hereto, will be, a legal, valid
      and
      binding obligation of such Grantor, enforceable against such Grantor in
      accordance with its terms, except as may be limited by applicable bankruptcy,
      insolvency, reorganization, moratorium or other similar laws
      affecting creditors’ rights generally and by general equitable
      principles.

     

    (e) Except
      as
      set forth on Schedule 6.01(f) of the Financing Agreement, there is no pending
      or, to the best knowledge of any Grantor, threatened action, suit, proceeding
      or
      claim affecting any Grantor or to which any of the properties of any Grantor
      is
      subject, before any Governmental Authority or any arbitrator, or any order,
      judgment or award by any Governmental Authority or arbitrator, that may
      adversely affect the grant by any Grantor, or the perfection, of the security
      interest purported to be created hereby in the Collateral, or the exercise
      by
      the Agent of any of its rights or remedies hereunder.

     

    (f) All
      taxes, assessments and other governmental charges imposed upon any Grantor
      or
      any property of such Grantor (including, without limitation, all federal income
      and social security taxes on employees’ wages) and which have become due and
      payable on or prior to the date hereof have been paid, except to the extent
      contested in good faith by proper proceedings which stay the imposition of
      any
      penalty, fine or Lien resulting from the non-payment thereof and with respect
      to
      which adequate reserves have been set aside for the payment thereof on the
      Financial Statements in accordance with GAAP.

     

    (g) All
      Equipment, Fixtures, Goods and Inventory now existing are, and all Equipment,
      Fixtures, Goods and Inventory hereafter existing will be, located at the
      addresses specified therefor in Schedule III hereto. Each Grantor’s chief place
      of business and chief executive office, the place where such Grantor keeps
      its
      Records concerning Accounts and all originals of all Chattel Paper are located
      at the addresses specified therefor in Schedule III hereto. None of the Accounts
      is evidenced by Promissory Notes or other Instruments. Set forth in Schedule
      IV
      hereto is a complete and accurate list, as of the date of this Agreement, of
      each Deposit Account, Securities Account and Commodities Account of each
      Grantor, together with the name and address of each institution at which each
      such Account is maintained, the account number for each such Account and a
      description of the purpose of each such Account. Set forth in Schedule II hereto
      is a complete and correct list of each trade name used by each Grantor and
      the
      name of, and each trade name used by, each person from which such Grantor has
      acquired any substantial part of the Collateral. 

     

    (h) Each
      Grantor has delivered to the Agent complete and correct copies of each License
      described in Schedule II hereto, including all schedules and exhibits thereto,
      which represents all of the Licenses existing on the date of this Agreement.
      Each such License sets forth the entire agreement and understanding of the
      parties thereto relating to the subject matter thereof, and there are no other
      agreements, arrangements or understandings, written or oral, relating to the
      matters covered thereby or the rights of any Grantor or any of its Affiliates
      in
      respect thereof. Each License now existing is, and each other License will
      be,
      the legal, valid and binding obligation of the parties thereto, enforceable
      against such parties in accordance with its terms. No default thereunder by
      any
      such party has occurred, nor does any defense, offset, deduction or counterclaim
      exist thereunder in favor of any such party.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (i) The
      Grantors own and control, or otherwise possess adequate rights to use, all
      Trademarks, Patents and Copyrights, which are the only trademarks, patents,
      copyrights, inventions, trade secrets, proprietary information and technology,
      know-how, formulae, and rights of publicity necessary to conduct their business
      in substantially the same manner as conducted as of the date hereof. Schedule
      II
      hereto sets forth a true and complete list of all Intellectual Property and
      Licenses owned or used by each Grantor as of the date hereof. All such
      Intellectual Property is subsisting and in full force and effect, has not been
      adjudged invalid or unenforceable, is valid and enforceable and has not been
      abandoned in whole or in part. Except as set forth in Schedule II, no such
      Intellectual Property is the subject of any licensing or franchising agreement.
      No Grantor has any knowledge of any conflict with the rights of others to any
      Intellectual Property and, to the best knowledge of each Grantor, no Grantor
      is
      now infringing or in conflict with any such rights of others in any material
      respect, and to the best knowledge of each Grantor, no other Person is now
      infringing or in conflict in any material respect with any such properties,
      assets and rights owned or used by any Grantor. No Grantor has received any
      notice that it is violating or has violated the trademarks, patents, copyrights,
      inventions, trade secrets, proprietary information and technology, know-how,
      formulae, rights of publicity or other intellectual property rights of any
      third
      party.

     

    (j) The
      Grantors are and will be at all times the sole and exclusive owners of, or
      otherwise have and will have adequate rights in, the Collateral free and clear
      of any Lien except for (i) the Lien created by this Agreement and
      (ii) the Permitted Liens. No effective financing statement or other
      instrument similar in effect covering all or any part of the Collateral is
      on
      file in any recording or filing office except (A) such as may have been
      filed in favor of the Agent relating to this Agreement and (B) such as may
      have been filed to perfect or protect any security interests or Liens permitted
      by the Financing Agreement.

     

    (k) The
      exercise by the Agent of any of its rights and remedies hereunder will not
      contravene any law or any contractual restriction binding on or otherwise
      affecting any Grantor or any of its properties and will not result in or require
      the creation of any Lien, upon or with respect to any of its
      properties.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (l) No
      authorization or approval or other action by, and no notice to or filing with,
      any Governmental Authority or other regulatory body, or any other Person, is
      required for (i) the grant by any Grantor, or the perfection, of the
      security interest purported to be created hereby in the Collateral or
      (ii) the exercise by the Agent of any of its rights and remedies hereunder,
      except (A) for the filing under the Uniform Commercial Code as in effect in
      the applicable jurisdiction of the financing statements described in Schedule
      V
      hereto, all of which financing statements have been duly filed and are in full
      force and effect, (B) with respect to the perfection of the security
      interest created hereby in the United States Intellectual Property, for the
      recording of the appropriate Assignment for Security, substantially in the
      form
      of Exhibit A hereto in the United States Patent and Trademark Office or the
      United States Copyright Office, as applicable, (C) with respect to the
      perfection of the security interest created hereby in foreign Intellectual
      Property and Licenses, for registrations and filings in jurisdictions located
      outside of the United States and covering rights in such jurisdictions relating
      to the Intellectual Property and Licenses, (D) with respect to the
      perfection of the security interest created hereby in motor vehicles for which
      the title to such motor vehicles is governed by a certificate of title or
      ownership (collectively, the “Motor
      Vehicles”),
      for
      the submission of an appropriate application requesting that the Lien of the
      Agent be noted on the certificate of title or ownership, completed and
      authenticated by the applicable Grantor, together with the certificate of title,
      with respect to each Motor Vehicle, to the appropriate state agency,
      (E) with respect to any action that may be necessary to obtain control in
      Collateral described in Sections 5(i) and 5(k) hereof, the taking of such action
      and (F) the taking of possession of all Documents, Chattel Paper,
      Instruments and cash constituting Collateral.

     

    (m) This
      Agreement creates in favor of the Agent a legal, valid and enforceable security
      interest in the Collateral, as security for the Obligations. The Agent’s having
      possession of all Instruments, Documents, Chattel Paper and cash constituting
      Collateral and obtaining control of all Collateral described in Sections 5(i)
      and 5(k) hereof from time to time, the recording of the appropriate Assignment
      for Security executed pursuant hereto in the United States Patent and Trademark
      Office and the United States Copyright Office, as applicable, the submission
      of
      an appropriate application requesting that the Lien of the Agent be noted on
      the
      certificate of title or ownership, completed and authenticated by the applicable
      Grantor, together with the certificate of title or ownership, with respect
      to
      such Motor Vehicles, to the applicable state agency, and the filing of the
      financing statements described in Schedule V hereto and, with respect to the
      Intellectual Property hereafter existing and not covered by an appropriate
      Assignment for Security, the recording in the United States Patent and Trademark
      Office or the United States Copyright Office, as applicable, of appropriate
      instruments of assignment, result in the perfection of such security interests.
      Such security interests are, or in the case of Collateral in which any Grantor
      obtains rights after the date hereof, will be, perfected, first priority
      security interests, subject only to the Permitted Liens and the recording of
      such instruments of assignment. Such recordings and filings and all other action
      necessary or desirable to perfect and protect such security interest have been
      duly taken, except for (i) the Agent’s having possession of Instruments,
      Documents, Chattel Paper and cash constituting Collateral after the date hereof,
      (ii) the Agent obtaining control of any Collateral described in Sections
      5(i) and 5(k) hereof and (iii) the other filings and recordations described
      in Section 4(l) hereof.

     

    (n) No
      Grantor holds any Commercial Tort Claims or is aware of any such pending claims,
      except for such claims described in Schedule VI.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    SECTION
      5. Covenants
      as to the Collateral.
      So long
      as any of the Obligations shall remain outstanding and all Commitments shall
      not
      have expired or terminated, unless the Agent shall otherwise consent in
      writing:

     

    (a) Further
      Assurances.
      Each
      Grantor will at its expense, at any time and from time to time, promptly execute
      and deliver all further instruments and documents and take all further action
      that may be necessary or desirable or that the Agent may reasonably request
      in
      order to (i) perfect and protect the security interest purported to be
      created hereby; (ii) enable the Agent to exercise and enforce its rights
      and remedies hereunder in respect of the Collateral; or (iii) otherwise
      effect the purposes of this Agreement, including, without limitation:
      (A) marking conspicuously all Chattel Paper and each License and, at the
      request of the Agent, each of its Records pertaining to the Collateral with
      a
      legend, in form and substance satisfactory to the Agent, indicating that such
      Chattel Paper, License or Collateral is subject to the security interest created
      hereby, (B) if any Account shall be evidenced by Promissory Notes or other
      Instruments or Chattel Paper, delivering and pledging to the Agent hereunder
      such Promissory Notes, Instruments or Chattel Paper, duly endorsed and
      accompanied by executed instruments of transfer or assignment, all in form
      and
      substance reasonably satisfactory to the Agent, (C) executing and filing
      (to the extent, if any, that such Grantor’s signature is required thereon) or
      authenticating the filing of, such financing or continuation statements, or
      amendments thereto, as may be necessary or desirable or that the Agent may
      reasonably request in order to perfect and preserve the security interest
      purported to be created hereby, (D) furnishing to the Agent from time to
      time statements and schedules further identifying and describing the Collateral
      and such other reports in connection with the Collateral as the Agent may
      reasonably request, all in reasonable detail, (E) if any Collateral shall
      be in the possession of a third party, notifying such Person of the Agent’s
      security interest created hereby and obtaining a written acknowledgment from
      such Person that such Person holds possession of the Collateral for
      the
      benefit of the Agent, which such written acknowledgement shall be in form and
      substance reasonably satisfactory to the Agent, (F) if at any time after
      the date hereof, any Grantor acquires or holds any Commercial Tort Claim,
      promptly notifying the Agent in a writing signed by such Grantor setting forth
      a
      brief description of such Commercial Tort Claim and granting to the Agent a
      security interest therein and in the proceeds thereof, which writing shall
      incorporate the provisions hereof and shall be in form and substance reasonably
      satisfactory to the Agent, (G) if requested by Agent after the occurrence
      or during the continuance of an Event of Default, causing the Agent to be listed
      as the lienholder, for the benefit of the Agent and the Lenders, on each
      certificate of title or ownership with respect to each Motor Vehicle or other
      item of Equipment subject to a certificate of title or ownership (other than
      a
      Motor Vehicle or item of Equipment that is subject to a purchase money security
      interest permitted by Section 7.02(a) of the Financing Agreement) and within
      30
      days of such request deliver evidence of the same to the Agent and
      (H) taking all actions required by any earlier versions of the Uniform
      Commercial Code or by other law, as applicable, in any relevant Uniform
      Commercial Code jurisdiction, or by other law as applicable in any foreign
      jurisdiction.

     

    (b) Location
      of Equipment and Inventory.
      Each
      Grantor will keep the Equipment and Inventory (other than used Equipment and
      Inventory sold in the ordinary course of business in accordance with Section
      5(g) hereof) at the locations specified therefor in Section 4(g) hereof or,
      upon not less than 30 days’ prior written notice to the Agent accompanied by a
      new Schedule III hereto indicating each new location of the Equipment and
      Inventory, at such other locations in the continental United States as the
      Grantors may elect, provided that (i) all action has been taken to grant to
      the
      Agent a perfected, first priority security interest in such Equipment and
      Inventory (subject only to Permitted Liens), and (ii) the Agent’s rights in such
      Equipment and Inventory, including, without limitation, the existence,
      perfection and priority of the security interest created hereby in such
      Equipment and Inventory, are not adversely affected thereby.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (c) Condition
      of Equipment.
      Each
      Grantor will maintain the Equipment or cause the Equipment to be maintained
      and
      preserved in good condition, repair and working order as when acquired and
      in
      accordance with any manufacturer’s manual, ordinary wear and tear excepted, and
      will forthwith, or in the case of any loss or damage to any Equipment as quickly
      as practicable after the occurrence thereof, make or cause to be made all
      repairs, replacements and other improvements in connection therewith which
      are
      necessary or desirable, consistent with past practice, or which the Agent may
      request to such end. Each Grantor will promptly furnish to the Agent a statement
      describing in reasonable detail any loss or damage in excess of $250,000 to
      any
      Equipment.

     

    (d) Taxes,
      Etc.
      Each
      Grantor jointly and severally agrees to pay promptly when due all property
      and
      other taxes, assessments and governmental
      charges or levies imposed upon, and all claims (including claims for labor,
      materials and supplies) against, the Equipment and Inventory, except to the
      extent the validity thereof is being contested in good faith by proper
      proceedings which stay the imposition of any penalty, fine or Lien resulting
      from the non-payment thereof and with respect to which adequate reserves in
      accordance with GAAP have been set aside for the payment thereof.

     

    (e) Insurance.

     

    (i) Each
      Grantor will, at its own expense, maintain (i) products liability insurance
      in
      an amount not less than $12,000,000, reasonably satisfactory to the Agent,
      and
      (ii) insurance (including, without limitation, comprehensive general liability
      and property insurance) with respect to the Equipment and Inventory in such
      amounts, against such risks, in such form and with responsible and reputable
      insurance companies or associations as is required by any Governmental Authority
      having jurisdiction with respect thereto or as is carried generally in
      accordance with sound business practice by companies in similar businesses
      similarly situated and in any event, in amount, adequacy and scope reasonably
      satisfactory to the Agent. Each policy for liability insurance shall provide
      for
      all losses to be paid on behalf of the Agent and the Grantors as their
      respective interests may appear, and each policy for property damage insurance
      shall provide for all losses (except for losses of less than $50,000 per
      occurrence) to be adjusted with, and paid directly to, the Agent. Each such
      policy shall in addition (A) name each Grantor and the Agent as insured parties
      thereunder (without any representation or warranty by or obligation upon the
      Agent) as their interests may appear, (B) contain an agreement by the insurer
      that any loss thereunder shall be payable to the Agent on its own account
      notwithstanding any action, inaction or breach of representation or warranty
      by
      any Grantor, (C) provide that there shall be no recourse against the Agent
      for
      payment of premiums or other amounts with respect thereto and (D) provide that
      at least 30 days’ prior written notice of cancellation, lapse, expiration or
      other adverse change shall be given to the Agent by the insurer. Each Grantor
      will, if so requested by the Agent, deliver to the Agent original or duplicate
      policies of such insurance and, as often as the Agent may reasonably request,
      a
      report of a reputable insurance broker with respect to such insurance. Each
      Grantor will also, at the request of the Agent, execute and deliver instruments
      of assignment of such insurance policies and cause the respective insurers
      to
      acknowledge notice of such assignment.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (ii) Reimbursement
      under any liability insurance maintained by any Grantor pursuant to this Section
      5(e) may be paid directly to the Person who shall have incurred liability
      covered by such insurance. In the case of any loss involving damage to Equipment
      or Inventory, any proceeds of insurance maintained by a Grantor pursuant to
      this
      Section 5(e) shall be paid to the Agent (except as to which paragraph (iii)
      of
      this Section 5(e) is not applicable), such Grantor will make or cause to be
      made
      the necessary repairs to or replacements of such Equipment or Inventory, and
      any
      proceeds of insurance maintained by such Grantor pursuant to this Section 5(e)
      shall be paid by the Agent to such Grantor as reimbursement for the costs of
      such repairs or replacements.

     

    (iii) Upon
      the
      occurrence and during the continuance of a Default or Event of Default or upon
      any insurance payment (in excess of $50,000 per occurrence) in respect of any
      Equipment or Inventory, all insurance payments in respect of such Equipment
      or
      Inventory shall be paid to the Agent and applied as specified in Section 7(b)
      hereof.

     

    (f) Provisions
      Concerning the Accounts and the Licenses.

     

    (i) No
      Grantor shall, without the prior written consent of the Agent, change
      (A) its name, identity or organizational structure, or (B) its
      jurisdiction of incorporation as set forth in Section 4(b) hereto. Each Grantor
      shall (x) immediately notify the Agent upon obtaining an organizational
      identification number, if on the date hereof such Grantor did not have such
      identification number, and (y) keep adequate records concerning the
      Accounts and Chattel Paper and permit representatives of the Agent pursuant
      to
      the terms of the Financing Agreement to inspect and make abstracts from such
      Records and Chattel Paper.

     

    (ii) Each
      Grantor will, except as otherwise provided in this subsection (f), continue
      to collect, at its own expense, all amounts due or to become due under the
      Accounts. In connection with such collections, each Grantor may (and, at the
      Agent’s direction, will) take such action as such Grantor or the Agent may deem
      necessary or advisable to enforce collection or performance of the Accounts;
      provided,
      however,
      that
      the Agent shall have the right at any time, upon the occurrence and during
      the
      continuance of an Event of Default, to notify the Account Debtors or obligors
      under any Accounts of the assignment of such Accounts to the Agent and to direct
      such Account Debtors or obligors to make payment of all amounts due or to become
      due to such Grantor thereunder directly to the Agent or its designated agent
      and, upon such notification and at the expense of such Grantor and to the extent
      permitted by law, to enforce collection of any such Accounts and to adjust,
      settle or compromise the amount or payment thereof, in the same manner and
      to
      the same extent as such Grantor might have done. After receipt by any Grantor
      of
      a notice from the Agent that the Agent has notified, intends to notify, or
      has
      enforced or intends to enforce a Grantor’s rights against the Account Debtors or
      obligors under any Accounts as referred to in the proviso to the immediately
      preceding sentence, (A) all amounts and proceeds (including Instruments)
      received by such Grantor in respect of the Accounts shall be received in trust
      for the benefit of the Agent hereunder, shall be segregated from other funds
      of
      such Grantor and shall be forthwith paid over to the Agent in the same form
      as
      so received (with any necessary endorsement) to be held as cash collateral
      and
      either (i) credited to the Loan Account so long as no Event of Default
      shall have occurred and be continuing or (ii) if an Event of Default shall
      have
      occurred and be continuing, applied as specified in Section 7(b) hereof, and
      (B)
      such Grantor will not adjust, settle or compromise the amount or payment of
      any
      Account or release wholly or partly any Account Debtor or obligor thereof or
      allow any credit or discount thereon. In addition, upon the occurrence and
      during the continuance of an Event of Default, the Agent may (in its sole and
      absolute discretion) direct any or all of the banks and financial institutions
      with which any Grantor either maintains a Deposit Account or a lockbox or
      deposits the proceeds of any Accounts to send immediately to the Agent by wire
      transfer (to such account as the Agent shall specify, or in such other manner
      as
      the Agent shall direct) all or a portion of such securities, cash, investments
      and other items held by such institution. Any such securities, cash, investments
      and other items so received by the Agent shall (in the sole and absolute
      discretion of the Agent) be held as additional Collateral for the Obligations
      or
      distributed in accordance with Section 7 hereof.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    (iii) Upon
      the
      occurrence and during the continuance of any breach or default under any License
      referred to in Schedule II hereto by any party thereto other than a Grantor,
      (A) the relevant Grantor will, promptly after obtaining knowledge thereof,
      give the Agent written notice of the nature and duration thereof, specifying
      what action, if any, it has taken and proposes to take with respect thereto,
      (B)
      no Grantor will, without the prior written consent of the Agent, declare or
      waive any such breach or default or affirmatively consent to the cure thereof
      or
      exercise any of its remedies in respect thereof, and (C) each Grantor will,
      upon
      written instructions from the Agent and at such Grantor’s expense, take such
      action as the Agent may deem necessary or advisable in respect
      thereof.

     

    (iv) Each
      Grantor will, at its expense, promptly deliver to the Agent a copy of each
      notice or other communication received by it by which any other party to any
      License referred to in Schedule II hereto purports to exercise any of its rights
      or affect any of its obligations thereunder, together with a copy of any reply
      by such Grantor thereto.

     

    (v) Each
      Grantor will exercise promptly and diligently each and every material right
      which it may have under each License (other than any right of termination)
      and
      will duly perform and observe in all material respects all of its obligations
      under each License and will take all action necessary to maintain the Licenses
      in full force and effect. No Grantor will, without the prior written consent
      of
      the Agent, cancel, terminate, amend or otherwise modify in any material respect,
      or waive any material provision of, any License referred to in Schedule II
      hereto.

     

    (g) Transfers
      and Other Liens.

     

    (i) Except
      to
      the extent expressly permitted by the Financing Agreement, no Grantor will
      sell,
      assign (by operation of law or otherwise), lease, license, exchange or otherwise
      transfer or dispose of any of the Collateral.

     

    (ii) Except
      to
      the extent expressly permitted by Section 7.02(a) of the Financing Agreement,
      no
      Grantor will create, suffer to exist or grant any Lien upon or with respect
      to
      any Collateral.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (h) Intellectual
      Property.

     

    (i) In
      the
      event that any Grantor shall (A) obtain rights to any new Trademarks
      necessary for the operation of its business, or any reissue, renewal or
      extension of any existing Trademark necessary for the operation of its business,
      (B) obtain rights to or develop any new patentable inventions, or become
      entitled to the benefit of any Patent, or any reissue, division, continuation,
      renewal, extension or continuation-in-part of any existing Patent or any
      improvement thereof (whether pursuant to any license or otherwise) or (C) obtain
      rights to or develop any new works protectable by Copyright, or become entitled
      to the benefit of any rights with respect to any Copyright or any registration
      or application therefor, or any renewal or extension of any existing Copyright
      or any registration or application therefor, the provisions of Section 2
      shall automatically apply thereto and such Grantor shall give to the Agent
      prompt notice thereof in accordance with the terms of this Agreement and the
      Financing Agreement. Except as otherwise provided herein or in the Financing
      Agreement, in
      no
      event shall any Grantor, either itself or through any agent, employee, licensee
      or designee, file an application for the registration of any Trademark or
      Copyright or the issuance of any Patent with the United States Patent and
      Trademark Office or the United States Copyright Office, as applicable, or in
      any
      similar office or agency of the United States or any country or any political
      subdivision thereof unless it gives the Agent prior written notice
      thereof.

    

    (ii) Each
      Grantor shall execute, authenticate and deliver any and all assignments,
      agreements, instruments, documents and papers as required by this Agreement
      or
      the Financing Agreement, or as the Agent may otherwise reasonably request,
      to
      evidence the Agent’s security interest hereunder in such future acquired
      Intellectual Property and the General Intangibles of such Grantor relating
      thereto or represented thereby, and each Grantor hereby appoints the Agent
      its
      attorney-in-fact to execute and/or authenticate and file all such writings
      for
      the foregoing purposes, all acts of such attorney being hereby ratified and
      confirmed, and such power (being coupled with an interest) shall be irrevocable
      until the termination of all Commitments, the repayment of all of the
      Obligations in full and the termination of each of the Loan
      Documents.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (iii) If
      applicable, each Grantor has duly executed and delivered the applicable
      Assignment for Security in the form attached hereto as Exhibit A.
      Each
      Grantor (either itself or through licensees) will, and will cause each licensee
      thereof to, take all commercially reasonable action necessary to maintain all
      of
      the Intellectual Property in full force and effect, including, without
      limitation, using the proper statutory notices and markings and using the
      Trademarks on each applicable trademark class of goods in order to so maintain
      the Trademarks in full force free, from any claim of abandonment for non-use,
      and no Grantor will (nor permit any licensee thereof to) do any act or knowingly
      omit to do any act whereby any Intellectual Property may become invalidated;
      provided,
      however,
      that so
      long as no Event of Default has occurred and is continuing, no Grantor shall
      have an obligation to use or to maintain any Intellectual Property (A) that
      relates solely to any product or work, that has been, or is in the process
      of
      being, discontinued, abandoned or terminated, (B) that is being replaced with
      Intellectual Property substantially similar to the Intellectual Property that
      may be abandoned or otherwise become invalid, so long as the failure to use
      or
      maintain such Intellectual Property does not materially adversely affect the
      validity of such replacement Intellectual Property and so long as such
      replacement Intellectual Property is subject to the Lien created by this
      Agreement or (C) that is substantially the same as any other Intellectual
      Property that is in full force, so long the failure to use or maintain such
      Intellectual Property does not materially adversely affect the validity of
      such
      replacement Intellectual Property and so long as such other Intellectual
      Property is subject to the Lien and security interest created by this Agreement.
      Each Grantor will cause to be taken all necessary steps in any proceeding before
      the United States Patent and Trademark Office and the United States Copyright
      Office or any similar office or agency in any other country or political
      subdivision thereof to maintain each registration of the Intellectual Property
      (other than the Intellectual Property described in the proviso to the
      immediately preceding sentence), including, without limitation, filing of
      renewals, affidavits of use, affidavits of incontestability and opposition,
      interference and cancellation proceedings and payment of maintenance fees,
      filing fees, taxes or other governmental fees. If any Intellectual Property
      is
      infringed, misappropriated, diluted or otherwise violated in any material
      respect by a third party, the Grantors shall (x) upon learning of such
      infringement, misappropriation, dilution or other violation, promptly notify
      the
      Agent and (y) to the extent the Grantors shall deem appropriate under the
      circumstances, promptly sue for infringement, misappropriation, dilution or
      other violation, seek injunctive relief where appropriate and recover any and
      all damages for such infringement, misappropriation, dilution or other
      violation, or take such other actions as the Grantors shall deem appropriate
      under the circumstances to protect such Intellectual Property. Each Grantor
      shall furnish to the Agent from time to time (but, unless an Event of Default
      has occurred and is continuing, no more frequently than quarterly) statements
      and schedules further identifying and describing the Intellectual Property
      and
      Licenses and such other reports in connection with the Intellectual Property
      and
      Licenses as the Agent may reasonably request, all in reasonable detail and
      promptly upon request of the Agent, following receipt by the Agent of any such
      statements, schedules or reports, the Grantors shall modify this Agreement
      by
      amending Schedule II hereto to include any Intellectual Property or License,
      as
      the case may be, which becomes part of the Collateral under this Agreement
      and
      shall execute and authenticate such documents and do such acts as shall be
      necessary or, in the judgment of the Agent, desirable to subject such
      Intellectual Property and Licenses to the Lien and security interest created
      by
      this Agreement. Notwithstanding anything herein to the contrary, upon the
      occurrence and during the continuance of an Event of Default, no Grantor may
      abandon or otherwise permit any Intellectual Property to become invalid without
      the prior written consent of the Agent, and if any Intellectual Property is
      infringed, misappropriated, diluted or otherwise violated in any material
      respect by a third party, the Grantors will take such action as the Agent shall
      deem appropriate under the circumstances to protect such Intellectual
      Property.

     

    (i) Deposit,
      Commodities and Securities Accounts.
      Prior
      to the date hereof, each Grantor shall, in accordance with the terms of the
      Financing Agreement, cause each bank and other financial institution referred
      to
      in Schedule IV hereto to execute and deliver to the Agent a control agreement,
      in form and substance reasonably satisfactory to the Agent, duly executed by
      such Grantor and such bank or financial institution, or enter into other
      arrangements in form and substance reasonably satisfactory to the Agent,
      pursuant to which such institution shall irrevocably agree, inter alia,
      that
      (i) it will comply at any time with the instructions originated by the
      Agent to such bank or financial institution directing the disposition of cash,
      Commodity Contracts, securities, Investment Property and other items from time
      to time credited to such account, without further consent of such Grantor,
      which
      instructions the Agent will not give to such bank or other financial institution
      in the absence of a continuing Event of Default, (ii) except as otherwise
      set forth in the Financing Agreement, all cash, Commodity Contracts, securities,
      Investment Property and other items of such Grantor deposited with such
      institution shall be subject to a perfected, first priority security interest
      in
      favor of the Agent, (iii) any right of set off, banker’s Lien or other
      similar Lien, security interest or encumbrance shall be fully waived as against
      the Agent, and (iv) upon receipt of written notice from the Agent during
      the continuance of an Event of Default, such bank or financial institution
      shall
      promptly send to the Agent by wire transfer (to such account as the Agent shall
      specify, or in such other manner as the Agent shall direct) all such cash,
      the
      value of any Commodity Contracts, securities, Investment Property and other
      items held by it. Without the prior written consent of the Agent, no Grantor
      shall make or maintain any Deposit Account, Commodity Account or Securities
      Account except for the accounts set forth in Schedule VI hereto. The provisions
      of this paragraph 5(i) shall not apply to (i) Deposit Accounts for which the
      Agent is the depositary and (ii) Deposit Accounts specially and exclusively
      used
      for payroll, payroll taxes and other employee wage and benefit payments to
      or
      for the benefit of a Grantor’s salaried employees.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    (j) Motor
      Vehicles.

    

    (i) If
      requested by the Agent after the occurrence and during the continuance of a
      Default or Event of Default, each Grantor shall deliver to the Agent originals
      of the certificates of title or ownership for all Motor Vehicles owned by it
      with the Agent listed as lienholder, for the benefit of the Agent and the
      Lenders; provided
      that the
      Agent shall not be required to be listed as the lienholder if a Motor Vehicle
      is
      subject to a purchase money security interest permitted by Section 7.02(a)
      of
      the Financing Agreement.

     

    (ii) Each
      Grantor hereby appoints the Agent as its attorney-in-fact, effective the date
      hereof and terminating upon the termination of this Agreement, for the purpose
      of (A) executing on behalf of such Grantor title or ownership applications
      for
      filing with appropriate state agencies to enable Motor Vehicles now owned or
      hereafter acquired by such Grantor to be retitled and the Agent listed as
      lienholder thereof, (B) filing such applications with such state agencies,
      and
      (C) executing such other documents and instruments on behalf of, and taking
      such
      other action in the name of, such Grantor as the Agent may deem necessary or
      advisable to accomplish the purposes hereof (including, without limitation,
      for
      the purpose of creating in favor of the Agent a perfected Lien on the Motor
      Vehicles and exercising the rights and remedies of the Agent hereunder). This
      appointment as attorney-in-fact is coupled with an interest and is irrevocable
      until all of the Obligations are paid in full after all Commitments have been
      terminated.

     

    (iii) Any
      certificates of title or ownership delivered pursuant to the terms hereof shall
      be accompanied by odometer statements for each Motor Vehicle covered
      thereby.

     

    (iv) So
      long
      as no Event of Default shall have occurred and be continuing, upon the request
      of any Grantor, the Agent shall execute and deliver to such Grantor such
      instruments as such Grantor shall reasonably request to remove the notation
      of
      the Agent as lienholder on any certificate of title for any Motor Vehicle;
      provided
      that any
      such instruments shall be delivered, and the release effective, only upon
      receipt by the Agent of a certificate from such Grantor, stating that the Motor
      Vehicle, the Lien on which is to be released, is to be sold or has suffered
      a
      casualty loss (with title thereto passing to the casualty insurance company
      therefor in settlement of the claim for such loss), the amount that such Grantor
      will receive as sale proceeds or insurance proceeds and whether or not such
      sale
      proceeds or insurance proceeds are required by Section 2.05 of the Financing
      Agreement to be paid to the Agent to be applied to the Obligations and, to
      the
      extent required by Section 2.05 of the Financing Agreement, any proceeds of
      such
      sale or casualty loss shall be paid to the Agent hereunder to be applied to
      the
      Obligations then outstanding.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (k) Control.
      Each
      Grantor hereby agrees to take any or all action that may be necessary or
      desirable or that the Agent may reasonably request in order for the Agent to
      obtain control in accordance with Sections 9-104 through 9-107 of the Code
      with
      respect to the following Collateral: (i) Deposit Accounts, (ii) Electronic
      Chattel Paper, (iii) Investment Property and (iv) Letter-of-Credit
      Rights.

    

    (l) Inspection
      and Reporting.
      Each
      Grantor shall permit the Agent, or any agents or representatives thereof or
      such
      professionals or other Persons as the Agent may designate (i) to examine
      and make copies of and abstracts from such Grantor’s records and books of
      account, (ii) to visit and inspect its properties, (iii) to verify
      materials, leases, notes, Accounts, Inventory and other assets of such Grantor
      from time to time, (iii) to conduct audits, physical counts, appraisals
      and/or valuations, Phase I and Phase II Environmental Site Assessments or
      examinations at the locations of such Grantor and (iv) to discuss such Grantor’s
      affairs, finances and accounts with any of its directors, officers, managerial
      employees, independent accountants or any of its other representatives, in
      each
      case, as provided in and subject to Section 4.01 and Section 7.01(f) the
      Financing Agreement.

    

    (m) The
      partnership interests or membership interests of each Grantor in each of its
      Subsidiaries that is a partnership or a limited liability company are not (i)
      dealt in or traded on securities exchanges or in securities markets, (ii)
      securities for purposes of Article 8 of any relevant Uniform Commercial Code,
      (iii) investment company securities within the meaning of Section 8-103 of
      any
      relevant Uniform Commercial Code and (iv) evidenced by a certificate. Such
      partnership interests or membership interests constitute General
      Intangibles.

     

    SECTION
      6. Additional
      Provisions Concerning the Collateral.

     

    (a) Each
      Grantor hereby (i) authorizes the Agent to file, one or more financing or
      continuation statements, and amendments thereto, relating to the Collateral
      and
      (ii) ratifies such authorization to the extent that the Agent has filed any
      such financing or continuation statements, or amendments thereto, prior to
      the
      date hereof. A photocopy or other reproduction of this Agreement or any
      financing statement covering the Collateral or any part thereof shall be
      sufficient as a financing statement where permitted by law.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    (b) Each
      Grantor hereby irrevocably appoints the Agent as its attorney-in-fact and proxy,
      with full authority in the place and stead of such Grantor and in the name
      of
      such Grantor 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
      advisable to accomplish the purposes of this Agreement (subject to the rights
      of
      a Grantor under Section 5 hereof), including, without limitation, (i) to obtain
      and adjust insurance required to be paid to the Agent pursuant to Section 5(e)
      hereof, (ii) to ask, demand, collect, sue for, recover, compound, receive and
      give acquittance and receipts for moneys due and to become due under or in
      respect of any Collateral, (iii) to receive, endorse, and collect any drafts
      or
      other instruments, documents and chattel paper in connection with clause (i)
      or
      (ii) above, (iv) to file any claims or take any action or institute any
      proceedings which the Agent may deem necessary or desirable for the collection
      of any Collateral or otherwise to enforce the rights of the Agent and the
      Lenders with respect to any Collateral, and (v) to execute assignments, licenses
      and other documents to enforce the rights of the Agent and the Lenders with
      respect to any Collateral. This power is coupled with an interest and is
      irrevocable until all of the Obligations are paid in full after all Commitments
      have been terminated. 

     

    (c) For
      the
      purpose of enabling the Agent to exercise rights and remedies hereunder, at
      such
      time as the Agent shall be lawfully entitled to exercise such rights and
      remedies, and for no other purpose, each Grantor hereby grants to the Agent,
      to
      the extent assignable, an irrevocable, non-exclusive license (exercisable
      without payment of royalty or other compensation to any Grantor) to use, assign,
      license or sublicense any Intellectual Property now owned or hereafter acquired
      by any Grantor, wherever the same may be located, including in such license
      reasonable access to all media in which any of the licensed items may be
      recorded or stored and to all computer programs used for the compilation or
      printout thereof. Notwithstanding anything contained herein to the contrary,
      but
      subject to the provisions of the Financing Agreement that limit the right of
      a
      Grantor to dispose of its property and Section 5(h) hereof, so long as no Event
      of Default shall have occurred and be continuing, each Grantor may exploit,
      use,
      enjoy, protect, license, sublicense, assign, sell, dispose of or take other
      actions with respect to the Intellectual Property in the ordinary course of
      its
      business. In furtherance of the foregoing, unless an Event of Default shall
      have
      occurred and be continuing, the Agent shall from time to time, upon the request
      of a Grantor, execute and deliver any instruments, certificates or other
      documents, in the form so requested, which such Grantor shall have certified
      are
      appropriate (in such Grantor’s judgment) to allow it to take any action
      permitted above (including relinquishment of the license provided pursuant
      to
      this clause (c) as to any Intellectual Property). Further, upon the payment
      in
      full of all of the Obligations after the cancellation or termination of the
      Commitments, the Agent (subject to Section 11(e) hereof) shall release and
      reassign to the Grantors all of the Agent’s right, title and interest in and to
      the Intellectual Property, and the Licenses, all without recourse,
      representation or warranty whatsoever and at such Grantor’s sole expense. The
      exercise of rights and remedies hereunder by the Agent shall not terminate
      the
      rights of the holders of any licenses or sublicenses theretofore granted by
      any
      Grantor in accordance with the second sentence of this clause (c). Each Grantor
      hereby releases the Agent from any claims, causes of action and demands at
      any
      time arising out of or with respect to any actions taken or omitted to be taken
      by the Agent under the powers of attorney granted herein other than actions
      taken or omitted to be taken through the Agent’s gross negligence or willful
      misconduct, as determined by a final determination of a court of competent
      jurisdiction. 

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    (d) If
      any
      Grantor fails to perform any agreement contained herein, the Agent may itself
      perform, or cause performance of, such agreement or obligation, in the name
      of
      such Grantor or the Agent, and the expenses of the Agent incurred in connection
      therewith shall be jointly and severally payable by the Grantors pursuant to
      Section 8 hereof and shall be secured by the Collateral.

     

    (e) The
      powers conferred on the Agent hereunder are solely to protect its interest
      in
      the Collateral and shall not impose any duty upon it to exercise any such
      powers. Except for the safe custody of any Collateral in its possession and
      the
      accounting for moneys actually received by it hereunder, the Agent shall have
      no
      duty as to any Collateral or as to the taking of any necessary steps to preserve
      rights against prior parties or any other rights pertaining to any
      Collateral.

     

    (f) Anything
      herein to the contrary notwithstanding (i) each Grantor shall remain liable
      under the Licenses and otherwise with respect to any of the Collateral to the
      extent set forth therein to perform all of its obligations thereunder to the
      same extent as if this Agreement had not been executed, (ii) the exercise
      by the Agent of any of its rights hereunder shall not release any Grantor from
      any of its obligations under the Licenses or otherwise in respect of the
      Collateral, and (iii) the Agent shall not have any obligation or liability
      by reason of this Agreement under the Licenses or with respect to any of the
      other Collateral, nor shall the Agent be obligated to perform any of the
      obligations or duties of any Grantor thereunder or to take any action to collect
      or enforce any claim for payment assigned hereunder.

    

    (g) Notwithstanding
      any provision to the contrary in any of the Loan Documents, the Agent, by
      acceptance of this Agreement, hereby acknowledges that the Lien on the Loan
      Parties’ Inventory benefiting Enerserve Limited as identified on Schedule
      7.02(a) to the Financing Agreement shall be prior to the Lien in such Inventory
      benefiting the Agent and the Lenders created pursuant to this Agreement;
provided,
      however,
      that
      such priority shall apply only to (i) such specified items of Inventory
      identified on Schedule 7.02(a) and (ii) such other items of Inventory purchased
      by the Loan Parties subsequent to the Effective Date as to which Enerserve
      Limited shall have taken appropriate action under Section 9-324 of the Uniform
      Commercial Code. The Agent will, at the Loan Parties’ expense, execute and
      deliver such further instruments and documents and take such further action
      as
      the Loan Parties’ may reasonably request in order to effect the purposes of the
      foregoing sentence.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    SECTION
      7. Remedies
      Upon Default.
      If any
      Event of Default shall have occurred and be continuing:

     

    (a) The
      Agent
      may exercise in respect of the Collateral, in addition to any other rights
      and
      remedies provided for herein or otherwise available to it, all of the rights
      and
      remedies of a secured party upon default under the Code (whether or not the
      Code
      applies to the affected Collateral), and also may (i) take absolute control
      of the Collateral, including, without limitation, transfer into the Agent’s name
      or into the name of its nominee or nominees (to the extent the Agent has not
      theretofore done so) and thereafter receive, for the benefit of the Agent,
      all
      payments made thereon, give all consents, waivers and ratifications in respect
      thereof and otherwise act with respect thereto as though it were the outright
      owner thereof, (ii) require each Grantor to, and each Grantor hereby agrees
      that it will at its expense and upon request of the Agent forthwith, assemble
      all or part of the Collateral as directed by the Agent and make it available
      to
      the Agent at a place or places to be designated by the Agent that is reasonably
      convenient to both parties, and the Agent may enter into and occupy any premises
      owned or leased by any Grantor where the Collateral or any part thereof is
      located or assembled for a reasonable period in order to effectuate the Agent’s
      rights and remedies hereunder or under law, without obligation to any Grantor
      in
      respect of such occupation, and (iii) without notice except as specified
      below and without any obligation to prepare or process the Collateral for sale,
      (A) sell the Collateral or
      any
      part thereof in one or more parcels at public or private sale, at any of the
      Agent’s offices or elsewhere, for cash, on credit or for future delivery, and at
      such price or prices and upon such other terms as the Agent may deem
      commercially reasonable and/or (B) lease, license or dispose of the
      Collateral or any part thereof upon such terms as the Agent may deem
      commercially reasonable. Each Grantor agrees that, to the extent notice of
      sale
      or any other disposition of the Collateral shall be required by law, at least
      10
      days’ notice to a Grantor of the time and place of any public sale or the time
      after which any private sale or other disposition of the Collateral is to be
      made shall constitute reasonable notification. The Agent shall not be obligated
      to make any sale or other disposition of 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. Each Grantor hereby waives any claims against the Agent and the
      Lenders arising by reason of the fact that the price at which the Collateral
      may
      have been sold at a private sale was less than the price which might have been
      obtained at a public sale or was less than the aggregate amount of the
      Obligations, even if the Agent accepts the first offer received and does not
      offer the Collateral to more than one offeree, and waives all rights that such
      Grantor may have to require that all or any part of the Collateral be marshalled
      upon any sale (public or private) thereof. Each Grantor hereby acknowledges
      that
      (i) any such sale of the Collateral by the Agent shall be made without
      warranty, (ii) the Agent may specifically disclaim any warranties of title,
      possession, quiet enjoyment or the like, and (iii) such actions set forth
      in clauses (i) and (ii) above shall not adversely effect the commercial
      reasonableness of any such sale of the Collateral. In addition to the foregoing,
      (i) upon written notice to any Grantor from the Agent, each Grantor shall
      cease any use of the Intellectual Property or any trademark, patent or copyright
      similar thereto for any purpose described in such notice; (ii) the Agent may,
      at
      any time and from time to time, upon 10 days’ prior notice to any Grantor,
      license, whether general, special or otherwise, and whether on an exclusive
      or
      non-exclusive basis, any of the Intellectual Property, throughout the universe
      for such term or terms, on such conditions, and in such manner, as the Agent
      shall in its sole discretion determine; and (iii) the Agent may, at any time,
      pursuant to the authority granted in Section 6 hereof (such authority being
      effective upon the occurrence and during the continuance of an Event of
      Default), execute and deliver on behalf of a Grantor, one or more instruments
      of
      assignment of the Intellectual Property (or any application or registration
      thereof), in form suitable for filing, recording or registration in any
      country.

     

    (b) Any
      cash
      held by the Agent as Collateral and all Cash Proceeds received by the Agent
      in
      respect of any sale of or collection from, or other realization upon, all or
      any
      part of the Collateral may, in the discretion of the Agent, be held by the
      Agent
      as collateral for, and/or then or at any time thereafter applied (after payment
      of any amounts payable to the Agent pursuant to Section 8 hereof) in whole
      or in
      part by the Agent against, all or any part of the Obligations in such order
      as
      the Agent shall elect, consistent with the provisions of the Financing
      Agreement. Any surplus of such cash or Cash Proceeds held by the Agent and
      remaining after payment in full of all of the Obligations after all Commitments
      have been terminated shall be paid over to whomsoever shall be lawfully entitled
      to receive the same or as a court of competent jurisdiction shall
      direct.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    (c) In
      the
      event that the proceeds of any such sale, collection or realization are
      insufficient to pay all amounts to which the Agent and the Lenders are legally
      entitled, the Grantors shall be jointly and severally liable for the deficiency,
      together with interest thereon at the highest rate specified in any applicable
      Loan Document for interest on overdue principal thereof or such other rate
      as
      shall be fixed by applicable law, together with the costs of collection and
      the
      reasonable fees, costs, expenses and other client charges of any attorneys
      employed by the Agent to collect such deficiency.

     

    (d) Each
      Grantor hereby acknowledges that if the Agent complies with any applicable
      state
      or federal law requirements in connection with a disposition of the Collateral,
      such compliance will not adversely effect the commercial reasonableness of
      any
      sale or other disposition of the Collateral.

     

    (e) The
      Agent
      shall not be required to marshal any present or future collateral security
      (including, but not limited to, this Agreement and the Collateral) for, or
      other
      assurances of payment of, the Obligations or any of them or to resort to such
      collateral security or other assurances of payment in any particular order,
      and
      all of the Agent’s rights hereunder and in respect of such collateral security
      and other assurances of payment shall be cumulative and in addition to all
      other
      rights, however existing or arising. To the extent that any Grantor lawfully
      may, such Grantor hereby agrees that it will not invoke any law relating to
      the
      marshalling of collateral which might cause delay in or impede the enforcement
      of the Agent’s rights under this Agreement or under any other instrument
      creating or evidencing any of the Obligations or under which any of the
      Obligations is outstanding or by which any of the Obligations is secured or
      payment thereof is otherwise assured, and, to the extent that it lawfully may,
      each Grantor hereby irrevocably waives the benefits of all such
      laws.

     

    SECTION
      8. Indemnity
      and Expenses.

     

    (a) Each
      Grantor jointly and severally agrees to defend, protect, indemnify and hold
      the
      Agent and each Lender (and all their respective officers, directors, employees,
      attorneys, consultants, and agents) harmless from and against any and all
      claims, damages, losses, liabilities, obligations, penalties, fees, reasonable
      costs and expenses (including, without limitation, reasonable legal fees, costs,
      expenses, and disbursements of Agent’s counsel) to the extent that they arise
      out of or otherwise result from this Agreement (including, without limitation,
      enforcement of this Agreement), except claims, losses or liabilities to the
      extent resulting from the Agent’s gross negligence or willful misconduct, as
      determined by a final judgment of a court of competent
      jurisdiction.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    (b) Each
      Grantor will upon demand jointly and severally agree to pay to the Agent the
      amount of any and all reasonable costs and expenses, including the reasonable
      fees, costs, expenses and disbursements of counsel for the Agent and of any
      experts and agents (including, without limitation, any collateral trustee which
      may act as agent of the Agent), which the Agent may incur in connection with
      (i) the preparation, negotiation, execution, delivery, recordation,
      administration, amendment, waiver or other modification or termination of this
      Agreement, (ii) the custody, preservation, use or operation of, or the sale
      of, collection from, or other realization upon, any Collateral, (iii) the
      exercise or enforcement of any of the rights of the Agent hereunder, or
      (iv) the failure by any Grantor to perform or observe any of the provisions
      hereof.

     

    SECTION
      9. Notices,
      Etc.
      All
      notices and other communications provided for hereunder shall be in writing
      and
      shall be mailed (by certified mail, postage prepaid and return receipt
      requested), telecopied or delivered by hand, Federal Express or other reputable
      overnight courier, if to a Grantor, to it in care of the Borrower at its address
      specified in the Financing Agreement and if to the Agent, to it at its address
      specified in the Financing Agreement; or as to any such Person, at such other
      address as shall be designated by such Person in a written notice to such other
      Person complying as to delivery with the terms of this Section 9. All such
      notices and other communications shall be effective, (a) if mailed (certified
      mail, postage prepaid and return receipt requested), when received or 3 days
      after deposited in the mails, whichever occurs first, (b) if telecopied, when
      transmitted and confirmation received, or (c) if delivered by hand, Federal
      Express or other reputable overnight courier, upon delivery.

    

    SECTION
      10. Security
      Interest Absolute.
      All
      rights of the Agent and the Lenders, all Liens and all obligations of each
      of
      the Grantors hereunder shall be absolute and unconditional irrespective of
      (a)
      any lack of validity or enforceability of the Financing Agreement, any other
      Loan Document or any other agreement or instrument relating thereto,
      (b) any change in the time, manner or place of payment of, or in any other
      term in respect of, all or any of the Obligations, or any other amendment or
      waiver of or consent to any departure from the Financing Agreement or any other
      Loan Document, (c) any exchange or release of, or non-perfection of any Lien
      on
      any Collateral, or any release or amendment or waiver of or consent to departure
      from any guaranty, for all or any of the Obligations, or (d) any other
      circumstance which might otherwise constitute a defense available to, or a
      discharge of, any of the Grantors in respect of the Obligations. All
      authorizations and agencies contained herein with respect to any of the
      Collateral are irrevocable and powers coupled with an interest.

     

    SECTION
      11. Miscellaneous.

     

    (a) No
      amendment of any provision of this Agreement shall be effective unless it is
      in
      writing and signed by each Grantor and the Agent, and no waiver of any provision
      of this Agreement, and no consent to any departure by any Person therefrom,
      shall be effective unless it is in writing and signed by the waiving and
      consenting Person, and then such waiver or consent shall be effective only
      in
      the specific instance and for the specific purpose for which given.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    (b) No
      failure on the part of the Agent to exercise, and no delay in exercising, any
      right hereunder or under any other Loan Document shall operate as a waiver
      thereof; nor shall any single or partial exercise of any such right preclude
      any
      other or further exercise thereof or the exercise of any other right. The rights
      and remedies of the Agent or any Lender provided herein and in the other Loan
      Documents are cumulative and are in addition to, and not exclusive of, any
      rights or remedies provided by law. The rights of the Agent or any Lender under
      any Loan Document against any party thereto are not conditional or contingent
      on
      any attempt by such Person to exercise any of its rights under any other Loan
      Document against such party or against any other Person, including but not
      limited to, any Grantor.

     

    (c) Any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining portions
      hereof or thereof or affecting the validity or enforceability of such provision
      in any other jurisdiction.

     

    (d) This
      Agreement shall create a continuing security interest in the Collateral and
      shall (i) remain in full force and effect until the later of (A) the payment
      in
      full of the Obligations and (B) the termination of all of the Commitments,
      and
      (ii) be binding on each Grantor, all other Persons who become bound as debtor
      to
      this Agreement in accordance with Section 9-203(d) of the Code and, by its
      acceptance hereof, the Agent and its respective successors and assigns, and
      shall inure, together with all rights and remedies of the Agent and the Lenders
      hereunder, to the benefit of the Agent and the Lenders and their respective
      permitted successors, transferees and assigns. Without limiting the generality
      of clause (ii) of the immediately preceding sentence, without notice to the
      Grantors, the Agent and the Lenders may assign or otherwise transfer their
      rights and obligations under this Agreement and any other Loan Document, to
      any
      other Person and such other Person shall thereupon become vested with all of
      the
      benefits in respect thereof granted to the Agent and the Lenders herein or
      otherwise. Upon any such assignment or transfer, all references in this
      Agreement to the Agent or any such Lender shall mean the assignee of the Agent
      or such Lender. None of the rights or obligations of any Grantor hereunder
      may
      be assigned or otherwise transferred without the prior written consent of the
      Agent, and any such assignment or transfer shall be null and void.

     

    (e) Upon
      the
      satisfaction in full of the Obligations and the termination of all of the
      Commitments, (i) this Agreement and the security interests created hereby shall
      terminate and all rights to the Collateral shall revert to the Grantors and
      (ii)
      the Agent will, upon the Grantors’ request and at the Grantors’ expense without
      any representation, warranty or recourse whatsoever, (A) return to the Grantors
      such of the Collateral as shall not have been sold or otherwise disposed of
      or
      applied pursuant to the terms hereof and (B) execute and deliver to the Grantors
      such documents as the Grantors shall reasonably request to evidence such
      termination.

    

    a) THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS REQUIRED BY MANDATORY
      PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE VALIDITY AND PERFECTION
      OR
      THE PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE SECURITY
      INTEREST CREATED HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
      COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF
      NEW
      YORK.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    b) ANY
      LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY DOCUMENT
      RELATED THERETO MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE
      COUNTY OF NEW YORK OR THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT
      OF
      NEW YORK, AND APPELLATE COURTS THEREOF, AND, BY EXECUTION AND DELIVERY OF THIS
      AGREEMENT, EACH GRANTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
      PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
      COURTS. EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST
      EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY
      OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS,
      WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION, SUIT
      OR
      PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS AND CONSENTS TO THE GRANTING OF
      SUCH
      LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE
      COURT.

    

    c) EACH
      OF THE GRANTORS AND (BY ITS ACCEPTANCE OF THE BENEFITS OF THIS AGREEMENT) THE
      AGENT WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION
      BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
      OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, VERBAL OR
      WRITTEN STATEMENT OR OTHER ACTION OF THE PARTIES HERETO.

    

    (i) Each
      Grantor irrevocably consents to the service of process of any of the aforesaid
      courts in any such action, suit or proceeding by the mailing of copies thereof
      by registered or certified mail (or any substantially similar form of mail),
      postage prepaid, to such Grantor at its address provided herein, such service
      to
      become effective 10 days after such mailing.

     

    (j) Nothing
      contained herein shall affect the right of the Agent to serve process in any
      other manner permitted by law or commence legal proceedings or otherwise proceed
      against any Grantor or any property of any Grantor in any other
      jurisdiction.

     

    (k) Each
      Grantor irrevocably and unconditionally waives any right it may have to claim
      or
      recover in any legal action, suit or proceeding referred to in this Section
      any
      special, exemplary, punitive or consequential damages.

     

    (l) Section
      headings herein are included for convenience of reference only and shall not
      constitute a part of this Agreement for any other purpose.

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    (m) This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which shall be deemed to be an
      original, but all of which taken together constitute one in the same
      Agreement.

     

    (n) All
      of
      the obligations of the Grantors hereunder are joint and several. The Agent
      may,
      in its sole and absolute discretion, enforce the provisions hereof against
      any
      of the Grantors and shall not be required to proceed against all Grantors
      jointly or seek payment from the Grantors ratably. In addition, the Agent may,
      in its sole and absolute discretion, select the Collateral of any one or more
      of
      the Grantors for sale or application to the Obligations, without regard to
      the
      ownership of such Collateral, and shall not be required to make such selection
      ratably from the Collateral owned by all of the Grantors. The release or
      discharge of any Grantor by the Agent shall not release or discharge any other
      Grantor from the obligations of such Person hereunder. 

    

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

    

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, each Grantor has caused this Agreement to be executed and
      delivered by its officer thereunto duly authorized, as of the date first above
      written.

     

    
      
        	 	
                GRANTORS:

              
	 	 	 	 	 
	 	
                COMPOSITE
                  TECHNOLOGY CORPORATION

              
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:
                  

              	  

	 	
                Name:
                  

              	  

	 	
                Title:
                  

              	  

	 	 	 	 	 
	 	 	 	 	 
	 	
                CTC
                  CABLE CORPORATION

              
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:
                  

              	  

	 	
                Name:
                  

              	   

	 	
                Title:
                  

              	   

	 	 	 	 	 
	 	 	 	 	 
	 	
                TRANSMISSION
                  TECHNOLOGY CORPORATION

              
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:
                  

              	   

	 	
                Name:
                  

              	       

	 	
                Title:
                  

              	            
                
	 	 	 	 	 
	 	 	 	 	 
	 	
                CTC
                  TOWERS & POLES CORPORATION

              
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:
                  

              	            
                
	 	
                Name:
                  

              	   

	 	
                Title:
                  

              	              
                
	 	 	 	 	 
	 	 	 	 	 
	 	
                DEWIND,
                  INC.

              
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:
                  

              	        
                
	 	
                Name:
                  

              	          
                
	 	
                Title:
                  

              	       
                

  

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                EU
                  ENERGY INC.

              
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:
                  

              	           
                
	 	
                Name:
                  

              	          
                
	 	
                Title:
                  

              	       

	 	 	 	 	 
	 	 	 	 	 
	 	
                EU
                  ENERGY NORTH AMERICA, INC

              
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:
                  

              	      

	 	
                Name:
                  

              	     

	 	
                Title:
                  

              	      
                

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      I

    

    LEGAL
      NAMES; ORGANIZATIONAL IDENTIFICATION NUMBERS; STATES OR JURISDICTION OF
      ORGANIZATION

     

     

    
      
        
        

      

      
        Sched.
          I-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      II

    

    INTELLECTUAL
      PROPERTY AND LICENSES; TRADENAMES

     

     

    
      
        
        

      

      
        Sched.
          II-1

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      III

    

    

    LOCATIONS
      OF GRANTORS

    

    

    
      	LOCATION	
              Description
                of Location (State if Location

              (i) contains
                Equipment, Fixtures,

              Goods
                or Inventory,

              (ii)
                is chief place of business and

              chief
                executive office, or

              (iii)
                contains Records concerning Accounts

              and
                originals
                of
                Chattel Paper)

            

    

     

     

    
      
        
        

      

      
        Sched.
          III-1

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      IV

    

    DEPOSIT
      ACCOUNTS, SECURITIES ACCOUNTS AND COMMODITIES ACCOUNTS

    

      
        	
                Name
                  and Address

                of
                  Institution

                Maintaining
                  Account

              	
                Account
                  Number

              	
                Type
                  of Account

              

      

    

    
 

    
      
        
        

      

      
        Sched.
          IV-1

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      V

    

    UCC-1
      FINANCING STATEMENTS

     

     

    
      
        
        

      

      
        Sched.
          V-1

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      VI

    

    COMMERCIAL
      TORT CLAIMS

     

    

    
      
        
        

      

      
        Sched.
          VI-1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    ASSIGNMENT
      FOR SECURITY

    

    [TRADEMARKS]
      [PATENTS] [COPYRIGHTS]

    

    

    WHEREAS,
      ____________________ (the “Assignor”)
      [has
      adopted, used and is using, and holds all right, title and interest in and
      to,
      the trademarks and service marks listed on the annexed Schedule 1A, which
      trademarks and service marks are registered or applied for in the United States
      Patent and Trademark Office (the “Trademarks”)]
      [holds all right, title and interest in the letter patents, design patents
      and
      utility patents listed on the annexed Schedule 1A, which patents are issued
      or applied for in the United States Patent and Trademark Office (the
“Patents”)]
      [holds all right, title and interest in the copyrights listed on the annexed
      Schedule 1A, which copyrights are registered in the United States Copyright
      Office (the “Copyrights”)];

    

    WHEREAS,
      the Assignor, has entered into a Security Agreement, dated as of May __, 2008
      (the “Security
      Agreement”),
      in
      favor of ACF CTC, L.L.C., as agent for itself and certain lenders (the
“Assignee”);

    

    WHEREAS,
      pursuant to the Security Agreement, the Assignor has assigned to the Assignee
      and granted to the Assignee for the benefit of itself and the lenders a
      continuing security interest in all right, title and interest of the Assignor
      in, to and under the [Trademarks, together with, among other things, the
      good-will of the business symbolized by the Trademarks] [Patents] [Copyrights]
      and the applications and registrations thereof, and all proceeds thereof,
      including, without limitation, any and all causes of action which may exist
      by
      reason of infringement thereof and any and all damages arising from past,
      present and future violations thereof (the “Collateral”),
      to
      secure the payment, performance and observance of the Obligations (as defined
      in
      the Security Agreement);

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the Assignor does hereby pledge, convey, sell,
      assign, transfer and set over unto the Assignee and grants to the Assignee
      for
      the benefit of itself and the lenders a continuing security interest in the
      Collateral to secure the prompt payment, performance and for the benefit of
      itself and the lenders observance of the Obligations.

    

    The
      Assignor does hereby further acknowledge and affirm that the rights and remedies
      of the Assignee with respect to the Collateral are more fully set forth in
      the
      Security Agreement, the terms and provisions of which are hereby incorporated
      herein by reference as if fully set forth herein.

    

    IN
      WITNESS WHEREOF, the Assignor has caused this Assignment to be duly executed
      by
      its officer thereunto duly authorized as of _____________ __, 20__.

     

    
      
        	 	
                [GRANTOR]

              
	 	 	 
	 	 	 
	 	
                By:

              	                                                                  
                
	 	 	
                Name:

              
	 	 	
                Title:

              

      

       

      
        
          
          

        

        
          Exh.
            A-1

          
            

          

        

        
          
          

        

      

      
        	
                STATE
                  OF ____________

              	 
	
                 

              	
                ss.:

              
	
                COUNTY
                  OF __________ 

              	 

      

    

    

    

    On
      this
      ____ day of _______________, 20__, before me personally came ________________,
      to me known to be the person who executed the foregoing instrument, and who,
      being duly sworn by me, did depose and say that s/he is the ________________
      of
      _______________________________________, a ____________________, and that s/he
      executed the foregoing instrument in the firm name of
      _______________________________________, and that s/he had authority to sign
      the
      same, and s/he acknowledged to me that he executed the same as the act and
      deed
      of said firm for the uses and purposes therein mentioned.

    

    
      
        
        

      

      
        Exh.
          A-2

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      1A TO ASSIGNMENT FOR SECURITY

    

    

    

    [Trademarks
      and Trademark Applications]

    [Patent
      and Patent Applications]

    [Copyright
      and Copyright Applications] 

    Owned
      by
      ______________________________Unassociated Document

    PLEDGE
      AGREEMENT

    

    PLEDGE
      AND SECURITY AGREEMENT dated as of May __, 2008 (this “Agreement”),
      made
by
      each
      of the Pledgors referred to below,
      in
      favor of ACF CTC, L.L.C., a Delaware limited liability company, in its capacity
      as agent (in such capacity, together with any successor in such capacity, the
      “Agent”)
      on
      behalf of itself and the Lenders referred to below. 

    

    WITNESSETH:

    

    WHEREAS,
      Composite Technology Corporation, a Nevada corporation (the “Borrower”),
      each
      subsidiary of the Borrower listed as a “Guarantor”
on
      the
      signature pages thereto (together with the Borrower and each other Person that
      executes a joinder agreement and becomes a “Guarantor”
      thereunder or otherwise guaranties all or any part of the Obligations, each
      a
“Guarantor”
and
      collectively, the “Guarantors”),
      the
      financial institutions from time to time party thereto (each a “Lender”
and,
      collectively, the “Lenders”),
      and
      the Agent are parties to the Financing Agreement, dated as of the date hereof
      (such agreement, as amended, restated, supplemented or otherwise modified from
      time to time, being hereinafter referred to as the “Financing
      Agreement”),
      pursuant to which the Lenders have agreed to make certain loans (collectively,
      the “Loans”)
      to the
      Borrower;

    

    WHEREAS,
      it is a condition precedent to the making of any Loan by the Lenders pursuant
      to
      the Financing Agreement that
      each
      Pledgor shall have executed and delivered to the Agent a pledge and security
      agreement providing for the pledge to the Agent, for the benefit of the Agent
      and the Lenders, and the grant to the Agent, for the benefit of the Agent and
      the Lenders, of a security interest in and Lien on the outstanding shares of
      Capital Stock (as defined in the Financing Agreement) and indebtedness from
      time
      to time owned by such Pledgor of each Person now or hereafter existing and
      in
      which such Pledgor has any interest at any time;

    

    WHEREAS,
      the Pledgors are mutually dependent on each other in the conduct of their
      respective businesses as an integrated operation, with the credit needed from
      time to time by each Pledgor often being provided through financing obtained
      by
      the other Pledgors and the ability to obtain such financing being dependent
      on
      the successful operations of all of the Pledgors as a whole; and

    

    WHEREAS,
      each Pledgor has determined that the execution, delivery and performance of
      this
      Agreement directly benefit, and are in the best interest of, such
      Pledgor;

    

    NOW,
      THEREFORE, in
      consideration of the premises and the agreements herein and in order to induce
      the Lenders to make and maintain the Loans pursuant to the Financing Agreement,
      each Pledgor hereby jointly and severally agrees with the Agent, for the benefit
      of the Agent and the Lenders, as follows:

    

    SECTION
      1. Definitions.
      Reference is hereby made to the Financing Agreement for a statement of the
      terms
      thereof. All
      terms
      used in this Agreement which are defined in the Financing Agreement or in
      Article 8 or Article 9 of the Uniform Commercial Code in effect from time to
      time in the State of New York (the “Code”)
      and
      which are not otherwise defined herein shall have the same meanings herein
      as
      set forth therein; provided,
      that
      terms used herein which are defined in the Code as in effect in the State of
      New
      York on the date hereof shall continue to have the same meaning notwithstanding
      any replacement or amendment of such statute except as the Agent may otherwise
      determine.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      2. Pledge
      and Grant of Security Interest.
      As
      collateral security for all of the Obligations (as defined in Section 3 hereof),
      each Pledgor hereby pledges and assigns to the Agent, for the benefit of the
      Agent and the Lenders, a continuing security interest in and Lien on such
      Pledgor’s right, title and interest in and to the following (the “Pledged
      Collateral”):

    

    (a) the
      indebtedness described in Schedule I hereto and all indebtedness from time
      to
      time required to be pledged to the Agent pursuant to the terms of the Financing
      Agreement (the “Pledged
      Debt”),
      the
      promissory notes and other instruments evidencing the Pledged Debt and all
      interest, cash, instruments, investment property 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 Debt;

    

    (b) the
      shares of stock, partnership interests, membership interests and other equity
      interests described in Schedule II hereto (the “Pledged
      Shares”),
      whether or not evidenced or represented by any stock certificate, certificated
      security or other instrument, issued by the Persons described in such Schedule
      II (the “Existing
      Issuers”),
      the
      certificates representing the Pledged Shares, all options and other rights,
      contractual or otherwise, in respect thereof and all dividends, distributions,
      cash, instruments, investment property and other property (including but not
      limited to, any stock dividend and any distribution in connection with a stock
      split) from time to time received, receivable or otherwise distributed in
      respect of or in exchange for any or all of the Pledged Shares;

    

    (c) the
      shares of stock, partnership interests, membership interests or other equity
      interests at any time and from time to time acquired by such Pledgor of any
      and
      all Persons now or hereafter existing (such Persons, together with the Existing
      Issuers, being hereinafter referred to collectively as the “Pledged
      Issuers”
and
      individually as a “Pledged
      Issuer”),
      the
      certificates representing such shares of stock, partnership interests,
      membership interests or other equity interests, all options and other rights,
      contractual or otherwise, in respect thereof and all dividends, distributions,
      cash, instruments, investment property (including but not limited to, any stock
      dividend and any distribution in connection with a stock split) and other
      property from time to time received, receivable or otherwise distributed in
      respect of or in exchange for any or all of the foregoing;

    

    (d) all
      additional shares of stock, partnership interests, membership interests or
      other
      equity interests from time to time acquired by such Pledgor, of any Pledged
      Issuer, the certificates representing such additional shares, all options and
      other rights, contractual or otherwise, in respect thereof and all dividends,
      distributions, cash, instruments, investment property and other property
      (including but not limited to, any stock dividend and any distribution in
      connection with a stock split) from time to time received, receivable or
      otherwise distributed in respect of or in exchange for any or all of the
      foregoing;

    

    (e) all
      investment property, financial assets, securities, Capital Stock, other equity
      interests, stock options and commodity contracts of such Pledgor, all notes,
      debentures, bonds, promissory notes or other evidences of indebtedness of such
      Pledgor, and all other assets now or hereafter received or receivable with
      respect to the foregoing;

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

     

    (f) all
      security entitlements of such Pledgor in any and all of the foregoing;
      and

    

    (g) all
      proceeds (including proceeds of proceeds) of any and all of the foregoing;
      

    

    in
      each
      case, whether now owned or hereafter acquired by such Pledgor and howsoever
      its
      interest therein may arise or appear (whether by ownership, security interest,
      Lien, claim or otherwise).

    

    Notwithstanding
      the foregoing, if any Pledged Issuer is organized or formed under the laws
      of a
      jurisdiction other than the District of Columbia or any State or territory
      of
      the United States of America (a “Foreign
      Jurisdiction”),
      and
      if a pledge of 100% of the voting Capital Stock thereof would cause adverse
      U.S.
      tax consequences, such Pledgor shall pledge not more than 66-2/3% of the voting
      Capital Stock of such Pledged Issuer (but shall pledge 100% of the non-voting
      Capital Stock of such Pledged Issuer). The Pledgors and Agent agree that the
      pledge of shares of Capital Stock of any Pledged Issuer who is organized or
      formed under the laws of a Foreign Jurisdiction in favor of the Agent hereunder
      may be supplemented by one or more separate pledge agreements, deeds of pledge,
      share charges, or other similar agreements or instruments, executed and
      delivered by the relevant Pledgors in favor of the Agent, which pledge
      agreements will provide for the pledge of such shares of Capital Stock in
      accordance with the laws of such Foreign Jurisdiction. With respect to such
      shares of Capital Stock, the Agent may, at any time and from time to time,
      in
      its sole discretion, take actions in such Foreign Jurisdictions that will result
      in the perfection of the Lien created in such shares of Capital Stock and shall
      provide written notice of actions so taken to the Pledgor within a reasonable
      time thereafter.

    

    SECTION
      3. Security
      for Obligations.
      The
      security interest created hereby in the Pledged Collateral constitutes
      continuing collateral security for all of the following obligations, whether
      now
      existing or hereafter incurred (the “Obligations”):

    

    (a) the
      prompt payment by the Pledgors, as and when due and payable (by scheduled
      maturity, required prepayment, acceleration, demand or otherwise), of all
      amounts from time to time owing by the Pledgors to the Agent or the Lenders
      in
      respect of the Financing Agreement and all other Loan Documents, including,
      without limitation, (i) the Obligations (as defined in the Financing Agreement),
      (ii) principal of and interest on the Loans (including, without limitation,
      all
      interest that accrues after the commencement of any Insolvency Proceeding of
      any
      Pledgor whether or not the payment of such interest is unenforceable or is
      not
      allowable due to the existence of such Insolvency Proceeding), (iii) in the
      case
      of a Guarantor, all amounts from time to time owing by such Pledgor in respect
      of its guaranty made pursuant to Article XI of the Financing Agreement or under
      and other Guaranty to which it is a party, including all obligations guaranteed
      by such Pledgor, and (iv) all fees, commissions, charges, expense
      reimbursements, indemnifications and all other amounts due or to become due
      under the Financing Agreement and any other Loan Document; and 

     

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

     

    (b) the
      due
      performance and observance by each of the Pledgors of all of their other
      obligations from time to time existing in respect of the Financing Agreement
      and
      all other Loan Documents.

    

    SECTION
      4. Delivery
      of the Pledged Collateral.

    

    (a)
      (i)  All
      promissory notes currently evidencing the Pledged Debt and all certificates
      currently representing the Pledged Shares shall be delivered to the Agent on
      or
      prior to the execution and delivery of this Agreement. All other promissory
      notes, certificates and instruments constituting Pledged Collateral from time
      to
      time required to be pledged to the Agent pursuant to the terms hereof (the
      “Additional
      Collateral”)
      shall
      be delivered to the Agent promptly upon receipt thereof by or on behalf of any
      of the Pledgors. All such promissory notes, certificates and instruments shall
      be held by or on behalf of the Agent pursuant hereto and shall be delivered
      in
      suitable form for transfer by delivery, or shall be accompanied by duly executed
      instruments of transfer or assignment or undated stock powers executed in blank,
      all in form and substance reasonably satisfactory to the Agent. If any Pledged
      Collateral consists of uncertificated securities, unless the immediately
      following sentence is applicable thereto, such Pledgor shall cause the Agent
      (or
      its custodian, nominee or other designee) to become the registered holder
      thereof, or cause each issuer of such securities to agree that it will comply
      with instructions originated by the Agent with respect to such securities
      without further consent by such Pledgor. If any Pledged Collateral consists
      of
      security entitlements, such Pledgor shall transfer such security entitlements
      to
      the Agent (or its custodian, nominee or other designee) or cause the applicable
      securities intermediary to agree that it will comply with entitlement orders
      by
      the Agent without further consent by such Pledgor. 

    

    (ii) Within
      5
      days of the receipt by a Pledgor of any Additional Collateral, a Pledge
      Amendment, duly executed by such Pledgor, in substantially the form of Annex
      I
      hereto (a “Pledge
      Amendment”),
      shall
      be delivered to the Agent in respect of the Additional Collateral to be pledged
      pursuant to this Agreement and the Financing Agreement. The Pledge Amendment
      shall from and after delivery thereof constitute part of Schedules I and II
      hereto. Each Pledgor hereby authorizes the Agent to attach each Pledge Amendment
      to this Agreement and agrees that all promissory notes, certificates or
      instruments listed on any Pledge Amendment delivered to the Agent shall for
      all
      purposes hereunder constitute Pledged Collateral and such Pledgor shall be
      deemed upon delivery thereof to have made the representations and warranties
      set
      forth in Section 5 with respect to such Additional Collateral.

    

    (b) If
      any
      Pledgor shall receive, by virtue of such Pledgor’s being or having been an owner
      of any Pledged Collateral, any (i) stock certificate (including, without
      limitation, any certificate representing a stock dividend or distribution in
      connection with any increase or reduction of capital, reclassification, merger,
      consolidation, sale of assets, combination of shares, stock split, spin-off
      or
      split-off), promissory note or other instrument, (ii) option or right,
      whether as an addition to, substitution for, or in exchange for, any Pledged
      Collateral, or otherwise, (iii) dividends payable in cash (except such dividends
      permitted to be retained by such Pledgor pursuant to Section 7 hereof) or in
      securities or other property or (iv) dividends or other distributions,
      cash, instruments, investment property and other property in connection with
      a
      partial or total liquidation or dissolution or in connection with a reduction
      of
      capital, capital surplus or paid-in surplus, such Pledgor shall receive such
      stock certificate, promissory note, instrument, option, right, payment or
      distribution in trust for the benefit of the Agent, shall segregate it from
      such
      Pledgor’s other property and shall deliver it forthwith to the Agent, in the
      exact form received, with any necessary endorsement and/or appropriate stock
      powers duly executed in blank, to be held by the Agent as Pledged Collateral
      and
      as further collateral security for the Obligations.

     

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

     

    SECTION
      5. Representations
      and Warranties.
      Each
      Pledgor jointly and severally represents and warrants as follows:

    

    (a) Each
      Pledgor (i) is a corporation, limited liability company or limited partnership
      duly organized, validly existing and in good standing under the laws of the
      state or jurisdiction of its organization, and (ii) has all requisite power
      and
      authority to execute, deliver and perform this Agreement.

    

    (b) The
      execution, delivery and performance by each Pledgor of this Agreement (i) have
      been duly authorized by all necessary action, (ii) do not and will not
      contravene its charter or bylaws, its limited liability company or operating
      agreement or its certificate of partnership or partnership agreement, as
      applicable, or any applicable law or any contractual restriction binding on
      or
      affecting it or any of its properties, and (iii) do not and will not result
      in
      or require the creation of any Lien upon or with respect to any of its
      properties other than pursuant to this Agreement.

    

    (c) The
      Existing Issuers set forth in Schedule II hereto are the Pledgors’ only
      Subsidiaries existing on the date hereof. The Pledged Shares have been duly
      authorized and validly issued and are fully paid and nonassessable and the
      holders thereof are not entitled to any preemptive, first refusal or other
      similar rights. Except as noted in Schedule II hereto, the Pledged Shares
      constitute 100% of the issued shares of Capital Stock, partnership interests,
      membership interests or other equity interests, as applicable, of the Existing
      Issuers as of the date hereof. All other shares of stock constituting Pledged
      Collateral will be duly authorized and validly issued, fully paid and
      nonassessable.

    

    (d) The
      promissory notes currently evidencing the Pledged Debt have been, and all other
      promissory notes from time to time evidencing Pledged Debt, when executed and
      delivered, will have been, duly authorized, executed and delivered by the
      respective makers thereof, and all such promissory notes are or will be, as
      the
      case may be, legal, valid and binding obligations of such makers, enforceable
      against such makers in accordance with their respective terms, except as may
      be
      limited by applicable bankruptcy, insolvency, reorganization, moratorium or
      other similar laws affecting creditors rights generally and by general equitable
      principles.

    

    (e) Each
      Pledgor is and will be at all times the legal and beneficial owner of its
      Pledged Collateral free and clear of all Liens, except for the Lien created
      by
      this Agreement and Permitted Liens.

    

    (f) The
      exercise by the Agent of any of its rights and remedies in accordance with
      the
      terms of this Agreement will not contravene any law or any contractual
      restriction binding on or affecting any Pledgor or any of the properties of
      any
      Pledgor and will not result in or require the creation of any Lien upon or
      with
      respect to any of the properties of such Pledgor other than pursuant to this
      Agreement or the other Loan Documents.

     

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

     

    (g) No
      authorization or approval or other action by, and no notice to or filing with,
      any Governmental Authority is required to be obtained or made by any Pledgor
      for
      (i) the due execution, delivery and performance by any Pledgor of this
      Agreement, (ii) the grant by any Pledgor, or the perfection, of the Lien created
      hereby in the Pledged Collateral or (iii) the exercise by the Agent of any
      of
      its rights and remedies hereunder, except as may be required in connection
      with
      any sale of any Pledged Collateral by laws affecting the offering and sale
      of
      securities generally.

    

    (h) This
      Agreement creates a valid Lien in favor of the Agent in the Pledged Collateral
      as security for the Obligations. The Agent’s having possession of the promissory
      notes evidencing the Pledged Debt, the certificates representing the Pledged
      Shares and all other certificates, instruments and cash constituting Pledged
      Collateral from time to time results in the perfection of such Lien. Such Lien
      is, or in the case of Pledged Collateral in which any of the Pledgors obtains
      rights after the date hereof, will be, a perfected, first priority Lien, subject
      only to Permitted Liens. All action necessary or desirable to perfect and
      protect such Lien has been duly taken, except for the Agent’s having possession
      of certificates, instruments and cash constituting Pledged Collateral after
      the
      date hereof.

    

    SECTION
      6. Covenants
      as to the Pledged Collateral.
      So long
      as any Obligation shall remain outstanding, each Pledgor will, unless the Agent
      shall otherwise consent in writing:

    

    (a) keep
      adequate records concerning the Pledged Collateral and permit the Agent or
      any
      agents, designees or representatives thereof at any time or from time to time
      to
      examine and make copies of and abstracts from such records pursuant to the
      terms
      of the Financing Agreement;

    

    (b) at
      the
      Pledgors’ joint and several expense, promptly deliver to the Agent a copy of
      each notice or other communication received by it in respect of the Pledged
      Collateral;

    

    (c) at
      the
      Pledgors’ joint and several expense, defend the Agent’s right, title and
      security interest in and to the Pledged Collateral against the claims of any
      Person;

    

    (d) at
      the
      Pledgors’ joint and several expense, at any time and from time to time, promptly
      execute and deliver all further instruments and documents and take all further
      action that may be necessary or desirable or that the Agent may reasonably
      request in order to (i) perfect and protect, or maintain the perfection of,
      the
      security interest and Lien created hereby, (ii) enable the Agent to exercise
      and
      enforce its rights and remedies hereunder in respect of the Pledged Collateral
      or (iii) otherwise effect the purposes of this Agreement, including, without
      limitation, delivering to the Agent, after the occurrence and during the
      continuation of an Event of Default, irrevocable proxies in respect of the
      Pledged Collateral;

    

    (e) not
      sell,
      assign (by operation of law or otherwise), exchange or otherwise dispose of
      any
      Pledged Collateral or any interest therein except as expressly permitted by
      Section 7.02(c) of the Financing Agreement;

     

    
      
        
        

      

      
        -
          6 -

        
          

        

      

      
        
        

      

    

     

    (f) not
      create or suffer to exist any Lien upon or with respect to any Pledged
      Collateral, except for the Lien created hereby and any Permitted
      Liens;

    

    (g) not
      make
      or consent to any amendment or other modification or waiver with respect to
      any
      Pledged Collateral or enter into any agreement or permit to exist any
      restriction with respect to any Pledged Collateral other than pursuant to the
      Loan Documents;

    

    (h) not
      permit the issuance of (i) any additional shares of any class of Capital Stock
      of any Pledged Issuer, (ii) any securities convertible voluntarily by the holder
      thereof or automatically upon the occurrence or non-occurrence of any event
      or
      condition into, or exchangeable for, any such shares of Capital Stock or (iii)
      any warrants, options, contracts or other commitments entitling any Person
      to
      purchase or otherwise acquire any such shares of Capital Stock; and

    

    (i) not
      take
      or fail to take any action which would in any manner impair the validly or
      enforceability of the Agent’s security interest in and Lien on any Pledged
      Collateral. 

    

    SECTION
      7. Voting
      Rights, Dividends, Etc. in Respect of the Pledged Collateral.

    

    (a) So
      long
      as no Event of Default shall have occurred and be continuing:

    

    (i) each
      Pledgor may exercise any and all voting and other consensual rights pertaining
      to any Pledged Collateral for any purpose not inconsistent with the terms of
      this Agreement, the Financing Agreement or the other Loan Documents;
provided,
      however,
      that
      (A) none of the Pledgors will exercise or refrain from exercising any such
      right, as the case may be, if the Agent gives it notice that, in the Agent’s
      judgment, such action (or inaction) could reasonably be expected to have a
      Material Adverse Effect and (B) each Pledgor will give the Agent at least 5
      Business Days’ notice of the manner in which it intends to exercise, or the
      reasons for refraining from exercising, any such right which could reasonably
      be
      expected to have a Material Adverse Effect;

    

    (ii) each
      of
      the Pledgors may receive and retain any and all dividends, interest payments
      or
      other distributions paid in respect of the Pledged Collateral to the extent
      permitted by the Financing Agreement; provided,
      however,
      that
      any and all (A) dividends and interest paid or payable other than in cash in
      respect of, and instruments and other property received, receivable or otherwise
      distributed in respect of or in exchange for, any Pledged Collateral, (B)
      dividends and other distributions paid or payable in cash in respect of any
      Pledged Collateral in connection with a partial or total liquidation or
      dissolution or in connection with a reduction of capital, capital surplus or
      paid-in surplus, and (C) cash paid, payable or otherwise distributed in
      redemption of, or in exchange for, any Pledged Collateral, together with any
      dividend, interest payment or other distribution which at the time of such
      dividend, interest payment or other distribution was not permitted by the
      Financing Agreement, shall be, and shall forthwith be delivered to the Agent
      to
      hold as, Pledged Collateral and shall, if received by any of the Pledgors,
      be
      received in trust for the benefit of the Agent, shall be segregated from the
      other property or funds of the Pledgors, and shall be forthwith delivered to
      the
      Agent in the exact form received with any necessary endorsement and/or
      appropriate stock powers duly executed in blank, to be held by the Agent as
      Pledged Collateral and as further collateral security for the Obligations;
      and

     

    
      
        
        

      

      
        -
          7 -

        
          

        

      

      
        
        

      

    

     

    (iii) the
      Agent
      will execute and deliver (or cause to be executed and delivered) to a Pledgor
      all such proxies and other instruments as such Pledgor may reasonably request
      for the purpose of enabling such Pledgor to exercise the voting and other rights
      which it is entitled to exercise pursuant to Section 7(a)(i) hereof and to
      receive the dividends, interest and/or other distributions which it is
      authorized to receive and retain pursuant to Section 7(a)(ii)
      hereof.

    

    (b) Upon
      the
      occurrence and during the continuance of an Event of Default:

    

    (i) all
      rights of each Pledgor to exercise the voting and other consensual rights which
      it would otherwise be entitled to exercise pursuant to Section 7(a)(i) hereof,
      and to receive the dividends, distributions, interest and other payments which
      it would otherwise be authorized to receive and retain pursuant to Section
      7(a)(ii) hereof, shall cease, and all such rights shall thereupon become vested
      in the Agent, which shall thereupon have the sole right to exercise such voting
      and other consensual rights and to receive and hold as Pledged Collateral such
      dividends and interest payments;

    

    (ii) the
      Agent
      is authorized to notify each debtor with respect to the Pledged Debt to make
      payment directly to the Agent (or its designee) and may collect any and all
      moneys due or to become due to any Pledgor in respect of the Pledged Debt,
      and
      each of the Pledgors hereby authorizes each such debtor to make such payment
      directly to the Agent (or its designee) without any duty of
      inquiry;

    

    (iii) without
      limiting the generality of the foregoing, the Agent may at its option exercise
      any and all rights of conversion, exchange, subscription or any other rights,
      privileges or options pertaining to any of the Pledged Collateral as if it
      were
      the absolute owner thereof, including, without limitation, the right to
      exchange, in its discretion, any and all of the Pledged Collateral upon the
      merger, consolidation, reorganization, recapitalization or other adjustment
      of
      any Pledged Issuer, or upon the exercise by any Pledged Issuer of any right,
      privilege or option pertaining to any Pledged Collateral, and, in connection
      therewith, to deposit and deliver any and all of the Pledged Collateral with
      any
      committee, depository, transfer agent, registrar or other designated agent
      upon
      such terms and conditions as it may determine; and

    

    (iv) all
      dividends, distributions, interest and other payments which are received by
      any
      of the Pledgors contrary to the provisions of Section 7(b)(i) hereof shall
      be
      received in trust for the benefit of the Agent, shall be segregated from other
      funds of the Pledgors, and shall be forthwith paid over to the Agent as Pledged
      Collateral in the exact form received with any necessary endorsement and/or
      appropriate stock powers duly executed in blank, to be held by the Agent as
      Pledged Collateral and as further collateral security for the
      Obligations.

     

    
      
        
        

      

      
        -
          8 -

        
          

        

      

      
        
        

      

    

     

    SECTION
      8. Additional
      Provisions Concerning the Pledged Collateral.

    

    (a) To
      the
      maximum extent permitted by applicable law, and for the purpose of taking any
      action that the Agent may deem necessary or admissible to accomplish the terms
      of this Agreement, each Pledgor (i) authorizes the Agent to execute any
      such agreements, instruments or other documents in such Pledgor’s name and to
      file such agreements, instruments or other documents in such Pledgor’s name in
      any appropriate filing office, (ii) authorizes the Agent to file any
      financing statements required hereunder or under any other Loan Document, and
      any continuation statements or amendments with respect thereto, in any
      appropriate filing office without the signature of such Pledgor and
      (iii) ratifies the filing of any financing statement, and any continuation
      statement or amendment with respect thereto, filed without the signature of
      such
      Pledgor prior to the date hereof. A photocopy or other reproduction of this
      Agreement or any financing statement covering the Pledge Collateral or any
      part
      thereof shall be sufficient as a financing statement where permitted by
      law.

    

    (b) Each
      Pledgor hereby irrevocably appoints the Agent as such Pledgor’s attorney-in-fact
      and proxy, with full authority in the place and stead of such Pledgor and in
      the
      name of such Pledgor 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 advisable to accomplish the purposes of this Agreement (subject
      to
      the rights of such Pledgor under Section 7(a) hereof), including, without
      limitation, to receive, endorse and collect all instruments made payable to
      such
      Pledgor representing any dividend, distribution, interest or other payment
      in
      respect of any Pledged Collateral and to give full discharge for the same.
      This
      power is coupled with an interest and is irrevocable until all of the
      Obligations are paid in full after the termination of all of the
      Commitments.

    

    (c) If
      any
      Pledgor fails to perform any agreement or obligation contained herein, the
      Agent
      itself may perform, or cause performance of, such agreement or obligation,
      and
      the expenses of the Agent incurred in connection therewith shall be jointly
      and
      severally payable by the Pledgors pursuant to Section 10 hereof and shall be
      secured by the Pledged Collateral.

    

    (d) The
      powers conferred on the Agent hereunder are solely to protect its interest
      in
      the Pledged Collateral and shall not impose any duty upon it to exercise any
      such powers. Except for the safe custody of any Pledged Collateral in its
      possession and the accounting for monies actually received by it hereunder,
      the
      Agent shall have no duty as to any Pledged Collateral or as to the taking of
      any
      necessary steps to preserve rights against prior parties or any other rights
      pertaining to any Pledged Collateral and shall be relieved of all responsibility
      for the Pledged Collateral upon surrendering it or tendering surrender of it
      to
      any Pledgor. The Agent shall be deemed to have exercised reasonable care in
      the
      custody and preservation of the Pledged Collateral in its possession if the
      Pledged Collateral is accorded treatment substantially equal to that which
      the
      Agent accords its own property, it being understood that the Agent shall not
      have responsibility for (i) ascertaining or taking action with respect to calls,
      conversions, exchanges, maturities, tenders or other matters relating to any
      Pledged Collateral, whether or not the Agent has or is deemed to have knowledge
      of such matters or (ii) taking any necessary steps to preserve rights against
      any parties with respect to any Pledged Collateral.

     

    
      
        
        

      

      
        -
          9 -

        
          

        

      

      
        
        

      

    

     

    (e) The
      Agent
      may in its discretion at any time after the occurrence and during the
      continuation of an Event of Default (i) without notice to any Pledgor, transfer
      or register in the name of the Agent or any of its nominees any or all of the
      Pledged Collateral, subject only to the revocable rights of such Pledgor under
      Section 7(a) hereof and (ii) exchange certificates or instruments constituting
      Pledged Collateral for certificates or instruments of smaller or larger
      denominations. 

    

    SECTION
      9. Remedies
      Upon Default.
      If any
      Event of Default shall have occurred and be continuing:

    

    (a) The
      Agent
      may exercise in respect of the Pledged Collateral, in addition to any other
      rights and remedies provided for herein or otherwise available to it, all of
      the
      rights and remedies of a secured party on default under the Code then in effect
      in the State of New York; and without limiting the generality of the foregoing
      and without notice except as specified below, sell the Pledged Collateral or
      any
      part thereof in one or more parcels at public or private sale, at any exchange
      or broker’s board or elsewhere, at such price or prices and on such other terms
      as the Agent may deem commercially reasonable. Each Pledgor agrees that, to
      the
      extent notice of sale shall be required by law, at least 10 days’ notice to such
      Pledgor of the time and place of any public sale of Pledged Collateral owned
      by
      such Pledgor 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 whether or not notice of sale has
      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.

    

    (b) In
      the
      event that the Agent
      determines
      to exercise its right to sell all or any part of the Pledged Collateral pursuant
      to Section 9(a) hereof, each Pledgor will, at such Pledgor’s expense and upon
      request by the Agent: (i) execute and deliver, and cause each issuer of such
      Pledged Collateral and the directors and officers thereof to execute and
      deliver, all such instruments and documents, and do or cause to be done all
      such
      other acts and things, as may be necessary or, in the opinion of the Agent,
      advisable to register such Pledged Collateral under the provisions of the
      Securities Act of 1933, as amended (the “Securities
      Act”),
      and
      to cause the registration statement relating thereto to become effective and
      to
      remain effective for such period as prospectuses are required by law to be
      furnished, and to make all amendments and supplements thereto and to the related
      prospectus which, in the opinion of the Agent, are necessary or advisable,
      all
      in conformity with the requirements of the Securities Act and the rules and
      regulations of the Securities and Exchange Commission applicable thereto, (ii)
      cause each issuer of such Pledged Collateral to qualify such Pledged Collateral
      under the state securities or “Blue Sky” laws of each jurisdiction, and to
      obtain all necessary governmental approvals for the sale of the Pledged
      Collateral, as requested by the Agent, (iii) cause each Pledged Issuer to make
      available to its securityholders, as soon as practicable, an earnings statement
      which will satisfy the provisions of Section 11(a) of the Securities Act, and
      (iv) do or cause to be done all such other acts and things as may be necessary
      to make such sale of such Pledged Collateral valid and binding and in compliance
      with applicable law. Each Pledgor acknowledges the impossibility of ascertaining
      the amount of damages which would be suffered by the Agent by reason of the
      failure by any Pledgor to perform any of the covenants contained in this Section
      9(b) and, consequently, agrees that, if any Pledgor fails to perform any of
      such
      covenants, it shall pay, as liquidated damages and not as a penalty, an amount
      equal to 25% of the value of the Pledged Collateral on the date the Agent
      demands compliance with this Section 9(b); provided,
      however,
      that
      the payment of such amount shall not release any Pledgor from any of its
      obligations under any of the other Loan Documents.

     

    
      
        
        

      

      
        -
          10 -

        
          

        

      

      
        
        

      

    

     

    (c) Notwithstanding
      the provisions of Section 9(b) hereof, each Pledgor recognizes
      that the
      Agent may deem it impracticable to effect a public sale of all or any part
      of
      the Pledged Shares or any other securities constituting Pledged Collateral
      and
      that the Agent may, therefore, determine to make one or more private sales
      of
      any such securities to a restricted group of purchasers who will be obligated
      to
      agree, among other things, to acquire such securities for their own account,
      for
      investment and not with a view to the distribution or resale thereof. Each
      Pledgor acknowledges that any such private sale may be at prices and on terms
      less favorable to the seller than the prices and other terms which might have
      been obtained at a public sale and, notwithstanding the foregoing, agrees that
      such private sales shall be deemed to have been made in a commercially
      reasonable manner and that the Agent shall have no obligation to delay the
      sale
      of any such securities for the period of time necessary to permit the issuer
      of
      such securities to register such securities for public sale under the Securities
      Act. Each Pledgor further acknowledges and agrees that any offer to sell such
      securities which has been (i) publicly advertised on a bona fide basis in a
      newspaper or other publication of general circulation in the financial community
      of New York, New York (to the extent that such an offer may be so advertised
      without prior registration under the Securities Act) or (ii) made privately
      in
      the manner described above to not less than fifteen bona fide
      offerees
      shall be deemed to involve a “public disposition” for the purposes of Section
      9-610(c) of the Code (or any successor or similar, applicable statutory
      provision) as then in effect in the State of New York, notwithstanding that
      such
      sale may not constitute a “public offering” under the Securities Act, and that
      the Agent may, in such event, bid for the purchase of such
      securities.

    

    (d) Any
      cash
      held by the Agent as Pledged Collateral and all cash proceeds received by the
      Agent 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,
      be
      held by the Agent as collateral for, and/or then or at any time thereafter
      applied (after payment of any amounts payable to the Agent pursuant to Section
      10 hereof) in whole or in part by the Agent against, all or any part of the
      Obligations in such order as the Agent shall elect consistent with the
      provisions of the Financing Agreement. Any surplus of such cash or cash proceeds
      held by the Agent and remaining after payment in full of all of the Obligations
      after all Commitments have been terminated shall be paid over to the Pledgors
      or
      to such Person as may be lawfully entitled to receive such surplus.

    

    (e) In
      the
      event that the proceeds of any such sale, collection or realization are
      insufficient to pay all amounts to which the Agent is legally entitled, the
      Pledgors shall be liable, jointly and severally, for the deficiency, together
      with interest thereon at the highest rate specified in the Financing Agreement
      for interest on overdue principal thereof or such other rate as shall be fixed
      by applicable law, together with the costs of collection and the reasonable
      fees, costs and expenses of any attorneys employed by the Agent to collect
      such
      deficiency.

     

    
      
        
        

      

      
        -
          11 -

        
          

        

      

      
        
        

      

    

     

    SECTION
      10. Indemnity
      and Expenses.

    

    (a) Each
      Pledgor jointly and severally agrees to defend, protect, indemnify and hold
      harmless the Agent (and all of its respective officers, directors, employees,
      attorneys, consultants and agents) from and against any and all claims, damages,
      losses, liabilities, obligations, penalties, reasonable costs and expenses
      (including, without limitation, reasonable legal fees, costs, expenses and
      disbursements of counsel) to the extent that they arise out of or otherwise
      result from this Agreement (including, without limitation, enforcement of this
      Agreement), except, as to any such indemnified Person, claims, losses or
      liabilities to the extent resulting from such Person’s gross negligence or
      willful misconduct as determined by a final judgment of a court of competent
      jurisdiction.

    

    (b) Each
      Pledgor jointly and severally agrees to pay to the Agent upon demand the amount
      of any and all reasonable costs and expenses, including the reasonable fees
      and
      disbursements of the Agent’s counsel and of any experts and agents, which the
      Agent may incur in connection with (i) the preparation, negotiation, execution,
      delivery, recordation, administration, amendment, waiver or other modification
      or termination of this Agreement, (ii) the custody, preservation, use or
      operation of, or the sale of, collection from, or other realization upon, any
      Pledged Collateral, (iii) the exercise or enforcement of any of the rights
      of
      the Agent hereunder, or (iv) the failure by any Pledgor to perform or observe
      any of the provisions hereof.

    

    SECTION
      11. Notices,
      Etc.
      All
      notices and other communications provided for hereunder shall be in writing
      and
      shall be mailed (by certified mail, postage prepaid and return receipt
      requested), telecopied or delivered by hand, Federal Express or other reputable
      overnight courier, if to a Pledgor, to it in care of the Borrower at its address
      specified in the Financing Agreement and if to the Agent, to it at its address
      specified in the Financing Agreement; or as to any such Person, at such other
      address as shall be designated by such Person in a written notice to such other
      Person complying as to delivery with the terms of this Section 11. All such
      notices and other communications shall be effective, (a) if mailed (certified
      mail, postage prepaid and return receipt requested), when received or 3 days
      after deposited in the mails, whichever occurs first, (b) if telecopied, when
      transmitted and confirmation received, or (c) if delivered by hand, Federal
      Express or other reputable overnight courier, upon delivery.

    

    SECTION
      12. Security
      Interest Absolute.
      All
      rights of the Agent and the Lenders, all Liens and all obligations of each
      of
      the Pledgors hereunder shall be absolute and unconditional irrespective of:
      (i)
      any lack of validity or enforceability of the Financing Agreement or any other
      agreement or instrument relating thereto, (ii) any change in the time, manner
      or
      place of payment of, or in any other term in respect of, all or any of the
      Obligations, or any other amendment or waiver of or consent to any departure
      from the Financing Agreement or any other Loan Document, (iii) any exchange
      or
      release of, or non-perfection of any Lien on any Collateral, or any release
      or
      amendment or waiver of, or consent to departure from, any guaranty for all
      or
      any of the Obligations, or (iv) any other circumstance which might otherwise
      constitute a defense available to, or a discharge of, any of the Pledgors in
      respect of the Obligations. All authorizations and agencies contained herein
      with respect to any of the Pledged Collateral are irrevocable and powers coupled
      with an interest.

     

    
      
        
        

      

      
        -
          12 -

        
          

        

      

      
        
        

      

    

     

    SECTION
      13. Miscellaneous.

    

    (a) No
      amendment of any provision of this Agreement shall be effective unless it is
      in
      writing and signed by each Pledgor and the Agent, and no waiver of any provision
      of this Agreement, and no consent to any departure by any Person therefrom,
      shall be effective unless it is in writing and signed by the waiving or
      consenting Person, and then such waiver or consent shall be effective only
      in
      the specific instance and for the specific purpose for which given.

    

    (b) No
      failure on the part of the Agent or the Lenders to exercise, and no delay in
      exercising, any right hereunder or under any Loan Document shall operate as
      a
      waiver thereof; nor shall any single or partial exercise of any such right
      preclude any other or further exercise thereof or the exercise of any other
      right. The rights and remedies of the Agent and the Lenders provided herein
      and
      in the Loan Documents are cumulative and are in addition to, and not exclusive
      of, any other rights or remedies provided by law. The rights of the Agent and
      the Lenders under the applicable Loan Document against any party thereto are
      not
      conditional or contingent on any attempt by the Agent or the Lenders to exercise
      any of their rights under any other document against such party or against
      any
      other Person.

    

    (c) Any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining portions
      hereof or thereof or affecting the validity or enforceability of such provision
      in any other jurisdiction. 

    

    (d) This
      Agreement shall create a continuing security interest in and Lien on the Pledged
      Collateral and shall (i) remain in full force and effect until the payment
      in
      full or release of the Obligations after the termination of all of the
      Commitments and (ii) be binding on each Pledgor and, by its acceptance hereof,
      the Agent, and its respective successors and assigns, and shall inure, together
      with all rights and remedies of the Agent and the Lenders hereunder, to the
      benefit of the Agent and the Lenders and their respective successors,
      transferees and assigns. Without limiting the generality of clause (ii) of
      the
      immediately preceding sentence, the Agent and the Lenders may assign or
      otherwise transfer their respective rights and obligations under this Agreement
      and any other Loan Document to any other Person, and such other Person shall
      thereupon become vested with all of the benefits in respect thereof granted
      to
      the Agent and the Lenders herein or otherwise. Upon any such assignment or
      transfer, all references in this Agreement to the Agent or any such Lender
      shall
      mean the assignee of the Agent or such Lender. None of the rights or obligations
      of any of the Pledgors hereunder may be assigned or otherwise transferred
      without the prior written consent of the Agent, and any such assignment or
      transfer shall be null and void.

    

    (e) Upon
      the
      satisfaction in full of the Obligations after the termination of all of the
      Commitments (i) this Agreement and the security interest and Lien created hereby
      shall terminate and all rights to the Pledged Collateral shall revert to the
      Pledgors and (ii) the Agent will, upon the Pledgors’ request and at the
      Pledgors’ expense, (A) return to the Pledgors such of the Pledged Collateral as
      shall not have been sold or otherwise disposed of or applied pursuant to the
      terms hereof and (B) execute and deliver to the Pledgors, without recourse,
      representation or warranty, such documents as the Pledgors shall reasonably
      request to evidence such termination.

     

    
      
        
        

      

      
        -
          13 -

        
          

        

      

      
        
        

      

    

     

    (f) This
      Agreement shall be governed by and construed in accordance with the law of
      the
      State of New York, except as required by mandatory provisions of law and except
      to the extent that the validity and perfection or the perfection and the effect
      of perfection or non-perfection of the security interest and Lien created
      hereby, or remedies hereunder, in respect of any particular Pledged Collateral
      are governed by the law of a jurisdiction other than the State of New
      York.

    

    (g) This
      Agreement may be executed in any number of counterparts and by the different
      parties hereto on separate counterparts, each of which shall be deemed an
      original, but all such counterparts shall constitute one and the same
      agreement.

    

    (h) All
      of
      the Obligations of the Pledgors hereunder are joint and several. The Agent
      may,
      in its
      sole and absolute discretion, enforce the provisions hereof against any of
      the
      Pledgors and shall not be required to proceed against all Pledgors jointly
      or
      seek payment from the Pledgors ratably. In addition, the Agent may, in its
      sole
      and absolute discretion, select the Pledged Collateral of any one or more of
      the
      Pledgors for sale or application to the Obligations, without regard to the
      ownership of such Pledged Collateral, and shall not be required to make such
      selection ratably from the Pledged Collateral owned by all of the Pledgors.
      The
      release or discharge of any Pledgor by the Agent shall not release or discharge
      any other Pledgor from the obligations of such Person hereunder. 

    

    
      
        
        

      

      
        -
          14 -

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Pledgors have caused this Agreement to be executed and
      delivered by their officer thereunto duly authorized, as of the date first
      above
      written.

    

      
        	 	
                PLEDGORS:

              
	 	 	 
	 	
                COMPOSITE
                  TECHNOLOGY CORPORATION

              
	 	 	 
	 	 	 
	 	
                By:

              	
                       
                  

              
	 	 	
                Name:

              
	 	 	
                Title:

              
	 	 	 
	 	
                CTC
                  CABLE CORPORATION

              
	 	 	 
	 	 	 
	 	
                By:

              	     

	 	 	
                Name:

              
	 	 	
                Title:

              
	 	 	 
	 	 	 
	 	
                TRANSMISSION
                  TECHNOLOGY CORPORATION

              
	 	 	 
	 	 	 
	 	
                By:

              	           
                
	 	 	
                Name:

              
	 	 	
                Title:

              
	 	 	 
	 	 	 
	 	
                CTC
                  TOWERS & POLES CORPORATION 

              
	 	 
	 	 	 
	 	
                By:

              	      

	 	 	
                Name:

              
	 	 	
                Title:

              
	 	 	 
	 	 	 
	 	
                DEWIND,
                  INC. 

              
	 	 
	 	 	 
	 	
                By:

              	      

	 	 	
                Name:

              
	 	 	
                Title:

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                EU
                  ENERGY INC.

              
	 	 	 
	 	
                By:

              	        

	 	 	
                Name:

              
	 	 	
                Title:

              
	 	 	 
	 	 
	 	
                EU
                  ENERGY NORTH AMERICA, INC.

              
	 	 	 
	 	 	 
	 	
                By:

              	 

	 	 	
                Name:

              
	 	 	
                Title:

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      I

    

    

    TO

    

    PLEDGE
      AND SECURITY AGREEMENT

    

    

    Pledged
      Debt

    

      
        	
                Pledgor

              	
                Name
                  of Payee

              	
                Description

              	
                Principal
                  Amount

                Outstanding
                  as of

              

      

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      II

    

    TO

    

    PLEDGE
      AND SECURITY AGREEMENT

     

    

    Pledged
      Shares

     

    
      	
               

              Pledgor

            	
              Name
                of Issuer

            	
              Number
                of Shares

            	
              Class

            	
              Certificate
                Number

            
	
              Composite
                Technology Corporation

            	
              CTC
                Cable Corporation

            	
              100

            	
              Common

            	
              1

            
	
              Composite
                Technology Corporation

            	
              Transmission
                Technology Corporation

            	
              100

            	
              Common

            	
              1

            
	
              Composite
                Technology Corporation

            	
              CTC
                Towers & Poles Corporation

            	
              100

            	
              Common

            	
              1

            
	
              Composite
                Technology Corporation

            	
              DeWind,
                Inc.

            	
              100

            	
              Common

            	
              1

            
	
              Composite
                Technology Corporation

            	
              EU
                Energy, Inc.

            	
              100

            	
              Common

            	
              1

            
	
              Composite
                Technology Corporation

            	
              EU
                Energy North America, Inc.

            	
              100

            	
              Common

            	
              1

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      I

    

    TO

    

    PLEDGE
      AND SECURITY AGREEMENT

    

    

    PLEDGE
      AMENDMENT

    

    This
      Pledge Amendment, dated _______________, is delivered pursuant to Section 4
      of
      the Pledge and Security Agreement referred to below. The undersigned hereby
      agrees that this Pledge Amendment may be attached to the Pledge and Security
      Agreement, dated as of May __, 2008, as it may heretofore have been or hereafter
      may be amended or otherwise modified or supplemented from time to time and
      that
      the promissory notes or shares listed on this Pledge Amendment shall be hereby
      pledged and assigned to the Agent and become part of the Pledged Collateral
      referred to in such Pledge and Security Agreement and shall secure all of the
      Obligations referred to in such Pledge and Security Agreement.

     

    
      	
              Pledged
                Debt

            
	
              Pledgor

            	
               

              Name
                of Payee

            	
               

              Description

            	
              Principal
                Amount

              Outstanding
                as of

            
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    

    
      	
              Pledged
                Shares

            
	
              Pledgor

            	
               

              Name
                of Issuer

            	
              Number

              of
                Shares

            	
               

              Class

            	
              Certificate

              Number(s)

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    

      
        	
                ;

              	
                [PLEDGOR]

              	 
	 	 	 	 
	 	 	 	 
	 	
                By:

              	
                            
                  

              	 
	 	 	
                Name:

              	 
	 	 	
                Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]