Document:

Exhibit 10.2

    Exhibit
      10.2

     

    SECURITY
      AGREEMENT

     

    (Multiple
      Use)

     

    1.  THE
      SECURITY.
      The
      undersigned, WPCS International Incorporated, a Delaware corporation (“WPCS”),
      Clayborn Contracting Group, Inc., a California corporation (“Clayborn”), Heinz
      Corporation, a Missouri corporation (“Heinz”), New England Communications
      Systems, Inc., a Connecticut corporation (“New England”), Quality Communications
& Alarm Company, Inc., a New Jersey corporation (“Quality”), Southeastern
      Communication Service, Inc., a Florida corporation (“Southeastern”) and Walker
      Comm, Inc., a California corporation (“Walker”) (WPCS, Clayborn, Heinz, New
      England, Quality, Southeastern and Walker, collectively, the “Pledgor”) hereby
      assigns and grants to Bank of America, N.A. (the “Bank”) a security interest in
      the following described property now owned or hereafter acquired by the Pledgor
      (“Collateral”):

     

    (a)  All
      accounts, contract rights, chattel paper, instruments, deposit accounts, letter
      of credit rights, payment intangibles and general intangibles, including all
      amounts due to the Pledgor from a factor; rights to payment of money from the
      Bank under any Swap Contract (as defined in Paragraph 2 below); and all returned
      or repossessed goods which, on sale or lease, resulted in an account or chattel
      paper.

     

    (b)  All
      inventory, including all materials, work in process and finished
      goods.

     

    (c)  All
      machinery, furniture, fixtures and other equipment of every type now owned
      or
      hereafter acquired by the Pledgor, (including, but not limited to, the equipment
      described in the attached Equipment Description, if any).

     

    (d)  All
      of
      the Pledgor’s deposit accounts with the Bank. The Collateral shall include any
      renewals or rollovers of the deposit accounts, any successor accounts, and
      any
      general intangibles and choses in action arising therefrom or related
      thereto.

     

    (e)  All
      instruments, notes, chattel paper, documents, certificates of deposit,
      securities and investment property of every type. The Collateral shall include
      all liens, security agreements, leases and other contracts securing or otherwise
      relating to the foregoing.

     

    (f)  All
      general intangibles, including, but not limited to, (i)
      all
      patents, and all unpatented or unpatentable inventions; (ii)
      all
      trademarks, service marks, and trade names; (iii)
      all
      copyrights and literary rights; (iv)
      all
      computer software programs; (v)
      all mask
      works of semiconductor chip products; (vi)
      all
      trade secrets, proprietary information, customer lists, manufacturing,
      engineering and production plans, drawings, specifications, processes and
      systems. The Collateral shall include all good will connected with or symbolized
      by any of such general intangibles; all contract rights, documents,
      applications, licenses, materials and other matters related to such general
      intangibles; all tangible property embodying or incorporating any such general
      intangibles; and all chattel paper and instruments relating to such general
      intangibles.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (g)  All
      negotiable and nonnegotiable documents of title covering any
      Collateral.

     

    (h)  All
      accessions, attachments and other additions to the Collateral, and all tools,
      parts and equipment used in connection with the Collateral.

     

    (i)  All
      substitutes or replacements for any Collateral, all cash or non-cash proceeds,
      product, rents and profits of any Collateral, all income, benefits and property
      receivable on account of the Collateral, all rights under warranties and
      insurance contracts, letters of credit, guaranties or other supporting
      obligations covering the Collateral, and any causes of action relating to the
      Collateral.

     

    (j)  All
      books
      and records pertaining to any Collateral, including but not limited to any
      computer-readable memory and any computer hardware or software necessary to
      process such memory (“Books and Records”).

     

    2.  THE
      INDEBTEDNESS.
      The
      Collateral secures and will secure all Indebtedness of the Pledgor to the Bank.
      Each party obligated under any Indebtedness is referred to in this Agreement
      as
      a “Debtor.” “Indebtedness” means all debts, obligations or liabilities now or
      hereafter existing, absolute or contingent of the Debtor or any one or more
      of
      them to the Bank, whether voluntary or involuntary, whether due or not due,
      or
      whether incurred directly or indirectly or acquired by the Bank by assignment
      or
      otherwise. Indebtedness shall include, without limitation, all obligations
      of
      the Debtor arising under any Swap Contract. “Swap Contract” means any interest
      rate, credit, commodity or equity swap, cap, floor, collar, forward foreign
      exchange transaction, currency swap, cross currency rate swap, currency option,
      securities puts, calls, collars, options or forwards or any combination of,
      or
      option with respect to, these or similar transactions now or hereafter entered
      into between the Debtor and the Bank.

     

    3.  PLEDGOR’S
      COVENANTS.
      The
      Pledgor represents, covenants and warrants that unless compliance is waived
      by
      the Bank in writing:

     

    (a)  The
      Pledgor will properly preserve the Collateral; defend the Collateral against
      any
      adverse claims and demands; and keep accurate Books and Records.

     

    (b)  The
      Pledgor resides (if the Pledgor is an individual), or the Pledgor’s chief
      executive office (if the Pledgor is not an individual) is located, in the state
      specified on the signature page hereof. In addition, the Pledgor (if not an
      individual or other unregistered entity), is incorporated in or organized under
      the laws of the state specified on such signature page. The Pledgor shall give
      the Bank at least thirty (30) days notice before changing its residence or
      its
      chief executive office or state of incorporation or organization. The Pledgor
      will notify the Bank in writing prior to any change in the location of any
      Collateral, including the Books and Records.

     

    (c)  The
      Pledgor will notify the Bank in writing prior to any change in the Pledgor’s
      name, identity or business structure.

     

    (d)  Unless
      otherwise agreed, the Pledgor has not granted and will not grant any security
      interest in any of the Collateral except to the Bank, and will keep the
      Collateral free of all liens, claims, security interests and encumbrances of
      any
      kind or nature except the security interest of the Bank.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (e)  The
      Pledgor will promptly notify the Bank in writing of any event which affects
      the
      value of the Collateral, the ability of the Pledgor or the Bank to dispose
      of
      the Collateral, or the rights and remedies of the Bank in relation thereto,
      including, but not limited to, the levy of any legal process against any
      Collateral and the adoption of any marketing order, arrangement or procedure
      affecting the Collateral, whether governmental or otherwise.

     

    (f)  The
      Pledgor shall pay all costs necessary to preserve, defend, enforce and collect
      the Collateral, including but not limited to taxes, assessments, insurance
      premiums, repairs, rent, storage costs and expenses of sales, and any costs
      to
      perfect the Bank’s security interest (collectively, the “Collateral Costs”).
      Without waiving the Pledgor’s default for failure to make any such payment, the
      Bank at its option may pay any such Collateral Costs, and discharge encumbrances
      on the Collateral, and such Collateral Costs payments shall be a part of the
      Indebtedness and bear interest at the rate set out in the Indebtedness. The
      Pledgor agrees to reimburse the Bank on demand for any Collateral Costs so
      incurred.

     

    (g)  Until
      the
      Bank exercises its rights to make collection, the Pledgor will diligently
      collect all Collateral.

     

    (h)  If
      any
      Collateral is or becomes the subject of any registration certificate,
      certificate of deposit or negotiable document of title, including any warehouse
      receipt or bill of lading, the Pledgor shall immediately deliver such document
      to the Bank, together with any necessary endorsements.

     

    (i)  The
      Pledgor will not sell, lease, agree to sell or lease, or otherwise dispose
      of
      any Collateral except with the prior written consent of the Bank; provided,
      however, that the Pledgor may sell inventory in the ordinary course of
      business.

     

    (j)  The
      Pledgor will maintain and keep in force insurance covering the Collateral
      against fire and extended coverages, to the extent that any Collateral is of
      a
      type which can be so insured. Such insurance shall require losses to be paid
      on
      a replacement cost basis, be issued by insurance companies acceptable to the
      Bank and include a loss payable endorsement in favor of the Bank in a form
      acceptable to the Bank. Upon the request of the Bank, the Pledgor will deliver
      to the bank a copy of each insurance policy, or, if permitted by the Bank,
      a
      certificate of insurance listing all insurance in force.

     

    (k)  The
      Pledgor will not attach any Collateral to any real property or fixture in a
      manner which might cause such Collateral to become a part thereof unless the
      Pledgor first obtains the written consent of any owner, holder of any lien
      on
      the real property or fixture, or other person having an interest in such
      property to the removal by the Bank of the Collateral from such real property
      or
      fixture. Such written consent shall be in form and substance acceptable to
      the
      Bank and shall provide that the Bank has no liability to such owner, holder
      of
      any lien, or any other person.

     

    (l)  Exhibit
      “A” to this Agreement is a complete list of all patents, trademark and service
      mark registrations, copyright registrations, mask work registrations, and all
      applications therefor, in which the Pledgor has any right, title, or interest,
      throughout the world. To the extent required by the Bank in its discretion,
      the
      Pledgor will promptly notify the Bank of any acquisition (by adoption and use,
      purchase, license or otherwise) of any patent, trademark or service mark
      registration, copyright registration, mask work registration, and applications
      therefor, and unregistered trademarks and service marks and copyrights,
      throughout the world, which are granted or filed or acquired after the date
      hereof or which are not listed on the Exhibit. The Pledgor authorizes the Bank,
      without notice to the Pledgor, to modify this Agreement by amending the Exhibit
      to include any such Collateral.

     

    
      
        
        

      

      
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    (m)  The
      Pledgor will, at its expense, diligently prosecute all patent, trademark or
      service mark or copyright applications pending on or after the date hereof,
      will
      maintain in effect all issued patents and will renew all trademark and service
      mark registrations, including payment of any and all maintenance and renewal
      fees relating thereto, except for such patents, service marks and trademarks
      that are being sold, donated or abandoned by the Pledgor pursuant to the terms
      of its intellectual property management program. The Pledgor also will promptly
      make application on any patentable but unpatented inventions, registerable
      but
      unregistered trademarks and service marks, and copyrightable but uncopyrighted
      works. The Pledgor will at its expense protect and defend all rights in the
      Collateral against any material claims and demands of all persons other than
      the
      Bank and will, at its expense, enforce all rights in the Collateral against
      any
      and all infringers of the Collateral where such infringement would materially
      impair the value or use of the Collateral to the Pledgor or the Bank. The
      Pledgor will not license or transfer any of the Collateral, except for such
      licenses as are customary in the ordinary course of the Pledgor’s business, or
      except with the Bank’s prior written consent.

     

    4.  ADDITIONAL
      OPTIONAL REQUIREMENTS.
      The
      Pledgor agrees that the Bank may at its option at any time, whether or not
      the
      Pledgor is in default:

     

    (a)  Require
      the Pledgor to deliver to the Bank (i)
      copies
      of or extracts from the Books and Records, and (ii)
      information on any contracts or other matters affecting the
      Collateral.

     

    (b)  Examine
      the Collateral, including the Books and Records, and make copies of or extracts
      from the Books and Records, and for such purposes enter at any reasonable time
      upon the property where any Collateral or any Books and Records are
      located.

     

    (c)  Require
      the Pledgor to deliver to the Bank any instruments, chattel paper or letters
      of
      credit which are part of the Collateral, and to assign to the Bank the proceeds
      of any such letters of credit.

     

    (d)  Notify
      any account debtors, any buyers of the Collateral, or any other persons of
      the
      Bank’s interest in the Collateral.

     

    5.  DEFAULTS.
      Any one
      or more of the following shall be a default hereunder:

     

    (a)  Any
      Indebtedness is not paid when due, or any default occurs under any agreement
      relating to the Indebtedness, after giving effect to any applicable grace or
      cure periods.

     

    
      
        
        

      

      
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    (b)  The
      Pledgor breaches any term, provision, warranty or representation under this
      Agreement, or under any other obligation of the Pledgor to the Bank, and such
      breach remains uncured after any applicable cure period.

     

    (c)  The
      Bank
      fails to have an enforceable first lien (except for any prior liens to which
      the
      Bank has consented in writing) on or security interest in the
      Collateral.

     

    (d)  Any
      custodian, receiver or trustee is appointed to take possession, custody or
      control of all or a substantial portion of the property of the Pledgor or of
      any
      guarantor or other party obligated under any Indebtedness.

     

    (e)  The
      Pledgor or any guarantor or other party obligated under any Indebtedness becomes
      insolvent, or is generally not paying or admits in writing its inability to
      pay
      its debts as they become due, fails in business, makes a general assignment
      for
      the benefit of creditors, dies, or commences any case, proceeding or other
      action under any bankruptcy or other law for the relief of, or relating to,
      debtors.

     

    (f)  Any
      case,
      proceeding or other action is commenced against the Pledgor or any guarantor
      or
      other party obligated under any Indebtedness under any bankruptcy or other
      law
      for the relief of, or relating to, debtors.

     

    (g)  Any
      involuntary lien of any kind or character attaches to any Collateral, except
      for
      liens for taxes not yet due.

     

    (h)  The
      Pledgor
      has given the Bank any false or misleading information or
      representations.

     

    6.  BANK’S
      REMEDIES AFTER DEFAULT.
      In the
      event of any default, the Bank may do any one or more of the
      following:

     

    (a)  Declare
      any Indebtedness immediately due and payable, without notice or
      demand.

     

    (b)  Enforce
      the security interest given hereunder pursuant to the Uniform Commercial Code
      and any other applicable law.

     

    (c)  Enforce
      the security interest of the Bank in any deposit account of the Pledgor
      maintained with the Bank by applying such account to the
      Indebtedness.

     

    (d)  Require
      the Pledgor to obtain the Bank’s prior written consent to any sale, lease,
      agreement to sell or lease, or other disposition of any Collateral consisting
      of
      inventory.

     

    (e)  Require
      the Pledgor to segregate all collections and proceeds of the Collateral so
      that
      they are capable of identification and deliver daily such collections and
      proceeds to the Bank in kind.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (f)  Require
      the Pledgor to direct all account debtors to forward all payments and proceeds
      of the Collateral to a post office box under the Bank’s exclusive
      control.

     

    (g)  Require
      the Pledgor to assemble the Collateral, including the Books and Records, and
      make them available to the Bank at a place designated by the Bank.

     

    (h)  Enter
      upon the property where any Collateral, including any Books and Records, are
      located and take possession of such Collateral and such Books and Records,
      and
      use such property (including any buildings and facilities) and any of the
      Pledgor’s equipment, if the Bank deems such use necessary or advisable in order
      to take possession of, hold, preserve, process, assemble, prepare for sale
      or
      lease, market for sale or lease, sell or lease, or otherwise dispose of, any
      Collateral.

     

    (i)  Demand
      and collect any payments on and proceeds of the Collateral. In connection
      therewith the Pledgor irrevocably authorizes the Bank to endorse or sign the
      Pledgor’s name on all checks, drafts, collections, receipts and other documents,
      and to take possession of and open the mail addressed to the Pledgor and remove
      therefrom any payments and proceeds of the Collateral.

     

    (j)  Grant
      extensions and compromise or settle claims with respect to the Collateral for
      less than face value, all without prior notice to the Pledgor.

     

    (k)  Use
      or
      transfer any of the Pledgor’s rights and interests in any Intellectual Property
      now owned or hereafter acquired by the Pledgor, if the Bank deems such use
      or
      transfer necessary or advisable in order to take possession of, hold, preserve,
      process, assemble, prepare for sale or lease, market for sale or lease, sell
      or
      lease, or otherwise dispose of, any Collateral. The Pledgor agrees that any
      such
      use or transfer shall be without any additional consideration to the Pledgor.
      As
      used in this paragraph, “Intellectual Property” includes, but is not limited to,
      all trade secrets, computer software, service marks, trademarks, trade names,
      trade styles, copyrights, patents, applications for any of the foregoing,
      customer lists, working drawings, instructional manuals, and rights in processes
      for technical manufacturing, packaging and labeling, in which the Pledgor has
      any right or interest, whether by ownership, license, contract or
      otherwise.

     

    (l)  Have
      a
      receiver appointed by any court of competent jurisdiction to take possession
      of
      the Collateral. The Pledgor hereby consents to the appointment of such a
      receiver and agrees not to oppose any such appointment.

     

    (m)  Take
      such
      measures as the Bank may deem necessary or advisable to take possession of,
      hold, preserve, process, assemble, insure, prepare for sale or lease, market
      for
      sale or lease, sell or lease, or otherwise dispose of, any Collateral, and
      the
      Pledgor hereby irrevocably constitutes and appoints the Bank as the Pledgor’s
      attorney-in-fact to perform all acts and execute all documents in connection
      therewith.

     

    (n)  Without
      notice or demand to the Pledgor, set off and apply against any and all of the
      Indebtedness any and all deposits (general or special, time or demand,
      provisional or final) and any other indebtedness, at any time held or owing
      by
      the Bank or any of the Bank’s agents or affiliates to or for the credit of the
      account of the Pledgor or any guarantor or endorser of the Pledgor’s
      Indebtedness.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (o)  Exercise
      any other remedies available to the Bank at law or in equity.

     

    7.  WAIVER
      OF JURY TRIAL.
      THE PARTIES TO THIS AGREEMENT WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING
      TO
      WHICH THEY MAY BE PARTIES, ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY
      PERTAINING TO, THIS AGREEMENT. IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER
      CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO
      SUCH
      ACTION OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES
      TO
      THIS AGREEMENT. THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY
      MADE.

     

    8.  MISCELLANEOUS.

     

    (a)  Any
      waiver, express or implied, of any provision hereunder and any delay or failure
      by the Bank to enforce any provision shall not preclude the Bank from enforcing
      any such provision thereafter.

     

    (b)  The
      Pledgor shall, at the request of the Bank, execute such other agreements,
      documents, instruments, or financing statements in connection with this
      Agreement as the Bank may reasonably deem necessary.

     

    (c)  All
      notes, security agreements, subordination agreements and other documents
      executed by the Pledgor or furnished to the Bank in connection with this
      Agreement must be in form and substance satisfactory to the Bank.

     

    (d)  This
      Agreement
      shall be
      governed by and construed according to the laws of the State of New York, to
      the
      jurisdiction of which the parties hereto submit.

     

    (e)  All
      rights and remedies herein provided are cumulative and not exclusive of any
      rights or remedies otherwise provided by law. Any single or partial exercise
      of
      any right or remedy shall not preclude the further exercise thereof or the
      exercise of any other right or remedy.

     

    (f)  All
      terms
      not defined herein are used as set forth in the Uniform Commercial
      Code.

     

    (g)  In
      the
      event of any action by the Bank to enforce this Agreement or to protect the
      security interest of the Bank in the Collateral, or to take possession of,
      hold,
      preserve, process, assemble, insure, prepare for sale or lease, market for
      sale
      or lease, sell or lease, or otherwise dispose of, any Collateral, the Pledgor
      agrees to pay immediately the costs and expenses thereof, together with
      reasonable attorney’s fees and allocated costs for in-house legal services to
      the extent permitted by law.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (h)  In
      the
      event the Bank seeks to take possession of any or all of the Collateral by
      judicial process, the Pledgor hereby irrevocably waives any bonds and any surety
      or security relating thereto that may be required by applicable law as an
      incident to such possession, and waives any demand for possession prior to
      the
      commencement of any such suit or action.

     

    (i)  This
      Agreement shall constitute a continuing agreement, applying to all future as
      well as existing transactions, whether or not of the character contemplated
      at
      the date of this Agreement, and if all transactions between the Bank and the
      Pledgor shall be closed at any time, shall be equally applicable to any new
      transactions thereafter.

     

    (j)  The
      Bank’s rights hereunder shall inure to the benefit of its successors and
      assigns. In the event of any assignment or transfer by the Bank of any of the
      Indebtedness or the Collateral, the Bank thereafter shall be fully discharged
      from any responsibility with respect to the Collateral so assigned or
      transferred, but the Bank shall retain all rights and powers hereby given with
      respect to any of the Indebtedness or the Collateral not so assigned or
      transferred. All representations, warranties and agreements of the Pledgor
      if
      more than one are joint and several and all shall be binding upon the personal
      representatives, heirs, successors and assigns of the Pledgor.

     

    9.  FINAL
      AGREEMENT.
      BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THIS
      DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO
      THE
      SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER,
      TERM
      SHEET, OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT
      MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET, OR OTHER WRITTEN
      OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE
      ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT
      MAY
      NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
      ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

     

    
      
         

        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      The
        parties executed this Agreement as of April 10, 2007, intending to be legally
        bound.

       

      
        	 	
                BANK
                  OF AMERICA, N.A.

                 

              
	 	
                By:/s/
                  CHARLES W. GREENBERG

                
                  

                

                Charles
                  W. Greenberg 

              
	 	
                Title:
                  Senior Vice President

                 

              
	 	
                Address
                  for Notices:

                CT2-515-02-12

                70
                  Batterson Park Road

                Farmington,
                  CT 06032

                Farmington
                  - Attn: Notice Desk 

                Facsimile:
                  (860) 409-5486

                 

              
	
                Attested
                  to:

              	
                WPCS
                  INTERNATIONAL INCORPORATED, a Delaware corporation

                 

              
	
                /s/
                  CHARLES W. GREENBERG

                
                  
 

              	
                By:

              	
                /s/
                  JOSEPH A. HEATER

                
                  

                
Title:    Chief
                Financial Officer	
                [(Seal)]

              
	 	
                 

                 

              
	
                Attested
                  to:

              	
                CLAYBORN
                  CONTRACTING GROUP, INC., a California corporation 

                 

              
	
                /s/
                  CHARLES W. GREENBERG

                
                  

                

              	
                By:

              	
                /s/
                  JOSEPH A. HEATER

                

                Title:   
Chief
                  Financial Officer

              	
                [(Seal)]

              
	 	
                 

                 

              
	
                Attested
                  to:

              	
                HEINZ
                  CORPORATION, a Missouri corporation

                 

              
	
                /s/
                  CHARLES W. GREENBERG

                
                  

                

              	
                By:

              	
                /s/
                  JOSEPH A. HEATER

                
                  

                  Title:   
                    Chief
                    Financial Officer

                

              	
                [(Seal)]

              
	 	
                 

              

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      
        	
                Attested
                  to:

                 

              	
                NEW
                  ENGLAND COMMUNICATIONS SYSTEMS, INC., a Connecticut
                  corporation

              
	
                /s/
                  CHARLES W. GREENBERG

                

              	
                By:

              	
                /s/
                  JOSEPH A. HEATER

                
Title:  
Chief
                Financial Officer	
                [(Seal)]

              
	  	
                 

                 

              
	
                Attested
                  to:

              	
                QUALITY
                  COMMUNICATIONS & ALARM COMPANY, INC., a New Jersey
                  corporation

                 

              
	
                /s/
                  CHARLES W. GREENBERG

                
                  

                

              	
                By:

              	
                /s/
                  JOSEPH A. HEATER

                
                  
Title: 
 Chief
                  Financial Officer

              	
                [(Seal)]

              
	 	
                 

                 

              
	
                Attested
                  to:

                 

              	
                SOUTHEASTERN
                  COMMUNICATION SERVICE, INC., a Florida corporation

              
	
                /s/
                  CHARLES W. GREENBERG

                
                  

                

              	
                By:

              	
                /s/
                  JOSEPH A. HEATER

                
                  

                
Title:   Chief
                Financial Officer	
                [(Seal)]

              
	  	
                 

              
	
                Attested
                  to:

                 

              	
                WALKER
                  COMM, INC., a California corporation 

              
	
                /s/
                  CHARLES W. GREENBERG

                
                  

                

              	
                By:

              	
                /s/
                  JOSEPH A. HEATER

                
                  

                

                Title:   Chief
                  Financial Officer

              	
                [(Seal)]

              
	  	
                 

              

      

    

    
      
        
           

        

        
        

      

      
        10

        
          

        

      

      
        
        

        
        

      

    

    WPCS’s
      state of incorporation or organization

    (if
      Pledgor is a corporation, partnership, limited

    liability
      company or other registered entity): Delaware

    Mailing
      Address:

     

    

     

    One
      East
      Uwchlan Avenue

    Suite
      301

    Street
      Address

    Exton,
      PA
      19341

    City
      State Zip

    Clayborn’s
      state of incorporation or organization

    (if
      Pledgor is a corporation, partnership, limited

    liability
      company or other registered entity): California

     

    Mailing
      Address (if different from
      above):

     

    
      
        

      

    

    Street
      Address

     

      
        

      

    

    City
      State Zip

     

    Heinz’s
      state of incorporation or organization

    (if
      Pledgor is a corporation, partnership, limited

    liability
      company or other registered entity): Missouri

     

    Mailing
      Address (if different from
      above):

     

     

      
        

      

    

    Street
      Address

     

    
      
        

      

    

    City
      State Zip

     

    New
      England’s state of incorporation or organization

    (if
      Pledgor is a corporation, partnership, limited

    liability
      company or other registered entity): Connecticut

     

    Mailing
      Address (if different from
      above):

    
    

    
      
        

      

      Street
        Address

       

      
        
          

        

      

      City
        State Zip

       

       

    

    Quality’s
      state of incorporation or organization

    (if
      Pledgor is a corporation, partnership, limited

    liability
      company or other registered entity): New Jersey

     

     

    Mailing
      Address (if different from
      above):

     

    
       

       

        
          

        

      

      Street
        Address

       

      
        
          

        

      

      City
        State Zip

    Southeastern’s
      state of incorporation or organization

    (if
      Pledgor is a corporation, partnership, limited

    liability
      company or other registered entity): Florida

     

    Mailing
      Address (if different from
      above):

    
       

       

        
          

        

      

      Street
        Address

       

      
        
          

        

      

      City
        State Zip

    

     

     

    Walker’s
      state of incorporation or organization

    (if
      Pledgor is a corporation, partnership, limited

    liability
      company or other registered entity): California

     

    Mailing
      Address (if different from
      above):

     

     

     

      
        

      

    

    Street
      Address

     

    
      
        

      

    

    City
      State Zip

    
      
        
        

      

      
        11Exhibit 10.7

    AGREEMENT

    

    THIS
      Agreement (the "Agreement") is made and entered into on February 5, 2007 by
      and
      between HSA Bank®
      a division of Webster Bank, N.A. (“HSA”), and Medefile International, Inc., a
      Nevada corporation (“Medefile” or the “Company”).

    

    W
      I T
      N E S S E T H:

    

    WHEREAS,
      Medefile
      sells memberships to electronically store and provide access to customer medical
      records; and

    

    WHEREAS,
      HSA
      desires to offer Medefile memberships to its clients and employees who are
      referred to Medefile by HSA under the terms of this Agreement (the “HSA
      Members”) by including information regarding Medefile in mailings, newsletters,
      emails and other communications; and

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual premises, covenants and Agreements hereinafter
      set
      forth, the parties hereby agree as follows:

    

    1. Sales
      Arrangement.
      The
      Company hereby authorizes HSA to solicit memberships for Medefile’s services
      (“Memberships”) from time to time during the term of this Agreement. HSA shall
      place a hyperlink from its website to the Company’s website, which will enable
      HSA Members to sign up for Medefile’s service at the discounted rate set forth
      in Schedule A hereto. 

    2. Term.
      This
      Agreement shall remain in force and effect for a term of one (1) year (the
      "Term") commencing on the date hereof, subject to prior termination by mutual
      agreement of the parties hereto or hereinafter provided. Subject to the
      Company’s right to terminate the Agreement prior to the expiration of the Term
      as enumerated in Section 5 herein below, the Term shall automatically renew
      for
      additional one-year terms unless either party delivers written notice to the
      other party of the intent to not renew this Agreement, which notice shall be
      delivered on or prior to ninety (90) days before such renewal date, or is
      terminated under paragraph 4.1 of this Agreement.

    

    3. Price
      of Memberships, Payment Processing and Compensation. 

    

    3.1 Medefile
      agrees to sell Medefile memberships to HSA Members at a discounted rate to
      be
      determined by HSA, as set forth in Schedule A hereto (the “Discounted Rate”).
      The Discounted Rate shall be no
      lower
      than
      $100 and no
      higher
      than
      $199. Medefile will waive its customary activation fee for HSA Members. These
      individuals shall be identified via application forms (paper or electronic)
      which contain information indicating HSA as the source of such
      individuals.

    

    3.2 For
      each
      Medefile membership sold to HSA Members, the Company will retain $100. For
      each
      Medefile membership sold to HSA Members, the Company will pay to HSA the
      difference between $100 and the Discounted Rate (the “Revenue
      Share”).

    

    3.3
       Medefile
      will distribute the Revenue Share as follows:

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (i) For
      memberships that are paid in advance, revenue share will be distributed in
      full
      on the appropriate schedule. 

    

    (ii) For
      memberships that are purchased through financing and for monthly paying
      accounts, Medefile will distribute the Revenue Share on a pro rata basis as
      the
      fees are collected.

    

    Medefile
      will reconcile all sales for the preceding month on the first day of the next
      month. Medefile will provide HSA Bank with a reconciliation report five (5)
      days
      later. Any revenue share owed to HSA Bank will be paid on the first of the
      following month (e.g. for month ended September 30, Company reconciliation
      will
      occur on October 1, a report will be delivered to HSA Bank by October 5 and
      payment shall be made on November 1). 

    

    4. Termination.

    

    4.1 Termination
      by Either Party Without Cause.
      This
      Agreement may be terminated by either party at any time upon thirty (30) days
      written notice to the other party.

    

    4.2 Termination
      by Either Party for Cause.
      This
      Agreement may be terminated by either party for Cause as described herein.
      For
      purposes of this Agreement, "cause" shall mean: 

    

    
      	 	
              (i)

            	
              breach
                of any of the provisions of this Agreement; the breaching party shall
                be
                give 30 days to cure such breach after notice
                thereof.

            

    

    

    
      	 	
              (ii)

            	
              failure
                by a party to comply in any material respect with the terms of any
                provision contained in this Agreement, if any, or any written policies
                or
                directives of the Company’s senior
                management.

            

    

    

    
      	 	
              (iii)

            	
              a
                party is convicted of, pleads guilty to, confesses to any felony
                or any
                act of fraud, misappropriation or
                embezzlement

            

    

    

    
      	 	
              (iv)

            	
              a
                party engages in a fraudulent act or dishonest act to the damage
                or
                prejudice of the other party and its affiliates or engages in conduct
                or
                activities damaging to the property, business or reputation of the
                other
                party and its affiliates, all as determined by the non-breaching
                party in
                good faith.

            

    

    

    
      	
            	(v)	
              a
                party’s willful malfeasance or gross negligence.
                

            

    

    

    
      	 	
              (vi)

            	
              Any
                material misrepresentation or conceal-ment of a material fact made
                by
                either party in connection with this Agreement.

            

    

    

    
      	
            	(vii)	
              Breach
                of any covenant made by either party hereunder.

            

    

    

    
      	
            	(viii)	
              The
                failure by either party substantially to perform its duties or obligations
                hereunder, within 30 days after notice of such
                failure.

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    
      	(ix)       
               	
              a
                party engaging in misconduct that is materially injurious to the
                other.

            

    

    

    
      	(x)          
              	
              a
                party engaging in any act that in any way has a direct, substantial,
                and
                adverse effect on the other party’s
                reputation.

            

    

    

    
      	(xi)       
               	
              a
                party’s conviction, or entry of a plea of guilty or nolo contendere,
                in
                a court of competent jurisdiction, for a crime constituting a
                felony.

            

    

    

    
      	(xii)     
                	
              A
                party (i) voluntarily files for bankruptcy or makes an assignment
                for the
                benefit of its creditors, admits in writing its inability to pay
                its debts
                generally as they become due or consents to the appointment of a
                receiver,
                trustee, liquidator or conservator for it or any part of its property;
                (ii) has a receiver, liquidator or trustee appointed by court order
                and
                such order remains in effect for more than ninety (90) calendar days,
                or a
                receivership, insolvency or bankruptcy proceeding is commenced or
                a
                petition is filed against such party under any applicable liquidation,
                conservatorship, bankruptcy, moratorium, insolvency, reorganization
                or
                similar law for the relief of debtors; (iii) commences dissolution,
                liquidation or otherwise winding up its business, (iv) is named as
                a
                defendant in any involuntarily bankruptcy or insolvency proceeding
                by any
                creditor.

            

    

    

    4.3 Effect
      of Termination. 

    

    
      	(i)   
                	
              For
                a period of twenty four (24) months after the date of any termination
                notice delivered by the Company pursuant to Section 4.1 herein, HSA
                shall
                remain entitled to compensation for fees generated and collected
                from
                memberships sold to HSA Members by Medefile prior to termination
                of the
                Agreement.

            

    

    

    
      	(ii)    
               	
              Upon
                termination of this Agreement by HSA pursuant to Section 4.1 herein,
                the
                parties expressly acknowledge and agree that the Company shall have
                no
                further obligation to pay HSA for any compensation accrued prior
                to or
                subsequent to termination of the Agreement. Further, the parties
                expressly
                acknowledge and agree that the Company shall have no further obligation
                to
                pay HSA for any renewals for any memberships sold to HSA Members
                during
                the Term of the Agreement.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	(iii)    
               	
              Upon
                termination of this Agreement by the Company pursuant to Section
                4.2
                herein, the parties expressly acknowledge and agree that the Company
                shall
                have no further obligation to pay HSA for any compensation accrued
                prior
                to or subsequent to termination of the Agreement. the parties expressly
                acknowledge and agree that the Company shall have no further obligation
                to
                pay HSA for any renewals for any memberships sold to HSA Members
                during
                the Term of the Agreement.

            

    

    

    
      	(iv)   
               	
              Upon
                termination of this Agreement by HSA pursuant to Section 4.2 herein,
                the
                parties expressly acknowledge and agree that, for a period of twelve
                (12)
                months after the date of any termination notice delivered by HSA
                pursuant
                to Section 4.2 herein, HSA shall remain entitled to compensation
                for fees
                generated and collected from memberships sold to HSA Members by Medefile
                prior to termination of the
                Agreement.

            

    

    

    5.  General
      Provisions.

    

    5.1 Notices.
      All
      notices required to be given under the terms of this Agreement shall be in
      writing and shall be deemed to have been duly given only if delivered to the
      addressee in person, mailed by certified mail, return receipt requested, or
      via
      facsimile with proof of receipt retained by sender, to the address as included
      in the signature page to this Agreement or to any such other address as the
      party to receive the notice shall advise by due notice given in accordance
      with
      this paragraph. Any party hereto may change its or his address for the purpose
      of receiving notices, demands and other communications as herein provided,
      by a
      written notice given in the manner aforesaid to the other party
      hereto.

    

    5.2 Benefit
      of Agreement and Assignment.
      This
      Agreement inures to the benefit of and is binding upon the parties hereto and
      their respective executors, administrators, successors and assigns; provided,
      however, that neither party may assign any of its rights or duties hereunder
      except upon the prior written consent by the authorized representatives of
      the
      other party.

    

    5.3 Applicable
      Law. This
      Agreement is made in and is to be governed by and construed under the laws
      of
      the State of New York.

    

    5.4 Captions.
      The
      captions appearing at the commencement of the sections hereof are descriptive
      only and for convenience of reference only and are not intended to be part
      of or
      to affect the meaning or interpretation of this Agreement.

    

    5.5 Severability.
      In the
      event that any one or more of the provisions contained in this Agreement or
      in
      any other instrument referred to herein, shall, for any reason, be held to
      be
      invalid, illegal or unenforceable in any respect, then to the maximum extent
      permitted by law, such invalidity, illegality or unenforceability shall not
      affect any other provision of this Agreement or any other such
      instrument.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    5.6 Entire
      Agreement.
      This
      Agreement contains the entire Agreement of the parties, and supersedes any
      and
      all other Agreements, either oral or in writing, between the parties hereto
      with
      respect to the subject matter hereof. Each party to this Agreement acknowledges
      that no representations, inducements, promises, or Agreements, oral or
      otherwise, have been made by either party, or anyone acting on behalf of either
      party, which are not embodied herein, and that no other Agreement, statement
      or
      promise not contained in this Agreement shall be valid or binding.

    

    5.7 Amendments.
      This
      Agreement may be modified or amended only by an Agreement in writing signed
      by
      the Company and HSA.

    

    5.8 Waiver.
      No
      waiver of any provision hereof shall be valid unless made in writing and signed
      by the party making the waiver. No waiver of any provision of this Agreement
      shall constitute a waiver of any other provision, whether or not similar, nor
      shall any waiver constitute a continuing waiver.

    

    5.9
       Representations
      and Warranties.
      Each
      party hereto represents and warrants that it has the power and authority to
      execute and deliver this Agreement and to perform its or his obligations
      hereunder.

    

    5.11
       Arbitration.
      Any
      dispute or controversy arising under or in connection with this Agreement,
      other
      than matters pertaining to injunctive relief, including, without limitation,
      temporary restraining orders, preliminary injunctions and permanent injunctions,
      shall, upon the written demand of either party served upon the other party,
      be
      submitted to arbitration. Such arbitration shall be held in the City of New
      York, New York (unless otherwise agreed by the parties), and conducted in
      accordance with the Rules of the American Arbitration Association.

    

    5.12
       Advice
      of Counsel.
      Each
      party
      acknowledges and represents that: (a) it has read the Agreement; (b) it clearly
      understands the Agreement and each of its terms; (c) it fully and
      unconditionally consents to the terms of this Agreement; (d) it has had the
      benefit and advice of counsel of their own selection; (e) it has executed this
      Agreement, freely, with knowledge, and without influence or duress; (f) it
      is
      not relying upon any other representations, either written or oral, express
      or
      implied, made to them by any person; and (g) the consideration received by
      it
      has been actual and adequate.

    

    

    6. Indemnification. 

    

    6.1 Parties
      represent that they comply with all respective applicable laws and regulations,
      including, without limitation, all anti-spam laws and regulations and that
      each
      party’s performance pursuant to the terms of this Agreement will not violate any
      laws or regulations governing the use of emails or the Internet. 

    

    6.2 HSA
      agrees to indemnify and hold harmless, Medefile, its officers, directors,
      agents, shareholders, subsidiaries and affiliates (collectively, “Medefile”)
      against any liability, loss, damages, claim, settlement payment, cost and
      expense, interest, award, judgment, diminution in value, fine, fee, and penalty,
      or other charge, other than Litigation Expenses (as defined in 6.4), arising
      out
      of and relating to HSA’s performance under this Agreement or any agreements
      between HSA and HSA Members.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    6.3 Medefile
      agrees to indemnify and hold harmless, HSA, its officers, directors, agents,
      shareholders, subsidiaries and affiliates against any liability, loss, damages,
      claim, settlement payment, cost and expense, interest, award, judgment,
      diminution in value, fine, fee, and penalty, or other charge, other than
      Litigation Expenses (as defined in 6.4), arising out of and relating to
      Medefile’s performance under this Agreement or any agreements between Medefile
      and HSA Members.

    

    6.4 “Litigation
      Expenses” means any court filing fee, court cost, arbitration fee or cost, and
      any other fee and cost of investigating and defending, or asserting any claim
      for indemnification under this Agreement, including in each case, attorney’s
      fees, other professionals’ fees and disbursements

    

    7. Confidentiality
      and Non-Competition Covenants

    

    7.1
       Safeguarding
      Requirements.
      The
      Gramm-Leach-Bliley (“GLB”) Act requires financial institutions to create
      safeguards for customer records and information. The objectives of the
      safeguards are to (1) insure the security and confidentiality of customer
      records and information; (2) protect against any anticipated threats or hazards
      to the security or integrity of such records; (3) detect unauthorized access
      to
      or use of such records or information and (4) protect against unauthorized
      access to or use of such records or information that would result in substantial
      harm or inconvenience to any customer (the “Safeguarding Objectives”). In order
      to implement these safeguarding requirements, financial institutions are
      required to have written contracts with their service providers (any person
      or
      entity that maintains, processes, or otherwise is permitted access to customer
      information) that require the service provider implement appropriate measures
      designed to meet the Safeguarding Objectives.

    

    7.2 Safeguards.
      The
      Company represents and agrees that it has and will maintain in place
      commercially reasonable precautions to safeguard the confidentiality, security
      and integrity of Confidential Information in a manner designed to meet the
      Safeguarding Objectives. These precautions shall include (A) contractual
      restrictions on access to the information by vendors and companies, (B)
      Intrusion detection systems on all information systems of HSA maintained or
      controlled by Company, and (C) notification procedures for notifying HSA
      promptly in the event a security breach is detected or suspected, as well as
      other response programs when there is a suspected or detected unauthorized
      disclosure, access or attempted access of Customer Information. These
      precautions shall include, as appropriate: (i) access controls to customer
      information systems, including controls to identify and permit access only
      to
      authorized individuals and controls to prevent access to Customer Information
      through fraudulent means; (ii) employee controls and training; (iii) physical
      access restrictions at locations where Customer Information is located; (iv)
      encryption of electronic Customer Information when appropriate or legally
      required; and (v) a disaster recovery plan as appropriate to protect against
      loss or damage to Customer Information due to potential hazards such as fire
      or
      water damage or technological failures. Company agrees that it will (i) monitor
      the foregoing measures with periodic audits or testing and (ii) provide copies
      of the same sufficient to assure to HSA or its regulatory authorities that
      Company is implementing provisions of this Safeguarding Agreement.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    7.3 Confidentiality
      Requirements.
      The
      parties hereto acknowledge that in the general course of doing business under
      this Agreement, each party may disclose information to the other party that
      is
      deemed confidential and is not subject to disclosure to third parties. Unless
      previously indicated in writing by the party making the disclosure, all
      information disclosed by either party pursuant to this Agreement is to be
      considered strictly confidential and the parties hereto will use commercially
      reasonable efforts to maintain such information as strictly confidential and
      to
      inform their respective officers, directors, employees and agents of the
      strictly confidential status of such information. The obligations of this
      paragraph shall not apply, however, to any information which (a) is already
      in
      the public domain at the time of disclosure or later becomes available to the
      public through no breach of the Agreement by the recipient; (b) was, as between
      the recipient and the party making the disclosure, lawfully in the recipient's
      possession prior to receipt from the party making the disclosure without
      obligation of confidentiality; (c) is received by the recipient independently
      from a third party free to lawfully disclose such information to the recipient;
      or (d) is subsequently independently developed by the recipient as evidenced
      by
      its business records. 

    

    Parties
      agree to (a) use reasonable care to maintain the confidentiality of Confidential
      Information and limit its disclosure to only such of its Representatives as
      have
      a need to know such Confidential Information in order to conduct the
      Discussions; (b) be responsible for the compliance by its Representatives with
      the provisions of this Agreement; (c) not copy Confidential Information for
      any
      purpose other than as necessary to provide agreed-upon services to HSA; (d)
      Not
      use any Confidential Information for any purpose other than as necessary to
      provide agreed-upon services under this Agreement; (e) not discuss or disclose
      Confidential Information except as authorized by this Agreement or as expressly
      authorized by HSA; and (f) promptly report to HSA any actual or suspected
      violation of the terms of this Agreement and take all reasonable further steps
      as required by HSA to prevent, control or remedy any such
      violation.

    

    7.4
       Notification
      of Required Disclosure.
      Notwithstanding the foregoing, each party shall have the right to disclose
      and
      disseminate Confidential Information to third parties as required by law or
      by a
      court order, provided that prior to any such disclosure or dissemination, the
      party disclosing or disseminating the Confidential Information shall notify
      the
      other party and the other shall have the opportunity, at its own cost, to
      contest such disclosure or dissemination by appropriate proceedings. HSA shall
      also have the right to disclose Confidential Information to its internal and
      external auditors and legal counsel if such disclosure is required by law and
      the auditors and legal counsel are subject to the nondisclosure provisions
      of
      Section 7.3 hereto. 

    

    7.5 Notification
      of Security Breach.
      The
      Company agrees that in the event the Company becomes aware of the occurrence
      of
      a breach of security with respect to Confidential Information, the Company
      will
      immediately notify HSA in writing, of the breach, the extent of the breach,
      and
      possible consequences of the breach. The Company shall undertake all reasonable
      actions under the circumstances to respond to the breach and to assure HSA
      that
      the Company has made its best effort to mitigate any damages that may result
      from the breach. This provision shall survive the termination or expiration
      of
      this Agreement. 

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    7.6 Return
      of Documents.
      Upon
      the expiration or termination of this Agreement, parties shall not remove,
      without written consent of the other, any manuals, files, agreements, contracts,
      records, customer lists, any other documents of similar nature, or any copy
      or
      other reproduction thereof, or any other property or confidential information,
      of or pertaining to the other party or any of its subsidiaries. The parties
      shall return all of the preceding items provided by the other within 30 days
      of
      expiration or termination of this Agreement. 

    

    

    [SIGNATURE
      PAGE FOLLOWS]

    

    

    

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Agreement is executed by the parties’ authorized
      representatives below, on the day and year first above written.

     

    

    
      	
              MEDEFILE
                INTERNATIONAL, INC.

              2
                Ridgedale Avenue, Suite 217

              Cedar
                Knolls, NJ 07927

              Facsimile:
                (973) 993-8180

               

               

               

              By: /s/
                Milton Hauser

              
                

              

              Name:
                Milton Hauser

              Title:
                Chief Executive Officer

               

               

               

            	
              HSA
                BANK®
                a
                division of Webster Bank, N.A.

              605
                N 8th
                St
                420

              Sheboygan
                WI 53081

              Facsimile:
                (920) 803-4184

               

               

               

              By: /s/Kirk
                Hoewisch

              
                

              

              Name: Kirk
                Hoewisch  

              Title:
                President

               

            

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    

    DISCOUNTED
      RATE

    

    

    
      
        
        

      

      
        10

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