Document:

REGISTRATION RIGHTS AGREEMENT

THIS  REGISTRATION  RIGHTS  AGREEMENT  (this "Agreement"), dated as of March 20,
2007,  by and among LOCATEPLUS HOLDINGS CORPORATION, a Delaware corporation (the
"Company"),  and  the  undersigned  Buyers  listed on Schedule I attached hereto
(each,  a  "Buyer"  and  collectively,  the  "Buyers").

WHEREAS:

A.     In  connection  with  the  Securities Purchase Agreement by and among the
parties  hereto of even date herewith (the "Securities Purchase Agreement"), the
Company  has  agreed,  upon  the  terms  and  subject  to  the conditions of the
Securities  Purchase  Agreement,  to  issue  and  sell to the Buyers (i) secured
convertible debentures (the "Convertible Debentures") which shall be convertible
into  shares  of  the  Company's  common  stock,  par value $0.01 per share (the
"Common  Stock,"  as  converted, the "Conversion Shares") in accordance with the
terms  of  the Convertible Debentures, and (ii) warrants (the "Warrants"), which
will  be  exercisable  to  purchase  shares  of  Common  Stock  (as  exercised,
collectively, the "Warrant Shares").  Capitalized terms not defined herein shall
have  the  meaning  ascribed  to  them  in  the  Securities  Purchase Agreement.

B.     To  induce  the  Buyers  to  execute  and deliver the Securities Purchase
Agreement,  the  Company has agreed to provide certain registration rights under
the  Securities  Act  of  1933,  as  amended,  and  the  rules  and  regulations
thereunder,  or  any  similar  successor  statute (collectively, the "Securities
Act"),  and  applicable  state  securities  laws.

NOW,  THEREFORE,  in  consideration  of  the  premises  and the mutual covenants
contained  herein  and  other  good  and valuable consideration, the receipt and
sufficiency  of which are hereby acknowledged, the Company and the Buyers hereby
agree  as  follows:

1.     DEFINITIONS.

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

(a)     "Effectiveness Deadline" means, with respect to the initial Registration
Statement  required  to be filed hereunder, the 145th calendar day following the
date  hereof  and,  with respect to any Subsequent Registration Statements which
may  be  required  pursuant to Section 3(c), the 60th calendar day following the
date  on which the Company first knows, or reasonably should have known, that it
is  obligated to file such Subsequent Registration Statement; provided, however,
in  the  event  the  Company  is  notified  by  the U.S. Securities and Exchange
Commission  ("SEC")  that  one  of the above Registration Statements will not be
reviewed  or  is  no  longer  subject  to  further  review  and  comments,  the
Effectiveness  Date as to such Registration Statement shall be the fifth Trading
Day following the date on which the Company is so notified if such date precedes
the  dates  required  above.

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(b)     "Filing  Deadline"  means,  with  respect  to  the  initial Registration
Statement  required  hereunder,  the 30th calendar day following the date hereof
and, with respect to any Subsequent Registration Statement which may be required
pursuant  to  Section 3(c), the 15th day following the date on which the Company
first  knows,  or reasonably should have known that it is obligated to file such
Subsequent  Registration  Statement.

(c)     "Initial  Required  Registration  Amount"  means Two Million One Hundred
Thousand  shares  of  Common Stock issued or to be issued upon conversion of the
Convertible  Debentures  or  exercise  of  the  series  F  Warrant.

(d)     "Person"  means  a  corporation,  a  limited  liability  company,  an
association,  a  partnership,  an  organization,  a  business,  an individual, a
governmental  or  political  subdivision  thereof  or  a  governmental  agency.

(e)     "Prospectus"  means  the prospectus included in a Registration Statement
(including,  without  limitation,  a  prospectus  that  includes any information
previously  omitted from a prospectus filed as part of an effective registration
statement  in  reliance upon Rule 430A promulgated under the Securities Act), as
amended  or supplemented by any prospectus supplement, with respect to the terms
of  the  offering  of  any  portion  of  the Registrable Securities covered by a
Registration  Statement,  and  all  other  amendments  and  supplements  to  the
Prospectus,  including  post-effective amendments, and all material incorporated
by  reference  or  deemed  to  be  incorporated by reference in such Prospectus.

(f)     "Registrable Securities" means all of (i) the Conversion Shares issuable
upon conversion of the Convertible Debentures, (ii) the Warrant Shares issued or
issuable  upon exercise of the Warrants, (iii) any additional shares issuable in
connection  with any anti-dilution provisions in the Warrants or the Convertible
Debentures  (without  giving  effect to any limitations on exercise set forth in
the  Warrants  or  Convertible  Debentures)  and (iv) any shares of Common Stock
issued  or  issuable  with  respect  to  the  Conversion Shares, the Convertible
Debentures,  the Warrant Shares, or the Warrants as a result of any stock split,
dividend  or other distribution, recapitalization or similar event or otherwise,
without  regard  to  any  limitations  on  the  conversion  of  the  Convertible
Debentures  or  exercise  of  the  Warrants.

(g)     "Registration  Statement"  means the registration statements required to
be  filed  hereunder  and any additional registration statements contemplated by
Section  3(c),  including  (in  each  case)  the  Prospectus,  amendments  and
supplements  to  such  registration  statement or Prospectus, including pre- and
post-effective  amendments,  all exhibits thereto, and all material incorporated
by  reference  or  deemed  to  be incorporated by reference in such registration
statement.

(h)      "Rule  415"  means  Rule  415  promulgated  by  the SEC pursuant to the
Securities  Act,  as  such Rule may be amended from time to time, or any similar
rule  or  regulation hereafter adopted by the SEC  having substantially the same
purpose  and  effect  as  such  Rule.

2.     REGISTRATION.

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(a)     On  or prior to each Filing Deadline, the Company shall prepare and file
with the SEC a Registration Statement on Form S-1 or SB-2 (or, if the Company is
then  eligible,  on  Form  S-3)  covering  the  resale of all of the Registrable
Securities.  The  initial  Registration Statement prepared pursuant hereto shall
register  for  resale at least the number of shares of Common Stock equal to the
Required  Registration  Amount.  Each  Registration  Statement shall contain the
"Selling  Stockholders" and "Plan of Distribution" sections in substantially the
form  attached  hereto as Exhibit A and contain all the required disclosures set
forth  on  Exhibit  B.  The  Company  shall  use  its  best  efforts to have the
Registration Statement declared effective by the SEC as soon as practicable, but
in  no  event  later  than  the  Effectiveness Deadline.  By 9:30 am on the date
following  the  date  of  effectiveness,  the Company shall file with the SEC in
accordance  with  Rule 424 under the 1933 Act the final Prospectus to be used in
connection  with  sales  pursuant  to  such Registration Statement.  The Company
shall  cause  the  Registration  Statement  to remain effective until all of the
Registrable Securities have been sold or may be sold without volume restrictions
pursuant to Rule 144(k), as determined by the counsel to the Company pursuant to
a  written  opinion  letter  to  such  effect,  addressed  and acceptable to the
Company's  transfer  agent  and  the  affected  Holders ("Registration Period").
Prior  to  the  filing  of  the Registration Statement with the SEC, the Company
shall  furnish  a  draft  of  the Registration Statement to the Buyers for their
review  and  comment.  The  Buyers  shall  furnish  comments on the Registration
Statement  to  the  Company within twenty-four (24) hours of the receipt thereof
from  the  Company.

(b)     Failure  to  File or Obtain Effectiveness of the Registration Statement.
If: (i) a Registration Statement is not filed on or prior to its Filing Date (if
the  Company  files  a  Registration Statement without affording the Holders the
opportunity  to  review and comment on the same as required by Section 3(a), the
Company  shall  not  be  deemed  to have satisfied this clause (i)), or (ii) the
Company fails to file with the SEC a request for acceleration in accordance with
Rule  461  promulgated under the Securities Act, within five Trading Days of the
date  that  the Company is notified (orally or in writing, whichever is earlier)
by  the SEC that a Registration Statement will not be "reviewed," or not subject
to  further  review,  or  (iii) a Registration Statement filed or required to be
filed  hereunder  is  not  declared  effective  by  the SEC by its Effectiveness
Deadline,  or  (iv) after the effectiveness, a Registration Statement ceases for
any reason to remain continuously effective as to all Registrable Securities for
which it is required to be effective, or the Holders are otherwise not permitted
to utilize the Prospectus therein to resell such Registrable Securities for more
than  30 consecutive calendar days or more than an aggregate of 40 calendar days
during  any  12-month  period (which need not be consecutive calendar days) (any
such failure or breach being referred to as an "Event"), then in addition to any
other  rights  the  holders  of the Convertible Debentures may have hereunder or
under applicable law, on each such Event date and on each monthly anniversary of
each  such Event date (if the applicable Event shall not have been cured by such
date)  until the applicable Event is cured, the Company shall pay to each holder
of  Convertible  Debentures  an  amount  in  cash, as partial liquidated damages
("Liquidated  Damages")  and  not  as  a penalty, equal to 1.0% of the aggregate
purchase price paid by such holder pursuant to the Securities Purchase Agreement
for any Convertible Debentures then held by such holder.  The parties agree that
(1)  the Company shall not be liable for Liquidated Damages under this Agreement
with  respect  to  any  Warrants or Warrant Shares and (2) the maximum aggregate
Liquidated  Damages  payable  to  a  holder of Convertible Debentures under this
Agreement  shall  be  twenty-four  percent  (24%)  of  the

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aggregate Purchase Price paid by such holder pursuant to the Securities Purchase
Agreement.  The  partial  Liquidated  Damages pursuant to the terms hereof shall
apply  on a daily pro-rata basis for any portion of a month prior to the cure of
an  Event.  Notwithstanding  anything  herein  to  the  contrary, the liquidated
damages described in this Section 2(b) shall not be applicable to Non-Registered
Shares.  The  Company's  failure  to  meet the Filing Date and Effective Date as
they  relate  to  any Subsequent Registration Statements shall subject it to all
liquidated  damage  provisions  set  forth  in  this  Section  2(b).

(c)     Liquidated  Damages.  The  Company  and the Buyer hereto acknowledge and
agree  that  the  sums  payable  under  subsection  2(b)  above shall constitute
liquidated  damages and not penalties and are in addition to all other rights of
the  Buyer,  including  the  right  to  call  a  default.  The  parties  further
acknowledge  that  (i)  the  amount  of loss or damages likely to be incurred is
incapable  or  is difficult to precisely estimate, (ii) the amounts specified in
such  subsections  bear  a  reasonable  relationship  to, and are not plainly or
grossly  disproportionate  to,  the  probable  loss  likely  to  be  incurred in
connection  with  any  failure  by  the  Company  to  obtain  or  maintain  the
effectiveness  of  a  Registration  Statement,  (iii) one of the reasons for the
Company  and  the  Buyer  reaching  an  agreement  as  to  such  amounts was the
uncertainty and cost of litigation regarding the question of actual damages, and
(iv)  the Company and the Buyer are sophisticated business parties and have been
represented  by  sophisticated  and  able  legal  counsel  and  negotiated  this
Agreement  at  arm's  length.

3.     RELATED  OBLIGATIONS.

(a)     The  Company  shall,  not  less than three (3) Trading Days prior to the
filing  of  each  Registration  Statement  and not less than one (1) Trading Day
prior  to  the  filing  of  any  related  amendments  and  supplements  to  all
Registration Statements (except for annual reports on Form 10-K or Form 10-KSB),
furnish  to  each Buyer copies of all such documents proposed to be filed, which
documents  (other  than  those  incorporated  or  deemed  to  be incorporated by
reference)  will  be subject to the reasonable and prompt review of such Buyers,
The  Company  shall  not file a Registration Statement or any such Prospectus or
any  amendments  or  supplements  thereto  to  which the Buyers shall reasonably
object  in  good faith; provided that, the Company is notified of such objection
in  writing  no  later  than  two (2) Trading Days after the Buyers have been so
furnished  copies  of  a  Registration  Statement.

(b)     The  Company  shall  (i)  prepare  and file with the SEC such amendments
(including  post-effective  amendments)  and  supplements  to  a  Registration
Statement  and  the  Prospectus  used  in  connection  with  such  Registration
Statement,  which  prospectus  is  to  be filed pursuant to Rule 424 promulgated
under  the  Securities  Act,  as  may  be  necessary  to  keep such Registration
Statement effective at all times during the Registration Period, and prepare and
file  with  the SEC such additional Registration Statements in order to register
for  resale  under  the  Securities  Act all of the Registrable Securities; (ii)
cause  the  related  Prospectus  to  be  amended or supplemented by any required
Prospectus  supplement  (subject  to  the  terms  of  this Agreement), and as so
supplemented  or  amended  to  be  filed  pursuant to Rule 424; (iii) respond as
promptly  as  reasonably  possible  to  any  comments received from the SEC with
respect  to a Registration Statement or any amendment thereto and as promptly as
reasonably  possible  provide  the  Buyers  true  and  complete  copies  of  all
correspondence  from  and  to  the  SEC  relating  to  a  Registration

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Statement  (provided  that  the  Company  may  excise  any information contained
therein  which  would constitute material non-public information as to any Buyer
which  has  not executed a confidentiality agreement with the Company); and (iv)
comply with the provisions of the Securities Act with respect to the disposition
of  all  Registrable  Securities  of  the  Company  covered by such Registration
Statement  until such time as all of such Registrable Securities shall have been
disposed of in accordance with the intended methods of disposition by the seller
or  sellers thereof as set forth in such Registration Statement.  In the case of
amendments  and supplements to a Registration Statement which are required to be
filed  pursuant  to  this Agreement (including pursuant to this Section 3(b)) by
reason  of the Company's filing a report on Form 10-KSB, Form 10-QSB or Form 8-K
or  any  analogous  report under the Securities Exchange Act of 1934, as amended
(the  "Exchange  Act"),  the  Company shall incorporate such report by reference
into the Registration Statement, if applicable, or shall file such amendments or
supplements  with  the  SEC  on the same day on which the Exchange Act report is
filed  which  created the requirement for the Company to amend or supplement the
Registration  Statement.

(c)     To  the  extent that the Buyer holds any Registrable Securities that are
prohibited  from  being  included on a the initial Registration Statement or any
other  Registration  Statement  (the "Non-Registered Shares") under Rule 415, as
interpreted  by  the  SEC,  then the Company shall become obligated to file, and
obtain  the  effectiveness  of,  (in  accordance  with  the  Filing Deadline and
Effectiveness  Deadline  set  forth  above) an additional Registration Statement
(each,  a  "Subsequent  Registration  Statement")  on  the  first day after such
Subsequent  Registration  Statement  may  be  filed without objection by the SEC
under  Rule  415 covering the resale by the Buyers of the maximum number of such
Non-Registered  Shares  allowed  under  Rule  415  as  interpreted  by  the SEC.

(d)     The Company shall furnish to each Buyer whose Registrable Securities are
included  in  any  Registration  Statement, without charge, (i) at least one (1)
copy  of  such  Registration  Statement as declared effective by the SEC and any
amendment(s)  thereto,  including  financial  statements  and  schedules,  all
documents  incorporated  therein by reference, all exhibits and each preliminary
prospectus,  (ii)  ten  (10)  copies  of  the  final prospectus included in such
Registration Statement and all amendments and supplements thereto (or such other
number  of  copies  as  such  Buyer may reasonably request) and (iii) such other
documents  as  such  Buyer  may reasonably request from time to time in order to
facilitate  the  disposition  of the Registrable Securities owned by such Buyer.

(e)     The  Company  shall use its best efforts to (i) register and qualify the
Registrable  Securities  covered  by  a  Registration Statement under such other
securities  or "blue sky" laws of such jurisdictions in the United States as any
Buyer  reasonably  requests,  (ii) prepare and file in those jurisdictions, such
amendments  (including  post-effective  amendments)  and  supplements  to  such
registrations  and  qualifications  as  may  be  necessary  to  maintain  the
effectiveness  thereof  during  the  Registration  Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect  at  all  times  during  the Registration Period, and (iv) take all other
actions  reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required  in  connection  therewith  or  as  a condition thereto to (w) make any
change  to  its articles of incorporation or by-laws, (x) qualify to do business
in  any  jurisdiction  where  it

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would  not  otherwise  be  required  to  qualify  but for this Section 3(d), (y)
subject  itself  to  general  taxation  in  any such jurisdiction, or (z) file a
general  consent  to  service  of process in any such jurisdiction.  The Company
shall promptly notify each Buyer who holds Registrable Securities of the receipt
by  the  Company  of  any  notification  with  respect  to the suspension of the
registration  or  qualification  of  any  of the Registrable Securities for sale
under the securities or "blue sky" laws of any jurisdiction in the United States
or  its  receipt  of actual notice of the initiation or threat of any proceeding
for  such  purpose.

(f)     As  promptly  as  practicable  after  becoming  aware  of  such event or
development,  the Company shall notify each Buyer in writing of the happening of
any  event  as  a  result  of  which  the  Prospectus included in a Registration
Statement, as then in effect, includes an untrue statement of a material fact or
omission  to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made,  not  misleading  (provided that in no event shall such notice contain any
material, nonpublic information), and promptly prepare a supplement or amendment
to such Registration Statement to correct such untrue statement or omission, and
deliver  ten  (10)  copies  of  such supplement or amendment to each Buyer.  The
Company  shall  also promptly notify each Buyer in writing (i) when a Prospectus
or  any  Prospectus  supplement  or post-effective amendment has been filed, and
when  a  Registration  Statement  or  any  post-effective  amendment  has become
effective  (notification  of such effectiveness shall be delivered to each Buyer
by  facsimile on the same day of such effectiveness), (ii) of any request by the
SEC  for  amendments  or  supplements  to  a  Registration  Statement or related
prospectus  or  related  information,  and  (iii)  of  the  Company's reasonable
determination  that a post-effective amendment to a Registration Statement would
be  appropriate.

(g)     The  Company  shall  use its best efforts to prevent the issuance of any
stop  order or other suspension of effectiveness of a Registration Statement, or
the  suspension  of  the  qualification of any of the Registrable Securities for
sale  in  any  jurisdiction  within the United States of America and, if such an
order  or  suspension  is  issued,  to  obtain  the  withdrawal of such order or
suspension  at  the  earliest possible moment and to notify each Buyer who holds
Registrable  Securities  being  sold  of  the  issuance  of  such  order and the
resolution  thereof  or its receipt of actual notice of the initiation or threat
of  any  proceeding  for  such  purpose.

(h)     If,  after  the  execution  of  this  Agreement, a Buyer believes, after
consultation with its legal counsel, that it could reasonably be deemed to be an
underwriter  of Registrable Securities, at the request of any Buyer, the Company
shall  furnish  to  such  Buyer,  on  the  date  of  the  effectiveness  of  the
Registration Statement and thereafter from time to time on such dates as a Buyer
may  reasonably  request  (i)  a  letter,  dated  such  date, from the Company's
independent certified public accountants in form and substance as is customarily
given  by  independent  certified  public  accountants  to  underwriters  in  an
underwritten  public  offering,  and  (ii) an opinion, dated as of such date, of
counsel representing the Company for purposes of such Registration Statement, in
form,  scope  and  substance  as  is customarily given in an underwritten public
offering,  addressed  to  the  Buyers.

(i)     If,  after  the  execution  of  this  Agreement, a Buyer believes, after
consultation with its legal counsel, that it could reasonably be deemed to be an
underwriter  of

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Registrable  Securities,  at  the  request  of any Buyer, the Company shall make
available  for  inspection by (i) any Buyer and (ii) one (1) firm of accountants
or  other  agents  retained  by  the Buyers (collectively, the "Inspectors") all
pertinent  financial  and  other  records, and pertinent corporate documents and
properties  of the Company (collectively, the "Records"), as shall be reasonably
deemed  necessary by each Inspector, and cause the Company's officers, directors
and  employees  to  supply  all  information  which any Inspector may reasonably
request;  provided,  however,  that  each  Inspector shall agree, and each Buyer
hereby  agrees,  to  hold in strict confidence and shall not make any disclosure
(except  to  a  Buyer) or use  any Record or other information which the Company
determines  in  good  faith  to  be confidential, and of which determination the
Inspectors  are  so  notified,  unless  (a)  the  disclosure  of such Records is
necessary  to  avoid  or  correct a misstatement or omission in any Registration
Statement  or is otherwise required under the Securities Act, (b) the release of
such  Records  is  ordered pursuant to a final, non-appealable subpoena or order
from  a  court  or  government  body  of  competent  jurisdiction,  or  (c)  the
information  in  such  Records  has  been made generally available to the public
other  than  by  disclosure in violation of this or any other agreement of which
the  Inspector  and  the  Buyer has knowledge.  Each Buyer agrees that it shall,
upon  learning  that  disclosure  of  such Records is sought in or by a court or
governmental  body of competent jurisdiction or through other means, give prompt
notice  to  the  Company  and  allow  the  Company, at its expense, to undertake
appropriate  action  to  prevent  disclosure of, or to obtain a protective order
for,  the  Records  deemed  confidential.

(j)     The  Company  shall  hold  in  confidence and not make any disclosure of
information  concerning a Buyer provided to the Company unless (i) disclosure of
such  information  is necessary to comply with federal or state securities laws,
(ii)  the  disclosure  of  such  information  is necessary to avoid or correct a
misstatement  or  omission  in  any Registration Statement, (iii) the release of
such  information  is  ordered  pursuant  to  a  subpoena  or  other  final,
non-appealable  order  from  a  court  or  governmental  body  of  competent
jurisdiction,  or (iv) such information has been made generally available to the
public  other  than  by  disclosure  in violation of this Agreement or any other
agreement.  The  Company  agrees that it shall, upon learning that disclosure of
such  information  concerning a Buyer is sought in or by a court or governmental
body  of  competent  jurisdiction  or  through  other means, give prompt written
notice  to such Buyer and allow such Buyer, at the Buyer's expense, to undertake
appropriate  action  to  prevent  disclosure of, or to obtain a protective order
for,  such  information.

(k)     The  Company  shall  use  its  best  efforts  either  to  cause  all the
Registrable  Securities  covered by a Registration Statement (i) to be listed on
each  securities exchange on which securities of the same class or series issued
by  the  Company  are  then  listed,  if any, if the listing of such Registrable
Securities  is  then  permitted  under  the  rules  of such exchange or (ii) the
inclusion  for quotation on the National Association of Securities Dealers, Inc.
OTC  Bulletin  Board for such Registrable Securities.  The Company shall pay all
fees  and  expenses  in  connection  with  satisfying  its obligation under this
Section  3(j).

(l)     The  Company  shall  cooperate  with  each  Buyer  who holds Registrable
Securities being offered and, to the extent applicable, to facilitate the timely
preparation  and  delivery  of certificates (not bearing any restrictive legend)
representing the Registrable Securities to be offered pursuant to a Registration
Statement  and  enable  such  certificates  to  be  in  such

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denominations  or  amounts,  as  the  case  may be, as the Buyers may reasonably
request  and  registered  in  such  names  as  the  Buyers  may  request.

(m)     The  Company  shall  use  its  best  efforts  to  cause  the Registrable
Securities  covered  by  the  applicable Registration Statement to be registered
with  or  approved  by such other governmental agencies or authorities as may be
necessary  to  consummate  the  disposition  of  such  Registrable  Securities.

(n)     The  Company  shall  make generally available to its security holders as
soon  as  practical,  but not later than ninety (90) days after the close of the
period  covered  thereby,  an  earnings  statement  (in  form complying with the
provisions  of  Rule  158 under the Securities Act) covering a twelve (12) month
period  beginning  not  later than the first day of the Company's fiscal quarter
next  following  the  effective  date  of  the  Registration  Statement.

(o)     The  Company  shall  otherwise  use  its best efforts to comply with all
applicable  rules and regulations of the SEC in connection with any registration
hereunder.

(p)     Within two (2) business days after a Registration Statement which covers
Registrable  Securities  is  declared  effective  by  the SEC, the Company shall
deliver,  and  shall  cause  legal  counsel  for  the Company to deliver, to the
transfer  agent  for such Registrable Securities (with copies to the Buyer whose
Registrable Securities are included in such Registration Statement) confirmation
that  such  Registration Statement has been declared effective by the SEC in the
form  attached  hereto  as  Exhibit  C.

(q)     The  Company  shall  take  all  other  reasonable  actions  necessary to
expedite  and  facilitate  disposition  by  each Buyer of Registrable Securities
pursuant  to  a  Registration  Statement.

4.     OBLIGATIONS  OF  THE  BUYERS.

(a)     Each  Buyer  agrees that, upon receipt of any notice from the Company of
the  happening  of  any event of the kind described in Section 3(f) or the first
sentence of Section 3(e), such Buyer will immediately discontinue disposition of
Registrable  Securities  pursuant  to  any  Registration Statement covering such
Registrable  Securities  until  such  Buyer's  receipt  of  the  copies  of  the
supplemented  or  amended  prospectus  contemplated by Section 3(f) or the first
sentence of Section 3(e) or receipt of notice that no supplement or amendment is
required.  Notwithstanding anything to the contrary, the Company shall cause its
transfer  agent to deliver unlegended certificates for shares of Common Stock to
a  transferee of a Buyer in accordance with the terms of the Securities Purchase
Agreement  in connection with any sale of Registrable Securities with respect to
which  a Buyer has entered into a contract for sale prior to the Buyer's receipt
of a notice from the Company of the happening of any event of the kind described
in  Section  3(f)  or the first sentence of 3(e) and for which the Buyer has not
yet  settled.

(b)     Each  Buyer covenants and agrees that it will comply with the prospectus
delivery  requirements of the Securities Act as applicable to it or an exemption
therefrom  in  connection  with  sales of Registrable Securities pursuant to the
Registration  Statement.

<PAGE>

     5.     EXPENSES  OF  REGISTRATION.

All  expenses  incurred  in  connection  with  registrations,  filings  or
qualifications  pursuant to Sections 2 and 3, including, without limitation, all
registration,  listing  and  qualifications fees, printers, legal and accounting
fees  shall  be  paid  by  the  Company.

6.     INDEMNIFICATION.

With  respect  to  Registrable  Securities  which are included in a Registration
Statement  under  this  Agreement:

(a)     To  the  fullest  extent  permitted by law, the Company will, and hereby
does,  indemnify,  hold harmless and defend each Buyer, the directors, officers,
partners,  employees,  agents,  representatives of, and each Person, if any, who
controls  any Buyer within the meaning of the Securities Act or the Exchange Act
(each,  an  "Indemnified  Person"),  against  any  losses,  claims,  damages,
liabilities,  judgments, fines, penalties, charges, costs, reasonable attorneys'
fees,  amounts  paid  in settlement or expenses, joint or several (collectively,
"Claims")  incurred  in investigating, preparing or defending any action, claim,
suit,  inquiry,  proceeding, investigation or appeal taken from the foregoing by
or  before any court or governmental, administrative or other regulatory agency,
body  or  the  SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("Indemnified Damages"), to which any of them
may  become  subject  insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any  untrue  statement  or  alleged  untrue  statement  of  a material fact in a
Registration  Statement or any post-effective amendment thereto or in any filing
made  in  connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered  ("Blue  Sky  Filing"),  or  the omission or alleged omission to state a
material  fact required to be stated therein or necessary to make the statements
therein not misleading; (ii) any untrue statement or alleged untrue statement of
a  material  fact contained in any final prospectus (as amended or supplemented,
if  the  Company files any amendment thereof or supplement thereto with the SEC)
or the omission or alleged omission to state therein any material fact necessary
to  make  the statements made therein, in light of the circumstances under which
the  statements  therein  were  made,  not misleading; or (iii) any violation or
alleged  violation  by  the Company of the Securities Act, the Exchange Act, any
other  law, including, without limitation, any state securities law, or any rule
or  regulation  there  under  relating  to  the offer or sale of the Registrable
Securities  pursuant  to  a Registration Statement (the matters in the foregoing
clauses (i) through (iii) being, collectively, "Violations").  The Company shall
reimburse  the Buyers and each such controlling person promptly as such expenses
are  incurred  and  are  due and payable, for any legal fees or disbursements or
other  reasonable  expenses incurred by them in connection with investigating or
defending  any  such  Claim.  Notwithstanding anything to the contrary contained
herein,  the indemnification agreement contained in this Section 6(a): (x) shall
not  apply  to  a  Claim by an Indemnified Person arising out of or based upon a
Violation  which  occurs  in  reliance  upon  and in conformity with information
furnished in writing to the Company by such Indemnified Person expressly for use
in  connection  with  the  preparation of the Registration Statement or any such
amendment  thereof  or  supplement  thereto;  (y)  shall not be available to the

<PAGE>
extent  such  Claim is based on a failure of the Buyer to deliver or to cause to
be  delivered  the  prospectus made available by the Company, if such prospectus
was timely made available by the Company pursuant to Section 3(c); and (z) shall
not  apply  to  amounts  paid  in  settlement of any Claim if such settlement is
effected  without  the prior written consent of the Company, which consent shall
not  be  unreasonably  withheld.  Such  indemnity shall remain in full force and
effect  regardless  of any investigation made by or on behalf of the Indemnified
Person  and  shall  survive  the  transfer  of the Registrable Securities by the
Buyers  pursuant  to  Section  9  hereof.

(b)     In  connection  with  a  Registration  Statement,  each  Buyer agrees to
severally  and  not  jointly  indemnify,  hold  harmless and defend, to the same
extent and in the same manner as is set forth in Section 6(a), the Company, each
of  its  directors,  each of its officers, employees, representatives, or agents
and  each  Person,  if  any,  who controls the Company within the meaning of the
Securities  Act  or  the Exchange Act (each an "Indemnified Party"), against any
Claim  or Indemnified Damages to which any of them may become subject, under the
Securities  Act,  the  Exchange  Act  or  otherwise,  insofar  as  such Claim or
Indemnified Damages arise out of or is based upon any Violation, in each case to
the  extent, and only to the extent, that such Violation occurs in reliance upon
and  in  conformity  with  written  information furnished to the Company by such
Buyer  expressly  for  use  in connection with such Registration Statement; and,
subject  to  Section 6(d), such Buyer will reimburse any legal or other expenses
reasonably  incurred  by  them in connection with investigating or defending any
such  Claim;  provided,  however, that the indemnity agreement contained in this
Section 6(b) and the agreement with respect to contribution contained in Section
7  shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of such Buyer, which consent shall
not  be  unreasonably withheld; provided, further, however, that the Buyer shall
be liable under this Section 6(b) for only that amount of a Claim or Indemnified
Damages  as  does  not  exceed the net proceeds to such Buyer as a result of the
sale  of  Registrable  Securities pursuant to such Registration Statement.  Such
indemnity  shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the transfer of
the Registrable Securities by the Buyers pursuant to Section 9.  Notwithstanding
anything  to  the  contrary  contained  herein,  the  indemnification  agreement
contained in this Section 6(b) with respect to any prospectus shall not inure to
the  benefit  of  any  Indemnified  Party if the untrue statement or omission of
material  fact contained in the prospectus was corrected and such new prospectus
was delivered to each Buyer prior to such Buyer's use of the prospectus to which
the  Claim  relates.

(c)     Promptly  after  receipt  by  an Indemnified Person or Indemnified Party
under  this  Section 6 of notice of the commencement of any action or proceeding
(including  any  governmental  action  or  proceeding)  involving  a Claim, such
Indemnified  Person or Indemnified Party shall, if a Claim in respect thereof is
to  be  made against any indemnifying party under this Section 6, deliver to the
indemnifying  party  a  written  notice  of  the  commencement  thereof, and the
indemnifying  party  shall  have the right to participate in, and, to the extent
the  indemnifying  party  so  desires, jointly with any other indemnifying party
similarly  noticed,  to  assume  control  of  the  defense  thereof with counsel
mutually  satisfactory  to  the indemnifying party and the Indemnified Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person  or Indemnified Party shall have the right to retain its own
counsel  with  the

<PAGE>
fees  and  expenses of not more than one (1) counsel for such Indemnified Person
or Indemnified Party to be paid by the indemnifying party, if, in the reasonable
opinion  of  counsel  retained  by the indemnifying party, the representation by
such counsel of the Indemnified Person or Indemnified Party and the indemnifying
party  would  be  inappropriate  due to actual or potential differing  interests
between  such  Indemnified  Person  or  Indemnified  Party  and  any other party
represented  by  such  counsel  in  such  proceeding.  The  Indemnified Party or
Indemnified  Person  shall  cooperate  fully  with  the  indemnifying  party  in
connection  with  any  negotiation or defense of any such action or claim by the
indemnifying  party  and shall furnish to the indemnifying party all information
reasonably  available  to  the  Indemnified  Party  or  Indemnified Person which
relates  to  such  action  or  claim.  The  indemnifying  party  shall  keep the
Indemnified  Party  or  Indemnified Person fully apprised at all times as to the
status  of  the defense or any settlement negotiations with respect thereto.  No
indemnifying  party  shall  be liable for any settlement of any action, claim or
proceeding  effected  without its prior written consent; provided, however, that
the  indemnifying  party shall not unreasonably withhold, delay or condition its
consent.  No  indemnifying party shall, without the prior written consent of the
Indemnified  Party  or  Indemnified  Person, consent to entry of any judgment or
enter  into  any  settlement  or  other  compromise which does not include as an
unconditional  term  thereof  the  giving  by  the claimant or plaintiff to such
Indemnified  Party  or  Indemnified  Person  of  a release from all liability in
respect  to such claim or litigation.  Following indemnification as provided for
hereunder,  the  indemnifying  party  shall  be  subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or  corporations relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice  to  the  indemnifying party within a
reasonable  time  of  the commencement of any such action shall not relieve such
indemnifying  party  of  any  liability to the Indemnified Person or Indemnified
Party  under this Section 6, except to the extent that the indemnifying party is
prejudiced  in  its  ability  to  defend  such  action.

(d)     The indemnification required by this Section 6 shall be made by periodic
payments  of  the  amount  thereof  during  the  course  of the investigation or
defense,  as  and  when  bills are received or Indemnified Damages are incurred.

(e)     The  indemnity  agreements  contained herein shall be in addition to (i)
any  cause  of  action  or similar right of the Indemnified Party or Indemnified
Person  against  the  indemnifying party or others, and (ii) any liabilities the
indemnifying  party  may  be  subject  to  pursuant  to  the  law.

7.     CONTRIBUTION.

To  the  extent  any  indemnification  by an indemnifying party is prohibited or
limited  by  law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section
6  to  the  fullest  extent  permitted  by law; provided, however, that:  (i) no
seller  of Registrable Securities guilty of fraudulent misrepresentation (within
the  meaning  of  Section  11(f)  of  the  Securities  Act) shall be entitled to
contribution  from  any  seller  of Registrable Securities who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities  shall  be  limited  in

<PAGE>
amount  to  the  net amount of proceeds received by such seller from the sale of
such  Registrable  Securities.

8.     REPORTS  UNDER  THE  EXCHANGE  ACT.

With  a  view  to  making  available  to  the  Buyers  the  benefits of Rule 144
promulgated  under  the  Securities Act or any similar rule or regulation of the
SEC  that may at any time permit the Buyers to sell securities of the Company to
the  public  without  registration  ("Rule  144")  the  Company  agrees  to:

(a)     make  and  keep  public  information  available,  as  those  terms  are
understood  and  defined  in  Rule  144;

(b)     file  with  the  SEC  in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act so long as
the  Company  remains  subject  to  such  requirements (it being understood that
nothing  herein  shall limit the Company's obligations under Section 4(c) of the
Securities  Purchase  Agreement)  and  the  filing  of  such  reports  and other
documents  as  are  required  by  the  applicable  provisions  of  Rule 144; and

(c)     furnish to each Buyer so long as such Buyer owns Registrable Securities,
promptly  upon  request,  (i)  a  written  statement  by the Company that it has
complied with the reporting requirements of Rule 144, the Securities Act and the
Exchange  Act,  (ii) a copy of the most recent annual or quarterly report of the
Company  and such other reports and documents so filed by the Company, and (iii)
such  other  information  as may be reasonably requested to permit the Buyers to
sell  such  securities  pursuant  to  Rule  144  without  registration.

9.     AMENDMENT  OF  REGISTRATION  RIGHTS.

Provisions  of  this  Agreement may be amended and the observance thereof may be
waived (either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and Buyers who then
hold  at least two-thirds (2/3) of the Registrable Securities.  Any amendment or
waiver  effected  in  accordance  with this Section 9 shall be binding upon each
Buyer  and the Company.  No such amendment shall be effective to the extent that
it  applies  to fewer than all of the holders of the Registrable Securities.  No
consideration  shall  be  offered or paid to any Person to amend or consent to a
waiver or modification of any provision of any of this Agreement unless the same
consideration  also  is  offered  to  all  of  the  parties  to  this Agreement.

10.     MISCELLANEOUS.

(a)     A  Person  is  deemed  to be a holder of Registrable Securities whenever
such  Person  owns  or is deemed to own of record such Registrable Securities or
owns  the  right to receive the Registrable Securities.  If the Company receives
conflicting instructions, notices or elections from two (2) or more Persons with
respect  to  the  same  Registrable  Securities,  the

<PAGE>
Company  shall  act  upon the basis of instructions, notice or election received
from  the  registered  owner  of  such  Registrable  Securities.

(b)     No  Piggyback  on  Registrations.  Except as set forth on Schedule 10(b)
attached hereto, neither the Company nor any of its security holders (other than
the  Buyers  in  such  capacity  pursuant  hereto) may include securities of the
Company  in  the  initial  Registration  Statement  other  than  the Registrable
Securities.  The  Company shall not file any other registration statements until
the  initial  Registration Statement required hereunder is declared effective by
the  SEC,  provided  that this Section 10(b) shall not prohibit the Company from
filing  amendments  to  registration  statements  already  filed.

(c)     Piggy-Back Registrations.  If at any time during the Registration Period
there is not an effective Registration Statement covering all of the Registrable
Securities  and  the  Company shall determine to prepare and file with the SEC a
registration  statement  relating  to  an  offering  for  its own account or the
account  of  others  under  the  Securities Act of any of its equity securities,
other  than  on  Form  S-4 or Form S-8 (each as promulgated under the Securities
Act) or their then equivalents relating to equity securities to be issued solely
in  connection  with  any  acquisition  of  any  entity  or  business  or equity
securities  issuable  in  connection  with  the  stock  option or other employee
benefit  plans,  then  the  Company shall send to each Buyer a written notice of
such  determination  and,  if  within  fifteen  (15) days after the date of such
notice, any such Buyer shall so request in writing, the Company shall include in
such  registration statement all or any part of such Registrable Securities such
Buyer  requests to be registered; provided, however, that, the Company shall not
be  required  to  register  any  Registrable Securities pursuant to this Section
10(c) that are eligible for resale pursuant to Rule 144(k) promulgated under the
Securities  Act  or  that  are  the  subject  of  a  then effective Registration
Statement.

(d)     Any  notices,  consents,  waivers  or  other  communications required or
permitted  to  be given under the terms of this Agreement must be in writing and
will  be  deemed  to  have  been  delivered:  (i)  upon  receipt, when delivered
personally;  (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending  party);  or  (iii) one (1) business day after deposit with a nationally
recognized  overnight  delivery  service, in each case properly addressed to the
party  to  receive  the  same.  The  addresses  and  facsimile  numbers for such
communications  shall  be:

If to the Company, to:     LocatePLUS Holdings Corporation
     100 Cummings Center, Suite 235M
     Beverly, MA 01915
     Attention:  Chief Executive Officer
     Telephone:
     Facsimile:

With Copy to:     Sichenzia Ross Friedman Ference LLP
     1065 Avenue of the Americas
     New York, NY 10018
     Attention:
     Telephone:   (212) 930-9700
     Facsimile:    (212) 930-9725

<PAGE>
If  to  an  Buyer, to its address and facsimile number on the Schedule of Buyers
attached hereto, with copies to such Buyer's representatives as set forth on the
Schedule  of  Buyers  or to such other address and/or facsimile number and/or to
the  attention  of  such  other  person  as the recipient party has specified by
written  notice  given  to  each  other  party  five  (5)  days  prior  to  the
effectiveness  of such change.  Written confirmation of receipt (A) given by the
recipient  of  such  notice,  consent,  waiver  or  other  communication,  (B)
mechanically  or  electronically  generated  by  the  sender's facsimile machine
containing  the time, date, recipient facsimile number and an image of the first
page  of  such  transmission  or  (C) provided by a courier or overnight courier
service  shall  be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with  clause  (i),  (ii)  or  (iii)  above,  respectively.

(e)     Failure  of  any  party  to  exercise  any  right  or  remedy under this
Agreement  or otherwise, or delay by a party in exercising such right or remedy,
shall  not  operate  as  a  waiver  thereof.

(f)     The  laws  of the State of New Jersey shall govern all issues concerning
the  relative  rights  of  the  Company and the Buyers as its stockholders.  All
other  questions  concerning  the  construction,  validity,  enforcement  and
interpretation  of  this Agreement shall be governed by the internal laws of the
State  of  New Jersey, without giving effect to any choice of law or conflict of
law  provision  or  rule  (whether  of  the  State  of  New  Jersey or any other
jurisdiction)  that  would cause the application of the laws of any jurisdiction
other  than  the  State of New Jersey.  Each party hereby irrevocably submits to
the  non-exclusive  jurisdiction  of  the  Superior  Courts  of the State of New
Jersey, sitting in Hudson County, New Jersey and federal courts for the District
of  New  Jersey  sitting Newark, New Jersey, for the adjudication of any dispute
hereunder  or in connection herewith or with any transaction contemplated hereby
or  discussed herein, and hereby irrevocably waives, and agrees not to assert in
any  suit,  action or proceeding, any claim that it is not personally subject to
the  jurisdiction  of  any  such  court, that such suit, action or proceeding is
brought  in  an  inconvenient  forum  or  that the venue of such suit, action or
proceeding  is  improper.  Each party hereby irrevocably waives personal service
of  process  and  consents  to  process being served in any such suit, action or
proceeding  by  mailing  a  copy  thereof  to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute
good  and  sufficient  service of process and notice thereof.  Nothing contained
herein  shall  be  deemed  to limit in any way any right to serve process in any
manner permitted by law.  If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction  or  the  validity  or  enforceability  of  any  provision  of this
Agreement  in  any other jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT  IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF  ANY  DISPUTE  HEREUNDER  OR  IN  CONNECTION  HEREWITH OR ARISING OUT OF THIS
AGREEMENT  OR  ANY  TRANSACTION  CONTEMPLATED  HEREBY.

<PAGE>

(g)     This  Agreement  shall  inure  to the benefit of and be binding upon the
permitted  successors  and  assigns  of  each  of  the  parties  hereto.

(h)     The headings in this Agreement are for convenience of reference only and
shall  not  limit  or  otherwise  affect  the  meaning  hereof.

(i)     This  Agreement may be executed in identical counterparts, each of which
shall  be  deemed an original but all of which shall constitute one and the same
agreement.  This  Agreement,  once  executed by a party, may be delivered to the
other party hereto by facsimile transmission of a copy of this Agreement bearing
the  signature  of  the  party  so  delivering  this  Agreement.

(j)     Each  party shall do and perform, or cause to be done and performed, all
such  further  acts  and  things,  and  shall execute and deliver all such other
agreements,  certificates,  instruments  and  documents,  as the other party may
reasonably  request in order to carry out the intent and accomplish the purposes
of  this Agreement and the consummation of the transactions contemplated hereby.

(k)     The  language  used  in this Agreement will be deemed to be the language
chosen  by  the  parties  to  express their mutual intent and no rules of strict
construction  will  be  applied  against  any  party.

(l)     This  Agreement  is  intended  for the benefit of the parties hereto and
their  respective  permitted  successors and assigns, and is not for the benefit
of,  nor  may  any  provision  hereof  be  enforced  by,  any  other  Person.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN  WITNESS WHEREOF, each Buyer and the Company have caused their signature
page  to  this  Registration Rights Agreement to be duly executed as of the date
first  above  written.

     COMPANY:
     LOCATEPLUS HOLDINGS CORPORATION

     By:  /s/ Jon R. Latorella
     Name:  Jon R. Latorella
     Title:  President and Chief Executive Officer

<PAGE>
IN  WITNESS WHEREOF, each Buyer and the Company have caused their signature page
to  this  Registration Rights Agreement to be duly executed as of the date first
above  written.

     BUYER:
     CORNELL CAPITAL PARTNERS, L.P.

     By:  Yorkville Advisors, LLC
     Its:  Investment Manager

     By:  /s/ Mark Angelo
     Name:  Mark Angelo
     Title:  Portfolio ManagerSECURITY AGREEMENT

THIS SECURITY AGREEMENT (the "Agreement"), is entered into and made effective as
of  March  20,  2007, by and between LOCATEPLUS HOLDINGS CORPORATION, a Delaware
corporation with its principal place of business located at 100 Cummings Center,
Suite  235M,  Beverly,  MA  01915 (the "Parent"), and the each subsidiary of the
Parent  listed  on  Schedule  I  attached  hereto  (each  a  "Subsidiary,"  and
collectively  and  together  with  the  Parent,  the "Company"), in favor of the
BUYER(S)  (the  "Secured Party") listed on Schedule I attached to the Securities
Purchase  Agreement  (the "Securities Purchase Agreement") dated the date hereof
between  the  Company  and  the  Secured  Party.

WHEREAS,  The  Parent  shall issue and sell to the Secured Party, as provided in
the  Securities  Purchase Agreement, and the Secured Party shall purchase, up to
Six  Million  Dollars  ($6,000,000)  of  secured  convertible  debentures  (the
"Convertible  Debentures"),  which  shall  be  convertible  into  shares  of the
Parent's  common  stock,  par  value  $0.01, in the respective amounts set forth
opposite  each  Buyer(s)  name on Schedule I attached to the Securities Purchase
Agreement;

WHEREAS,  to induce the Secured Party to enter into the transaction contemplated
by  the  Securities Purchase Agreement, the Convertible Debentures, the Investor
Registration  Rights  Agreement of even date herewith between the Parent and the
Secured  Party  (the  "Investor  Registration  Rights  Agreement"),  and  the
Irrevocable Transfer Agent Instructions among the Parent, the Secured Party, the
Parent's  transfer  agent,  and  David  Gonzalez,  Esq.  (the  "Transfer  Agent
Instructions")  (collectively  referred to as the "Transaction Documents"), each
Company  hereby  grants  to  the Secured Party a security interest in and to the
pledged  property  of  each Company identified on Exhibit A hereto (collectively
referred  to  as  the  "Pledged  Property") to secure all of the Obligations (as
defined  below).

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

                                   ARTICLE 1.
                         DEFINITIONS AND INTERPRETATIONS

Section 1.1.     Recitals.

The  above  recitals  are true and correct and are incorporated herein, in their
entirety,  by  this  reference.

Section 1.2.     Interpretations.

Nothing  herein expressed or implied is intended or shall be construed to confer
upon any person other than the Secured Party any right, remedy or claim under or
by  reason  hereof.

<PAGE>

Section 1.3.     Obligations Secured.

     The  security  interest  created hereby in the Pledged Property constitutes
continuing  collateral  security  for  all  of the obligations of the Parent now
existing  or  hereinafter  incurred  to  the Buyers, whether oral or written and
whether  arising  before,  on  or  after  the  date  hereof  including,  without
limitation  following  obligations  (collectively,  the  "Obligations"):

     (a)  for so long as the Convertible Debentures are outstanding, the payment
by the Parent, as and when due and payable (by scheduled maturity, acceleration,
demand or otherwise), of all amounts from time to time owing by it in respect of
the  Securities  Purchase  Agreement,  the  Convertible Debentures and the other
Transaction  Documents;  and

     (b)  for  so  long  as  the Convertible Debentures are outstanding, the due
performance  and  observance  by the Parent of all of its other obligations from
time  to time existing in respect of any of the Transaction Documents, including
without  limitation,  the Parent's obligations with respect to any conversion or
redemption  rights  of  the  Secured  Party  under  the  Convertible Debentures.

                                   ARTICLE 2.
                       PLEDGED PROPERTY; EVENT OF DEFAULT

Section 2.1.     Pledged Property.

(a)     As  collateral  security  for all of the Obligations, the Company hereby
pledges  to the Secured Party, and creates in the Secured Party for its benefit,
a continuing security interest in and to all of the Pledged Property whether now
owned  or  hereafter  acquired.

(b)     Without limiting the generality of the foregoing, as additional security
for  the  payment and performance of the Obligations, each Company hereby grants
to  the Secured Party a continuing security interest in, and hereby collaterally
assigns to the Secured Party, all of such Company's right, title and interest in
and  to  each  Deposit  Account (as defined below) and in and to any deposits or
other  sums  at  any  time credited to each such Deposit Account.  In connection
with  the  foregoing,  each  Company  hereby authorizes and directs each bank or
other  depository  institution  which  maintains  any  Deposit Account to pay or
deliver  to  the  Secured  Party upon the Secured Party's written demand thereof
made  at  any  time after the occurrence of an Event of Default has occurred all
balances  in  each  Deposit  Account with such depository for application to the
Obligations  then  outstanding.

(c)     Simultaneously  with  the  execution and delivery of this Agreement, the
Company  shall  make,  execute,  acknowledge,  file,  record  and deliver to the
Secured Party any documents reasonably requested by the Secured Party to perfect
its  security  interest  in  the  Pledged  Property.  Simultaneously  with  the
execution  and  delivery  of  this  Agreement,  the Company shall make, execute,
acknowledge  and  deliver  to  the Secured Party such documents and instruments,
including,  without  limitation,  financing statements, certificates, affidavits
and  forms  as  may, in the Secured Party's reasonable judgment, be necessary to
effectuate,  complete

<PAGE>
or  perfect,  or  to continue and preserve, the security interest of the Secured
Party  in  the Pledged Property, and the Secured Party shall hold such documents
and  instruments as secured party, subject to the terms and conditions contained
herein.

Section 2.2.     Event of Default

An "Event of Default" shall be deemed to have occurred under this Agreement upon
an  Event  of  Default  under  and  as  defined  in  the Convertible Debentures.

                                   ARTICLE 3.
                          ATTORNEY-IN-FACT; PERFORMANCE

Section 3.1.     Secured Party Appointed Attorney-In-Fact.

Upon  the  occurrence and during the continuance of an Event of Default: (a) the
Company  hereby  appoints  the  Secured Party as its attorney-in-fact, with full
authority  in  the place and stead of the Company and in the name of the Company
or  otherwise,  from  time to time in the Secured Party's discretion to take any
action and to execute any instrument which the Secured Party may reasonably deem
necessary  to  accomplish  the  purposes  of  this Agreement, including, without
limitation,  to  receive and collect all instruments made payable to the Company
representing any payments in respect of the Pledged Property or any part thereof
and  to  give  full  discharge  for  the same; (b) the Secured Party may demand,
collect, receipt for, settle, compromise, adjust, sue for, foreclose, or realize
on  the Pledged Property as and when the Secured Party may determine, and (c) to
facilitate collection, the Secured Party may notify account debtors and obligors
on  any  Pledged  Property  to  make  payments  directly  to  the Secured Party.

Section 3.2.     Secured Party May Perform.

If  the  Company  fails  to  perform any agreement contained herein, the Secured
Party,  at  its  option,  may  itself  perform,  or  cause  performance of, such
agreement,  and  the  expenses  of  the  Secured  Party  incurred  in connection
therewith shall be included in the Obligations secured hereby and payable by the
Company  under  Section  8.3.

                                   ARTICLE 4.
                         REPRESENTATIONS AND WARRANTIES

Section 4.1.     Authorization; Enforceability.

Each  of the parties hereto represents and warrants that it has taken all action
necessary to authorize the execution, delivery and performance of this Agreement
and  the transactions contemplated hereby; and upon execution and delivery, this
Agreement  shall  constitute  a  valid  and binding obligation of the respective
party,  subject to applicable bankruptcy, insolvency, reorganization, moratorium
and  similar laws affecting creditors' rights or by the principles governing the
availability  of  equitable  remedies.

<PAGE>

Section 4.2.     Ownership of Pledged Property.

The Company represents and warrants that it is the legal and beneficial owner of
the  Pledged  Property  free and clear of any lien, security interest, option or
other  charge  or  encumbrance (each, a "Lien") except for the security interest
created  by  this  Agreement  and  other  Permitted Liens.  For purposes of this
Agreement,  "Permitted  Liens"  means: (1) the security interest created by this
Agreement,  (2)  existing Liens disclosed by the Company to the Secured Party in
any  of  the Transaction Documents; (3) inchoate Liens for taxes, assessments or
governmental  charges  or  levies  not yet due, as to which the grace period, if
any,  related  thereto has not yet expired, or being contested in good faith and
by  appropriate proceedings for which adequate reserves have been established in
accordance  with  GAAP;  (4)  Liens  of  carriers,  materialmen,  warehousemen,
mechanics  and  landlords and other similar Liens which secure amounts which are
not  yet overdue by more than 60 days or which are being contested in good faith
by  appropriate  proceedings;  (5)  licenses,  sublicenses,  leases or subleases
granted  to  other  Persons  not  materially interfering with the conduct of the
business  of  the  Company; (6) Liens securing capitalized lease obligations and
purchase  money  indebtedness  incurred  solely  for the purpose of financing an
acquisition or lease; (7) easements, rights-of-way, restrictions, encroachments,
municipal zoning ordinances and other similar charges or encumbrances, and minor
title  deficiencies,  in  each  case  not  securing  debt  and  not  materially
interfering  with  the conduct of the business of the Company and not materially
detracting from the value of the property subject thereto; (8) Liens arising out
of  the  existence  of  judgments  or  awards  which  judgments or awards do not
constitute  an  Event  of  Default; (9) Liens incurred in the ordinary course of
business in connection with workers compensation claims, unemployment insurance,
pension  liabilities  and  social  security  benefits  and  Liens  securing  the
performance  of  bids,  tenders,  leases and contracts in the ordinary course of
business,  statutory  obligations,  surety  bonds,  performance  bonds and other
obligations  of a like nature (other than appeal bonds) incurred in the ordinary
course  of  business  (exclusive  of  obligations  in respect of the payment for
borrowed  money);  (10)  Liens  in  favor  of  a  banking institution arising by
operation  of  law  encumbering  deposits  (including  the right of set-off) and
contractual set-off rights held by such banking institution and which are within
the  general  parameters  customary  in  the banking industry and only burdening
deposit  accounts  or  other  funds  maintained  with  a  creditor  depository
institution;  (11)  usual  and  customary  set-off  rights  in  leases and other
contracts;  and  (12)  escrows in connection with acquisitions and dispositions.

                                   ARTICLE 5.
                    DEFAULT; REMEDIES; SUBSTITUTE COLLATERAL

Section 5.1     Method of Realizing Upon the Pledged Property: Other Remedies.

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

(a)     The  Secured  Party  may exercise in respect of the Pledged Property, in
addition  to  any  other  rights  and  remedies provided for herein or otherwise
available  to it, all of the rights and remedies of a secured party upon default
under  the  Uniform  Commercial Code (whether or not the Uniform Commercial Code
applies  to  the  affected  Pledged  Property),  and  also  may  (i)  take

<PAGE>
absolute  control  of  the  Pledged  Property,  including,  without  limitation,
transfer  into  the  Secured  Party's  name  or  into the name of its nominee or
nominees  (to  the  extent  the  Secured  Party has not theretofore done so) and
thereafter  receive,  for  the  benefit  of the Secured Party, all payments made
thereon,  give  all  consents,  waivers and ratifications in respect thereof and
otherwise act with respect thereto as though it were the outright owner thereof,
(ii)  require  the  Company  to  assemble all or part of the Pledged Property as
directed  by  the  Secured Party and make it available to the Secured Party at a
place  or  places  to  be  designated  by  the  Secured Party that is reasonably
convenient  to both parties, and the Secured Party may enter into and occupy any
premises  owned  or leased by the Company where the Pledged Property or any part
thereof  is  located or assembled for a reasonable period in order to effectuate
the  Secured  Party's  rights  and  remedies  hereunder  or  under  law, without
obligation  to  the  Company  in  respect  of such occupation, and (iii) without
notice  except  as  specified  below  and  without  any obligation to prepare or
process the Pledged Property for sale, (A) sell the Pledged Property or any part
thereof  in one or more parcels at public or private sale, at any of the Secured
Party's offices or elsewhere, for cash, on credit or for future delivery, and at
such  price  or  prices  and upon such other terms as the Secured Party may deem
commercially  reasonable  and/or  (B)  lease,  license or dispose of the Pledged
Property  or  any  part  thereof  upon  such terms as the Secured Party may deem
commercially  reasonable.  The Company agrees that, to the extent notice of sale
or  any  other  disposition of the Pledged Property shall be required by law, at
least  ten  (10) days' notice to the Company of the time and place of any public
sale  or  the  time  after  which  any  private sale or other disposition of the
Pledged  Property  is  to be made shall constitute reasonable notification.  The
Secured  Party  shall  not be obligated to make any sale or other disposition of
any  Pledged  Property  regardless  of  notice  of  sale having been given.  The
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.  The
Company  hereby waives any claims against the Secured Party arising by reason of
the  fact  that  the price at which the Pledged Property may have been sold at a
private  sale was less than the price which might have been obtained at a public
sale  or  was  less  than  the  aggregate amount of the Obligations, even if the
Secured  Party  accepts the first offer received and does not offer such Pledged
Property  to  more  than one offeree, and waives all rights that the Company may
have  to require that all or any part of such Pledged Property be marshaled upon
any  sale (public or private) thereof.  The Company hereby acknowledges that (i)
any  such  sale of the Pledged Property by the Secured Party may be made without
warranty,  (ii)  the  Secured  Party may specifically disclaim any warranties of
title, possession, quiet enjoyment or the like, and (iii) such actions set forth
in  clauses  (i)  and  (ii)  above  shall  not  adversely  affect the commercial
reasonableness  of  any  such  sale  of  Pledged  Property.

(b)     Any  cash  held  by  the  Secured Party as Pledged Property and all cash
proceeds  received  by the Secured Party in respect of any sale of or collection
from,  or  other realization upon, all or any part of the Pledged Property shall
be  applied  (after payment of any amounts payable to the Secured Party pursuant
to  Section  8.3  hereof)  by  the Secured Party against, all or any part of the
Obligations  in such order as the Secured Party shall elect, consistent with the
provisions  of  the  Securities Purchase Agreement.  Any surplus of such cash or
cash  proceeds  held  by  the Secured Party and remaining after the indefeasible
payment  in  full  in  cash  of  all  of  the  Obligations shall be paid over to
whomsoever  shall  be  lawfully  entitled  to  receive the same or as a court of
competent  jurisdiction  shall  direct.

<PAGE>

(c)     In  the  event  that  the  proceeds  of  any  such  sale,  collection or
realization  are  insufficient  to pay all amounts to which the Secured Party is
legally  entitled, the Company shall be liable for the deficiency, together with
interest  thereon  at  the  rate  specified  in  the  Convertible Debentures for
interest  on  overdue  principal thereof or such other rate as shall be fixed by
applicable  law,  together with the costs of collection and the reasonable fees,
costs,  expenses  and  other  client  charges  of  any attorneys employed by the
Secured  Party  to  collect  such  deficiency.

(d)     The  Company hereby acknowledges that if the Secured Party complies with
any applicable state, provincial, or federal law requirements in connection with
a disposition of the Pledged Property, such compliance will not adversely affect
the  commercial  reasonableness  of any sale or other disposition of the Pledged
Property.

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

Section 5.2     Duties Regarding Pledged Property.

The  Secured  Party shall have no duty as to the collection or protection of the
Pledged  Property  or any income thereon or as to the preservation of any rights
pertaining  thereto,  beyond  the safe custody and reasonable care of any of the
Pledged  Property  actually  in  the  Secured  Party's  possession.

                                   ARTICLE 6.
                              AFFIRMATIVE COVENANTS

The  Company  covenants  and  agrees  that,  from  the date hereof and until the
Obligations  have  been  fully  paid and satisfied or the Convertible Debentures
have  been  fully converted, unless the Secured Party shall consent otherwise in
writing  (as  provided  in  Section  8.4  hereof):

Section 6.1.     Existence, Properties, Etc.

(a)     The  Company  shall do, or cause to be done, all things, or proceed with
due  diligence  with  any  actions  or courses of action, that may be reasonably
necessary  (i)  to maintain Company's due organization, valid existence and good
standing  under the laws of its state of incorporation, and (ii) to preserve and
keep  in  full  force  and  effect  all  qualifications,  licenses  and

<PAGE>
registrations  in those jurisdictions in which the failure to do so could have a
Material Adverse Effect (as defined below); and (b) the Company shall not do, or
cause  to  be done, any act impairing the Company's corporate power or authority
(i)  to carry on the Company's business as now conducted, and (ii) to execute or
deliver  this  Agreement or any other document delivered in connection herewith,
including,  without  limitation,  any UCC-1 Financing Statements required by the
Secured Party (which other loan instruments collectively shall be referred to as
the "Loan Instruments") to which it is or will be a party, or perform any of its
obligations  hereunder  or  thereunder.  For purpose of this Agreement, the term
"Material  Adverse  Effect"  shall  mean  any  material  and  adverse  affect as
determined  by  Secured Party in its reasonable discretion, whether individually
or  in  the  aggregate,  upon  (a)  the  Company's assets, business, operations,
properties  or  condition,  financial or otherwise; (b) the Company's ability to
make  payment  as and when due of all or any part of the Obligations; or (c) the
Pledged  Property.

Section 6.2.     Financial Statements and Reports.

The  Company  shall  furnish  to the Secured Party within a reasonable time such
financial  data  as  the  Secured  Party  may  reasonably  request.

Section 6.3.     Accounts and Reports.

The  Company  shall  maintain a standard system of accounting in accordance with
generally  accepted  accounting  principles  consistently  applied  ("GAAP") and
provide,  at  its  sole  expense,  to  the  Secured  Party  the  following:

(a)     as  soon  as  available,  a  copy  of  any notice or other communication
alleging  any nonpayment or other material breach or default, or any foreclosure
or  other  action  respecting any material portion of its assets and properties,
received respecting any of the indebtedness of the Company in excess of $500,000
(other  than  the Obligations), or any demand or other request for payment under
any guaranty, assumption, purchase agreement or similar agreement or arrangement
respecting  the indebtedness or obligations of others in excess of $500,000; and

(b)     within  fifteen (15) days after the making of each submission or filing,
a  copy  of  any  report, financial statement, notice or other document, whether
periodic  or  otherwise,  submitted  to  the  shareholders  of  the  Company, or
submitted  to  or filed by the Company with any governmental authority involving
or  affecting  (i)  the  Company  that  could  reasonably  be expected to have a
Material  Adverse  Effect;  (ii)  the Obligations; (iii) any part of the Pledged
Property;  or (iv) any of the transactions contemplated in this Agreement or the
Loan  Instruments  (except,  in  each  case,  to the extent any such submission,
filing, report, financial statement, notice or other document is posted on EDGAR
Online).

Section 6.4.     Maintenance of Books and Records; Inspection.

The  Company  shall  maintain its books, accounts and records in accordance with
GAAP,  and  permit  the  Secured  Party,  its  officers  and  employees  and any
professionals  designated  by  the  Secured Party in writing, at any time during
normal business hours and upon reasonable notice to visit and inspect any of its
properties  (including  but  not  limited  to  the  collateral  security

<PAGE>
described  in  the Transaction Documents and/or the Loan Instruments), corporate
books  and  financial records, and to discuss its accounts, affairs and finances
with  any employee, officer or director thereof (it being agreed that, unless an
Event  of  Default shall have occurred and be continuing, there shall be no more
than  two  (2)  such  visits  and  inspections  in  any  Fiscal  Year).

Section 6.5.     Maintenance and Insurance.

(a)     The  Company  shall  maintain  or  cause  to  be  maintained, at its own
expense,  all  of  its  material assets and properties in good working order and
condition, ordinary wear and tear excepted, making all necessary repairs thereto
and  renewals  and  replacements  thereof.

(b)     The  Company  shall  maintain  or  cause  to  be  maintained, at its own
expense, insurance in form, substance and amounts (including deductibles), which
the  Company  deems reasonably necessary to the Company's business, (i) adequate
to  insure  all  assets  and  properties  of  the Company of a character usually
insured  by  persons  engaged  in  the  same or similar business against loss or
damage  resulting  from  fire  or  other  risks included in an extended coverage
policy; (ii) against public liability and other tort claims that may be incurred
by  the  Company;  (iii)  as may be required by the Transaction Documents and/or
applicable  law  and  (iv)  as may be reasonably requested by Secured Party, all
with  financially  sound  and  reputable  insurers.

Section 6.6.     Contracts and Other Collateral.

The  Company  shall perform all of its obligations under or with respect to each
instrument,  receivable,  contract  and other intangible included in the Pledged
Property  to  which  the  Company  is now or hereafter will be party on a timely
basis  and  in  the manner therein required, including, without limitation, this
Agreement, except to the extent the failure to so perform such obligations would
not  reasonably  be  expected  to  have  a  Material  Adverse  Effect.

Section 6.7.     Defense of Collateral, Etc.

The Company shall defend and enforce its right, title and interest in and to any
part  of:  (a)  the Pledged Property; and (b) if not included within the Pledged
Property, those assets and properties whose loss would reasonably be expected to
have a Material Adverse Effect, each against all manner of claims and demands on
a  timely  basis  to the full extent permitted by applicable law (other than any
such  claims  and  demands  by  holders  of  Permitted  Liens).

Section 6.8.     Taxes and Assessments.

The  Company  shall  (a) file all material tax returns and appropriate schedules
thereto that are required to be filed under applicable law, prior to the date of
delinquency  (taking  into account any extensions of the original due date), (b)
pay  and  discharge  all material taxes, assessments and governmental charges or
levies  imposed  upon  the  Company,  upon  its  income  and profits or upon any
properties belonging to it, prior to the date on which penalties attach thereto,
and  (c)  pay all material taxes, assessments and governmental charges or levies
that,  if

<PAGE>
unpaid,  might  become  a  lien  or charge upon any of its properties; provided,
however,  that  the  Company in good faith may contest any such tax, assessment,
governmental  charge  or  levy described in the foregoing clauses (b) and (c) so
long  as  appropriate reserves are maintained with respect thereto if and to the
extent  required  by  GAAP.

Section 6.9.     Compliance with Law and Other Agreements.

The Company shall maintain its business operations and property owned or used in
connection  therewith  in  compliance with (a) all applicable federal, state and
local  laws,  regulations  and ordinances governing such business operations and
the  use  and  ownership  of  such  property,  and (b) all agreements, licenses,
franchises, indentures and mortgages to which the Company is a party or by which
the  Company  or  any of its properties is bound, except where the failure to so
comply  would  not  reasonably  be  expected  to have a Material Adverse Effect.

Section 6.10.     Notice of Default.

The  Company shall give written notice to the Secured Party of the occurrence of
any  Event  of  Default.

Section 6.11.     Notice of Litigation.

The  Company  shall  give  notice,  in  writing, to the Secured Party of (a) any
actions,  suits  or  proceedings  wherein  the  amount  at issue is in excess of
$250,000, instituted by any persons against the Company, or affecting any of the
assets  of  the  Company,  and (b) any dispute, not resolved within fifteen (15)
days  of  the  commencement thereof, between the Company on the one hand and any
governmental  or  regulatory  body  on the other hand, which might reasonably be
expected  to  have  a  Material  Adverse  Effect  on  the business operations or
financial  condition  of  the  Company.

Section  6.13.     Future  Subsidiaries.

If  the Company shall hereafter create or acquire any subsidiary, simultaneously
with  the  creation  or  acquisition of such subsidiary, the Company shall cause
such  subsidiary  to  grant to the Secured Party a security interest of the same
tenor  as  created  under  this  Agreement.

Section 6.14.     Establishment of Deposit Account, Dominion Account Agreements.

Within  ten  (10)  days of the date hereof, each Company, the Secured Party, and
each  applicable bank or other depository institution shall enter into a deposit
account  agreement  ("Deposit  Account Agreement") in the form of Exhibit B with
respect  to  each  of  the  Company's  savings,  passbook, money market or other
depository accounts, and all certificates of deposit, maintained by each Company
with  any  bank,  savings and loan association, credit union or other depository
institution  (each,  a  "Deposit  Account")  maintained  or used by each Company
providing dominion and control over such accounts to the Secured Party such that
upon notice by the Secured Party to such bank or other depository institution of
the  occurrence  of  an  Event  of

<PAGE>
Default  all  actions  under  such  account shall be taken solely at the Secured
Party's  direction.  Each  Company's  current  Deposit Accounts are set forth on
Schedule  6.14  attached  hereto.

Each  Company  shall  cause all cash, all collections and proceeds from accounts
receivable,  all  receipts  from credit card payments, and all proceeds from the
sale  of  any  Pledged  Property  to  be deposited into a Deposit Account in the
ordinary  course  of  business  and  consistent  with  past  practices.

While  any  Convertible  Debentures  remain  outstanding, the Company shall have
valid  and  effective  Deposit  Account  Agreements  in  place at all times with
respect  to  all  of  its  Deposit  Accounts.  No  Deposit  Account  shall  be
established,  used  or  maintained  by the Company unless it first enters into a
Deposit  Account  Agreement.

With  respect  to each Deposit Account, from an after the occurrence of an Event
of Default, the Secured Party shall have the right, at any time and from time to
time,  to  exercise  its rights under such Deposit Account Agreement, including,
for  the avoidance of any doubt, the exclusive right to give instructions to the
financial  institution  at  which  such  Deposit Account is maintained as to the
disposition  of  funds or other property on deposit therein or credited thereto.
The  Secured  Party  hereby  covenants and agrees that it will not send any such
notice  to  a  financial  institution  at  which  any  such  Deposit  Account is
maintained  directing  the disposition of funds or other property therein unless
and  until  the  occurrence  of  an  Event  of  Default.

                                   ARTICLE 7.
                               NEGATIVE COVENANTS

The Company covenants and agrees that, from the date hereof until the
Obligations have been fully paid and satisfied, the Company shall not, unless
the Secured Party shall consent otherwise in writing:

Section  7.1.     Liens  and  Encumbrances.

Directly  or  indirectly make, create, incur, assume or permit to exist any Lien
in,  to  or against any part of the Pledged Property other than Permitted Liens.

Section  7.2.     Restriction  on  Redemption  and  Cash  Dividends

Directly  or  indirectly, redeem, repurchase or declare or pay any cash dividend
or  distribution  on its capital stock without the prior express written consent
of  the  Secured  Party.

Section  7.3.     Incurrence  of  Indebtedness.

Directly  or  indirectly,  incur  or  guarantee,  assume  or suffer to exist any
indebtedness,  other  than  the  indebtedness  evidenced  by  the  Convertible
Debentures  and  other  Permitted Indebtedness.  "Permitted Indebtedness" means:
(i)  indebtedness  evidenced  by  Convertible  Debentures;  (ii)  indebtedness
described  on  the  Disclosure  Schedule  to  the  Securities  Purchase

<PAGE>
Agreement;  (iii)  indebtedness incurred solely for the purpose of financing the
acquisition  or  lease  of any equipment by the Company, including capital lease
obligations with no recourse other than to such equipment; (iv) indebtedness (A)
the  repayment  of which has been subordinated to the payment of the Convertible
Debentures  on  terms  and conditions acceptable to the Secured Party, including
with  regard to interest payments and repayment of principal, (B) which does not
mature or otherwise require or permit redemption or repayment prior to or on the
91st day after the maturity date of any Convertible Debentures then outstanding;
and  (C)  which  is  not  secured by any assets of the Company; (v) indebtedness
solely  between  the Company and/or one of its domestic subsidiaries, on the one
hand,  and  the  Company  and/or  one of its domestic subsidiaries, on the other
which  indebtedness  is  not  secured by any assets of the Company or any of its
subsidiaries,  provided  that  (x)  in each case a majority of the equity of any
such  domestic  subsidiary  is directly or indirectly owned by the Company, such
domestic  subsidiary  is  controlled by the Company and such domestic subsidiary
has executed a security agreement in the form of this Agreement and (y) any such
loan  shall  be evidenced by an intercompany note that is pledged by the Company
or its subsidiary, as applicable, as collateral pursuant to this Agreement; (vi)
reimbursement obligations in respect of letters of credit issued for the account
of  the  Company  or  any  of  its  subsidiaries  for  the  purpose  of securing
performance  obligations  of  the  Company  or  its subsidiaries incurred in the
ordinary  course  of  business  so long as the aggregate face amount of all such
letters  of credit does not exceed $500,000 at any one time; and (vii) renewals,
extensions and refinancing of any indebtedness described in clauses (i) or (iii)
of  this  subsection.

Section  7.4.     Places  of  Business.

Change  the  location  of its chief place of business, chief executive office or
any  place  of  business  disclosed  to the Secured Party, unless such change in
location  is  to  a  different location within the United States and the Company
provides  notice  to  the  Secured Party of new location within 10 days' of such
change  in  location.

                                   ARTICLE 8.
                                  MISCELLANEOUS

Section 8.1.     Notices.

All  notices  or other communications required or permitted to be given pursuant
to  this Agreement shall be in writing and shall be considered as duly given on:
(a)  the  date  of  delivery, if delivered in person or by nationally recognized
overnight  delivery  service  or  (b) five (5) days after mailing if mailed from
within the continental United States by certified mail, return receipt requested
to  the  party  entitled  to  receive  the  same:

If to the Secured Party:     Cornell Capital Partners, LP
     101 Hudson Street-Suite 3700
     Jersey City, New Jersey 07302
     Attention:  Mark Angelo
        Portfolio Manager
     Telephone:  (201) 986-8300

<PAGE>
     Facsimile:  (201) 985-8266

With a copy to:     David Gonzalez Rillo, Esq.
     101 Hudson Street, Suite 3700
     Jersey City, NJ 07302
     Telephone:  (201) 985-8300
     Facsimile:  (201) 985-8266

And if to the Company:     LocatePLUS Holdings Corporation
     100 Cummings Center, Suite 235M
     Beverly, MA 01915
     Attention:  Chief Executive Officer
     Telephone:
     Facsimile:

With a copy to:     Sichenzia Ross Friedman Ference LLP
     1065 Avenue of the Americas
     New York, NY 10018
     Attention:
     Telephone:  (212) 930-9700
     Facsimile:  (212) 930-9725

     Any  party  may  change  its  address  by  giving notice to the other party
stating its new address.  Commencing on the tenth (10th) day after the giving of
such notice, such newly designated address shall be such party's address for the
purpose of all notices or other communications required or permitted to be given
pursuant  to  this  Agreement.

Section 8.2.     Severability.

If  any provision of this Agreement shall be held invalid or unenforceable, such
invalidity or unenforceability shall attach only to such provision and shall not
in  any  manner  affect  or  render invalid or unenforceable any other severable
provision  of  this Agreement, and this Agreement shall be carried out as if any
such  invalid  or  unenforceable  provision  were  not  contained  herein.

Section 8.3.     Expenses.

In  the  event of an Event of Default, the Company will pay to the Secured Party
the  amount  of  any  and  all  reasonable out-of-pocket expenses, including the
reasonable  fees  and expenses of its counsel, which the Secured Party may incur
in connection with:  (i) the custody or preservation of, or the sale, collection
from,  or other realization upon, any of the Pledged Property; (ii) the exercise
or  enforcement of any of the rights of the Secured Party hereunder or (iii) the
failure  by  the  Company  to  perform  or observe any of the provisions hereof.

<PAGE>

Section 8.4.     Waivers, Amendments, Etc.

The  Secured  Party's delay or failure at any time or times hereafter to require
strict performance by Company of any undertakings, agreements or covenants shall
not  waive,  affect,  or  diminish  any  right  of  the Secured Party under this
Agreement  to  demand strict compliance and performance herewith.  Any waiver by
the  Secured  Party  of any Event of Default shall not waive or affect any other
Event  of  Default, whether such Event of Default is prior or subsequent thereto
and  whether  of  the  same  or  a  different  type.  None  of the undertakings,
agreements  and  covenants  of  the  Company contained in this Agreement, and no
Event  of Default, shall be deemed to have been waived by the Secured Party, nor
may  this  Agreement  be  amended,  changed  or  modified,  unless  such waiver,
amendment,  change  or  modification  is  evidenced  by an instrument in writing
specifying  such  waiver,  amendment,  change  or modification and signed by the
Secured  Party  in  the case of any such waiver, and signed by the Secured Party
and  the  Company  in  the  case  of any such amendment, change or modification.

Section 8.5.     Continuing Security Interest; Partial Release.

(a)  This  Agreement  shall create a continuing security interest in the Pledged
Property  and  shall:  (i)  remain  in  full  force  and effect until payment or
conversion  in  full  of  the  Convertible  Debentures; (ii) be binding upon the
Company  and  its  successors and assigns; and (iii) inure to the benefit of the
Secured  Party and its successors and assigns.  Upon the payment or satisfaction
in  full or conversion in full of the Convertible Debentures, this Agreement and
the  security  interest  created  hereby  shall  terminate,  and,  in connection
therewith,  the Company shall be entitled to the return, at its expense, of such
of  the  Pledged Property as shall not have been sold in accordance with Section
5.2  hereof  or  otherwise  applied pursuant to the terms hereof and the Secured
Party  shall  deliver  to  the  Company  such  documents  as  the  Company shall
reasonably  request  to  evidence  such  termination.

(b)     Effective  upon  the  closing  of a disposition of any Pledged Property,
provided the Secured Party consents in writing prior to such disposition or such
disposition  is  made  in the ordinary course of business, the security interest
granted hereunder in the Pledged Property so disposed of shall terminate and the
Secured  Party  shall  deliver  such  documents  as the Company shall reasonably
request  to  evidence such termination; provided, however, the security interest
granted  hereunder  in all remaining Pledged Property shall remain in full force
and  effect.

Section 8.6.     Independent Representation.

Each  party  hereto  acknowledges and agrees that it has received or has had the
opportunity  to  receive independent legal counsel of its own choice and that it
has been sufficiently apprised of its rights and responsibilities with regard to
the  substance  of  this  Agreement.

Section 8.7.     Applicable Law:  Jurisdiction.

This  Agreement shall be governed by and interpreted in accordance with the laws
of the State of New Jersey without regard to the principles of conflict of laws.
The  parties  further  agree

<PAGE>
that  any  action  between them shall be heard in Hudson County, New Jersey, and
expressly  consent  to  the  jurisdiction and venue of the Superior Court of New
Jersey,  sitting  in  Hudson County and the United States District Court for the
District of New Jersey sitting in Newark, New Jersey for the adjudication of any
civil  action  asserted  pursuant  to  this  Paragraph.

Section 8.8.     Waiver of Jury Trial.

AS  A  FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS AGREEMENT AND
TO  MAKE  THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY HEREBY WAIVES
ANY  RIGHT  TO  TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS
AGREEMENT  AND/OR  ANY  AND  ALL  OTHER  DOCUMENTS  RELATED TO THIS TRANSACTION.

Section 8.9.     Entire Agreement.

This Agreement constitutes the entire agreement among the parties and supersedes
any  prior  agreement  or  understanding  among them with respect to the subject
matter  hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  this  Security
Agreement  as  of  the  date  first  above  written.

     COMPANY:
     LOCATEPLUS HOLDINGS CORPORATION

     By: /s/ Jon R. Latorella
     Name:  Jon R. Latorella
     Title:  President and Chief Executive Officer

<PAGE>
IN  WITNESS WHEREOF, the parties hereto have executed this Security Agreement as
of  the  date  first  above  written.

     COMPANY:
     LOCATEPLUS CORPORATION

     By: /s/ Jon R. Latorella
     Name:  Jon R. Latorella
     Title:  Chief Executive Officer

<PAGE>
IN  WITNESS WHEREOF, the parties hereto have executed this Security Agreement as
of  the  date  first  above  written.

     COMPANY:
     WORLDWIDE INFORMATION, INC.

     By: /s/ Jon R. Latorella
     Name:  Jon R. Latorella
     Title:  Chief Executive Officer

<PAGE>
IN  WITNESS WHEREOF, the parties hereto have executed this Security Agreement as
of  the  date  first  above  written.

     COMPANY:
     CERTIFION CORPORATION

     By: /s/ Jon R. Latorella
     Name:  Jon R. Latorella
     Title:  Chief Executive Officer

<PAGE>
IN  WITNESS WHEREOF, the parties hereto have executed this Security Agreement as
of  the  date  first  above  written.

     COMPANY:
     DATAPHANT, INC.

     By: /s/ Jon R. Latorella
     Name:  Jon R. Latorella
     Title:  Chief Executive Officer

<PAGE>
IN  WITNESS WHEREOF, the parties hereto have executed this Security Agreement as
of  the  date  first  above  written.

     COMPANY:
     METRIGENICS, INC.

     By: /s/ Jon R. Latorella
     Name:  Jon R. Latorella
     Title:  Chief Executive Officer

<PAGE>
IN  WITNESS WHEREOF, the parties hereto have executed this Security Agreement as
of  the  date  first  above  written.

     SECURED PARTY:
     CORNELL CAPITAL PARTNERS, L.P.

     BY:  YORKVILLE ADVISORS, LLC
     ITS:  INVESTMENT MANAGER

     By:  /s/ Mark Angelo
     Name:  Mark Angelo
     Title:  Portfolio Manager

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