Document:

Exhibit 10.2

$1,000,000.00                    SECURED NOTE                  New York 8-3-00

      90  days  after  date,  for  value  received,  undersigned,   jointly  and
severally,  promises to pay to the order of STERLING  NATIONAL  BANK ("Bank") at
any of its banking  offices in New York, One Million Dollars and zero cents with
interest from date on the unpaid  principal  hereof until  maturity  (whether as
stated or by acceleration) or demand,  according to the tenor hereof,  at a rate
per annum equal to 1% above  Bank's base loan rate,  from time to time in effect
(but in no event in excess of the maximum  rate  permitted by  applicable  law);
interest  shall be payable  MONTHLY  |X| AT  MATURITY  |_|.  If the space in the
preceding  sentence is  completed by the  insertion of a "O",  then the interest
rate hereunder shall after such be equal to Bank's base loan rate. Any change in
such  interest  rate shall be  effective  on the date a change in such base loan
rate occurs, without notice to undersigned. Interest maturity or demand shall be
at a rate per  annum  equal to 2% above  that rate  charged  on the date of such
maturity  or  demand.  When  undersigned  is a  corporation,  interest  shall be
calculated on the basis of a 360-day year for actual days elapsed.

      As  collateral  security  for the payment of any and all  liabilities  and
obligations  of  undersigned  to Bank  (including  this  note and any  renewals,
extensions  or  modifications  thereof),   whether  now  existing  or  hereafter
incurred,   originally  contracted  with  Bank  or  with  others,   absolute  or
contingent,  secured  or  not  secured,  matured  or  not  matured  (all  of the
foregoing,  including those obligations of undersigned in which Bank may acquire
a participation,  hereinafter  collectively called  "Obligations"),  undersigned
hereby grants Bank a security interest in, assigns and deposits with Bank or its
agents,  the  following  property  and all  renewals,  extensions,  proceeds and
products thereof and substitutions therefor as per attached schedule "A".

      In order to further  secure the  payment  of  Obligations,  Bank is hereby
given a  security  interest,  continuing  lien  and  right of  set-off  upon all
property of  undersigned,  and all renewals,  extensions,  proceeds and products
thereof and substitutions  therefor, now or hereafter actually or constructively
held or received by or for Bank for any purpose, including safekeeping, custody,
pledge,  transmission and collection,  and Bank shall have a security  interest,
continuing  lien and right of set-off for the amount of Obligations  upon all of
undersigned's  deposits (general and special) and credits with Bank. (All of the
foregoing,  together  with any property in which Bank now or hereafter  shall be
granted a security  interest,  are  hereinafter  individually  and  collectively
called  "Collateral  Security".) Bank is hereby  authorized at any time or times
without  notice to apply all or part of such deposits or credits to  Obligations
and in such amounts as Bank may elect, although Obligations may be contingent or
unmatured  and  whether  or not  the  Collateral  Security  therefor  is  deemed
adequate.

      If  undersigned,  as  registered  holder of  Collateral  Security  becomes
entitled to or receives,  (i) any interest,  dividend or other  distribution  in
cash or other property from the issuer, or in connection with the dissolution or
liquidation  of the  issuer,  of such  Collateral  Security  or,  (ii) any stock
certificate,  option or right, whether as an addition to, in substitution of, or
in exchange for, such Collateral Security,  or otherwise,  undersigned agrees to
accept same in trust as bank's  agent,  and forthwith to deliver same to Bank in
the exact form  received,  with  undersigned's  endorsement  or assignment  when
necessary, to be held by Bank as Collateral Security.

      Undersigned  waives  protest,  demand  for  payment,  notice of default or
non-payment to any party liable upon or any guarantor, surety or indemnitor for,
Obligations or Collateral Security.  Undersigned consents that the obligation of
any party for or upon Obligations or Collateral

<PAGE>

Security  may from  time to time,  in whole  or in part,  be  renewed,  extended
modified,  accelerated,  compromised,  settled or released by Bank, and that any
Collateral  Security  may from  time to time be  exchanged,  sold  released,  or
surrendered  by Bank,  without  any notice to, or assent by, or  reservation  of
rights against  undersigned,  and without affecting the liability of undersigned
upon  Obligations.  Bank shall not be liable  for  failure to collect or realize
upon Obligations or Collateral Security, or for any delay in so doing, nor shall
Bank be under any obligation to take any action with regard thereto.  Bank shall
use reasonable care in the custody and  preservation  of Collateral  Security in
its possession but need not keep Collateral Security  identifiable,  nor, in the
case of instruments or chattel paper,  take any steps to preserve rights against
prior  parties.  Bank  shall  have  no  obligation  to  comply  with  any  legal
requirement  necessary  to  establish  or  maintain  the  validity,  priority or
enforceability  of Bank's rights in Collateral  Security.  Bank may exercise any
right of undersigned  with respect to Collateral  Security.  In any statutory or
non-statutory  proceeding affecting undersigned or Collateral Security,  whether
or not a default exists in and regardless of the amount of Obligations,  Bank or
its nominee may file a proof of claim for the full amount of Collateral Security
and vote such claim for any and all purposes for the full amount  thereof on any
matter arising in connection with such  proceeding;  and Bank or its nominee may
receive payments or distributions,  giving acquitance therefor, and may exchange
or release  Collateral  Security.  Without  notice and  whether or not a default
exists with respect to Obligations, Bank may register in its name or that of its
nominee any securities held hereunder without disclosing that Bank is a pledgee,
and Bank may  exercise all rights,  privileges  and options  pertaining  to such
securities as if absolute owner thereof, including,  without limitation,  rights
of conversion,  exchange,  subscription  and to receive and retain as additional
Collateral  Security any  interest,  dividend or other  distribution  in cash or
property with respect thereto. In connection  therewith,  Bank may make deposits
and  deliveries  of such  securities  without  liability  except to account  for
property  actually  received by it. Bank shall not be responsible for failure or
delay  in  exercising  any of  the  aforesaid  rights,  privileges  or  options.
Undersigned  shall remain  responsible for ascertaining  any maturities,  calls,
conversions,  exchanges,  tenders  or similar  matters  relating  to  Collateral
Security,  and Bank shall have no duty to so ascertain or to inform  undersigned
with respect thereto (whether or not Bank has, or is deemed to have, knowledge).
Should  undersigned  ascertain  any such event and request that Bank take action
with respect thereto, Bank shall not be required to do so unless such request be
in writing and Bank  determines  that such action will not adversely  affect the
value as collateral of such Collateral Security.

      Undersigned authorizes Bank to sign and file financing statements at any
time with respect to Collateral Security without the signature of undersigned.
At Bank's request, undersigned will sign all documents necessary to effect
transfer of, or perfect Bank's security interest in, Collateral Security;
however, in any event, Bank is hereby irrevocably appointed undersigned's true
and lawful attorney at all times. Obligations are outstanding to execute,
deliver and file such documents in undersigned's name, with or without
designation of Bank's signing capacity. Undersigned agrees to pay filing fees
and to reimburse Bank for all costs and expenses incurred in connection with
Collateral Security.

      Bank may sell all or part of Collateral Security, although Obligations may
be contingent or unmatured,  whenever in its discretion Bank considers such sale
necessary  for  its  protection.  Any  such  sale  may be  made  in  the  manner
hereinafter provided,  without first exercising any

<PAGE>

rights of offset and without  making demand for margin or for payment on account
or any other demand. The making of such demand,  oral or written,  in any one or
more  instances  shall not establish a course of conduct nor constitute a waiver
of Bank's rights,  as herein provided,  to sell Collateral  Security without any
demand or to accelerate the maturity of Obligations.

      If undersigned  fails to perform any agreement  contained herein or in any
other agreement  delivered to Bank, or default occurs in the punctual payment of
any sum payable upon any  Obligations or Collateral  Security,  or if any of the
following  events of default  occurs  with  respect to any maker,  endorser,  or
guarantor of, or any other party to Obligations or Collateral  Security (each of
whom,  including  undersigned,  is  included  in the term "them" as used in this
paragraph):  default  with  respect to any  liabilities  or  obligations  to, or
agreements with, Bank; death; dissolution;  death of any member or a partnership
included in the term "them";  insolvency;  any case,  proceeding or other action
shall commence relating to bankruptcy, insolvency,  reorganization, or relief of
debtors; calling of a meeting of any creditors; making or sending a notice of an
intended bulk transfer;  granting a security interest in any property  including
Collateral Security; suspension or liquidation of usual business; failing, after
demand,  to furnish  Bank with any  financial  information  or to permit Bank to
inspect  books or records;  making any  misrepresentation  to Bank in  obtaining
credit;  failing to pay or remit any tax when  assessed  or due;  failing to pay
when due any  obligation  to others;  filing of a voluntary  petition  under any
provision  of  the  Bankruptcy  Code  or  amendments  thereto;  application  for
appointment of a receiver or  liquidating  agent or similar  person;  entry of a
judgment against any of them,  issuance of an order of attachment against any of
their  property;  commencement  of any  proceeding  for  enforcement  of a money
judgment;  failure of any of them or Obligations  or Collateral  Security at any
time to comply with  Regulation U of the Federal  Reserve  Board;  or if, at any
time, in the opinion of Bank, the financial  responsibility of any of them shall
become impaired; or if Bank deems itself insecure; then, in any of these events,
Obligations,  although not yet due, shall be due and payable immediately without
notice of demand.

      Upon and after the  happening of any event of default Bank shall have,  in
addition to all other rights and remedies, the remedies of a secured party under
the New York Uniform  Commercial Code. Bank will give undersigned  notice of the
time and place of any public sale or of the time after which any private sale or
other  intended  disposition  of  Collateral  Security is to be made, by sending
notice  at  least  five  days  before  the  time of sale or  disposition,  which
provisions for notice  undersigned and Bank agree are reasonable.  Bank need not
give such notice with respect to  Collateral  Security  which is  perishable  or
threatens  to decline  speedily in value or is of a type  customarily  sold on a
recognized market.

      In the event  Bank is unable  to  effect a public  sale of any  Collateral
Security by reason of  applicable  securities  laws,  Bank is  authorized at any
private sale to restrict  prospective  purchasers to persons who will  represent
and agree to purchase such Collateral  Security for their account for investment
and not with a view to the  distribution or resale thereof.  Undersigned  agrees
that at any such private sale Collateral Security may be sold at a price that is
less than the price which  might have been  obtained at a public sale or that is
less than the aggregate  amount of  Obligations,  even if Bank accepts the first
offer  received  and does not offer such  Collateral  Security  to more than one
person.

<PAGE>

      Bank may apply net proceeds of any  disposition  of  Collateral  Security,
after first deducting all costs and expenses incidental thereto, including legal
expenses and attorney's fees as provided  below, to the payment,  in whole or in
part, of Obligations,  whether due or not, absolute or contingent, in such order
as Bank may elect.  Undersigned  shall remain  liable to Bank for payment of any
deficiency.

      Bank shall not be any act, delay,  omission or otherwise be deemed to have
waived any rights or remedies hereunder.  No waiver shall be valid unless signed
by Bank.  Any waiver by Bank on any  occasion  shall not bar any right or remedy
which  Bank  would  otherwise  have had on any  future  occasion.  No  executory
agreement  unless signed by Bank, and no course of dealing  between  undersigned
and Bank,  shall be effective  to modify or  discharge,  in whole or part,  this
note.  All rights and remedies of Bank shall be cumulative  and may be exercised
singly or concurrently.

      Each  undersigned  agrees  that,  if  any  attorney  is  used  to  enforce
Obligations or to enforce or declare any rights under  Obligations or Collateral
Security,  whether by suit or other means, an attorney's fee of 15% of principal
and interest then due on such  Obligations  shall be payable by each undersigned
against  whom  Obligations  or  rights  hereunder  are  enforced,   declared  or
adjudicated.

      Any notice to Bank shall be deemed  effective when received at its branch,
division, or department conducting the transaction  hereunder.  Each undersigned
agrees that,  any notice to any  undersigned  whose name appears  below shall be
effective when sent to the last known address of such  undersigned  appearing on
records of Bank and shall be deemed notice to all the undersigned.

      Bank and undersigned, in any litigation, (whether relating to Obligations,
Collateral Security or any other matter) in which they shall be adverse parties,
waive trial by jury and undersigned,  in addition, waives the right to interpose
any set-off or counterclaim of any nature of description.

      Bank is hereby  authorized to fill in any blank spaces in this note and to
date this note as of the date when the loan is made and to correct patent errors
herein.

      Time for  payment  extended by law shall be  included  in  computation  of
interest.

<PAGE>

      This note shall be governed by and construed in accordance with the law of
New York State.

                                                AmeriCom USA, Inc.

                                                By: /s/ Thomas J. Hopfensperger
                                                   -----------------------------

<PAGE>

                                  Schedule "A"

      All property and assets and interests in property and assets of the
      Debtor, of whatever kind of nature, and whether real, personal, or mixed,
      and wherever located, or situate, now existing or hereafter acquired or
      created, including, but not limited to, accounts, notes, documents,
      instruments, contract rights, chattel paper, tax refunds, general
      intangibles and interest of Debtor in any goods thereby represented and
      all goods, (including, but not limited to, inventory), fixtures and
      equipment, all contract rights with respect thereto and all documents
      representing the same and all proceeds, products, rents and profits of all
      the foregoing.

      All terms used herein shall have the meanings ascribed thereto by article
      9 of the New York Uniform Commercial Code.

      BY: /s/ Thomas J. Hopfensperger
          ----------------------------Exhibit 10-3
                               SECURITY AGREEMENT

            This SECURITY AGREEMENT (this "Agreement") is dated as of August 3,
2000 and entered into by and among AMERICOM USA, INC., a Delaware corporation
(the "Company"), the other Persons listed on the signature pages hereof (the
Company together with such other Persons, the "Grantors" and each a "Grantor"),
and AVV. GIACOMO TORRENTE of c/o Sylvia Quarnstrom, 51 West 69th Street, Apt.
5D, New York, New York 10023 ("Secured Party").

PRELIMINARY STATEMENTS:

            (1) The Company has executed and delivered a promissory note, dated
as of the date hereof (as amended, supplemented, amended and restated or
otherwise modified from time to time, the "Note"), in favor of the Sterling
National Bank of New York (the "Bank"), evidencing a loan in the aggregate
principal amount of $1,000,000 made by the Bank to the Company (the "Loan").

            (2) As collateral security for the Loan, the Company has entered
into a General Loan and Security Agreement, dated as of the date hereof (the
"Bank Security Agreement"), between the Company and the Bank, pursuant to which
the Company has granted to the Bank a first priority security interest in and
lien on the assets and property of the Company.

            (3) As further security for the Loan, and at the request of the
Company and the Bank, Secured Party has (i) entered into a Guaranty of All
Liabilities and Security Agreement (the "Guaranty"), dated as of the date
hereof, between Secured Party and the Bank, and pursuant to and in accordance
with the Guaranty, Secured Party has guaranteed the obligations of the Company
under the Note and the Bank Security Agreement to the Bank and (ii) opened a
bank account with the Bank at the Bank's office in New York, in the name of
Secured Party, and deposited in such bank account the sum of $1,000,000 (the
"Deposit").

            (4) In connection with the transactions contemplated by the Note and
the Guaranty and as a condition precedent to (i) the making of the Deposit by
Secured Party and (ii) the execution and delivery by Secured Party of the
Guaranty, Secured Party has requested that each Grantor execute and deliver this
Agreement to Secured Party.

            (5) Each Grantor will derive substantial benefits from (i) the
making of the Deposit by Secured Party and (ii) the making of the Loan by the
Bank and the transactions contemplated by the Note and, accordingly, each
Grantor desires to execute and deliver this Agreement to satisfy the condition
described in the preceding paragraph (3).

            NOW, THEREFORE, in consideration of the premises and in order to
induce Secured Party to make the Deposit and to enter into the Guaranty and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, each Grantor hereby agrees with Secured Party as follows:

<PAGE>

            1. Grant of Security.  Each Grantor hereby assigns to Secured Party,
and hereby  grants to Secured  Party a second  priority  security  interest  in,
subject  to and  subordinate  in all  respects  to the first and prior  security
interest of the Bank therein, all of such Grantor's right, title and interest in
and to the following, in each case whether now or hereafter existing or in which
such Grantor now has or hereafter acquires an interest and wherever the same may
be located (the "Collateral"):

            (a) all  equipment  in all of its forms,  all parts  thereof and all
accessions  thereto (any and all such equipment,  parts and accessions being the
"Equipment");

            (b) all inventory in all of its forms  (including (i) all goods held
by such Grantor for sale or lease or to be furnished  under contracts of service
or so leased or furnished,  (ii) all raw  materials,  work in process,  finished
goods,  and materials used or consumed in the  manufacture,  packing,  shipping,
advertising,  selling,  leasing,  furnishing or production of such  inventory or
otherwise used or consumed in such Grantor's business,  (iii) all goods in which
such  Grantor has an  interest in mass or a joint or other  interest or right of
any  kind,  and (iv) all goods  which are  returned  to or  repossessed  by such
Grantor) and all accessions  thereto and products  thereof (all such  inventory,
accessions and products being the "Inventory")  and all negotiable  documents of
title (including  warehouse receipts,  dock receipts and bills of lading) issued
by any Person  covering any  Inventory  (any such  negotiable  document of title
being a "Negotiable Document of Title");

            (c)  all  accounts,   contract  rights,  chattel  paper,  documents,
instruments,  general  intangibles  and other rights and obligations of any kind
and all  rights  in, to and  under all  security  agreements,  leases  and other
contracts securing or otherwise relating to any such accounts,  contract rights,
chattel paper, documents,  instruments, general intangibles or other obligations
(any  and  all  such  accounts,   contract  rights,  chattel  paper,  documents,
instruments, general intangibles and other obligations being the "Accounts", and
any and all such  security  agreements,  leases  and other  contracts  being the
"Related Contracts");

            (d) all deposit  accounts,  all funds from time to time held therein
and all certificates and instruments,  if any, from time to time representing or
evidencing such accounts;

            (e) all contracts and agreements to which such Grantor is now or may
hereafter  become a party,  as each such  contract and agreement may be amended,
supplemented  or  otherwise  modified  from  time to time  (said  contracts  and
agreements, as so amended, supplemented or otherwise modified, being referred to
herein individually as an "Assigned Agreement" and collectively as the "Assigned
Agreements"),  including (i) all rights of such Grantor to receive moneys due or
to become due under or pursuant to the Assigned  Agreements,  (ii) all rights of
such  Grantor to receive  proceeds  of any  insurance,  indemnity,  warranty  or
guaranty  with  respect  to the  Assigned  Agreements,  (iii) all claims of such
Grantor for damages  arising out of any breach of or default  under the Assigned
Agreements, and (iv) all rights of such Grantor to terminate, amend, supplement,
modify or exercise rights or options under the Assigned  Agreements,  to perform
thereunder  and to  compel  performance  and  otherwise  exercise  all  remedies
thereunder;

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<PAGE>

            (f) to the  extent  not  included  in any  other  paragraph  of this
Section 1, all other  general  intangibles  (including  tax  refunds,  rights to
payment or  performance,  choses in action and judgments  taken on any rights or
claims included in the Collateral);

            (g)  all  business   fixtures  and  storage  and  office  facilities
constituting personal property, and all accessions thereto and products thereof;

            (h)  all  books,  records,  ledger  cards,  files,   correspondence,
computer programs, tapes, disks and related data processing software that at any
time evidence or contain  information  relating to any of the  Collateral or are
otherwise  necessary  or  helpful  in  the  collection  thereof  or  realization
thereupon;

            (i) all rights  and  interests  in all  trademarks,  service  marks,
tradenames, business names, and/or other business identifiers pertaining to such
Grantor's  business and application  therefor  (collectively,  the "Trademarks")
that  are  presently,  or in the  future  may  be,  owned,  held or used by such
Grantor, in whole or in part (including the Trademarks  specifically  identified
in Schedule I annexed  hereto,  as the same may be amended  pursuant hereto from
time to time),  and  including  all  common  law and other  rights in and to the
Trademarks  in the  United  States  and any  state  thereof  and in all  foreign
countries  (the  "Trademark   Rights")  and  all  federal,   state  and  foreign
registrations  that  heretofore  have been or hereafter may be issued or applied
for  thereon in the  United  States,  in any state  thereof  and in any  foreign
country ("Trademark Registrations"), the right (but not the obligation) to apply
for and renew and extend the Trademarks,  Trademark  Registrations and Trademark
Rights,  the  right  (but  not the  obligation)  to sue or bring  opposition  or
cancellation  proceedings  in the name of such Grantor or in the name of Secured
Party or otherwise for past, present and future infringements of the Trademarks,
Trademark Registrations or Trademark Rights and all rights (but not obligations)
corresponding  thereto in the United  States and any  foreign  country,  and all
goodwill of such Grantor's business  symbolized by the Trademarks and associated
therewith,  including the  documents  and things  described in Section 1(j) (the
"Associated  Goodwill");  it being  understood  that the  rights  and  interests
included herein shall include all rights and interests  pursuant to licensing or
other contracts in favor of such Grantor pertaining to the Trademarks, Trademark
Registrations  or Trademark  Rights  presently or in the future owned or used by
third parties but, in the case of third parties which are not affiliates of such
Grantor,  only to the extent permitted by such licensing or other contracts and,
if not so permitted, only with the consent of such third parties;

            (j) all United  States and foreign  patents and patent  applications
and all re-issues,  divisions,  continuations  thereof, and rights and interests
thereof in the United States and in all foreign  countries  ("Patent Rights") in
patents and patent  applications  that are  presently,  or in the future may be,
owned, held or used by such Grantor,  in whole or in part (including the patents
and patent applications listed in Schedule II annexed hereto, as the same may be
amended  pursuant hereto from time to time), all rights (but not obligations) to
sue in the name of such Grantor or in the name of Secured Party or otherwise for
past,  present and future  infringements of the Patents or Patent Rights (all of
the  foregoing  being  collectively  referred  to as the  "Patents");  it  being
understood that the rights and interest assigned hereby shall include all rights
and interests  pursuant to licensing or other contracts in favor of such Grantor
pertaining to patent  applications and patents  presently or in the future owned
or used by  third  parties  but,  in

                                       3
<PAGE>

the case of third parties which are not affiliates of such Grantor,  only to the
extent  permitted by such licensing or other contracts and, if not so permitted,
only with the consent of such third parties;

            (k) the following documents and things in such Grantor's possession,
or subject to such Grantor's right to possession, related to (y) the production,
sale  and  delivery  by  such  Grantor,   or  by  any  affiliate,   licensee  or
subcontractor  of such Grantor,  of products or services sold or delivered by or
under the  authority of such  Grantor in  connection  with the  Patents,  Patent
Rights, Trademarks,  Trademark Registrations or Trademark Rights (which products
and  services  shall,  for  purposes  of this  Agreement,  be deemed to  include
products and services  sold or delivered  pursuant to  merchandising  operations
utilizing any Patents,  Patent Rights,  Trademarks,  Trademark  Registrations or
Trademark Rights); or (z) any retail or other merchandising operations conducted
under the name of or in connection with the Patents, Patent Rights,  Trademarks,
Trademark  Registrations  or Trademark  Rights by such Grantor or any affiliate,
licensee or subcontractor of such Grantor:

            (i) all lists and ancillary documents that identify and describe any
      of such  Grantor's  customers,  or those of its  affiliates,  licensees or
      subcontractors,  for  products  sold and  services  delivered  under or in
      connection  with the  Patents,  Patent  Rights,  Trademarks  or  Trademark
      Rights,  including  any  lists  and  ancillary  documents  that  contain a
      customer's  name  and  address,  the  name  and  address  of  any  of  its
      warehouses,  branches or other  places of  business,  the  identity of the
      Person or Persons  having the  principal  responsibility  on a  customer's
      behalf for  ordering  products or  services  of the kind  supplied by such
      Grantor, or the credit,  payment,  discount,  delivery or other sale terms
      applicable to such customer,  together with information  setting forth the
      total  purchases,  by  brand,  product,  service,  style,  size  or  other
      criteria, and the patterns of such purchases;

            (ii) all product and service specification  documents and production
      and  quality  control  manuals  used in the  manufacture  or  delivery  of
      products and services sold or delivered  under or in  connection  with the
      Patents, Patent Rights, Trademarks or Trademark Rights;

            (iii) all documents  which reveal the name and address of any source
      of  supply,  and any  terms  of  purchase  and  delivery,  for any and all
      materials,  components and services used in the production of products and
      services sold or delivered under or in connection with the Patents, Patent
      Rights, Trademarks or Trademark Rights; and

            (iv) all documents  constituting  or concerning  the then current or
      proposed  advertising  and  promotion by such  Grantor or its  affiliates,
      licensees or  subcontractors  of products  and services  sold or delivered
      under or in  connection  with the Patents,  Patent  Rights,  Trademarks or
      Trademark Rights including all documents which reveal the media used or to
      be used  and the  cost  for all  such  advertising  conducted  within  the
      described period or planned for such products and services;

            (l) all  copyrights,  rights,  titles and  interests in and to works
protectable  by  copyright,  including  the  copyrights  listed on Schedule  III
attached  hereto,  as the same may be

                                       4
<PAGE>

amended  pursuant  hereto  from  time  to  time  (all  of  the  foregoing  being
collectively  referred to as the "Copyrights"),  which are presently,  or in the
future may be, owned,  created,  authored (as a work for hire), acquired or used
(whether  pursuant to a license or otherwise)  by such  Grantor,  in whole or in
part, and all common law and other rights in and to the Copyrights in the United
States and any state  thereof and in all  foreign  countries,  and all  federal,
state and foreign  registrations  that  heretofore have been or hereafter may be
issued or applied for thereon in the United States,  in any state thereof and in
any foreign  country,  heretofore  or hereafter  granted or applied for, and all
renewals and extensions  thereof,  throughout the world,  including all proceeds
thereof (such as, by way of example and not by limitation, license royalties and
proceeds of infringement  suits),  and the right (but not the obligation) to sue
in the name of such  Grantor or in the name of Secured  Party for past,  present
and future infringements of the Copyrights;  it being understood and agreed that
the Collateral  assigned  hereby shall include rights and interests  pursuant to
licensing or other  contracts in favor of such Grantor  pertaining to copyrights
and works  protectable by copyright  presently or in the future owned or used by
third-parties, but in the case of third-parties which are not affiliates of such
Grantor,  only to the extent permitted by such licensing or other contracts and,
if not so permitted, only with the consent of such third-parties; and

            (m) all proceeds,  products,  rents and profits  (including  license
royalties  and  proceeds  of  infringement  suits) of or from any and all of the
foregoing  Collateral  and, to the extent not otherwise  included,  all payments
under insurance (whether or not Secured Party is the loss payee thereof), or any
indemnity,  warranty  or  guaranty,  payable  by  reason of loss or damage to or
otherwise with respect to any of the foregoing Collateral.  For purposes of this
Agreement,  the term "proceeds" includes whatever is receivable or received when
Collateral or proceeds are sold, exchanged,  collected or otherwise disposed of,
whether such disposition is voluntary or involuntary.

            2. Conditional  Assignment;  License. In addition to, and not by way
of limitation of, the granting of a security interest in the Collateral pursuant
to Sections 1(i),  (j), (k) or (l) (the "IP  Collateral"),  each Grantor hereby,
effective  upon the occurrence of an Event of Default (as  hereinafter  defined)
and upon written notice from Secured Party, grants, sells,  conveys,  transfers,
assigns and sets over to Secured Party,  for its benefit,  all of such Grantor's
right, title and interest in and to the IP Collateral,  including such Grantor's
right,  title and  interest in and to the  Trademarks  identified  in Schedule I
annexed hereto, the goodwill of the business symbolized by said Trademarks,  all
Trademark  Registrations  relating  to said  Trademark,  the  Patents and patent
applications  identified  in  Schedule  II  annexed  hereto  and the  Copyrights
identified  in  Schedule  III  annexed  hereto.  Each  Grantor  hereby  assigns,
transfers and conveys to Secured  Party,  effective  upon the  occurrence of any
Event of Default,  the  nonexclusive  right and  license to use all  trademarks,
tradenames,  copyrights,  patents or technical  processes  owned or used by such
Grantor that relate to the Collateral and any other  collateral  granted by such
Grantor as  security  for the  Secured  Obligations  (as  hereinafter  defined),
together with any goodwill associated therewith,  all to the extent necessary to
enable Secured Party to use, possess and realize on the Collateral and to enable
any successor or assign to enjoy the benefits of the Collateral.  This right and
license shall inure to the benefit of all successors, assigns and transferees of
Secured Party and its successors, assigns and transferees,  whether by voluntary
conveyance, operation of law, assignment, transfer, foreclosure, deed in lieu of
foreclosure  or

                                       5
<PAGE>

otherwise. Such right and license is granted free of charge, without requirement
that any monetary payment whatsoever be made to such Grantor.

            3.  Security  for  Obligations;  Subordination.  (a) This  Agreement
secures,  and the  Collateral is collateral  security for, the prompt payment or
performance  in full  when due,  whether  at stated  maturity,  by  declaration,
acceleration,  demand or otherwise  (including the payment of amounts that would
become due but for the operation of the automatic  stay under Section  362(a) of
the United States Bankruptcy Code, 11 U.S.C. ss.362(a)),  of all obligations and
liabilities of every nature of the Company to the Bank now or hereafter existing
under  or  arising  out of or in  connection  with the Loan and the Note and all
substitutions,  extensions or renewals thereof, whether for principal,  interest
(including  interest that,  but for the filing of a petition in bankruptcy  with
respect to the Company or any other  Grantor,  would accrue on such  obligations
whether or not a claim is allowed  against the Company for such  interest in the
related  bankruptcy  proceeding),  fees,  expenses,  indemnities  or  otherwise,
whether  voluntary or involuntary,  direct or indirect,  absolute or contingent,
liquidated or unliquidated,  whether or not jointly owed with others, whether or
not from time to time decreased or extinguished and later increased,  created or
incurred,  and whether or not such  obligations or  liabilities  are paid by the
Secured Party to the Bank  pursuant to the  Guaranty,  and all or any portion of
such  obligations or liabilities that are paid, to the extent all or any part of
such payment is avoided or recovered  directly or  indirectly  as a  preference,
fraudulent  transfer or  otherwise  and all  obligations  of every nature of the
Company and each other Grantor now or hereafter  existing  under this  Agreement
(all such obligations being the "Secured Obligations").

            (b) Secured  Party  hereby  agrees that all Liens that such  Secured
Party may now have or hereafter acquire against any of the Collateral  resulting
from or relating to the Secured  Obligations  shall be subordinate and junior in
all  respects  to the Liens  against the  property  of the  Grantors of the Bank
created by the Bank  Security  Agreement,  regardless of the order or time as of
which any Liens attach to any of the Collateral,  the order or time of financing
statement  filings  or any other  filings  or  recordings,  the order of time of
granting of any such Liens, or the physical possession of any of the Collateral.

            4. Grantors Remain Liable. Anything contained herein to the contrary
notwithstanding,  (a) each Grantor  shall remain  liable under any contracts and
agreements  included  in the  Collateral,  to the extent set forth  therein,  to
perform all of its duties and  obligations  thereunder  to the same extent as if
this Agreement had not been  executed,  (b) the exercise by Secured Party of any
of its rights  hereunder shall not release any Grantor from any of its duties or
obligations under the contracts and agreements  included in the Collateral,  and
(c) Secured Party shall not have any obligation or liability under any contracts
and agreements included in the Collateral by reason of this Agreement, nor shall
Secured  Party be obligated to perform any of the  obligations  or duties of any
Grantor  thereunder  or to take any action to  collect or enforce  any claim for
payment assigned hereunder.

            5.   Representations  and  Warranties.   Each  Grantor  jointly  and
severally represents and warrants as follows:

            (a)  Formation;  Good  Standing.  Such  Grantor is a duly formed and
validly existing corporation in good standing under the laws of the jurisdiction
of the its  incorporation,

                                       6
<PAGE>

(ii) has the power and  authority to own its property and assets and to transact
the business in which it is engaged and  presently  proposes to engage and (iii)
is duly  qualified  and is  authorized to do business and is in good standing in
each jurisdiction  where the ownership,  leasing or operation of property or the
conduct of its business requires such  qualifications  except for failures to be
so qualified  which, in the aggregate,  would not have a material adverse effect
on the performance, business, assets, nature of assets, liabilities, operations,
properties, condition (financial or otherwise) or prospects of such Grantor.

            (b)  Ownership  of  Collateral.  Except  for the  security  interest
created by this Agreement and the Bank Security Agreement, such Grantor owns the
Collateral free and clear of any Lien. No effective financing statement or other
instrument  similar in effect  covering all or any part of the  Collateral is on
file in any recording office, except such as may have been filed in favor of (i)
Secured  Party  relating to this  Agreement  and (ii) Bank  relating to the Bank
Security  Agreement.  No  effective  filing  with the United  States  Patent and
Trademark  Office covering all or any part of the Collateral is on file with the
United States Patent and Trademark Office,  except such as may be filed in favor
of such  Grantor  evidencing  such  Grantor's  right,  title and interest in the
Patents and  Trademarks or in favor of Secured Party  relating to this Agreement
or in favor of the Bank  relating to the Bank Security  Agreement.  No effective
filing with the United States  Copyright  Office covering all or any part of the
Collateral is on file with the United States  Copyright  Office,  except such as
may be filed in favor of such Grantor evidencing such Grantor's right, title and
interest  in the  Copyrights  or in  favor of  Secured  Party  relating  to this
Agreement or in favor of the Bank relating to the Bank Security Agreement.

            (c) Location of Equipment  and  Inventory.  All of the Equipment and
Inventory is, as of the date hereof, located at the places specified in Schedule
IV annexed hereto.

            (d)  Description of IP  Collateral.  A true and complete list of all
Trademarks,  Trademark Registrations,  Trademark Rights,  Copyrights owned, held
(whether  pursuant to a license or otherwise) or used by such Grantor,  in whole
or in part, as of the date of this  Agreement is set forth in Schedule I and III
annexed  hereto,  and a true and complete  list of all Patents and Patent Rights
owned,  held  (whether  pursuant  to a  license  or  otherwise)  or used by such
Grantor,  in whole or in part, as of the date of this  Agreement is set forth in
Schedule II annexed hereto.

            (e)  Validity  and  Enforceability  of IP  Collateral.  Each  of the
Patents, Patent Rights,  Trademarks,  Trademark Registrations,  Trademark Rights
and  Copyrights  owned  by such  Grantor  and,  to the  best  of such  Grantor's
knowledge,   each  of  the  Patents,   Patent  Rights,   Trademarks,   Trademark
Registrations,  Trademark Rights and Copyrights used by such Grantor pursuant to
a license, is valid, subsisting and enforceable and such Grantor is not aware of
any  pending or  threatened  claim by any third  party that any of the  Patents,
Patent  Rights,  Trademarks,  Trademark  Registrations,   Trademark  Rights  and
Copyrights is invalid or unenforceable or that the use by such Grantor of any of
the Patents,  Patent  Rights,  Trademarks,  Trademark  Registrations,  Trademark
Rights and  Copyrights  violates  the rights of any third Person or of any basis
for any such claim.

            (f) Negotiable  Documents of Title. No Negotiable Documents of Title
are outstanding with respect to any of the Inventory.

                                       7
<PAGE>

            (g) Office Locations;  Other Names. The chief place of business, the
chief  executive  office and the office  where such  Grantor  keeps its  records
regarding  the Accounts and all  originals  of all chattel  paper that  evidence
Accounts is, and has been for the four month period  preceding  the date hereof,
located at the places specified in Schedule IV annexed hereto. No Grantor has in
the past done, and does not now do, business under any other name (including any
trade-name or fictitious business name).

            (h) Delivery of Certain Collateral.  All notes and other instruments
(excluding  checks)  comprising  any and  all  items  of  Collateral  have  been
delivered  to Secured  Party duly  endorsed  and  accompanied  by duly  executed
instruments of transfer or assignment in blank.

            (i)  Perfection.  This  Agreement,  together  with the filing of all
necessary financing statements,  creates a valid and perfected security interest
in the  Collateral,  securing  the payment of the Secured  Obligations,  and all
filings and other  actions  necessary  or  desirable to perfect and protect such
security  interest have been duly made or taken or  appropriate  documents  have
been delivered to Secured Party.

            (j) Authorizations.  Other than the consent of the Bank to the grant
of the  security  interest  created  hereby,  no  consent  of any  Person and no
authorization, approval or other action by, and no notice to or filing with, any
governmental  authority or regulatory  body or other third party is required (i)
for the grant by such Grantor of the  assignment and security  interest  granted
hereunder,  for the pledge by such Grantor of the Collateral  pursuant hereto or
for the  execution,  delivery or  performance of this Agreement by such Grantor,
(ii) for the perfection or  maintenance  of the pledge,  assignment and security
interest created hereunder (including the second priority nature of such pledge,
assignment  or  security  interest),  except  for the  filing of  financing  and
continuation statements under the UCC, which financing statements have been duly
filed and are effective, under applicable law, and recordings of fixture filings
and recordings with the Patent and Trademark  Office and the Copyright Office to
perfect the security  interest granted to Secured Party herein, or (iii) for the
exercise by Secured  Party of its voting or other  rights  provided  for in this
Agreement  or the  remedies  in  respect  of the  Collateral  pursuant  to  this
Agreement.

            (k) Corporate Power; Legal Right; Valid and Binding Obligation. Such
Grantor has the corporate power and authority and the legal right to execute and
deliver,  to perform its obligations  under, and to grant the security interests
in the  Collateral  pursuant  to,  this  Agreement  and has taken all  necessary
corporate  action to authorize its execution,  delivery and  performance of, and
grant of the security  interests in the Collateral  pursuant to, this Agreement.
This Agreement constitutes a legal, valid and binding obligation of such Grantor
enforceable  in  accordance  with its  terms,  except as  enforceability  may be
limited by bankruptcy,  insolvency,  reorganization,  moratorium or similar laws
affecting the enforcement of creditors' rights generally and by the availability
of  equitable  remedies.  Such  Grantor  is the sole owner of, and has valid and
legal title to, all of the Collateral,  free and clear of any Liens,  other than
Liens created hereby and by the Bank Security Agreement.

            (l)  Other  Information.  All  information  heretofore,   herein  or
hereafter supplied to Secured Party by or on behalf of such Grantor with respect
to the Collateral is accurate and complete in all material respects.

                                       8
<PAGE>

            6. Further  Assurances;  New  Patents,  Patent  Rights,  Trademarks,
Trademark Registrations, Trademark Rights, Applications and Copyrights.

            (a) Each  Grantor  agrees that from time to time,  at the expense of
such  Grantor,  such  Grantor  will  promptly  execute  and  deliver all further
instruments and documents,  and take all further action,  that may be necessary,
or that Secured Party may request,  in order to perfect and protect any security
interest or conditional  assignment granted or purported to be granted hereby or
to enable  Secured  Party to  exercise  and  enforce  its  rights  and  remedies
hereunder with respect to any Collateral. Without limiting the generality of the
foregoing,  each Grantor will: (i) mark conspicuously each item of chattel paper
included in the Accounts,  each Related  Contract and, at the request of Secured
Party, each of its records pertaining to the Collateral,  with a legend, in form
and substance satisfactory to Secured Party,  indicating that such Collateral is
subject to the security interest granted hereby,  (ii) at the request of Secured
Party,  deliver and pledge to Secured Party  hereunder all promissory  notes and
other instruments  (including  checks) and all original  counterparts of chattel
paper  constituting  Collateral,  duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance satisfactory to
Secured Party, (iii) execute and file such financing or continuation statements,
or  amendments  thereto,  and  such  other  instruments  or  notices,  as may be
necessary or desirable, or as Secured Party may request, in order to perfect and
preserve the security interests granted or purported to be granted hereby,  (iv)
at any reasonable time, upon request by Secured Party, exhibit the Collateral to
and allow  inspection of the Collateral by Secured Party, or Persons  designated
by Secured Party, and (v) at Secured Party's  request,  appear in and defend any
action or proceeding that could  reasonably be expected to adversely affect such
Grantor's  title to or Secured Party's  security  interest in all or any part of
the Collateral.

            (b) Each Grantor hereby authorizes Secured Party to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral  without the signature of such Grantor.  Each Grantor
agrees that a carbon, photographic or other reproduction of this Agreement or of
a financing  statement signed by such Grantor shall be sufficient as a financing
statement   and  may  be  filed  as  a  financing   statement  in  any  and  all
jurisdictions.

            (c) Each  Grantor  will  furnish to Secured  Party from time to time
statements and schedules  further  identifying and describing the Collateral and
such other  reports  in  connection  with the  Collateral  as Secured  Party may
reasonably request, all in reasonable detail.

            (d) If  any  Grantor  shall  hereafter  obtain  rights  to  any  new
Trademarks,  Trademark Registrations,  Trademark Rights,  patentable inventions,
become  entitled  to the  benefit  of any  patent  application  or patent or any
reissue, division,  continuation,  renewal, extension or continuation-in-part of
any  Patent or any  improvement  or any  Patent,  any new works  protectable  by
Copyright,  or become  entitled  to the benefit of any  Copyright  registration,
application for Copyright registration or renewal or extension of any Copyright,
the provisions of this Agreement shall automatically apply thereto. Each Grantor
shall  promptly  notify  Secured  Party  in  writing  of any  rights  to any new
Trademarks  or Trademark  Rights  acquired by such Grantor after the date hereof
and  of  any  Trademark  Registrations  issued  or  applications  for  Trademark
Registration  or any Patent made after the date  hereof.  Concurrently  with the
filing of an application for any Patent or Trademark or Copyright  registration,
such  Grantor  shall  execute,

                                       9
<PAGE>

deliver and record in all places where this Agreement is recorded an appropriate
Security   Agreement,   substantially  in  the  form  hereof,  with  appropriate
insertions,  or an amendment to this Agreement, in form and substance reasonably
satisfactory  to Secured  Party,  pursuant to which such  Grantor  shall grant a
security  interest and  conditional  assignment to the extent of its interest in
such Patent or Trademark or Copyright registration as provided herein to Secured
Party unless so doing would,  in the  commercially  reasonable  judgment of such
Grantor,  after due  inquiry,  result in the grant of a Patent or  Trademark  or
Copyright registration in the name of Secured Party, in which event such Grantor
shall give written notice to Secured Party as soon as reasonably practicable and
the filing shall  instead be undertaken  as soon as  practicable  but in no case
later  than  immediately  following  the  grant of the  Trademark  or  Copyright
registration, as the case may be, or Patent.

            7. Certain Covenants of Each Grantor. Each Grantor shall:

            (a) not use or permit any  Collateral to be used by its employees or
its affiliates  unlawfully or in violation of any provision of this Agreement or
any  applicable  statute,  regulation  or  ordinance  or any policy of insurance
covering the Collateral;

            (b)  notify  Secured  Party of any  change in such  Grantor's  name,
identity or corporate structure within 15 days of such change;

            (c) give Secured Party 30 days' prior  written  notice of any change
in such Grantor's chief place of business,  chief executive  office or residence
or the office where such Grantor keeps its records  regarding the Accounts,  all
originals of all chattel paper that evidence Accounts and the IP Collateral;

            (d) if Secured  Party gives value to enable such  Grantor to acquire
rights in or the use of any Collateral, use such value for such purposes;

            (e) pay promptly when due all property and other taxes,  assessments
and  governmental  charges or levies  imposed  upon,  and all claims  (including
claims for labor, materials and supplies) against, the Collateral, except to the
extent the validity thereof is being contested in good faith; provided that such
Grantor  shall in any  event pay such  taxes,  assessments,  charges,  levies or
claims not later than five days prior to the date of any proposed sale under any
judgment, writ or warrant of attachment entered or filed against such Grantor or
any of the Collateral as a result of the failure to make such payment;

            (f) diligently keep reasonable records respecting the Collateral and
at  all  times  keep  at  least  one  complete  set of  its  records  concerning
substantially  all  of  the  Patents,  Patent  Rights,   Trademarks,   Trademark
Registrations  and Trademark  Rights at its chief executive  office or principal
place of business;

            (g) not permit the  inclusion  in any contract to which it becomes a
party of any  provision  that could or might in any way  impair or  prevent  the
creation of a security  interest in, or the assignment of, such Grantor's rights
and interests in any property  included  within the  definitions of any Patents,
Patent  Rights,  Trademarks,  Trademark  Registrations,   Trademark  Rights  and
Associated Goodwill acquired under such contracts;

                                       10
<PAGE>

            (h) take all steps necessary in its reasonably  business judgment to
protect the secrecy of all trade  secrets  relating to the products and services
sold or  delivered  under or in  connection  with the  Patents,  Patent  Rights,
Trademarks  and  Trademark  Rights,   including  entering  into  confidentiality
agreements  with  employees  and  labeling  and  restricting  access  to  secret
information and documents;

            (i) use proper  statutory  notice in connection with its use of each
of the Patents, Patent Rights,  Trademarks,  Trademark Registrations,  Trademark
Rights and Copyrights;

            (j) use  standards of high quality  consistent  with such  Grantor's
past  practices in the  manufacture,  sale and delivery of products and services
sold  or  delivered  under  or in  connection  with  the  Trademarks,  Trademark
Registrations and Trademark Rights,  including, to the extent applicable, in the
operation  and  maintenance  of  its  retail  stores  and  other   merchandising
operations; and

            (k) upon any officer of such Grantor  obtaining  knowledge  thereof,
promptly  notify Secured Party in writing of any event that could  reasonably be
expected to materially  and adversely  affect the value of the Collateral or any
portion thereof,  the ability of such Grantor or Secured Party to dispose of the
Collateral  or any  material  portion  thereof,  or the rights and  remedies  of
Secured  Party in  relation  thereto,  including  the levy of any legal  process
against the Collateral or any portion thereof.

            8. Special  Covenants With Respect to Equipment and Inventory.  Each
Grantor shall:

            (a)  keep  the  Equipment  and  Inventory  at  the  places  therefor
specified on Schedule IV annexed  hereto or, upon 30 days' prior written  notice
to Secured Party,  at such other places in  jurisdictions  where all action that
may be necessary or desirable,  or that Secured  Party may request,  in order to
perfect and protect any  security  interest  granted or  purported to be granted
hereby,  or to enable  Secured  Party to  exercise  and  enforce  its rights and
remedies hereunder, with respect to such Equipment and Inventory shall have been
taken;

            (b) cause the Equipment to be  maintained  and preserved in the same
condition,  repair  and  working  order  as when  new,  ordinary  wear  and tear
excepted,  and in  accordance  with such  Grantor's  past  practices,  and shall
forthwith  make  or  cause  to be  made  all  repairs,  replacements  and  other
improvements  in  connection  therewith  that are necessary or desirable to such
end. Each Grantor shall promptly furnish to Secured Party a statement respecting
any  material  loss or  material  damage  to any of the  Equipment  in excess of
$20,000;

            (c) keep correct and accurate  records of the  Inventory,  itemizing
and  describing  the kind,  type and quantity of Inventory,  such Grantor's cost
therefor and (where applicable) the current list prices for the Inventory;

            (d) if any  Inventory  is in  possession  or  control of any of such
Grantor's  agents  or  processors,  if the  aggregate  book  value  of all  such
Inventory exceeds $20,000,  and in any event upon the occurrence of a default or
an event of default  under the Note (an "Event of Default"  for purposes of this
Agreement),  instruct such agent or processor to hold all such Inventory for the
account of Secured Party and subject to the instructions of Secured Party; and

                                       11
<PAGE>

            (e)  promptly  upon the issuance and delivery to such Grantor of any
Negotiable  Document  of Title,  deliver  such  Negotiable  Document of Title to
Secured Party.

            9.  Insurance.  Each Grantor  shall,  at its own  expense,  maintain
insurance  with  respect to the  Equipment  and  Inventory  in  accordance  with
commercially  sound  business  practices for similar  companies in the Company's
industry.

            10. Special Covenants With Respect to the Assigned Agreements.  Upon
the occurrence and during the continuation of an Event of Default,  each Grantor
agrees that all  payments due or to become due under or in  connection  with the
Assigned  Agreements  shall be made directly to Secured Party at its address set
forth in Section 23 if Secured  Party so requests  and that it will  promptly so
instruct the parties with whom such Grantor has entered the Assigned Agreements.

            11.   Special   Covenants  With  Respect  to  Accounts  and  Related
Contracts.

            (a) Each  Grantor  shall keep its chief place of business  and chief
executive  office  and the  office  where it keeps its  records  concerning  the
Accounts and Related  Contracts,  and all  originals  of all chattel  paper that
evidence  Accounts,  at the location  therefor  specified on Schedule IV annexed
hereto or, upon 30 days' prior written  notice to Secured  Party,  at such other
location in a jurisdiction  where all action that may be necessary or desirable,
or that Secured Party may request,  in order to perfect and protect any security
interest  granted or purported to be granted hereby,  or to enable Secured Party
to exercise and enforce its rights and remedies hereunder,  with respect to such
Accounts and Related Contracts shall have been taken. Each Grantor will hold and
preserve  such  records and chattel  paper and will  permit  representatives  of
Secured  Party at any time  during  normal  business  hours to inspect  and make
abstracts from such records and chattel paper, and each Grantor agrees to render
to Secured Party,  at such  Grantor's cost and expense,  such clerical and other
assistance as may be reasonably requested with regard thereto. Promptly upon the
request of Secured  Party,  such Grantor shall deliver to Secured Party complete
and correct copies of each Related Contract.

            (b)  Such  Grantor  shall  maintain  (i)  complete  records  of each
Account,  including  records  of all  payments  received,  credits  granted  and
merchandise returned, and (ii) all documentation relating thereto.

            (c)  Except as  otherwise  provided  in this  subsection  (c),  each
Grantor  shall  continue to collect,  at its own expense,  all amounts due or to
become  due to such  Grantor  under  the  Accounts  and  Related  Contracts.  In
connection  with  such  collections,  each  Grantor  may  take  (and,  upon  the
occurrence and during the continuance of an Event of Default, at Secured Party's
direction,  shall  take) such action as such  Grantor or Secured  Party may deem
necessary  or advisable  to enforce  collection  of amounts due or to become due
under the Accounts;  provided,  however, that Secured Party shall have the right
at any time,  upon the  occurrence  and during the  continuation  of an Event of
Default and upon written  notice to such  Grantor of its  intention to do so, to
notify the account  debtors or obligors  under any Accounts of the assignment of
such Accounts to Secured Party and to direct such account debtors or obligors to
make  payment of all  amounts  due or to become due to such  Grantor  thereunder
directly  to Secured  Party,  to notify  each  Person  maintaining  a lockbox or
similar arrangement to which account debtors or obligors

                                       12
<PAGE>

under any  Accounts  have been  directed  to make  payment to remit all  amounts
representing  collections  on checks and other  payment  items from time to time
sent to or deposited in such  lockbox or other  arrangement  directly to Secured
Party and,  upon such  notification  and,  at the  expense of such  Grantor,  to
enforce collection of any such Accounts and to adjust,  settle or compromise the
amount or payment  thereof,  in the same  manner and to the same  extent as such
Grantor  might have done.  After receipt by a Grantor of the notice from Secured
Party referred to in the proviso to the preceding sentence,  (i) all amounts and
proceeds  (including checks and other  instruments)  received by such Grantor in
respect of the Accounts and the Related Contracts shall be received in trust for
the benefit of Secured Party hereunder,  shall be segregated from other funds of
such Grantor and shall be forthwith  paid over or delivered to Secured  Party in
the same form as so received (with any necessary endorsement) to be held as cash
collateral  and applied as  provided  by Section  19, and (ii) no Grantor  shall
adjust,  settle or compromise  the amount or payment of any Account,  or release
wholly or partly any account debtor or obligor  thereof,  or allow any credit or
discount thereon.

            12. Special Covenants With Respect to Patent  Registration,  Renewal
and Litigation.

            (a) Each Grantor shall make all applications for the registration of
its Patents on any existing or future  unregistered but patentable works that in
its commercially reasonable judgment are material to its business and do any and
all acts which are  reasonably  necessary or  desirable  to preserve,  renew and
maintain  all rights in all Patents and Patent  Rights that in its  commercially
reasonable  judgment are  material to its  business.  Any  expenses  incurred in
connection  therewith shall be borne solely by such Grantor.  Such Grantor shall
not  abandon  any  Patents  that in its  commercially  reasonable  judgment  are
material to its business.

            (b) Except as provided in this  Agreement,  each Grantor  shall have
the right and obligation to commence and  diligently  prosecute in its own name,
as real party in  interest,  for its own  benefit and at its own  expense,  such
suits,  proceedings or other actions for  infringement or other damage as are in
its  reasonable  business  judgment  necessary to protect the  Collateral.  Such
Grantor  shall  provide to Secured Party any  information  with respect  thereto
requested  by Secured  Party.  Secured  Party  shall  provide at such  Grantor's
expense  all and  necessary  cooperation  in  connection  with  any  such  suit,
proceeding or action including joining as a necessary party.

            (c) Each  Grantor  shall  promptly,  following  its  becoming  aware
thereof,   notify  Secured  Party  of  the   institution   of,  or  any  adverse
determination  in, any  proceeding  in the United  States  Patent and  Trademark
Office or any United States or foreign court or regarding such  Grantor's  claim
of ownership in any of the Patents, its right to register the same, or its right
to keep and maintain such registration.

            13. Patent Litigation After Default.  Upon the occurrence and during
the  continuance of an Event of Default,  Secured Party shall have the right but
shall in no way be  obligated  to bring suit in the name of a Grantor or Secured
Party to enforce any Patent,  Patent Right and any license thereunder,  and such
Grantor  shall,  the  request of Secured  Party,  do any and all lawful acts and
execute any and all  documents  reasonably  required by Secured  Party in aid of
such  enforcement  and such Grantor shall promptly,  upon demand,  reimburse and

                                       13
<PAGE>

indemnify  Secured  Party.  To the extent that Secured  Party shall elect not to
bring suit to enforce any Patent,  Patent Right or any license thereunder,  each
Grantor  agrees  to use  all  reasonable  measures,  whether  by  action,  suit,
proceeding or otherwise,  to prevent the  infringement  of any of the Patents by
others and for that purpose  agrees to diligently  maintain any action,  suit or
proceeding   against  any  Person  so  infringing   necessary  to  prevent  such
infringement.

            14. Transfers and Other Liens. No Grantor shall:

            (a) sell,  assign (by  operation of law or  otherwise)  or otherwise
dispose of any of the Collateral; or

            (b) except for the security  interest  created by this Agreement and
the Bank  Security  Agreement,  create  or suffer to exist any Lien upon or with
respect to any of the Collateral to secure the indebtedness or other obligations
of any Person.

            15. Secured Party  Appointed  Attorney-in-Fact.  Each Grantor hereby
irrevocably appoints Secured Party as such Grantor's attorney-in-fact, with full
authority  in the  place  and  stead  of such  Grantor  and in the  name of such
Grantor,  Secured  Party or  otherwise,  from  time to time in  Secured  Party's
discretion to take any action and to execute any  instrument  that Secured Party
may deem  necessary or advisable to accomplish  the purposes of this  Agreement,
including:

            (a) to obtain and adjust insurance required to be maintained by such
Grantor or paid to Secured Party pursuant to Section 9;

            (b) to ask for, demand, collect, sue for, recover, compound, receive
and give  acquittance  and receipts for moneys due and to become due under or in
respect of any of the Collateral;

            (c) to receive, endorse and collect any drafts or other instruments,
documents and chattel paper in connection with clauses (a) and (b) above;

            (d) to endorse such Grantor's name on all  applications,  documents,
papers and instruments  necessary for Secured Party in the use or maintenance of
the Collateral;

            (e) to  file  any  claims  or  take  any  action  or  institute  any
proceedings  that  Secured  Party  may  deem  necessary  or  desirable  for  the
collection  of any of the  Collateral  or  otherwise  to  enforce  the rights of
Secured Party with respect to any of the Collateral;

            (f) to pay or discharge  taxes or Liens (other than Liens  permitted
under  this  Agreement)  levied  or  placed  upon  or  threatened   against  the
Collateral,  the  legality or validity  thereof  and the  amounts  necessary  to
discharge the same to be determined by Secured Party in its sole discretion, any
such  payments made by Secured  Party to become  obligations  of such Grantor to
Secured Party, due and payable immediately without demand;

            (g) to sign and  endorse  any  invoices,  freight or express  bills,
bills  of  lading,  storage  or  warehouse  receipts,  drafts  against  debtors,
assignments,  verifications  and notices in  connection  with Accounts and other
documents relating to the Collateral; and

                                       14
<PAGE>

            (h) upon the occurrence and during the  continuation  of an Event of
Default,  (i)  to  execute  and  deliver  any of the  assignments  or  documents
requested by Secured Party pursuant to Section 18(b),  (ii) to grant or issue an
exclusive or  non-exclusive  license to the IP Collateral or any portion thereof
to any Person, and (iii) otherwise generally to sell, transfer, pledge, make any
agreement  with respect to or otherwise deal with any of the Collateral as fully
and  completely as though  Secured Party were the absolute owner thereof for all
purposes,  and to do, at Secured Party's option and such Grantor's  expense,  at
any time or from time to time,  all acts and things  that  Secured  Party  deems
necessary  to  protect,  preserve  or realize  upon the  Collateral  and Secured
Party's  security  interest  therein  in  order to  effect  the  intent  of this
Agreement, all as fully and effectively as such Grantor might do.

            16.  Secured Party May Perform.  If any Grantor fails to perform any
agreement  contained  herein,   Secured  Party  may  itself  perform,  or  cause
performance  of, such  agreement,  and the expenses of Secured Party incurred in
connection therewith shall be payable by such Grantor.

            17.  Standard  of  Care.  The  powers  conferred  on  Secured  Party
hereunder  are solely to protect its  interest in the  Collateral  and shall not
impose any duty upon it to exercise any such powers.  Except for the exercise of
reasonable  care in the  custody of any  Collateral  in its  possession  and the
accounting  for moneys  actually  received by it hereunder,  Secured Party shall
have no duty as to any Collateral or as to the taking of any necessary  steps to
preserve  rights  against  prior  parties or any other rights  pertaining to any
Collateral.  Secured Party shall be deemed to have exercised  reasonable care in
the custody and  preservation of Collateral in its possession if such Collateral
is accorded  treatment  substantially  equal to that which Secured Party accords
its own property.

            18.  Remedies.  If any Event of Default  shall have  occurred and be
continuing:

            (a)  Secured  Party may  exercise in respect of the  Collateral,  in
addition  to all other  rights and  remedies  provided  for herein or  otherwise
available to it, all the rights and remedies of a secured party on default under
the  Uniform  Commercial  Code as in effect in any  relevant  jurisdiction  (the
"Code") (whether or not the Code applies to the affected  Collateral),  and also
may (i) require each Grantor to, and each Grantor  hereby agrees that it will at
its expense and upon request of Secured Party forthwith, assemble all or part of
the  Collateral  as directed by Secured  Party and make it  available to Secured
Party at a place to be designated by Secured Party that is reasonably convenient
to both parties,  (ii) enter onto the property  where any  Collateral is located
and take possession thereof with or without judicial process, (iii) prior to the
disposition  of the  Collateral,  store,  process,  repair  or  recondition  the
Collateral or otherwise  prepare the Collateral for disposition in any manner to
the  extent  Secured  Party  deems  appropriate,  (iv) take  possession  of such
Grantor's  premises or place custodians in exclusive control thereof,  remain on
such  premises  and use the same  and any of such  Grantor's  equipment  for the
purpose of completing any work in process,  taking any actions  described in the
preceding clause (iii) and collecting any Secured  Obligation,  (v) exercise any
and all rights and  remedies of such  Grantor  under or in  connection  with the
contracts  related to the IP Collateral or any Assigned  Agreements or otherwise
in respect of the IP Collateral, including any and all rights of such Grantor to
demand or otherwise  require  payment of any amount under, or performance of any
provision  of, such  contracts  or such  Assigned  Agreements,  and (vi) without
notice except as

                                       15
<PAGE>

specified below,  sell the Collateral or any part thereof in one or more parcels
at public or private sale, at any of Secured Party's  offices or elsewhere,  for
cash, on credit or for future delivery,  at such time or times and at such price
or prices  and upon such  other  terms as  Secured  Party may deem  commercially
reasonable.  Secured Party may be the purchaser of any or all of the  Collateral
at any such sale and Secured Party shall be entitled, for the purpose of bidding
and making settlement or payment of the purchase price for all or any portion of
the Collateral sold at any such public sale, to use and apply any of the Secured
Obligations  as a credit on account  of the  purchase  price for any  Collateral
payable by Secured  Party at such sale.  Each  purchaser  at any such sale shall
hold the property  sold  absolutely  free from any claim or right on the part of
any  Grantor,  and each  Grantor  hereby  waives  (to the  extent  permitted  by
applicable law) all rights of redemption, stay and/or appraisal which it now has
or may at any time in the  future  have  under  any rule of law or  statute  now
existing or hereafter enacted. Each Grantor agrees that, to the extent notice of
sale shall be required by law, at least ten days'  notice to such Grantor of the
time and place of any public sale or the time after which any private sale is to
be made shall  constitute  reasonable  notification.  Secured Party shall not be
obligated  to make any sale of  Collateral  regardless  of notice of sale having
been given.  Secured  Party may adjourn any public or private  sale from time to
time by announcement  at the time and place fixed  therefor,  and such sale may,
without  further  notice,  be made at the  time  and  place  to  which it was so
adjourned.  Each Grantor hereby waives any claims against  Secured Party arising
by reason of the fact that the price at which any  Collateral may have been sold
at such a private sale was less than the price which might have been obtained at
a public sale,  even if Secured Party accepts the first offer  received and does
not offer such Collateral to more than one offeree.  If the proceeds of any sale
or other  disposition of the Collateral are  insufficient to pay all the Secured
Obligations, each Grantor shall be liable for the deficiency and the fees of any
attorneys employed by Secured Party to collect such deficiency.

            (b) Upon written  demand from  Secured  Party,  each  Grantor  shall
execute  and  deliver to  Secured  Party an  assignment  or  assignments  of the
Patents, Patent Rights, Trademarks,  Trademark Registrations,  Trademark Rights,
the Associated Goodwill and Copyrights and such other documents as are necessary
or appropriate to carry out the intent and purposes of this Agreement;  provided
that the  failure of any  Grantor to comply  with such demand will not impair or
affect the validity of the conditional  assignment  effected by Section 2 or its
effectiveness  upon  notice by  Secured  Party as  specified  in Section 2. Such
Grantor  agrees that such an assignment  (including the  conditional  assignment
effected by Section 2) and/or  recording  shall be applied to reduce the Secured
Obligations  outstanding only to the extent that any Secured Party receives cash
proceeds in respect of the sale of, or other realization upon, the Collateral.

            19. Application of Proceeds.  Except as expressly provided elsewhere
in this Agreement, all proceeds received by Secured Party in respect of any sale
of, collection from, or other realization upon all or any part of the Collateral
shall be applied at Secured Party's discretion.

            20.  Continuing   Security  Interest  and  Conditional   Assignment;
Transfer of Loans. This Agreement shall create a continuing security interest in
the  Collateral  as  well  as a  continuing  conditional  assignment  of  the IP
Collateral  and shall (a) remain in full force and effect  until the  payment in
full of the Secured Obligations and the termination and release of the Guaranty,
(b) be binding upon each Grantor,  its  successors  and assigns,  and (c) inure,
together

                                       16
<PAGE>

with the rights and  remedies  of Secured  Party  hereunder,  to the  benefit of
Secured Party and its successors,  transferees and assigns.  Upon the payment in
full  of  all  Secured  Obligations,   the  security  interest  and  conditional
assignment granted hereby shall terminate and all rights to the Collateral shall
revert to the relevant Grantor. Upon any such termination Secured Party will, at
the Grantor's expense, execute and deliver to the Grantors such documents as the
Grantors shall reasonably request to evidence such termination.

            21. Indemnity and Expenses.

            (a) Each Grantor agrees  jointly and severally to indemnify  Secured
Party and its directors, officers, employees and agents from and against any and
all claims,  losses and  liabilities  in any way relating to,  growing out of or
resulting  from  this  Agreement  and  the  transactions   contemplated   hereby
(including  enforcement  of this  Agreement),  except to the extent such claims,
losses or  liabilities  result solely from Secured  Party's gross  negligence or
willful misconduct as finally determined by a court of competent jurisdiction.

            (b) Each Grantor  shall pay to Secured  Party upon demand the amount
of any and all  costs  and  expenses,  including  the fees and  expenses  of its
counsel  and of any  experts  and  agents,  that  Secured  Party  may  incur  in
connection  with the  failure by such  Grantor to perform or observe  any of the
provisions hereof.

            22.  Amendments;  Etc. No amendment,  modification,  termination  or
waiver of any  provision of this  Agreement,  and no consent to any departure by
any Grantor therefrom,  shall in any event be effective unless the same shall be
in writing and signed by Secured Party and, in the case of any such amendment or
modification,  by the  Grantors.  Any such waiver or consent  shall be effective
only in the  specific  instance  and for the  specific  purpose for which it was
given.

            23. Notices.  Any notice or other  communication  herein required or
permitted to be given shall be in writing and may be personally served,  telexed
or sent by  telefacsimile  or United States mail or courier service and shall be
deemed to have been given when delivered in person or by courier  service,  upon
receipt of telefacsimile or telex, or three business days after depositing it in
the United  States mail with  postage  prepaid  and  properly  addressed  to the
address of each party listed below:

            If to Secured Party:

            Avv.  Giacomo Torrente
            c/o 51 West 69th Street
            Apt. 5D
            New York, New York 10023
            Telecopy Number:  212-208-0944

                                       17
<PAGE>

            If to any Grantor:

            AmeriCom USA, Inc.
            5900 Hollis St. R-1
            Emeryville, California 94608
            Attention:  Thomas Hopfensperger and
                          Carol Fullam
            Telecopy Number:

            24.  Failure or  Indulgence  Not  Waiver;  Remedies  Cumulative.  No
failure  or delay on the part of  Secured  Party in the  exercise  of any power,
right or privilege  hereunder shall impair such power,  right or privilege or be
construed to be a waiver of any default or acquiescence  therein,  nor shall any
single or partial  exercise of any such power,  right or privilege  preclude any
other or further exercise thereof or of any other power, right or privilege. All
rights and remedies  existing  under this  Agreement are  cumulative to, and not
exclusive of, any rights or remedies otherwise available.

            25. Severability.  In case any provision in or obligation under this
Agreement shall be invalid,  illegal or unenforceable in any  jurisdiction,  the
validity,   legality  and   enforceability   of  the  remaining   provisions  or
obligations, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby.

            26. Headings.  Section and subsection headings in this Agreement are
included  herein for  convenience  of reference  only and shall not constitute a
part of this Agreement for any other purpose or be given any substantive effect.

            27. Governing Law; Terms.

            (a) THIS  AGREEMENT  AND THE RIGHTS AND  OBLIGATIONS  OF THE PARTIES
HEREUNDER  SHALL  BE  GOVERNED  BY,  AND  SHALL BE  CONSTRUED  AND  ENFORCED  IN
ACCORDANCE  WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING  SECTION
5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK),  WITHOUT REGARD
TO CONFLICTS  OF LAWS  PRINCIPLES,  EXCEPT TO THE EXTENT THAT THE CODE  PROVIDES
THAT THE PERFECTION OF THE SECURITY INTEREST  HEREUNDER,  OR REMEDIES HEREUNDER,
IN  RESPECT  OF  ANY  PARTICULAR  COLLATERAL  ARE  GOVERNED  BY  THE  LAWS  OF A
JURISDICTION OTHER THAN THE STATE OF NEW YORK.

            (b) Unless otherwise defined herein,  terms used in articles 8 and 9
of the  Uniform  Commercial  Code in the  State of New York are used  herein  as
therein defined.  As used in this Agreement,  the following terms shall have the
following definitions:

            "Lien" means any mortgage, lien, deed of trust, charge, pledge,
security interest or other encumbrance.

                                       18
<PAGE>

            "Person" means any individual, sole proprietorship, partnership,
limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or governmental agency.

            28.  Consent to  Jurisdiction  and Service of Process.  ALL JUDICIAL
PROCEEDINGS  BROUGHT  AGAINST  ANY  GRANTOR  ARISING  OUT OF OR RELATING TO THIS
AGREEMENT MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION
IN THE STATE OF NEW YORK,  AND BY EXECUTION AND DELIVERY OF THIS  AGREEMENT EACH
GRANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES,  GENERALLY AND
UNCONDITIONALLY,  THE  NONEXCLUSIVE  JURISDICTION  OF THE  AFORESAID  COURTS AND
WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY AGREES TO BE BOUND BY
ANY JUDGMENT  RENDERED  THEREBY IN CONNECTION WITH THIS AGREEMENT.  EACH GRANTOR
HEREBY  AGREES THAT  SERVICE OF ALL PROCESS IN ANY SUCH  PROCEEDING  IN ANY SUCH
COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED,  TO
SUCH GRANTOR AT ITS ADDRESS  PROVIDED IN SECTION 23, SUCH  SERVICE  BEING HEREBY
ACKNOWLEDGED  BY SUCH GRANTOR TO BE SUFFICIENT FOR PERSONAL  JURISDICTION IN ANY
ACTION AGAINST SUCH GRANTOR IN ANY SUCH COURT AND TO BE OTHERWISE  EFFECTIVE AND
BINDING SERVICE IN EVERY RESPECT. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF SECURED
PARTY TO BRING  PROCEEDINGS  AGAINST  ANY  GRANTOR  IN THE  COURTS  OF ANY OTHER
JURISDICTION.

            29.  Waiver of Jury Trial.  EACH  GRANTOR AND SECURED  PARTY  HEREBY
AGREE TO WAIVE THEIR RESPECTIVE  RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.  THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY
COURT AND THAT  RELATE TO THE  SUBJECT  MATTER  OF THIS  TRANSACTION,  INCLUDING
CONTRACT CLAIMS,  TORT CLAIMS,  BREACH OF DUTY CLAIMS,  AND ALL OTHER COMMON LAW
AND STATUTORY CLAIMS.  EACH GRANTOR AND SECURED PARTY EACH ACKNOWLEDGE THAT THIS
WAIVER IS A MATERIAL INDUCEMENT FOR SUCH GRANTOR AND SECURED PARTY TO ENTER INTO
A BUSINESS RELATIONSHIP, THAT SUCH GRANTOR AND SECURED PARTY HAVE ALREADY RELIED
ON THIS WAIVER IN ENTERING  INTO THIS  AGREEMENT  AND THAT EACH WILL CONTINUE TO
RELY ON THIS WAIVER IN THEIR RELATED FUTURE  DEALINGS.  EACH GRANTOR AND SECURED
PARTY FURTHER  WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS
LEGAL  COUNSEL,  AND THAT EACH KNOWINGLY AND  VOLUNTARILY  WAIVES ITS JURY TRIAL
RIGHTS FOLLOWING  CONSULTATION  WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
TO THIS AGREEMENT. IN THE EVENT OF LITIGATION,  THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

                                       19
<PAGE>

            30.  Counterparts.  This  Agreement  may be  executed in one or more
counterparts and by different parties hereto in separate  counterparts,  each of
which when so executed and delivered  shall be deemed an original,  but all such
counterparts  together  shall  constitute  but  one  and  the  same  instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single  counterpart so that all signature pages are physically  attached to
the same document.

                 [Remainder of page intentionally left blank]

                                       20
<PAGE>

            IN WITNESS WHEREOF, each Grantor and Secured Party have caused this
Agreement to be duly executed and delivered as of the date first written above.

                                    AMERICOM USA, INC., as a Grantor

                                    By:  /s/ Thomas J. Hopfensperger
                                         --------------------------------
                                         Name: Thomas J. Hopfensperger
                                         Title: President

                                    KIOSK SOFTWARE, INC., as a Grantor

                                    By: /s/ Thomas J. Hopfensperger
                                        -----------------------------------
                                        Name: Thomas J. Hopfensperger
                                        Title: Authorized Person

                                    By:  /s/ Giacomo Torrente
                                        -----------------------------------
                                          AVV. GIACOMO TORRENTE,
                                          as Secured Party

                                       21
<PAGE>

                                   SCHEDULE I

                                   TRADEMARKS

                                      NONE

                                       22
<PAGE>

                                   SCHEDULE II

                           FOREIGN PATENT APPLICATIONS

Serial Number                            Filing Date
-------------                            -----------

AmeriCom  USA, Inc.
--------  ---------

PCT/00/09663                             April 11, 2000

Kiosk Software, Inc.
--------------------

None

<PAGE>

                       PENDING U.S. PATENT APPLICATIONS

Serial Number                                 Filing Date
-------------                                 -----------

AmeriCom USA, Inc.

09/291,785                                   April 14, 1999

09/335,384                                   June 17, 1999

09/488,666                                   January 20, 2000

An application for Letters Patent of the United States to be assigned to
AmeriCom USA, Inc. with respect to the technology assigned to AmeriCom USA,
Inc. known as Virtual Object State Explication (VOSX).

Kiosk Software, Inc.

None

<PAGE>

                                  SCHEDULE III

                                 U.S. COPYRIGHTS

                                      NONE

<PAGE>

                                   SCHEDULE IV

                         PRINCIPAL PLACE OF BUSINESS;
                      LOCATIONS OF EQUIPMENT AND INVENTORY

Principal Place of Business and Chief Executive Office
------------------------------------------------------

AmeriCom USA, Inc.
------------------
5900 Hollis St. R-1
Emeryville, California 94608

Kiosk Software, Inc.
--------------------
5900 Hollis St. R-1
Emeryville, California 94608

Locations of Equipment and Inventory
------------------------------------

AmeriCom USA, Inc.
------------------
5900 Hollis St. R-1
Emeryville, California 94608

825 Buckley Road, Ste. B
San Luis Obispo, California 93401

124 S. Halcyon
Arroyo Grande, California 93420

Kiosk Software, Inc.
--------------------
5900 Hollis St. R-1
Emeryville, California 94608

825 Buckley Road, Ste. B
San Luis Obispo, California 93401

124 S. Halcyon
Arroyo Grande, California 93420

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