Document:

Exhibit 10.4

 

TRADEMARK
SECURITY AGREEMENT

 

EMRISE Corporation, a Delaware corporation, RO
Associates Incorporated, a California corporation and EMRISE Electronics
Corporation, a New Jersey corporation (collectively, “Grantor”), for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, grant to GVEC Resource IV Inc., a company organized and existing
under the laws of the British Virgin Islands, as agent for and representative
of (in such capacity herein called “Secured Party”) the financial
institutions (“Lenders”) party to that certain Credit Agreement, entered
into by and among the Grantor, Agent, and Lenders, dated as of November 30,
2007 ( the “Credit Agreement”), a continuing security interest in
the following property:

 

(i)            Each trademark, trademark
registration and trademark application listed on Schedule A hereto, and all of the goodwill of the business
connected with the use of, and symbolized by, each such trademark, trademark
registration and trademark application; and

 

(ii)           All proceeds of the foregoing, including without limitation
any claim by Grantor against third parties for damages (to the extent not
effectively prohibited by an applicable and legally enforceable license
agreement) by reason of past, present or future infringement of any trademark
or trademark registration listed in Schedule
A hereto or by reason of injury to the goodwill associated with any
such trademark or trademark registration or trademark license, in each case
together with the right to sue for and collect said damages;

 

to secure
performance of all Obligations of Grantor under the Credit Agreement and as set
out in that certain Security Agreement dated as of November 30, 2007, by and
among Grantor and Secured Party and others (the “Agreement”).

 

Grantor does hereby further acknowledge and affirm
that the rights and remedies of Secured Party with respect to the security
interest in the works of authorship, trademarks, trademark registrations and
recordings, and trademark applications made and granted hereby are more fully
set forth in the Agreement, the terms and provisions of which are incorporated
by reference herein as if fully set forth herein.

 

All terms defined in the Agreement, whether by
reference or otherwise, when used herein, shall have their respective meanings
set forth therein, unless the context requires otherwise.

 

1

 

IN WITNESS WHEREOF, Grantor has caused this Trademark Security
Agreement to be duly executed as of November 30, 2007.

 

 

	
   

  	
  GRANTOR:

  	
   

  
	
   

  	
   

  
	
   

  	
  EMRISE CORPORATION, a Delaware
  

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ D. JOHN DONOVAN

  	
   

  
	
   

  	
  Name:

  	
     D. JOHN DONOVAN

  	
   

  
	
   

  	
  Title: 

  	
   V.P. of Finance & Administration

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RO ASSOCIATES INCORPORATED,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ D. JOHN DONOVAN

  	
   

  
	
   

  	
  Name:

  	
     D. JOHN DONOVAN

  	
   

  
	
   

  	
  Title: 

  	
  Secretary & Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMRISE ELECTRONICS CORPORATION,
  

  a New Jersey corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ D. JOHN DONOVAN

  	
   

  
	
   

  	
  Name:

  	
     D. JOHN DONOVAN

  	
   

  
	
   

  	
  Title: 

  	
  Secretary & Treasurer

  	
   

  
						

 

2

 

	
   

  	
  ACCEPTED BY SECURED PARTY:

  	
   

  
	
   

  	
   

  
	
   

  	
  GVEC RESOURCE IV INC., as
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ ROBERT J. ANDERSON

  	
   

  
	
   

  	
  Name:

  	
     Robert J. Anderson

  	
   

  
	
   

  	
  Title: 

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ PETER PAUL MENDEL

  	
   

  
	
   

  	
  Name:

  	
     Peter Paul Mendel

  	
   

  
	
   

  	
  Title: 

  	
  Authorized Signatory

  	
   

  
						

 

3

 

Schedule
A to

 

TRADEMARK
SECURITY AGREEMENT

 

Trademarks

 

EMRISE Corporation

 

	
  Title

  	
   

  	
  Jurisdiction

  	
   

  	
  Serial
  

  Number

  	
   

  	
  Filing

  Date

  	
   

  	
  Status

  	
   

  	
  Registration
  

  Number

  	
   

  	
  Issue

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Australia

  	
   

  	
  1024618

  	
   

  	
  6/22/04

  	
   

  	
  Issued

  	
   

  	
  832836

  	
   

  	
  6/22/2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Hungary

  	
   

  	
  832836

  	
   

  	
  6/22/04

  	
   

  	
  Issued

  	
   

  	
  832836

  	
   

  	
  6/2/2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Ireland

  	
   

  	
  832836

  	
   

  	
  6/22/04

  	
   

  	
  Issued

  	
   

  	
  832836

  	
   

  	
  4/22/2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Israel

  	
   

  	
  173032

  	
   

  	
  6/27/04

  	
   

  	
  Issued

  	
   

  	
  173032

  	
   

  	
  10/9/2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  India

  	
   

  	
  1292840

  	
   

  	
  6/22/04

  	
   

  	
  Pending

  	
   

  	
  N/A

  	
   

  	
  6/28/2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Iran

  	
   

  	
  Z1231066

  	
   

  	
  6/22/04

  	
   

  	
  Issued

  	
   

  	
  832836

  	
   

  	
  6/22/2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Japan

  	
   

  	
  832836

  	
   

  	
  6/22/04

  	
   

  	
  Issued

  	
   

  	
  832836

  	
   

  	
  6/22/2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Singapore

  	
   

  	
  T04/17097E

  	
   

  	
  6/22/04

  	
   

  	
  Issued

  	
   

  	
  832836

  	
   

  	
  8/11/05

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Turkey

  	
   

  	
  832836

  	
   

  	
  6/22/04

  	
   

  	
  Issued

  	
   

  	
  832836

  	
   

  	
  2/25/2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  Taiwan

  	
   

  	
  01163599

  	
   

  	
  6/30/04

  	
   

  	
  Issued

  	
   

  	
  01163599

  	
   

  	
  7/16/2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  United Kingdom

  	
   

  	
   

  	
   

  	
  6/22/04

  	
   

  	
  Issued

  	
   

  	
  832836

  	
   

  	
  3/23/2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLP

  	
   

  	
  US

  	
   

  	
  78/346552

  	
   

  	
  12/30/03

  	
   

  	
  Issued

  	
   

  	
  2913348

  	
   

  	
  12/21/2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EMRISE

  	
   

  	
  Europe

  	
   

  	
  004496253

  	
   

  	
  6/17/05

  	
   

  	
  Registered

  	
   

  	
  004496253

  	
   

  	
  7/25/2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EMRISE

  	
   

  	
  Japan

  	
   

  	
  2005-109295

  	
   

  	
  11/21/05

  	
   

  	
  Pending

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EMRISE

  	
   

  	
  US

  	
   

  	
  78/636436

  	
   

  	
  5/24/05

  	
   

  	
  Pending

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

RO Associates
Incorporated:

 

	
  Mark

  	
   

  	
  Jurisdiction

  	
   

  	
  Serial
  Number

  	
   

  	
  Registration
  Number

  	
   

  	
  Issue
  Date

  
	
  QUATTROVERTER

  	
   

  	
  US

  	
   

  	
  78106259

  	
   

  	
  2708076

  	
   

  	
  4/15/2003

  
	
  SUPERVERTER

  	
   

  	
  US

  	
   

  	
  7673243

  	
   

  	
  2482111

  	
   

  	
  8/28/2001

  
	
  MEGAVERTER

  	
   

  	
  US

  	
   

  	
  75582640

  	
   

  	
  2281762

  	
   

  	
  9/28/1999

  
	
  UNIVERTER

  	
   

  	
  US

  	
   

  	
  75544651

  	
   

  	
  2281572

  	
   

  	
  9/28/1999

  
	
  u VERTER

  	
   

  	
  US

  	
   

  	
  74137284

  	
   

  	
  1694114

  	
   

  	
  6/16/1992

  
	
  NANOVERTER

  	
   

  	
  US

  	
   

  	
  74230586

  	
   

  	
  1951638

  	
   

  	
  1/23/1996

  
	
  PICOVERTER

  	
   

  	
  US

  	
   

  	
  74230585

  	
   

  	
  1914092

  	
   

  	
  8/22/1995

  
	
  MICROVERTER

  	
   

  	
  US

  	
   

  	
  74137282

  	
   

  	
  1711279

  	
   

  	
  9/1/1992

  

 

EMRISE Electronics
Corporation:

 

	
  Title

  	
   

  	
  Jurisdiction

  	
   

  	
  Serial
  

  Number

  	
   

  	
  Filing

  Date

  	
   

  	
  Status

  	
   

  	
  Registration
  

  Number

  	
   

  	
  Issue

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DIGITRAN

  	
   

  	
  European Community

  	
   

  	
  165498

  	
   

  	
  4/1/1996

  	
   

  	
  Registered

  	
   

  	
  165498

  	
   

  	
  1/20/1999

  	
   

  

 

4EXHIBIT
10.5

 

REVOLVER LOAN NOTE

 

	
  $7,000,000

  	
   

  	
  November 30, 2007

  

 

FOR VALUE RECEIVED, EMRISE CORPORATION, a Delaware corporation (“Parent”), EMRISE
ELECTRONICS CORPORATION,  a
New Jersey corporation (“EEC”), CXR LARUS CORPORATION, a Delaware corporation (“CXR”) and RO
ASSOCIATES INCORPORATED, a California corporation (“RO”),
(each of Parent, EEC, CXR and RO is referred to herein individually as a
“Borrower” and, collectively, as
the “Borrowers”), hereby jointly
and severally promise to pay GVEC RESOURCE IV
INC., a company organized under the laws of the British Virgin
Islands or its registered assigns (“Payee”),
on or before November 30, 2010, the lesser of (a) SEVEN MILLION DOLLARS
AND ZERO CENTS ($7,000,000.00), and (b) the unpaid principal amount of the
Advances made by Payee to the Borrowers under the Credit Agreement referred to
below, all as more particularly set forth herein. The principal hereof shall be
due and payable as provided in the Credit Agreement referred to below.

 

Borrowers also hereby jointly and severally
promise to pay interest on the unpaid principal amount hereof, from the date
hereof until paid in full, at the rates and at the times which shall be
determined in accordance with the provisions of that certain Credit Agreement,
dated as of November 30, 2007 (as amended, restated, replaced, supplemented or
otherwise modified from time to time, the “Credit
Agreement”; the terms defined therein and not otherwise defined
herein being used herein as therein defined), by and among Borrowers, the Lenders that are signatories thereto,
and Payee, as Arranger and Agent.

 

This
Revolver Loan Note is issued pursuant to and entitled to the benefits of the
Credit Agreement, to which reference is hereby made for a more complete
statement of the terms and conditions under which the Advances evidenced hereby
were made and are to be repaid.

 

All
payments of principal and interest in respect of this Revolver Loan Note shall
be made in lawful money of the United States of America in same day funds to Agent’s
Account for the account of the Lender Group or at such other place as shall be
designated in writing for such purpose in accordance with the terms of the
Credit Agreement. Payee hereby agrees, by its acceptance hereof, that before
disposing of this Revolver Loan Note or any part hereof it will make a notation
hereon of all principal payments previously made hereunder and of the date to
which interest hereon has been paid; provided, the failure to make a
notation of any payment made on this Revolver Loan Note shall not limit or
otherwise affect the obligations of the Borrowers hereunder with respect to
payments of principal of or interest on this Revolver Loan Note.

 

This
Revolver Loan Note is subject to mandatory prepayment and to prepayment at the
option of Borrowers, each as provided in the Credit Agreement.

 

THIS
REVOLVER LOAN NOTE AND THE RIGHTS AND OBLIGATIONS OF THE BORROWERS AND PAYEE
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF 

 

1

 

THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

 

Upon
the occurrence of an Event of Default, the unpaid balance of the principal
amount of this Revolver Loan Note, together with all accrued and unpaid
interest thereon, may become, or may be declared to be, due and payable in the
manner, upon the conditions and with the effect provided in the Credit
Agreement.

 

The
terms of this Revolver Loan Note are subject to amendment only in the manner
provided in the Credit Agreement.

 

No
reference herein to the Credit Agreement and no provision of this Revolver Loan
Note or the Credit Agreement shall alter or impair the obligations of
Borrowers, which are absolute and unconditional, to pay the principal of and
interest on this Revolver Loan Note at the place, at the respective times, and
in the currency herein prescribed.

 

Borrowers
promise,  jointly and severally, to
pay all costs and expenses, including reasonable attorneys’ fees, all as
provided in the Credit Agreement, incurred in the collection and enforcement of
this Revolver Loan Note. Borrowers and any endorsers of this Revolver Loan Note
hereby consent to renewals and extensions of time at or after the maturity
hereof, without notice, and hereby waive diligence, presentment, protest,
demand notice of every kind and, to the full extent permitted by law, the right
to plead any statute of limitations as a defense to any demand hereunder.

 

[Signature Page Follows]

 

2

 

IN WITNESS WHEREOF, the
Borrowers have caused this Revolver Loan Note to be duly executed and delivered
by its officer thereunto duly authorized as of the date and at the place first
written above.

 

 

	
   

  	
  EMRISE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ D. JOHN DONOVAN

  	
   

  
	
   

  	
  Name:

  	
    D. JOHN DONOVAN

  	
   

  
	
   

  	
  Title:

  	
  V.P. of Finance & Administration

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMRISE ELECTRONICS 

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ D. JOHN DONOVAN

  	
   

  
	
   

  	
  Name:

  	
    D. JOHN DONOVAN

  	
   

  
	
   

  	
  Title:

  	
  Secretary & Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CXR LARUS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ D. JOHN DONOVAN

  	
   

  
	
   

  	
  Name:

  	
    D. JOHN DONOVAN

  	
   

  
	
   

  	
  Title:

  	
  Secretary & Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RO ASSOCIATES INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /S/ D. JOHN DONOVAN

  	
   

  
	
   

  	
  Name:

  	
    D. JOHN DONOVAN

  	
   

  
	
   

  	
  Title:

  	
  Secretary & Treasurer

  	
   

  
								

 

3

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