Document:

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                                                                    Exhibit 10.2

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (this "Agreement") is made
and entered into as of March 31, 2006, by and among Glowpoint, Inc., a Delaware
corporation (the "Company"), and the purchasers listed on Schedule I hereto (the
"Purchasers").

                  This Agreement is being entered into pursuant to the Note and
Warrant Purchase Agreement dated as of the date hereof among the Company and the
Purchasers (the "Purchase Agreement").

                  The Company and the Purchasers hereby agree as follows:

         1.       Definitions.

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

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

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

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

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

                  "Closing Date" means the date of the closing of the purchase
and sale of the Notes and the Warrants pursuant to the Purchase Agreement.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the Company's Common Stock, $0.0001 par
value per share.

                  "Effectiveness Date" means with respect to the Registration
Statement the earlier of (A) the seventy-fifth (75th) day following the Filing
Date or (B) the date which is within three (3) Business Days of the date on
which the Commission informs the Company that (i) the Commission will not review
the Registration Statement or (ii) the Company may request the acceleration of
the effectiveness of the Registration Statement and the Company makes such

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request; provided that, if the Effectiveness Date falls on a Saturday, Sunday or
any other day which shall be a legal holiday or a day on which the Commission is
authorized or required by law or other government actions to close, the
Effectiveness Date shall be the following Business Day.

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

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

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

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

                  "Filing Date" means a date within fifteen (15) days following
the date that the Company's Common Stock is eligible to be quoted on the OTC
Bulletin Board; provided that, if the Filing Date falls on a Saturday, Sunday or
any other day which shall be a legal holiday or a day on which the Commission is
authorized or required by law or other government actions to close, the Filing
Date shall be the following Business Day.

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

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

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

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

                  "Notes" means the senior secured convertible promissory notes
issued to the Purchasers pursuant to the Purchase Agreement.

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

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

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

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                  "Registrable Securities" means (A) the shares of Common Stock
issuable upon conversion of the Notes and (B) the shares of Common Stock
issuable upon exercise of the Warrants.

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

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

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

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

                  "Rule 424" means Rule 424 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

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

                  "Special Counsel" means Kramer Levin Naftalis & Frankel LLP,
for which the Holders will be reimbursed by the Company pursuant to Section 4.

                  "Warrants" means the warrants to purchase shares of Common
Stock issued to the Purchasers pursuant to the Purchase Agreement.

         2.       Resale Registration.

                  On or prior to the Filing Date the Company shall prepare and
file with the Commission a "resale" Registration Statement providing for the
resale of all Registrable Securities for an offering to be made on a continuous
basis pursuant to Rule 415. The Registration Statement shall be on Form S-1
(except if the Company is not then eligible to register for resale the
Registrable Securities on Form S-1, in which case such registration shall be on
another appropriate form in accordance with the Securities Act and the rules
promulgated thereunder). The Company shall (i) not permit any securities other
than the Registrable Securities and the securities to be listed on Schedule II
hereto to be included in the Registration Statement and (ii) use its best
efforts to cause the Registration Statement to be declared effective under the
Securities Act as promptly as possible after the filing thereof, but in any
event prior to

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the Effectiveness Date, and to keep such Registration Statement continuously
effective under the Securities Act until such date as is the earlier of (x) the
date when all Registrable Securities covered by such Registration Statement have
been sold or (y) the date on which the Registrable Securities may be sold
without any restriction pursuant to Rule 144(k) as determined by the counsel to
the Company pursuant to a written opinion letter, addressed to the Company's
transfer agent to such effect (the "Effectiveness Period"). If at any time and
for any reason, an additional Registration Statement is required to be filed
because at such time the actual number of shares of Common Stock into which the
Notes are convertible and the Warrants are exercisable plus the number of shares
of Common Stock exceeds the number of shares of Registrable Securities remaining
under the Registration Statement, the Company shall have fifteen (15) Business
Days to file such additional Registration Statement, and the Company shall use
its best efforts to cause such additional Registration Statement to be declared
effective by the Commission as soon as possible, but in no event later than
sixty (60) days after filing.

         3.       Registration Procedures.

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

                  (a)      Prepare and file with the Commission on or prior to
the Filing Date, a Registration Statement on Form S-1 (or if the Company is not
then eligible to register for resale the Registrable Securities on Form S-1 such
registration shall be on another appropriate form in accordance with the
Securities Act and the rules promulgated thereunder) in accordance with the
method or methods of distribution thereof as specified by the Holders (except if
otherwise directed by the Holders), and use its reasonable best efforts to cause
the Registration Statement to become effective and remain effective as provided
herein; provided, however, that not less than five (5) Business Days prior to
the filing of the Registration Statement or any related Prospectus or any
amendment or supplement thereto (including any document that would be
incorporated therein by reference), the Company shall (i) furnish to the Holders
and the Special Counsel, copies of all such documents proposed to be filed,
which documents (other than those incorporated by reference) will be subject to
the review of such Holders and such Special Counsel, and (ii) cause its officers
and directors, counsel and independent certified public accountants to respond
to such inquiries as shall be necessary, in the reasonable opinion of Special
Counsel, to conduct a reasonable investigation within the meaning of the
Securities Act. Unless otherwise advised by outside counsel to the Company, the
Company shall not file the Registration Statement or any such Prospectus or any
amendments or supplements thereto to which the Holders of a majority of the
Registrable Securities or the Special Counsel shall reasonably object in writing
within three (3) Business Days of their receipt thereof.

                  (b)      (i) Prepare and file with the Commission such
amendments, including post-effective amendments, to the Registration Statement
as may be necessary to keep the Registration Statement continuously effective as
to the applicable Registrable Securities for the Effectiveness Period and
prepare and file with the Commission such additional Registration Statements as
necessary in order to register for resale under the Securities Act all of the
Registrable Securities; (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement, and as so supplemented or
amended to be filed pursuant to Rule 424 (or any similar provisions then in
force) promulgated under the Securities Act; (iii) respond

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as promptly as possible, but in no event later than ten (10) Business Days, to
any comments received from the Commission with respect to the Registration
Statement or any amendment thereto and as promptly as possible provide the
Holders true and complete copies of all correspondence from and to the
Commission relating to the Registration Statement; and (iv) comply in all
material respects with the provisions of the Securities Act and the Exchange Act
with respect to the disposition of all Registrable Securities covered by the
Registration Statement during the applicable period in accordance with the
intended methods of disposition by the Holders thereof set forth in the
Registration Statement as so amended or in such Prospectus as so supplemented.

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

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

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

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

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

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

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

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

                  (k)      Upon the Company becoming eligible to quote its
Common Stock on the OTC Bulletin Board, use its reasonable best efforts to cause
all Registrable Securities relating to the Registration Statement to be listed
on the OTC Bulletin Board or any other securities

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exchange, quotation system or market, if any, on which similar securities issued
by the Company are then listed or traded as and when required pursuant to the
Purchase Agreement.

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

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

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

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

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

                  (n) If (i) there is material non-public information regarding
the Company which the Company's Board of Directors (the "Board") reasonably
determines not to be in the Company's best interest to disclose and which the
Company is not otherwise required to disclose, (ii) there is a significant
business opportunity (including, but not limited to, the acquisition or

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disposition of assets (other than in the ordinary course of business) or any
merger, consolidation, tender offer or other similar transaction) available to
the Company which the Board reasonably determines not to be in the Company's
best interest to disclose, or (iii) the Company is required to file a
post-effective amendment to the Registration Statement to incorporate the
Company's quarterly and annual reports and audited financial statements on Forms
10-Q and 10-K, then the Company may (x) postpone or suspend filing of a
registration statement for a period not to exceed thirty (30) consecutive days
or (y) postpone or suspend effectiveness of a registration statement for a
period not to exceed twenty (20) consecutive days; provided that the Company may
not postpone or suspend effectiveness of a registration statement under this
Section 3(n) for more than forty-five (45) days in the aggregate during any
three hundred sixty (360) day period; provided, however, that no such
postponement or suspension shall be permitted for consecutive twenty (20) day
periods arising out of the same set of facts, circumstances or transactions.

         4.       Registration Expenses.

                  All fees and expenses incident to the performance of or
compliance with this Agreement by the Company, except as and to the extent
specified in this Section 4, shall be borne by the Company whether or not the
Registration Statement is filed or becomes effective and whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with the OTC
Bulletin Board and each other securities exchange or market on which Registrable
Securities are required hereunder to be listed, if any (B) with respect to
filing fees required to be paid to the National Association of Securities
Dealers, Inc. and the NASD Regulation, Inc. and (C) in compliance with state
securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel for the Holders in connection with Blue Sky
qualifications of the Registrable Securities and determination of the
eligibility of the Registrable Securities for investment under the laws of such
jurisdictions as the Holders of a majority of Registrable Securities may
designate)), (ii) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities and of printing prospectuses if
the printing of prospectuses is requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company and Special Counsel for the Holders, in the case of the Special Counsel,
up to a maximum amount of $5,000, (v) Securities Act liability insurance, if the
Company so desires such insurance, and (vi) fees and expenses of all other
Persons retained by the Company in connection with the consummation of the
transactions contemplated by this Agreement, including, without limitation, the
Company's independent public accountants (including the expenses of any comfort
letters or costs associated with the delivery by independent public accountants
of a comfort letter or comfort letters). In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit, the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

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         5.       Indemnification.

                  (a)      Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, managers, partners, members, shareholders,
agents, brokers (including brokers who offer and sell Registrable Securities as
principal as a result of a pledge or any failure to perform under a margin call
of Common Stock), investment advisors and employees of each of them, each Person
who controls any such Holder (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) and the officers, directors, agents and
employees of each such controlling Person, to the fullest extent permitted by
applicable law, from and against any and all losses, claims, damages,
liabilities, costs (including, without limitation, costs of preparation and
attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising out
of or relating to any violation of securities laws or untrue or alleged untrue
statement of a material fact contained in the Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or form
of prospectus or supplement thereto, in the light of the circumstances under
which they were made) not misleading, except to the extent, but only to the
extent, that (i) such untrue statements or omissions are based solely upon
information regarding such Holder or such other Indemnified Party furnished in
writing to the Company by such Holder expressly for use therein and (ii) that
the foregoing indemnity agreement is subject to the condition that, insofar as
it relates to any untrue statement, allegedly untrue statement, omission or
alleged omission made in any preliminary prospectus but eliminated or remedied
in the final prospectus (filed pursuant to Rule 424 of the Securities Act), such
indemnity agreement shall not inure to the benefit of any Holder, underwriter,
broker or other Person acting on behalf of holders of the Registrable
Securities, from whom the Person asserting any loss, claim, damage, liability or
expense purchased the Registrable Securities which are the subject thereof, if a
copy of such final prospectus had been made available to such Person and such
Holder, underwriter, broker or other Person acting on behalf of holders of the
Registrable Securities and such final prospectus was not delivered to such
Person with or prior to the written confirmation of the sale of such Registrable
Securities to such Person. The Company shall notify the Holders promptly of the
institution, threat or assertion of any Proceeding of which the Company is aware
in connection with the transactions contemplated by this Agreement.

                  (b)      Indemnification by Holders. Each Holder shall,
severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, agents and employees, each Person who controls the Company
(within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act), and the directors, officers, agents and employees of such
controlling Persons, to the fullest extent permitted by applicable law, from and
against all Losses (as determined by a court of competent jurisdiction in a
final judgment not subject to appeal or review), as incurred, arising solely out
of or based solely upon any untrue statement of a material fact contained in the
Registration Statement, any Prospectus, or any form of prospectus, or arising
solely out of or based solely upon any omission of a material fact required to
be stated therein or necessary to make the statements therein (in the case of
any Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, to the extent, but
only to the extent, that such untrue statement or omission is contained in any
information so furnished in writing by such Holder or other Indemnifying Party
to the Company specifically for inclusion in the Registration Statement or such
Prospectus.

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Notwithstanding anything to the contrary contained herein, each Holder shall be
liable under this Section 5(b) for only that amount as does not exceed the net
proceeds to such Holder as a result of the sale of Registrable Securities
pursuant to such Registration Statement.

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

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

                  All fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten (10) Business Days of written notice thereof to the
Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder).

                  (d)      Contribution. If a claim for indemnification under
Section 5(a) or 5(b) is unavailable to an Indemnified Party because of a failure
or refusal of a governmental authority to

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enforce such indemnification in accordance with its terms (by reason of public
policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative benefits received by the Indemnifying Party
on the one hand and the Indemnified Party on the other from the offering of the
Notes and Warrants. If, but only if, the allocation provided by the foregoing
sentence is not permitted by applicable law, the allocation of contribution
shall be made in such proportion as is appropriate to reflect not only the
relative benefits referred to in the foregoing sentence but also the relative
fault, as applicable, of the Indemnifying Party and Indemnified Party in
connection with the actions, statements or omissions that resulted in such
Losses as well as any other relevant equitable considerations. The relative
fault of such Indemnifying Party and Indemnified Party shall be determined by
reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged
omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include, subject
to the limitations set forth in Section 5(c), any reasonable attorneys' or other
reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms. In no event shall any selling Holder be
required to contribute an amount under this Section 5(d) in excess of the net
proceeds received by such Holder upon sale of such Holder's Registrable
Securities pursuant to the Registration Statement giving rise to such
contribution obligation.

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

                  The indemnity and contribution agreements contained in this
Section are in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties. Notwithstanding anything to the contrary contained
herein, the Holders shall be liable under this Section 5(d) for only that amount
as does not exceed the net proceeds to such Holder as a result of the sale of
Registrable Securities pursuant to such Registration Statement.

         6.       Rule 144.

                  As long as any Holder owns any Registrable Securities, Notes
or Warrants, the Company covenants to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to Section
13(a) or 15(d) of the Exchange Act and to promptly furnish the Holders with true
and complete copies of all such filings. The Holders acknowledge that the
Company is in the process of attempting to restate its financial statements for
the years ended December 31, 2003 and 2002 (and the quarterly periods contained
therein) and that the Company cannot

                                      -11-
<PAGE>

determine at this time whether it will be able to complete such restatements in
a reasonable amount of time or at all. The Holders further acknowledge that the
Company has not yet filed reports on Form 10-Q for the quarters ended June 30,
2005 and September 30, 2005 and that the Company expects to file such reports on
Form 10-Q within the next two months. The Holders also acknowledge that they
have been advised by the Company that it will not be able to file its annual
report on Form 10-K for the year ended December 31, 2005 on a timely basis (or
within the applicable grace period). As long as any Holder owns any Registrable
Securities, Notes or Warrants, if the Company is not required to file reports
pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and
furnish to the Holders and make publicly available in accordance with Rule
144(c) promulgated under the Securities Act annual and quarterly financial
statements, together with a discussion and analysis of such financial statements
in form and substance substantially similar to those that would otherwise be
required to be included in reports required by Section 13(a) or 15(d) of the
Exchange Act, as well as any other information required thereby, in the time
period that such filings would have been required to have been made under the
Exchange Act. The Company further covenants that it will take such further
action as any Holder may reasonably request all to the extent required from time
to time to enable such Person to sell the Registrable Securities without
registration under the Securities Act within the limitation of the exemptions
provided by Rule 144 promulgated under the Securities Act, including providing
any legal opinions relating to such sale pursuant to Rule 144.

         7.       Miscellaneous.

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

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

                                      -12-
<PAGE>

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

                  (d)      Failure to File Registration Statement and Other
Events. The Company and the Purchasers agree that the Holders will suffer
damages if the Registration Statement is not filed on or prior to the Filing
Date and not declared effective by the Commission on or prior to the
Effectiveness Date and maintained in the manner contemplated herein during the
Effectiveness Period or if certain other events occur. The Company and the
Holders further agree that it would not be feasible to ascertain the extent of
such damages with precision. Accordingly, if (A) the Registration Statement is
not filed on or prior to the Filing Date, or (B) the Registration Statement is
not declared effective by the Commission on or prior to the Effectiveness Date,
or (C) the Company fails to file with the Commission a request for acceleration
in accordance with Rule 461 promulgated under the Securities Act within three
(3) Business Days of the date that the Company is notified (orally or in
writing, whichever is earlier) by the Commission that a Registration Statement
will not be "reviewed," or not subject to further review, or (D) the
Registration Statement is filed with and declared effective by the Commission
but thereafter ceases to be effective as to all Registrable Securities at any
time prior to the expiration of the Effectiveness Period, without being
succeeded immediately by a subsequent Registration Statement filed with and
declared effective by the Commission, or (E) the Company has breached Section
3(n), or (F) trading in the Common Stock shall be suspended or if, after initial
quotation of the Common Stock on the OTC Bulletin Board, the Common Stock is no
longer quoted on the OTC Bulletin Board (or listed on another principal exchange
on which the Common Stock is traded) for any reason for more than three (3)
Business Days in the aggregate (any such failure or breach being referred to as
an "Event," and for purposes of clauses (A) and (B) the date on which such Event
occurs, or for purposes of clause (C) the date on which such three (3) Business
Day period is exceeded, or for purposes of clause (D) after more than fifteen
(15) Business Days, or for purposes of clause (F) the date on which such three
(3) Business Day period is exceeded, being referred to as "Event Date"), the
Company shall pay an amount as liquidated damages to each Holder in cash equal
to one percent (1.0%) for each calendar month (prorated for shorter periods) of
the Holder's initial investment in the Notes, from the Event Date until the
applicable Event is cured. Notwithstanding anything to the contrary in this
Section 7(d), if (i) any of the Events described in clauses (A), (B), (C) or (D)
shall have occurred, (ii) on or prior to the applicable Event Date, the Company
shall have exercised its rights under Section 3(n) hereof and (iii) the
postponement or suspension permitted pursuant to such Section 3(n) shall remain
effective as of such applicable Event Date, then the applicable Event Date shall
be deemed instead to occur on the second Business Day following the termination
of such postponement or suspension. Liquidated damages payable by the Company
pursuant to this Section 7(d) shall be payable on the first (1st) business day
of each thirty (30) day period following the Event Date.

                  (e)      Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or

                                      -13-
<PAGE>

consents to departures from the provisions hereof may not be given, unless the
same shall be in writing and signed by the Company and the Holders of
three-fourths (3/4) of the Registrable Securities outstanding.

                  (f)      Notices. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery, telecopy or facsimile at the
address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day
following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

                    If to the Company:      Glowpoint, Inc.
                                            225 Long Avenue
                                            Hillside, New Jersey 07205
                                            Attention: Chief Executive Officer
                                            Tel. No.: (973) 282-2000
                                            Fax No.:  (973) 391-9776

                    with copies (which      Winston & Strawn LLP
                    shall not constitute    200 Park Avenue
                    notice) to:             New York, New York 10166-4193
                                            Attention: Michael J.W. Rennock
                                            Tel. No.: (212) 294-2658
                                            Fax No.: (212) 294-4700

                    If                      to any Purchaser: At the
                                            address of such Purchaser set
                                            forth on Exhibit A to this
                                            Agreement, with copies to
                                            Purchaser's counsel as set
                                            forth on Exhibit A or as
                                            specified in writing by such:

                    with copies (which      Kramer Levin Naftalis & Frankel LLP
                    shall not constitute    1177 Avenue of the Americas
                    notice) to:             New York, New York 10036
                                            Attention: Christopher S. Auguste
                                            Tel No.: (212) 715-9100
                                            Fax No.: (212) 715-8000

                  Any party hereto may from time to time change its address for
notices by giving at least ten (10) days written notice of such changed address
to the other party hereto.

                  (g)      Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
permitted assigns and shall inure to the benefit of each Holder and its
successors and assigns. The Company may not assign this

                                      -14-
<PAGE>

Agreement or any of its rights or obligations hereunder without the prior
written consent of each Holder. Each Purchaser may assign its rights hereunder
in the manner and to the Persons as permitted under the Purchase Agreement.

                  (h)      Assignment of Registration Rights. The rights of each
Holder hereunder, including the right to have the Company register for resale
Registrable Securities in accordance with the terms of this Agreement, shall be
automatically assignable by each Holder to any Person of all or a portion of the
Registrable Securities if: (i) the Holder agrees in writing with the transferee
or assignee to assign such rights, and a copy of such agreement is furnished to
the Company within a reasonable time after such assignment, (ii) the Company is,
within a reasonable time after such transfer or assignment, furnished with
written notice of (a) the name and address of such transferee or assignee, and
(b) the securities with respect to which such registration rights are being
transferred or assigned, (iii) following such transfer or assignment the further
disposition of such securities by the transferee or assignees is restricted
under the Securities Act and applicable state securities laws, (iv) at or before
the time the Company receives the written notice contemplated by clause (ii) of
this Section, the transferee or assignee agrees in writing with the Company to
be bound by all of the provisions of this Agreement, and (v) such transfer shall
have been made in accordance with the applicable requirements of the Purchase
Agreement. The rights to assignment shall apply to the Holders (and to
subsequent) successors and assigns.

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

                  (j)      Governing Law; Jurisdiction. This Agreement shall be
governed by and construed in accordance with the internal laws of the State of
New York, without giving effect to any of the conflicts of law principles which
would result in the application of the substantive law of another jurisdiction.
This Agreement shall not be interpreted or construed with any presumption
against the party causing this Agreement to be drafted. The Company and the
Holders agree that venue for any dispute arising under this Agreement will lie
exclusively in the state or federal courts located in New York County, New York,
and the parties irrevocably waive any right to raise forum non conveniens or any
other argument that New York is not the proper venue. The Company and the
Holders irrevocably consent to personal jurisdiction in the state and federal
courts of the state of New York. The Company and the Holders consent to process
being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing in this Section 7(j) shall affect or limit any right
to serve process in any other manner permitted by law. The parties hereby waive
all rights to a trial by jury.

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

                                      -15-
<PAGE>

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

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

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

                  (o)      Independent Nature of Purchasers. The Company
acknowledges that the obligations of each Purchaser under the Transaction
Documents are several and not joint with the obligations of any other Purchaser,
and no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser under the Transaction Documents. The Company
acknowledges that nothing contained herein, or in any Transaction Document, and
no action taken by any Purchaser pursuant hereto or thereto (including, but not
limited to, the (i) inclusion of a Purchaser in the Registration Statement and
(ii) review by, and consent to, such Registration Statement by a Purchaser)
shall be deemed to constitute the Purchasers as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by the Transaction Documents. The
Company acknowledges that each Purchaser shall be entitled to independently
protect and enforce its rights, including without limitation, the rights arising
out of this Agreement or out of the other Transaction Documents, and it shall
not be necessary for any other Purchaser to be joined as an additional party in
any proceeding for such purpose. The Company acknowledges that for reasons of
administrative convenience only, the Transaction Documents have been prepared by
counsel for one of the Purchasers and such counsel does not represent all of the
Purchasers. The Company acknowledges that it has elected to provide all
Purchasers with the same terms and Transaction Documents for the convenience of
the Company and not because it was required or requested to do so by the
Purchasers. The Company acknowledges that such procedure with respect to the
Transaction Documents in no way creates a presumption that the Purchasers are in
any way acting in concert or as a group with respect to the Transaction
Documents or the transactions contemplated hereby or thereby.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -16-
<PAGE>

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

                                        GLOWPOINT, INC.

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

                                        PURCHASER:

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

<PAGE>

                                   Schedule I
                               List of Purchasers

<PAGE>

                                   Schedule II

        Securities Permitted to be Included on the Registration Statement

1.       Shares of Common Stock issuable upon the exercise of warrants issuable
         to the placement agent and its designees in connection with the
         transactions contemplated by the Purchase Agreement.<PAGE>

                                                                    Exhibit 10.3

                               SECURITY AGREEMENT

         SECURITY AGREEMENT (as amended, restated, supplemented or otherwise
modified from time to time in accordance herewith and including all attachments,
exhibits and schedules hereto, the "Agreement"), dated as of March 31, 2006,
made by Glowpoint, Inc., a Delaware corporation (the "Grantor"), in favor of the
secured parties listed on Exhibit A to this Agreement and their permitted
successors and assigns (collectively, the "Secured Parties").

         WHEREAS, the Grantor has issued or will issue separate senior secured
convertible promissory notes to the Secured Parties (the "Notes") pursuant to a
Note and Warrant Purchase Agreement dated as of March 31, 2006 (the "Purchase
Agreement"), by and among the Grantor and the Secured Parties; and

         WHEREAS, the Secured Parties and the Grantor desire that the Grantor
execute and deliver to the Secured Parties a security agreement providing for
the grant to the Secured Parties of a continuing security interest in all
personal property and assets of the Grantor, all in substantially the form
hereof to secure all Obligations (hereinafter defined).

         NOW, THEREFORE, the parties agree as follows:

                             ARTICLE I. DEFINITIONS

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

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

         "Collateral" means all accounts receivable of the Grantor and all
personal and fixed property of every kind and nature, including, without
limitation, all furniture, fixtures, equipment, raw materials, inventory, as
extracted collateral, or other goods, accounts, contract rights, rights to the
payment of money, insurance refund claims and all other insurance claims and
proceeds, tort claims, chattel paper, documents, instruments, securities and
other investment property, deposit accounts, rights to proceeds of letters of
credit and all general intangibles including, without limitation, all tax refund
claims, license fees, patents, patent licenses, patent applications, trademarks,
trademark licenses, trademark applications, trade names, copyrights, copyright
licenses, copyright applications, rights to sue and recover for past
infringement of patents, trademarks and copyrights, computer programs, computer
software, engineering drawings, service marks, customer lists, goodwill, and all
licenses, permits, agreements of any kind or nature pursuant to which the
Grantor possesses, uses or has authority to possess or use property (whether
tangible or intangible) of others or others possess, use or have authority to
possess or use property (whether tangible or intangible) of the Grantor, and all
recorded data of any kind or nature, regardless of the medium of recording
including, without limitation, all books and records, software, writings, plans,
specifications and schematics, whether now owned or hereinafter acquired by the
Grantor; and all proceeds and products of each of the foregoing.

<PAGE>

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

         "Event of Default" has the meaning specified in the Notes.

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

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

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

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

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

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

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

                          ARTICLE II. SECURITY INTEREST

         Section 2.1.   Security Interest. As security for the payment and
performance, in full of the Obligations, and any extensions, renewals,
modifications or refinancings of the Obligations, the Grantor hereby bargains,
sells, conveys, assigns, sets over, mortgages, pledges, hypothecates and
transfers to the Secured Parties, and hereby grants to the Secured Parties,
their successors and assigns, a security interest in, all of such Grantor's
right, title and interest in, to and under the Collateral and all hereinafter
acquired Collateral (the "Security Interest").

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

<PAGE>

                   ARTICLE III. REPRESENTATIONS AND WARRANTIES

         The Grantor represents and warrants to the Secured Parties that:

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

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

         Section 3.3.   Validity and Priority of Security Interest. The Security
Interest constitutes (a) a legal and valid first priority security interest in
all the Collateral securing the payment and performance of the Obligations, (b)
subject only to any previously perfected security interests in the Collateral
listed on Schedule 3.3 to this Agreement ("Existing Liens"), a perfected first
priority security interest in all Collateral in which a security interest may be
perfected by filing, recording or registration in the United States pursuant to
the Uniform Commercial Code or other applicable law in the United States (or any
political subdivision thereof) and its territories and possessions or any other
country, state or nation (or any political subdivision thereof). The Security
Interest is and shall be subordinate to any other Existing Lien on any of the
Collateral.

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

<PAGE>

priority security interest. Such notices, filings and all other action necessary
or desirable to perfect and protect such security interest have been duly taken.

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

                              ARTICLE IV. COVENANTS

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

                  (a)      The Grantor shall notify the Secured Parties in
         writing at least eleven (11) days prior to any change (i) in its
         corporate name or in any trade name used to identify it in the conduct
         of its business or in the ownership of its properties, (ii) in the
         location of its chief executive office, its principal place of
         business, any office in which it maintains books or records relating to
         Collateral owned by it (including the establishment of any such new
         office or facility), (iii) in its identity or corporate structure such
         that a filed filing made under the Uniform Commercial Code becomes
         misleading or (iv) in its Federal Taxpayer Identification Number.
         Furthermore, the Grantor shall not effect or permit any change referred
         to in the preceding sentence unless all filings have been made under
         the Uniform Commercial Code or otherwise that are required in order for
         the Secured Parties to continue at all times following such change to
         have a valid, legal and perfected first priority security interest in
         all the Collateral.

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

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

         Section 4.3.  Periodic Certification; Notice of Changes. In the event
there should at any time be any change in the information represented and
warranted herein or in the documents

<PAGE>

and instruments executed and delivered in connection herewith, the Grantor shall
promptly notify the Secured Parties in writing of such change (this notice
requirement shall be in extension of and shall not limit or relieve the Grantor
of any other covenants hereunder).

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

         Section 4.5.   Inspection and Verification. The Secured Parties and
such persons as the Secured Parties may reasonably designate shall have the
right, during normal business hours, to inspect the Collateral, all records
related thereto (and to make extracts and copies from such records) and the
premises upon which any of the Collateral is located, to discuss the Grantor's
affairs with the officers of the Grantor and its independent accountants and to
verify under reasonable procedures the validity, amount, quality, quantity,
value, condition and status of, or any other matter relating to, the Collateral,
including, in the case of collateral in the possession of any third Person, by
contacting any account debtor or third Person possessing such Collateral for the
purpose of making such a verification. Out-of-pocket expenses in connection with
any inspections by representatives of the Secured Parties shall be (a) the
obligations of the Grantor with respect to any inspection after the Secured
Parties' lawful demand for payment of the Notes and the nonpayment thereof by
Grantor or (b) the obligation of the Secured Parties in any other case.

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

         Section 4.7.   Use and Disposition of Collateral. The Grantor shall not
make or permit to be made an assignment, pledge or hypothecation of any
Collateral or shall grant any other Lien in respect of the Collateral without
the prior written consent of the Secured Parties. The Grantor shall not make or
permit to be made any transfer of any Collateral other than with respect to
Existing Liens and other liens approved by the Secured Parties and the Grantor
shall remain at all times in possession of the Collateral owned by it.

         Section 4.8.   Insurance/Notice of Loss. Within a reasonable period of
time following the date of this Agreement, Grantor, at its own expense, shall
maintain or cause to be maintained insurance covering physical loss or damage to
the Collateral as described on Schedule 4.8 to this Agreement. In extension of
the foregoing and without limitation, such insurance shall be payable to the
Secured Parties as loss payee under a "standard" loss payee clause, and the
Secured Parties shall be listed as an "additional insured" on Grantor's general
liability insurance. Such insurance shall not be terminated, cancelled or not
renewed for any reason, including non-payment of insurance premiums, unless the
insurer shall have provided the Secured Parties at

<PAGE>

least 30 days prior written notice. Grantor irrevocably makes, constitutes and
appoints the Secured Parties (and all officers, employees or agents designated
by the Secured Parties) as its true and lawful agent and attorney-in-fact for
the purpose, at any time following the Secured Parties' lawful demand for
payment of the Notes and the nonpayment thereof by Grantor, of making, settling
and adjusting claims in respect of Collateral under policies of insurance,
endorsing the name of Grantor on any check, draft, instrument or other item of
payment for the proceeds of such policies of insurance and for making all
determinations and decisions with respect thereto. In the event that Grantor at
any time or times shall fail to obtain or maintain any of the policies of
insurance required hereby or to pay any premium in whole or part relating
thereto, the Secured Parties may, without waiving or releasing any obligation or
liability of Grantor hereunder, in their sole discretion, obtain and maintain
such policies of insurance and pay such premium and take any other actions with
respect thereto as the Secured Parties deem advisable. All sums disbursed by the
Secured Parties in connection and in accordance with this Section, including
reasonable attorneys' fees, court costs, expenses and other charges relating
thereto, shall be payable upon demand, by Grantor to the Secured Parties and
shall be additional Obligations secured hereby. Grantor shall promptly notify
the Secured Parties if any material portion of the Collateral owned or held by
Grantor is damaged or destroyed. The proceeds of any casualty insurance in
respect of any casualty loss of any of the Collateral shall (i) so long as the
Secured Parties have not demanded payment of the Notes, be disbursed to Grantor
for direct application by Grantor solely to the repair or replacement of
Grantor's property so damaged or destroyed, and (ii) in all other circumstances,
be held by the Secured Parties as cash collateral for the Obligations. The
Secured Parties may, at their sole option, disburse from time to time all or any
part of such proceeds so held as cash collateral, upon such terms and conditions
as the Secured Parties may reasonably prescribe, for direct application by the
Secured Parties solely to the repair or replacement of Grantor's property so
damaged or destroyed, or Grantor may apply all or any part of such proceeds to
the Obligations.

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

                ARTICLE V. FURTHER ASSURANCES; POWER OF ATTORNEY

         Section 5.1.   Further Assurances. Grantor shall, at its own expense,
execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the Secured Parties may
from time to time reasonably request to better assure, preserve, protect and
perfect the Security Interest and the rights and remedies created hereby,
including the payment of any fees and taxes required in connection with the
execution and delivery of this Agreement, the granting of the Security Interest
and the filing of any financing statements (including fixture filings) or other
documents in connection herewith or therewith. If any amount payable under or in
connection with any of the Collateral shall be or become evidenced by any
promissory note or other instrument, such note or instrument shall be
immediately pledged and delivered to the Secured Parties, duly endorsed in a
manner satisfactory to the Secured Parties.

<PAGE>

         Section 5.2.   Power of Attorney.

                  (a)      Grantor hereby irrevocably (as a power coupled with
an interest) constitutes and appoints the Collateral Agent (as defined in
Section 7.14 hereof) and all officers, employees or agents designated by the
Collateral Agent, its attorney-in-fact with full power of substitution, for the
benefit of the Secured Parties,

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

                           (ii)     at any time following the Secured Parties'
         lawful demand for payment of the Notes and the nonpayment thereof by
         Grantor (i) to receive, endorse, assign and/or deliver any and all
         notes, acceptances, checks, drafts, money orders or other evidences of
         payment relating to the Collateral or any part thereof; (ii) to demand,
         collect, receive payment of, give receipt for and give discharges and
         releases of all or any of the Collateral; (iii) to sign the name of
         Grantor on any invoice or bill of lading relating to any of the
         Collateral; (iv) to send verifications of accounts to any account
         debtor or any other Person liable for an account; (v) to commence and
         prosecute any and all suits, actions or proceedings at law or in equity
         in any court of competent jurisdiction to collect or otherwise realize
         on all or any of the Collateral or to enforce any rights in respect of
         any Collateral; (vi) to settle, compromise, compound, adjust or defend
         any actions, suits or proceeding relating to all or any of the
         Collateral; and (vii) to use, sell, assign, transfer, pledge, make any
         agreement with respect to or otherwise deal with all or any of the
         Collateral, and to do all other acts and things necessary to carry out
         the purposes of this Agreement, as fully and completely as though the
         Secured Parties were the absolute owner of the Collateral for all
         purposes; provided, however, that nothing herein contained shall be
         construed as requiring or obligating the Secured Parties to make any
         commitment or to make any inquiry as to the nature or sufficiency of
         any payment received by the Secured Parties, or to present or file any
         claim or notice, or to take any action with respect to the Collateral
         or any part thereof or the moneys due or to become due in respect
         thereof or any property covered thereby, and no action taken or omitted
         to be taken by the Secured Parties with respect to the Collateral or
         any part thereof shall give rise to any defense, counterclaim or offset
         in favor of Grantor or to any claim or action against the Secured
         Parties.

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

<PAGE>

                              ARTICLE VI. REMEDIES

         Section 6.1.   Remedies upon Default.

                  (a)      Upon the occurrence and during the continuance of an

         Event of Default, Grantor agrees to deliver each item of its Collateral
         to the Secured Parties on demand, and it is agreed that the Secured
         Parties shall have the right to take any of or all the following
         actions at the same or different times (but at all times subject to any
         Existing Liens): with or without legal process and with or without
         prior notice or demand for performance, to take possession of the
         Collateral and without liability for trespass to enter any premises
         where the Collateral may be located for the purpose of taking
         possession of or removing the Collateral, exercise Grantor's right to
         bill and receive payment for completed work and, generally, to exercise
         any and all rights afforded to a secured party under the Uniform
         Commercial Code or other applicable law. Without limiting the
         generality of the foregoing, Grantor agrees that the Secured Parties
         shall have the right, subject to the mandatory requirements of
         applicable law, to sell or otherwise dispose of all or any part of the
         Collateral, at public or private sale or at any broker's board or on
         any securities exchange, for cash, upon credit or for future delivery
         as the Secured Parties shall deem appropriate. The Secured Parties
         shall be authorized at any such sale (if it deems it advisable to do
         so) to restrict the prospective bidders or purchasers to persons who
         will represent and agree that they are purchasing the Collateral for
         their own account for investment and not with a view to the
         distribution or sale thereof, and upon consummation of any such sale
         the Secured Parties shall have the right to assign, transfer and
         deliver to the purchaser or purchasers thereof the Collateral so sold.
         Each such purchaser at any such sale shall hold the property sold
         absolutely, free from any claim or right on the part of Grantor, and
         Grantor hereby waives (to the extent permitted by law) all rights of
         redemption, stay and appraisal which Grantor now has or may at any time
         in the future have under any rule of law or statute now existing or
         hereafter enacted.

                  (b)      The Secured Parties shall give Grantor ten (10) days'
         written notice (which Grantor agrees is reasonable notice within the
         meaning of Section 9-504(3) of the Uniform Commercial Code) of the
         Secured Parties' intention to make any sale of Collateral. Such notice,
         in the case of a public sale, shall state the time and place for such
         sale and, in the case of a sale at a broker's board or on a securities
         exchange, shall state the board or exchange at which such sale is to be
         made and the day on which the Collateral, or portion thereof, will
         first be offered for sale at such board or exchange. Any such public
         sale shall be held at such time or times within ordinary business hours
         and at such place or places as the Secured Parties may fix and state in
         the notice (if any) of such sale. At any such sale, the Collateral, or
         portion thereof, to be sold may be sold in one lot as an entirety or in
         separate parcels, as the Secured Parties may (in their sole and
         absolute discretion) determine. The Secured Parties shall not be
         obligated to make any sale of any Collateral if they shall determine
         not to do so, regardless of the fact that notice of sale of such
         Collateral shall have been given. The Secured Parties may, without
         notice or publication, adjourn any public or private sale or cause the
         same to be adjourned from time to time by announcement at the time and
         place fixed for sale, and such sale may, without further notice, be
         made at the time and place to which the same was so adjourned. In case
         any sale of all or any part of the Collateral is made on credit or for
         future delivery, the Collateral so sold may be retained by the Secured
         Parties until the

<PAGE>

         sale price is paid by the purchaser or purchasers thereof, but the
         Secured Parties shall not incur any liability in case any such
         purchaser or purchasers shall fail to take up and pay for the
         Collateral so sold and, in case of any such failure, such Collateral
         may be sold again upon like notice. At any public (or, to the extent
         permitted by law, private) sale made pursuant to this Section, the
         Secured Parties may bid for or purchase, free (to the extent permitted
         by law) from any right of redemption, stay, valuation or appraisal on
         the part of Grantor (all said rights being also hereby waived and
         released to the extent permitted by law), the Collateral or any part
         thereof offered for sale and may make payment on account thereof by
         using any claim then due and payable to the Secured Parties from
         Grantor as a credit against the purchase price, and the Secured Parties
         may, upon compliance with the terms of sale, hold, retain and dispose
         of such property without further accountability to Grantor therefor.
         For purposes hereof, a written agreement to purchase the Collateral or
         any portion thereof shall be treated as a sale thereof; the Secured
         Parties shall be free to carry out such sale pursuant to such agreement
         and Grantor shall not be entitled to the return of the Collateral or
         any portion thereof subject thereto, notwithstanding the fact that
         after the Secured Parties shall have entered into such an agreement all
         Obligations have been paid in full. As an alternative to exercising the
         power of sale herein conferred upon it, the Secured Parties may proceed
         by a suit or suits at law or in equity to foreclose this Agreement and
         to sell the Collateral or any portion thereof pursuant to a judgment or
         decree of a court or courts having competent jurisdiction or pursuant
         to a proceeding by a court-appointed receiver.

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

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

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

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

         Subject to the foregoing, the Secured Parties shall have absolute
discretion as to the time of application of such proceeds, moneys or balances in
accordance with this Agreement. Upon any sale of the Collateral by the Secured
Parties (including pursuant to a power of sale granted by statute or under a
judicial proceeding), the receipt of any such proceeds, moneys or balances by
the Secured Parties or of the officer making the sale shall be a sufficient
discharge to the purchaser or purchasers of the Collateral so sold and such
purchaser or purchasers shall not be obligated to see to the application of any
part of the purchase money paid over to the Secured Parties or such officer or
be answerable in any way for the misapplication thereof.

<PAGE>

         Section 6.3.   Grant of License to Use Intellectual Property. For the
purpose of enabling the Secured Parties to exercise rights and remedies under
this Article at such time as the Secured Parties shall be lawfully entitled to
exercise such rights and remedies, Grantor hereby grants to the Secured Parties
an irrevocable, non-exclusive license (exercisable without payment of royalty or
other compensation to Grantor) to use, license or sub-license any of the
Collateral consisting of intellectual property now owned or hereafter acquired
by Grantor, and wherever the same may be located, and including in such license
reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer software and programs used for the
compilation or printout thereof. The use of such license by the Secured Parties
may be exercised, at the option of the Secured Parties, only following the
Secured Parties' lawful demand for payment of the Notes and the nonpayment
thereof by Grantor.

                           ARTICLE VII. MISCELLANEOUS

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

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

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

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

<PAGE>

contemplated by this Agreement, the Purchase Agreement, the Notes or the other
Transaction Documents.

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

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

                  (b)      Grantor agrees to indemnify the Secured Parties and
         the agent, contractors and employees of the Secured Parties
         (collectively, the "Indemnitees") against, and hold each of them
         harmless from, any and all losses, claims, damages, liabilities and
         related expenses, including reasonable fees, disbursements and other
         charges of counsel, incurred by or asserted against any of them arising
         out of, in any way connected with, or as a result of, the execution,
         delivery, or performance of this Agreement or any agreement or
         instrument contemplated hereby or any claim, litigation, investigation
         or proceeding relating hereto or to the Collateral, whether or not any
         Indemnitee is a party thereto; provided that such indemnity shall not,
         as to any Indemnitee, be available to the extent that such losses,
         claims, damages, liabilities or related expenses are determined by a
         court of competent jurisdiction by final and nonappealable judgment to
         have resulted from the gross negligence or willful misconduct of such
         Indemnitee.

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

         Section 7.6. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO ANY OF THE CONFLICTS OF LAW PRINCIPLES WHICH WOULD RESULT IN
THE APPLICATION OF THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION. THIS AGREEMENT
SHALL NOT BE INTERPRETED OR CONSTRUED WITH ANY PRESUMPTION AGAINST THE PARTY
CAUSING THIS AGREEMENT TO BE DRAFTED.

<PAGE>

         Section 7.7.   Waivers; Amendment.

                  (a)      No failure or delay of the Secured Parties in
         exercising any power or right hereunder shall operate as a waiver
         thereof, nor shall any single or partial exercise of any such right or
         power, or any abandonment or discontinuance of steps to enforce such a
         right or power, preclude any other or further exercise thereof or the
         exercise of any other right or power. The rights and remedies of the
         Secured Parties hereunder and under the Purchase Agreement are
         cumulative and are not exclusive of any rights or remedies that they
         would otherwise have. No waiver of any provisions of this Agreement,
         the Purchase Agreement, the Notes or the other Transaction Documents or
         consent to any departure by Grantor therefrom shall in any event be
         effective unless the same shall be permitted by paragraph (b) below,
         and then such waiver or consent shall be effective only in the specific
         instance and for the purpose for which given. No notice to or demand on
         Grantor in any case shall entitle Grantor to any other or further
         notice or demand in similar or other circumstances.

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

         Section 7.8.   WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE PURCHASE AGREEMENT OR THE
NOTES. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT, THE PURCHASE AGREEMENT AND THE NOTES, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION.

         Section 7.9.   Severability. In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the
validity of such provision in any other jurisdiction). The parties shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

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

<PAGE>

         Section 7.11.  Jurisdiction; Consent to Service of Process.

                  (a)      Grantor hereby irrevocably and unconditionally
         submits, for itself and its property, to the nonexclusive jurisdiction
         of any New York State court or Federal court of the United States of
         America sitting in New York City, and any appellate court from any
         thereof, in any action or proceeding arising out of or relating to this
         Agreement, the Purchase Agreement or the Notes, or for recognition or
         enforcement of any judgment, and each of the parties hereto hereby
         irrevocably and unconditionally agrees that all claims in respect of
         any such action or proceeding may be heard and determined in such New
         York State or, to the extent permitted by law, in such Federal court.
         Each of the parties hereto agrees that a final judgment in any such
         action or proceeding shall be conclusive and may be enforced in other
         jurisdictions by suit on the judgment or in any other manner provided
         by law. Nothing in this Agreement shall affect any right that the
         Secured Parties may otherwise have to bring any action or proceeding
         relating to this Agreement, the Purchase Agreement, the Notes or the
         other Transaction Documents against Grantor or its properties in the
         courts of any jurisdiction.

                  (b)      Grantor hereby irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection which it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Agreement, the Purchase Agreement, the Notes or the other Transaction
         Documents in any New York State or Federal court. Each of the parties
         hereto hereby irrevocably waives, to the fullest extent permitted by
         law, the defense of an inconvenient forum to the maintenance of such
         action or proceeding in any such court.

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

         Section 7.12.  Termination. This Agreement and the Security Interest
shall terminate when all the Obligations have been paid in full, at which time
the Secured Parties shall execute and deliver to Grantor, at Grantor's expense,
all Uniform Commercial Code termination statements and similar documents which
Grantor shall reasonably request to evidence such termination. Any execution and
delivery of termination statements or documents pursuant to this Section shall
be without recourse to or warranty by the Secured Parties.

         Section 7.13.  Prejudgment Remedy Waiver. Grantor acknowledges that
this Agreement, the Purchase Agreement, the Notes and the other Transaction
Documents evidence a commercial transaction and that it could, under certain
circumstances have the right, to notice of and hearing on the right of the
Secured Parties to obtain a prejudgment remedy, such as attachment, garnishment
and/or replevin, upon commencing any litigation against Grantor.
Notwithstanding, Grantor hereby waives, to the extent it may lawfully do so, all
rights to notice, judicial hearing or prior court order to which it might
otherwise have the right under any state or federal statute or constitution in
connection with the obtaining by the Secured Parties of any prejudgment remedy
by reason of this Agreement, the Purchase Agreement, the Notes, the other
Transaction Documents or by reason of the Obligations or any renewals or
extensions of the same. Grantor also waives, to the extent it may lawfully do
so, any and all objection which it might otherwise

<PAGE>

assert, now or in the future, to the exercise or use by the Secured Parties of
any right of setoff, repossession or self help as may presently exist under
statute or common law.

         Section 7.14.  Collateral Agent.

                  (a)      Each Secured Party hereby appoints Bush Ross, P.A.
(the "Collateral Agent") as the Collateral Agent hereunder and each Secured
Party authorizes the Collateral Agent to take such action as agent on its behalf
and to exercise such powers under this Agreement and the other Transaction
Documents as are delegated to the Collateral Agent under such agreements and to
exercise such powers as are reasonably incidental thereto. Without limiting the
foregoing, each Secured Party hereby authorizes the Collateral Agent to execute
and deliver, and to perform its obligations under, each of the documents to
which the Collateral Agent is a party relating to security for the obligations
under the Notes, to exercise all rights, powers and remedies that the Collateral
Agent may have under such Transaction Documents and, in the case of the
Transaction Documents, to act as agent for the Secured Parties under such
Transaction Documents.

                  (b)      As to any matters not expressly provided for by this
Agreement and the other document relating thereto (including enforcement or
collection), the Collateral Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Secured Parties, and such instructions shall be
binding upon all Secured Parties; provided, however, that the Collateral Agent
shall not be required to take any action that (i) the Collateral Agent in good
faith believes exposes it to personal liability unless the Collateral Agent
receives an indemnification satisfactory to it from the Secured Parties with
respect to such action or (ii) is contrary to this Agreement or applicable law.
The Collateral Agent agrees to give to each Secured Party prompt notice of each
notice given to it by the Grantor pursuant to the terms of this Agreement or the
other Transaction Documents. If the Collateral Agent receives conflicting
instructions from the Secured Parties it will not be required to act until it
receives instructions from the Secured Parties holding a majority of the Notes
then outstanding (calculated in dollar amounts rather than noteholders).

                  (c)      In performing its functions and duties hereunder and
under the Transaction Documents and the other documents required to be executed
or delivered in connection therewith, the Collateral Agent is acting solely on
behalf of the Secured Parties and its duties are entirely administrative in
nature. The Collateral Agent does not assume and shall not be deemed to have
assumed any obligation other than as expressly set forth herein, in the
Transaction Documents and any other documents required to be executed or
delivered in connection therewith related hereto or any other relationship as
the agent, fiduciary or trustee of or for any Secured Party or holder of any
other obligation under this Agreement or the Notes. The Collateral Agent may
perform any of its duties under any Transaction Document by or through its
agents or employees.

                  (d)      None of the Collateral Agent, any of its affiliates
or any of their respective directors, officers, agents or employees shall be
liable for any action taken or omitted to be taken by it, him, her or them under
or in connection with this Agreement or the other Transaction Documents, except
for its, his, her or their own gross negligence or willful misconduct.

<PAGE>

                  (e)      Each Secured Party acknowledges that it shall,
independently and without reliance upon the Collateral Agent or any other
Secured Party conduct its own independent investigation of the financial
condition and affairs of the Grantor and its Subsidiaries in connection with the
issuance of the Securities. Each Secured Party also acknowledges that it shall,
independently and without reliance upon the Collateral Agent or any other
Secured Party and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement and other Transaction Documents. For
avoidance of doubt, each Secured Party represents that it has had no contact
with the Collateral Agent; that the Collateral Agent has had no role in the
negotiation or preparation of the Transaction Documents and was contacted after
such negotiations and documents were finalized for the purpose of serving solely
in the administrative role of Collateral Agent under this Agreement.

                  (f)      Each Secured Party agrees to indemnify the Collateral
Agent and each of its affiliates, and each of their respective directors,
officers, employees, agents and advisors (to the extent not reimbursed by the
Grantor), from any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses and disbursements (including fees,
expenses and disbursements of financial and legal advisors) of any kind or
nature whatsoever that may be imposed on, incurred by, or asserted against, the
Collateral Agent or any of its affiliates, directors, officers, employees,
agents and advisors in any way relating to or arising out of this Agreement or
the other Transaction Documents or any action taken or omitted by the Collateral
Agent under this Agreement or the document related thereto; provided, however,
that no Secured Party shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Collateral Agent's or such
affiliate's gross negligence or willful misconduct.

                  (g)      The Collateral Agent may resign at any time by giving
written notice thereof to the Secured Parties and the Grantor. Upon any such
resignation, the Secured Parties holding a majority of the Notes then
outstanding shall have the right to appoint a successor Collateral Agent. If no
successor Collateral Agent shall have been so appointed by the Secured Parties
holding a majority of the Notes then outstanding, and shall have accepted such
appointment, within 30 days after the retiring Collateral Agent's giving of
notice of resignation, then the retiring Collateral Agent may, on behalf of the
Secured Parties, appoint a successor Collateral Agent, selected from among the
Secured Parties. Upon the acceptance of any appointment as Collateral Agent by a
successor Collateral Agent, such successor Collateral Agent shall succeed to,
and become vested with, all the rights, powers, privileges and duties of the
retiring Collateral Agent, and the retiring Collateral Agent shall be discharged
from its duties and obligations under this Agreement, the Transaction Documents
and any other documents required to be executed or delivered in connection
therewith. Prior to any retiring Collateral Agent's resignation hereunder as
Collateral Agent, the retiring Collateral Agent shall take such action as may be
reasonably necessary to assign to the successor Collateral Agent its rights as
Collateral Agent under the Transaction Documents. After such resignation, the
retiring Collateral Agent shall continue to have the benefit of this Agreement
as to any actions taken or omitted to be taken by it while it was Collateral
Agent under this Agreement, the Transaction Documents and any other documents
required to be executed or delivered in connection therewith.

                  (h)      Each Secured Party agrees that any action taken by
the Collateral Agent in accordance with the provisions of this Agreement or of
the other document relating thereto, and

<PAGE>

the exercise by the Collateral Agent or the Secured Parties of the powers set
forth herein or therein, together with such other powers as are reasonably
incidental thereto, shall be authorized and binding upon all of the Secured
Parties. The Secured Parties holding a majority of the Notes then outstanding
may elect to remove or replace the Collateral Agent.

                  (i)      Each of the Secured Parties hereby directs, in
accordance with the terms hereof, the Collateral Agent to release (or in the
case of clause (ii) below, release or subordinate) any Lien held by the
Collateral Agent for the benefit of the Secured Parties against any of the
following: (i) all of the Collateral upon payment and satisfaction in full of
all obligations under the Notes and all other obligations under the Transaction
Documents that the Collateral Agent has been notified in writing are then due
and payable and (ii) any part of the Collateral sold or disposed of by the
Grantor or any Subsidiary if such sale or disposition is permitted by this
Agreement and the Notes (or permitted pursuant to a waiver or consent of a
transaction otherwise prohibited by this Agreement and the Notes). Each of the
Secured Parties hereby directs the Collateral Agent to execute and deliver or
file such termination and partial release statements and do such other things as
are necessary to release Liens to be released pursuant to this Section 7.14
promptly upon the effectiveness of any such release.

                  (j)      The contact information for the Collateral Agent is:
Bush Ross, P.A., 220 S. Franklin Street, Tampa, FL 33602, Attention: John
Giordano. The fax number for Bush Ross, P.A. is (813) 223-9620 and the E-mail
address is jgiordano@bushross.com. The telephone number for Bush Ross, P.A. is
(813) 224-9255.

                  (k)      The Collateral Agent:

                                    (i)      shall not be responsible in any
                  manner for the validity, correctness or sufficiency of any
                  document or instrument received by or made available to it, in
                  its capacity as Collateral Agent hereunder.

                                    (ii)     shall be entitled to act upon any
                  written certificate, statement, notice, demand, request,
                  consent, agreement or other instrument whatever, not only in
                  reliance upon its due execution and the validity and
                  effectiveness of its provisions, but also as to the accuracy
                  and completeness of any information therein contained, which
                  the Collateral Agent shall in good faith believe to be genuine
                  and to have been signed or presented by any authorized person.

                                    (iii)    shall be entitled to request and
                  receive from any party hereto such documents in addition to
                  those provided for herein as the Collateral Agent may deem
                  necessary to resolve any questions of fact involved in the
                  administration of its duties hereunder.

                                    (iv)     may, at the expense of the
                  remaining parties, consult independent counsel of its choice
                  in respect to any question relating to its duties or
                  responsibilities under this Agreement, and shall not

<PAGE>

                  be liable for any action taken or omitted in good faith on
                  advice of such counsel.

                                    (v)      shall be under no obligation to
                  advance any monetary sum in connection with the maintenance or
                  administration of this Agreement, to institute or defend any
                  action, suit or legal proceeding in connection herewith, or to
                  take any other action likely to involve the Collateral Agent
                  in expense, unless first indemnified by the remaining parties
                  to the Collateral Agent's satisfaction.

                                    (vi)     shall not be bound by any amendment
                  to this Agreement or by any other such amendment or agreement
                  unless the same shall have been executed by the Collateral
                  Agent.

                                    (vii)    shall have only such duties and
                   responsibilities as are expressly set forth in this Agreement
                   in the performance of its obligations hereunder.

                                    (viii)   shall be indemnified and held
                  harmless by the remaining parties against any and all
                  liabilities incurred by it hereunder (including all costs,
                  expenses and fees incurred in defending any legal action or
                  administrative proceeding or in resisting any claim), except
                  for those resulting from its own willful misconduct or gross
                  negligence.

                                    (ix)     may, if it becomes uncertain
                  concerning its rights and responsibilities with respect to its
                  duties or if it receives instructions with respect to the
                  Collateral that it believes to be in conflict with this
                  Agreement or is advised that a dispute has arisen with respect
                  to its duties under this Agreement, without liability, refrain
                  from taking any action until it is directed otherwise in a
                  writing signed by all of the Secured Parties or by an order of
                  a court of competent jurisdiction. The Collateral Agent is not
                  obligated to institute or defend any legal proceedings,
                  although it may, in its sole discretion and at the remaining
                  parties' expense, institute or defend such proceedings
                  (including proceedings seeking a declaratory judgment) and
                  join interested parties.

                                    (x)      The Collateral Agent will be paid a
                  fee of $3,000 for its agreement to serve as the Collateral
                  Agent. This fee is payable upon the execution of this
                  Agreement.

                            [SIGNATURE PAGES FOLLOW]

<PAGE>

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

                                        GLOWPOINT, INC.

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

                                        SECURED PARTY:

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

ACKNOWLEDGED AND AGREED:

COLLATERAL AGENT:

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

<PAGE>

                                    EXHIBIT A
                                 SECURED PARTIES

<PAGE>

                                   SCHEDULE A
        STATE OF INCORPORATION; CHIEF EXECUTIVE OFFICE; FILING LOCATIONS

State of Incorporation:
Delaware

Chief Executive Office:
225 Long Avenue
Hillside, New Jersey 07205

Filing Locations:
Secretary of State of the State of Delaware

<PAGE>

                                  SCHEDULE 3.3
                                 EXISTING LIENS

None.

<PAGE>

                                  SCHEDULE 3.4
                             ABSENCE OF OTHER LIENS

None.

<PAGE>

                                  SCHEDULE 4.8
                                    INSURANCE

Business Property Insurance - $5.5 million

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