Document:

REGISTRATION
      RIGHTS AGREEMENT

     

    REGISTRATION
      RIGHTS AGREEMENT dated as of the 30th
      day of
      October, 2007 (this "Agreement") by and between FUTURE NOW GROUP, INC., a Nevada
      corporation (the "Corporation"), PROFESSIONAL OFFSHORE OPPORTUNITY FUND, LTD.
      and PROFESSIONAL TRADERS FUND LLC (collectively, the “Investor”).

     

    WITNESSETH
      :

    

    WHEREAS,
      the Investor owns or has the right to purchase or otherwise acquire shares
      of
      the Common Stock (as hereinafter defined) of the Corporation; and 

     

    WHEREAS,
      the Corporation and the Investor deem it to be in their respective best interest
      to set forth the rights of the Investor in connection with the registration
      of
      such Common Stock under applicable securities laws; and

     

    WHEREAS,
      the execution and delivery of this Agreement is a condition to the loan facility
      to be provided by the Investor to the Corporation on the date
      hereof;

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants and obligations
      hereinafter set forth, the Corporation and the Investor hereby agree as
      follows:

     

    Section
      1.  Definitions.
      

     

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

     

    (a)  "Commission"
      means the Securities and Exchange Commission or any other Federal agency at
      the
      time administering the Securities Act.

     

    (b)  "Common
      Stock" means the common stock, par value $.001, of the Corporation.

     

    (c)  "Exchange
      Act" means the Securities Exchange Act of 1934 or any successor Federal statute,
      and the rules and regulations of the Commission promulgated thereunder, all
      as
      the same shall be in effect from time to time.

     

    (d)  "Investor"
      means Professional Offshore Opportunity Fund, Ltd., Professional Traders Fund
      LLC and each additional person who shall execute a counterpart signature page
      hereto, and includes any successor to, or assignee or transferee of, any such
      person who or which agrees in writing to be treated as an Investor hereunder
      and
      to be bound by the terms and comply with all applicable provisions hereof.
      

     

    (e)  "Other
      Shares" means at any time those shares of Common Stock which do not constitute
      Primary Shares or Registrable Shares.

     

    (f)  "Primary
      Shares" means at any time the authorized but unissued shares of Common Stock
      held by the Corporation in its treasury.

     

    (g)  "Registrable
      Shares" means shares of Common Stock now or hereafter held by the Investor,
      whether acquired or acquirable pursuant to or in connection with the Warrant,
      the Secured Convertible Debenture or any other agreements in connection with
      this transaction. As to any particular Registrable Shares, once issued, such
      Registrable Shares shall cease to be Registrable Shares when (i) they have
      been
      registered under the Securities Act, the registration statement in connection
      therewith has been declared effective and they have been disposed of pursuant
      to
      such effective registration statement, (ii) they are eligible to be sold or
      distributed pursuant to Rule 144 within any consecutive three month period
      (including, without limitation, Rule 144(k)) without volume limitations, or
      (iii) they shall have ceased to be outstanding. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h)  "Rule
      144" means Rule 144 promulgated under the Securities Act or any successor rule
      thereto. 

     

    (i)  "Securities
      Act" means the Securities Act of 1933 or any successor Federal statute, and
      the
      rules and regulations of the Commission thereunder, all as the same shall be
      in
      effect from time to time. 

     

    (j)  "Secured
      Convertible Debenture" means the Secured Convertible Debentures dated the date
      hereof in the aggregate principal amount of $2,000,000 issued by the Corporation
      to the Investor. 

     

    (k)  "Warrant"
      means each Warrant dated the date hereof issued by the Corporation to the
      Investor. 

     

    Section
      2.  Registration.
      

     

    (a)  Mandatory
      Registration.
      The
      Corporation shall prepare, and as soon as practicable, but not later than sixty
      (60) calendar days following the date hereof, file with the SEC a Registration
      Statement or Registration Statements (as necessary) on Form SB-2 (or, if such
      form is unavailable for such a registration, on such other form as is available
      for such a registration), covering the resale of all of two times the number
      of
      the Registrable Securities, which Registration Statement(s) shall state that,
      in
      accordance with Rule 416 promulgated under the 1933 Act, such Registration
      Statement also covers such indeterminate number of additional shares of Common
      Stock as may become issuable upon stock splits, stock dividends or similar
      transactions. 

     

    (b)  The
      Corporation shall have the Registration Statement filed with the SEC within
      sixty (60) calendar days following the Closing Date. If the Registration
      Statement covering the Registrable Securities required to be filed by the
      Corporation pursuant to Section 2(a) hereof is not filed within sixty (60)
      calendar days following the Closing Date, then the Corporation shall pay the
      Investor the sum of two percent (2%) of the face amount of the Secured
      Convertible Debenture as liquidated damages, and not as a penalty, for the
      first
      thirty (30) calendar day period, pro rata, following the sixty (60) calendar
      day
      period until the Registration Statement is filed, and two percent (2%) for
      each
      successive thirty (30) calendar day period thereafter. The Corporation shall
      pay
      such liquidated damages in cash.

     

    Notwithstanding
      the foregoing, the amounts payable by the Corporation pursuant to this Section
      shall not be payable to the extent any delay in the filing of the Registration
      Statement occurs because of an act of, or a failure to act or to act timely
      by
      the Investor. The damages set forth in this Section shall continue until the
      obligation is fulfilled and shall be paid within three (3) business days after
      each thirty (30) day period, or portion thereof, until the Registration
      Statement is filed. Failure of the Corporation to make payment within said
      three
      (3) business days shall be considered a default. 

     

    The
      Corporation acknowledges that its failure to have the Registration Statement
      filed within said sixty (60) calendar day period will cause the Investor to
      suffer damages in an amount that will be difficult to ascertain. Accordingly,
      the parties agree that it is appropriate to include in this Agreement a
      provision for liquidated damages. The parties acknowledge and agree that the
      liquidated damages provision set forth in this section represents the parties'
      good faith effort to quantify such damages and, as such, agree that the form
      and
      amount of such liquidated damages are reasonable and will not constitute a
      penalty. The payment of liquidated damages shall not relieve the Corporation
      from its obligations to register the Common Stock and deliver the Common Stock
      pursuant to the terms of this Agreement and the Subscription Agreement.

     

    
      
        
        

      

      
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    Notwithstanding
      the foregoing provisions of Section 2(a) and 2(b) providing for liquidated
      damages under certain circumstances, as the sole exception to the requirement
      to
      pay such damages, in the event the SEC disallows registration of the Registrable
      Securities pursuant to Rule 415 under the Securities Act, no such damages shall
      be payable so long as the Corporation then uses its best efforts to register
      the
      maximum number of Registrable Securities in such registration statements as
      the
      SEC permits and uses its best efforts thereafter to register in appropriate
      registration statements any Registrable Securities not included in such
      registration statements. 

     

    (c)  The
      Corporation shall cause a Registration Statement to be declared effective by
      the
      SEC within one hundred twenty (120) calendar days after the Closing Date. If
      the
      Registration Statement covering the Registrable Securities required to be filed
      by the Company pursuant to Section 2(a) hereof is not declared effective within
      one hundred and twenty (120) calendar days following the Closing Date, then
      the
      Corporation shall pay the Investor the sum of two percent (2%) of the face
      amount of the Secured Convertible Debenture as liquidated damages and not as
      a
      penalty for the first thirty (30) calendar day period, pro
      rata,
      following the one hundred twenty (120) calendar day period, until the
      Registration Statement is declared effective, and two percent (2%) for each
      successive thirty (30) calendar day period thereafter. The Corporation shall
      pay
      such liquidated damages in cash. 

     

    If
      the
      Registration Statement covering the Registrable Securities required to be filed
      by the Corporation pursuant to Section 2(a) hereof is declared effective, but
      after the effective date the Investor's right to sell is suspended,
      then
      the Corporation shall pay the Investor the sum of two percent (2%) of the face
      amount of the Secured Convertible Debenture for
      each
      thirty (30) calendar day period, pro rata, following the suspension until such
      suspension ceases.

     

    Notwithstanding
      the foregoing, the amounts payable by the Corporation pursuant to this Section
      shall not be payable to the extent any delay in the effectiveness of the
      Registration Statement occurs because of an act of or a failure to act or to
      act
      timely by the Investor. The damages set forth in this Section shall continue
      until the obligation is fulfilled and shall be paid within three (3) business
      days after each thirty (30) day period, or portion thereof, until the
      Registration Statement is declared effective or such suspension is released.
      Failure of the Corporation to make payment within said three (3) business days
      shall be considered a default. 

     

    The
      Company acknowledges that its failure to have the Registration Statement
      declared effective within said one hundred and twenty (120) period or to permit
      the suspension of the effectiveness of the Registration Statement, will cause
      the Investor to suffer damages in an amount that will be difficult to ascertain.
      Accordingly, the parties agree that it is appropriate to include in this
      Agreement a provision for liquidated damages. The parties acknowledge and agree
      that the liquidated damages provision set forth in this section represents
      the
      parties' good faith effort to quantify such damages and, as such, agree that
      the
      form and amount of such liquidated damages are reasonable and will not
      constitute a penalty. The payment of liquidated damages shall not relieve the
      Corporation from its obligations to register the Common Stock and deliver the
      Common Stock pursuant to the terms of this Agreement and the Subscription
      Agreement.

     

    (d)  The
      Corporation agrees not to include any other securities in this Registration
      Statement without Investor's prior written consent. Furthermore, the Company
      agrees that it will not file any other Registration Statement for other
      securities (other than those for the equity credit line financing, strategic
      partners or in connection with a merger or acquisition), until ninety (90)
      calendar days after the Registration Statement for the Registrable Securities
      is
      declared effective. 

     

    
      
        
        

      

      
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    (e)  Piggyback
      Registration.
      Without
      limiting the obligations set forth in Section 2(a) through and including 2(d)
      of
      this Agreement, if the Corporation at any time proposes for any reason to
      register Primary Shares, Registrable Shares or other shares under the Securities
      Act (other than on Form S-4 or Form S-8 promulgated under the Securities Act
      or
      any successor forms thereto), it shall give written notice to the Investor
      of
      its intention so to register such Primary Shares, Registrable Shares or Other
      Shares at least 30 days before the initial filing of such registration statement
      and, upon the written request, delivered to the Corporation within 20 days
      after
      delivery of any such notice by the Corporation, of the Investor to include
      in
      such registration Registrable Shares (which request shall specify the number
      of
      Registrable Shares proposed to be included in such registration and shall state
      that such Investor desires to sell such Registrable Shares in the public
      securities markets), the Corporation shall cause all such Registrable Shares
      to
      be included in such registration on the same terms and conditions as the
      securities otherwise being sold in such registration; provided,
      however,
      that if
      the managing underwriter advises the Corporation that the inclusion of all
      Registrable Shares requested to be included in such registration would interfere
      with the successful marketing (including pricing) of the Primary Shares,
      Registrable Shares or Other Shares proposed to be registered by the Corporation,
      then the number of Primary Shares, Registrable Shares and Other Shares proposed
      to be included in such registration shall be included in the following order:
      

     

    (f)  if
      the
      Corporation proposes to register Primary Shares, or Primary Shares and Other
      Shares: 

     

    (i)  First,
      the
      Primary Shares; and 

     

    (ii)  Second,
      the
      Registrable Shares and Other Shares requested to be included in such
      registration (or, if necessary, such Registrable Shares and Other Shares
pro rata
      among
      the holders thereof based upon the number of Registrable Shares and Other Shares
      requested to be registered by each such holder); or 

     

    (g)  if
      the
      Corporation proposes to register Other Shares pursuant to a request for
      registration by the holders of such Other Shares (other than pursuant to Section
      2 hereof):

     

    (i)  First,
      the
      Other Shares held by the parties demanding such registration; and 

     

    (ii)  Second,
      the
      Registrable Shares and Other Shares (other than shares registered pursuant
      to
      Section 2(c)(1) hereof) requested to be registered by the holders hereof (or,
      if
      necessary, pro rata
      among
      the holders thereof based on the number of Registrable Shares and Other Shares
      requested to be registered by such holders).

     

    Section
      3.  Preparation
      and Filing.
      

     

    If
      and
      whenever the Corporation is under an obligation pursuant to the provisions
      of
      this Agreement to effect the registration of any Registrable Shares, the
      Corporation shall as expeditiously as practicable: 

     

    (a)  prepare
      and file with the Commission a registration statement with respect to such
      Registrable Shares and use its best efforts to cause such registration statement
      to become effective and, upon the request of the holders of a majority of the
      Registrable Shares being registered thereunder, keep such registration statement
      effective for a period of up to one hundred twenty (120) days or until the
      distribution contemplated in the registration statement has been completed;
      provided,
      however,
      that
      (i) such 120-day period shall be extended for a period of time equal to the
      period the holders of Registrable Shares refrain from selling any securities
      included in such registration at the request of an underwriter of Common Stock
      (or other securities) of the Company; and (ii) in the case of any registration
      of Registrable Securities on Form S-3 which are intended to be offered on a
      continuous or delayed basis, such 120-day period shall be extended, if
      necessary, to keep the registration statement effective until all such
      Registrable Shares are sold, provided that Rule 415, or any successor rule
      under
      the Securities Act, permits an offering on a continuous or delayed basis;
and provided further
      that
      applicable rules under the Securities Act governing the obligation to file
      a
      post-effective amendment permit (in lieu of filing a post-effective amendment
      which (I) includes any prospectus required by Section 10(a)(3) of the Securities
      Act or (II) reflects facts or events representing a material or fundamental
      change in the information set forth in the registration statement) the
      incorporation by reference, in the registration statement, of information
      required to be included in (I) and (II) above to be contained in periodic
      reports filed pursuant to Section 13 or 15(d) of the Exchange Act.

     

    
      
        
        

      

      
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    (b)  prepare
      and file with the Commission such amendments and supplements to such
      registration statement and the prospectus used in connection with such
      registration statement as may be necessary to comply with the provisions of
      the
      Securities Act with respect to the disposition of all securities covered by
      such
      registration statement.

     

    (c)  furnish,
      at least five business days before filing a registration statement that
      registers such Registrable Shares, a prospectus relating thereto or any
      amendments or supplements relating to such a registration statement or
      prospectus, to one counsel selected by the Investor (the "Investor’s Counsel"),
      copies of all such documents proposed to be filed (it being understood that
      such
      five-business-day period need not apply to successive drafts of the same
      document proposed to be filed so long as such successive drafts are supplied
      to
      the Investor’s Counsel in advance of the proposed filing by a period of time
      that is customary and reasonable under the circumstances); 

     

    (d)  notify
      in
      writing the Investor’s Counsel promptly (i) of the receipt by the Corporation of
      any notification with respect to any comments by the Commission with respect
      to
      such registration statement or prospectus or any amendment or supplement thereto
      or any request by the Commission for the amending or supplementing thereof
      or
      for additional information with respect thereto, (ii) of the receipt by the
      Corporation of any notification with respect to the issuance by the Commission
      of any stop order suspending the effectiveness of such registration statement
      or
      prospectus or any amendment or supplement thereto or the initiation or
      threatening of any proceeding for that purpose and (iii) of the receipt by
      the
      Corporation of any notification with respect to the suspension of the
      qualification of such Registrable Shares for sale in any jurisdiction or the
      initiation or threatening of any proceeding for such purposes; 

     

    (e)  use
      its
      best efforts to register or qualify such Registrable Shares under such other
      securities or blue sky laws of such jurisdictions as the Investors reasonably
      request and do any and all other acts and things which may be reasonably
      necessary or advisable to enable the Investors to consummate the disposition
      in
      such jurisdictions of the Registrable Shares owned by the Investors; provided,
      however, that the Corporation will not be required to qualify generally to
      do
      business, subject itself to general taxation or consent to general service
      of
      process in any jurisdiction where it would not otherwise be required to do
      so
      but for this paragraph (e) or to provide any material undertaking or make any
      changes in its By-laws or Certificate of Incorporation which the Board of
      Directors determines to be contrary to the best interests of the Corporation
      or
      to modify any of its contractual relationships then existing; 

     

    (f)  furnish
      to the Investors holding such Registrable Shares such number of copies of a
      summary prospectus, if any, or other prospectus, including a preliminary
      prospectus, in conformity with the requirements of the Securities Act, and
      such
      other documents as such Investors may reasonably request in order to facilitate
      the public sale or other disposition of such Registrable Shares; 

     

    (g)  without
      limiting subsection (e) above, use its best efforts to cause such Registrable
      Shares to be registered with or approved by such other governmental agencies
      or
      authorities as may be necessary by virtue of the business and operations of
      the
      Corporation to enable the Investors holding such Registrable Shares to
      consummate the disposition of such Registrable Shares; 

     

    
      
        
        

      

      
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    (h)  notify
      the Investors holding such Registrable Shares on a timely basis at any time
      when
      a prospectus relating to such Registrable Shares is required to be delivered
      under the Securities Act within the appropriate period mentioned in subparagraph
      (a) of this Section 3, of the happening of any event as a result of which the
      prospectus included in such registration statement, as then in effect, includes
      an untrue statement of a material fact or omits to state a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading in light of the circumstances then existing and, at the request
      of
      the Investors, prepare and furnish to such Investors a reasonable number of
      copies of a supplement to or an amendment of such prospectus as may be necessary
      so that, as thereafter delivered to the offerees of such shares, such prospectus
      shall not include an untrue statement of a material fact or omit to state a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading in light of the circumstances then existing;

     

    (i)  subject
      to the execution of confidentiality agreements in form and substance
      satisfactory to the Corporation, make available upon reasonable notice and
      during normal business hours, for inspection by the Investors holding such
      Registrable Shares, any underwriter participating in any disposition pursuant
      to
      such registration statement and any attorney, accountant or other agent retained
      by the Investors or underwriter (collectively, the "Inspectors"), all pertinent
      financial and other records, pertinent corporate documents and properties of
      the
      Corporation (collectively, the "Records"), as shall be reasonably necessary
      to
      enable them to exercise their due diligence responsibility, and cause the
      Corporation's officers, directors and employees to supply all information
      (together with the Records, the "Information") reasonably requested by any
      such
      Inspector in connection with such registration statement. Any of the Information
      which the Corporation determines in good faith to be confidential and of which
      determination the Inspectors are so notified, shall not be disclosed by the
      Inspectors unless (i) the disclosure of such Information is necessary to avoid
      or correct a misstatement or an omission in the registration statement, (ii)
      the
      release of such Information is ordered pursuant to a subpoena or other order
      from a court of competent jurisdiction or (iii) such Information has been made
      generally available to the public; the Investors agree that they will, upon
      learning that disclosure of such information is sought in a court of competent
      jurisdiction, give notice to the Corporation and allow the Corporation, at
      the
      Corporation's expense, to undertake appropriate action to prevent disclosure
      of
      the Information deemed confidential; 

     

    (j)  use
      its
      best efforts to obtain from its independent certified public accountants "cold
      comfort" letters addressed to the Corporation and any selling shareholders
      in
      customary form and at customary times and covering matters of the type
      customarily covered by cold comfort benefits;

     

    (k)  use
      its
      best efforts to obtain from its counsel an opinion or opinions in customary
      form
      addressed to the Corporation and any selling shareholders; 

     

    (l)  in
      the
      event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the managing underwriter of such offering. Each holder of Registrable Shares
      participating in such underwriting shall also enter into and perform its
      obligations under such an agreement;

     

    (m)  provide
      a
      transfer agent and registrar (which may be the same entity and which may be
      the
      Corporation) for such Registrable Shares and a CUSIP number for all such
      Registrable Shares, in each case not later than the effective date of such
      registration; 

     

    (n)  issue
      to
      any underwriter to which the Investors holding such Registrable Shares may
      sell
      shares in such offering certificates evidencing such Registrable Shares;

     

    
      
        
        

      

      
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    (o)  list
      such
      Registrable Shares on any national securities exchange on which any shares
      of
      the Common Stock are listed or, if the Common Stock is not listed on a national
      securities exchange, use its best efforts to qualify such Registrable Shares
      for
      inclusion on the automated quotation system of the National Association of
      Securities Dealers, Inc. (the "NASDAQ"),
      or
      such
      other national securities exchange as the holders of a majority of such
      Registrable Shares shall reasonably request;

     

    (p)  otherwise
      use its best efforts to comply with all applicable rules and regulations of
      the
      Commission and make available to its security holders, as soon as reasonably
      practicable, earnings statements (which need not be audited) covering a period
      of 12 months beginning within three months after the effective date of the
      registration statement, which earnings statements shall satisfy the provisions
      of Section 11 (a) of the Securities Act; and

     

    (q)  subject
      to all the other provisions of this Agreement, use its best efforts to take
      all
      other steps necessary to effect the registration of such Registrable Shares
      contemplated hereby. 

     

    (r)  Each
      holder of the Registrable Shares, upon receipt of any notice from the
      Corporation of any event of the kind described to Section 3(h) hereof, shall
      forthwith discontinue disposition of the Registrable Shares pursuant to the
      registration statement covering such Registrable Shares until such holders'
      receipt of the copies of the supplemented or amended prospectus contemplated
      by
      Section 3(h) hereof, and, if so directed by the Corporation, such holder shall
      deliver to the Corporation all copies, other than permanent file copies then
      in
      such holder's possession, of the prospectus covering such Registrable Shares
      at
      the time of receipt of such notice. 

     

    Section
      4.  Expenses.

     

    All
      expenses (other than underwriting discounts and commissions relating to the
      Registrable Shares, as provided in the last sentence of this Section 4) incurred
      by the Corporation in complying with Section 3, including, without limitation,
      all registration and filing fees (including all expenses incident to filing
      with
      the Financial Industry Regulatory Authory, Inc. “FINRA”), fees and expenses of
      complying with securities and blue sky laws, printing expenses, fees and
      expenses of the Corporation's counsel and accountants, and a $5,000 expense
      payment to the Investor to pay for its review of the Corporation’s filings,
      shall be paid by the Corporation; provided,
      however,
      that
      all underwriting discounts and selling commissions applicable to the Registrable
      Shares and Other Shares shall be borne by the holders selling such Registrable
      Shares and Other Shares, in proportion to the number of Registrable Shares
      and
      Other Shares sold by each such holder. The $5,000 payment to the Investor shall
      be paid to the Investor on Closing.

     

    Section
      5.  Indemnification.

     

    (a)  In
      connection with any registration of any Registrable Shares under the Securities
      Act pursuant to this Agreement, the Corporation shall indemnify and hold
      harmless the holders of Registrable Shares, each underwriter, broker or any
      other person acting on behalf of the holders of Registrable Shares and each
      other person, if any, who controls any of the foregoing persons within the
      meaning of the Securities Act against any losses, claims, damages or
      liabilities, joint or several (or actions in respect thereof), to which any
      of
      the foregoing persons may become subject under the Securities Act or otherwise,
      insofar as such losses, claims, damages or liabilities (or actions in respect
      thereof) arise out of or are based upon an untrue statement or allegedly untrue
      statement of a material fact contained in the registration statement under
      which
      such Registrable Shares were registered under the Securities Act, the Exchange
      Act or any preliminary prospectus or final prospectus contained therein or
      otherwise filed with the Commission, any amendment or supplement thereto or
      any
      document incident to registration or qualification of any Registrable Shares,
      or
      arise out of or are based upon the omission or alleged omission to state therein
      a material fact required to be stated therein or necessary to make the
      statements therein not misleading or, with respect to any prospectus, necessary
      to make the statements therein in light of the circumstances under which they
      were made not misleading, or any violation by the Corporation of the Securities
      Act or state securities or blue sky laws applicable to the Corporation and
      relating to action or inaction required of the Corporation in connection with
      such registration or qualification under such state securities or blue sky
      laws;
      and shall reimburse the holders of Registrable Shares, such underwriter, such
      broker or such other person acting on behalf of the holders of Registrable
      Shares and each such controlling person for any legal or other expenses
      reasonably incurred by any of them in connection with investigating or defending
      any such loss, claim, damage, liability or action; provided,
      however,
      that
      the Corporation shall not be liable in any such case to the extent that any
      such
      loss, claim, damage, liability or action (including any legal or other expenses
      incurred) arises out of or is based upon an untrue statement or allegedly untrue
      statement or omission or alleged omission made in said registration statement,
      preliminary prospectus, final prospectus, amendment supplement or document
      incident to registration or qualification of any Registrable Shares in reliance
      upon and in conformity with written information furnished to the Corporation
      through an instrument duly executed by the holders of Registrable Shares or
      their counsel or underwriter specifically for use in the preparation thereof;
      provided further,
      however,
      that
      the foregoing indemnity agreement is subject to the condition that, insofar
      as
      it relates to any untrue statement, omission or alleged omission made in any
      preliminary prospectus but eliminated or remedied in the final prospectus (filed
      pursuant to Rule 424 of the Securities Act), such indemnity agreement shall
      not
      inure to the benefit of any Investor, underwriter, broker or other person acting
      on behalf of holders of the Restricted Shares from whom the person asserting
      any
      loss, claim, damage, liability or expense purchased the Restricted Shares which
      are the subject thereof, if a copy of such final prospectus had been made
      available to such person and such Investor, underwriter, broker or other person
      acting on behalf of holders of the Registrable Shares and such final prospectus
      was not delivered to such person with or prior to the written confirmation
      of
      the sale of such Registrable Shares to such person. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b)  In
      connection with any registration of Registrable Shares under the Securities
      Act
      pursuant to this Agreement, each holder of Registrable Shares shall severally
      and not jointly indemnify and hold harmless (in the same manner and to the
      same
      extent as set forth in the preceding paragraph of this Section 5) the
      Corporation, each director of the Corporation, each officer of the Corporation
      who shall sign such registration statement, each underwriter, broker or other
      person acting on behalf of the holders of Registrable Shares and each person
      who
      controls any of the foregoing persons within the meaning of the Securities
      Act
      with respect to any statement or omission from such registration statement,
      any
      preliminary prospectus or final prospectus contained therein or otherwise filed
      with the Commission, any amendment or supplement thereto or any document
      incident to registration or qualification of any Registrable Shares, if such
      statement or omission was made in reliance upon and in conformity with written
      information furnished to the Corporation or such underwriter specifically for
      use in connection with the preparation of such registration statement,
      preliminary prospectus, final prospectus, amendment, supplement or document;
      provided,
      however,
      that
      the maximum amount of liability in respect of such indemnification shall be
      limited, in the case of each Seller of Registrable Shares, to an amount equal
      to
      the net proceeds actually received by such Seller from the sale of Registrable
      Shares effected pursuant to such registration. 

     

    (c)  Promptly
      after receipt by an indemnified party of notice of the commencement of any
      action involving a claim referred to in the preceding paragraphs of this Section
      5, such indemnified party will, if a claim in respect thereof is made against
      an
      indemnifying party, give written notice to the latter of the commencement of
      such action. The failure of any indemnified party to notify an indemnifying
      party of any such action shall not (unless such failure shall have a material
      adverse effect on the indemnifying party) relieve the indemnified party on
      account of this Section 5. In case any such action is brought against an
      indemnified party, the indemnifying party will be entitled to participate in
      and
      to assume the defense thereof, jointly with any other indemnifying party
      similarly notified to the extent that it may wish, with counsel reasonably
      satisfactory to such indemnified party, and after notice from the indemnifying
      party to such indemnified party of its election so to assume the defense
      thereof, the indemnifying party shall not be responsible for any legal or other
      expenses subsequently incurred by the indemnified party in connection with
      the
      defense thereof; provided,
      however,
      that if
      any indemnified party shall have reasonably concluded that there may be one
      or
      more legal or equitable defenses available to such indemnified party which
      are
      additional to or conflict with those available to the indemnifying party, or
      that such claim or litigation involves or could have an effect upon matters
      beyond the scope of the indemnity agreement provided in this Section 5, the
      indemnifying party shall not have the right to assume the defense of such action
      on behalf of such indemnified party (but shall have the right to participate
      therein with counsel of its choice) and such indemnifying party shall reimburse
      such indemnified party and any person controlling such indemnified party for
      that portion of the fees and expenses of any counsel retained by the indemnified
      party which is reasonably related to the matters covered by the indemnity
      agreement provided in this Section 5. If the indemnifying party is not entitled
      to, or elects not to, assume the defense of a claim, it will not be obligated
      to
      pay the fees and expenses of more than one counsel with respect to such claim.
      

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d)  If
      the
      indemnification provided for in this Section 5 is held by a court of competent
      jurisdiction to be unavailable to an indemnified party with respect to any
      loss,
      claim, damage, liability or action referred to herein, then the indemnifying
      party, in lieu of indemnifying such indemnified party hereunder, shall
      contribute to the amounts paid or payable by such indemnified party as a result
      of such loss, claim, damage, liability or action in such proportion as is
      appropriate to reflect the relative fault of the indemnifying party on the
      one
      hand and of the indemnified party on the other in connection with the statements
      or omissions which resulted in such loss, claim, damage, liability or action
      as
      well as any other relevant equitable considerations. The relative fault of
      the
      indemnifying party and of the indemnified party shall be determined by reference
      to, among other things, whether the untrue or alleged untrue statement of a
      material fact or the omission or alleged omission to state a material fact
      relates to information supplied by the indemnifying party or by the indemnified
      party and the parties' relative intent, knowledge, access to information and
      opportunity to correct or prevent such statement or omission. In no event shall
      contribution obligations of this Section 5(b) exceed the net profits from the
      offering received by such holder after deducting underwriting fees, discounts
      and commissions. No person guilty of fraudulent misrepresentation shall be
      entitled to contribution from any person. 

     

    Section
      6.  Underwriting
      Agreement.

     

    Notwithstanding
      the provisions of Sections 2, 3, 4 and 5, to the extent that the Investor shall
      enter into an underwriting or similar agreement, which agreement contains
      provisions covering one or more issues addressed in such Sections, the
      provisions contained in such agreement addressing such issue or issues shall
      control; provided,
      however,
      that
      any such agreement to which the Corporation is not a party shall not be binding
      upon the Corporation. No holder may participate in any underwritten registration
      hereunder unless such holder (a) agrees to such holder's securities on the
      basis
      provided in any underwriting arrangements and (b) completes and executes all
      questionnaires, powers of attorney, indemnities, underwriting agreements and
      other documents reasonably and customarily required under the terms of such
      underwriting arrangements. 

     

    Section
      7.  Information
      by Investor.

     

    The
      Investor shall furnish to the Corporation such written information regarding
      the
      Investors and the distribution proposed by the Investor as the Corporation
      may
      reasonably request in writing and as shall be reasonably required in connection
      with any registration, qualification or compliance referred to in this
      Agreement.

     

    Section
      8.  Exchange
      Act Compliance.

     

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the Act and any other rule or regulation of the Commission may at any
      time
      permit an Investor to sell securities of the Corporation to the public without
      registration or pursuant to a registration on Form S-3, the Company agrees,
      on
      and after becoming subject to reporting obligations under the federal securities
      laws, to:

     

    (a)  make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144, at all times after ninety (90) days after the effective date of the
      first registration statement filed by the Corporation for the offering of its
      securities to the general public;

    
       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

    

    (b)  file
      with
      the Commission in a timely manner all reports and other documents required
      of
      the Corporation under the Securities Act and the Exchange Act; and

     

    (c)  furnish
      to any Investor, so long as the Investor owns any Registrable Shares, forthwith
      upon request (i) a written statement by the Corporation that it has complied
      with the reporting requirements of Rule 144 (at any time after ninety (90)
      days
      after the effective date of the first registration statement filed by the
      Corporation), the Securities Act and the Exchange Act (at any time after it
      has
      become subject to such reporting requirements), or that it qualifies as a
      registrant whose securities may be resold pursuant to Form S-3 (at any time
      after it so qualifies), (ii) a copy of the most recent annual or quarterly
      report of the Corporation and such other reports and documents so filed by
      the
      Corporation, and (iii) such other information as may be reasonably requested
      in
      availing any Investor of any rule or regulation of the Commission which permits
      the selling of any such securities without registration or pursuant to such
      form.

     

    Section
      9.  No
      Conflict of Rights.

     

    The
      Corporation shall not, after the date hereof, grant any registration rights
      which conflict with or impair the registration rights granted hereby. In the
      event the Corporation grants to any person any registration rights that are
      superior in scope or substance to the registration rights granted to the
      Investor, such superior rights shall be simultaneously granted to such holders.
      

     

    Section
      10.  Termination.

     

    This
      Agreement shall terminate and be of no further force or effect when there shall
      no longer be any Registrable Shares outstanding; provided that Sections 4 and
      5
      shall survive any termination of this Agreement.

     

    Section
      11.  Successors
      and Assigns.

     

    This
      Agreement shall bind and inure to the benefit of the Corporation and the
      Investors and, subject to Section 12, the respective successors and assigns
      of
      the Corporation and the Investors. 

     

    Section
      12.  Assignment.
      

     

    Each
      Investor may assign its rights hereunder to any purchaser or transferee of
      Registrable Shares; provided, however, that such purchaser or transferee shall,
      as a condition to the effectiveness of such assignment, be required to execute
      a
      counterpart to this Agreement agreeing to be treated as an Investor whereupon
      such purchaser or transferee shall have the benefits of, and shall be subject
      to
      the restrictions contained in, this Agreement as if such purchaser or transferee
      was originally included in the definition of an Investor herein and had
      originally been a party hereto

     

    Section
      13.  Entire
      Agreement.

     

    This
      Agreement and the other writings referred to herein or therein or delivered
      pursuant hereto or thereto, contain the entire agreement among the Investor
      and
      the Corporation with respect to the subject matter hereof and supersede all
      prior and contemporaneous arrangements or understandings with respect thereto.
      

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Section
      14.  Notices.

     

    All
      notices, requests, consents and other communications hereunder to any party
      shall be deemed to be sufficient if contained in a written instrument delivered
      in person or sent by telecopy, nationally-recognized overnight courier or first
      class registered or certified mail return receipt requested, postage prepaid,
      addressed to such party at the address set forth below or such other address
      as
      may hereafter be designated in writing by such party to the other parties:
      

     

    if
      to the
      Corporation, to: 

     

    Future
      Now Group, Inc.

    55
      Washington Street, Suite 419

    Brooklyn,
      NY. 11201

    Attention:
      Chief Financial Officer

    Facsimile
      Number: 203-659-1690

    

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

     

    if
      to the
      Investor, to:

     

    Professional
      Offshore Opportunity Fund, Ltd. 

    c/o
      Professional Traders Management, LLC

    1400
      Old
      Country Road, Suite 206

    Westbury,
      New York 11590

    Telephone:
      516-228-0070

    Fax:
      516-228-8083

    Attention:
      Howard Berger 

    

    All
      such
      notices, requests, consents and other communications shall be deemed to have
      been delivered (a) in the case of personal delivery or delivery by telecopy,
      on
      the date of such delivery, (b) in the case of dispatch by nationally-recognized
      overnight courier, on the next business day following such dispatch and (c)
      in
      the case of mailing, on the third business day after the posting thereof.

     

    Section
      15.  Modifications;
      Amendments; Waivers.

     

    The
      terms
      and provisions of this Agreement may not be modified or amended, nor may any
      provision be waived, except pursuant to a writing signed by the Corporation
      and
      the holders of at least a majority of the Registrable Shares then outstanding.
      

     

    Section
      16.  Counterparts.

     

    This
      Agreement may be executed in any number of counterparts, and each such
      counterpart hereof shall be deemed to be an original instrument, but all such
      counterparts together shall constitute but one agreement. 

     

    Section
      17.  Headings.

     

    The
      headings of the various sections of this Agreement have been inserted for
      convenience of reference only and shall not be deemed to be a part of this
      Agreement. 

     

    Section
      18.  Governing
      Law.
      

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York applicable to contracts made and to be performed wholly
      therein. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      undersigned have executed and delivered this Agreement as of the date first
      set
      forth above. 

    
      	 	 	 
	 	FUTURE
              NOW GROUP,
              INC.
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:

            
	 	
            

    

    
      	 	 	 
	 	
              PROFESSIONAL
                OFFSHORE OPPORTUNITY FUND,
                LTD.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:
                

            
	 	
            

      	 	 	 
	 	
              PROFESSIONAL
                TRADERS FUND LLC

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:
                

            

    

     

    
      
         

      

      
        13SECURITY
      AGREEMENT

     

    SECURITY
      AGREEMENT, dated as of October 30, 2007 (this “Agreement”),
      between FUTURE NOW GROUP, INC., a Nevada corporation (the “Company),
      and
      the lenders identified on the signature page hereto (the “Lenders”).

     

    WHEREAS,
      the Company
      and the
      Lenders are party to that certain Securities Purchase Agreement dated the date
      hereof (the "SPA”); 

     

    WHEREAS,
      it is intended
      hereby
      that all obligations of the Company to the Lenders under the Transaction
      Documents (as defined in the SPA) and other agreements to which the Company
      and
      Lenders are from time to time party be secured by all of the personal property
      assets of the Company; 

     

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

     

    1.  Definitions.
      

     

    (a)  Capitalized
      terms used herein without definition (by cross-reference or otherwise) shall
      have the meanings provided for such terms (by cross-reference or otherwise)
      in
      the SPA.

     

    (b)  The
      following capitalized terms, when used herein, shall have the meanings provided
      for such terms in Article 9 of the NYUCC (as hereafter defined): Accession,
      Account, Cash Proceeds, Certificate of Title, Chattel Paper, Commercial Tort
      Claim, Commodity Account, Commodity Contract, Commodity Intermediary, Deposit
      Account, Document, Electronic Chattel Paper, Equipment, Farm Products, General
      Intangible, Goods, Health-Care-Insurance Receivable, Instrument, Inventory,
      Investment Property, Letter-of-Credit Right, Non-Cash Proceeds, Payment
      Intangible, Proceeds, Promissory Note, Software, Supporting Obligation, and
      Tangible Chattel Paper. Such terms (and those in the following clauses of this
      Section 1) shall include in the singular number the plural and in the plural
      number the singular. Nothing contained in this subsection
      (b)
      or
      otherwise in this Agreement shall be construed to mean that uncapitalized terms
      used herein which are defined in the UCC or the NYUCC shall not have the
      meanings ascribed to such terms in such statutes.

     

    (c)  The
      following capitalized terms, when used herein and not defined in Article 9
      of
      the NYUCC, shall have the meanings provided therefor elsewhere in the NYUCC:
      Certificated Security, Letter of Credit, Securities Intermediary and
      Uncertificated Security.

     

    (d)  As
      used
      herein, the following capitalized terms shall have the following
      meanings:

     

    “Event
      of Default”
means
      any of the following: (i) any failure by the Company to pay, when due, any
      amount payable by it under any Transaction Document, (ii) any other
      material breach by the Company of any provision of any Transaction Document
      which is not cured within 30 days, (iii) any representation or warranty made
      by
      the Company in any Transaction Document, or otherwise in writing in connection
      with any such document, or in any certificate or statement furnished pursuant
      to
      or in connection with any such document, shall be breached or shall prove to
      be
      untrue in any material respect on the date as of which made; (iv) the occurrence
      of an Insolvency Event with respect to the Company; or (v) any other Event
      of
      Default (as defined in any Transaction Document).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Government
      Authority”
shall
      mean any nation or government, any state or political subdivision thereof and
      any entity exercising executive, legislative, judicial, regulatory or
      administrative functions of or pertaining to government.

     

    “Insolvency
      Event”
means
      the occurrence of any of the following with respect to the Company or another
      Person: such Person shall make an assignment for the benefit of, or composition
      with, creditors or shall become insolvent or be unable, or generally fail,
      to
      pay its debts when due; or any bankruptcy, insolvency or other proceeding for
      the relief of financially distressed debtors shall be commenced with respect
      to
      such Person, or a receiver, liquidator, custodian or trustee shall be appointed
      for such Person or a substantial part of its assets, and, if any of the same
      shall occur involuntarily as to such Person, it shall not be dismissed, stayed
      or discharged within 60 days; or if any order for relief shall be entered
      against such Person under Title 11 of the United States Code entitled
“Bankruptcy”; or such Person shall take any action to effect, or which indicates
      its acquiescence in, any of the foregoing; in each of the foregoing situations,
      whether under the laws of the United States or the analogous laws of any foreign
      jurisdiction.

     

    “Loan
      Agreement”
means
      each agreement (if, as and when executed by the Company and the Lenders)
      pursuant to or in connection with which any financial accommodation is extended
      by the Lenders to or on behalf of the Company, including, without limitation,
      the Debentures. 

     

    “NYUCC”
means
      the Uniform Commercial Code of the State of New York (as currently in effect
      and
      as the same may from time to time hereafter be amended).

     

    “Patents”
means
      (i) all United States or other patents which the Company may from time to time
      possess or be otherwise entitled to use, and all licenses of United States
      or
      other patents which the Company may from time to time possess or be otherwise
      entitled to use (including without limitation the patents described in Section
      8(f)
      hereof),
      (ii) all re-issues, divisions, continuations, renewals, extensions and
      continuations-in-part thereof, (iii) the right to sue for past, present and
      future infringements of the foregoing, and (iv) all rights corresponding to
      all
      of the foregoing throughout the world.

     

    “Payment
      Default”
means
      the failure by the Company to make any payment required to be made by it
      pursuant to any Transaction Document to which it is a party at the time when
      same is due (after giving effect to any applicable grace period).

     

    “Person”
shall
      mean and include an individual, a partnership, a corporation (including a
      business trust), a joint stock company, a limited liability company, a
      not-for-profit corporation or other not-for-profit entity, a trust, an
      unincorporated association, a joint venture or other entity or a Government
      Authority.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Secured
      Obligations”
means
      all of the indebtedness, obligations and liabilities of the Company to the
      Lenders, individually or collectively, whether direct or indirect, joint or
      several, absolute or contingent, due or to become due, now existing or hereafter
      arising, pursuant to one or more of the Transaction Documents.

     

    “State”
means
      the State of New York.

     

    “Trademarks”
means
      (i) all United States or other trademarks which the Company may from time to
      time possess or be otherwise entitled to use, together with the goodwill of
      the
      business connected with the use of, and symbolized by, such trademarks (together
      with the trademarks described in Section 8(f)
      hereof),
      (ii) all re-issues, divisions, continuations, renewals, extensions and
      continuations-in-part thereof, (iii) the right to sue for past, present and
      future infringements of the foregoing, and (iv) all rights corresponding to
      all
      of the foregoing throughout the world (excluding intent-to-use United States
      applications prior to their conversion into use-based
      applications).

     

    (e)  Unless
      otherwise specified, each reference in this Agreement or in any other
      Transaction Document to a Transaction Document shall mean such Transaction
      Document as the same may from time to time be amended, restated, replaced,
      supplemented or otherwise modified from time to time with the consent of the
      Lenders.

     

    (f)  As
      used
      in this Agreement, the terms "including," "including without limitation" and
      "such as" (and like terms) are illustrative and not limitative. No difference
      shall be imputed to the use in some places herein of “including” and in others
      of “including without limitation.” Phrases such as "hereof" and "herein" refer
      to the entire Agreement and not just the section or other portion in which
      said
      reference appears.

     

    2.  Grant
      of Security Interest.
      The
      Company hereby grants to the Lenders, to secure the payment and performance
      in
      full of all of the Secured Obligations, a security interest in and so pledges
      and assigns to the Lenders the following properties, assets and rights of the
      Company, wherever located, whether now owned or hereafter acquired or arising,
      and all Proceeds and products thereof (all of the same being hereinafter called
      the “Collateral”):
      all
      personal and fixture property of every kind and nature including without
      limitation all Goods (including Inventory, Equipment and any Accessions
      thereto), Instruments (including Promissory Notes), Documents, Accounts, Chattel
      Paper (whether Tangible Chattel Paper or Electronic Chattel Paper), Deposit
      Accounts, Letter-of-Credit Rights (whether or not the Letter of Credit is
      evidenced by a writing), Commercial Tort Claims, Investment Property, Supporting
      Obligations, any other contract rights or rights to the payment of money,
      insurance claims and proceeds, tort claims, and all General Intangibles
      (including all Payment Intangibles). The Lenders acknowledge that the attachment
      of its security interest in any Commercial Tort Claim as original collateral
      is
      subject to the Company’s compliance with Section 4(g).

     

    3.  Authorization
      to File Financing Statements.
      The
      Company hereby irrevocably authorizes the Lenders at any time and from time
      to
      time to file in any Uniform Commercial Code jurisdiction any initial Financing
      Statements and amendments thereto that (a) indicate the Collateral
      (i) as all assets of the Company or words of similar effect, regardless of
      whether any particular asset included in the Collateral falls within the scope
      of Article 9 of the NYUCC, or (ii) as being of an equal or lesser scope or
      with greater detail, and (b) contain any other information required by part
      5 of Article 9 of the NYUCC for the sufficiency or filing office acceptance
      of
      any Financing Statement or amendment, including (i) whether the Company is
      an organization, the type of organization and any organization identification
      number issued to the Company and, (ii) in the case of a Financing Statement
      filed as a fixture filing or indicating Collateral as as-extracted collateral
      or
      timber to be cut, a sufficient description of real property to which the
      Collateral relates. The Company agrees to furnish any such information to the
      Lenders promptly upon request. To the extent the Lenders have previously filed
      any Financing Statement with respect to any Collateral, the Company ratifies,
      confirms and approves the filing of same by the Lenders.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    4.  Other
      Actions.
      To
      further insure the attachment, perfection and first priority of, and the ability
      of the Lenders to enforce the Lenders’ security interest in the Collateral, the
      Company agrees, in each case at the Company’s own expense, to take the following
      actions with respect to the following Collateral:

     

    (a)  Promissory
      Notes and Tangible Chattel Paper.
      If the
      Company shall at any time hold or acquire any Promissory Notes or Tangible
      Chattel Paper, the Company shall (when an Event of Default exists, unless
      required otherwise by another Loan Document) forthwith endorse, assign and
      deliver the same to the Lenders, accompanied by such instruments of transfer
      or
      assignment duly executed in blank as the Lenders may from time to time
      specify.

     

    (b)  Deposit
      Accounts.
      For
      each Deposit Account that the Company at any time opens or maintains, the
      Company shall, at the Lenders’ request made at any time while an Event of
      Default exists, pursuant to an agreement in form and substance satisfactory
      to
      the Lenders, either (1) cause the depositary bank to agree to comply at any
      time with instructions from the Lenders to such depositary bank directing the
      disposition of funds from time to time credited to such Deposit Account, without
      further consent of the Company, or (2) arrange for the Lenders to become
      the customers of the depositary bank with respect to the Deposit Account, with
      the Company being permitted, only with the consent of the Lenders, to exercise
      rights to withdraw funds from such Deposit Account. The Lenders agree with
      the
      Company that the Lenders shall not give any such instructions or withhold any
      withdrawal rights from the Company unless a Payment Default exists (or would
      exist after giving effect to any such withdrawal).
      The
      provisions of this paragraph shall not apply to (i) any Deposit Account for
      which the Company, the depositary bank and the Lenders have entered into a
      cash
      collateral or “control” agreement specially negotiated among the Company, the
      depositary bank and the Lenders for the purpose set forth herein,
      (ii) Deposit Accounts for which the Lenders are the depositary and
      (iii) Deposit Accounts specially and exclusively used for payroll, payroll
      taxes and other employee wage and benefit payments to or for the benefit of
      the
      Company’s salaried employees.

     

    (c)  Investment
      Property.
      If the
      Company shall at any time hold or acquire any Certificated Securities, the
      Company shall forthwith endorse, assign and deliver the same to the Lenders,
      accompanied by such instruments of transfer or assignment duly executed in
      blank
      as the Lenders may from time to time specify. If any securities now or hereafter
      acquired by the Company are uncertificated and are issued to the Company or
      its
      nominee directly by the issuer thereof, the Company shall immediately notify
      the
      Lenders thereof and, at the Lenders’ request and option, pursuant to an
      agreement in form and substance satisfactory to the Lenders, cause the issuer
      to
      agree to comply with instructions from the Lenders as to such securities,
      without further consent of the Company or such nominee. If any securities,
      whether certificated or uncertificated, or other Investment Property now or
      hereafter acquired by the Company are held by the Company or its nominee through
      a Securities Intermediary or Commodity Intermediary, the Company shall
      immediately notify the Lenders thereof and, at the Lenders’ request and option,
      pursuant to an agreement in form and substance satisfactory to the Lenders,
      either (i) cause such Securities Intermediary or (as the case may be)
      Commodity Intermediary to agree to comply with entitlement orders or other
      instructions from the Lenders to such Securities Intermediary as to such
      securities or other Investment Property, or (as the case may be) to apply any
      value distributed on account of any commodity contract as directed by the
      Lenders to such Commodity Intermediary, in each case without further consent
      of
      the Company or such nominee, or (ii) in the case of financial assets or
      other Investment Property held through a Securities Intermediary, arrange for
      the Lenders to become the entitlement holder with respect to such Investment
      Property, with the Company being permitted, only with the consent of the
      Lenders, to exercise rights to withdraw or otherwise deal with such Investment
      Property. The Lenders agree with the Company that the Lenders shall not give
      any
      such entitlement orders or instructions or directions to any such issuer,
      Securities Intermediary or Commodity Intermediary, and shall not withhold its
      consent to the exercise of any withdrawal or dealing rights by the Company,
      unless an Event of Default exists (or would exist after giving effect to any
      such investment or withdrawal). The provisions of this paragraph shall not
      apply
      to any financial assets credited to a securities account for which the Lenders
      is the Securities Intermediary. 

     

    
      
        
        

      

      
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    (d)  Collateral
      in the Possession of a Bailee.
      If any
      goods are at any time in the possession of a bailee, the Company shall promptly
      notify the Lenders thereof and, if requested by the Lenders, shall promptly
      obtain an acknowledgment from the bailee, in form and substance satisfactory
      to
      the Lenders, that the bailee holds such Collateral for the benefit of the
      Lenders and shall act upon the instructions of the Lenders, without the further
      consent of the Company. 

     

    (e)  Electronic
      Chattel Paper and Transferable Records.
      If the
      Company at any time holds or acquires an interest in any Electronic Chattel
      Paper or any “transferable record,” as that term is defined in Section 201 of
      the federal Electronic Signatures in Global and National Commerce Act, or in
§16
      of the Uniform Electronic Transactions Act as in effect in any relevant
      jurisdiction, the Company shall promptly notify the Lenders thereof and, at
      the
      request of the Lenders, shall take such action as the Lenders may reasonably
      request to vest in the Lenders control, under §9-105 of the NYUCC, of such
      Electronic Chattel Paper or control under Section 201 of the federal Electronic
      Signatures in Global and National Commerce Act or, as the case may be, §16 of
      the Uniform Electronic Transactions Act, as so in effect in such jurisdiction,
      of such transferable record. 

     

    (f)  Letter-of-Credit
      Rights.
      If the
      Company is at any time a beneficiary under a letter of credit now or hereafter
      issued in favor of the Company, the Company shall promptly notify the Lenders
      thereof and, at the request and option of the Lenders at any time when an Event
      of Default exists, the Company shall, pursuant to an agreement in form and
      substance satisfactory to the Lenders, either (i) arrange for the issuer
      and any confirmer of such letter of credit to consent to an assignment to the
      Lenders of the proceeds of any drawing under the letter of credit or
      (ii) arrange for the Lenders to become the transferee beneficiaries of the
      letter of credit, with the Lenders agreeing, in each case, that the proceeds
      of
      any drawing under the letter to credit shall be held as collateral for the
      Secured Obligations.

     

    (g)  Commercial
      Tort Claims.
      If the
      Company shall at any time hold or acquire a Commercial Tort Claim, the Company
      shall immediately notify the Lenders in a writing signed by the Company of
      the
      brief details thereof and grant to the Lenders in such writing a security
      interest therein and in the proceeds thereof, all upon the terms of this
      Agreement, with such writing to be in form and substance satisfactory to the
      Lenders. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (h)  Other
      Actions as to any and all Collateral.
      The
      Company further agrees to take any other action reasonably requested by the
      Lenders to insure the attachment, perfection and first priority of, and the
      ability of the Lenders to enforce, the Lenders’ security interest in any and all
      of the Collateral including, without limitation, (1) executing, delivering
      and, where appropriate, filing Financing Statements and amendments relating
      thereto under the Uniform Commercial Code, to the extent, if any, that the
      Company’s signature thereon is required therefor, (2) causing the Lenders’
name to be noted as secured party on any certificate of title for a titled
      good
      if such notation is a condition to attachment, perfection or priority of, or
      ability of the Lenders to enforce, the Lenders’ security interest in such
      Collateral, (3) complying with any provision of any statute, regulation or
      treaty of the United States or any foreign jurisdiction to any Collateral if
      compliance with such provision is a condition to attachment, perfection or
      priority of (or comparable concepts under the laws of the United States or
      any
      foreign jurisdiction), or ability of the Lenders to enforce, the Lenders’
security interest in such Collateral, (4) making such filings in the United
      States Copyright Office and the United States Patent and Trademark Office as
      the
      Lenders shall request to register, file or otherwise confirm Lenders’ security
      interest in intellectual property, or rights therein, held by the Company,
      (5) obtaining governmental and other third party consents and approvals,
      including without limitation any consent of any licensor, lessor or other person
      obligated on Collateral, (6) obtaining waivers from mortgagees and
      landlords in form and substance satisfactory to the Lenders and (7) taking
      all actions required by any earlier versions of the Uniform Commercial Code
      or
      by other law, as applicable in any relevant Uniform Commercial Code
      jurisdiction, or by other law as applicable in any foreign
      jurisdiction.

     

    5.  Conflicts;
      Other Jurisdictions.
      In
      the
      case of any direct conflict between the provisions of this Agreement and any
      other Transaction Document, whether governed by the laws of the United States,
      any state therein or any other jurisdiction, those provisions shall control
      which afford to the Secured Party the greater rights, security and
      indemnification. Without limiting the generality of the foregoing, the parties
      hereto acknowledge that the inclusion of supplemental rights or remedies in
      favor of the Secured Party with respect to any Collateral in any such
      Transaction Document shall not be deemed a conflict with this
      Agreement. 

     

    6.  Representations
      and Warranties.
      The
      Company hereby makes the following representations and warranties to the
      Lenders, which representations and warranties shall survive the execution,
      delivery and performance of this Agreement and the other Transaction
      Documents:

     

    (a)  The
      Company is the owner of, or has other rights in, the Collateral, free from
      any
      adverse lien, security interest or other encumbrance, except for the security
      interest created by this Agreement and other liens permitted by the Transaction
      Documents.

     

    (b)  None
      of
      the Collateral constitutes, or is the proceeds of, Farm Products. 

     

    (c)  None
      of
      the account debtors or other persons obligated on any of the Collateral is
      a
      governmental authority subject to the Federal Assignment of Claims Act or like
      federal, state or local statute or rule in respect of such
      Collateral.

     

    (d)  The
      Company holds no Commercial Tort Claim.

     

    (e)  The
      Company has at all times operated its business in compliance with all applicable
      provisions of the federal Fair Labor Standards Act, as amended, and with all
      applicable provisions of federal, state and local statutes and ordinances
      dealing with the control, shipment, storage or disposal of hazardous materials
      or substances.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (f)  On
      the
      date hereof, the Company does not hold or have any interest in (directly or
      through a nominee or through a Securities Intermediary or Commodity
      Intermediary) any Investment Property (whether Certificated Securities,
      Uncertificated Securities or otherwise).

     

    (g)  On
      the
      date hereof: 

     

    (i)  the
      Company does not hold or otherwise have any interest in any Electronic Chattel
      Paper or any such transferable record.

     

    (ii)  the
      Company is not a beneficiary under a letter of credit issued in favor of the
      Company.

     

    (iii)  the
      Company possesses no rights in any material or significant copyrights,
      regardless of whether same have been registered with the United States Copyright
      Office or not.

     

    7.  Grant
      of License to Use Patent and Trademark Collateral.
      For the
      purpose of enabling the Lenders to exercise rights and remedies hereunder at
      such time (after the occurrence of an Event of Default) as the Lenders, without
      regard to this Section 7,
      shall
      be lawfully entitled to exercise such rights and remedies, the Company hereby
      grants to the Lenders (effective upon the occurrence of an Event of Default)
      an
      irrevocable, non-exclusive license (exercisable without payment of royalty
      or
      other compensation to the Company) to use, license or sublicense any Patent
      or
      Trademark now owned or hereafter acquired by the Company (or as to which Company
      is now or hereafter a licensee) and wherever the same may be located, and
      including in such license reasonable access to all media in which any of the
      licensed items may be recorded or stored and to all computer and automatic
      machinery software and programs used for the compilation or printout
      thereof.

     

    8.  Special
      Provisions Concerning Trademarks and Patents.

     

    (a)  The
      Company (either itself or through licensees) will, for each Patent, not do
      any
      act, or omit to do any act, whereby any Patent which is material to the conduct
      of the Company’s business may become abandoned or dedicated.

     

    (b)  The
      Company shall notify the Lenders immediately if it knows or has reason to know
      that any application or registration relating to any Patent or Trademark which
      is material to the conduct of the Company’s business may become abandoned or
      dedicated, or of any adverse determination or development (including, without
      limitation, the institution of, or any such determination or development in,
      any
      proceeding in the United States Patent and Trademark Office or any court)
      regarding the Company’s ownership of any Patent or Trademark which is material
      to the Company’s business, its right to register the same, or to keep and
      maintain the same. 

     

    (c)  In
      no
      event shall the Company, either itself or through any agent, employee, licensee
      or designee, file an application for the registration of any Patent or Trademark
      with the United States Patent and Trademark Office or any similar office or
      agency in any other country or any political subdivision thereof, unless it
      promptly informs the Lenders, and, upon request of the Lenders, executes and
      delivers any and all agreements, instruments, documents, and papers as the
      Lenders may request to evidence the Lenders’ security interest in such Patent or
      Trademark and the goodwill and general intangibles of the Company relating
      thereto or represented thereby, and the Company hereby constitutes the Lenders
      its attorney-in-fact after an Event of Default has occurred to execute and
      file
      all such writings for the foregoing purposes, all acts of such attorney being
      hereby ratified and confirmed; such power, being coupled with an interest,
      is
      irrevocable until the Secured Obligations are paid in full. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (d)  The
      Company will take all necessary steps that are consistent with good business
      practices in any proceeding before the United States Patent and Trademark Office
      or any similar office or agency in any other country or any political
      subdivision thereof, to maintain and pursue each application relating to the
      Patents (and to obtain the relevant registration) and to maintain each
      registration of each of the Patents which is material to the conduct of the
      Company’s business, including, without limitation, filing of applications for
      renewal, affidavits of use, affidavits of incontestability and opposition,
      interference and cancellation proceedings. 

     

    (e)  In
      the
      event that any Collateral consisting of a Patent is infringed, misappropriated
      or diluted by a third party, the Company shall notify the Lenders within (30)
      days after it learns thereof and shall, if consistent with good business
      practice, promptly sue for infringement, misappropriation or dilution and to
      recover any and all damages for such infringement, misappropriation or dilution,
      and take such other actions as are appropriate under the circumstances to
      protect such Collateral consisting of a Patent. 

     

    (f)  If,
      before the Secured Obligations have been satisfied in full, the Company obtains
      rights to any new trademark material to its business or new patent, or becomes
      entitled to the benefit of any trademark material to its business or patent
      application or patent for any reissue, division, continuation, renewal,
      extension, or continuation-in-part of any Patent, or any improvement on any
      Patent, or any Trademark, the provisions of Section 2
      hereof
      shall automatically apply thereto and the Company shall give the Lenders prompt
      notice thereof in writing. 

     

    (g)  The
      Company shall have the duty, through counsel reasonably acceptable to the
      Lenders, to prosecute diligently any patent or trademark application pending
      as
      of the date of this Agreement or thereafter until the Secured Obligations have
      been paid in full, to make application on unpatented but patentable inventions
      and to preserve and maintain all rights in patent and trademark applications;
      provided,
      however,
      that
      the Company shall have no obligation to make application on any unpatented
      but
      patentable inventions if making such application would be unnecessary or
      imprudent in the good faith business judgment of the Company. Any expenses
      incurred in connection with such an application shall be borne by the Company.
      

     

    (h)  The
      Lenders shall have the right but shall in no way be obligated to bring suit
      in
      its own name to enforce the Patents and Trademarks and any license thereunder,
      in which event the Company shall, at the request of the Lenders, do any and
      all
      lawful acts and execute any and all proper documents required by the Lenders
      in
      aid of such enforcement action and indemnify the Lenders for all costs and
      expenses incurred by the Lenders in the exercise of its rights under this
      Section (h). 

     

    (i)  The
      Company represents and warrants that (x) it has no Patents or Trademarks which
      are material to the business or operations of the Company or otherwise important
      to the Company except such as are listed on Schedule 12 to the Perfection
      Certificate, and (y) it is not the holder, owner or licensee of any copyright
      (i) material to its business or (ii) which has been registered with the United
      States Copyright Office. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (j)  Until
      the
      occurrence of an Event of Default, the Lenders hereby grant to the Company
      the
      exclusive, nontransferable right and license to use the Trademarks and to make,
      have made, use and sell the inventions disclosed and claimed in the Patents
      for
      the Company’s benefit and account and for none other. The Company agrees not to
      sell or assign its interest in, or grant any sublicense under, the license
      granted to the Company in this clause (j)
      without
      the prior written consent of the Lenders, which consent will not be unreasonably
      withheld. 

     

    9.  Covenants
      Concerning Company’s Legal Status.
      The
      Company covenants with the Lenders as follows: (a) without providing at
      least 60 days prior written notice to the Lenders, the Company will not change
      its name, its place of business or, if more than one, chief executive office,
      or
      its mailing address or organizational identification number if it has one,
      (b) if the Company does not have an organizational identification number
      and later obtains one, the Company shall forthwith notify the Lenders of such
      organizational identification number, and (c) the Company will not change
      its type of organization, jurisdiction of organization or other legal
      structure.

     

    10.  Covenants
      Concerning Collateral, Etc.
      The
      Company further covenants with the Lenders as follows:

     

    (a)  The
      Collateral, to the extent not delivered to the Lenders pursuant to Section
      4,
      will be
      kept at those locations listed on Schedule 10 hereto, and the Company will
      not
      remove the Collateral from such locations (except for the sale of Inventory
      in
      the ordinary course of the Company’s business) without providing at least 60
      days (or such lesser number of days agreed to at the relevant time by the
      Lenders) prior written notice to the Lenders.

     

    (b)  Except
      for the security interest herein granted and liens permitted by the Transaction
      Documents: (1) the Company is and shall be the owner of or have other rights
      in
      the Collateral free from any lien, security interest or other encumbrance,
      and
      (2) the Company shall defend the same against all claims and demands of all
      persons at any time claiming the same or any interests therein adverse to the
      Lenders.

     

    (c)  The
      Company shall not pledge, mortgage or create, or suffer to exist a security
      interest in the Collateral in favor of any person other than the Lenders except
      for liens permitted by the Transaction Documents.

     

    (d)  The
      Company will keep the Collateral in good order and repair (reasonable wear
      and
      tear excepted) and will not use the same in violation of law or any policy
      of
      insurance thereon.

     

    (e)  The
      Company will permit the Lenders, or its designee, to inspect the Collateral
      (wherever located) at any reasonable time.

     

    (f)  The
      Company will pay promptly when due all taxes, assessments, governmental charges
      and levies upon the Collateral or incurred in connection with the use or
      operation of such Collateral or incurred in connection with this Agreement
      (except for taxes, assessments and government charges which are being contested
      in good faith and by appropriate proceedings diligently conducted and the
      Company has set aside on its books adequate reserves therefor in accordance
      with
      generally accepted accounting principles). 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (g)  The
      Company will continue to operate its business in compliance with all applicable
      provisions of the federal Fair Labor Standards Act, as amended, and with all
      applicable provisions of federal, state and local statutes and ordinances
      dealing with the control, shipment, storage or disposal of hazardous materials
      or substances.

     

    (h)  The
      Company will not sell or otherwise dispose, or offer to sell or otherwise
      dispose, of the Collateral or any interest therein except for (1) sales and
      leases of Inventory, and licenses of general intangibles, in the ordinary course
      of the Company’s business and (2) sales or other dispositions of
      obsolescent items of equipment in the ordinary course of business consistent
      with the Company’s past practices except to the extent same is prohibited by the
      Note.

     

    (i)  The
      Company will, whenever the Company acquires or otherwise possesses any
      significant or material copyrights or any rights or interests therein, provide
      to the Lenders a list thereof, identified (to the extent applicable) by title,
      author and Copyright Office registration number and date.

     

    11.  Insurance.
      The
      Company will maintain with financially sound and reputable insurers insurance
      with respect to its properties and business against loss and damage by fire
      and
      other risks, casualties and contingencies in such manner and to the extent
      that
      like properties are customarily so insured by other corporations engaged in
      the
      same or similar business similarly situated. In the event of failure by the
      Company to provide and maintain insurance as herein provided, the Lenders may,
      at its option, provide such insurance and charge the amount thereof to the
      Company. Lenders, to the extent applicable to the type of policy, shall be
      named
      as a loss payee (“as its interests may appear” or like language); to the extent
      applicable and Lenders are not so named, such will be done no later than ten
      days following the Company’s execution hereof. Certificates of insurance naming
      Lenders as loss payee shall be promptly delivered to Lenders; such certificate
      shall also state, as to the policies referenced therein, that none of such
      policies shall be cancelled by the insurer without at least 30 days prior
      written notice to Lenders.

     

    12.  Collateral
      Protection Expenses; Preservation of Collateral.

     

    (a)  Expenses
      Incurred by Lenders.
      In its
      discretion, the Lenders may discharge taxes and other encumbrances at any time
      levied or placed on any of the Collateral, make repairs thereto and pay any
      necessary filing fees or, if the Company fails to do so, insurance premiums.
      The
      Company agrees to reimburse the Lenders on demand for any and all expenditures
      so made. The Lenders shall have no obligation to the Company to make any such
      expenditures, nor shall the making thereof relieve the Company of any
      default.

     

    (b)  Lenders’
      Obligations and Duties.
      Anything herein to the contrary notwithstanding, the Company shall remain liable
      for its obligations under each contract or agreement included in the Collateral.
      The Lenders shall not have any obligation or liability under any such contract
      or agreement by reason of or arising out of this Agreement or the receipt by
      the
      Lenders of any payment relating to any of the Collateral, nor shall the Lenders
      be obligated in any manner to perform any of the obligations of the Company
      under or pursuant to any such contract or agreement, to make inquiry as to
      the
      nature or sufficiency of any payment received by the Lenders in respect of
      the
      Collateral or as to the sufficiency of any performance by any party under any
      such contract or agreement, to present or file any claim, to take any action
      to
      enforce any performance or to collect the payment of any amounts which may
      have
      been assigned to the Lenders or to which the Lenders may be entitled at any
      time
      or times. The Lenders’ sole duty with respect to the custody, safe keeping and
      physical preservation of the Collateral in its possession, under §9-207 of the
      NYUCC of the State or otherwise, shall be to deal with such Collateral in the
      same manner as the Lenders deals with similar property for its own
      account.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    13.  Notification
      to Account Debtors and Other Persons Obligated on Collateral. Whenever
      an Event of Default exists, the Company shall, at the request of the Lenders,
      notify account debtors and other persons obligated on any of the Collateral
      of
      the security interest of the Lenders in any Account, Chattel Paper, General
      Intangible, Instrument or other Collateral and that payment thereof is to be
      made directly to the Lenders or to any financial institution designated by
      the
      Lenders as the Lenders’ agent therefor, and the Lenders may themselves whenever
      an Event of Default exists, without
      notice to or demand upon the Company, so notify account debtors and other
      persons obligated on Collateral. After the making of such a request or the
      giving of any such notification, the Company shall hold as trustee for the
      Lenders any Proceeds of collection of Accounts, Chattel Paper, General
      Intangibles, Instruments and other Collateral received by the Company without
      commingling the same with other funds of the Company and shall turn the same
      over to the Lenders in the identical form received, together with any necessary
      endorsements or assignments. The Lenders, at their option, shall apply the
      Proceeds of collection of Accounts, Chattel Paper, General Intangibles,
      Instruments and other Collateral received by the Lenders to the Secured
      Obligations, such Proceeds to be immediately entered after final payment in
      cash
      or other immediately available funds of the items giving rise to them, or hold
      such Proceeds as collateral for the Secured Obligations.

     

    14.  Power
      of Attorney.

     

    (a)  Appointment
      and Powers of Lenders.
      The
      Company hereby irrevocably constitutes and appoints the Lenders and any officer
      or agent thereof, with full power of substitution, as its true and lawful
      attorneys-in-fact with full irrevocable power and authority in the place and
      stead of the Company or in the Lenders’ own name, for the purpose of carrying
      out the terms of this Agreement, to take any and all appropriate action and
      to
      execute any and all documents and instruments that may be necessary or desirable
      to accomplish the purposes of this Agreement and, without limiting the
      generality of the foregoing, hereby gives said attorneys the power and right,
      on
      behalf of the Company, without notice to or assent by the Company, to do the
      following:

     

    (i)  whenever
      an Event of Default exists, generally to sell, transfer, pledge, make any
      agreement with respect to or otherwise deal with any of the Collateral in such
      manner as is consistent with the NYUCC and as fully and completely as though
      the
      Lenders were the absolute owner thereof for all purposes, and to do at the
      Company’s expense, at any time, or from time to time, all acts and things which
      the Lenders deem necessary to protect, preserve or realize upon the Collateral
      and the Lenders’ security interest therein, in order to effect the intent of
      this Agreement, all as fully and effectively as the Company might do, including,
      without limitation, (i) the filing and prosecuting of registration and
      transfer applications with the appropriate federal or local agencies or
      authorities with respect to trademarks, copyrights and patentable inventions
      and
      processes, and (ii) the execution, delivery and recording, in connection
      with any sale or other disposition of any Collateral, of the endorsements,
      assignments or other instruments of conveyance or transfer with respect to
      such
      Collateral; and

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (ii)  to
      the
      extent that the Company’s authorization given in Section 3
      is not
      sufficient, to file such Financing Statements with respect hereto, with or
      without the Company’s signature, or a photocopy of this Agreement in
      substitution for a Financing Statement, as the Lenders may deem appropriate
      and
      to execute in the Company’s name such Financing Statements and amendments
      thereto and continuation statements which may require the Company’s
      signature.

     

    (b)  Ratification
      by Company.
      To the
      extent permitted by law, the Company hereby ratifies all that said attorneys
      shall lawfully do or cause to be done by virtue of this Agreement. This power
      of
      attorney is a power coupled with an interest and shall be
      irrevocable.

     

    (c)  No
      Duty on Lenders.
      The
      powers conferred on the Lenders hereunder are solely to protect its interests
      in
      the Collateral and shall not impose any duty upon it to exercise any such
      powers. The Lenders shall be accountable only for the amounts that it actually
      receives as a result of the exercise of such powers and neither it nor any
      of
      its officers, directors, employees or agents shall be responsible to the Company
      for any act or failure to act, except for the Lenders’ own gross negligence or
      willful misconduct.

     

    15.  Remedies.
      Whenever an Event of Default exists, the Lenders may, without notice to or
      demand upon the Company, declare this Agreement to be in default, and the
      Lenders shall thereafter have in any jurisdiction in which enforcement hereof
      is
      sought, in addition to all other rights and remedies, the rights and remedies
      of
      a secured party under the NYUCC or of any other jurisdiction in which Collateral
      is located, including, without limitation, the right to take possession of
      the
      Collateral, and for that purpose the Lenders may, so far as the Company can
      give
      authority therefor, enter upon any premises on which the Collateral may be
      situated and remove the same therefrom. The Lenders may in their discretion
      require the Company to assemble all or any part of the Collateral at such
      location or locations within the jurisdiction(s) of the Company’s principal
      office(s) or at such other locations as the Lenders may reasonably designate.
      Unless the Collateral is perishable or threatens to decline speedily in value
      or
      is of a type customarily sold on a recognized market, the Lenders shall give
      to
      the Company at least five Business Days prior written notice of the time and
      place of any public sale of Collateral or of the time after which any private
      sale or any other intended disposition is to be made. The Company hereby
      acknowledges that five Business Days prior written notice of such sale or sales
      shall be reasonable notice. In addition, the Company waives any and all rights
      that it may have to a judicial hearing in advance of the enforcement of any
      of
      the Lenders’ rights hereunder, including, without limitation, the Lenders’ right
      following an Event of Default to take immediate possession of the Collateral
      and
      to exercise its rights with respect thereto.

     

    16.  Standards
      for Exercising Remedies.
      To the
      extent that applicable law imposes duties on the Lenders to exercise remedies
      in
      a commercially reasonable manner, the Company acknowledges and agrees that
      it is
      not commercially unreasonable for the Lenders (a) to incur or fail to incur
      expenses reasonably deemed necessary by the Lenders to prepare Collateral for
      disposition or otherwise to complete raw material or work in process into
      finished goods or other finished products for disposition, (b) to fail to
      obtain third party consents for access to Collateral to be disposed of, or
      to
      obtain or (if not required by other law) to fail to obtain governmental or
      third
      party consents for the collection or disposition of Collateral to be collected
      or disposed of, (c) to fail to exercise collection remedies against account
      debtors or other persons obligated on Collateral or to fail to remove liens
      or
      encumbrances on or any adverse claims against Collateral, (d) to exercise
      collection remedies against account debtors and other persons obligated on
      Collateral directly or through the use of collection agencies and other
      collection specialists, (e) to advertise dispositions of Collateral through
      publications or media of general circulation, whether or not the Collateral
      is
      of a specialized nature, (f) to contact other persons, whether or not in
      the same business as the Company, for expressions of interest in acquiring
      all
      or any portion of the Collateral, (g) to hire or fail to hire one or more
      professional auctioneers to assist in the disposition of Collateral, whether
      or
      not the collateral is of a specialized nature, (h) to dispose of Collateral
      by utilizing Internet sites that provide for the auction of assets of the types
      included in the Collateral or that have the reasonable capability of doing
      so,
      or that match buyers and sellers of assets, (i) to dispose of assets in
      wholesale rather than retail markets, (j) to disclaim disposition
      warranties, (k) to purchase insurance or credit enhancements to insure the
      Lenders against risks of loss, collection or disposition of Collateral or to
      provide to the Lenders a guaranteed return from the collection or disposition
      of
      Collateral, or (l) to the extent deemed appropriate by the Lenders, to
      obtain the services of other brokers, investment bankers, consultants and other
      professionals to assist the Lenders in the collection or disposition of any
      of
      the Collateral. The
      Company acknowledges that the purpose of this Section 16
      is to
      provide non-exhaustive indications of what actions or omissions by the Lenders
      would not be commercially unreasonable in the Lenders’ exercise of remedies
      against the Collateral and that other actions or omissions by the Lenders shall
      not be deemed commercially unreasonable solely on account of not being indicated
      in this Section 16.
      Without
      limitation upon the foregoing, nothing contained in this Section 16
      shall be
      construed to grant any rights to the Company or to impose any duties on the
      Lenders that would not have been granted or imposed by this Agreement or by
      applicable law in the absence of this Section 16.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    17.  No
      Waiver by Lenders, etc.
      The
      Lenders shall not be deemed to have waived any of its rights upon or under
      the
      Secured Obligations or the Collateral unless such waiver shall be in writing
      and
      signed by the Lenders and any other person or entity required by the Note to
      sign such waiver. No delay or omission on the part of the Lenders in exercising
      any right shall operate as a waiver of such right or any other right. A waiver
      on any one occasion shall not be construed as a bar to or waiver of any right
      on
      any future occasion. All rights and remedies of the Lenders with respect to
      the
      Secured Obligations or the Collateral, whether evidenced hereby or by any other
      instrument or papers, shall be cumulative and may be exercised singularly,
      alternatively, successively or concurrently at such time or at such times as
      the
      Lenders deems expedient.

     

    18.  Suretyship
      Waivers by Company.
      The
      Company waives demand, notice, protest, notice of acceptance of this Agreement,
      notice of loans made, credit extended, Collateral received or delivered or
      other
      action taken in reliance hereon and all other demands and notices of any
      description. With respect to both the Secured Obligations and the Collateral,
      the Company assents to any extension or postponement of the time of payment
      or
      any other indulgence, to any substitution, exchange or release of or failure
      to
      perfect any security interest in any Collateral, to the addition or release
      of
      any party or person primarily or secondarily liable, to the acceptance of
      partial payment thereon and the settlement, compromising or adjusting of any
      thereof, all in such manner and at such time or times as the Lenders may deem
      advisable. The Lenders shall have no duty as to the collection or protection
      of
      the Collateral or any income thereon, nor as to the preservation of rights
      against prior parties, nor as to the preservation of any rights pertaining
      thereto beyond the safe custody thereof as set forth in Section 12(b).
      The
      Company further waives any and all other suretyship defenses.

     

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

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    20.  Proceeds
      of Dispositions; Expenses.
      The
      Company shall pay to the Lenders on demand any and all expenses, including
      reasonable attorneys’ fees and disbursements, incurred or paid by the Lenders in
      protecting, preserving or enforcing the Lenders’ rights under or in respect of
      any of the Secured Obligations or any of the Collateral, or otherwise in
      connection with this Agreement. After deducting all of said expenses, the
      residue of any proceeds of collection or sale of the Secured Obligations or
      Collateral shall, to the extent actually received in cash, be applied to the
      payment of the Secured Obligations in such order or preference as the Lenders
      may determine or held by it as otherwise provided in the Note,
      proper
      allowance and provision being made for any Secured Obligations not then due.
      Upon the final payment and satisfaction in full of all of the Secured
      Obligations and after making any payments required by Sections 9-608(a)(1)(C)
      or
      9-615(a)(3) of the NYUCC or other applicable law, any excess shall be returned
      to the Company, and the Company shall remain liable for any deficiency in the
      payment of the Secured Obligations.

     

    21.  Overdue
      Amounts.
      Until
      paid, all amounts due and payable by the Company hereunder shall be a debt
      secured by the Collateral and shall bear, whether before or after judgment,
      interest (to the fullest extent permitted by applicable law) at the rate of
      eighteen percent (18%) per annum.

     

    22.  Governing
      Law.
      THIS
      AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
      CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW
      YORK WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE THAT WOULD RESULT IN THE
      APPLICATION OF THE LAWS OF ANOTHER JURISDICTION, except to the extent that
      matters of title or procedural issues of foreclosure are required to be governed
      by the laws of the state in which the Collateral, or part thereof, is
      located.

     

    23.  Jurisdiction.
      The
      Company hereby agrees that ANY LEGAL ACTION OR PROCEEDING AGAINST THE COMPANY
      WITH RESPECT TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT MAY BE BROUGHT
      IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR
      THE SOUTHERN DISTRICT OF NEW YORK AS THE LENDERS MAY ELECT, AND BY EXECUTION
      AND
      DELIVERY OF THIS AGREEMENT THE COMPANY ACCEPTS AND CONSENTS FOR ITSELF AND
      IN
      RESPECT TO ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF
      THE
      AFORESAID COURTS AND AGREES THAT SUCH JURISDICTION SHALL BE EXCLUSIVE, unless
      waived by the Lenders in writing, with respect to any action or proceeding
      brought by the Company against the Lenders, and further consents (to the extent
      permitted by applicable law) to the service of process in any such action or
      proceeding being made upon the Company by mail at the address stated alongside
      its name on the signature page hereof or at such other address as the Lenders
      are notified of in accordance with Section 24(g)
      hereof.
      The Company hereby waives any objection that it may now or hereafter have to
      the
      venue of any such suit or any such court or that such suit is brought in an
      inconvenient court. Nothing herein shall limit the right of the Lenders to
      bring
      proceedings against the Company in the courts of any other jurisdiction. The
      Company covenants that it is and will remain subject to service of process
      in
      the State of New York so long as any of the Secured Obligations is outstanding.
      Nothing
      herein shall affect the right of the Lenders to serve process in any other
      manner permitted by law.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    24.  Miscellaneous.

     

    (a)  No
      Waiver.
      No
      delay on the part of the Lenders in exercising any of their rights, remedies,
      powers and privileges hereunder or partial or single exercise thereof, shall
      constitute a waiver thereof. None of the terms and conditions of this Agreement
      may be changed, waived, modified or varied in any manner whatsoever unless
      in
      writing duly signed by the Company and the Lenders. No notice to or demand
      on
      the Company in any case shall entitle the Company to any other or further notice
      or demand in similar or other circumstances or constitute a waiver of any of
      the
      rights of the Lenders to any other or further action in any circumstances
      without notice or demand.

     

    (b)  Binding
      Effect.
      The
      obligations of the Company hereunder shall remain in full force and effect
      without regard to, and shall not be impaired by, (i) any bankruptcy, insolvency,
      reorganization, arrangement, readjustment, composition, liquidation or the
      like
      of the Company; (ii) any exercise or non-exercise, or any waiver of, any right,
      remedy, power or privilege under or in respect of this Agreement or any of
      the
      other Transaction Documents, any other agreement executed in connection with
      any
      of the foregoing whereby the Company has granted any Lien to the Lenders or
      any
      other agreement executed in connection with any of the foregoing, the Secured
      Obligations or any security for any of the Secured Obligations; or (iii) any
      amendment to or modification of any of the foregoing; whether or not the Company
      shall have notice or knowledge of any of the foregoing. The rights and remedies
      of the Lenders herein provided are cumulative and not exclusive of any rights
      or
      remedies which the Lenders would otherwise have.

     

    (c)  No
      Violation.
      All
      rights, remedies and powers provided by this Agreement may be exercised only
      to
      the extent that the exercise thereof does not violate any applicable provision
      of law, and the provisions hereof are intended to be subject to all applicable
      mandatory provisions of law that may be controlling and to be limited to the
      extent necessary so that they will not render this Agreement invalid,
      unenforceable in whole or in part or not entitled to be recorded, registered
      or
      filed under the provisions of any applicable law.

     

    (d)  No
      Obligation of Lenders.
      It is
      expressly agreed, anything herein, in the Transaction Documents or in any other
      agreement or instrument executed by the Company in connection with any of the
      Transaction Documents to the contrary notwithstanding, that the Company shall
      remain liable to perform all of the obligations, if any, assumed by it with
      respect to the Collateral and the Lenders shall not have any obligations or
      liabilities with respect to any Collateral by reason of or arising out of this
      Agreement, nor shall the Lenders be required or obligated in any manner to
      perform or fulfill any of the obligations of the Company under or pursuant
      to
      any or in respect of any Collateral.

     

    (e)  Successors.
      This
      Agreement shall be binding upon the Company and its successors and assigns
      and
      shall inure to the benefit of the Lenders and their respective successors and
      assigns, except that the Company may not transfer or assign any of its
      obligations, rights or interest hereunder without the prior written consent
      of
      the Lenders and any such purported assignment by the Company shall be void.
      All
      agreements, representations and warranties made herein shall survive the
      execution, delivery and performance of this Agreement.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (f)  Headings;
      Amendments.
      The
      descriptive headings of the several sections of this Agreement are inserted
      for
      convenience only and shall not in any way affect the meaning or construction
      of
      any provision of this Agreement. No provision of this Agreement shall be waived,
      amended or supplemented except by a written instrument executed by the Company
      and the Lenders.

     

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

     

    (h)  Notices.
      Any
      notice or demand upon the Company pursuant to this Agreement or any other
      Transaction Document shall be deemed to have been sufficiently given or served
      for all purposes thereof when mailed, postage prepaid, by registered or
      certified mail, return receipt requested, or when telegraphed, telecopied,
      telexed or sent by messenger or by Federal Express (or similar overnight express
      or courier service), to the Company at its address set forth below or at such
      other address as the Company may designate in a writing delivered to the
      Lenders, provided that in the case where the Lenders are required to give only
      five days’ notice of a proposed sale of the Collateral such notice shall not be
      deemed given until delivered to the chief executive office of the Company (or
      the latest such chief executive office of which the Lenders have been notified
      in accordance with the provisions hereof). All notices to the Lenders under
      this
      Agreement shall be deemed to have been given when delivered by mail, telegraph,
      telecopy, telex, messenger or Federal Express (or similar overnight express
      or
      courier service) to the Lenders at their respective addresses set forth below
      or
      at such other address as the Lenders may designate in a writing delivered to
      the
      Company.

     

    (i)  Counterparts.
      This
      Agreement may be executed in any number of counterparts and by the different
      parties hereto on separate counterparts, each of which when so executed and
      delivered shall be an original, but all of which counterparts taken together
      shall be deemed to constitute one and the same instrument. Telecopied signatures
      hereto shall be of the same force and effect as an original of a manually signed
      copy.

     

    25.  Waiver
      of Jury Trial.
      EACH OF
      THE COMPANY AND THE LENDERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
      WAIVE ANY AND ALL RIGHTS EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
      LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
      AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
      DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE LENDERS,
      THE
      COMPANY OR ANY OTHER PERSON. Except
      as
      prohibited by law, the Company waives any other right which it may have to
      claim
      or recover in any litigation referred to in the preceding sentence any special,
      exemplary, punitive or consequential damages or any damages other than, or
      in
      addition to, actual damages. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

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

     

    
      	
               

            	
              FUTURE
                NOW GROUP, INC.

               

              By: 

              
                
Name:
                

              Title:
                

              Address: 

               

            
	 	 
	
              Accepted:

               

              PROFESSIONAL
                OFFSHORE OPPORTUNITY 

              FUND,
                LTD.

               

              By:
                

              

              Name:
                

              Title:
                

               

              Address:

               

               

              PROFESSIONAL
                TRADERS FUND, 

              LLC

               

              By:

              
                

              

              Name:
                

              Title:

               

              Address: 

            	
               

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    Schedule
      10

    

    Location
      of Collateral

    

    55
      Washington Street, Suite 419

    Brooklyn,
      NY 11201

     

    
      
        
        

      

      
        18

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