Document:

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<A NAME=A001></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITY AGREEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
<A NAME=A002></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: Laurus Master Fund, Ltd.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c/o Onshore Corporate Services, Ltd.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P.O.
Box 1234 G.T<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Queensgate House<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;South Church Street <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grand
Cayman, Cayman Islands </FONT><i></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
</i>
<A NAME=A005></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gentlemen: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;
          To secure the payment of all Obligations (as hereafter defined), we hereby grant
          to you a continuing security interest in all of the following property now owned
          or at any time hereafter acquired by us, or in which we now have or at any time
          in the future may acquire any right, title or interest (the
          &#147;Collateral&#148;): all accounts, inventory, equipment, goods, documents,
          instruments (including, without limitation, promissory notes), contract rights,
          general intangibles (including, without limitation, payment intangibles),
          chattel paper, supporting obligations, investment property, letter-of-credit
          rights, trademarks and tradestyles in which we now have or hereafter may acquire
          any right, title or interest, all proceeds and products thereof (including,
          without limitation, proceeds of insurance) and all additions, accessions and
          substitutions thereto or therefor. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;
          The term &#147;Obligations&#148; as used herein shall mean and include all
          debts, liabilities and obligations owing by us to you and all loans, advances,
          extensions of credit, endorsements, guaranties, benefits and/or financial
          accommodations heretofore or hereafter made, granted or extended by you to us or
          which you have or will become obligated to make, grant or extend to us or for
          our account and any and all interest, charges and/or expenses heretofore or
          hereafter owing by us to you and any and all renewals or extensions of any of
          the foregoing, no matter how or when arising, direct or indirect, absolute or
          contingent, liquidated or unliquidated, and whether under any present or future
          agreement or instruments between or among us, you or otherwise, including,
          without limitation, all obligations owing by us to you under the Secured
          Convertible Note dated as of the date hereof made by us in favor of you in the
          original principal amount of $2,000,000 (as amended, modified and supplemented
          from time to time, the &#147;Note&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;
          We hereby represent, warrant and covenant to you that: (a) we are a company
          validly existing, in good standing and formed under the laws of the State of
          Delaware with an organization identification number of 0927269 and we will
          provide you thirty days&#146; prior written notice of any change in our state of
          formation; (b) our legal name is &#147;Digital Angel Corporation&#148;, as set
          forth in our Certificate of Incorporation as amended through the date hereof;
          (c) we are the lawful owner of the Collateral and have the sole right to grant a
          security interest therein and will defend the Collateral against all claims and
          demands of all persons and entities; (d) we will keep the Collateral free and
          clear of all attachments, levies, taxes, liens, security interests and
          encumbrances of every kind and nature, other than those liens and security
          interests set forth on Schedule 2.9 to the Securities Purchase Agreement dated
          as of the date hereof between us and you; (e) we will at our own cost and
          expense keep the Collateral in good state of repair and will not waste or
          destroy the same or any part thereof; (f) we will not without your prior written
          consent, sell, exchange, lease or otherwise dispose of the Collateral or any of
          our rights therein or permit any lien or security interest to attach to same,
          except that created by this Agreement; (g) we will insure the Collateral in your
          name against loss or damage by fire, theft, burglary, pilferage, loss in transit
          and such other hazards as you shall specify in amounts and under policies by
          insurers acceptable to you and all premiums thereon shall be paid by us and the
          policies delivered to you. If we fail to do so, you may procure such insurance
          and the cost thereof shall constitute Obligations; (h) we will at all times
          allow you or your representatives free access to and the right of inspection of
          the Collateral; and (i) we hereby indemnify and save you harmless from all loss,
          costs, damage, liability and/or expense, including reasonable attorneys&#146;
          fees, that you may sustain or incur to enforce payment, performance or
          fulfillment of any of the Obligations and/or in the enforcement of this
          Agreement or the Note or in the prosecution or defense of any action or
          proceeding either against you or us concerning any matter growing out of or in
          connection with this Agreement, the Note and/or any of the Obligations and/or
          any of the Collateral. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;
          We shall be in default under this Agreement upon the happening of any of the
          following events or conditions, each such event or condition an &#147;Event of
          Default&#148;: (a) an Event of Default shall have occurred under and as defined
          in the Note, which shall not have been cured during any applicable cure or grace
          period, (b) the loss, theft, substantial damage, destruction or sale of any
          Collateral having a value in the aggregate for all such occurrences of $250,000
          or more, (c) the encumbrance of any of the Collateral, other than in favor of
          Wells Fargo Business Credit, Inc., the lien priorities with respect to which are
          governed by the terms of a Subordination Agreement dated as of the date hereof
          or (d) a default shall have occurred under the Registration Rights Agreement
          dated as of the date hereof between you and us, as the same may be amended,
          modified and supplemented from time to time, which shall not have been cured
          during any applicable cure or grace period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;
          Upon the occurrence of any Event of Default and at any time thereafter, you may
          declare all Obligations immediately due and payable and you shall have the
          remedies of a secured party provided in the Uniform Commercial Code as in effect
          in the State of New York, this Agreement and other applicable law. You will at
          all times have the right to take possession of the Collateral and to maintain
          such possession on our premises or to remove the Collateral or any part thereof
          to such other premises as you may desire. Upon your request, we shall assemble
          the Collateral and make it available to you at a place designated by you. If any
          notification of intended disposition of any Collateral is required by law, such
          notification, if mailed, shall be deemed properly and reasonably given if mailed
          at least ten days before such disposition, postage prepaid, addressed to us
          either at our address shown herein or at any address appearing on your records
          for us. Any proceeds of any disposition of any of the Collateral shall be
          applied by you to the payment of all expenses in connection with the sale of the
          Collateral, including reasonable attorneys&#146; fees and other legal expenses
          and disbursements and the reasonable expense of retaking, holding, preparing for
          sale, selling, and the like, and any balance of such proceeds may be applied by
          you toward the payment of the Obligations in such order of application as you
          may elect, and we shall be liable for any deficiency. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;
          If we default in the performance or fulfillment of any of the terms, conditions,
          promises, covenants, provisions or warranties on our part to be performed or
          fulfilled under or pursuant to this Agreement which you deem material in the
          good faith exercise of your reasonable discretion, you may, at your option
          without waiving your right to enforce this Agreement according to its terms,
          immediately or at any time thereafter and without notice to us, perform or
          fulfill the same or cause the performance or fulfillment of the same for our
          account and at our sole cost and expense, and the cost and expense thereof
          (including reasonable attorneys&#146; fees) shall be added to the Obligations
          and shall be payable on demand with interest thereon at the highest rate
          permitted by law. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;
          We appoint you, any of your officers, employees or any other person or entity
          whom you may designate as our attorney, with power to execute such documents in
          our behalf and to supply any omitted information and correct patent errors in
          any documents executed by us or on our behalf; to file financing statements
          against us covering the Collateral; to sign our name on public records; and to
          do all other things you deem necessary to carry out this Agreement. We hereby
          ratify and approve all acts of the attorney and neither you nor the attorney
          will be liable for any acts of commission or omission, nor for any error of
          judgment or mistake of fact or law. This power, being coupled with an interest,
          is irrevocable so long as any Obligations remains unpaid. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;
          No delay or failure on your part in exercising any right, privilege or option
          hereunder shall operate as a waiver of such or of any other right, privilege,
          remedy or option, and no waiver whatever shall be valid unless in writing,
          signed by you and then only to the extent therein set forth, and no waiver by
          you of any default shall operate as a waiver of any other default or of the same
          default on a future occasion. Your books and records containing entries with
          respect to the Obligations shall be admissible in evidence in any action or
          proceeding, shall be binding upon us for the purpose of establishing the items
          therein set forth and shall constitute prima facie proof thereof. You shall have
          the right to enforce any one or more of the remedies available to you,
          successively, alternately or concurrently. We agree to join with you in
          executing financing statements or other instruments to the extent required by
          the Uniform Commercial Code in form satisfactory to you and in executing such
          other documents or instruments as may be required or deemed necessary by you for
          purposes of affecting or continuing your security interest in the Collateral. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;
          This Agreement shall be governed by and construed in accordance with the laws of
          the State of New York and cannot be terminated orally. All of the rights,
          remedies, options, privileges and elections given to you hereunder shall inure
          to the benefit of your successors and assigns. The term &#147;you&#148; as
          herein used shall include your company, any parent of your company, any of your
          subsidiaries and any co-subsidiaries of your parent, whether now existing or
          hereafter created or acquired, and all of the terms, conditions, promises,
          covenants, provisions and warranties of this Agreement shall inure to the
          benefit of and shall bind the representatives, successors and assigns of each of
          us and them. You and we hereby (a) waive any and all right to trial by jury in
          litigation relating to this Agreement and the transactions contemplated hereby
          and we agree not to assert any counterclaim in such litigation, (b) submit to
          the nonexclusive jurisdiction of any New York State court sitting in the borough
          of Manhattan, the city of New York and (c) waive any objection you or we may
          have as to the bringing or maintaining of such action with any such court. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<A NAME=A006></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[CONTINUED ON FOLLOWING
PAGE] </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;
          All notices from you to us shall be sufficiently given if mailed or delivered to
          us at our address set forth below. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
<A NAME=A007></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Very
truly yours, </FONT><i></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
</i>
<A NAME=A008></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DIGITAL
ANGEL CORPORATION </FONT><i></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
</i>
<A NAME=A009></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:_______________________________<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: </FONT>
<i></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
</i>
<A NAME=A010></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Address:
490 Villaume Avenue<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;South St. Paul, MN 55075 </FONT>
<i></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
</i>
<A NAME=A011></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated
as of: July 31, 2003 </FONT><i></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
</i>
<A NAME=A012></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ACKNOWLEDGED: </FONT></P>

<i>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
</i>
<A NAME=A013></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LAURUS MASTER FUND, LTD. </FONT></P>

<i>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
</i>
<A NAME=A014></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:_______________________<br>
Name:<br>
Title: </FONT></P>Monthly Payment Date Statement

 EXHIBIT 10.1 
  

	THE BANK OF NEW YORK	  	 	  	 
	 101 Barclay Street, 8 West
	  	 	  	Distribution Date: 6/16/03
	 New York, NY 10286
	  	 	  	 
	 Officer:
	  	Trish O’Neill-Manella	  	212.815.3956	  	 
	 Associate:
	  	 Cirino Emanuele
	  	212.815.3087	  	 

  
 GreenPoint Mortgage
Securities Inc. 
  
 GreenPoint Home Equity Loan Trust
2003-1 
  
 Home Equity Loan Asset-Backed Notes

 Series 2003-1 
  

	Certificateholder Monthly Distribution Summary
												
	 Class

	  	Cusip

	  	Class
Description

	  	Certificate
Rate Type

	  	Beginning
Balance

	  	Pass
Through
Rate (%)

	  	Principal
Distribution

	  	Interest
Distribution

	  	Total
Distribution

	  	Current
Realized
Losses

	  	Ending
Balance

	  	Cumulative
Realized
Losses

	 A
	  	395385AP2	  	Senior	  	Var-Act/360	  	290,418,000.00	  	1.580000	  	10,848,946.28	  	356,891.45	  	11,205,837.74	  	    —  	  	279,569,053.72	  	    —  
	 R
	  	 	  	Senior	  	Fix-30/360	  	—  	  	0.000000	  	—  	  	—  	  	—  	  	—  	  	—  	  	—  
	 	  	 	  	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	 Totals
	  	 	  	 	  	 	  	290,418,000.00	  	 	  	10,848,946.28	  	356,891.45	  	11,205,837.74	  	—  	  	279,569,053.72	  	—  
	 	  	 	  	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

  

	Principal Distribution Detail
											
	 Class

	  	Cusip

	  	Original
Certificate
Balance

	  	Beginning
Certificate
Balance

	  	Scheduled
Principal
Distribution

	  	Accretion
Principal

	  	Unscheduled
Principal
Adjustments

	  	 Net
 Principal
Distribution

	  	Current
Realized
Losses

	  	Ending
Certificate
Balance

	  	Ending
Certificate Factor

	 A
	  	395385AP2	  	290,418,000.00	  	290,418,000.00	  	10,848,946.28	  	    —  	  	    —  	  	10,848,946.28	  	    —  	  	279,569,053.72	  	0.96264368502
	 R
	  	 	  	—  	  	—  	  	—  	  	—  	  	—  	  	—  	  	—  	  	—  	  	0.00000000000
	 	  	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	 Totals
	  	 	  	290,418,000.00	  	290,418,000.00	  	10,848,946.28	  	—  	  	—  	  	10,848,946.28	  	—  	  	279,569,053.72	  	 
	 	  	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

  

	Interest Distribution Detail
										
	 Class

	  	Beginning
Certificate
Balance

	  	Pass
Through
Rate (%)

	  	Accrued
Optimal
Interest

	  	Cumulative
Unpaid
Interest

	  	Deferred
Interest

	  	Total
Interest
Due

	  	Net
Prepayment
Int
Shortfall

	  	Unscheduled
Interest
Adjustment

	  	Interest
Paid

	 A
	  	290,418,000.00	  	1.580000	  	356,891.45	  	    —  	  	    —  	  	356,891.45	  	    —  	  	    —  	  	356,891.45
	 R
	  	—  	  	0.000000	  	—  	  	—  	  	—  	  	—  	  	—  	  	—  	  	—  
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	 Totals
	  	290,418,000.00	  	 	  	356,891.45	  	—  	  	—  	  	356,891.45	  	—  	  	—  	  	356,891.45
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	Current Payment Information
	 Factors per $1,000

	 Class

	  	Cusip

	  	Original
Certificate
Balance

	  	Beginning Cert.
Notional Balance

	  	Principal
Distribution

	  	Interest
Distribution

	  	Ending Cert.
Notional Balance

	  	Pass
Through
Rate (%)

	 A
	  	395385AP2	  	290,418,000.00	  	1000.000000000	  	37.356314977	  	1.228888889	  	962.643685023	  	1.580000
	 R
	  	 	  	—  	  	0.000000000	  	0.000000000	  	0.000000000	  	0.000000000	  	0.000000
	 	  	 	  	
	  	
	  	
	  	
	  	
	  	

	 Totals
	  	 	  	290,418,000.00	  	1000.000000000	  	37.356314967	  	1.228888877	  	962.643685033	  	 
	 	  	 	  	
	  	
	  	
	  	
	  	
	  	

	 Pool Level Data
	 	 	 	 
	 Distribution Date
	 	 	 	6/16/2003
	 Cut-off Date
	 	 	 	5/1/2003
	 Determination Date
	 	 	 	6/1/2003
	 Accrual Period 30/360
	 	Begin	 	5/1/2003
	 	 	End	 	6/1/2003
	 Number of Days in 30/360 Accrual Period
	 	 	 	30
	 Accrual Period Actual Days
	 	Begin	 	5/19/2003
	 	 	End	 	6/16/2003
	 Number of Days in Actual Accrual Period
	 	 	 	28

  
 Collateral
Information 
  

	 Group 1
	  	 	 
	 Cut-Off Date Balance
	  	287,542,470.48	 
	 Beginning Aggregate Pool Stated Principal Balance
	  	287,542,470.48	 
	 Ending Aggregate Pool Stated Principal Balance
	  	278,028,313.69	 
	 Beginning Aggregate Certificate Stated Principal Balance
	  	290,418,000.00	 
	 Ending Aggregate Certificate Stated Principal Balance
	  	279,569,053.72	 
	 Beginning Aggregate Loan Count
	  	7265	 
	 Loans Paid Off or Otherwise Removed Pursuant to Pooling and Servicing Agreement
	  	592	 
	 Ending Aggregate Loan Count
	  	6673	 
	 Beginning Weighted Average Loan Rate (WAC)
	  	6.958413	%
	 Ending Weighted Average Loan Rate (WAC)
	  	6.928511	%
	 Beginning Net Weighted Average Loan Rate
	  	6.451465	%
	 Ending Net Weighted Average Loan Rate
	  	6.421547	%
	 Weighted Average Maturity (WAM) (Months)
	  	209	 
	 Aggregate Pool Prepayment
	  	6,481,644.29	 
	 Pool Prepayment Rate
	  	24.1599 CPR	 

  

	 Certificate Account
	  	 
	 Beginning Balance
	  	—  
	 Deposit
	  	 
	 Payments of Interest and Principal
	  	11,364,384.19
	 Liquidation Proceeds
	  	—  
	 All Other Proceeds
	  	—  
	 Other Amounts
	  	—  
	 Total Deposits
	  	11,364,384.19
	 Withdrawals
	  	 
	 Reimbursement of Servicer Advances
	  	—  
	 Payment of Master Servicer Fees
	  	119,809.36
	 Payment of Sub Servicer Fees
	  	—  
	 Payment of Other Fees
	  	—  
	 Payment of Insurance Premium(s)
	  	—  
	 Payment of Personal Mortgage Insurance
	  	—  
	 Other Permitted Withdrawal per the Pooling and Service Agreement
	  	38,737.09
	 Payment of Principal and Interest
	  	11,205,837.74
	 Total Withdrawals
	  	11,364,384.19
	 Ending Balance
	  	—  

  

 Delinquency Information 
  
 Group 1 
  

	 Delinquency

	  	30-59 Days

	 	 	60-89 Days

	 	 	90-179 Days

	 	 	180-269 Days

	 	 	270+ Days

	 	 	Totals

	 
	 Scheduled Principal Balance
	  	2,521,664.48	 	 	921,766.55	 	 	12,259.68	 	 	—  	 	 	—  	 	 	3,455,690.71	 
	 Percentage of Total Pool Balance
	  	0.906981	%	 	0.331537	%	 	0.004410	%	 	0.000000	%	 	0.000000	%	 	1.242928	%
	 Number of Loans
	  	69	 	 	16	 	 	1	 	 	0	 	 	0	 	 	86	 
	 Percentage of Total Loans
	  	1.034018	%	 	0.239772	%	 	0.014986	%	 	0.000000	%	 	0.000000	%	 	1.288776	%
	 Foreclosure
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Scheduled Principal Balance
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—  	 
	 Percentage of Total Pool Balance
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.000000	%
	 Number of Loans
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 Percentage of Total Loans
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.000000	%
	 Bankruptcy
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Scheduled Principal Balance
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12,259.68	 
	 Percentage of Total Pool Balance
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.004410	%
	 Number of Loans
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 
	 Percentage of Total Loans
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.014986	%
	 REO
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Scheduled Principal Balance
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—  	 
	 Percentage of Total Pool Balance
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.000000	%
	 Number of Loans
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 Percentage of Total Loans
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.000000	%
	 Book Value of all REO Loans
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—  	 
	 Percentage of Total Pool Balance
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.000000	%
	 Current Realized Losses
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—  	 
	 Additional Gains (Recoveries)/Losses
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—  	 
	 Total Realized Losses
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—  	 

  

 Reserve Fund Information 
  

	 Demand Note Reserve Account
	  	 
	 Beginning Balance
	  	 
	 Deposits
	  	2,875,529.52
	 Accrued Interest
	  	—  
	 Withdrawals
	  	—  
	 Ending Balance
	  	—  

  
 OVERCOLLATERALIZATION REPORTING 
  

	 Ending Overcollateralization Amount
	  	(1,540,740.03	)
	 Specified Overcollateralization Amount
	  	7,188,561.76	 

  
 ADDITIONAL REPORTING
ITEMS 
  

	 Cumulative losses as percentage of originial Pool Balance
	  	0.00000000	%
	 Cumulative losses as percentage of current Pool Balance
	  	0.00000000	%
	 12-month rolling average of cumulative losses as percentage of original Pool Balance
	  	0.00000000	%
	 3-month rolling average of Mortgage Loans 60+ days delinquent
	  	0.00111982	 
	 Relief Act Shortfall
	  	—  	 
	 Gross Prepayment Interest Shortfall
	  	—  	 
	 Net Prepayment Interest Shortfall
	  	—  	 
	 Total outstanding principal balance of 3 largest Mortgage Loans
	  	1,381,676.26	 
	 Draw Amount
	  	5,579,957.88

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]