Document:

EXHIBIT
      10.5

    

    FORM
      OF LEGAL OPINION

    

    [List
      of
      Purchasers]

    

    Ladies
      and Gentlemen:

    

    This
      opinion is being delivered to you pursuant to Section 2.2(a)(ii) of the
      Securities Purchase Agreement dated as of January 17, 2006 (the “Purchase
      Agreement”), by and among Solomon Technologies, Inc., a Delaware corporation
      (the “Company”) and the purchasers identified on the signature pages thereto
      (the “Purchasers”) pursuant to which the Company has agreed to issue and sell to
      the Purchasers up to $6,000,000 worth of Variable
      Rate Self-Liquidating Senior Secured Convertible Debentures (the “Debentures”)
and
      Warrants (the “Warrants”) to purchase common stock of the Company in the amounts
      set forth on Schedule I to the Purchase Agreement.
      Capitalized terms used herein that are not defined herein shall have the
      respective meanings set forth in the Purchase Agreement. The Schedules referred
      to herein refer to the Disclosure Schedules to the Purchase Agreement, which
      have been delivered by the Company to the Investors as of the date of the
      Closing. 

    

    We
      have
      acted as counsel to the Company in connection with the Transaction Documents
      (defined below) and the transactions contemplated thereby. We have examined
      originals or copies, certified or otherwise identified to our satisfaction,
      of
      the Transaction Documents. In addition, subject to the specific limitations
      and
      qualifications set forth below, we have examined originals or copies, certified
      or otherwise identified to our satisfaction, of such records, agreements,
      instruments and other documents, and have made such other investigations, as
      we
      have deemed relevant and necessary as a basis for the opinions hereinafter
      set
      forth.

    

    For
      the
      purposes hereof, we have assumed, with your permission and without independent
      verification of any kind: (a) that the signatures of persons signing all
      documents in connection with which this opinion is rendered are genuine and
      authorized; (b) the legal capacity of all natural persons; (c) that all
      documents submitted to us as originals or duplicate originals are authentic;
      (d)
      that all documents submitted to us as copies, whether certified or not, conform
      to authentic original documents; (e) that there has not been any mutual mistake
      or misunderstanding, fraud, duress, or undue influence; (f) that there are
      no
      agreements or understandings among the parties, written or oral, and there
      is no
      usage of trade or course of prior dealing among the parties that would, in
      either case, define, supplement, or qualify the terms of the Purchase Agreement,
      the Debentures, Warrants, Registration Rights Agreement, Security Agreement,
      Redemption and Conversion Agreement and Escrow Agreement (collectively, the
      “Transaction Documents”); (g) that the contracts, agreements, or
      instruments to which the Company is a party or by which its properties are
      bound
      other than the Transaction Documents will be enforced as written; (h) that
      all parties to the Transaction Documents other than the Company and the Escrow
      Agent (individually, an “Other Party” and collectively, the “Other Parties”)
      will act in accordance with, and will refrain from taking any action that is
      forbidden by, the Transaction Documents; (i) that each of the Other Parties
      and
      any agent acting for any of them in connection with the transactions
      contemplated by the Transaction Documents has acted in good faith and without
      notice of any defense against the enforcement of any rights created by the
      Transaction Documents; and (j) that the constitutionality or validity of a
      relevant statute, rule, or regulation is not in issue. 

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    We
      have
      relied exclusively upon the representations of the Company contained in the
      Transaction Documents and in an officers’ certificate (insofar as they relate to
      matters of fact) and we have not, except as specifically noted, made any
      independent review or investigation of facts relating to the Company. Without
      limiting the generality of the foregoing, we have not made any independent
      review or investigation in connection with this opinion of the existence of
      any
      agreement, instrument, lease, contract, indenture, obligation, commitment,
      document or understanding to which the Company or any of its properties or
      assets may be bound, the existence of any litigation, action, suit, claim,
      proceeding or investigation pending or threatened against the Company or any
      basis therefor, or of the consideration received by the Company in connection
      with the issuance of the Company’s issued and outstanding capital stock. We have
      made no docket searches in any jurisdiction to determine the existence of any
      litigation, action, suit, claim, proceeding or investigation pending against
      the
      Company.

    

    In
      rendering the opinions expressed below, we have assumed, with your permission
      and without any independent investigation or verification of any kind, that:
      (i)
      each of the Other Parties that is not a natural person has been duly organized
      and is validly existing and in good standing under the laws of its jurisdiction
      of organization and of each other jurisdiction in which the conduct of its
      business or the ownership of its property makes such qualification necessary;
      (ii) each of the Other Parties has full power and authority to execute, deliver
      and perform the Transaction Documents to which it is a party; (iii) the
      execution, delivery and performance of the Transaction Documents to which the
      Other Parties are parties by each of the Other Parties that is not a natural
      person have been duly authorized by all requisite corporate or other action
      on
      its part; (iv) the Transaction Documents to which the Other Parties are parties
      have been duly executed and delivered by each applicable Other Party; and (v)
      the execution, delivery and performance of the Transaction Documents to which
      the Other Parties are parties do not and will not violate the by-laws, articles
      of incorporation or other organizational documents of any of the Other Parties
      that is not a natural person. We have further assumed, with your permission
      and
      without any independent investigation or verification of any kind, that each
      of
      the Transaction Documents constitute a valid and legally binding obligation
      of
      each party thereto other than the Company.

    

    Based
      upon the foregoing, and subject to the limitations and exceptions set forth
      herein, we are of the opinion that:

    

    1.  The
      Company is a corporation validly existing and in good standing under the laws
      of
      the State of Delaware. The Company is duly qualified to transact business and
      is
      in good standing as a foreign corporation in the State of New
      York.

    
      
        
        

      

      
        2

        
          

        

      

       

    

     

    2.  Except
      as
      set forth on Schedule 3.1(b) to the Purchase Agreement, each of the following
      subsidiaries of the Company (the “Subsidiaries”)
      is a
      corporation or limited liability company in good standing under the laws of
      its
      state of organization, as noted: Technipower LLC, a Delaware limited liability
      company; Town Creek Industries, Inc., a Maryland corporation.

     

    3.  The
      Company has the corporate power to own or hold under lease the property it
      purports to own or hold under lease, to carry on its business as now conducted,
      to enter into the Transaction Documents, and to perform its obligations under
      the Transaction Documents, to issue, sell and deliver the Debentures,
      the Warrants and the Underlying Shares at
      the
      Closing and to consummate the transactions contemplated by the Transaction
      Documents.

     

    4.  The
      execution, delivery and performance of the Transaction Documents and the
      consummation of the transactions contemplated thereby (including
      the issuance and sale of the Debentures,
      the Warrants and the Underlying Shares)
      have
      been
      duly authorized by all necessary corporate and stockholder action of
      the
      Company.
The
      Transaction Documents have been duly executed and delivered by the Company
      and
      constitute valid and binding obligations of the Company, enforceable against
      the
      Company in accordance with their respective terms.

     

    5.  After
      giving effect to the transactions contemplated by the Purchase Agreement, and
      immediately after the Closing, the authorized capital stock of the Company
      will
      consist of: an aggregate of 100,000,000 shares of Common Stock and an aggregate
      of 12,500,000 shares of Preferred Stock of which 4,700,000 shares have been
      designated Series C preferred stock. To our knowledge, and except as set forth
      in Schedule 3.1(g), immediately after the Closing, the Company will have issued
      and outstanding 33,755,987 shares of Common Stock, all of which shares are
      validly issued, fully paid and nonassessable and 4,615,381 shares of Series
      C
      preferred stock, all of which shares will be validly issued, fully paid and
      nonassessable. To our knowledge, immediately after the Closing, 2,000,000 shares
      will be reserved for issuance to employees, officers and directors under the
      Company’s 2003 Stock Incentive Plan, of which up to 1,032,835 shares may be
      subject to currently outstanding non-qualified stock option grants, 453,174
      shares will be reserved for currently outstanding
      warrants, 2,006,250 shares will be reserved for issuance upon exercise
      of the Warrants, 2,675,000 shares will be reserved for issuance upon
      conversion of the Debentures and 1,740,360 shares will be reserved for
      issuance upon conversion of Series C preferred stock in accordance with the
      Redemption and Conversion Agreement. The Debentures and Warrants that have
      been
      issued on the date hereof pursuant to the Purchase Agreement have been duly
      authorized and validly issued and are fully paid and nonassessable and free
      of
      preemptive or similar rights. The Underlying
      Shares have been
      duly
      and validly authorized and reserved for issuance, and when issued in accordance
      with the conversion of the Debentures or the exercise of the Warrants in
      accordance with their respective terms will be validly issued, fully paid and
      nonassessable, and free of any preemptive or similar rights. To our knowledge,
      except for rights described in Schedule 3.1(g) of the Purchase Agreement, there
      are no other options, warrants, conversion privileges or other rights presently
      outstanding to purchase or otherwise acquire from the Company any capital stock
      or other securities of the Company, or any other agreements to issue any such
      securities or rights. 

     

    6.  Assuming
      the accuracy of the representations and warranties of the Purchasers set forth
      in the Purchase Agreement, the Debentures and the Warrants
      may
      be
      issued and sold to the Purchasers without registration under the Securities
      Act.
      Assuming that the representations and warranties of the Purchasers set forth
      in
      the Purchase Agreement are accurate on each of the dates that Warrants are
      exercised and the Debentures are converted, and that the Warrants are exercised
      and the Debentures are converted by the Persons to whom they were initially
      issued by the Company, the Underlying Shares may be issued to the Purchasers
      without registration under the Securities Act. 

     

    
      
        
        

      

      
        3

        
          

        

      

       

    

     

    7.  None
      of
      the execution and delivery of the Transaction Documents, the issuance of the
      Debentures, the Warrants
      and the Underlying Shares,
      the
      consummation of the transactions contemplated thereby or the performance of
      the
      terms and provisions thereof will result in any breach of 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 right of termination, amendment,
      acceleration or cancellation of, or result in (or require) the creation of
      any
      lien upon any property of the Company under its Charter or Bylaws, or violate
      any provision
      of the current Delaware General Corporation Law or any current New York or
      federal statute, rule or regulation that, in each case, in
      our
      experience, is typically applicable to transactions of the nature contemplated
      by the Transaction Documents.
      

     

    8.  To
      our
      knowledge, there is no action, proceeding or investigation pending or overtly
      threatened against the Company or any of its properties in any court or before
      any arbitrator of any kind or by any governmental body.

     

    9.  To
      our
      knowledge, except
      for approval of existing Series C preferred stockholders of the Company and
      such
      filings as shall have been made prior to and shall be effective on and as of
      the
      Closing Date, no approval by, from or with and no other action in respect of,
      any governmental body or any other person (including any trustee or holder
      of
      any indebtedness, securities or other obligations of the Company), is required
      (a) for or in connection with the valid execution and delivery by the Company
      of
      or the performance by the Company of its obligations under the Transaction
      Documents or the consummation by the Company of the transactions contemplated
      thereby, including the offer, issuance, sale and delivery by the Company of
      the
      Debentures and Warrants and the issuance, sale and delivery of the Underlying
      Shares, or (b) as a condition to the legality, validity or enforceability as
      against the Company of the Purchase Agreement except
      for any approval, filing or action that may be required by securities laws,
      rules or regulations, as to which no opinion is expressed except as set forth
      in
      paragraph 6 above.

     

    10.  The
      Company is not an Investment Company within the meaning of the Investment
      Company Act of 1940, as amended.

     

    Our
      opinion is further subject to the following limitations, qualifications and
      assumptions:

    

    (a) Our
      opinion is qualified by the effect of New York law under which a court may
      refuse to enforce, or may limit the application of, a contract or a clause
      thereof that the court finds unconscionable.

    
      
        
        

      

      
        4

        
          

        

      

       

    

    

    (b) We
      express no opinion as to any matter that is affected by any actual fact or
      circumstance inconsistent with or contrary to any assumption set forth herein
      or
      in any document referred to herein.

    

    (c) The
      opinion set forth in paragraph 1 above is based solely upon certificates issued
      by the Secretary of State of each of Delaware and Florida, as applicable, as
      set
      forth on Schedule
      I
      hereto.
      The opinion set forth in paragraph 2 above is based solely upon certificates
      issued by the Secretary of State of each of Delaware and Connecticut, as
      applicable, as set forth on Schedule
      II
      hereto.

    

    (d) The
      opinions set forth in paragraph 5 above are based solely upon our review of
      the
      Company’s certificate of incorporation, the Company’s by-laws and minute books
      and a certificate of officers of the Company.

    

    (e) The
      opinion set forth in paragraph 4 above is subject to the effect of any
      bankruptcy, insolvency, reorganization, moratorium or other similar laws
      relating to or affecting the rights of creditors generally and to the
      application of general principles of equity (regardless of whether considered
      in
      a proceeding in equity or at law), including, without limitation, (i) the
      possible unavailability of specific performance, injunctive relief or any other
      equitable remedy and (ii) concepts of materiality, reasonableness, good faith
      and fair dealing. Accordingly, no opinion is given herein as to the availability
      of specific performance or equitable relief of any kind, or the effect of any
      law of any jurisdiction regarding fraudulent conveyance or fraudulent
      transfer.

    

    (f) We
      express no opinion as to the enforceability of (i) provisions that purport
      to
      establish evidentiary standards, (ii) provisions exculpating a party from,
      or
      indemnifying a party for (or entitling a party to contribution in a case
      involving), its own gross negligence, willful misconduct or violation of
      securities or other laws, (iii) provisions relating to the availability of
      specific remedies or relief or the release or waiver of any remedies or rights
      or time periods in which claims are required to be asserted, (iv) provisions
      relating to the discharge of defenses or disclaimers, liability limitations
      or
      limitations of the obligations of the Investors or the Company under any of
      the
      Transaction Documents, (v) provisions relating to choice of law,
      or (vi)
      provisions purporting to waive illegality as a defense to performance of
      contract obligations.

    

    (g) We
      express no opinion as to the enforceability of any section of the Transaction
      Documents to the extent it purports to waive any objection a person may have
      that a suit, action or proceeding has been brought in an inconvenient
      forum.

    

    (h) We
      express no opinion as to any provision in the Transaction Documents that relates
      to the subject matter jurisdiction of any United States District Court to
      adjudicate any controversy relating to such agreements.

    

    (i) We
      express no opinion with respect to the effect of any provision of the
      Transaction Documents that (i) is intended to permit modification thereof only
      by means of an agreement signed in writing by the parties thereto, (ii) provides
      that any Person purchasing any Debentures or Warrants from a Purchaser or other
      Person may exercise set off or similar rights with respect to such participation
      or (iii) imposes penalties or forfeitures.

    
      
        
        

      

      
        5

        
          

        

      

       

    

    

    (j) The
      opinions set forth herein are given as of the date hereof and we shall have
      no
      obligation to update this opinion letter to reflect any facts or circumstances
      that may hereafter come to our attention or any changes in any law, rule or
      regulation that may hereafter occur.

    

    As
      used
      in this letter, the word “knowledge” or the phrase “to our knowledge” means the
      conscious awareness of facts or other information by only those lawyers of
      this
      law firm who have had active involvement in negotiating the transactions
      contemplated by the Transaction Documents or preparing or reviewing such
      agreements - namely, Walter M. Epstein, Ralph W. Norton and Mitzi S.
      Lieberman.

     

    The
      opinions expressed herein are limited to the laws of the State of New York,
      the
      General Corporation Law of the State of Delaware and the federal laws of the
      United States of America. 

    

    This
      opinion is rendered solely for your benefit in connection with the subject
      transaction, and is not to be relied upon by any other person, or otherwise
      furnished to third parties, used, circulated, quoted or relied upon, without
      our
      prior consent. 

    

    Very
      truly yours,

    
      
        
        

      

      
        6EX 10.6

    EXHIBIT
      10.6

    

    SECURITY
      AGREEMENT

    

    This
      SECURITY AGREEMENT, dated as of January 17, 2007 (this “Agreement”),
      is
      among Solomon
      Technologies, Inc., a Delaware corporation (the
      “Company”),
      certain of the Subsidiaries of the Company
      (such
      subsidiaries,
      the
“Guarantors”
      and
      together with the Company,
      the
“Debtors”)
      and
      the holders of the Company’s Variable Rate Self-Liquidating Senior Secured
      Convertible Debentures due March __, 2008 and issued on January __, 2007 in
      the
      original aggregate principal amount of up to $5,500,000 (collectively, the
      “Debentures”)
      signatory hereto, their endorsees, transferees and assigns (collectively, the
      “Secured
      Parties”).

    

    WITNESSETH:

    

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

    

    WHEREAS,
      pursuant to a certain Subsidiary Guarantee, dated as of the date hereof (the
      “Guarantee”),
      the
      Guarantors
      have
      jointly and severally agreed to guarantee and act as surety for payment of
      such
      Debentures; 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 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
      Guarantors’ obligations under the Guarantee.

    

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

    

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

    

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

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

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

    

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

     

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

    

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

    

    (v) All
      commercial tort claims;

    

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

    

    (vii) All
      investment property;

    

     (viii) All
      supporting obligations; and

    

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

    

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    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.

    

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

     

    
      
        
        

      

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

    

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

    

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

    

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

    

    (g)
       “Pledged
      Securities”
shall
      have the meaning ascribed to such term in Section 4(i).

    

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    2.
       Grant
      of Security Interest in Collateral.
      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
      Secured Parties a 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 (a “Security
      Interest”
and
      collectively, the “Security
      Interests”).

    

    3. 
       Delivery
      of Certain Collateral.
      Subject
      to the rights of Oliver Street Finance LLC (“Oliver
      Street”)
      and
      the holders of certain secured promissory notes of the Company as described
      on
Schedule
      3.1(aa)
      attached
      to that certain Securities Purchase Agreement, dated January __, 2007, by and
      among the Company and the purchasers signatory thereto, 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 in the Debtor’s possession 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 Secured Parties 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

        
          

        

      

      
        
        

      

    

    

    (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 Interests. Except
      as
      set forth on Schedule
      B
      attached
      hereto, there is not on file in any governmental or regulatory authority, agency
      or recording office an effective financing statement, security agreement,
      license or transfer or any notice of any of the foregoing (other than those
      that
      will be filed in favor of the Secured Parties pursuant to this Agreement)
      covering or affecting any of the Collateral. Except as set forth on Schedule
      B
      attached
      hereto and except pursuant to this Agreement, as 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
      Secured Parties pursuant to the terms of this Agreement). The Secured Parties
      acknowledge that Oliver Street and the Senior Lenders hold certain prior liens
      relating to the Collateral. The Debtors shall not alter the rights or
      obligations to Oliver Street or Senior Lenders, including but not limited to,
      increasing the obligations or expanding the security interest, without the
      prior
      written consent of the Agent, which consent shall not be unreasonably withheld.
      Nothing in this Section 4(c) shall prevent the Debtor from executing or filing
      any financing statement or other document or instrument or amending any
      previously made filing relating to the liens of Oliver Street or the Senior
      Lenders.

    

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

    

    (e)
       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 Secured Parties at least 30 days prior
      to
      such relocation (i) written notice of such relocation and the new location
      thereof (which must be within the United States) and (ii) evidence that
      appropriate financing statements under the UCC and other necessary documents
      have been filed and recorded and other steps have been taken to perfect the
      Security Interests to create in favor of the Secured Parties a valid, perfected
      and continuing perfected lien in the Collateral.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (f)
       This
      Agreement creates in favor of the Secured Parties a valid, security interest
      in
      the Collateral, subject only to Permitted Liens (as defined in the Debentures)
      securing the payment and performance of the Obligations. Upon making the filings
      described in the immediately following paragraph, all security interests created
      hereunder in any Collateral which may be perfected by filing Uniform Commercial
      Code financing statements shall have been duly perfected. Except for the filing
      of the Uniform Commercial Code financing statements referred to in the
      immediately following paragraph, the recordation of the Intellectual Property
      Security Agreement (as defined below) with respect to copyrights and copyright
      applications in the United States Copyright Office referred to in paragraph
      (m),
the
      execution and delivery of deposit account control agreements satisfying the
      requirements of Section 9-104(a)(2) of the UCC with respect to each deposit
      account of the Debtors (which is not required to be executed or filed
      hereunder),
      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 and the recordation of said Intellectual
      Property Security Agreement, 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.

    

    (g)
       Each
      Debtor hereby authorizes the Agent to file one or more financing statements
      under the UCC, with respect to the Security Interests 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. If any, all required consents (including, without limitation,
      from stockholders or creditors of any Debtor) necessary for any Debtor to enter
      into and perform its obligations hereunder have been obtained.

    

     (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. 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). 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    (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 Interests provided for hereunder as valid
      and perfected liens and security interests in the Collateral in favor of the
      Secured Parties until this Agreement and the Security Interest hereunder shall
      be terminated pursuant to Section 11 hereof. Subject to the rights of Oliver
      Street and the Senior Lenders, each Debtor hereby agrees to defend the same
      against the claims of any and all persons and entities. Each Debtor shall
      safeguard and protect all Collateral. 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 Interests hereunder, and other than with respect to the rights of
      Oliver Street and the Senior Lenders, 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
      Interests hereunder.

    

    (l)
       Other
      than pursuant to the rights of Oliver Street and the Senior Lenders, 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, including Collateral hereafter acquired, 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) Oliver Street, the Senior Lenders and the Agent will be named as lender
      loss payee and additional insured under each such insurance policy, as their
      interests may appear; (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 and if the proceeds arising out of any claim or series of
      related claims do not exceed $100,000, loss payments in each instance will
      be
      applied by the applicable Debtor to the repair and/or replacement of property
      with respect to which the loss was incurred to the extent reasonably feasible,
      and any loss payments or the balance thereof remaining, to the extent not so
      applied, shall be payable to the applicable Debtor, provided, however, that
      payments received by any Debtor after an Event of Default occurs and is
      continuing or in excess of $100,000 for any occurrence or series of related
      occurrences shall be paid to the Agent on behalf of the Secured Parties after,
      if required after reasonable notice to Oliver Street and the Senior Lenders
      pursuant to the rights of Oliver Street and the Senior Lenders, payment to
      such
      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 as lender loss payee and additional insured shall
      be
      delivered to the Agent at least annually and at the time any new policy of
      insurance is issued.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    (o)
       Each
      Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the
      Secured Parties 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.

    

    (p)
       Unless
      possession is required and delivery has been made to Oliver Street and the
      Senior Lenders and not returned to a Debtor, 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 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. 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 is not required
      hereunder.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    (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 provided that the Debtors
      shall
      not be required to violate the rights of Oliver Street and the Senior
      Lenders.

    

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

    

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

    

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

    

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

    

    (w) 
      Except
      in
      the ordinary course of business and except as required by Oliver Street or
      the
      Senior Lenders in enforcing their respective security interests, 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 Secured Parties and so long
      as,
      at the time of such written notification, such Debtor provides any financing
      statements or fixture filings necessary to perfect and continue the perfection
      of the Security Interests granted and evidenced by this Agreement.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (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
      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
      attached
      hereto; (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) Subject
      to the rights of Oliver Street and the Senior Lenders, at any time and from
      time
      to time that any Collateral consists of instruments, certificated securities
      or
      other items that require or permit possession by the secured party to perfect
      the security interest created hereby, the applicable Debtor shall deliver such
      Collateral to the Agent.

    

    (bb)
      Subject
      to the rights of Oliver Street and the Senior Lenders, 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, subject to the
      rights of Oliver Street and the Senior Lenders, 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) Subject
      to the rights of Oliver Street and the Senior Lender, 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) [INTENTIONLLY
      DELETED].

    

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

    

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

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

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

    

    (hh) Each
      Debtor shall immediately provide written notice to the Secured Parties of any
      and all accounts which arise out of contracts with any governmental authority
      and, to the extent necessary to perfect or continue the perfected status of
      the
      Security Interests 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 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 Interests
      in
      such accounts and proceeds thereof.

    

    (ii) Unless
      (A) a subsidiary is acquired through a debt financing pursuant to which the
      lender is granted a security interest on all of the assets of such subsidiary
      and no assets of the Debtors are transferred to such subsidiary or (B) the
      Company or a subsidiary acquires assets through a debt financing pursuant to
      which a lender is granted a security interest in the acquired assets or (C)
      a
      subsidiary of a Debtor has no assets or value (provided that if assets or value
      are later added other than as set forth in subclause (B) of this clause (ii)),
      such exception shall no longer apply and the provisions of this clause (ii)
      shall be honored), each Debtor shall cause each subsidiary
      of such
      Debtor to immediately become a party hereto (an “Additional
      Debtor”),
      by
      executing and delivering an Additional Debtor Joinder in substantially the
      form
      of Annex
      A
      attached
      hereto and comply with the provisions hereof applicable to the Debtors.
      Concurrent therewith, the Additional Debtor shall deliver replacement schedules
      for, or supplements to all other Schedules to (or referred to in) this
      Agreement, as applicable, which replacement schedules shall supersede, or
      supplements shall modify, the Schedules then in effect. The Additional Debtor
      shall also deliver such opinions of counsel, authorizing resolutions, good
      standing certificates, incumbency certificates, organizational documents,
      financing statements and other information and documentation as the 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)
       Subject
      to the rights of Oliver Street and the Senior Lenders, each Debtor shall vote
      the Pledged Securities to comply with the covenants and agreements set forth
      herein and in the Debentures.

    

    (kk) Subject
      to the rights of Oliver Street and the Senior Lenders, 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 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.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (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 and subject to the rights of Oliver Street
      and
      the Senor Lenders: (i) deliver to Agent or the Transferee, as the case may
      be,
      the articles of incorporation, bylaws, minute books, stock certificate books,
      corporate seals, deeds, leases, indentures, agreements, evidences of
      indebtedness, books of account, financial records and all other Organizational
      Documents and records of the Debtors and their direct and indirect subsidiaries;
      (ii) use its best efforts to obtain resignations of the persons then serving
      as
      officers and directors of the Debtors and their direct and indirect
      subsidiaries, if so requested; and (iii) use its best efforts to obtain any
      approvals that are required by any governmental or regulatory body in order
      to
      permit the sale of the Pledged Securities to the Transferee or the purchase
      or
      retention of the Pledged Securities by Agent and allow the Transferee or Agent
      to continue the business of the Debtors and their direct and indirect
      subsidiaries.

     

    (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, (ii) cause the security interest
      contemplated hereby with respect to all Intellectual Property registered at
      the
      United States Copyright Office or United States Patent and Trademark Office
      to
      be duly recorded at the applicable office, and (iii) give the Agent notice
      whenever it acquires (whether absolutely or by license) or creates any
      additional material Intellectual Property.

    

    (nn) Subject
      to the rights of Oliver Street and the Senior Lenders, 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 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.

     

    
      
        
        

      

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

    

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

    

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

    

    (a)
      The
      occurrence of an Event of Default (as defined in the 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 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 Interests, whether payable pursuant to the
      Debentures or otherwise, or of any check, draft, note, trade acceptance or
      other
      instrument evidencing an obligation to pay any such sum, subject to the rights
      of Oliver Street and the Senior Lenders, hold the same in trust for the Secured
      Parties and shall forthwith endorse and transfer any such sums or instruments,
      or both, to the Secured Parties, pro-rata in proportion to their respective
      then-currently outstanding principal amount of Debentures for application to
      the
      satisfaction of the Obligations (and if any Debenture is not outstanding,
      pro-rata in proportion to the initial purchases of the remaining Debentures).
      

     

    
      
        
        

      

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

    

     8.  Rights
      and Remedies Upon Default.
      

    

    (a) Upon
      the
      occurrence of any Event of Default and at any time thereafter, the Secured
      Parties, acting through 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.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    (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.

    

    (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 is 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 its designee.

    

    (vi) The
      Agent
      may (but is 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.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (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 or from payments made on account of any insurance policy insuring
      any
      portion of the Collateral 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
      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 15%
      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.

    

    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 cooperate with Agent in
      its
      attempt to satisfy any requirements under the Securities Laws (including,
      without limitation, registration thereunder if requested by Agent) applicable
      to
      the sale of the Pledged Securities by Agent.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

     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 the
      Collateral or the Security Interests 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. Until so paid, any fees payable
      hereunder shall be added to the principal amount of the Debentures and shall
      bear interest at the Default Rate.

    

     12.  Responsibility
      for Collateral.
      The
      Debtors assume all liabilities and responsibility in connection with all
      Collateral, and the Obligations shall in no way be affected or diminished by
      reason of the loss, destruction, damage or theft of any of the Collateral or
      its
      unavailability for any reason. Without limiting the generality of the foregoing,
      (a) neither the Agent nor any Secured Party (i) has any duty (either before
      or
      after an Event of Default) to collect any amounts in respect of the Collateral
      or to preserve any rights relating to the Collateral, or (ii) has any obligation
      to clean-up or otherwise prepare the Collateral for sale, and (b) 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.

    

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

     

    
      
        
        

      

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

    

     15.  
      Power
      of Attorney; Further Assurances.

    

    (a)
       Each
      Debtor authorizes the Agent, and does hereby make, constitute and appoint the
      Agent and its 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, subject to the rights of Oliver Street
      and
      Senior Lenders, 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 deems necessary to
      protect, preserve and realize upon the Collateral and the Security Interests
      granted therein in order to effect the intent of this Agreement and the
      Debentures all as fully and effectually as the Debtors might or could do; and
      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. Subject
      to the rights of Oliver Street and the Senior Lenders, 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.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    (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 Interests 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.

     

    
      
        
        

      

      
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    18.  Appointment
      of Agent.
      The
      Secured Parties hereby appoint Truk
      Opportunity Fund, LLC
      to act
      as their agent (“Truk
      Opportunity”
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 Truk Opportunity may not be removed as Agent
      unless Truk Opportunity shall then hold less than $50,000 in principal amount
      of
      Debentures;
      provided,
      further,
      that
      such removal may occur only if each of the other Secured Parties shall then
      hold
      not less than an aggregate of $1,000,000 in principal amount of Debentures.
      The
      Agent
      shall have the rights, responsibilities and immunities set forth in Annex
      B
      hereto.

     

    19.  Miscellaneous.

    

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

    

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

    

    (c)
       This
      Agreement,
      together with the exhibits and schedules hereto, contain the entire
      understanding of the parties with respect to the subject matter hereof and
      supersede all prior agreements and understandings, oral or written, with respect
      to such matters, which the parties acknowledge have been merged into this
      Agreement and the exhibits and schedules hereto.
      No
      provision of this Agreement may be waived, modified, supplemented or amended
      except in a written instrument signed, in the case of an amendment, by the
      Debtors and the Secured Parties or, in the case of a waiver, by the party
      against whom enforcement of any such waived provision is sought. 

    

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

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (e)
       No
      waiver
      of any default with respect to any provision, condition or requirement of this
      Agreement shall be deemed to be a continuing waiver in the future or a waiver
      of
      any subsequent default or a waiver of any other provision, condition or
      requirement hereof, nor shall any delay or omission of any party to exercise
      any
      right hereunder in any manner impair the exercise of any such
      right.

    

    (f)
       This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company and the Guarantors may
      not
      assign this Agreement or any rights or obligations hereunder without the prior
      written consent of each Secured Party (other than by merger). Any Secured Party
      may assign any or all of its rights under this Agreement to any Person to whom
      such Secured Party assigns or transfers any Securities, provided such transferee
      agrees in writing to be bound, with respect to the transferred Securities,
      by
      the provisions of this Agreement that apply to the “Secured
      Parties.”

    

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

    

    (h)
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. 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.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    (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 fees relating to the
      cost
      of investigating and defending any of the foregoing) imposed on, incurred by
      or
      asserted against such Indemnitee in any way related to or arising from or
      alleged to arise from this Agreement or the Collateral, except any such losses,
      claims, liabilities, damages, penalties, suits, costs and expenses which result
      from the gross negligence or willful misconduct of the Indemnitee as determined
      by a final, nonappealable decision of a court of competent jurisdiction. This
      indemnification provision is in addition to, and not in limitation of, any
      other
      indemnification provision in the Debentures, the Purchase Agreement (as such
      term is defined in the Debentures) or any other agreement, instrument or other
      document executed or delivered in connection herewith or therewith.

    

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

    

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

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    20. Concerning
      the Senior Indebtedness.
      

    

    (a) Notwithstanding
      any other provision of this Agreement to the contrary, the provisions of this
      Section 20 shall be remain in effect until the final and indefeasible payment
      in
      full of all indebtedness of the Debtor owing to Oliver Street and the Senior
      Lenders.

    

    (b) The
      Secured Parties further acknowledge and agree that in the event they exercise
      any remedies afforded to them under this Security Agreement or otherwise against
      any of the Collateral, they will hold any Collateral and proceeds of any sale,
      lease or other disposition of the Collateral (“Proceeds”)
      received by the Secured Parties in trust for, and pay such Collateral and
      Proceeds over to, Oliver Street and the Senior Lenders until all indebtedness
      of
      the Debtors owing to Oliver Street and the Senior Lenders is finally and
      indefeasibly paid in full; provided,
      however,
      that
      the obligations of the Secured Parties hereunder are conditioned upon Oliver
      Street and the Senior Lenders promptly providing the Debtors and the Secured
      Parties with customary pay-off and release letters and Oliver Street and the
      Senior Lenders surrendering to the Agent, with all reasonably requested
      supporting documentation including but not limited to stock powers in blank
      of
      all Pledged Securities, all Collateral in the possession of Oliver Street and
      the Senior Lenders.

    

    (d) Oliver
      Street and the Senior Lenders are, and are intended to be, third party
      beneficiaries of this Section 20. Prior to the final and indefeasible payment
      in
      full of all indebtedness of the Debtors owing to Oliver Street or the Senior
      Lenders, this Section 20 may not be amended without the prior written consent
      of
      Oliver Street and the Senior Lenders. The provisions of this Section 20 are
      solely for the benefit of Oliver Street and the Senior Lenders and shall be
      enforceable by them as against the Debtors and the Secured Parties.

    

    [SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

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

     

    
      	
              SOLOMON
                TECHNOLOGIES, INC.

            	 	 	 
	 	 	 	 
	By:	 	 	
            
	
              
                

              

              Name:

            	 	 	
            
	
              Title:

            	 	 	
            

    

    

    
      	
              
                [INSERT
                  NAME OF EACH SUBSIDIARY]

              

            	 	 	 
	 	 	 	 
	By:	 	 	
            
	
              
                

              

              Name:

            	 	 	
            
	
              Title

            

    

     

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO SOLM 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]

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

    Principal
      Place of Business of Debtors:

    

    Locations
      Where Collateral is Located or Stored:

    
SCHEDULE
      B

     

    SCHEDULE
      C

     

    SCHEDULE
      D

    Legal
      Names and Organizational Identification Numbers

     

    SCHEDULE
      E

    Names;
      Mergers and Acquisitions

     

    SCHEDULE
      F

    Intellectual
      Property

     

    SCHEDULE
      G

    Account
      Debtors

    

    SCHEDULE
      H

    Pledged
      Securities

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    ANNEX
      A

    to

    SECURITY

    AGREEMENT

    

    FORM
      OF ADDITIONAL DEBTOR JOINDER

    

    Security
      Agreement dated as of January __, 2007 made by

    Solomon
      Technologies, Inc.

    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 therein as of the
      date
      of execution and delivery of this Additional Debtor Joinder. WITHOUT LIMITING
      THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE
      SECURED PARTIES A SECURITY INTEREST IN THE COLLATERAL AS MORE FULLY SET FORTH
      IN
      THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY TRIAL
      PROVISIONS SET FORTH THEREIN.

    

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

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    
      	 	  
	 	
              [Name
                of Additional Debtor]

            
	 	 
	
            	By:
	 	 
	 	
              Name:

            
	 	
              Title:

            
	 	 
	 	
              Address:

            
	 	 
	
              Dated:

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ANNEX
      B

    to

    SECURITY

    AGREEMENT

    

    THE
      AGENT

    

    1.
      Appointment. The
      Secured Parties (all capitalized terms used herein and not otherwise defined
      shall have the respective meanings provided in the Security Agreement to which
      this Annex B is attached (the "Agreement")),
      by
      their acceptance of the benefits of the Agreement, hereby designate Truk
      Opportunity Fund, LLC
      (“Truk
      Opportunity”
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 misconduct as determined by a final
      judgment (not subject to further appeal) of a court of competent jurisdiction.
      The duties of the Agent shall be mechanical and administrative in nature; the
      Agent shall not have by reason of the Agreement or any other Transaction
      Document a fiduciary relationship in respect of any Debtor or any Secured Party;
      and nothing in the Agreement or any other Transaction Document, expressed or
      implied, is intended to or shall be so construed as to impose upon the Agent
      any
      obligations in respect of the Agreement or any other Transaction Document except
      as expressly set forth herein and therein.

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

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

    

    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. Anything to the contrary notwithstanding, the Agent shall have no obligation
      whatsoever to any Secured Party to assure that the Collateral exists or is
      owned
      by the Debtors or is cared for, protected or insured or that the liens granted
      pursuant to the Agreement have been properly or sufficiently or lawfully
      created, perfected, or enforced or are entitled to any particular
      priority.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

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

    

    7.
      Resignation
      by the Agent. 

     

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

    

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

    

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

    

    8.
      Rights
      with respect to Collateral.
      Each
      Secured Party agrees with all other Secured Parties and the Agent (i) that
      it
      shall not, and shall not attempt to, exercise any rights with respect to its
      security interest in the Collateral, whether pursuant to any other agreement
      or
      otherwise (other than pursuant to this Agreement), or take or institute any
      action against the Agent or any of the other Secured Parties in respect of
      the
      Collateral or its rights hereunder (other than any such action arising from
      the
      breach of this Agreement) and (ii) that such Secured Party has no other rights
      with respect to the Collateral other than as set forth in this Agreement and
      the
      other Transaction Documents. Upon the acceptance of any appointment as Agent
      hereunder by a successor Agent, such successor Agent shall thereupon succeed
      to
      and become vested with all the rights, powers, privileges and duties of the
      retiring Agent and the retiring Agent shall be discharged from its duties and
      obligations under the Agreement.  After any retiring Agent’s resignation or
      removal hereunder as Agent, the provisions of the Agreement including this
      Annex
      B shall inure to its benefit as to any actions taken or omitted to be taken
      by
      it while it was Agent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Disclosure
        Schedules to the Security Agreement

      dated
        as of January 14, 2007 by and among Solomon Technologies, Inc., Certain of
        the
        Subsidiaries of the Company and
        the Holders of the Company’s Variable Rate Self-Liquidating Senior Secured
        Convertible Debentures due March __, 2008 and issued on January __,
        2007

       

      Capitalized
        terms used but not otherwise defined in these Disclosure Schedules shall
        have
        the same meanings ascribed to such terms in the Security Agreement among
        Solomon
        Technologies, Inc. (the “Company”), certain of the subsidiaries of the Company
        and the holders of the Company’s Variable Rate Self-Liquidating Senior Secured
        Convertible Debentures due March __, 2008 and issued on January __, 2007
        (the
“Security Agreement”).

      

      Nothing
        in these Disclosure Schedules is intended to broaden the scope of any
        representation or warranty of the Company or to create any covenant on the
        part
        of the Company. Further, inclusion of information herein shall not be construed
        as an admission that such information is material to the condition of the
        Company. Any matter disclosed on any part of these Disclosure Schedules shall
        be
        deemed disclosed for purposes of every part of these Disclosure Schedules
        to the
        extent the applicability of such disclosure to such other paragraphs or parts
        of
        the Disclosure Schedules is reasonably apparent on its face.

      

      Where
        the
        terms of an agreement or other disclosure item have been summarized or described
        in these Disclosure Schedules, such summary or description does not purport
        to
        be a complete statement of the material terms of such agreement or other
        item.

      
        
          
          

        

        
          1

          
            

          

        

         

      

      Schedule
        A

      

      The
        Company’s principal place of business is located at the following
        address:

      

      1400
        L&R Industrial Boulevard

      Tarpon
        Springs, Florida 34689

      

      Certain
        of the Company’s books of account and records are at the following
        addresses:

      

      Venture
        Partners

      Mill
        Crossing, Bldg. A

      1224
        Mill
        Street

      East
        Berlin, Connecticut 06023

      

      Davis
        & Gilbert LLP

      1740
        Broadway

      New
        York,
        New York 10019

      
        
          
          

        

        
          2

          
            

          

        

         

      

      Schedule
        B

      

      The
        Company has issued senior secured promissory notes in the aggregate principal
        amount of $1,712,085 as detailed on Schedule 3.1(aa) attached to that certain
        Securities Purchase Agreement, dated January __, 2007, by and among the Company
        and the purchasers signatory thereto. The Company is authorized to issue
        up to
        an additional $287,915 in principal amount of such notes. The holders of
        these
        notes have a first priority security interest in all of the tangible and
        intangible assets of the Company and have filed a UCC-1 financing statement
        and
        certain amendments thereto with the Secretary of State of the State of
        Delaware.

      

      On
        November 18, 2005, the Company entered into an agreement with Oliver Street
        Finance LLC pursuant to which Oliver Street provides funding to the Company
        to
        prosecute the Company’s patent infringement action against Toyota Motor
        Corporation, Toyota Motor Sales U.S.A., Inc. and Toyota Motor Manufacturing
        North America. Under the terms of the agreement, Oliver Street pays all legal
        fees and out-of pocket expenses billed by the Company’s special patent counsel,
        Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., in connection with the
        litigation against Toyota and approved by the Company in exchange for a portion
        of any recovery that the Company receives in the litigation equal to the
        greater
        of 40% of the recovery or the actual amount of legal fees and expenses Oliver
        Street pays on the Company’s behalf. 

       

      
        
          
          

        

        
          3

          
            

          

        

         

      

      Schedule
        C

      

      Delaware

      
        
          
          

        

        
          4

          
            

          

        

         

      

      Schedule
        D

      

      Solomon
        Technologies, Inc. No organizational number exists. 

      
        
          
          

        

        
          5

          
            

          

        

         

      

      Schedule
        E

      

      The
        Company originally incorporated in Maryland on February 25, 1993 under the
        name
        Solomon Technologies, Inc. On July 2, 2003, the Company reincorporated from
        Maryland to Delaware by merging into a newly-formed Delaware corporation
        named
        Solomon Technologies, Inc. 

      

      On
        August
        17, 2006, the Company acquired Technipower LLC.

      
        
          
          

        

        
          6

          
            

          

        

         

      

      Schedule
        F

      

      Trademarks

      

      In
        2006,
        the Company filed for registration of the terms Electric Wheel and Electric
        Transaxle and in 2003, the Company registered its name “Solomon Technologies”
and logo with the United States Patent and Trademark Office (“USPTO”) under
        three trademark filings. In 1999, the Company trademarked a stylized version
        of
        the phrase “Electric Wheel” in the United States in connection with electric
        propulsion systems. The trademarks have a 10-year term commencing on the
        registration date and are renewable for additional terms of 10 years each,
        subject to compliance with certain filing requirements. 

      

      Current
        patents

      

      The
        Company currently has three technologies patented in the U.S. and foreign
        jurisdictions. Below is a summary of the patents. 

      

      Dual-Input
        Infinite-Speed Integral Motor and Transmission Device.
        This
        patent is the basis for the Company’s Electric Wheel technology. The patents
        cover both marine applications and farming and household appliance applications.
        This patent has been issued in the following countries/regions:

      

      
        	
                COUNTRY

              	
                 
                  

              	
                DATE FILED

              	 	
                ISSUED

              	 	
                PATENT
                  #

              	 	
                STATUS

              
	
                Australia
                  

              	
                 
                  

              	
                11/19/91
                  

              	
                 
                  

              	
                11/19/94
                  

              	
                 
                  

              	
                651,644
                  

              	
                 
                  

              	
                Issued
                  

              
	
                Canada
                  

              	
                 
                  

              	
                11/19/91
                  

              	
                 
                  

              	
                01/28/03
                  

              	
                 
                  

              	
                2,096,642
                  

              	
                 
                  

              	
                Issued
                  

              
	
                Japan
                  

              	
                 
                  

              	
                11/19/91
                  

              	
                 
                  

              	
                01/31/03
                  

              	
                 
                  

              	
                3,394,771
                  

              	
                 
                  

              	
                Issued
                  

              
	
                Europe*

              	 	
                11/19/91

              	 	
                05/28/97

              	 	
                0
                  588 618

              	 	
                Issued

              
	
                South
                  Korea 

              	
                 
                  

              	
                11/19/91
                  

              	
                 
                  

              	
                01/07/99
                  

              	
                 
                  

              	
                187697
                  

              	
                 
                  

              	
                Issued
                  

              
	
                United
                  States 

              	
                 
                  

              	
                11/28/90
                  

              	
                 
                  

              	
                11/26/91
                  

              	
                 
                  

              	
                5,067,932
                  

              	
                 
                  

              	
                Issued
                  

              
	
                WIPO**

              	 	
                11/19/91

              	 	 	 	
                US91/08624

              	 	
                Completed

              

      

      

      * The
        European patent has been validated and remains in force in Germany, Denmark,
        Spain, France and Netherlands.

      

      ** The
        World
        Intellectual Property Organization is an agency of the United Nations that
        administers approximately 23 treaties dealing with different aspects of
        intellectual property protection.

      

      Method
        and Apparatus for Propelling a Marine Vessel.
        This
        patent ties the Company’s Electric Wheel technology directly to marine
        propulsion and provides for a patent on regenerative feedback. This patent
        has
        been issued in the U.S. and is pending in foreign jurisdictions, as follows:
        

      

      
        	
                COUNTRY
                  

              	
                 
                  

              	
                DATE FILED

              	 	
                ISSUED

              	 	
                PATENT
                  #

              	 	
                STATUS

              
	
                Europe
                  

              	
                 
                  

              	
                04/29/96

              	
                 
                  

              	 	
                 
                  

              	
                97922660.2

              	
                 
                  

              	
                Pending
                  

              
	
                Japan
                  

              	
                 
                  

              	
                04/29/97

              	
                 
                  

              	 	
                 
                  

              	
                9-539268

              	
                 
                  

              	
                Pending

              
	
                United
                  States 

              	
                 
                  

              	
                04/29/96

              	
                 
                  

              	
                01/26/99

              	
                 
                  

              	
                5,863,228

              	
                 
                  

              	
                Issued
                  

              
	
                WIPO

              	
                 
                  

              	
                04/29/97

              	
                 
                  

              	 	
                 
                  

              	
                US97/07556

              	
                 
                  

              	
                Completed
                  

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      System
        and Apparatus for a Multiple Input and Dual Output Electric Differential
        Motor
        Transmission Device.
        This
        patent is the basis for the Company’s Electric Transaxle technology. This patent
        has been issued in the U.S. and is pending in two foreign jurisdictions,
        as
        follows:

      

      
        	
                COUNTRY
                  

              	
                 
                  

              	
                DATE FILED

              	 	
                ISSUED

              	 	
                PATENT
                  #

              	 	
                STATUS

              
	
                Japan
                  

              	
                 
                  

              	
                11/04/97

              	
                 
                  

              	 	
                 
                  

              	
                10-523770

              	
                 
                  

              	
                Pending
                  

              
	
                United
                  States 

              	
                 
                  

              	
                11/19/96

              	
                 
                  

              	
                12/22/98

              	
                 
                  

              	
                5,851,162

              	
                 
                  

              	
                Issued
                  

              
	
                WIPO
                  

              	
                 
                  

              	
                11/04/97

              	
                 
                  

              	 	
                 
                  

              	
                US97/20916

              	
                 
                  

              	
                Completed 

              

      

      

      Further
        patents pending

      

      On
        January 30, 2004, the Company submitted a provisional patent application
        for
        regenerative motor propulsion systems. On January 28, 2005, in advance of
        the
        one year anniversary of this filing, the Company converted this provisional
        application into a utility patent application in the United States as well
        as an
        international patent application under the Patent Cooperation Treaty, both
        entitled “Regenerative
        Motor Propulsion Systems.”
These
        applications are presently being prosecuted and have been published as
        follows:

      

      
        	
                COUNTRY
                  

              	
                 
                  

              	
                DATE FILED

              	 	
                PUBLISHED

              	 	
                PUBLICATION
                  #

              	 	
                STATUS

              
	
                Australia

              	 	
                01/28/05

              	 	
                Pending

              	 	
                2005210624

              	 	
                Pending

              
	
                Canada

              	 	
                01/28/05

              	 	
                Pending

              	 	
                Pending

              	 	
                Pending

              
	
                United
                  States 

              	
                 
                  

              	
                01/28/05

              	
                 
                  

              	
                8/10/06

              	
                 
                  

              	
                Pending

              	
                 

              	
                Pending

              
	
                WIPO
                  

              	
                 
                  

              	
                01/30/05

              	
                 
                  

              	
                08/18/05

              	
                 
                  

              	
                WO2005075234

              	
                 
                  

              	
                Completed

              

      

      

      On
        March
        11, 2005, the Company filed a provisional patent application with the USPTO
        entitled System
        for Automation for Power Generation, Propulsion and Use
        Management.
        The
        provisional patent application describes control systems and processes for
        the
        operation of an electronic propulsion and power generating system for marine
        applications as well as for the use of such systems in broader markets. The
        Company has made revisions to this application and filed a utility application
        based upon the provisional patent application. The
        Company has also applied for an international patent application under the
        Patent Cooperation Treaty:

      

      
        	
                COUNTRY
                  

              	
                 
                  

              	
                DATE FILED

              	 	
                PUBLISHED

              	 	
                PUBLICATION
                  #

              	 	
                STATUS

              
	
                United
                  States 

              	
                 
                  

              	
                03/10/06

              	
                 
                  

              	
                09/21/06

              	
                 
                  

              	
                US
                  2006-0208570

              	
                 

              	
                Pending

              
	
                WIPO
                  

              	
                 
                  

              	
                03/10/06

              	
                 
                  

              	
                09/21/06

              	
                 
                  

              	
                WO2006099318

              	
                 
                  

              	
                Pending

              

      

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      On
        October 26, 2005, the Company filed a provisional patent application with
        the
        USPTO entitled System
        and Apparatus for a Multiple Input and Dual Output Electric Differential
        Motor
        Device Utilizing One Ring Gear.
        This
        patent expands its existing patent 5,851,162 by utilizing new methodology
        gained
        from further research and development into the potential applications. On
        October 24, 2006, the Company converted this provisional application to a
        U.S.
        utility application and an international patent application under the Patent
        Cooperation Treaty.

      

      Domain
        Names

      

      The
        Company owns the domain name www.solomontechnologies.com.

      

      Licenses

      

      In
        October 2006, the Company entered into a license agreement with Hobie Cat
        Company pursuant to which Hobie Cat licensed the Company’s patented Electric
        Wheel and other related technology for use in new Hobie
        products.

      
        
          
          

        

        
          9

          
            

          

        

         

      

      Schedule
        G

      

      None

      
        
          
          

        

        
          10

          
            

          

        

         

      

      Schedule
        H

      

      The
        Company owns all of the outstanding equity securities of the following
        entities:

      

      Technipower
        LLC

      Town
        Creek Industries, Inc.

      

      
        
          
          

        

        
          11

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