Document:

SECURITY AGREEMENT

      SECURITY  AGREEMENT,  dated as of February  10,  2006 (this  "Agreement"),
among World Waste Technologies,  Inc., a California  corporation (the "Company")
and  all  of  the  Subsidiaries  of  the  Company  (other  than  the  Immaterial
Subsidiaries (as defined herein)) (such  Subsidiaries,  the  "Guarantors")  (the
Company and Guarantors are  collectively  referred to as the "Debtors"),  on the
one hand and the holders of the Company's 10% Secured  Debentures  issued on the
date  hereof  in  the  original   aggregate   principal   amount  of  $6,265,000
(collectively referred to as, the "Debentures") and the Company's Senior Secured
Promissory  Notes  issued in  November,  2005  (collectively  referred to as the
"November Notes") , listed on Annex C hereto,  their endorsees,  transferees and
assigns (collectively referred to as, the "Secured Parties"), on the other hand.

                              W I T N E S S E T H:

      WHEREAS, pursuant to the Debentures, the Secured Parties listed on Annex C
hereto have severally agreed to extend the loans to the Company evidenced by the
Debentures;

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

      WHEREAS,  in order to induce  the  Secured  Parties  to  extend  the loans
evidenced  by the  Debentures,  each Debtor has agreed to execute and deliver to
the Secured Parties this Agreement and to grant the Secured Parties,  pari passu
with each other  Secured  Party and  through  the Agent,  a  perfected  security
interest  in certain  property  of such  Debtor to secure  the  prompt  payment,
performance and discharge in full of all of the Company's  obligations under the
Debentures and the other Debtor's obligations under the Guaranty; and

      WHEREAS,  the  holders  of the  November  Notes  entered  into a  Security
Agreement,  dated  November  1, 2005,  with the  Company  (the  "Prior  Security
Agreement") which Prior Security  Agreement provides that it may be amended with
the approval of the holders of at least 75%  aggregate  principal  amount of the
November Notes;

      WHEREAS,  the holders of at least 75%  aggregate  principal  amount of the
November  Notes wish to amend and restate the Prior  Security  Agreement  as set
forth herein and accordingly,  the Prior Security  Agreement shall be superseded
and replaced in its entirety by this Agreement.

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

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

<PAGE>

            (a) "Agent" shall have the meaning set forth in Section 18.

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

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

                  (ii)  All  contract  rights  and  other  general  intangibles,
including, without limitation, all partnership interests,  membership interests,
stock or other  securities,  rights under any of the  Organizational  Documents,
agreements  related to the  Pledged  Securities  (as  defined in Section  4(i)),
licenses,   distribution  and  other  agreements,   computer  software  (whether
"off-the-shelf",  licensed  from any third party or  developed  by any  Debtor),
computer  software  development  rights,  leases,  franchises,  customer  lists,
quality control procedures,  grants and rights,  goodwill,  trademarks,  service
marks, trade styles, trade names, patents, patent applications,  copyrights, and
income tax refunds;

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

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

                  (v) All commercial tort claims;

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

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<PAGE>

                  (vii) All investment property;

                  (viii) All supporting obligations;

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

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

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

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

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

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<PAGE>

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

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

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

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

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

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<PAGE>

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

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

      4. Representations,  Warranties,  Covenants and Agreements of the Debtors.
Except as set forth under the corresponding  section of the disclosure schedules
delivered to the Agent concurrently herewith (the "Disclosure  Schedules") which
Disclosure  Schedules shall be deemed a part hereof,  each Debtor represents and
warrants to, and covenants and agrees with, the Secured Parties as follows:

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

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

                                       5
<PAGE>

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

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

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

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

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<PAGE>

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

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

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

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

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

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<PAGE>

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

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

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

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

                                       8
<PAGE>

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

            (q) Each Debtor shall permit the Agent and its  representatives  and
agents  to  inspect  the  Collateral  during  normal  business  hours  and  upon
reasonable  prior  notice,  and to make  copies  of  records  pertaining  to the
Collateral as may be reasonably requested by the Agent from time to time.

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

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

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

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

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

            (w) Except in the ordinary course of business, no Debtor may consign
any of its  Inventory  or sell any of its  Inventory  on bill and hold,  sale or
return, sale on approval, or other conditional terms of sale without the consent
of the Agent which shall not be unreasonably withheld.

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

                                       9
<PAGE>

            (y) Each Debtor was organized and remains organized solely under the
laws of the state set forth next to such  Debtor's  name in  Schedule D attached
hereto,   which  Schedule  D  also  sets  forth  each  Debtor's   organizational
identification  number or, if any Debtor does not have one, states that one does
not exist.

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

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

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

            (cc) Each Debtor shall cause all tangible chattel paper constituting
Collateral  to be delivered to the Agent,  or, if such delivery is not possible,
then to cause such tangible  chattel paper to contain a legend noting that it is
subject to the security  interest created by this Agreement.  To the extent that
any Collateral consists of electronic chattel paper, the applicable Debtor shall
cause the underlying  chattel paper to be "marked" within the meaning of Section
9-105 of the UCC (or successor section thereto). (dd) If there is any investment
property or deposit  account  included as  Collateral  that can be  perfected by
"control"  through an account  control  agreement,  the applicable  Debtor shall
cause such an account  control  agreement,  in form and  substance  in each case
satisfactory to the Agent, to be entered into and delivered to the Agent.

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

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

                                       10
<PAGE>

            (gg) If any Debtor  shall at any time hold or  acquire a  commercial
tort claim,  such Debtor shall promptly  notify the Agent in a writing signed by
such Debtor of the particulars  thereof and grant to the Agent,  for the benefit
of the Secured Parties,  in such writing a security  interest therein and in the
proceeds thereof, all upon the terms of this Agreement,  with such writing to be
in form and substance reasonably satisfactory to the Agent.

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

            (ii) Other than any  inactive  subsidiaries  which have no  material
assets  and which will be  dissolved  or merged  with and into the  Company or a
Subsidiary within 6 months from the date hereof (the "Immaterial Subsidiaries"),
each Debtor  shall  cause each  subsidiary  of such Debtor to promptly  become a
party hereto (an "Additional Debtor"), by executing and delivering an Additional
Debtor Joinder in  substantially  the form of Annex A attached hereto and comply
with the provisions hereof applicable to the Debtors.  Concurrent therewith, the
Additional Debtor shall deliver replacement schedules for, or supplements to all
other  Schedules to (or referred to in) this  Agreement,  as  applicable,  which
replacement  schedules  shall  supersede,   or  supplements  shall  modify,  the
Schedules then in effect.  The Additional Debtor shall also deliver  authorizing
resolutions, good standing certificates, incumbency certificates, organizational
documents,  financing  statements and other information and documentation as the
Agent may reasonably  request.  Upon delivery of the foregoing to the Agent, the
Additional  Debtor shall be and become a party to this  Agreement  with the same
rights and  obligations as the Debtors,  for all purposes hereof as fully and to
the same extent as if it were an original  signatory  hereto and shall be deemed
to have made the  representations,  warranties and covenants set forth herein as
of the date of execution and delivery of such Additional Debtor Joinder, and all
references  herein to the "Debtors"  shall be deemed to include each  Additional
Debtor.

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

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

                                       11
<PAGE>

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

            (mm) Without limiting the generality of the other obligations of the
Debtors hereunder,  each Debtor shall promptly (i) cause to be registered at the
United States Copyright Office all of its material copyrights and (ii) cause the
security interest  contemplated hereby with respect to all Intellectual Property
registered  at the United  States  Copyright  Office or United States Patent and
Trademark Office to be duly recorded at the applicable office.

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

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

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

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

                                       12
<PAGE>

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

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

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

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

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

      7. Duty To Hold In Trust.

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

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

                                       13
<PAGE>

      8. Rights and Remedies Upon Default.

            (a) Upon the occurrence of any Event of Default  declared by holders
of at  least  30%  aggregate  principal  amount  of  Debentures  and at any time
thereafter,  the Secured Parties, acting through the Agent, shall have the right
to exercise all of the remedies  conferred  hereunder and under the  Debentures,
and the  Secured  Parties  shall have all the rights and  remedies  of a secured
party  under the UCC.  Without  limitation,  the Agent,  for the  benefit of the
Secured Parties, shall have the following rights and powers:

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

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

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

                                       14
<PAGE>

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

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

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

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

            (c) For the purpose of enabling the Agent to further exercise rights
and  remedies  under  this  Section 8 or  elsewhere  provided  by  agreement  or
applicable  law, each Debtor hereby grants to the Agent,  for the benefit of the
Agent and the Secured Parties, an irrevocable, nonexclusive license (exercisable
without payment of royalty or other compensation to such Debtor) to use, license
or sublicense following an Event of Default, any Intellectual Property now owned
or hereafter acquired by such Debtor, and wherever the same may be located,  and
including in such license access to all media in which any of the licensed items
may be recorded or stored and to all computer software and programs used for the
compilation or printout thereof.

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

                                       15
<PAGE>

      10.  Securities Law Provision.  Each Debtor  recognizes  that Agent may be
limited  in its  ability  to  effect a sale to the  public of all or part of the
Pledged  Securities by reason of certain  prohibitions  in the Securities Act of
1933, as amended, or other federal or state securities laws  (collectively,  the
"Securities  Laws"),  and may be  compelled  to resort to one or more sales to a
restricted  group of  purchasers  who may be  required  to agree to acquire  the
Pledged Securities for their own account,  for investment and not with a view to
the distribution or resale thereof. Each Debtor agrees that sales so made may be
at prices and on terms less favorable than if the Pledged  Securities  were sold
to the public, and that Agent has no obligation to delay the sale of any Pledged
Securities for the period of time  necessary to register the Pledged  Securities
for sale to the public under the  Securities  Laws.  Each Debtor  shall  provide
reasonable  cooperation  with Agent in its attempt to satisfy  any  requirements
under the Securities  Laws  applicable to the sale of the Pledged  Securities by
Agent.

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

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

                                       16
<PAGE>

      13. [RESERVED].

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

      15. Power of Attorney; Further Assurances.

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

                                       17
<PAGE>

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

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

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

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

      18.  Appointment of Agent.  The Secured  Parties hereby appoint  Midsummer
Investment  Ltd. to act as their agent  ("Midsummer" or "Agent") for purposes of
exercising  any and all rights and  remedies of the Secured  Parties  hereunder.
Such  appointment  shall  continue  until  revoked in  writing by a Majority  in
Interest,  at which  time a  Majority  in  Interest  shall  appoint a new Agent;
provided, that Midsummer may not be removed as Agent unless Midsummer shall then
hold less than $50,000 principal amount of Debentures.  The Agent shall have the
rights, responsibilities and immunities set forth in Annex B hereto.

                                       18
<PAGE>

      19. Miscellaneous.

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

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

            (c) This Agreement  constitutes the entire  agreement of the parties
with respect to the subject matter hereof and is intended to supersede all prior
negotiations,  understandings  and agreements  with respect  thereto.  Except as
specifically set forth in this Agreement,  no provision of this Agreement may be
modified or amended except by a written agreement specifically referring to this
Agreement  and  signed by the  Agent,  the  holders  of at least  75%  aggregate
principal  amount of  outstanding  Debentures  (which  holders  must include all
Qualified Purchasers (as defined in the Purchase Agreement)) and the Company.

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

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

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

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

                                       19
<PAGE>

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

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

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

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

                                       20
<PAGE>

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

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

            (n) This  Agreement  supersedes  and  replaces  any  prior  security
agreements  or  understandings  regarding  any of the  Collateral  entered  into
between the Company and any of the Secured Parties, including the Prior Security
Agreement.

                            [SIGNATURE PAGES FOLLOW]

                                       21
<PAGE>

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

                                                  WORLD WASTE TECHNOLOGIES, INC.

                                                  By: /s/ JOHN PIMENTEL
                                                    ---------------------------
                                                       Name: John Pimentel
                                                       Title: CEO

                                                  WORLD WASTE OF AMERICA, INC.

                                                  By: /s/ JOHN PIMENTEL
                                                    ---------------------------
                                                       Name: John Pimentel
                                                       Title: CEO

                                                  WORLD WASTE OF ANAHEIM, INC.

                                                  By: /s/ JOHN PIMENTEL
                                                    ---------------------------
                                                       Name: John Pimentel
                                                        Title: CEO

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       22
<PAGE>

                     [SIGNATURE PAGE OF HOLDERS TO WDWT SA]

Name of Investing Entity:
                         -------------------------------------------------------
Signature of Authorized Signatory of Investing Entity:
                                                      --------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       23
<PAGE>

                                   SCHEDULE A

Principal Place of Business of Debtors:

Locations Where Collateral is Located or Stored:

                                       24
<PAGE>

                                   SCHEDULE B

                                       25
<PAGE>

                                   SCHEDULE C

                                       26
<PAGE>

                                   SCHEDULE D

              Legal Names and Organizational Identification Numbers

                                       27
<PAGE>

                                   SCHEDULE E

                         Names; Mergers and Acquisitions

                                       28
<PAGE>

                                   SCHEDULE F

                              Intellectual Property

                                       29
<PAGE>

                                   SCHEDULE G

                                 Account Debtors

                                       30
<PAGE>

                                   SCHEDULE H

                               Pledged Securities

                                       31
<PAGE>

                                     ANNEX A
                                       to
                                    SECURITY
                                    AGREEMENT

                        FORM OF ADDITIONAL DEBTOR JOINDER

            Security Agreement dated as of [_____ ___, 200__ made by
                                 [-------------
        and its subsidiaries party thereto from time to time, as Debtors
                               to and in favor of
        the Secured Parties identified therein (the "Security Agreement")

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

      The undersigned hereby agrees that upon delivery of this Additional Debtor
Joinder to the Secured Parties referred to above,  the undersigned  shall (a) be
an Additional Debtor under the Security  Agreement,  (b) have all the rights and
obligations of the Debtors under the Security Agreement as fully and to the same
extent as if the undersigned was an original signatory thereto and (c) be deemed
to have made the  representations  and warranties set forth in Section 4 therein
as of the date of execution  and  delivery of this  Additional  Debtor  Joinder.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING,  THE UNDERSIGNED  SPECIFICALLY
GRANTS TO THE  SECURED  PARTIES A SECURITY  INTEREST IN THE  COLLATERAL  AS MORE
FULLY SET FORTH IN THE SECURITY  AGREEMENT  AND  ACKNOWLEDGES  AND AGREES TO THE
WAIVER OF JURY TRIAL PROVISIONS SET FORTH THEREIN.

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

      An executed copy of this Joinder shall be delivered to the Agent on behalf
of the  Secured  Parties,  and the  Secured  Parties may rely on the matters set
forth  herein on or after the date hereof.  This Joinder  shall not be modified,
amended or  terminated  without the prior  written  consent of the Agent and the
Qualified Purchasers (as defined in the Purchase Agreement).

                                       32
<PAGE>

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

                                             [Name of Additional Debtor]

                                             By:_______________________________

                                             Name:_____________________________
                                             Title:____________________________

                                             Address:

Dated:

                                       33
<PAGE>

                                     ANNEX B
                                       to
                                    SECURITY
                                    AGREEMENT

                                    THE AGENT

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

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

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

                                       34
<PAGE>

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

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

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

                                       35
<PAGE>

      7. Resignation by the Agent.

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

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

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

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

                                       36
<PAGE>SUBSIDIARY GUARANTEE

      SUBSIDIARY  GUARANTEE,  dated as of February 10, 2006 (this  "Guarantee"),
made by each of the signatories  hereto (together with any other entity that may
become a party hereto as provided herein,  (the  "Guarantors"),  in favor of the
purchasers  signatory (the  "Purchasers")  to that certain  Securities  Purchase
Agreement,  dated as of December 27, 2005, between World Waste  Technologies,  a
California  corporation  (the  "Company")  and  the  Purchasers  (the  "Purchase
Agreement").

                              W I T N E S S E T H:

      WHEREAS,  pursuant to the  Purchase  Agreement,  the Company has agreed to
sell and issue to the  Purchasers,  and the  Purchasers  have agreed to purchase
from the Company the Company's  Senior  Secured  Debentures,  due August 7, 2007
(the "Debentures"), subject to the terms and conditions set forth therein; and

      WHEREAS, each Guarantor will directly benefit from the extension of credit
to the Company represented by the issuance of the Debentures; and

      NOW,  THEREFORE,  in  consideration  of the  premises  and to  induce  the
Purchasers  to  enter  into  the  Purchase   Agreement  and  to  carry  out  the
transactions  contemplated  thereby,  each  Guarantor  hereby  agrees  with  the
Purchasers as follows:

      1.  Definitions.  Unless  otherwise  defined herein,  terms defined in the
Purchase  Agreement and used herein shall have the meanings given to them in the
Purchase  Agreement.  The words "hereof," "herein," "hereto" and "hereunder" and
words  of  similar  import  when  used in this  Guarantee  shall  refer  to this
Guarantee as a whole and not to any particular provision of this Guarantee,  and
Section  and  Schedule   references  are  to  this  Guarantee  unless  otherwise
specified.  The  meanings  given  to  terms  defined  herein  shall  be  equally
applicable  to both the singular and plural forms of such terms.  The  following
terms shall have the following meanings:

      "Guarantee" means this Subsidiary  Guarantee,  as the same may be amended,
supplemented or otherwise modified from time to time.

      "Obligations"  means  the  collective  reference  to all  obligations  and
undertakings of the Company of whatever nature, monetary or otherwise, under the
Debentures,  the Purchase Agreement,  the Security Agreement,  the Warrants, the
Registration  Rights  Agreement  or any other future  agreement  or  obligations
undertaken  by the  Company  to the  Purchasers,  together  with all  reasonable
attorneys'  fees,  disbursements  and all other costs and expenses of collection
incurred  by  Purchasers  in  enforcing  any of  such  Obligations  and/or  this
Guarantee.

<PAGE>

      2. Guarantee.

            (a) Guarantee.

                  (i)   The   Guarantors   hereby,    jointly   and   severally,
unconditionally   and  irrevocably,   guarantee  to  the  Purchasers  and  their
respective  successors,  indorsees,  transferees  and  assigns,  the  prompt and
complete  payment and performance by the Company when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations.

                  (ii) Anything herein or in any other  Transaction  Document to
the contrary notwithstanding,  the maximum liability of each Guarantor hereunder
and under the other  Transaction  Documents  shall in no event exceed the amount
which can be guaranteed by such  Guarantor  under  applicable  federal and state
laws,  including  laws  relating  to  the  insolvency  of  debtors,   fraudulent
conveyance  or  transfer or laws  affecting  the rights of  creditors  generally
(after giving effect to the right of contribution established in Section 2(b)).

                  (iii) Each Guarantor  agrees that the  Obligations  may at any
time and from time to time exceed the amount of the liability of such  Guarantor
hereunder  without  impairing  the  guarantee  contained  in this  Section  2 or
affecting the rights and remedies of the Purchasers hereunder.

                  (iv) The Guarantee contained in this Section 2 shall remain in
full force and effect  until all the  Obligations  and the  obligations  of each
Guarantor  under the  Guarantee  contained  in this  Section  2 shall  have been
satisfied by payment in full.

                  (v) No payment made by the Company, any of the Guarantors, any
other  guarantor or any other Person or received or collected by the  Purchasers
from the Company, any of the Guarantors, any other guarantor or any other Person
by virtue  of any  action or  proceeding  or any  set-off  or  appropriation  or
application  at any time or from time to time in  reduction  of or in payment of
the Obligations shall be deemed to modify,  reduce,  release or otherwise affect
the liability of any Guarantor  hereunder which shall,  notwithstanding any such
payment  (other  than any  payment  made by such  Guarantor  in  respect  of the
Obligations or any payment  received or collected from such Guarantor in respect
of the  Obligations),  remain  liable  for  the  Obligations  up to the  maximum
liability of such Guarantor hereunder until the Obligations are paid in full.

                  (vi)   Notwithstanding   anything  to  the  contrary  in  this
Agreement,  with respect to any defaulted non-monetary  Obligations the specific
performance  of which by the  Guarantors is not  reasonably  possible  (e.g. the
issuance of the Company's Common Stock), the Guarantors shall only be liable for
making the  Purchasers  whole on a monetary  basis for the Company's  failure to
perform such Obligations in accordance with the Transaction Documents.

            (b) Right of Contribution.  Each Guarantor hereby agrees that to the
extent that a Guarantor shall have paid more than its proportionate share of any
payment made  hereunder,  such  Guarantor  shall be entitled to seek and receive
contribution  from and against any other Guarantor  hereunder which has not paid
its proportionate share of such payment.  Each Guarantor's right of contribution
shall be subject to the terms and  conditions of Section 2(c). The provisions of
this Section 2(b) shall in no respect limit the  obligations  and liabilities of
any Guarantor to the  Purchasers,  and each Guarantor shall remain liable to the
Purchasers for the full amount guaranteed by such Guarantor hereunder.

                                       2
<PAGE>

            (c)  No  Subrogation.   Notwithstanding  any  payment  made  by  any
Guarantor  hereunder or any set-off or  application of funds of any Guarantor by
the  Purchasers,  no Guarantor  shall be entitled to be subrogated to any of the
rights of the  Purchasers  against  the  Company or any other  Guarantor  or any
collateral  security or guarantee or right of offset held by the  Purchasers for
the payment of the  Obligations,  nor shall any Guarantor seek or be entitled to
seek any contribution or  reimbursement  from the Company or any other Guarantor
in respect of payments made by such Guarantor hereunder, until all amounts owing
to the Purchasers by the Company on account of the Obligations are paid in full.
If any amount  shall be paid to any  Guarantor  on  account of such  subrogation
rights at any time when all of the Obligations shall not have been paid in full,
such  amount  shall  be held by such  Guarantor  in  trust  for the  Purchasers,
segregated from other funds of such Guarantor, and shall, forthwith upon receipt
by such  Guarantor,  be turned over to the Purchasers in the exact form received
by such  Guarantor  (duly  indorsed  by such  Guarantor  to the  Purchasers,  if
required), to be applied against the Obligations,  whether matured or unmatured,
in such order as the Purchasers may determine.

            (d) Amendments, Etc. With Respect to the Obligations. Each Guarantor
shall remain obligated hereunder  notwithstanding  that, without any reservation
of rights  against any Guarantor and without  notice to or further assent by any
Guarantor,  any  demand  for  payment  of  any of the  Obligations  made  by the
Purchasers  may  be  rescinded  by the  Purchasers  and  any of the  Obligations
continued, and the Obligations, or the liability of any other Person upon or for
any part thereof,  or any collateral  security or guarantee therefor or right of
offset with respect  thereto,  may,  from time to time,  in whole or in part, be
renewed,  extended,  amended,  modified,   accelerated,   compromised,   waived,
surrendered or released by the  Purchasers,  and the Purchase  Agreement and the
other  Transaction  Documents and any other documents  executed and delivered in
connection therewith may be amended,  modified,  supplemented or terminated,  in
whole or in part, as the  Purchasers  may deem  advisable from time to time, and
any  collateral  security,  guarantee or right of offset at any time held by the
Purchasers for the payment of the  Obligations may be sold,  exchanged,  waived,
surrendered  or released.  The  Purchasers  shall have no obligation to protect,
secure,  perfect or insure any Lien at any time held by them as security for the
Obligations  or for the  guarantee  contained  in this Section 2 or any property
subject thereto.

            (e) Guarantee Absolute and Unconditional.  Each Guarantor waives any
and all  notice of the  creation,  renewal,  extension  or accrual of any of the
Obligations  and  notice  of or proof of  reliance  by the  Purchasers  upon the
guarantee  contained in this Section 2 or acceptance of the guarantee  contained
in this  Section 2; the  Obligations,  and any of them,  shall  conclusively  be
deemed to have been  created,  contracted  or  incurred,  or renewed,  extended,
amended or waived,  in reliance upon the guarantee  contained in this Section 2;
and all dealings between the Company and any of the Guarantors, on the one hand,
and the Purchasers,  on the other hand, likewise shall be conclusively  presumed
to have been had or consummated in reliance upon the guarantee contained in this
Section 2. Each  Guarantor  waives to the  extent  permitted  by law  diligence,
presentment,  protest, demand for payment and notice of default or nonpayment to
or upon the Company or any of the  Guarantors  with respect to the  Obligations.
Each  Guarantor  understands  and agrees that the  guarantee  contained  in this
Section  2 shall  be  construed  as a  continuing,  absolute  and  unconditional
guarantee of payment without regard to (a) the validity or enforceability of the
Purchase Agreement or any other Transaction Document,  any of the Obligations or
any other  collateral  security  therefor or  guarantee  or right of offset with
respect thereto at any time or from time to time held by the Purchasers, (b) any
defense, set-off or counterclaim (other than a defense of payment or performance
or fraud or misconduct by  Purchasers)  which may at any time be available to or
be asserted by the Company or any other Person  against the  Purchasers,  or (c)
any other circumstance whatsoever (with or without notice to or knowledge of the
Company  or  such  Guarantor)  which  constitutes,  or  might  be  construed  to
constitute,  an equitable or legal discharge of the Company for the Obligations,
or of such  Guarantor  under  the  guarantee  contained  in this  Section  2, in
bankruptcy  or in any other  instance.  When  making  any  demand  hereunder  or
otherwise pursuing its rights and remedies hereunder against any Guarantor,  the
Purchasers may, but shall be under no obligation to, make a similar demand on or
otherwise  pursue such rights and remedies as they may have against the Company,
any other  Guarantor or any other Person or against any  collateral  security or
guarantee for the Obligations or any right of offset with respect  thereto,  and
any  failure by the  Purchasers  to make any such  demand,  to pursue such other
rights or  remedies  or to collect  any  payments  from the  Company,  any other
Guarantor or any other Person or to realize upon any such collateral security or
guarantee  or to  exercise  any such  right of  offset,  or any  release  of the
Company,  any  other  Guarantor  or any  other  Person  or any  such  collateral
security,  guarantee or right of offset,  shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and
remedies,  whether  express,  implied or  available  as a matter of law,  of the
Purchasers  against any  Guarantor.  For the  purposes  hereof,  "demand"  shall
include the commencement and continuance of any legal proceedings.

                                       3
<PAGE>

            (f) Reinstatement.  The guarantee  contained in this Section 2 shall
continue to be effective,  or be reinstated,  as the case may be, if at any time
payment,  or any part thereof,  of any of the  Obligations  is rescinded or must
otherwise  be  restored  or  returned  by the  Purchasers  upon the  insolvency,
bankruptcy,  dissolution,  liquidation or  reorganization  of the Company or any
Guarantor,  or upon or as a result of the appointment of a receiver,  intervenor
or  conservator  of, or trustee  or  similar  officer  for,  the  Company or any
Guarantor or any substantial part of its property,  or otherwise,  all as though
such payments had not been made.

            (g)  Payments.   Each  Guarantor  hereby  guarantees  that  payments
hereunder will be paid to the Purchasers without set-off or counterclaim in U.S.
dollars at the address set forth or referred to in the Purchase Agreement.

      3.  Representations  and  Warranties.   Except  as  set  forth  under  the
corresponding  section of the disclosure  schedules  delivered to the Purchasers
concurrently  herewith (the "Disclosure  Schedules") which Disclosure  Schedules
shall be  deemed a part  hereof,  each  Guarantor  hereby  makes  the  following
representations and warranties to Purchasers as of the date hereof:

            (a) Organization and Qualification.  The Guarantor is a corporation,
duly  incorporated,  validly existing and in good standing under the laws of the
applicable  jurisdiction  set forth on Schedule 1, with the requisite  corporate
power and authority to own and use its properties and assets and to carry on its
business as currently  conducted.  The Guarantor has no subsidiaries  other than
those identified as such on the Disclosure  Schedules to the Purchase Agreement.
The  Guarantor is duly  qualified  to do business  and is in good  standing as a
foreign  corporation  in each  jurisdiction  in which the nature of the business
conducted or property  owned by it makes such  qualification  necessary,  except
where the failure to be so  qualified or in good  standing,  as the case may be,
could not, individually or in the aggregate,  (x) adversely affect the legality,
validity or enforceability of any of this Guaranty in any material respect,  (y)
have a material adverse effect on the results of operations,  assets, prospects,
or financial  condition of the Guarantor or (z) adversely impair in any material
respect  the  Guarantor's  ability  to  perform  fully  on a  timely  basis  its
obligations under this Guaranty (a "Material Adverse Effect").

                                       4
<PAGE>

            (b)  Authorization;  Enforcement.  The  Guarantor  has the requisite
corporate  power and authority to enter into and to consummate the  transactions
contemplated  by this  Guaranty,  and  otherwise  to carry  out its  obligations
hereunder.  The execution and delivery of this Guaranty by the Guarantor and the
consummation  by it of the  transactions  contemplated  hereby  have  been  duly
authorized by all requisite corporate action on the part of the Guarantor.  This
Guaranty has been duly executed and  delivered by the Guarantor and  constitutes
the valid and  binding  obligation  of the  Guarantor  enforceable  against  the
Guarantor in accordance  with its terms,  except as such  enforceability  may be
limited  by  applicable  bankruptcy,  insolvency,  reorganization,   moratorium,
liquidation or similar laws relating to, or affecting  generally the enforcement
of, creditors'  rights and remedies or by other equitable  principles of general
application.

            (c) No Conflicts.  The execution,  delivery and  performance of this
Guaranty  by  the  Guarantor  and  the  consummation  by  the  Guarantor  of the
transactions  contemplated  thereby  do not and  will not (i)  conflict  with or
violate any provision of its  Certificate  of  Incorporation  or By-laws or (ii)
conflict  with,  constitute a default (or an event which with notice or lapse of
time or both  would  become a  default)  under,  or give to others any rights of
termination,   amendment,   acceleration  or  cancellation  of,  any  agreement,
indenture or instrument to which the Guarantor is a party,  or (iii) result in a
violation of any law, rule, regulation,  order, judgment,  injunction, decree or
other restriction of any court or governmental  authority to which the Guarantor
is subject (including Federal and state securities laws and regulations),  or by
which any  material  property or asset of the  Guarantor  is bound or  affected,
except in the case of each of clauses (ii) and (iii), such conflicts,  defaults,
terminations,  amendments, accelerations,  cancellations and violations as could
not,  individually  or in the  aggregate,  have or result in a Material  Adverse
Effect. The business of the Guarantor is not being conducted in violation of any
law,  ordinance  or  regulation  of  any  governmental  authority,   except  for
violations  which,  individually  or in the  aggregate,  do not have a  Material
Adverse Effect.

            (d) Consents and Approvals.  The Guarantor is not required to obtain
any  consent,  waiver,  authorization  or  order  of,  or  make  any  filing  or
registration with, any court or other federal,  state,  local,  foreign or other
governmental  authority  or other  person  in  connection  with  the  execution,
delivery and performance by the Guarantor of this Guaranty.

            (e) Purchase  Agreement.  The  representations and warranties of the
Company set forth in the Purchase  Agreement  as they relate to such  Guarantor,
each of which is hereby incorporated  herein by reference,  are true and correct
as of each time such  representations  are  deemed to be made  pursuant  to such
Purchase Agreement, and the Purchasers shall be entitled to rely on each of them
as if they were fully set forth herein,  provided,  that each  reference in each
such  representation  and warranty to the  Company's  knowledge  shall,  for the
purposes  of this  Section 3, be deemed to be a  reference  to such  Guarantor's
knowledge.

                                       5
<PAGE>

            (f) Foreign Law.  Each  Guarantor  has  consulted  with  appropriate
foreign legal counsel with respect to any of the above representations for which
non-U.S.  law is applicable.  Such foreign  counsel have advised each applicable
Guarantor   that  such  counsel  knows  of  no  reason  why  any  of  the  above
representations  would  not be true and  accurate.  Such  foreign  counsel  were
provided with copies of this Subsidiary Guarantee and the Transaction  Documents
prior to rendering their advice.

      4. Covenants.

            (a) Each Guarantor  covenants and agrees with the  Purchasers  that,
from and after the date of this Guarantee until the Obligations  shall have been
paid in full,  such Guarantor shall take,  and/or shall refrain from taking,  as
the case may be, each  commercially  reasonable  action that is  necessary to be
taken or not taken, as the case may be, so that no Event of Default is caused by
the  failure to take such  action or to refrain  from taking such action by such
Guarantor.

            (b)  So  long  as  any  of the  Obligations  are  outstanding,  each
Guarantor  will  not  directly  or  indirectly  on or  after  the  date  of this
Guarantee:

                  (i) other  than  Permitted  Indebtedness  (as  defined  in the
Debentures), enter into, create, incur, assume, guarantee or suffer to exist any
indebtedness  for borrowed  money of any kind,  including  but not limited to, a
guarantee,  on or with  respect  to any of its  property  or assets now owned or
hereafter acquired or any interest therein or any income or profits therefrom;

                  (ii)  other   than   Permitted   Liens  (as   defined  in  the
Debentures),  enter into, create,  incur, assume or suffer to exist any liens of
any kind,  on or with  respect  to any of its  property  or assets  now owned or
hereafter acquired or any interest therein or any income or profits therefrom;

                  (iii) amend its certificate of incorporation,  bylaws or other
charter  documents so as to materially  and  adversely  affect any rights of the
Purchasers;

                  (iv) repay,  repurchase  or  otherwise  acquire  shares of its
Common Stock or Common Stock  Equivalents  other than  repurchases  of shares of
Common Stock or other equity  securities of departing  officers and directors of
the  Company;  provided  such  repurchases  shall not  exceed  $130,000,  in the
aggregate, for all officers and directors during the time that this Agreement is
in effect;

                  (v)  enter  into  any  agreement  with  respect  to any of the
foregoing; or

                  (vi) pay cash  dividends or cash  distributions  on any equity
securities of the Company.

                                       6
<PAGE>

      5. Miscellaneous.

            (a)  Amendments in Writing.  None of the terms or provisions of this
Guarantee may be waived,  amended,  supplemented or otherwise modified except in
writing by the Qualified Purchasers.

            (b)  Notices.  All  notices,  requests  and  demands  to or upon the
Purchasers or any Guarantor  hereunder  shall be effected in the manner provided
for in the Purchase Agreement;  provided that any such notice, request or demand
to or upon any  Guarantor  shall be  addressed  to such  Guarantor at its notice
address set forth on Schedule 5(b).

            (c) No  Waiver  By  Course  Of  Conduct;  Cumulative  Remedies.  The
Purchasers  shall not by any act  (except by a written  instrument  pursuant  to
Section 5(a)), delay, indulgence, omission or otherwise be deemed to have waived
any right or remedy  hereunder or to have  acquiesced  in any default  under the
Transaction Documents or Event of Default. No failure to exercise, nor any delay
in  exercising,  on the part of the  Purchasers,  any right,  power or privilege
hereunder  shall operate as a waiver thereof.  No single or partial  exercise of
any right,  power or  privilege  hereunder  shall  preclude any other or further
exercise  thereof or the  exercise of any other  right,  power or  privilege.  A
waiver by the  Purchasers  of any right or remedy  hereunder on any one occasion
shall not be  construed  as a bar to any right or  remedy  which the  Purchasers
would  otherwise  have on any future  occasion.  The rights and remedies  herein
provided are cumulative,  may be exercised  singly or  concurrently  and are not
exclusive of any other rights or remedies provided by law.

            (d) Enforcement Expenses; Indemnification.

                  (i) Each Guarantor  agrees to pay, or reimburse the Purchasers
for, all its costs and expenses  incurred in collecting  against such  Guarantor
under the guarantee  contained in Section 2 or otherwise enforcing or preserving
any rights under this  Guarantee  and the other  Transaction  Documents to which
such Guarantor is a party,  including,  without limitation,  the reasonable fees
and disbursements of counsel to the Purchasers.

                  (ii) Each Guarantor  agrees to pay, and to save the Purchasers
harmless  from, any and all  liabilities  with respect to, or resulting from any
delay in paying,  any and all stamp,  excise,  sales or other taxes which may be
payable or determined to be payable in connection  with any of the  transactions
contemplated by this Guarantee.

                  (iii) Each Guarantor agrees to pay, and to save the Purchasers
harmless from, any and all liabilities, obligations, losses, damages, penalties,
actions,  judgments,  suits,  costs,  expenses or  disbursements  of any kind or
nature  whatsoever  with  respect  to  the  execution,  delivery,   enforcement,
performance and administration of this Guarantee to the extent the Company would
be required to do so pursuant to the Purchase Agreement.

                  (iv) The agreements in this Section shall survive repayment of
the Obligations  and all other amounts payable under the Purchase  Agreement and
the other Transaction Documents.

                                       7
<PAGE>

            (e) Successor and Assigns.  This Guarantee shall be binding upon the
successors  and assigns of each  Guarantor and shall inure to the benefit of the
Purchasers  and  their  respective  successors  and  assigns;  provided  that no
Guarantor  may assign,  transfer or  delegate  any of its rights or  obligations
under  this  Guarantee  without  the  prior  written  consent  of the  Qualified
Purchasers.

            (f)  Set-Off.  Each  Guarantor  hereby  irrevocably  authorizes  the
Purchasers at any time and from time to time while an Event of Default under any
of the  Transaction  Documents  shall have occurred and be  continuing,  without
notice to such Guarantor or any other Guarantor, any such notice being expressly
waived by each  Guarantor,  to  set-off  and  appropriate  and apply any and all
deposits, credits, indebtedness or claims, in any currency, in each case whether
direct or indirect,  absolute or contingent,  matured or unmatured,  at any time
held or owing by the  Purchasers  to or for the  credit or the  account  of such
Guarantor,  or any part  thereof in such  amounts as the  Purchasers  may elect,
against and on account of the  obligations  and liabilities of such Guarantor to
the  Purchasers  hereunder  and claims of every  nature and  description  of the
Purchasers against such Guarantor,  in any currency,  whether arising hereunder,
under the Purchase Agreement,  any other Transaction  Document or otherwise,  as
the Purchasers may elect, whether or not the Purchasers have made any demand for
payment and although such obligations,  liabilities and claims may be contingent
or unmatured.  The Purchasers  shall notify such Guarantor  promptly of any such
set-off and the  application  made by the  Purchasers  of the proceeds  thereof,
provided  that the failure to give such notice  shall not affect the validity of
such set-off and  application.  The rights of the Purchasers  under this Section
are in addition to other rights and  remedies  (including,  without  limitation,
other rights of set-off) which the Purchasers may have.

            (g)  Counterparts.  This Guarantee may be executed by one or more of
the parties to this Guarantee on any number of separate counterparts  (including
by telecopy),  and all of said  counterparts  taken  together shall be deemed to
constitute one and the same instrument.

            (h)   Severability.   Any  provision  of  this  Guarantee  which  is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

            (i) Section  Headings.  The Section  headings used in this Guarantee
are for  convenience  of reference  only and are not to affect the  construction
hereof or be taken into consideration in the interpretation hereof.

            (j) Integration.  This Guarantee and the other Transaction Documents
represent the agreement of the Guarantors and the Purchasers with respect to the
subject  matter  hereof and thereof,  and there are no  promises,  undertakings,
representations  or  warranties  by the  Purchasers  relative to subject  matter
hereof and thereof not expressly set forth or referred to herein or in the other
Transaction Documents.

            (k)  Governing  Law.  THIS  GUARANTEE  SHALL  BE  GOVERNED  BY,  AND
CONSTRUED AND  INTERPRETED IN ACCORDANCE  WITH, THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAWS.

                                       8
<PAGE>

            (l) Submission to  Jurisdictional;  Waiver.  Each  Guarantor  hereby
irrevocably and unconditionally:

                  (i) submits for itself and its property in any legal action or
proceeding  relating to this  Guarantee and the other  Transaction  Documents to
which it is a party,  or for  recognition  and  enforcement  of any  judgment in
respect thereof, to the non-exclusive  general jurisdiction of the Courts of the
State of New York,  located  in New York  County,  New York,  the  courts of the
United  States of America for the Southern  District of New York,  and appellate
courts from any thereof;

                  (ii)  consents  that  any such  action  or  proceeding  may be
brought in such  courts and waives any  objection  that it may now or  hereafter
have to the venue of any such  action or  proceeding  in any such  court or that
such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

                  (iii)  agrees  that  service of process in any such  action or
proceeding  may be effected by mailing a copy thereof by registered or certified
mail (or any  substantially  similar  form of mail),  postage  prepaid,  to such
Guarantor at its address referred to in the Purchase  Agreement or at such other
address of which the Purchasers shall have been notified pursuant thereto;

                  (iv)  agrees that  nothing  herein  shall  affect the right to
effect  service of process in any other  manner  permitted by law or shall limit
the right to sue in any other jurisdiction; and

                  (v) waives,  to the maximum  extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding referred
to in this Section any special, exemplary, punitive or consequential damages.

            (m) Acknowledgements. Each Guarantor hereby acknowledges that:

                  (i)  it has  been  advised  by  counsel  in  the  negotiation,
execution and delivery of this Guarantee and the other Transaction  Documents to
which it is a party;

                  (ii) the  Purchasers  have no fiduciary  relationship  with or
duty to any Guarantor arising out of or in connection with this Guarantee or any
of the other Transaction Documents, and the relationship between the Guarantors,
on the one hand, and the Purchasers,  on the other hand, in connection  herewith
or therewith is solely that of debtor and creditor; and

                  (iii) no joint  venture  is  created  hereby  or by the  other
Transaction  Documents  or  otherwise  exists  by  virtue  of  the  transactions
contemplated hereby among the Guarantors and the Purchasers.

            (n)  Additional  Guarantors.  The  Company  shall  cause each of its
subsidiaries  formed or acquired on or subsequent to the date hereof to become a
Guarantor  for all purposes of this  Guarantee by executing  and  delivering  an
Assumption Agreement in the form of Annex 1 hereto.

                                       9
<PAGE>

            (o) Release of  Guarantors.  Subject to Section 2.6, each  Guarantor
will be released from all liability hereunder concurrently with the repayment in
full of all amounts owed under the Purchase  Agreement,  the  Debentures and the
other Transaction Documents.

            (p) Seniority.  The Obligations of each of the Guarantors  hereunder
rank  senior  in  priority  to any  other  unsecured  Debt  (as  defined  in the
Debentures) of such Guarantor.

            (q) Waiver of Jury Trial.  EACH  GUARANTOR AND, BY ACCEPTANCE OF THE
BENEFITS HEREOF, THE PURCHASERS,  HEREBY IRREVOCABLY AND  UNCONDITIONALLY  WAIVE
TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING  RELATING TO THIS  GUARANTEE AND
FOR ANY COUNTERCLAIM THEREIN.

      IN WITNESS  WHEREOF,  each of the undersigned has caused this Guarantee to
be duly executed and delivered as of the date first above written.

                                              By:_______________________________
                                                   Name:
                                                   Title:

                                       10
<PAGE>

                                   SCHEDULE 1

                                   GUARANTORS

         The following are the names, notice addresses and jurisdiction of
organization of each Guarantor.

<TABLE>
<CAPTION>
                                    JURISDICTION OF             OWNERSHIP
                                    INCORPORATION                PERCENTAGE
                                   -------------------------    ---------------------------------
<S>                                <C>                          <C>
World Waste of California, Inc.    California                   100% owned by the Company
World Waste of Anaheim, Inc.       California                   100% owned by World Waste of
                                                                Anaheim, Inc.
</TABLE>

                                       11
<PAGE>

                                   Annex 1 to
                              SUBSIDIARY GUARANTEE

      ASSUMPTION   AGREEMENT,   dated   as  of   ____   __,   ______   made   by
______________________________,  a  ______________  corporation (the "Additional
Guarantor"),  in favor of the  Purchasers  pursuant  to the  Purchase  Agreement
referred  to below.  All  capitalized  terms not defined  herein  shall have the
meaning ascribed to them in such Purchase Agreement.

                              W I T N E S S E T H :

      WHEREAS,  [COMPANY],  a  Delaware  corporation  (the  "Company")  and  the
Purchasers  have  entered  into a  Securities  Purchase  Agreement,  dated as of
December ___, 2005 (as amended,  supplemented or otherwise modified from time to
time, the "Purchase Agreement");

      WHEREAS,  in connection with the Purchase  Agreement,  the Company and its
Subsidiaries  (other  than  the  Additional  Guarantor)  have  entered  into the
Subsidiary  Guarantee,  dated as of  [______________  ____,  200__ (as  amended,
supplemented or otherwise  modified from time to time, the "Guarantee") in favor
of the Purchasers;

      WHEREAS,  the  Purchase  Agreement  requires the  Additional  Guarantor to
become a party to the Guarantee; and

      WHEREAS,  the Additional  Guarantor has agreed to execute and deliver this
Assumption Agreement in order to become a party to the Guarantee;

                          NOW, THEREFORE, IT IS AGREED:

      1. Guarantee.  By executing and delivering this Assumption Agreement,  the
Additional  Guarantor,  as provided  in Section  5.14 of the  Guarantee,  hereby
becomes a party to the Guarantee as a Guarantor  thereunder  with the same force
and effect as if originally  named therein as a Guarantor and,  without limiting
the generality of the foregoing,  hereby  expressly  assumes all obligations and
liabilities of a Guarantor  thereunder.  The  information set forth in Annex 1-A
hereto  is  hereby  added to the  information  set  forth in  Schedule  1 to the
Guarantee.  The Additional Guarantor hereby represents and warrants that each of
the  representations  and warranties  contained in Section 3 of the Guarantee is
true and  correct  on and as the date  hereof  as to such  Additional  Guarantor
(after giving effect to this Assumption  Agreement) as if made on and as of such
date.

      2.  Governing  Law. THIS  ASSUMPTION  AGREEMENT  SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                                       12
<PAGE>

      IN WITNESS WHEREOF,  the undersigned has caused this Assumption  Agreement
to be duly executed and delivered as of the date first above written.

                                              [ADDITIONAL GUARANTOR]

                                              By:_____________________________
                                                   Name:
                                                   Title:

                                       13

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