Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Banyan Corporation - Exhibit 4.18

REGISTRATION RIGHTS AGREEMENT 

          REGISTRATION
  RIGHTS AGREEMENT (this “Agreement”), dated as of _____, 20__,
  by and among Banyan Corporation, an Oregon corporation with its headquarters
  located at 1925 Century Park East, Suite 500, Los Angeles, California 90067
  (the “Company”), and each of the undersigned (together with
  their respective affiliates and any assignee or transferee of all of their respective
  rights hereunder, the “Initial Investors”).

          WHEREAS:

          A.
  In connection with the Securities Purchase Agreement by and among the parties
  hereto of even date herewith (the “Securities Purchase Agreement”),
  the Company has agreed, upon the terms and subject to the conditions contained
  therein, to issue and sell to the Initial Investors (i) secured convertible
  notes in the aggregate principal amount of up to _________($________) (the “Notes”)
  that are convertible into shares of the Company’s Common Stock (the “Common
  Stock”), upon the terms and subject to the limitations and conditions
  set forth in such Notes and (ii) warrants (the “Warrants”)
  to acquire an aggregate of _________shares of Common Stock, upon the terms and
  conditions and subject to the limitations and conditions set forth in the Warrants;
  and 

          B.
  To induce the Initial Investors to execute and deliver the Securities Purchase
  Agreement, the Company has agreed to provide certain registration rights under
  the Securities Act of 1933, as amended, and the rules and regulations thereunder,
  or any similar successor statute (collectively, the “1933 Act”),
  and applicable state securities laws; 

          NOW,
  THEREFORE, in consideration of the premises and the mutual covenants contained
  herein and other good and valuable consideration, the receipt and sufficiency
  of which are hereby acknowledged, the Company and each of the Initial Investors
  hereby agree as follows: 

                    1.
  DEFINITIONS. 

                              a.
  As used in this Agreement, the following terms shall have the following
  meanings: 

                                        (i)
  “Investors” means the Initial Investors and any transferee
  or assignee who agrees to become bound by the provisions of this Agreement in
  accordance with Section 9 hereof. 

                                        (ii)
  “register,” “registered,” and “registration”
  refer to a registration effected by preparing and filing a Registration Statement
  or Statements in compliance with the 1933 Act and pursuant to Rule 415 under
  the 1933 Act or any successor rule providing for offering securities on a continuous
  basis (“Rule 415”), and the declaration or ordering of effectiveness
  of such Registration Statement by the United States Securities and Exchange
  Commission (the “SEC”). 

                                        (iii)
  “Registrable Securities” means the Conversion Shares issued
  or issuable upon conversion or otherwise pursuant to the Notes and Additional
  Notes (as 

defined in the Securities Purchase Agreement) including,
without limitation, Damages Shares (as defined in the Notes) issued or issuable
pursuant to the Notes, shares of Common Stock issued or issuable in payment of
the Standard Liquidated Damages Amount (as defined in the Securities Purchase
Agreement), shares issued or issuable in respect of interest or in redemption of
the Notes in accordance with the terms thereof) and Warrant Shares issuable,
upon exercise or otherwise pursuant to the Warrants and Additional Warrants (as
defined in the Securities Purchase Agreement), and any shares of capital stock
issued or issuable as a dividend on or in exchange for or otherwise with respect
to any of the foregoing. 

                                        (iv)
  “Registration Statement” means a registration statement
  of the Company under the 1933 Act. 

                              b.
  Capitalized terms used herein and not otherwise defined herein shall have
  the respective meanings set forth in the Securities Purchase Agreement or the
  Convertible Note. 

                    2.
  REGISTRATION. 

                              a.
  Mandatory Registration. The Company shall prepare, and, on
  or prior to thirty (30) days from the date of Closing (as defined in the Securities
  Purchase Agreement) (the “Filing Date”), file with the SEC
  a Registration Statement on Form S-3 (or, if Form S-3 is not then available,
  on such form of Registration Statement as is then available to effect a registration
  of the Registrable Securities, subject to the consent of the Initial Investors,
  which consent will not be unreasonably withheld) covering the resale of the
  Registrable Securities underlying the Notes and Warrants issued or issuable
  pursuant to the Securities Purchase Agreement, which Registration Statement,
  to the extent allowable under the 1933 Act and the rules and regulations promulgated
  thereunder (including Rule 416), shall state that such Registration Statement
  also covers such indeterminate number of additional shares of Common Stock as
  may become issuable upon conversion of or otherwise pursuant to the Notes and
  exercise of the Warrants to prevent dilution resulting from stock splits, stock
  dividends or similar transactions. The number of shares of Common Stock initially
  included in such Registration Statement shall be no less than an amount equal
  to two (2) times the sum of the number of Conversion Shares that are then issuable
  upon conversion of the Notes and Additional Notes (based on the Variable Conversion
  Price as would then be in effect and assuming the Variable Conversion Price
  is the Conversion Price at such time), and the number of Warrant Shares that
  are then issuable upon exercise of the Warrants, without regard to any limitation
  on the Investor’s ability to convert the Notes or exercise the Warrants.
  The Company acknowledges that the number of shares initially included in the
  Registration Statement represents a good faith estimate of the maximum number
  of shares issuable upon conversion of the Notes and upon exercise of the Warrants.

                              b.
  Underwritten Offering. If any offering pursuant to a Registration
  Statement pursuant to Section 2(a) hereof involves an underwritten offering,
  the Investors who hold a majority in interest of the Registrable Securities
  subject to such underwritten offering, with the consent of a majority-in-interest
  of the Initial Investors, shall have the right to select one legal counsel and
  an investment banker or bankers and manager or managers to administer the 

2 

offering, which investment banker or bankers or manager or
managers shall be reasonably satisfactory to the Company. 

                              c.
  Payments by the Company. The Company shall use its best efforts
  to obtain effectiveness of the Registration Statement as soon as practicable.
  If (i) the Registration Statement(s) covering the Registrable Securities required
  to be filed by the Company pursuant to Section 2(a) hereof is not filed by the
  Filing Date or declared effective by the SEC on or prior to ninety (90) days
  from the date of Closing (as defined in the Securities Purchase Agreement),
  or (ii) after the Registration Statement has been declared effective by the
  SEC, sales of all of the Registrable Securities cannot be made pursuant to the
  Registration Statement, or (iii) the Common Stock is not listed or included
  for quotation on the Nasdaq National Market (“Nasdaq”), the
  Nasdaq SmallCap Market (“Nasdaq SmallCap”), the New York Stock
  Exchange (the “NYSE”) or the American Stock Exchange (the “AMEX”)
  after being so listed or included for quotation, or (iv) the Common Stock ceases
  to be traded on the Over-the-Counter Bulletin Board (the “OTCBB”)
  or any equivalent replacement exchange prior to being listed or included for
  quotation on one of the aforementioned markets, then the Company will make payments
  to the Investors in such amounts and at such times as shall be determined pursuant
  to this Section 2(c) as partial relief for the damages to the Investors by reason
  of any such delay in or reduction of their ability to sell the Registrable Securities
  (which remedy shall not be exclusive of any other remedies available at law
  or in equity). The Company shall pay to each holder of the Notes or Registrable
  Securities an amount equal to the then outstanding principal amount of the Notes
  (and, in the case of holders of Registrable Securities, the principal amount
  of Notes from which such Registrable Securities were converted) (“Outstanding
  Principal Amount”), multiplied by the Applicable Percentage (as defined
  below) times the sum of: (i) the number of months (prorated for partial months)
  after the Filing Date or the end of the aforementioned ninety (90) day period
  and prior to the date the Registration Statement is declared effective by the
  SEC, provided, however, that there shall be excluded from such period any delays
  which are solely attributable to changes required by the Investors in the Registration
  Statement with respect to information relating to the Investors, including,
  without limitation, changes to the plan of distribution, or to the failure of
  the Investors to conduct their review of the Registration Statement pursuant
  to Section 3(h) below in a reasonably prompt manner; (ii) the number of months
  (prorated for partial months) that sales of all of the Registrable Securities
  cannot be made pursuant to the Registration Statement after the Registration
  Statement has been declared effective (including, without limitation, when sales
  cannot be made by reason of the Company’s failure to properly supplement
  or amend the prospectus included therein in accordance with the terms of this
  Agreement, but excluding any days during an Allowed Delay (as defined in Section
  3(f)); and (iii) the number of months (prorated for partial months) that the
  Common Stock is not listed or included for quotation on the OTCBB, Nasdaq, Nasdaq
  SmallCap, NYSE or AMEX or that trading thereon is halted after the Registration
  Statement has been declared effective. The term “Applicable Percentage”
  means two hundredths (.02). (For example, if the Registration Statement becomes
  effective one (1) month after the end of such ninety (90) day period, the Company
  would pay $5,000 for each $250,000 of Outstanding Principal Amount. If thereafter,
  sales could not be made pursuant to the Registration Statement for an additional
  period of one (1) month, the Company would pay an additional $5,000 for each
  $250,000 of Outstanding Principal Amount.) Such amounts shall be paid in cash
  or, at the Company’s option, in shares of Common Stock priced at the Conversion
  Price (as defined in the Notes) on such payment date.

3 

                              d.
  Piggy-Back Registrations. Subject to the last sentence of
  this Section 2(d), if at any time prior to the expiration of the Registration
  Period (as hereinafter defined) the Company shall determine to file with the
  SEC a Registration Statement relating to an offering for its own account or
  the account of others under the 1933 Act of any of its equity securities (other
  than on Form S-4 or Form S-8 or their then equivalents relating to equity securities
  to be issued solely in connection with any acquisition of any entity or business
  or equity securities issuable in connection with stock option or other bona
  fide, employee benefit plans), the Company shall send to each Investor
  who is entitled to registration rights under this Section 2(d) written notice
  of such determination and, if within fifteen (15) days after the effective date
  of such notice, such Investor shall so request in writing, the Company shall
  include in such Registration Statement all or any part of the Registrable Securities
  such Investor requests to be registered, except that if, in connection with
  any underwritten public offering for the account of the Company the managing
  underwriter(s) thereof shall impose a limitation on the number of shares of
  Common Stock which may be included in the Registration Statement because, in
  such underwriter(s)’ judgment, marketing or other factors dictate such
  limitation is necessary to facilitate public distribution, then the Company
  shall be obligated to include in such Registration Statement only such limited
  portion of the Registrable Securities with respect to which such Investor has
  requested inclusion hereunder as the underwriter shall permit. Any exclusion
  of Registrable Securities shall be made pro rata among the Investors seeking
  to include Registrable Securities in proportion to the number of Registrable
  Securities sought to be included by such Investors; provided, however,
  that the Company shall not exclude any Registrable Securities unless the Company
  has first excluded all outstanding securities, the holders of which are not
  entitled to inclusion of such securities in such Registration Statement or are
  not entitled to pro rata inclusion with the Registrable Securities; and provided,
  further, however, that, after giving effect to the immediately
  preceding proviso, any exclusion of Registrable Securities shall be made pro
  rata with holders of other securities having the right to include such securities
  in the Registration Statement other than holders of securities entitled to inclusion
  of their securities in such Registration Statement by reason of demand registration
  rights. No right to registration of Registrable Securities under this Section
  2(d) shall be construed to limit any registration required under Section 2(a)
  hereof. If an offering in connection with which an Investor is entitled to registration
  under this Section 2(d) is an underwritten offering, then each Investor whose
  Registrable Securities are included in such Registration Statement shall, unless
  otherwise agreed by the Company, offer and sell such Registrable Securities
  in an underwritten offering using the same underwriter or underwriters and,
  subject to the provisions of this Agreement, on the same terms and conditions
  as other shares of Common Stock included in such underwritten offering. Notwithstanding
  anything to the contrary set forth herein, the registration rights of the Investors
  pursuant to this Section 2(d) shall only be available in the event the Company
  fails to timely file, obtain effectiveness or maintain effectiveness of any
  Registration Statement to be filed pursuant to Section 2(a) in accordance with
  the terms of this Agreement. 

                              e.
  Eligibility for Form S-3, S-2, SB-2 or S-1; Conversion to Form
  S-3. The Company represents and warrants that it meets the
  requirements for the use of Form S-3, S-2, SB-2 or S-1 for registration of the
  sale by the Initial Investors and any other Investors of the Registrable Securities.
  The Company agrees to file all reports required to be filed by the Company with
  the SEC in a timely manner so as to remain eligible or become eligible, as the
  case may be, and thereafter to maintain its eligibility, for the use of Form
  S-3 or S-2. If the Company is not currently eligible to use Form S-3 or S-2,
  not later than five (5) 

4 

business days after the Company first meets the registration
eligibility and transaction requirements for the use of Form S-3 or S-2 (or any
successor form) for registration of the offer and sale by the Initial Investors
and any other Investors of Registrable Securities, the Company shall file a
Registration Statement on Form S-3 or S-2 (or such successor form) with respect
to the Registrable Securities covered by the Registration Statement on Form SB-2
or Form S-1, whichever is applicable, filed pursuant to Section 2(a) (and
include in such Registration Statement on Form S-3 or S-2 the information
required by Rule 429 under the 1933 Act) or convert the Registration Statement
on Form SB-2 or Form S-1, whichever is applicable, filed pursuant to Section
2(a) to a Form S-3 or S-2 pursuant to Rule 429 under the 1933 Act and cause such
Registration Statement (or such amendment) to be declared effective no later
than forty-five (45) days after filing. In the event of a breach by the Company
of the provisions of this Section 2(e), the Company will be required to make
payments pursuant to Section 2(c) hereof. 

                    3.
  OBLIGATIONS OF THE COMPANY. 

          In
  connection with the registration of the Registrable Securities, the Company
  shall have the following obligations: 

                              a.
  The Company shall prepare promptly, and file with the SEC not later than
  the Filing Date, a Registration Statement with respect to the number of Registrable
  Securities provided in Section 2(a), and thereafter use its best efforts to
  cause such Registration Statement relating to Registrable Securities to become
  effective as soon as possible after such filing but in no event later than ninety
  (90) days from the date of Closing), and keep the Registration Statement effective
  pursuant to Rule 415 at all times until such date as is the earlier of (i) the
  date on which all of the Registrable Securities have been sold and (ii) the
  date on which the Registrable Securities (in the opinion of counsel to the Initial
  Investors) may be immediately sold to the public without registration or restriction
  (including, without limitation, as to volume by each holder thereof) under the
  1933 Act (the “Registration Period”), which Registration Statement
  (including any amendments or supplements thereto and prospectuses contained
  therein) shall not contain any untrue statement of a material fact or omit to
  state a material fact required to be stated therein, or necessary to make the
  statements therein not misleading. 

                              b.
  The Company shall prepare and file with the SEC such amendments (including
  post-effective amendments) and supplements to the Registration Statements and
  the prospectus used in connection with the Registration Statements as may be
  necessary to keep the Registration Statements effective at all times during
  the Registration Period, and, during such period, comply with the provisions
  of the 1933 Act with respect to the disposition of all Registrable Securities
  of the Company covered by the Registration Statements until such time as all
  of such Registrable Securities have been disposed of in accordance with the
  intended methods of disposition by the seller or sellers thereof as set forth
  in the Registration Statements. In the event the number of shares available
  under a Registration Statement filed pursuant to this Agreement is insufficient
  to cover all of the Registrable Securities issued or issuable upon conversion
  of the Notes and exercise of the Warrants, the Company shall amend the Registration
  Statement, or file a new Registration Statement (on the short form available
  therefor, if applicable), or both, so as to cover all of the Registrable Securities,
  in each case, as soon as practicable, but in any event within fifteen (15) days
  after the necessity therefor arises (based on the market price of the Common
  Stock and other relevant factors on which the 

5 

Company reasonably elects to rely). The Company shall use its
best efforts to cause such amendment and/or new Registration Statement to become
effective as soon as practicable following the filing thereof, but in any event
within forty-five (45) days after the date on which the Company reasonably first
determines (or reasonably should have determined) the need therefor. The
provisions of Section 2(c) above shall be applicable with respect to such
obligation, with the one hundred thirty-five (135) days running from the day the
Company reasonably first determines (or reasonably should have determined) the
need therefor. 

                              c.
  The Company shall furnish to each Investor whose Registrable Securities
  are included in a Registration Statement and its legal counsel (i) promptly
  (but in no event more than two (2) business days) after the same is prepared
  and publicly distributed, filed with the SEC, or received by the Company, one
  copy of each Registration Statement and any amendment thereto, each preliminary
  prospectus and prospectus and each amendment or supplement thereto, and, in
  the case of the Registration Statement referred to in Section 2(a), each letter
  written by or on behalf of the Company to the SEC or the staff of the SEC, and
  each item of correspondence from the SEC or the staff of the SEC, in each case
  relating to such Registration Statement (other than any portion of any thereof
  which contains information for which the Company has sought confidential treatment),
  and (ii) promptly (but in no event more than two (2) business days) after the
  Registration Statement is declared effective by the SEC, such number of copies
  of a prospectus, including a preliminary prospectus, and all amendments and
  supplements thereto and such other documents as such Investor may reasonably
  request in order to facilitate the disposition of the Registrable Securities
  owned by such Investor. The Company will immediately notify each Investor by
  facsimile of the effectiveness of each Registration Statement or any post-effective
  amendment. The Company will promptly (but in no event more than ten (10) business
  days) respond to any and all comments received from the SEC (which comments
  shall promptly be made available to the Investors upon request), with a view
  towards causing each Registration Statement or any amendment thereto to be declared
  effective by the SEC as soon as practicable, shall promptly file an acceleration
  request as soon as practicable (but in no event more than two (2) business days)
  following the resolution or clearance of all SEC comments or, if applicable,
  following notification by the SEC that any such Registration Statement or any
  amendment thereto will not be subject to review and shall, if required by SEC
  rules, promptly file with the SEC a final prospectus as soon as practicable
  (but in no event more than two (2) business days) following receipt by the Company
  from the SEC of an order declaring the Registration Statement effective. In
  the event of a breach by the Company of the provisions of this Section 3(c),
  the Company will be required to make payments pursuant to Section 2(c) hereof.

                              d.
  The Company shall use reasonable efforts to (i) register and qualify the
  Registrable Securities covered by the Registration Statements under such other
  securities or “blue sky” laws of such jurisdictions in the United
  States as the Investors who hold a majority in interest of the Registrable Securities
  being offered reasonably request, (ii) prepare and file in those jurisdictions
  such amendments (including post-effective amendments) and supplements to such
  registrations and qualifications as may be necessary to maintain the effectiveness
  thereof during the Registration Period, (iii) take such other actions as may
  be necessary to maintain such registrations and qualifications in effect at
  all times during the Registration Period, and (iv) take all other actions reasonably
  necessary or advisable to qualify the Registrable Securities for sale in such
  jurisdictions; provided, however, that the Company 

6 

shall not be required in connection therewith or as a condition
thereto to (a) qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(d), (b) subject itself
to general taxation in any such jurisdiction, (c) file a general consent to
service of process in any such jurisdiction, (d) provide any undertakings that
cause the Company undue expense or burden, or (e) make any change in its charter
or bylaws, which in each case the Board of Directors of the Company determines
to be contrary to the best interests of the Company and its shareholders. 

                              e.
  In the event Investors who hold a majority-in-interest of the Registrable
  Securities being offered in the offering (with the approval of a majority-in-interest
  of the Initial Investors) select underwriters for the offering, the Company
  shall enter into and perform its obligations under an underwriting agreement,
  in usual and customary form, including, without limitation, customary indemnification
  and contribution obligations, with the underwriters of such offering. 

                              f.
  As promptly as practicable after becoming aware of such event, the Company
  shall notify each Investor of the happening of any event, of which the Company
  has knowledge, as a result of which the prospectus included in any Registration
  Statement, as then in effect, includes an untrue statement of a material fact
  or omission to state a material fact required to be stated therein or necessary
  to make the statements therein not misleading, and use its best efforts promptly
  to prepare a supplement or amendment to any Registration Statement to correct
  such untrue statement or omission, and deliver such number of copies of such
  supplement or amendment to each Investor as such Investor may reasonably request;
  provided that, for not more than ten (10) consecutive trading days (or a total
  of not more than twenty (20) trading days in any twelve (12) month period),
  the Company may delay the disclosure of material non-public information concerning
  the Company (as well as prospectus or Registration Statement updating) the disclosure
  of which at the time is not, in the good faith opinion of the Company, in the
  best interests of the Company (an “Allowed Delay”); provided,
  further, that the Company shall promptly (i) notify the Investors in writing
  of the existence of (but in no event, without the prior written consent of an
  Investor, shall the Company disclose to such investor any of the facts or circumstances
  regarding) material non-public information giving rise to an Allowed Delay and
  (ii) advise the Investors in writing to cease all sales under such Registration
  Statement until the end of the Allowed Delay. Upon expiration of the Allowed
  Delay, the Company shall again be bound by the first sentence of this Section
  3(f) with respect to the information giving rise thereto. 

                              g.
  The Company shall use its best efforts to prevent the issuance of any stop
  order or other suspension of effectiveness of any Registration Statement, and,
  if such an order is issued, to obtain the withdrawal of such order at the earliest
  possible moment and to notify each Investor who holds Registrable Securities
  being sold (or, in the event of an underwritten offering, the managing underwriters)
  of the issuance of such order and the resolution thereof. 

                              h.
  The Company shall permit a single firm of counsel designated by the Initial
  Investors to review such Registration Statement and all amendments and supplements
  thereto (as well as all requests for acceleration or effectiveness thereof)
  not less than three (3) business days prior to their filing with the SEC, and
  not file any document in a form to which such counsel reasonably objects and
  will not request acceleration of such Registration Statement 

7 

without prior notice to such counsel. The sections of such
Registration Statement covering information with respect to the Investors, the
Investor’s beneficial ownership of securities of the Company or the Investors
intended method of disposition of Registrable Securities shall conform to the
information provided to the Company by each of the Investors. 

                              i.
  The Company shall make generally available to its security holders as soon
  as practicable, but not later than ninety (90) days after the close of the period
  covered thereby, an earnings statement (in form complying with the provisions
  of Rule 158 under the 1933 Act) covering a twelve-month period beginning not
  later than the first day of the Company’s fiscal quarter next following
  the effective date of the Registration Statement. 

                              j.
  At the request of any Investor, the Company shall furnish, on the date that
  Registrable Securities are delivered to an underwriter, if any, for sale in
  connection with any Registration Statement or, if such securities are not being
  sold by an underwriter, on the date of effectiveness thereof (i) an opinion,
  dated as of such date, from counsel representing the Company for purposes of
  such Registration Statement, in form, scope and substance as is customarily
  given in an underwritten public offering, addressed to the underwriters, if
  any, and the Investors and (ii) a letter, dated such date, from the Company’s
  independent certified public accountants in form and substance as is customarily
  given by independent certified public accountants to underwriters in an underwritten
  public offering, addressed to the underwriters, if any, and the Investors. 

                              k.
  The Company shall make available for inspection by (i) any Investor, (ii)
  any underwriter participating in any disposition pursuant to a Registration
  Statement, (iii) one firm of attorneys and one firm of accountants or other
  agents retained by the Initial Investors, (iv) one firm of attorneys and one
  firm of accountants or other agents retained by all other Investors, and (v)
  one firm of attorneys retained by all such underwriters (collectively, the “Inspectors”)
  all pertinent financial and other records, and pertinent corporate documents
  and properties of the Company, including without limitation, records of conversions
  by other holders of convertible securities issued by the Company and the issuance
  of stock to such holders pursuant to the conversions (collectively, the “Records”),
  as shall be reasonably deemed necessary by each Inspector to enable each Inspector
  to exercise its due diligence responsibility, and cause the Company’s officers,
  directors and employees to supply all information which any Inspector may reasonably
  request for purposes of such due diligence; provided, however,
  that each Inspector shall hold in confidence and shall not make any disclosure
  (except to an Investor) of any Record or other information which the Company
  determines in good faith to be confidential, and of which determination the
  Inspectors are so notified, unless (a) the disclosure of such Records is necessary
  to avoid or correct a misstatement or omission in any Registration Statement,
  (b) the release of such Records is ordered pursuant to a subpoena or other order
  from a court or government body of competent jurisdiction, or (c) the information
  in such Records has been made generally available to the public other than by
  disclosure in violation of this or any other agreement. The Company shall not
  be required to disclose any confidential information in such Records to any
  Inspector until and unless such Inspector shall have entered into confidentiality
  agreements (in form and substance satisfactory to the Company) with the Company
  with respect thereto, substantially in the form of this Section 3(k). Each Investor
  agrees that it shall, upon learning that disclosure of such Records is sought
  in or by a court or governmental body of competent jurisdiction or through other
  means, give 

8 

prompt notice to the Company and allow the Company, at its
expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order for, the Records deemed confidential. Nothing herein (or in
any other confidentiality agreement between the Company and any Investor) shall
be deemed to limit the Investor’s ability to sell Registrable Securities in a
manner which is otherwise consistent with applicable laws and regulations.

                              l.
  The Company shall hold in confidence and not make any disclosure of information
  concerning an Investor provided to the Company unless (i) disclosure of such
  information is necessary to comply with federal or state securities laws, (ii)
  the disclosure of such information is necessary to avoid or correct a misstatement
  or omission in any Registration Statement, (iii) the release of such information
  is ordered pursuant to a subpoena or other order from a court or governmental
  body of competent jurisdiction, or (iv) such information has been made generally
  available to the public other than by disclosure in violation of this or any
  other agreement. The Company agrees that it shall, upon learning that disclosure
  of such information concerning an Investor is sought in or by a court or governmental
  body of competent jurisdiction or through other means, give prompt notice to
  such Investor prior to making such disclosure, and allow the Investor, at its
  expense, to undertake appropriate action to prevent disclosure of, or to obtain
  a protective order for, such information. 

                              m.
  The Company shall (i) cause all the Registrable Securities covered by the
  Registration Statement to be listed on each national securities exchange on
  which securities of the same class or series issued by the Company are then
  listed, if any, if the listing of such Registrable Securities is then permitted
  under the rules of such exchange, or (ii) to the extent the securities of the
  same class or series are not then listed on a national securities exchange,
  secure the designation and quotation, of all the Registrable Securities covered
  by the Registration Statement on Nasdaq or, if not eligible for Nasdaq, on Nasdaq
  SmallCap or, if not eligible for Nasdaq or Nasdaq SmallCap, on the OTCBB and,
  without limiting the generality of the foregoing, to arrange for at least two
  market makers to register with the National Association of Securities Dealers,
  Inc. (“NASD”) as such with respect to such Registrable Securities.

                              n.
  The Company shall provide a transfer agent and registrar, which may be a
  single entity, for the Registrable Securities not later than the effective date
  of the Registration Statement. 

                              o.
  The Company shall cooperate with the Investors who hold Registrable Securities
  being offered and the managing underwriter or underwriters, if any, to facilitate
  the timely preparation and delivery of certificates (not bearing any restrictive
  legends) representing Registrable Securities to be offered pursuant to a Registration
  Statement and enable such certificates to be in such denominations or amounts,
  as the case may be, as the managing underwriter or underwriters, if any, or
  the Investors may reasonably request and registered in such names as the managing
  underwriter or underwriters, if any, or the Investors may request, and, within
  three (3) business days after a Registration Statement which includes Registrable
  Securities is ordered effective by the SEC, the Company shall deliver, and shall
  cause legal counsel selected by the Company to deliver, to the transfer agent
  for the Registrable Securities (with copies to the Investors whose Registrable
  Securities are included in such Registration Statement) an instruction in the
  form attached hereto as Exhibit 1 and an opinion of such counsel in the
  form attached hereto as Exhibit 2. 

9 

                              p.
  At the request of the holders of a majority-in-interest of the Registrable
  Securities, the Company shall prepare and file with the SEC such amendments
  (including post-effective amendments) and supplements to a Registration Statement
  and any prospectus used in connection with the Registration Statement as may
  be necessary in order to change the plan of distribution set forth in such Registration
  Statement. 

                              q.
  From and after the date of this Agreement, the Company shall not, and shall
  not agree to, allow the holders of any securities of the Company to include
  any of their securities in any Registration Statement under Section 2(a) hereof
  or any amendment or supplement thereto under Section 3(b) hereof without the
  consent of the holders of a majority-in-interest of the Registrable Securities.

                              r.
  The Company shall take all other reasonable actions necessary to expedite
  and facilitate disposition by the Investors of Registrable Securities pursuant
  to a Registration Statement. 

                    4.
  OBLIGATIONS OF THE INVESTORS. 

          In
  connection with the registration of the Registrable Securities, the Investors
  shall have the following obligations: 

                              a.
  It shall be a condition precedent to the obligations of the Company to complete
  the registration pursuant to this Agreement with respect to the Registrable
  Securities of a particular Investor that such Investor shall furnish to the
  Company such information regarding itself, the Registrable Securities held by
  it and the intended method of disposition of the Registrable Securities held
  by it as shall be reasonably required to effect the registration of such Registrable
  Securities and shall execute such documents in connection with such registration
  as the Company may reasonably request. At least three (3) business days prior
  to the first anticipated filing date of the Registration Statement, the Company
  shall notify each Investor of the information the Company requires from each
  such Investor.

                              b.
  Each Investor, by such Investor’s acceptance of the Registrable Securities,
  agrees to cooperate with the Company as reasonably requested by the Company
  in connection with the preparation and filing of the Registration Statements
  hereunder, unless such Investor has notified the Company in writing of such
  Investor’s election to exclude all of such Investor’s Registrable
  Securities from the Registration Statements. 

                              c.
  In the event Investors holding a majority-in-interest of the Registrable
  Securities being registered (with the approval of the Initial Investors) determine
  to engage the services of an underwriter, each Investor agrees to enter into
  and perform such Investor’s obligations under an underwriting agreement,
  in usual and customary form, including, without limitation, customary indemnification
  and contribution obligations, with the managing underwriter of such offering
  and take such other actions as are reasonably required in order to expedite
  or facilitate the disposition of the Registrable Securities, unless such Investor
  has notified the Company in writing of such Investor’s election to exclude
  all of such Investor’s Registrable Securities from such Registration Statement.

10 

                              d.
  Each Investor agrees that, upon receipt of any notice from the Company of
  the happening of any event of the kind described in Section 3(f) or 3(g), such
  Investor will immediately discontinue disposition of Registrable Securities
  pursuant to the Registration Statement covering such Registrable Securities
  until such Investor’s receipt of the copies of the supplemented or amended
  prospectus contemplated by Section 3(f) or 3(g) and, if so directed by the Company,
  such Investor shall deliver to the Company (at the expense of the Company) or
  destroy (and deliver to the Company a certificate of destruction) all copies
  in such Investor’s possession, of the prospectus covering such Registrable
  Securities current at the time of receipt of such notice. 

                              e.
  No Investor may participate in any underwritten registration hereunder unless
  such Investor (i) agrees to sell such Investor’s Registrable Securities
  on the basis provided in any underwriting arrangements in usual and customary
  form entered into by the Company, (ii) completes and executes all questionnaires,
  powers of attorney, indemnities, underwriting agreements and other documents
  reasonably required under the terms of such underwriting arrangements, and (iii)
  agrees to pay its pro rata share of all underwriting discounts and commissions
  and any expenses in excess of those payable by the Company pursuant to Section
  5 below. 

                    5.
  EXPENSES OF REGISTRATION. 

          All
  reasonable expenses, other than underwriting discounts and commissions, incurred
  in connection with registrations, filings or qualifications pursuant to Sections
  2 and 3, including, without limitation, all registration, listing and qualification
  fees, printers and accounting fees, the fees and disbursements of counsel for
  the Company, and the reasonable fees and disbursements of one counsel selected
  by the Initial Investors pursuant to Sections 2(b) and 3(h) hereof shall be
  borne by the Company. 

                    6.
  INDEMNIFICATION. 

          In
  the event any Registrable Securities are included in a Registration Statement
  under this Agreement: 

                              a.
  To the extent permitted by law, the Company will indemnify, hold harmless
  and defend (i) each Investor who holds such Registrable Securities, (ii) the
  directors, officers, partners, employees, agents and each person who controls
  any Investor within the meaning of the 1933 Act or the Securities Exchange Act
  of 1934, as amended (the “1934 Act”), if any, (iii) any underwriter
  (as defined in the 1933 Act) for the Investors, and (iv) the directors, officers,
  partners, employees and each person who controls any such underwriter within
  the meaning of the 1933 Act or the 1934 Act, if any (each, an “Indemnified
  Person”), against any joint or several losses, claims, damages, liabilities
  or expenses (collectively, together with actions, proceedings or inquiries by
  any regulatory or self-regulatory organization, whether commenced or threatened,
  in respect thereof, “Claims”) to which any of them may become
  subject insofar as such Claims arise out of or are based upon: (i) any untrue
  statement or alleged untrue statement of a material fact in a Registration Statement
  or the omission or alleged omission to state therein a material fact required
  to be stated or necessary to make the statements therein not misleading; (ii)
  any untrue statement or alleged untrue statement of a material fact 

11 

contained in any preliminary prospectus if used prior to the
effective date of such Registration Statement, or contained in the final
prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made
therein, in light of the circumstances under which the statements therein were
made, not misleading; or (iii) any violation or alleged violation by the Company
of the 1933 Act, the 1934 Act, any other law, including, without limitation, any
state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable Securities (the matters in the foregoing clauses (i)
through (iii) being, collectively, “Violations”). Subject to the
restrictions set forth in Section 6(c) with respect to the number of legal
counsel, the Company shall reimburse the Indemnified Person, promptly as such
expenses are incurred and are due and payable, for any reasonable legal fees or
other reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall
not apply to a Claim arising out of or based upon a Violation which occurs in
reliance upon and in conformity with information furnished in writing to the
Company by any Indemnified Person or underwriter for such Indemnified Person
expressly for use in connection with the preparation of such Registration
Statement or any such amendment thereof or supplement thereto, if such
prospectus was timely made available by the Company pursuant to Section 3(c)
hereof; (ii) shall not apply to amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of the Company, which
consent shall not be unreasonably withheld; and (iii) with respect to any
preliminary prospectus, shall not inure to the benefit of any Indemnified Person
if the untrue statement or omission of material fact contained in the
preliminary prospectus was corrected on a timely basis in the prospectus, as
then amended or supplemented, such corrected prospectus was timely made
available by the Company pursuant to Section 3(c) hereof, and the Indemnified
Person was promptly advised in writing not to use the incorrect prospectus prior
to the use giving rise to a Violation and such Indemnified Person,
notwithstanding such advice, used it. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of the
Indemnified Person and shall survive the transfer of the Registrable Securities
by the Investors pursuant to Section 9. 

                              b.
  In connection with any Registration Statement in which an Investor is participating,
  each such Investor agrees severally and not jointly to indemnify, hold harmless
  and defend, to the same extent and in the same manner set forth in Section 6(a),
  the Company, each of its directors, each of its officers who signs the Registration
  Statement, each person, if any, who controls the Company within the meaning
  of the 1933 Act or the 1934 Act, any underwriter and any other shareholder selling
  securities pursuant to the Registration Statement or any of its directors or
  officers or any person who controls such shareholder or underwriter within the
  meaning of the 1933 Act or the 1934 Act (collectively and together with an Indemnified
  Person, an “Indemnified Party”), against any Claim to which
  any of them may become subject, under the 1933 Act, the 1934 Act or otherwise,
  insofar as such Claim arises out of or is based upon any Violation by such Investor,
  in each case to the extent (and only to the extent) that such Violation occurs
  in reliance upon and in conformity with written information furnished to the
  Company by such Investor expressly for use in connection with such Registration
  Statement; and subject to Section 6(c) such Investor will reimburse any legal
  or other expenses (promptly as such expenses are incurred and are due and payable)
  reasonably incurred by them in connection with investigating or defending any
  such Claim; provided, 

12 

however, that the indemnity agreement contained in this
Section 6(b) shall not apply to amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of such Investor, which
consent shall not be unreasonably withheld; provided, further,
however, that the Investor shall be liable under this Agreement
(including this Section 6(b) and Section 7) for only that amount as does not
exceed the net proceeds to such Investor as a result of the sale of Registrable
Securities pursuant to such Registration Statement. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of
such Indemnified Party and shall survive the transfer of the Registrable
Securities by the Investors pursuant to Section 9. Notwithstanding anything to
the contrary contained herein, the indemnification agreement contained in this
Section 6(b) with respect to any preliminary prospectus shall not inure to the
benefit of any Indemnified Party if the untrue statement or omission of material
fact contained in the preliminary prospectus was corrected on a timely basis in
the prospectus, as then amended or supplemented. 

                              c.
  Promptly after receipt by an Indemnified Person or Indemnified Party under
  this Section 6 of notice of the commencement of any action (including any governmental
  action), such Indemnified Person or Indemnified Party shall, if a Claim in respect
  thereof is to be made against any indemnifying party under this Section 6, deliver
  to the indemnifying party a written notice of the commencement thereof, and
  the indemnifying party shall have the right to participate in, and, to the extent
  the indemnifying party so desires, jointly with any other indemnifying party
  similarly noticed, to assume control of the defense thereof with counsel mutually
  satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
  Party, as the case may be; provided, however, that an Indemnified
  Person or Indemnified Party shall have the right to retain its own counsel with
  the fees and expenses to be paid by the indemnifying party, if, in the reasonable
  opinion of counsel retained by the indemnifying party, the representation by
  such counsel of the Indemnified Person or Indemnified Party and the indemnifying
  party would be inappropriate due to actual or potential differing interests
  between such Indemnified Person or Indemnified Party and any other party represented
  by such counsel in such proceeding. The indemnifying party shall pay for only
  one separate legal counsel for the Indemnified Persons or the Indemnified Parties,
  as applicable, and such legal counsel shall be selected by Investors holding
  a majority-in-interest of the Registrable Securities included in the Registration
  Statement to which the Claim relates (with the approval of a majority-in-interest
  of the Initial Investors), if the Investors are entitled to indemnification
  hereunder, or the Company, if the Company is entitled to indemnification hereunder,
  as applicable. The failure to deliver written notice to the indemnifying party
  within a reasonable time of the commencement of any such action shall not relieve
  such indemnifying party of any liability to the Indemnified Person or Indemnified
  Party under this Section 6, except to the extent that the indemnifying party
  is actually prejudiced in its ability to defend such action. The indemnification
  required by this Section 6 shall be made by periodic payments of the amount
  thereof during the course of the investigation or defense, as such expense,
  loss, damage or liability is incurred and is due and payable. 

                    7.
  CONTRIBUTION. 

          To
  the extent any indemnification by an indemnifying party is prohibited or limited
  by law, the indemnifying party agrees to make the maximum contribution with
  respect to any amounts for which it would otherwise be liable under Section
  6 to the fullest extent permitted by 

13 

law; provided, however, that (i) no contribution
shall be made under circumstances where the maker would not have been liable for
indemnification under the fault standards set forth in Section 6, (ii) no seller
of Registrable Securities guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from
any seller of Registrable Securities who was not guilty of such fraudulent
misrepresentation, and (iii) contribution (together with any indemnification or
other obligations under this Agreement) by any seller of Registrable Securities
shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities. 

                    8.
  REPORTS UNDER THE 1934 ACT. 

          With
  a view to making available to the Investors the benefits of Rule 144 promulgated
  under the 1933 Act or any other similar rule or regulation of the SEC that may
  at any time permit the investors to sell securities of the Company to the public
  without registration (“Rule 144”), the Company agrees to: 

                              a.
  make and keep public information available, as those terms are understood
  and defined in Rule 144; 

                              b.
  file with the SEC in a timely manner all reports and other documents required
  of the Company under the 1933 Act and the 1934 Act so long as the Company remains
  subject to such requirements (it being understood that nothing herein shall
  limit the Company’s obligations under Section 4(c) of the Securities Purchase
  Agreement) and the filing of such reports and other documents is required for
  the applicable provisions of Rule 144; and 

                              c.
  furnish to each Investor so long as such Investor owns Registrable Securities,
  promptly upon request, (i) a written statement by the Company that it has complied
  with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act,
  (ii) a copy of the most recent annual or quarterly report of the Company and
  such other reports and documents so filed by the Company, and (iii) such other
  information as may be reasonably requested to permit the Investors to sell such
  securities pursuant to Rule 144 without registration. 

                    9.
  ASSIGNMENT OF REGISTRATION RIGHTS. 

          The
  rights under this Agreement shall be automatically assignable by the Investors
  to any transferee of all or any portion of Registrable Securities if: (i) the
  Investor agrees in writing with the transferee or assignee to assign such rights,
  and a copy of such agreement is furnished to the Company within a reasonable
  time after such assignment, (ii) the Company is, within a reasonable time after
  such transfer or assignment, furnished with written notice of (a) the name and
  address of such transferee or assignee, and (b) the securities with respect
  to which such registration rights are being transferred or assigned, (iii) following
  such transfer or assignment, the further disposition of such securities by the
  transferee or assignee is restricted under the 1933 Act and applicable state
  securities laws, (iv) at or before the time the Company receives the written
  notice contemplated by clause (ii) of this sentence, the transferee or assignee
  agrees in writing with the Company to be bound by all of the provisions contained
  herein, (v) such transfer shall have been made in accordance with the applicable
  requirements of the Securities Purchase 

14 

Agreement, and (vi) such transferee shall be an “accredited
investor” as that term defined in Rule 501 of Regulation D promulgated under
the 1933 Act. 

                    10.
  AMENDMENT OF REGISTRATION RIGHTS. 

          Provisions
  of this Agreement may be amended and the observance thereof may be waived (either
  generally or in a particular instance and either retroactively or prospectively),
  only with written consent of the Company, each of the Initial Investors (to
  the extent such Initial Investor still owns Registrable Securities) and Investors
  who hold a majority interest of the Registrable Securities. Any amendment or
  waiver effected in accordance with this Section 10 shall be binding upon each
  Investor and the Company. 

                    11.
  MISCELLANEOUS. 

                              a.
  A person or entity is deemed to be a holder of Registrable Securities whenever
  such person or entity owns of record such Registrable Securities. If the Company
  receives conflicting instructions, notices or elections from two or more persons
  or entities with respect to the same Registrable Securities, the Company shall
  act upon the basis of instructions, notice or election received from the registered
  owner of such Registrable Securities. 

                              b.
  Any notices required or permitted to be given under the terms hereof shall
  be sent by certified or registered mail (return receipt requested) or delivered
  personally or by courier (including a recognized overnight delivery service)
  or by facsimile and shall be effective five days after being placed in the mail,
  if mailed by regular United States mail, or upon receipt, if delivered personally
  or by courier (including a recognized overnight delivery service) or by facsimile,
  in each case addressed to a party. The addresses for such communications shall
  be: 

	 	If to the Company: 
	 	  
	 	Banyan Corporation 
	 	1925 Century Park East, Suite 500 
	 	Los Angeles, California 90067 
	 	Attention: Chief Executive Officer 
	 	Telephone: 800-808-0899 
	 	Facsimile: 403-287-8804 
	 	  
	 	With a copy to: 
	 	  
	 	Noel E. Guardi, Esq. 
	 	P. O. Box 381 
	 	Pinecliffe, Colorado 80471 
	 	Telephone: 303-969-8886 
	 	Facsimile: 303-969-8887 

15 

If to an Investor: to the address set forth immediately below
such Investor’s name on the signature pages to the Securities Purchase
Agreement.

	 	With a copy to: 
	 	  
	 	Ballard Spahr Andrews & Ingersoll, LLP
  
	 	1735 Market Street 
	 	51st Floor 
	 	Philadelphia, Pennsylvania 19103 
	 	Attention: Gerald J. Guarcini, Esq. 
	 	Telephone: 215-865-8625 
	 	Facsimile: 215-864-8999 

                              c.
  Failure of any party to exercise any right or remedy under this Agreement
  or otherwise, or delay by a party in exercising such right or remedy, shall
  not operate as a waiver thereof. 

                              d.
  THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE
  WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO
  BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF
  CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION
  OF THE UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH RESPECT
  TO ANY DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN
  CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH
  PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
  OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
  UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
  SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
  SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
  PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN
  ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
  JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY
  WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE
  RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED
  BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE. 

                              e.
  In the event that any provision of this Agreement is invalid or unenforceable
  under any applicable statute or rule of law, then such provision shall be deemed
  inoperative to the extent that it may conflict therewith and shall be deemed
  modified to conform with such statute or rule of law. Any provision hereof which
  may prove invalid or unenforceable under any law shall not affect the validity
  or enforceability of any other provision hereof. 

16 

                              f.
  This Agreement, the Notes, the Warrants and the Securities Purchase Agreement
  (including all schedules and exhibits thereto) constitute the entire agreement
  among the parties hereto with respect to the subject matter hereof and thereof.
  There are no restrictions, promises, warranties or undertakings, other than
  those set forth or referred to herein and therein. This Agreement and the Securities
  Purchase Agreement supersede all prior agreements and understandings among the
  parties hereto with respect to the subject matter hereof and thereof. 

                              g.
  Subject to the requirements of Section 9 hereof, this Agreement shall be
  binding upon and inure to the benefit of the parties and their successors and
  assigns. 

                              h.
  The headings in this Agreement are for convenience of reference only and
  shall not form part of, or affect the interpretation of, this Agreement. 

                              i.
  This Agreement may be executed in two or more counterparts, each of which
  shall be deemed an original but all of which shall constitute one and the same
  agreement and shall become effective when counterparts have been signed by each
  party and delivered to the other party. This Agreement, once executed by a party,
  may be delivered to the other party hereto by facsimile transmission of a copy
  of this Agreement bearing the signature of the party so delivering this Agreement.

                              j.
  Each party shall do and perform, or cause to be done and performed, all
  such further acts and things, and shall execute and deliver all such other agreements,
  certificates, instruments and documents, as the other party may reasonably request
  in order to carry out the intent and accomplish the purposes of this Agreement
  and the consummation of the transactions contemplated hereby. 

                              k.
  Except as otherwise provided herein, all consents and other determinations
  to be made by the Investors pursuant to this Agreement shall be made by Investors
  holding a majority of the Registrable Securities, determined as if the all of
  the Notes then outstanding have been converted into for Registrable Securities.

                              l.
  The Company acknowledges that a breach by it of its obligations hereunder
  will cause irreparable harm to each Investor by vitiating the intent and purpose
  of the transactions contemplated hereby. Accordingly, the Company acknowledges
  that the remedy at law for breach of its obligations under this Agreement will
  be inadequate and agrees, in the event of a breach or threatened breach by the
  Company of any of the provisions under this Agreement, that each Investor shall
  be entitled, in addition to all other available remedies in law or in equity,
  and in addition to the penalties assessable herein, to an injunction or injunctions
  restraining, preventing or curing any breach of this Agreement and to enforce
  specifically the terms and provisions hereof, without the necessity of showing
  economic loss and without any bond or other security being required. 

                              m.
  The language used in this Agreement will be deemed to be the language chosen
  by the parties to express their mutual intent, and no rules of strict construction
  will be applied against any party. 

17 

          IN
  WITNESS WHEREOF, the Company and the undersigned Initial Investors have
  caused this Agreement to be duly executed as of the date first above written.

BANYAN CORPORATION 

______________________________________
Michael J. Gelmon

Chief Executive Officer 

AJW PARTNERS, LLC
By: SMS Group, LLC 

______________________________________
Corey S. Ribotsky

Manager

AJW OFFSHORE, LTD.
By: First Street Manager II, LLC

______________________________________
Corey S. Ribotsky

Manager 

AJW QUALIFIED PARTNERS, LLC 
By: AJW Manager, LLC

____________________________________
Corey S. Ribotsky

Manager 

NEW MILLENNIUM CAPITAL PARTNERS, II, LLC 
By: First
Street Manager II, LLC 

______________________________________
Corey S. Ribotsky

Manager 

18Filed by Automated Filing Services Inc. (604) 609-0244 - Banyan Corporation - Exhibit 4.19

SECURITY AGREEMENT 

          SECURITY
  AGREEMENT (this “Agreement”), dated as of _______, 200__ by
  and among Banyan Corporation, an Oregon corporation (the “Company”),
  and the secured parties signatory hereto and their respective endorsees, transferees
  and assigns (collectively, the “Secured Party”).

W I T N E S S E T H: 

          WHEREAS,
  pursuant to a Securities Purchase Agreement, dated the date hereof, between
  the Company and the Secured Party (the “Purchase Agreement”),
  the Company has agreed to issue to the Secured Party and the Secured Party has
  agreed to purchase from the Company certain of the Company’s 8% Secured
  Convertible Notes, due three years from the date of issue (the “Notes”),
  which are convertible into shares of the Company’s Common Stock, no par
  value per share (the “Common Stock”). In connection therewith,
  the Company shall issue the Secured Party certain Common Stock purchase warrants
  (the “Warrants”); and 

          WHEREAS,
  in order to induce the Secured Party to purchase the Notes, the Company has
  agreed to execute and deliver to the Secured Party this Agreement for the benefit
  of the Secured Party and to grant to it a first priority security interest in
  certain property of the Company to secure the prompt payment, performance and
  discharge in full of all of the Company’s obligations under the Notes and
  exercise and discharge in full of the Company’s obligations under the Warrants.

          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
  “general intangibles” and “proceeds”) shall
  have the respective meanings given such terms in Article 9 of the UCC. 

                    (a)
  “Collateral” means the collateral in which the Secured Party
  is granted a security interest by this Agreement and which shall include the
  following, whether presently owned or existing or hereafter acquired or coming
  into existence, 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:

                    (i)
  All Goods of the Company, including, without limitations, 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 the Company’s
businesses and all improvements thereto (collectively, the “Equipment”);
and 

                    (ii)
  All Inventory of the Company; and 

                    (iii)
  All of the Company’s contract rights and general intangibles, including,
  without limitation, all partnership interests, stock or other securities, licenses,
  distribution and other agreements, 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, deposit accounts, and income tax refunds (collectively, the “General
  Intangibles”); and 

                    (iv)
  All Receivables of the Company including all insurance proceeds, and rights
  to refunds or indemnification whatsoever owing, 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 Receivable, including any right of stoppage in transit; and 

                    (v)
  All of the Company’s documents, instruments and chattel paper, files, records,
  books of account, business papers, computer programs and the products and proceeds
  of all of the foregoing Collateral set forth in clauses (i)-(iv) above. 

                    (b)
  “Company” shall mean, collectively, the Company and all of
  the subsidiaries of the Company, a list of which is contained in Schedule
  A, attached hereto. 

                    (c)
  “Obligations” means all of the Company’s obligations under
  this Agreement and the Notes, 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 decreased, 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 the Secured Party as a preference, fraudulent transfer
  or otherwise as such obligations may be amended, supplemented, converted, extended
  or modified from time to time. 

                    (d)
  “UCC” means the Uniform Commercial Code, as currently in effect
  in the State of New York. 

          2.
  Grant of Security Interest. As an inducement for the Secured Party to
  purchase the Notes and to secure the complete and timely payment, performance
  and discharge in full, as the case may be, of all of the Obligations, the Company
  hereby, unconditionally and irrevocably, pledges, grants and hypothecates to
  the Secured Party, a continuing security interest in, a continuing first lien
  upon, an unqualified right to possession and disposition of and a right of set-off
  against, in each case to the fullest extent permitted by law, all of the Company’s
  right, title and interest of whatsoever kind and nature in and to the Collateral
  (the “Security Interest”). 

2 

          3.
  Representations, Warranties, Covenants and Agreements of the Company.
  The Company represents and warrants to, and covenants and agrees with, the Secured
  Party as follows:

                    (a)
  The Company has the requisite corporate power and authority to enter into this
  Agreement and otherwise to carry out its obligations thereunder. The execution,
  delivery and performance by the Company of this Agreement and the filings contemplated
  therein have been duly authorized by all necessary action on the part of the
  Company and no further action is required by the Company. This Agreement constitutes
  a legal, valid and binding obligation of the Company enforceable in accordance
  with its terms, except as enforceability may be limited by bankruptcy, insolvency,
  reorganization, moratorium or similar laws affecting the enforcement of creditor’s
  rights generally. 

                    (b)
  The Company represents and warrants that it has no place of business or offices
  where its 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;

                    (c)
  The Company is the sole owner of the Collateral (except for non-exclusive licenses
  granted by the Company in the ordinary course of business), free and clear of
  any liens, security interests, encumbrances, rights or claims, and is fully
  authorized to grant the Security Interest in and to pledge the Collateral. 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 have been filed
  in favor of the Secured Party pursuant to this Agreement) covering or affecting
  any of the Collateral. So long as this Agreement shall be in effect, the Company
  shall not execute and shall not knowingly permit to be on file in any such office
  or agency any such financing statement or other document or instrument (except
  to the extent filed or recorded in favor of the Secured Party pursuant to the
  terms of this Agreement). 

                    (d)
  No part of the Collateral has been judged invalid or unenforceable. No written
  claim has been received that any Collateral or the Company’s use of any
  Collateral violates the rights of any third party. There has been no adverse
  decision to the Company’s claim of ownership rights in or exclusive rights
  to use the Collateral in any jurisdiction or to the Company’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 the Company,
  threatened before any court, judicial body, administrative or regulatory agency,
  arbitrator or other governmental authority.

                    (e)
  The Company 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 Party 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 and other necessary
  documents have been filed and recorded and other steps have been taken to perfect
  the Security 

3 

Interest to create in favor of the Secured Party valid,
perfected and continuing first priority liens in the Collateral.

                    (f)
  This Agreement creates in favor of the Secured Party a valid security interest
  in the Collateral securing the payment and performance of the Obligations and,
  upon making the filings described in the immediately following sentence, a perfected
  first priority security interest in such Collateral. Except for the filing of
  financing statements on Form-1 under the UCC with the jurisdictions indicated
  on Schedule B, attached hereto, no authorization or approval of or filing
  with or notice to any governmental authority or regulatory body is required
  either (i) for the grant by the Company of, or the effectiveness of, the Security
  Interest granted hereby or for the execution, delivery and performance of this
  Agreement by the Company or (ii) for the perfection of or exercise by the Secured
  Party of its rights and remedies hereunder.

                    (g)
  On the date of execution of this Agreement, the Company will deliver to the
  Secured Party one or more executed UCC financing statements on Form-1 with respect
  to the Security Interest for filing with the jurisdictions indicated on Schedule
  B, attached hereto and in such other jurisdictions as may be requested by
  the Secured Party. 

                    (h)
  The execution, delivery and performance of this Agreement does not conflict
  with or cause a breach or default, or an event that with or without the passage
  of time or notice, shall constitute a breach or default, under any agreement
  to which the Company is a party or by which the Company is bound. No consent
  (including, without limitation, from stock holders or creditors of the Company)
  is required for the Company to enter into and perform its obligations hereunder.

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

                    (j)
  The Company will not transfer, pledge, hypothecate, encumber, license (except
  for non-exclusive licenses granted by the Company in the ordinary course of
  business), sell or otherwise dispose of any of the Collateral without the prior
  written consent of the Secured Party. 

4 

                    (k)
  The Company 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. 

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

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

                    (n)
  The Company shall permit the Secured Party and its representatives and agents
  to inspect the Collateral at any time, and to make copies of records pertaining
  to the Collateral as may be requested by the Secured Party from time to time.

                    (o)
  The Company will 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. 

                    (p)
  The Company shall promptly notify the Secured Party 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 the Company
  that may materially affect the value of the Collateral, the Security Interest
  or the rights and remedies of the Secured Party hereunder. 

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

                    (r)
  Schedule A attached hereto contains a list of all of the subsidiaries
  of Company. 

          4.
  Defaults. The following events shall be “Events of Default”:

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

5 

                    (b)
  Any representation or warranty of the Company in this Agreement or in the Intellectual
  Property Security Agreement shall prove to have been incorrect in any material
  respect when made;

                    (c)
  The failure by the Company to observe or perform any of its obligations hereunder
  or in the Intellectual Property Security Agreement for ten (10) days after receipt
  by the Company of notice of such failure from the Secured Party; and 

                    (d)
  Any breach of, or default under, the Warrants. 

          5.
  Duty To Hold In Trust. Upon the occurrence of any Event of Default and
  at any time thereafter, the Company shall, upon receipt by it of any revenue,
  income or other sums subject to the Security Interest, whether payable pursuant
  to the Notes or otherwise, or of any check, draft, note, trade acceptance or
  other instrument evidencing an obligation to pay any such sum, hold the same
  in trust for the Secured Party and shall forthwith endorse and transfer any
  such sums or instruments, or both, to the Secured Party for application to the
  satisfaction of the Obligations. 

          6.
  Rights and Remedies Upon Default. Upon occurrence of any Event of Default
  and at any time thereafter, the Secured Party shall have the right to exercise
  all of the remedies conferred hereunder and under the Notes, and the Secured
  Party shall have all the rights and remedies of a secured party under the UCC
  and/or any other applicable law (including the Uniform Commercial Code of any
  jurisdiction in which any Collateral is then located). Without limitation, the
  Secured Party shall have the following rights and powers: 

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

                    (b)
  The Secured Party shall have the right to operate the business of the Company
  using the Collateral and shall have the right to assign, sell, lease or otherwise
  dispose of and deliver all or any part of the Collateral, at public or private
  sale or otherwise, either with or without special conditions or stipulations,
  for cash or on credit or for future delivery, in such parcel or parcels and
  at such time or times and at such place or places, and upon such terms and conditions
  as the Secured Party 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 the Company or right of redemption of the Company,
  which are hereby expressly waived. Upon each such sale, lease, assignment or
  other transfer of Collateral, the Secured Party 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 the Company, which are hereby waived and released. 

6 

          7.
  Applications of Proceeds. The proceeds of any such sale, lease or other
  disposition of the Collateral hereunder shall be applied first, to the expenses
  of retaking, holding, storing, processing and preparing for sale, selling, and
  the like (including, without limitation, any taxes, fees and other costs incurred
  in connection therewith) of the Collateral, to the reasonable attorneys’
  fees and expenses incurred by the Secured Party in enforcing its rights hereunder
  and in connection with collecting, storing and disposing of the Collateral,
  and then to satisfaction of the Obligations, and to the payment of any other
  amounts required by applicable law, after which the Secured Party shall pay
  to the Company 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 Party is legally entitled, the Company will be liable for
  the deficiency, together with interest thereon, at the rate of 15% per annum
  (the “Default Rate”), and the reasonable fees of any attorneys
  employed by the Secured Party to collect such deficiency. To the extent permitted
  by applicable law, the Company waives all claims, damages and demands against
  the Secured Party arising out of the repossession, removal, retention or sale
  of the Collateral, unless due to the gross negligence or willful misconduct
  of the Secured Party. 

          8.
  Costs and Expenses. The Company agrees to pay all out-of-pocket fees,
  costs and expenses incurred in connection with any filing required hereunder,
  including without limitation, any financing statements, continuation statements,
  partial releases and/or termination statements related thereto or any expenses
  of any searches reasonably required by the Secured Party. The Company shall
  also pay all other claims and charges which in the reasonable opinion of the
  Secured Party might prejudice, imperil or otherwise affect the Collateral or
  the Security Interest therein. The Company will also, upon demand, pay to the
  Secured Party the amount of any and all reasonable expenses, including the reasonable
  fees and expenses of its counsel and of any experts and agents, which the Secured
  Party 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 Party under the Notes. Until so paid, any fees payable
  hereunder shall be added to the principal amount of the Notes and shall bear
  interest at the Default Rate. 

          9.
  Responsibility for Collateral. The Company assumes all liabilities and
  responsibility in connection with all Collateral, and the obligations of the
  Company hereunder or under the Notes and the Warrants 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.

          10.
  Security Interest Absolute. All rights of the Secured Party and all Obligations
  of the Company hereunder, shall be absolute and unconditional, irrespective
  of: (a) any lack of validity or enforceability of this Agreement, the Notes,
  the Warrants 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
  Notes, the Warrants or any other agreement entered into in connection with the
  foregoing; (c) any exchange, release or nonperfection of any of the Collateral,
  or any release or amendment or waiver of or consent to departure from any other
  collateral for, or any guaranty, or any other security, for all or any of the
  Obligations; (d) any action by the Secured Party 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 

7 

any legal or equitable defense available to the Company, or a
discharge of all or any part of the Security Interest granted hereby. Until the
Obligations shall have been paid and performed in full, the rights of the
Secured Party shall continue even if the Obligations are barred for any reason,
including, without limitation, the running of the statute of limitations or
bankruptcy. The Company 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 Party 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 Party, then, in any such
event, the Company’s obligations hereunder shall survive cancellation of this
Agreement, and shall not be discharged or satisfied by any prior payment thereof
and/or cancellation of this Agreement, but shall remain a valid and binding
obligation enforceable in accordance with the terms and provisions hereof. The
Company waives all right to require the Secured Party to proceed against any
other person or to apply any Collateral which the Secured Party may hold at any
time, or to marshal assets, or to pursue any other remedy. The Company waives
any defense arising by reason of the application of the statute of limitations
to any obligation secured hereby. 

          11.
  Term of Agreement. This Agreement and the Security Interest shall terminate
  on the date on which all payments under the Notes have been made in full and
  all other Obligations have been paid or discharged. Upon such termination, the
  Secured Party, at the request and at the expense of the Company, will join in
  executing any termination statement with respect to any financing statement
  executed and filed pursuant to this Agreement.

          12.
  Power of Attorney; Further Assurances. 

                    (a)
  The Company authorizes the Secured Party, and does hereby make, constitute and
  appoint it, and its respective officers, agents, successors or assigns with
  full power of substitution, as the Company’s true and lawful attorney-in-fact,
  with power, in its own name or in the name of the Company, to, after the occurrence
  and during the continuance of an Event of Default, (i) endorse any notes, checks,
  drafts, money orders, or other instruments of payment (including payments payable
  under or in respect of any policy of insurance) in respect of the Collateral
  that may come into possession of the Secured Party; (ii) to sign and endorse
  any UCC financing statement 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; and (v) generally, to do, at
  the option of the Secured Party, and at the Company’s expense, at any time,
  or from time to time, all acts and things which the Secured Party deems necessary
  to protect, preserve and realize upon the Collateral and the Security Interest
  granted therein in order to effect the intent of this Agreement, the Notes and
  the Warrants, all as fully and effectually as the Company might or could do;
  and the Company 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. 

8 

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

                    (c)
  The Company hereby irrevocably appoints the Secured Party as the Company’s
  attorney-in-fact, with full authority in the place and stead of the Company
  and in the name of the Company, from time to time in the Secured Party’s
  discretion, to take any action and to execute any instrument which the Secured
  Party 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 the Company where permitted by law. 

          13.
  Notices. All notices, requests, demands and other communications hereunder
  shall be in writing, with copies to all the other parties hereto, and shall
  be deemed to have been duly given when (i) if delivered by hand, upon receipt,
  (ii) if sent by facsimile, upon receipt of proof of sending thereof, (iii) if
  sent by nationally recognized overnight delivery service (receipt requested),
  the next business day or (iv) if mailed by first-class registered or certified
  mail, return receipt requested, postage prepaid, four days after posting in
  the U.S. mails, in each case if delivered to the following addresses: 

	If to the Company: 	Banyan Corporation 
	  	1925 Century Park East, Suite 500 
	  	Los Angeles, California 90067 
	  	Attention: Chief Executive Officer 
	  	Telephone: 800-808-0899 
	  	Facsimile: 403-287-8804 
	  	  
	With a copy to: 	Noel E. Guardi, Esq. 
	  	P. O. Box 381 
	  	Pinecliffe, Colorado 80471 
	  	Telephone: 303-969-8886 
	  	Facsimile: 303-969-8887 

9 

	If to the Secured Party: 	AJW Partners, LLC 
	  	AJW Offshore, Ltd. 
	  	AJW Qualified Partners, LLC 
	  	New Millennium Capital Partners II, LLC 
	  	1044 Northern Boulevard 
	  	Suite 302 
	  	Roslyn, New York 11576 
	  	Attention: Corey Ribotsky 
	  	Facsimile: 516-739-7115 
	  	  
	With a copy to: 	Ballard Spahr Andrews & Ingersoll, LLP
  
	  	1735 Market Street, 51st Floor

	  	Philadelphia, Pennsylvania 19103 
	  	Attention: Gerald J. Guarcini, Esq. 
	  	Facsimile: 215-864-8999 

          14.
  Other Security. To the extent that the Obligations are now or hereafter
  secured by property other than the Collateral or by the guarantee, endorsement
  or property of any other person, firm, corporation or other entity, then the
  Secured Party 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 Party’s rights and remedies
  hereunder. 

          15.
  Miscellaneous. 

                    (a)
  No course of dealing between the Company and the Secured Party, nor any failure
  to exercise, nor any delay in exercising, on the part of the Secured Party,
  any right, power or privilege hereunder or under the Notes 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 Party with respect to the Collateral,
  whether established hereby or by the Notes or by any other agreements, instruments
  or documents or by law shall be cumulative and may be exercised singly or concurrently.

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

                    (d)
  In the event that any provision of this Agreement is held to be invalid, prohibited
  or unenforceable in any jurisdiction for any reason, unless such provision is
  narrowed by judicial construction, this Agreement shall, as to such jurisdiction,
  be construed as if such invalid, prohibited or unenforceable provision had been
  more narrowly drawn so as not to be invalid, prohibited or unenforceable. If,
  notwithstanding the foregoing, any provision of this Agreement is held to be
  invalid, prohibited or unenforceable in any jurisdiction, such provision, 

10 

as to such jurisdiction, shall be ineffective to the extent of
such invalidity, prohibition or unenforceability without invalidating the
remaining portion of such provision or the other provisions of this Agreement
and without affecting the validity or enforceability of such provision or the
other provisions of this Agreement in any other jurisdiction. 

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

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

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

                    (h)
  This Agreement shall be construed in accordance with the laws of the State of
  New York, except to the extent the validity, perfection or enforcement of a
  security interest hereunder in respect of any particular Collateral which are
  governed by a jurisdiction other than the State of New York in which case such
  law shall govern. Each of the parties hereto irrevocably submit to the exclusive
  jurisdiction of any New York State or United States Federal court sitting in
  Manhattan county over any action or proceeding arising out of or relating to
  this Agreement, and the parties hereto hereby irrevocably agree that all claims
  in respect of such action or proceeding may be heard and determined in such
  New York State or Federal court. The parties hereto agree that a final judgment
  in any such action or proceeding shall be conclusive and may be enforced in
  other jurisdictions by suit on the judgment or in any other manner provided
  by law. The parties hereto further waive any objection to venue in the State
  of New York and any objection to an action or proceeding in the State of New
  York on the basis of forum non conveniens. 

                    (i)
  EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL
  OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.
  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY DISPUTES
  THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER OF THIS
  AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH
  OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
  ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER
  INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS WAIVER
  IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY ON
  THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
  REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
  SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL FOLLOWING
  SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING 

11 

THAT, NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT. IN THE EVENT OF A LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

                    (j)
  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. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

12 

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

	 	BANYAN CORPORATION 
	 	 	  
	 	 	  
	 	 	  
	 	By: 	 
	 	 	Michael J. Gelmon 
	 	 	Chief Executive Officer 
	 	 	  
	 	AJW PARTNERS, LLC 
	 	By:	 SMS Group, LLC 
	 	 	  
	 	 	  
	 	 	  
	 	By: 	 
	 	 	Corey S. Ribotsky 
	 	 	Manager 
	 	 	  
	 	AJW OFFSHORE, LTD. 
	 	By:	 First Street Manager II, LLC 
	 	 	  
	 	 	  
	 	 	  
	 	By: 	 
	 	 	Corey S. Ribotsky 
	 	 	Manager 
	 	 	  
	 	AJW QUALIFIED PARTNERS, LLC 
	 	By:	 AJW Manager, LLC 
	 	 	  
	 	 	  
	 	By: 	 
	 	 	Corey S. Ribotsky 
	 	 	Manager 
	 	 	  
	 	NEW MILLENNIUM CAPITAL PARTNERS II, LLC.
    
	 	By:	 First Street Manager II, LLC 
	 	 	  
	 	 	  
	 	 	  
	 	By: 	 
	 	 	Corey S. Ribotsky 
	 	 	Manager

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