Document:

EX 10.2

    
      REGISTRATION
        RIGHTS AGREEMENT

      

      This
        Registration Rights Agreement (this “Agreement”)
        is
        made and entered into as of May 25, 2007, among Celsia Technologies, Inc.,
        a
        Nevada corporation (the “Company”)
        and
        the several purchasers signatory hereto (each such purchaser, a “Purchaser”
and,
        collectively, the “Purchasers”).

      

      This
        Agreement is made pursuant to the Securities Purchase Agreement, dated as
        of the
        date hereof, between the Company and each Purchaser (the “Purchase
        Agreement”).

      

      The
        Company and each Purchaser hereby agrees as follows:

      

      1.
         Definitions

      

      Capitalized
        terms used and not otherwise defined herein that are defined in the Purchase
        Agreement shall have the meanings given such terms in the Purchase
        Agreement.
        As used
        in this Agreement, the following terms shall have the following
        meanings:

      

      “Advice”
shall
        have the meaning set forth in Section 6(d).

      

      “Effectiveness
        Date”
means,
        with respect to the initial Registration Statement required to be filed
        hereunder, the 90th
        calendar
        day following the earlier of (i) the Filing Date of such Registration Statement
        or (ii) the date such initial Registration Statement is actually filed with
        the
        Commission and with respect to any additional Registration Statements which
        may
        be required pursuant to Section 3(c), the 90th
        calendar
        day following the date on which the Company first knows, or reasonably should
        have known, that such additional Registration Statement is required hereunder;
        provided,
        however,
        that in
        the event the Company is notified by the Commission 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.

      

      “Effectiveness
        Period”
shall
        have the meaning set forth in Section 2(a).

      

      “Event”
shall
        have the meaning set forth in Section 2(b).

      

      “Event
        Date”
shall
        have the meaning set forth in Section 2(b).

      

      “Filing
        Date”
means,
        with respect to the initial Registration Statement required hereunder, the
        earlier of (i) the 30th
        calendar
        day following the date the Company receives a written request from the Holders
        of at least 70% in interest of the Registrable Securities then outstanding
        to
        file the initial Registration Statement hereunder and (ii) the 180th
        calendar
        day following the date hereof, and, with respect to any additional Registration
        Statements which may be required pursuant to Section 3(c), the 30th
        calendar

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

      day
        following the date on which the Company first knows, or reasonably should
        have
        known, that such additional Registration Statement is required
        hereunder.

      

      “Holder”
or
        “Holders”
means
        the holder or holders, as the case may be, from time to time of Registrable
        Securities.

      

      “Indemnified
        Party”
shall
        have the meaning set forth in Section 5(c).

      

      “Indemnifying
        Party”
shall
        have the meaning set forth in Section 5(c).

      

      “Initial
        Registration Statement”
means
        the initial Registration Statement filed pursuant to this
        Agreement.

       

      “Initial
        Shares”
means
        a
        number of Registrable Securities equal to one-third of the number of shares
        of
        Common Stock issued and outstanding and held by non-affiliates of the Company
        immediately prior to the filing date of the Initial Registration
        Statement.

      

      “Losses”
shall
        have the meaning set forth in Section 5(a).

      

      “Plan
        of Distribution”
shall
        have the meaning set forth in Section 2(a). 

      

      “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.

      

      “Registrable
        Securities”
means
        (i) all of the shares of Common Stock issuable upon conversion in full of
        the
        Debentures, (ii) all shares of Common Stock issuable as interest or principal
        on
        the Debentures assuming all permissible interest and principal payments are
        made
        in shares of Common Stock and the Debentures are held until maturity, (iii)
        all
        Warrant Shares, (iv) any additional shares of Common Stock issuable in
        connection with any anti-dilution provisions in the Debentures or the Warrants
        (in each case, without giving effect to any limitations on conversion set
        forth
        in the Debenture or limitations on exercise set forth in the Warrant) and
        (v)
        any securities issued or issuable upon any stock split, dividend or other
        distribution, recapitalization or similar event with respect to the foregoing.
        

      

      “Registration
        Statement”
means
        the registration statement 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

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      thereto,
        and all material incorporated by reference or deemed to be incorporated by
        reference in such registration statement.

      

      “Rule
        415”
means
        Rule 415 promulgated by the Commission pursuant to the Securities Act, as
        such
        Rule may be amended or interpreted from time to time, or any similar rule
        or
        regulation hereafter adopted by the Commission having substantially the same
        purpose and effect as such Rule.

      

      “Rule
        424”
means
        Rule 424 promulgated by the Commission pursuant to the Securities Act, as
        such
        Rule may be amended or interpreted from time to time, or any similar rule
        or
        regulation hereafter adopted by the Commission having substantially the same
        purpose and effect as such Rule.

      

      “Selling
        Shareholder Questionnaire”
shall
        have the meaning set forth in Section 3(a).

      

      “SEC
        Guidance”
means
        (i) any publicly-available written or oral guidance, comments, requirements
        or
        requests of the Commission staff and (ii) the Securities Act.

       

      2.
         Shelf
        Registration

      

      (a) On
        or
        prior to each Filing Date, the Company shall prepare and file with the
        Commission a Registration Statement covering the resale of all or such portion
        of the Registrable Securities as permitted by SEC Guidance (provided that
        the
        Company shall use diligent efforts to advocate with the Commission for the
        registration of all of the Registrable Securities in accordance with the
        SEC
        Guidance, including without limitation, the Manual of Publicly Available
        Telephone Interpretations D.29) that are not then registered on an effective
        Registration Statement for an offering to be made on a continuous basis pursuant
        to Rule 415. The Registration Statement shall be on Form S-3 (except if the
        Company is not then eligible to register for resale the Registrable Securities
        on Form S-3, in which case such registration shall be on another appropriate
        form in accordance herewith) and shall contain (unless otherwise directed
        by at
        least an 85% majority in interest of the Holders) substantially the
“Plan
        of Distribution”
        attached hereto as Annex
        A.
        Subject
        to the terms of this Agreement, the Company shall use its best efforts to
        cause
        a Registration Statement to be declared effective under the Securities Act
        as
        promptly as possible after the filing thereof, but in any event prior to
        the
        applicable Effectiveness Date, and shall use its best efforts to keep such
        Registration Statement continuously effective under the Securities Act until
        all
        Registrable Securities covered by such Registration Statement have been sold,
        or
        may be sold without volume restrictions pursuant to Rule 144(k) (the
“Effectiveness
        Period”)
        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; provided, however, that each Holder shall provide the Company
        with such information as may reasonably be requested in order to determine
        whether such Registrable Securities may be sold pursuant to Rule 144(k).
        The Company shall telephonically request effectiveness of a
        Registration

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      Statement
        as of 5:00 p.m. New York City time on a Trading Day. The Company shall
        immediately notify the Holders via facsimile or by e-mail delivery of a “.pdf”
format data file of the effectiveness of a Registration Statement on the
        same
        Trading Day that the Company telephonically confirms effectiveness with the
        Commission, which shall be the date requested for effectiveness of a
        Registration Statement. The Company shall, by 9:30 a.m. New York City time
        on
        the Trading Day after the Effective Date, file a final Prospectus with the
        Commission as required by Rule 424. Failure to so notify the Holder within
        1
        Trading Day of such notification of effectiveness or failure to file a final
        Prospectus as foresaid shall be deemed an Event under Section 2(b). Notwithstanding
        any other provision of this Agreement and subject to the payment of liquidated
        damages in Section 2(b), if any SEC Guidance sets forth a limitation of the
        number of Registrable Securities permitted to be registered on a particular
        Registration Statement (and notwithstanding that the Company used diligent
        efforts to advocate with the Commission for the registration of all or a
        greater
        number of Registrable Securities), unless otherwise directed in writing by
        a
        Holder as to its Registrable Securities, the number of Registrable Securities
        to
        be registered on such Registration Statement will first be reduced by
        Registrable Securities represented by Warrant Shares (applied, in the case
        that
        some Warrant Shares may be registered, to the Holders on a pro rata basis
        based
        on the total number of unregistered Warrant Shares held by such Holders),
        and
        second by Registrable Securities represented by Conversion Shares (applied,
        in
        the case that some Conversion Shares may be registered, to the Holders on
        a pro
        rata basis based on the total number of unregistered Conversion Shares held
        by
        such Holders).

      

      (b) If:
        (i)
        the Initial Registration Statement is not filed on or prior to its Filing
        Date
        (if the Company files the Initial Registration Statement without affording
        the
        Holders the opportunity to review and comment on the same as required by
        Section
        3(a) herein, the Company shall be deemed to have not satisfied this clause
        (i)),
        or (ii) the Company fails to file with the Commission a request for acceleration
        of a Registration Statement 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 Commission that
        such Registration Statement will not be “reviewed” or not be subject to further
        review, or (iii) prior to the Effectiveness Date of a Registration Statement,
        the Company fails to file a pre-effective amendment and otherwise respond
        in
        writing to comments made by the Commission in respect of such Registration
        Statement within 20 Trading Days after the receipt of comments by or notice
        from
        the Commission that such amendment is required in order for such Registration
        Statement to be declared effective, or (iv) as to, in the aggregate among
        all
        Holders on a pro-rata basis based on their purchase of the Securities pursuant
        to the Purchase Agreement, a Registration Statement registering for resale
        all
        of the Initial Shares is not declared effective by the Commission by the
        Effectiveness Date of the Initial Registration Statement, or (v) all of the
        Registrable Securities are not registered for resale pursuant to one or more
        effective Registration Statements on or before May 25, 2009, or (vi) after
        the
        Effectiveness Date of a Registration Statement, such Registration Statement
        ceases for any reason to remain continuously effective as to all Registrable
        Securities included in such Registration Statement, or the Holders are otherwise
        not permitted to utilize the Prospectus therein to resell such Registrable
        Securities, for more than 20 consecutive Trading Days or more

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      than
        an
        aggregate of 30 Trading Days during any 12-month period (which need not be
        consecutive calendar days) (any such failure or breach being referred to
        as an
“Event”,
        and
        for purposes of clause (i), (iv) or (v) the date on which such Event occurs,
        or
        for purposes of clause (ii) the date on which such five Trading Day period
        is
        exceeded, or for purposes of clause (iii) the date which such 20 Trading
        Day
        period is exceeded, or for purposes of clause (vi) the date on which such
        20 or
        30 Trading Day period, as applicable, is exceeded being referred to as
“Event
        Date”),
        then,
        in addition to any other rights the Holders 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
        an
        amount in cash, as partial liquidated damages and not as a penalty, equal
        to
        1.0% of the aggregate purchase price paid by such Holder pursuant to the
        Purchase Agreement for any unregistered Registrable Securities 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, (2) in no event will the Company be liable for liquidated damages
        under
        this Agreement in excess of 1.0% of the aggregate Subscription Amount of
        the
        Holders in any 30-day period and (3) the maximum aggregate liquidated damages
        payable to a Holder under this Agreement shall be 24% of the aggregate
        Subscription Amount paid by such Holder pursuant to the Purchase Agreement.
        If
        the Company fails to pay any partial liquidated damages pursuant to this
        Section
        in full within seven days after the date payable, the Company will pay interest
        thereon at a rate of 18% per annum (or such lesser maximum amount that is
        permitted to be paid by applicable law) to the Holder, accruing daily from
        the
        date such partial liquidated damages are due until such amounts, plus all
        such
        interest thereon, are paid in full. 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.

       

      3.
         Registration
        Procedures.

       

      In
        connection with the Company’s registration obligations hereunder, the Company
        shall:

      

      (a) Not
        less
        than five Trading Days prior to the filing of each Registration Statement
        and
        not less than one Trading Day prior to the filing of any related Prospectus
        or
        any amendment or supplement thereto (including any document that would be
        incorporated or deemed to be incorporated therein by reference), the Company
        shall (i) furnish to each Holder 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 review of such Holders
        and
        (ii) cause its officers and directors, counsel and independent certified
        public
        accountants to respond to such inquiries as shall be necessary, in the
        reasonable opinion of respective counsel to each Holder, to conduct a reasonable
        investigation within the meaning of the Securities Act. The Company shall
        not
        file a Registration Statement or any such Prospectus or any amendments or
        supplements thereto to which the Holders of a majority of the Registrable
        Securities shall reasonably object in good faith, provided that the Company
        is
        notified of such objection in writing

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      no
        later
        than 5 Trading Days after the Holders have been so furnished copies of a
        Registration Statement or 2 Trading Days after the Holders have been so
        furnished copies of any related Prospectus or amendments or supplements thereto.
        Each Holder agrees to furnish to the Company a completed questionnaire in
        the
        form attached to this Agreement as Annex
        B
        (a
“Selling
        Shareholder Questionnaire”)
        not
        less than two Trading Days prior to the Filing Date or by the end of the
        fourth
        Trading Day following the date on which such Holder receives draft materials
        in
        accordance with this Section. 

      

      (b) (i)
        Prepare and file with the Commission such amendments, including post-effective
        amendments, to a Registration Statement and the Prospectus used in connection
        therewith as may be necessary to keep a Registration Statement continuously
        effective as to the applicable Registrable Securities for the Effectiveness
        Period and prepare and file with the Commission 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 Commission with respect to a Registration Statement or any amendment
        thereto and provide as promptly as reasonably possible to the Holders true
        and
        complete copies of all correspondence from and to the Commission relating
        to a
        Registration Statement (provided that the Company may excise any information
        contained therein which would constitute material non-public information
        as to
        any Holder which has not executed a confidentiality agreement with the Company);
        and (iv) comply in all material respects with the provisions of the Securities
        Act and the Exchange Act with respect to the disposition of all Registrable
        Securities covered by a Registration Statement during the applicable period
        in
        accordance (subject to the terms of this Agreement) with the intended methods
        of
        disposition by the Holders thereof set forth in such Registration Statement
        as
        so amended or in such Prospectus as so supplemented.

      

      (c) If
        during
        the Effectiveness Period and after the initial Registration Statement required
        to be filed hereunder has been declared effective by the Commission, the
        number
        of Registrable Securities at any time exceeds 100% of the number of shares
        of
        Common Stock then registered in a Registration Statement, then the Company
        shall
        file as soon as reasonably practicable, but in any case prior to the applicable
        Filing Date, an additional Registration Statement covering the resale by
        the
        Holders of not less than the number of such Registrable Securities.

      

      (d) Notify
        the Holders of Registrable Securities to be sold (which notice shall, pursuant
        to clauses (iii) through (vi) hereof, be accompanied by an instruction to
        suspend the use of the Prospectus until the requisite changes have been made)
        as
        promptly as reasonably possible (and, in the case of (i)(A) below, not less
        than
        2 Trading Days prior to such filing) and (if requested by any such Person)
        confirm such notice in writing no later than 2 Trading Days following the
        day
        (i)(A) when a Prospectus or any Prospectus supplement or post-effective
        amendment to a Registration Statement is proposed to be filed; (B) when the
        Commission notifies the Company whether there will be a “review” of such
        Registration Statement and whenever the Commission comments in writing
        on

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      such
        Registration Statement; and (C) with respect to a Registration Statement
        or any
        post-effective amendment, when the same has become effective; (ii) of any
        request by the Commission or any other federal or state governmental authority
        for amendments or supplements to a Registration Statement or Prospectus or
        for
        additional information; (iii) of the issuance by the Commission or any other
        federal or state governmental authority of any stop order suspending the
        effectiveness of a Registration Statement covering any or all of the Registrable
        Securities or the initiation of any Proceedings for that purpose; (iv) of
        the
        receipt by the Company of any notification with respect to the suspension
        of the
        qualification or exemption from qualification of any of the Registrable
        Securities for sale in any jurisdiction, or the initiation or threatening
        of any
        Proceeding for such purpose; (v) of the occurrence of any event or passage
        of
        time that makes the financial statements included in a Registration Statement
        ineligible for inclusion therein or any statement made in a Registration
        Statement or Prospectus or any document incorporated or deemed to be
        incorporated therein by reference untrue in any material respect or that
        requires any revisions to a Registration Statement, Prospectus or other
        documents so that, in the case of a Registration Statement or the Prospectus,
        as
        the case may be, it will not contain any untrue statement of a material fact
        or
        omit to state any 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; and (vi) the occurrence or existence of any pending
        corporate development with respect to the Company that the Company believes
        may
        be material and that, in the determination of the Company, makes it not in
        the
        best interest of the Company to allow continued availability of a Registration
        Statement or Prospectus, provided that any and all of such information shall
        remain confidential to each Holder until such information otherwise becomes
        public, unless disclosure by a Holder is required by law; provided,
        further,
        that
        notwithstanding each Holder’s agreement to keep such information confidential,
        the Holders make no acknowledgement that any such information is material,
        non-public information.

      

      (e) Use
        its
        best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
        of
        (i) any order suspending the effectiveness of a Registration Statement, or
        (ii)
        any suspension of the qualification (or exemption from qualification) of
        any of
        the Registrable Securities for sale in any jurisdiction, at the earliest
        practicable moment.

      

      (f) Furnish
        to each Holder, without charge, at least one conformed copy of each such
        Registration Statement and each amendment thereto, including financial
        statements and schedules, all documents incorporated or deemed to be
        incorporated therein by reference to the extent requested by such Person,
        and
        all exhibits to the extent requested by such Person (including those previously
        furnished or incorporated by reference) promptly after the filing of such
        documents with the Commission.

      

      (g) Subject
        to the terms of this Agreement, the Company hereby consents to the use of
        such
        Prospectus and each amendment or supplement thereto by each of the selling
        Holders in connection with the offering and sale of the Registrable Securities
        covered by such Prospectus and any amendment or supplement thereto, except
        after
        the giving of any notice pursuant to Section 3(d).

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

       

      (h) 
        The
        Company shall effect a filing with respect to the public offering contemplated
        by the Registration Statement (an “Issuer
        Filing”)
        with
        the National Association of Securities Dealers, Inc. (“NASD”)
        Corporate Financing Department pursuant to NASD Rule 2710(b)(10)(A)(i) within
        one Trading Day of the date that the Registration Statement is first filed
        with
        the Commission and pay the filing fee required by such Issuer Filing. The
        Company shall use commercially reasonable efforts to pursue the Issuer Filing
        until the NASD issues a letter confirming that it does not object to the
        terms
        of the offering contemplated by the Registration Statement. A copy of the
        Issuer
        Filing and all related correspondence with respect thereto shall be provided
        to
        FWS.

      

      (i) Prior
        to
        any resale of Registrable Securities by a Holder, use its commercially
        reasonable efforts to register or qualify or cooperate with the selling Holders
        in connection with the registration or qualification (or exemption from the
        Registration or qualification) of such Registrable Securities for the resale
        by
        the Holder under the securities or Blue Sky laws of such jurisdictions within
        the United States as any Holder reasonably requests in writing, to keep each
        registration or qualification (or exemption therefrom) effective during the
        Effectiveness Period and to do any and all other acts or things reasonably
        necessary to enable the disposition in such jurisdictions of the Registrable
        Securities covered by each Registration Statement; provided, that the Company
        shall not be required to qualify generally to do business in any jurisdiction
        where it is not then so qualified, subject the Company to any material tax
        in
        any such jurisdiction where it is not then so subject or file a general consent
        to service of process in any such jurisdiction.

      

      (j) If
        requested by the Holders, cooperate with the Holders to facilitate the timely
        preparation and delivery of certificates representing Registrable Securities
        to
        be delivered to a transferee pursuant to a Registration Statement, which
        certificates shall be free, to the extent permitted by the Purchase Agreement,
        of all restrictive legends, and to enable such Registrable Securities to
        be in
        such denominations and registered in such names as any such Holders may
        request.

      

      (k) Upon
        the
        occurrence of any event contemplated by Section 3(d), as promptly as reasonably
        possible under the circumstances taking into account the Company’s good faith
        assessment of any adverse consequences to the Company and its stockholders
        of
        the premature disclosure of such event, prepare a supplement or amendment,
        including a post-effective amendment, to a Registration Statement or a
        supplement to the related Prospectus or any document incorporated or deemed
        to
        be incorporated therein by reference, and file any other required document
        so
        that, as thereafter delivered, neither a Registration Statement nor such
        Prospectus will contain an untrue statement of a material fact or omit 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. If
        the
        Company notifies the Holders in accordance with clauses (iii) through (vi)
        of
        Section 3(d) above to suspend the use of any Prospectus until the requisite
        changes to such Prospectus have been made, then the Holders shall suspend
        use of
        such Prospectus. The Company will use its best efforts to

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      ensure
        that the use of the Prospectus may be resumed as promptly as is practicable.
        The
        Company shall be entitled to exercise its right under this Section 3(k) to
        suspend the availability of a Registration Statement and Prospectus, subject
        to
        the payment of partial liquidated damages pursuant to Section 2(b), for a
        period
        not to exceed 60 calendar days (which need not be consecutive days) in any
        12
        month period.

      

      (l) Comply
        with all applicable rules and regulations of the Commission.

      

      (m) The
        Company may require each selling Holder to furnish to the Company a certified
        statement as to the number of shares of Common Stock beneficially owned by
        such
        Holder and, if required by the Commission, the natural persons thereof that
        have
        voting and dispositive control over the Common Stock. During any periods
        that
        the Company is unable to meet its obligations hereunder with respect to the
        registration of the Registrable Securities solely because any Holder fails
        to
        furnish such information within three Trading Days of the Company’s request or a
        completed Selling Shareholder Questionnaire as described in Section 3(a)
        above,
        any liquidated damages that are accruing at such time as to such Holder only
        shall be tolled and any Event that may otherwise occur solely because of
        such
        delay shall be suspended as to such Holder only, until such information is
        delivered to the Company, and the Company shall be permitted to exclude such
        Holder from such Registration Statement, provided that as soon as such
        information and/or questionnaire is furnished, the Company shall use its
        best
        efforts to include such Holder on the Registration Statement after
        filing.

      

      4.
         Registration
        Expenses.
        All
        fees and expenses incident to the performance of or compliance with this
        Agreement by the Company shall be borne by the Company whether or not any
        Registrable Securities are sold pursuant to a Registration Statement. The
        fees
        and expenses referred to in the foregoing sentence shall include, without
        limitation, (i) all registration and filing fees (including, without limitation,
        fees and expenses) (A) with respect to filings required to be made with any
        Trading Market on which the Common Stock is then listed for trading, (B)
        in
        compliance with applicable state securities or Blue Sky laws reasonably agreed
        to by the Company in writing (including, without limitation, fees and
        disbursements of counsel for the Company in connection with Blue Sky
        qualifications or exemptions of the Registrable Securities) and (C) if not
        previously paid by the Company in connection with an Issuer Filing, with
        respect
        to any filing that may be required to be made by any broker through which
        a
        Holder intends to make sales of Registrable Securities with NASD Regulation,
        Inc. pursuant to the NASD Rule 2710, so long as the broker is receiving no
        more
        than a customary brokerage commission in connection with such sale, (ii)
        printing expenses (including, without limitation, expenses of printing
        certificates for Registrable Securities), (iii) messenger, telephone and
        delivery expenses, (iv) fees and disbursements of counsel for the Company,
        (v)
        Securities Act liability insurance, if the Company so desires such insurance,
        and (vi) fees and expenses of all other Persons retained by the Company in
        connection with the consummation of the transactions contemplated by this
        Agreement. In addition, the Company shall be responsible for all of its internal
        expenses incurred in connection with the consummation of the transactions
        contemplated by this Agreement (including, without limitation, all salaries
        and
        expenses of its officers and employees performing legal or accounting duties),
        the expense of any annual audit and the fees and expenses incurred in connection
        with the listing of the Registrable Securities on

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      any
        securities exchange as required hereunder. In no event shall the Company
        be
        responsible for any broker or similar commissions of any Holder or, except
        to
        the extent provided for in the Transaction Documents, any legal fees or other
        costs of the Holders.

      

      5.
         Indemnification.

      

      (a) Indemnification
        by the Company.
        The
        Company shall, notwithstanding any termination of this Agreement, indemnify
        and
        hold harmless each Holder, the officers, directors, members, partners, agents,
        brokers (including brokers who offer and sell Registrable Securities as
        principal as a result of a pledge or any failure to perform under a margin
        call
        of Common Stock), investment advisors and employees (and any other Persons
        with
        a functionally equivalent role of a Person holding such titles, notwithstanding
        a lack of such title or any other title) of each of them, each Person who
        controls any such Holder (within the meaning of Section 15 of the Securities
        Act
        or Section 20 of the Exchange Act) and the officers, directors, members,
        shareholders, partners, agents and employees (and any other Persons with
        a
        functionally equivalent role of a Person holding such titles, notwithstanding
        a
        lack of such title or any other title) of each such controlling Person, to
        the
        fullest extent permitted by applicable law, from and against any and all
        losses,
        claims, damages, liabilities, costs (including, without limitation, reasonable
        attorneys’ fees) and expenses (collectively, “Losses”),
        as
        incurred, arising out of or relating to (1) any untrue or alleged untrue
        statement of a material fact contained in a Registration Statement, any
        Prospectus or any form of prospectus or in any amendment or supplement thereto
        or in any preliminary prospectus, or arising out of or relating to any omission
        or alleged omission of a material fact required to be stated therein or
        necessary to make the statements therein (in the case of any Prospectus or
        supplement thereto, in light of the circumstances under which they were made)
        not misleading or (2) any violation or alleged violation by the Company of
        the
        Securities Act, the Exchange Act or any state securities law, or any rule
        or
        regulation thereunder, in connection with the performance of its obligations
        under this Agreement, except to the extent, but only to the extent, that
        (i)
        such untrue statements or omissions are based solely upon information regarding
        such Holder furnished in writing to the Company by such Holder expressly
        for use
        therein, or to the extent that such information relates to such Holder or
        such
        Holder’s proposed method of distribution of Registrable Securities and was
        reviewed and expressly approved in writing by such Holder expressly for use
        in a
        Registration Statement, such Prospectus or in any amendment or supplement
        thereto (it being understood that the Holder has approved Annex A hereto
        for
        this purpose) or (ii) in the case of an occurrence of an event of the type
        specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated
        or
        defective Prospectus after the Company has notified such Holder in writing
        that
        the Prospectus is outdated or defective and prior to the receipt by such
        Holder
        of the Advice contemplated in Section 6(d). The Company shall notify the
        Holders
        promptly of the institution, threat or assertion of any Proceeding arising
        from
        or in connection with the transactions contemplated by this Agreement of
        which
        the Company is aware.

      

      (b) Indemnification
        by Holders.
        Each
        Holder shall, severally and not jointly, indemnify and hold harmless the
        Company, its directors, officers, agents and employees,

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      each
        Person who controls the Company (within the meaning of Section 15 of the
        Securities Act and Section 20 of the Exchange Act), and the directors, officers,
        agents or employees of such controlling Persons, to the fullest extent permitted
        by applicable law, from and against all Losses, as incurred, to the extent
        arising out of or based solely upon: (x) such Holder’s failure to comply with
        the prospectus delivery requirements of the Securities Act or (y) any untrue
        or
        alleged untrue statement of a material fact contained in any Registration
        Statement, any Prospectus, or in any amendment or supplement thereto or in
        any
        preliminary prospectus, or arising out of or relating to any omission or
        alleged
        omission of a material fact required to be stated therein or necessary to
        make
        the statements therein not misleading (i) to the extent, but only to the
        extent,
        that such untrue statement or omission is contained in any information so
        furnished in writing by such Holder to the Company specifically for inclusion
        in
        such Registration Statement or such Prospectus or (ii) to the extent that
        such
        information relates to such Holder’s proposed method of distribution of
        Registrable Securities and was reviewed and expressly approved in writing
        by
        such Holder expressly for use in a Registration Statement (it being understood
        that the Holder has approved Annex A hereto for this purpose), such Prospectus
        or in any amendment or supplement thereto or (ii) in the case of an occurrence
        of an event of the type specified in Section 3(d)(iii)-(vi), the use by such
        Holder of an outdated or defective Prospectus after the Company has notified
        such Holder in writing that the Prospectus is outdated or defective and prior
        to
        the receipt by such Holder of the Advice contemplated in Section 6(d). In
        no
        event shall the liability of any selling Holder hereunder be greater in amount
        than the dollar amount of the net proceeds received by such Holder upon the
        sale
        of the Registrable Securities giving rise to such indemnification
        obligation.

      

      (c) Conduct
        of Indemnification Proceedings.
        If any
        Proceeding shall be brought or asserted against any Person entitled to indemnity
        hereunder (an “Indemnified
        Party”),
        such
        Indemnified Party shall promptly notify the Person from whom indemnity is
        sought
        (the “Indemnifying
        Party”)
        in
        writing, and the Indemnifying Party shall have the right to assume the defense
        thereof, including the employment of counsel reasonably satisfactory to the
        Indemnified Party and the payment of all fees and expenses incurred in
        connection with defense thereof; provided, that the failure of any Indemnified
        Party to give such notice shall not relieve the Indemnifying Party of its
        obligations or liabilities pursuant to this Agreement, except (and only)
        to the
        extent that it shall be finally determined by a court of competent jurisdiction
        (which determination is not subject to appeal or further review) that such
        failure shall have prejudiced the Indemnifying Party.

      

      An
        Indemnified Party shall have the right to employ separate counsel in any
        such
        Proceeding and to participate in the defense thereof, but the fees and expenses
        of such counsel shall be at the expense of such Indemnified Party or Parties
        unless: (1) the Indemnifying Party has agreed in writing to pay such fees
        and
        expenses; (2) the Indemnifying Party shall have failed promptly to assume
        the
        defense of such Proceeding and to employ counsel reasonably satisfactory
        to such
        Indemnified Party in any such Proceeding; or (3) the named parties to any
        such
        Proceeding (including any impleaded parties) include both such Indemnified
        Party
        and the Indemnifying Party, and counsel to the Indemnified Party shall
        reasonably believe that a material conflict of interest is
        likely

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

      to
        exist
        if the same counsel were to represent such Indemnified Party and the
        Indemnifying Party (in which case, if such Indemnified Party notifies the
        Indemnifying Party in writing that it elects to employ separate counsel at
        the
        expense of the Indemnifying Party, the Indemnifying Party shall not have
        the
        right to assume the defense thereof and the reasonable fees and expenses
        of no
        more than one separate counsel shall be at the expense of the Indemnifying
        Party). The Indemnifying Party shall not be liable for any settlement of
        any
        such Proceeding effected without its written consent, which consent shall
        not be
        unreasonably withheld or delayed. No Indemnifying Party shall, without the
        prior
        written consent of the Indemnified Party, effect any settlement of any pending
        Proceeding in respect of which any Indemnified Party is a party, unless such
        settlement includes an unconditional release of such Indemnified Party from
        all
        liability on claims that are the subject matter of such Proceeding.

      

      Subject
        to the terms of this Agreement, all reasonable fees and expenses of the
        Indemnified Party (including reasonable fees and expenses to the extent incurred
        in connection with investigating or preparing to defend such Proceeding in
        a
        manner not inconsistent with this Section) shall be paid to the Indemnified
        Party, as incurred, within ten Trading Days of written notice thereof to
        the
        Indemnifying Party; provided, that the Indemnified Party shall promptly
        reimburse the Indemnifying Party for that portion of such fees and expenses
        applicable to such actions for which such Indemnified Party is judicially
        determined to be not entitled to indemnification hereunder.

      

      (d) Contribution.
        If the
        indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
        Party or insufficient to hold an Indemnified Party harmless for any Losses,
        then
        each Indemnifying Party shall contribute to the amount paid or payable by
        such
        Indemnified Party, in such proportion as is appropriate to reflect the relative
        fault of the Indemnifying Party and Indemnified Party in connection with
        the
        actions, statements or omissions that resulted in such Losses as well as
        any
        other relevant equitable considerations. The relative fault of such Indemnifying
        Party and Indemnified Party shall be determined by reference to, among other
        things, whether any action in question, including any untrue or alleged untrue
        statement of a material fact or omission or alleged omission of a material
        fact,
        has been taken or made by, or relates to information supplied by, such
        Indemnifying Party or Indemnified Party, and the parties’ relative intent,
        knowledge, access to information and opportunity to correct or prevent such
        action, statement or omission. The amount paid or payable by a party as a
        result
        of any Losses shall be deemed to include, subject to the limitations set
        forth
        in this Agreement, any reasonable attorneys’ or other fees or expenses incurred
        by such party in connection with any Proceeding to the extent such party
        would
        have been indemnified for such fees or expenses if the indemnification provided
        for in this Section was available to such party in accordance with its
        terms.

      

      The
        parties hereto agree that it would not be just and equitable if contribution
        pursuant to this Section 5(d) were determined by pro rata allocation or by
        any
        other method of allocation that does not take into account the equitable
        considerations referred to in the immediately preceding paragraph.
        Notwithstanding the provisions of this Section 5(d), no Holder shall be required
        to contribute, in the aggregate, any amount in

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

      excess
        of
        the amount by which the net proceeds actually received by such Holder from
        the
        sale of the Registrable Securities subject to the Proceeding exceeds the
        amount
        of any damages that such Holder has otherwise been required to pay by reason
        of
        such untrue or alleged untrue statement or omission or alleged
        omission.

      

      The
        indemnity and contribution agreements contained in this Section are in addition
        to any liability that the Indemnifying Parties may have to the Indemnified
        Parties.

       

      6.
         Miscellaneous.

      

      (a) Remedies.
        In the
        event of a breach by the Company or by a Holder of any of their respective
        obligations under this Agreement, each Holder or the Company, as the case
        may
        be, in addition to being entitled to exercise all rights granted by law and
        under this Agreement, including recovery of damages, shall be entitled to
        specific performance of its rights under this Agreement. The Company and
        each
        Holder agree that monetary damages would not provide adequate compensation
        for
        any losses incurred by reason of a breach by it of any of the provisions
        of this
        Agreement and hereby further agrees that, in the event of any action for
        specific performance in respect of such breach, it shall not assert or shall
        waive the defense that a remedy at law would be adequate.

      

      (b) No
        Piggyback on Registrations.
        Except
        as set forth on Schedule
        6(b),
        neither
        the Company nor any of its security holders (other than the Holders in such
        capacity pursuant hereto) may include securities of the Company in the
        Registration Statements other than the Registrable Securities. The Company
        shall
        not file any other registration statements until all Registrable Securities
        are
        registered pursuant to a Registration Statement that is declared effective
        by
        the Commission, provided that this Section 6(b) shall not prohibit the Company
        from filing amendments to registration statements filed prior to the date
        of
        this Agreement.

      

      (c) Compliance.
        Each
        Holder covenants and agrees that it will comply with the prospectus delivery
        requirements of the Securities Act as applicable to it in connection with
        sales
        of Registrable Securities pursuant to a Registration Statement.

      

      (d) Discontinued
        Disposition.
        By its
        acquisition of Registrable Securities, each Holder agrees that, upon receipt
        of
        a notice from the Company of the occurrence of any event of the kind described
        in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue
        disposition of such Registrable Securities under a Registration Statement
        until
        it is advised in writing (the “Advice”)
        by the
        Company that the use of the applicable Prospectus (as it may have been
        supplemented or amended) may be resumed. The Company will use its best efforts
        to ensure that the use of the Prospectus may be resumed as promptly as it
        practicable. The Company agrees and acknowledges that any periods during
        which
        the Holder is required to discontinue the disposition of the Registrable
        Securities hereunder shall be subject to the provisions of Section
        2(b).

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

      (e) Piggy-Back
        Registrations.
        If at
        any time during the Effectiveness 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 Commission 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 Holder a written notice of such determination
        and, if
        within fifteen days after the date of such notice, any such Holder shall
        so
        request in writing, the Company shall include in such registration statement
        all
        or any part of such Registrable Securities such Holder requests to be
        registered; provided,
        however,
        that
        the Company shall not be required to register any Registrable Securities
        pursuant to this Section 6(e) 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.

      

      (f) Amendments
        and Waivers.
        The
        provisions of this Agreement, including the provisions of this sentence,
        may not
        be amended, modified or supplemented, and waivers or consents to departures
        from
        the provisions hereof may not be given, unless the same shall be in writing
        and
        signed by the Company and the Holders of 70% or more of the then outstanding
        Registrable Securities (including, for this purpose, any Registrable Securities
        issuable upon conversion or exercise of any Security). If a Registration
        Statement does not register all of the Registrable Securities pursuant to
        a
        waiver or amendment done in compliance with the previous sentence, then the
        number of Registrable Securities to be registered for each Holder shall be
        reduced pro rata among all Holders and each Holder shall have the right to
        designate which of its Registrable Securities shall be omitted from such
        Registration Statement. Notwithstanding the foregoing, a waiver or consent
        to
        depart from the provisions hereof with respect to a matter that relates
        exclusively to the rights of Holders and that does not directly or indirectly
        affect the rights of other Holders may be given by Holders of all of the
        Registrable Securities to which such waiver or consent relates; provided,
        however,
        that
        the provisions of this sentence may not be amended, modified, or supplemented
        except in accordance with the provisions of the immediately preceding sentence.
        

      

      (g) Notices.
        Any and
        all notices or other communications or deliveries required or permitted to
        be
        provided hereunder shall be delivered as set forth in the Purchase Agreement.
        

      

      (h) Successors
        and Assigns.
        This
        Agreement shall inure to the benefit of and be binding upon the successors
        and
        permitted assigns of each of the parties and shall inure to the benefit of
        each
        Holder. The Company may not assign (except by merger) its rights or obligations
        hereunder without the prior written consent of all of the Holders of the
        then-outstanding Registrable Securities. Each Holder may assign their respective
        rights hereunder in the manner and to the Persons as permitted under the
        Purchase Agreement.

      

      (i) No
        Inconsistent Agreements.
        Neither
        the Company nor any of its Subsidiaries has entered, as of the date hereof,
        nor
        shall the Company or any of its Subsidiaries, on or after the date of this
        Agreement, enter into any agreement with respect to its securities, that
        would
        have the effect of impairing the rights granted to the Holders in this Agreement
        or otherwise conflicts

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

      with
        the
        provisions hereof. Except as set forth on the Disclosure Schedules to the
        Purchase Agreement, neither the Company nor any of its subsidiaries has
        previously entered into any agreement granting any registration rights with
        respect to any of its securities to any Person that have not been satisfied
        in
        full.

      

      (j) Execution
        and Counterparts.
        This
        Agreement may be executed in two or more counterparts, all of which when
        taken
        together shall be considered one and the same agreement and shall become
        effective when counterparts have been signed by each party and delivered
        to the
        other party, it being understood that both parties need not sign the same
        counterpart. In the event that any signature is delivered by facsimile
        transmission or by e-mail delivery of a “.pdf” format data file, such signature
        shall create a valid and binding obligation of the party executing (or on
        whose
        behalf such signature is executed) with the same force and effect as if such
        facsimile or “.pdf” signature page were an original thereof.

      

      (k) Governing
        Law.
        All
        questions concerning the construction, validity, enforcement and interpretation
        of this Agreement shall be determined in accordance with the provisions of
        the
        Purchase Agreement.

      

      (l) Cumulative
        Remedies.
        The
        remedies provided herein are cumulative and not exclusive of any other remedies
        provided by law.

      

      (m) Severability.
        If any
        term, provision, covenant or restriction of this Agreement is held by a court
        of
        competent jurisdiction to be invalid, illegal, void or unenforceable, the
        remainder of the terms, provisions, covenants and restrictions set forth
        herein
        shall remain in full force and effect and shall in no way be affected, impaired
        or invalidated, and the parties hereto shall use their commercially reasonable
        efforts to find and employ an alternative means to achieve the same or
        substantially the same result as that contemplated by such term, provision,
        covenant or restriction. It is hereby stipulated and declared to be the
        intention of the parties that they would have executed the remaining terms,
        provisions, covenants and restrictions without including any of such that
        may be
        hereafter declared invalid, illegal, void or unenforceable.

      

      (n) Headings.
        The
        headings in this Agreement are for convenience only, do not constitute a
        part of
        the Agreement and shall not be deemed to limit or affect any of the provisions
        hereof.

      

      (o) Independent
        Nature of Holders’ Obligations and Rights.
        The
        obligations of each Holder hereunder are several and not joint with the
        obligations of any other Holder hereunder, and no Holder shall be responsible
        in
        any way for the performance of the obligations of any other Holder hereunder.
        Nothing contained herein or in any other agreement or document delivered
        at any
        closing, and no action taken by any Holder pursuant hereto or thereto, shall
        be
        deemed to constitute the Holders as a partnership, an association, a joint
        venture or any other kind of entity, or create a presumption that the Holders
        are in any way acting in concert with respect to such obligations or the
        transactions contemplated by this Agreement. Each Holder shall be entitled
        to
        protect and enforce its rights, including without limitation the rights arising
        out of this Agreement, and it shall not be necessary for any other Holder
        to be
        joined as an additional party in any proceeding for such purpose.

       

       

      ********************

      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

      

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

       

       

      
        	
                CELSIA
                  TECHNOLOGIES, INC.

              
	 
	 
	
                By: 
                  /s/
                  Michael Karpheden

                
                  

                

                Name:
                  Michael Karpheden

                Title:
                  Chief Financial Officer

              

      

           

      

      

      

      

      

      

      

      

      [SIGNATURE
        PAGE OF HOLDERS FOLLOWS]

      

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

      [SIGNATURE
        PAGE OF HOLDERS TO CSAT RRA]

      

       

      Name
        of
        Holder: __________________________

      

      Signature
        of Authorized Signatory of Holder:
        __________________________*

      

      Name
        of
        Authorized Signatory: _________________________

      

      Title
        of
        Authorized Signatory: __________________________

       

      

      

      [SIGNATURE
        PAGES CONTINUE]

      

      

      *
        Executed by each Holder

       

      
        
           

        

          -17-EX 10.3

    
      SECURITY
        AGREEMENT

      

      This
        SECURITY AGREEMENT, dated as of May 25, 2007 (this “Agreement”),
        is
        among Celsia Technologies, Inc., a Nevada corporation
        (the
        “Company”),
        all
        of the Subsidiaries of the Company
        (such
        subsidiaries,
        the
“Guarantors”
        and
        together with the Company,
        the
“Debtors”)
        and
        the holders of the Company’s 8% Secured Convertible Debentures due May 25, 2010
        and issued on May 25, 2007 in the original aggregate principal amount of
        $8,142,847 (collectively, the “Debentures”)
        signatory hereto, their endorsees, transferees and assigns (collectively,
        the
“Secured
        Parties”).

      

      W
        I T N E S S E T H:

      

      WHEREAS,
        pursuant to the Purchase Agreement (as defined in the Debentures), the Secured
        Parties have severally agreed to extend the loans to the Company evidenced
        by
        the Debentures; 

      

      WHEREAS,
        pursuant to a certain Subsidiary Guarantee, dated as of the date hereof (the
        “Guarantee”),
        the
        Guarantors
        have
        jointly and severally agreed to guarantee and act as surety for payment of
        such
        Debentures; and

      

      WHEREAS,
        in order to induce the Secured Parties to extend the loans evidenced by the
        Debentures, each Debtor has agreed to execute and deliver to the Secured
        Parties
        this Agreement and to grant the Secured Parties, pari passu
        with
        each other Secured Party and through the Agent, a security interest in certain
        property of such Debtor to secure the prompt payment, performance and discharge
        in full of all of the Company’s obligations under the Debentures and the
        Guarantors’ obligations under the Guarantee.

      

      NOW,
        THEREFORE, in consideration of the agreements herein contained and for other
        good and valuable consideration, the receipt and sufficiency of which is
        hereby
        acknowledged, the parties hereto hereby agree as follows:

      

      1.
         Certain
        Definitions.
        As used
        in this Agreement, the following terms shall have the meanings set forth
        in this
        Section 1. Terms used but not otherwise defined in this Agreement that are
        defined in Article 9 of the UCC (such as “account”, “chattel paper”, “commercial
        tort claim”, “deposit account”, “document”, “equipment”, “fixtures”, “general
        intangibles”, “goods”, “instruments”, “inventory”, “investment property”,
“letter-of-credit rights”, “proceeds” and “supporting obligations”) shall have
        the respective meanings given such terms in Article 9 of the UCC.

      

      (a)
         “Collateral”
means
        the collateral in which the Secured Parties are granted a security interest
        by
        this Agreement and which shall include the following personal property of
        the
        Debtors, whether presently owned or existing or hereafter acquired or coming
        into existence, wherever situated, and all additions and accessions thereto
        and
        all substitutions and replacements thereof, and all proceeds, products and
        accounts thereof,

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      including,
        without limitation, all proceeds from the sale or transfer of the Collateral
        and
        of insurance covering the same and of any tort claims in connection
        therewith,
        and all
        dividends, interest, cash, notes, securities, equity interest or other property
        at any time and from time to time acquired, receivable or otherwise distributed
        in respect of, or in exchange for, any or all of the Pledged Securities (as
        defined below):

      

      (i)
        All
        goods, including, without limitation, (A) all machinery, equipment, computers,
        motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special
        and
        general tools, fixtures, test and quality control devices and other equipment
        of
        every kind and nature and wherever situated, together with all documents
        of
        title and documents representing the same, all additions and accessions thereto,
        replacements therefor, all parts therefor, and all substitutes for any of
        the
        foregoing and all other items used and useful in connection with any Debtor’s
        businesses and all improvements thereto; and (B) all inventory;

      

      (ii)
         All
        contract rights and other general intangibles, including, without limitation,
        all partnership interests, membership interests, stock or other securities,
        rights
        under any of the Organizational Documents, agreements related to the Pledged
        Securities, licenses,
        distribution and other agreements, computer software (whether “off-the-shelf”,
        licensed from any third party or developed by any Debtor), computer software
        development rights, leases, franchises, customer lists, quality control
        procedures, grants and rights, goodwill, trademarks, service marks, trade
        styles, trade names, patents, patent applications, copyrights, and income
        tax
        refunds; 

       

      (iii)
         All
        accounts, together with all instruments, all documents of title representing
        any
        of the foregoing, all rights in any merchandising, goods, equipment, motor
        vehicles and trucks which any of the same may represent, and all right, title,
        security and guaranties with respect to each account, including any right
        of
        stoppage in transit; 

      

      (iv)
         All
        documents, letter-of-credit rights, instruments and chattel paper;

      

      (v) All
        commercial tort claims;

      

      (vi) All
        deposit accounts and all cash (whether or not deposited in such deposit
        accounts);

      

      (vii) All
        investment property;

      

       (viii) All
        supporting obligations; and

      

      (ix) All
        files, records, books of account, business papers, and computer programs;
        and

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      (x) the
        products and proceeds of all of the foregoing Collateral set forth in clauses
        (i)-(ix) above.

      

      Without
        limiting the generality of the foregoing, the “Collateral”
shall
        include all investment property and general intangibles respecting ownership
        and/or other equity interests in each Guarantor, including, without limitation,
        the shares of capital stock and the other equity interests listed on
Schedule
        H
        hereto
        (as the same may be modified from time to time pursuant to the terms hereof),
        and any other shares of capital stock and/or other equity interests of any
        other
        direct or indirect subsidiary of any Debtor obtained in the future, and,
        in each
        case, all certificates representing such shares and/or equity interests and,
        in
        each case, all rights, options, warrants, stock, other securities and/or
        equity
        interests that may hereafter be received, receivable or distributed in respect
        of, or exchanged for, any of the foregoing and all rights arising under or
        in
        connection with the Pledged Securities, including, but not limited to, all
        dividends, interest and cash.

       

      Notwithstanding
        the foregoing, nothing herein shall be deemed to constitute an assignment
        of any
        asset which, in the event of an assignment, becomes void by operation of
        applicable law or the assignment of which is otherwise prohibited by applicable
        law (in each case to the extent that such applicable law is not overridden
        by
        Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable
        law);
        provided, however, that to the extent permitted by applicable law, this
        Agreement shall create a valid security interest in such asset and, to the
        extent permitted by applicable law, this Agreement shall create a valid security
        interest in the proceeds of such asset.

      

      (b) Further,
        notwithstanding the foregoing (a) or anything else in this Agreement to the
        contrary, for purposes hereof, the term “Collateral” shall not include assets
        owned by or held directly by Celsia Technologies UK Limited, a company formed
        under the laws of England and Wales (“Celsia UK”) or Celsia Technologies Korea,
        Inc., a Korean corporation (“Celsia Korea”). The grant of a security interest in
        the assets of Celsia UK and Celsia Korea shall be pursuant to, and governed
        by,
        the UK Security Agreement and Korean Security Agreement (“General Security
        Agreement”), respectively, (each, as defined in the Purchase Agreement), each to
        be delivered to the Purchasers at the Closing pursuant to the terms of the
        Purchase Agreement, it being understood that Celsia UK and Celsia Korea are
        parties hereto only for the purposes of making the representations and
        warranties of such entities contained herein. 

       

      For
        the
        purpose of this Agreement and the Korean Security Agreement described above,
        it
        is understood and agreed that the provisions of this Agreement other than
        those
        applicable to Collateral shall apply to and be deemed as an integral part
        of
        Korean Security Agreement, mutates
        mutandis
        unless
        repugnant to the terms of Korean Security Agreement, which exclusively
        establishes the security interest of the Secured Parties in the assets held
        by
        Celsia Korea.

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      

      (c)
         “Intellectual
        Property”
means
        the collective reference to all rights, priorities and privileges relating
        to
        intellectual property, whether arising under United States, multinational
        or
        foreign laws or otherwise, including, without limitation, (i) all copyrights
        arising under the laws of the United States, any other country or any political
        subdivision thereof, whether registered or unregistered and whether published
        or
        unpublished, all registrations and recordings thereof, and all applications
        in
        connection therewith, including, without limitation, all registrations,
        recordings and applications in the United States Copyright Office, (ii) all
        letters patent of the United States, any other country or any political
        subdivision thereof, all reissues and extensions thereof, and all applications
        for letters patent of the United States or any other country and all divisions,
        continuations and continuations-in-part thereof, (iii) all trademarks, trade
        names, corporate names, company names, business names, fictitious business
        names, trade dress, service marks, logos, domain names and other source or
        business identifiers, and all goodwill associated therewith, now existing
        or
        hereafter adopted or acquired, all registrations and recordings thereof,
        and all
        applications in connection therewith, whether in the United States Patent
        and
        Trademark Office or in any similar office or agency of the United States,
        any
        State thereof or any other country or any political subdivision thereof,
        or
        otherwise, and all common law rights related thereto, (iv) all trade secrets
        arising under the laws of the United States, any other country or any political
        subdivision thereof, (v) all rights to obtain any reissues, renewals or
        extensions of the foregoing, (vi) all licenses for any of the foregoing,
        and
        (vii) all causes of action for infringement of the foregoing.

      

      (d) “Majority
        in Interest”
means,
        at any time of determination, the majority in interest (based on
        then-outstanding principal amounts of Debentures at the time of such
        determination) of the Secured Parties.

      

      (e) “Necessary
        Endorsement”
means
        undated stock powers endorsed in blank or other proper instruments of assignment
        duly executed and such other instruments or documents as the Agent (as that
        term
        is defined below) may reasonably request.

      

      (f)
         “Obligations”
means
        all of the liabilities
        and obligations (primary, secondary, direct, contingent, sole, joint or several)
        due or to become due, under
        this Agreement, the Debentures, the Guarantee and any other instruments,
        agreements or other documents executed and/or delivered in connection herewith
        or therewith, in each case, whether now or hereafter existing, voluntary
        or
        involuntary, direct or indirect, absolute or contingent, liquidated or
        unliquidated, whether or not jointly owed with others, and whether or not
        from
        time to time decreased or extinguished and later increased, created or incurred,
        and all or any portion of such obligations or liabilities that are paid,
        to the
        extent all or any part of such payment is avoided or recovered directly or
        indirectly from any of the Secured Parties as a preference, fraudulent transfer
        or otherwise as such obligations may be amended, supplemented, converted,
        extended or modified from time to time. Without limiting the generality of
        the
        foregoing, the term “Obligations” shall include, without limitation: (i)
        principal of, and interest on the Debentures and the loans extended pursuant
        thereto; (ii) any and all other fees, indemnities, costs, obligations and
        liabilities of

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      the
        Debtors from time to time under or in connection with this Agreement, the
        Debentures, the Guarantee and any other instruments, agreements or other
        documents executed and/or delivered in connection herewith or therewith;
        and
        (iii) all amounts (including but not limited to post-petition interest) in
        respect of the foregoing that would be payable but for the fact that the
        obligations to pay such amounts are unenforceable or not allowable due to
        the
        existence of a bankruptcy, reorganization or similar proceeding involving
        any
        Debtor.

      

      (g)
         “Organizational
        Documents”
means
        with respect to any Debtor, the documents by which such Debtor was organized
        (such as a certificate of incorporation, certificate of limited partnership
        or
        articles of organization, and including, without limitation, any certificates
        of
        designation for preferred stock or other forms of preferred equity) and which
        relate to the internal governance of such Debtor (such as bylaws, a partnership
        agreement or an operating, limited liability or members agreement).

      

      (h)
         “Pledged
        Securities”
shall
        have the meaning ascribed to such term in Section 4(i).

      

      (i) “Qualified
        Purchaser”
means
        a
        Purchaser whose initial Subscription Amount under the Purchase Agreement
        is
        $2,000,000 or more.

      

      (j) “UCC”
means
        the Uniform Commercial Code of the State of New York and or any other applicable
        law of any state or states which has jurisdiction with respect to all, or
        any
        portion of, the Collateral or this Agreement, from time to time. It is the
        intent of the parties that defined terms in the UCC should be construed in
        their
        broadest sense so that the term “Collateral” will be construed in its broadest
        sense. Accordingly if there are, from time to time, changes to defined terms
        in
        the UCC that broaden the definitions, they are incorporated herein and if
        existing definitions in the UCC are broader than the amended definitions,
        the
        existing ones shall be controlling. 

      

      2.
         Grant
        of Security Interest in Collateral.
        As an
        inducement for the Secured Parties to extend the loans as evidenced by the
        Debentures and to secure the complete and timely payment, performance and
        discharge in full, as the case may be, of all of the Obligations, each Debtor
        hereby unconditionally and irrevocably pledges, grants and hypothecates to
        the
        Secured Parties a security interest in and to, a lien upon and a right of
        set-off against all of their respective right, title and interest of whatsoever
        kind and nature in and to, the Collateral (a “Security
        Interest”
and
        collectively, the “Security
        Interests”).

      

      3. Delivery
        of Certain Collateral.
        Contemporaneously or prior to the execution of this Agreement, each Debtor
        shall
        deliver or cause to be delivered to the Agent (a) any and all certificates
        and
        other instruments representing or evidencing the Pledged Securities, and
        (b) any
        and all certificates and other instruments or documents representing any
        of the
        other Collateral, in each case, together with all Necessary Endorsements.
        The
        Debtors are, contemporaneously with the execution hereof, delivering to Agent,
        or have previously delivered to Agent, a true and correct copy of each
        Organizational Document governing any of the Pledged
        Securities.

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

       

      4.  Representations,
        Warranties, Covenants and Agreements of the Debtors.
        Except
        as set forth under the corresponding section of the disclosure schedules
        delivered to the Secured Parties concurrently herewith (the “Disclosure
        Schedules”),
        which
        Disclosure Schedules shall be deemed a part hereof, each Debtor represents
        and
        warrants to, and covenants and agrees with, the Secured Parties as
        follows:

      

      (a)
        Each
        Debtor has the requisite corporate, partnership, limited liability company
        or
        other power and authority to enter into this Agreement and otherwise to carry
        out its obligations hereunder. The execution, delivery and performance by
        each
        Debtor of this Agreement and the filings contemplated therein have been duly
        authorized by all necessary action on the part of such Debtor and no further
        action is required by such Debtor. This Agreement has been duly executed
        by each
        Debtor. This Agreement constitutes the legal, valid and binding obligation
        of
        each Debtor, enforceable against each Debtor in accordance with its terms
        except
        as such enforceability may be limited by applicable bankruptcy, insolvency,
        reorganization and similar laws of general application relating to or affecting
        the rights and remedies of creditors and by general principles of
        equity.

      

      (b)
         The
        Debtors have no place of business or offices where their respective books
        of
        account and records are kept (other than temporarily at the offices of its
        attorneys or accountants) or places where Collateral is stored or located,
        except as set forth on Schedule
        A
        attached
        hereto. Except as specifically set forth on Schedule
        A,
        each
        Debtor is the record owner of the real property where such Collateral is
        located, and there exist no mortgages or other liens on any such real property
        except for Permitted Liens (as defined in the Debentures). Except as disclosed
        on Schedule
        A,
        none of
        such Collateral is in the possession of any consignee, bailee, warehouseman,
        agent or processor.

      

      (c)
         Except
        for Permitted Liens (as defined in the Debentures) and except as set forth
        on
Schedule
        B
        attached
        hereto, the Debtors are the sole owner of the Collateral (except for
        non-exclusive licenses granted by any Debtor in the ordinary course of
        business), free and clear of any liens, security interests, encumbrances,
        rights
        or claims, and are fully authorized to grant the Security Interests. Except
        as
        set forth on Schedule
        B
        attached
        hereto, there is not on file in any governmental or regulatory authority,
        agency
        or recording office an effective financing statement, security agreement,
        license or transfer or any notice of any of the foregoing (other than those
        that
        will be filed in favor of the Secured Parties pursuant to this Agreement)
        covering or affecting any of the Collateral. Except as set forth on Schedule
        B
        attached hereto and except pursuant to this Agreement, as long as this Agreement
        shall be in effect, the Debtors shall not execute and shall not knowingly
        permit
        to be on file in any such office or agency any other financing statement
        or
        other document or instrument (except to the extent filed or recorded in favor
        of
        the Secured Parties pursuant to the terms of this Agreement).

      

      (d)
         No
        written claim has been received that any Collateral or Debtor's use of any
        Collateral violates the rights of any third party. There has been no adverse
        decision to any Debtor's claim of ownership rights in or exclusive rights
        to use
        the Collateral in any

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      jurisdiction
        or to any Debtor's right to keep and maintain such Collateral in full force
        and
        effect, and there is no proceeding involving said rights pending or, to the
        best
        knowledge of any Debtor, threatened before any court, judicial body,
        administrative or regulatory agency, arbitrator or other governmental
        authority.

      

      (e)
         Each
        Debtor shall at all times maintain its books of account and records relating
        to
        the Collateral at its principal place of business and its Collateral at the
        locations set forth on Schedule
        A
        attached
        hereto and may not relocate such books of account and records or tangible
        Collateral unless it delivers to the Secured Parties at least 30 days prior
        to
        such relocation (i) written notice of such relocation and the new location
        thereof (which must be within the United States) and (ii) evidence that
        appropriate financing statements under the UCC and other necessary documents
        have been filed and recorded and other steps have been taken to perfect the
        Security Interests to create in favor of the Secured Parties a valid, perfected
        and continuing perfected first priority lien in the Collateral.

      

      (f)
         This
        Agreement creates in favor of the Secured Parties a valid, security interest
        in
        the Collateral, subject only to Permitted Liens (as defined in the Debentures)
        securing the payment and performance of the Obligations. Upon making the
        filings
        described in the immediately following paragraph, all security interests
        created
        hereunder in any Collateral which may be perfected by filing Uniform Commercial
        Code financing statements shall have been duly perfected. Except for the
        filing
        of the Uniform Commercial Code financing statements referred to in the
        immediately following paragraph, the recordation of the Intellectual Property
        Security Agreement (as defined below) with respect to copyrights and copyright
        applications in the United States Copyright Office referred to in paragraph
        (m),
the
        execution and delivery of deposit account control agreements satisfying the
        requirements of Section 9-104(a)(2) of the UCC with respect to each deposit
        account of the Debtors,
        and the
        delivery of the certificates and other instruments provided in Section
        3,
        no
        action is necessary to create, perfect or protect the security interests
        created
        hereunder. Without limiting the generality of the foregoing, except for the
        filing of said financing statements, the recordation of said Intellectual
        Property Security Agreement, and the execution and delivery of said deposit
        account control agreements, no consent of any third parties and no
        authorization, approval or other action by, and no notice to or filing with,
        any
        governmental authority or regulatory body is required for (i) the execution,
        delivery and performance of this Agreement, (ii) the creation or perfection
        of
        the Security Interests created hereunder in the Collateral or (iii) the
        enforcement of the rights of the Agent and the Secured Parties
        hereunder.

      

      (g)
         Each
        Debtor hereby authorizes the Agent to file one or more financing statements
        under the UCC, with respect to the Security Interests with the proper filing
        and
        recording agencies in any jurisdiction deemed proper by it.

      

       (h)
         The
        execution, delivery and performance of this Agreement by the Debtors does
        not
        (i) violate any of the provisions of any Organizational Documents of any
        Debtor
        or any judgment, decree, order or award of any court, governmental body or
        arbitrator or any
        applicable law,
        rule or
        regulation applicable to any Debtor or (ii) conflict with, or

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      constitute
        a default (or an event that with notice or lapse of time or both would become
        a
        default) under, or give to others any rights of termination, amendment,
        acceleration or cancellation (with or without notice, lapse of time or both)
        of,
        any agreement, credit facility, debt or other instrument (evidencing any
        Debtor's debt or otherwise) or other understanding to which any Debtor is
        a
        party or by which any property or asset of any Debtor is bound or affected.
        If
        any, all required consents (including, without limitation, from stockholders
        or
        creditors of any Debtor) necessary for any Debtor to enter into and perform
        its
        obligations hereunder have been obtained.

      

       (i)
         The
        capital stock and other equity interests listed on Schedule
        H
        hereto
        (the “Pledged
        Securities”)
        represent all of the capital stock and other equity interests of the Guarantors,
        and represent all capital stock and other equity interests owned, directly
        or
        indirectly, by the Company. All of the Pledged Securities are validly issued,
        fully paid and nonassessable, and the Company is the legal and beneficial
        owner
        of the Pledged Securities, free and clear of any lien, security interest
        or
        other encumbrance except for the security interests created by this Agreement
        and other Permitted Liens (as defined in the Debentures). 

      

      (j)
         The
        ownership and other equity interests in partnerships and limited liability
        companies (if any)
        included
        in the Collateral
        (the
“Pledged
        Interests”)
        by
        their express terms do not provide that they are securities governed by Article
        8 of the UCC and are not held in a securities account or by any financial
        intermediary.

      

      (k)
         Except
        for Permitted Liens (as defined in the Debentures), each Debtor shall at
        all
        times maintain the liens and Security Interests provided for hereunder as
        valid
        and perfected first priority liens and security interests in the Collateral
        in
        favor of the Secured Parties until this Agreement and the Security Interest
        hereunder shall be terminated pursuant to Section 11 hereof. Each Debtor
        hereby
        agrees to defend the same against the claims of any and all persons and
        entities. Each Debtor shall safeguard and protect all Collateral for the
        account
        of the Secured Parties. At the request of the Agent, each Debtor will sign
        and
        deliver to the Agent on behalf of the Secured Parties at any time or from
        time
        to time one or more financing statements pursuant to the UCC in form reasonably
        satisfactory to the Agent and will pay the cost of filing the same in all
        public
        offices wherever filing is, or is reasonable deemed by the Agent to be,
        necessary or desirable to effect the rights and obligations provided for
        herein.
        Without limiting the generality of the foregoing, each Debtor shall pay all
        fees, taxes and other amounts necessary to maintain the Collateral and the
        Security Interests hereunder, and each Debtor shall obtain and furnish to
        the
        Agent from time to time, upon demand, such releases and/or subordinations
        of
        claims and liens which may be required to maintain the priority of the Security
        Interests hereunder.

      

      (l)
         No
        Debtor
        will transfer, pledge, hypothecate, encumber, license, sell or otherwise
        dispose
        of any of the Collateral (except for non-exclusive licenses granted by a
        Debtor
        in its ordinary course of business and sales of inventory by a Debtor in
        its
        ordinary course of business) without the prior written consent of a Majority
        in Interest.

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      

      (m) Each
        Debtor shall keep and preserve its equipment, inventory and other tangible
        Collateral in good condition, repair and order and shall not operate or locate
        any such Collateral (or cause to be operated or located) in any area excluded
        from insurance coverage.

      

      (n) Each
        Debtor shall maintain with financially sound and reputable insurers, insurance
        with respect to the Collateral, including Collateral hereafter acquired,
        against
        loss or damage of the kinds and in the amounts customarily insured against
        by
        entities of established reputation having similar properties similarly situated
        and in such amounts as are customarily carried under similar circumstances
        by
        other such entities and otherwise as is prudent for entities engaged in similar
        businesses but in any event sufficient to cover the full replacement cost
        thereof. Each Debtor shall cause each insurance policy issued in connection
        herewith to provide, and the insurer issuing such policy to certify to the
        Agent
        that (a) the Agent will be named as lender loss payee and additional insured
        under each such insurance policy; (b) if such insurance be proposed to be
        cancelled or materially changed for any reason whatsoever, such insurer will
        promptly notify the Agent and such cancellation or change shall not be effective
        as to the Agent for at least thirty (30) days after receipt by the Agent
        of such
        notice, unless the effect of such change is to extend or increase coverage
        under
        the policy; and (c) the Agent will have the right (but no obligation) at
        its
        election to remedy any default in the payment of premiums within thirty (30)
        days of notice from the insurer of such default. If no Event of Default (as
        defined in the Debentures) exists and if the proceeds arising out of any
        claim
        or series of related claims do not exceed $100,000, loss payments in each
        instance will be applied by the applicable Debtor to the repair and/or
        replacement of property with respect to which the loss was incurred to the
        extent reasonably feasible, and any loss payments or the balance thereof
        remaining, to the extent not so applied, shall be payable to the applicable
        Debtor, provided, however, that payments received by any Debtor after an
        Event
        of Default occurs and is continuing or in excess of $100,000 for any occurrence
        or series of related occurrences shall be paid to the Agent on behalf of
        the
        Secured Parties and, if received by such Debtor, shall be held in trust for
        the
        Secured Parties and immediately paid over to the Agent unless otherwise directed
        in writing by the Agent. Copies of such policies or the related certificates,
        in
        each case, naming the Agent as lender loss payee and additional insured shall
        be
        delivered to the Agent at least annually and at the time any new policy of
        insurance is issued.

      

      (o)
         Each
        Debtor shall, within ten (10) days of obtaining knowledge thereof, advise
        the
        Secured Parties promptly, in sufficient detail, of any material adverse change
        in the Collateral, and of the occurrence of any event which would have a
        material adverse effect on the value of the Collateral or on the Secured
        Parties’ security interest, through the Agent, therein.

      

      (p)
         Each
        Debtor shall promptly execute and deliver to the Agent such further deeds,
        mortgages, assignments, security agreements, financing statements or other
        instruments, documents, certificates and assurances and take such further
        action
        as the

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      Agent
        may
        from time to time request and may in its sole discretion deem necessary to
        perfect, protect or enforce the Secured Parties’ security interest in the
        Collateral including, without limitation, if applicable, the execution and
        delivery of a separate security agreement with respect to each Debtor’s
        Intellectual Property (“Intellectual
        Property Security Agreement”)
        in
        which the Secured Parties have been granted a security interest hereunder,
        substantially in a form reasonably acceptable to the Agent, which Intellectual
        Property Security Agreement, other than as stated therein, shall be subject
        to
        all of the terms and conditions hereof.

      

      (q)
         Each
        Debtor shall permit the Agent and its representatives and agents to inspect
        the
        Collateral during normal business hours and upon reasonable prior notice,
        and to
        make copies of records pertaining to the Collateral as may be reasonably
        requested by the Agent from time to time.

      

      (r)
         Each
        Debtor shall take all steps reasonably necessary to diligently pursue and
        seek
        to preserve, enforce and collect any rights, claims, causes of action and
        accounts receivable in respect of the Collateral.

      

      (s)
         Each
        Debtor shall promptly notify the Secured Parties in sufficient detail upon
        becoming aware of any attachment, garnishment, execution or other legal process
        levied against any Collateral and of any other information received by such
        Debtor that may materially affect the value of the Collateral, the Security
        Interest or the rights and remedies of the Secured Parties
        hereunder.

      

      (t)
         All
        information heretofore, herein or hereafter supplied to the Secured Parties
        by
        or on behalf of any Debtor with respect to the Collateral is accurate and
        complete in all material respects as of the date furnished.

      

      (u)
         The
        Debtors shall at all times preserve and keep in full force and effect their
        respective valid existence and good standing and any rights and franchises
        material to its business.

      

      (v)
         No
        Debtor
        will change its name, type of organization, jurisdiction of organization,
        organizational identification number (if it has one), legal or corporate
        structure, or identity, or add any new fictitious name unless it provides
        at
        least 30 days prior written notice to the Secured Parties of such change
        and, at
        the time of such written notification, such Debtor provides any financing
        statements or fixture filings necessary to perfect and continue the perfection
        of the Security Interests granted and evidenced by this Agreement.

      

      (w) Except
        in
        the ordinary course of business, no Debtor may consign any of its Inventory
        or
        sell any of its Inventory on bill and hold, sale or return, sale on approval,
        or
        other conditional terms of sale without the consent of the
        Agent
        which shall not be unreasonably withheld.

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      (x)
         No
        Debtor
        may relocate its chief executive office to a new location without providing
        30
        days prior written notification thereof to the Secured Parties and so long
        as,
        at the time of such written notification, such Debtor provides any financing
        statements or fixture filings necessary to perfect and continue the perfection
        of the Security Interests granted and evidenced by this Agreement.

      

      (y) Each
        Debtor was organized and remains organized solely under the laws of the state
        set forth next to such Debtor’s name in Schedule
        D
        attached
        hereto, which Schedule
        D
        sets
        forth each Debtor’s organizational identification number or, if any Debtor does
        not have one, states that one does not exist.

      

      (z) 
        (i) The
        actual name of each Debtor is the name set forth in Schedule
        D
        attached
        hereto; (ii) no Debtor has any trade names except as set forth on Schedule
        E
        attached
        hereto; (iii) no Debtor has used any name other than that stated in the preamble
        hereto or as set forth on Schedule
        E
        for the
        preceding five years; and (iv) no entity has merged into any Debtor or been
        acquired by any Debtor within the past five years except as set forth on
        Schedule
        E.

      

      (aa) At
        any
        time and from time to time that any Collateral consists of instruments,
        certificated securities or other items that require or permit possession
        by the
        secured party to perfect the security interest created hereby, the applicable
        Debtor shall deliver such Collateral to the Agent.

      

      (bb)
         Each
        Debtor, in its capacity as issuer, hereby agrees to comply with any and all
        orders and instructions of Agent regarding the Pledged Interests consistent
        with
        the terms of this Agreement without the further consent of any Debtor as
        contemplated by Section 8-106 (or any successor section) of the UCC. Further,
        each Debtor agrees that it shall not enter into a similar agreement (or one
        that
        would confer “control” within the meaning of Article 8 of the UCC) with any
        other person or entity.

       

      (cc) Each
        Debtor shall cause all tangible chattel paper constituting Collateral to
        be
        delivered to the Agent, or, if such delivery is not possible, then to cause
        such
        tangible chattel paper to contain a legend noting that it is subject to the
        security interest created by this Agreement. To the extent that any Collateral
        consists of electronic chattel paper, the applicable Debtor shall cause the
        underlying chattel paper to be “marked” within the meaning of Section 9-105 of
        the UCC (or successor section thereto).

      

      (dd) If
        there
        is any investment property or deposit account included as Collateral that
        can be
        perfected by “control” through an account control agreement, the applicable
        Debtor shall cause such an account control agreement, in form and substance
        in
        each case satisfactory to the Agent, to be entered into and delivered to
        the
        Agent for the benefit of the Secured Parties.

      

      (ee)
         To
        the
        extent that any Collateral consists of letter-of-credit rights, the applicable
        Debtor shall cause the issuer of each underlying letter of credit to consent
        to
        an assignment of the proceeds thereof to the Secured Parties.

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

       

      (ff)
         To
        the
        extent that any Collateral is in the possession of any third party, the
        applicable Debtor shall join with the Agent in notifying such third party
        of the
        Secured Parties’ security interest in such Collateral and shall use its best
        efforts to obtain an acknowledgement and agreement from such third party
        with
        respect to the Collateral, in form and substance reasonably satisfactory
        to the
        Agent.

      

      (gg) If
        any
        Debtor shall at any time hold or acquire a commercial tort claim, such Debtor
        shall promptly notify the Secured Parties in a writing signed by such Debtor
        of
        the particulars thereof and grant to the Secured Parties in such writing
        a
        security interest therein and in the proceeds thereof, all upon the terms
        of
        this Agreement, with such writing to be in form and substance satisfactory
        to
        the Agent.

      

      (hh)  Each
        Debtor shall immediately provide written notice to the Secured Parties of
        any
        and all accounts which arise out of contracts with any governmental authority
        and, to the extent necessary to perfect or continue the perfected status
        of the
        Security Interests in such accounts and proceeds thereof, shall execute and
        deliver to the Agent an assignment of claims for such accounts and cooperate
        with the Agent in taking any other steps required, in its judgment, under
        the
        Federal Assignment of Claims Act or any similar federal, state or local statute
        or rule to perfect or continue the perfected status of the Security Interests
        in
        such accounts and proceeds thereof.

      

      (ii) Each
        Debtor shall cause each subsidiary
        of such
        Debtor to immediately become a party hereto (an “Additional
        Debtor”),
        by
        executing and delivering an Additional Debtor Joinder in substantially the
        form
        of Annex A attached hereto and comply with the provisions hereof applicable
        to
        the Debtors. Concurrent therewith, the Additional Debtor shall deliver
        replacement schedules for, or supplements to all other Schedules to (or referred
        to in) this Agreement, as applicable, which replacement schedules shall
        supersede, or supplements shall modify, the Schedules then in effect. The
        Additional Debtor shall also deliver such opinions of counsel, authorizing
        resolutions, good standing certificates, incumbency certificates, organizational
        documents, financing statements and other information and documentation as
        the
        Agent may reasonably request. Upon delivery of the foregoing to the Agent,
        the
        Additional Debtor shall be and become a party to this Agreement with the
        same
        rights and obligations as the Debtors, for all purposes hereof as fully and
        to
        the same extent as if it were an original signatory hereto and shall be deemed
        to have made the representations, warranties and covenants set forth herein
        as
        of the date of execution and delivery of such Additional Debtor Joinder,
        and all
        references herein to the “Debtors” shall be deemed to include each Additional
        Debtor.

      

      (jj)
         Each
        Debtor shall vote the Pledged Securities to comply with the covenants and
        agreements set forth herein and in the Debentures.

      

      (kk) Each
        Debtor shall register the pledge of the applicable Pledged Securities on
        the
        books of such Debtor. Each Debtor shall notify each issuer of Pledged Securities
        to register the pledge of the applicable Pledged Securities in the name of
        the
        Secured Parties

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

      on
        the
        books of such issuer. Further, except with respect to certificated securities
        delivered to the Agent, the applicable Debtor shall deliver to Agent an
        acknowledgement of pledge (which, where appropriate, shall comply with the
        requirements of the relevant UCC with respect to perfection by registration)
        signed by the issuer of the applicable Pledged Securities, which acknowledgement
        shall confirm that: (a) it has registered the pledge on its books and records;
        and (b) at any time directed by Agent during the continuation of an Event
        of
        Default, such issuer will transfer the record ownership of such Pledged
        Securities into the name of any designee of Agent, will take such steps as
        may
        be necessary to effect the transfer, and will comply with all other instructions
        of Agent regarding such Pledged Securities without the further consent of
        the
        applicable Debtor.

      

      (ll)
        In
        the
        event that, upon an occurrence of an Event of Default, Agent shall sell all
        or
        any of the Pledged Securities to another party or parties (herein called
        the
“Transferee”)
        or
        shall purchase or retain all or any of the Pledged Securities, each Debtor
        shall, to the extent applicable: (i) deliver to Agent or the Transferee,
        as the
        case may be, the articles of incorporation, bylaws, minute books, stock
        certificate books, corporate seals, deeds, leases, indentures, agreements,
        evidences of indebtedness, books of account, financial records and all other
        Organizational Documents and records of the Debtors and their direct and
        indirect subsidiaries; (ii) use its best efforts to obtain resignations of
        the
        persons then serving as officers and directors of the Debtors and their direct
        and indirect subsidiaries, if so requested; and (iii) use its best efforts
        to
        obtain any approvals that are required by any governmental or regulatory
        body in
        order to permit the sale of the Pledged Securities to the Transferee or the
        purchase or retention of the Pledged Securities by Agent and allow the
        Transferee or Agent to continue the business of the Debtors and their direct
        and
        indirect subsidiaries.

       

      (mm) Without
        limiting the generality of the other obligations of the Debtors hereunder,
        each
        Debtor shall promptly (i) cause to be registered at the United States Copyright
        Office all of its material copyrights, (ii) cause the security interest
        contemplated hereby with respect to all Intellectual Property registered
        at the
        United States Copyright Office or United States Patent and Trademark Office
        to
        be duly recorded at the applicable office, and (iii) give the Agent notice
        whenever it acquires (whether absolutely or by license) or creates any
        additional material Intellectual Property.

      

      (nn) Each
        Debtor will from time to time, at the joint and several expense of the Debtors,
        promptly execute and deliver all such further instruments and documents,
        and
        take all such further action as may be necessary or reasonably desirable,
        or as
        the Agent may reasonably request, in order to perfect and protect any security
        interest granted or purported to be granted hereby or to enable the Secured
        Parties to exercise and enforce their rights and remedies hereunder and with
        respect to any Collateral or to otherwise carry out the purposes of this
        Agreement.

      

      (oo) Schedule
        F
        attached
        hereto lists all of the patents, patent applications, trademarks, trademark
        applications, registered copyrights, and domain names owned by any of the
        Debtors as of the date hereof. Schedule
        F
        lists
        all material licenses in favor of any Debtor for the use of any patents,
        trademarks, copyrights and domain names as of the

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

      date
        hereof. All material patents and trademarks of the Debtors have been duly
        recorded at the United States Patent and Trademark Office and all material
        copyrights of the Debtors have been duly recorded at the United States Copyright
        Office.

      

      (pp) Except
        as
        set forth on Schedule
        G
        attached
        hereto, none of the account debtors or other persons or entities obligated
        on
        any of the Collateral is a governmental authority covered by the Federal
        Assignment of Claims Act or any similar federal, state or local statute or
        rule
        in respect of such Collateral.

      

      5. Effect
        of Pledge on Certain Rights. If
        any of
        the Collateral subject to this Agreement consists of nonvoting equity or
        ownership interests (regardless of class, designation, preference or rights)
        that may be converted into voting equity or ownership interests upon the
        occurrence of certain events (including, without limitation, upon the transfer
        of all or any of the other stock or assets of the issuer), it is agreed that
        the
        pledge of such equity or ownership interests pursuant to this Agreement or
        the
        enforcement of any of Agent’s rights hereunder shall not be deemed to be the
        type of event which would trigger such conversion rights notwithstanding
        any
        provisions in the Organizational Documents or agreements to which any Debtor
        is
        subject or to which any Debtor is party.

      

      6.
         Defaults.
        The
        following events shall be “Events
        of Default”:

      

      (a)
        The
        occurrence of an Event of Default (as defined in the Debentures) under the
        Debentures;

      

      (b)
        Any
        representation or warranty of any Debtor in this Agreement shall prove to
        have
        been incorrect in any material respect when made;

      

      (c)
        The
        failure by any Debtor to observe or perform any of its obligations hereunder
        for
        five (5) days after delivery to such Debtor of notice of such failure by
        or on
        behalf of a Secured Party unless such default is capable of cure but cannot
        be
        cured within such time frame and such Debtor is using best efforts to cure
        same
        in a timely fashion; or

      

      (d)
        If
        any provision of this Agreement shall at any time for any reason be declared
        to
        be null and void, or the validity or enforceability thereof shall be contested
        by any Debtor, or a proceeding shall be commenced by any Debtor, or by any
        governmental authority having jurisdiction over any Debtor, seeking to establish
        the invalidity or unenforceability thereof, or any Debtor shall deny that
        any
        Debtor has any liability or obligation purported to be created under this
        Agreement.

      

       7.  Duty
        To Hold In Trust.
        

      

      (a) Upon
        the
        occurrence of any Event of Default and at any time thereafter, each Debtor
        shall, upon receipt of any revenue, income,
        dividend, interest
        or other
        sums subject to the Security Interests, whether payable pursuant to the
        Debentures or otherwise, or of any check, draft, note, trade acceptance or
        other
        instrument evidencing an obligation

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

      to
        pay
        any such sum, hold the same in trust for the Secured Parties and shall forthwith
        endorse and transfer any such sums or instruments, or both, to the Secured
        Parties, pro-rata in proportion to their respective then-currently outstanding
        principal amount of Debentures for application to the satisfaction of the
        Obligations (and if any Debenture is not outstanding, pro-rata in proportion
        to
        the initial purchases of the remaining Debentures). 

      

      (b) If
        any
        Debtor shall become entitled to receive or shall receive any securities or
        other
        property (including, without limitation, shares of Pledged Securities or
        instruments representing Pledged Securities acquired after the date hereof,
        or
        any options, warrants, rights or other similar property or certificates
        representing a dividend, or any distribution in connection with any
        recapitalization, reclassification or increase or reduction of capital, or
        issued in connection with any reorganization of such Debtor or any of its
        direct
        or indirect subsidiaries) in respect of the Pledged Securities (whether as
        an
        addition to, in substitution of, or in exchange for, such Pledged Securities
        or
        otherwise), such Debtor agrees to (i) accept the same as the agent of the
        Secured Parties; (ii) hold the same in trust on behalf of and for the benefit
        of
        the Secured Parties; and (iii) to deliver any and all certificates or
        instruments evidencing the same to Agent on or before the close of business
        on
        the fifth business day following the receipt thereof by such Debtor, in the
        exact form received together with the Necessary Endorsements, to be held
        by
        Agent subject to the terms of this Agreement as Collateral.

      

       8.  Rights
        and Remedies Upon Default.

      

      (a) Upon
        the
        occurrence of any Event of Default and at any time thereafter, the Secured
        Parties, acting through the Agent, shall have the right to exercise all of
        the
        remedies conferred hereunder and under the Debentures, and the Secured Parties
        shall have all the rights and remedies of a secured party under the UCC.
        Without
        limitation, the Agent, for the benefit of the Secured Parties, shall have
        the
        following rights and powers:

      

      (i)
        The
        Agent shall have the right to take possession of the Collateral and, for
        that
        purpose, enter, with the aid and assistance of any person, any premises where
        the Collateral, or any part thereof, is or may be placed and remove the same,
        and each Debtor shall assemble the Collateral and make it available to the
        Agent
        at places which the Agent shall reasonably select, whether at such Debtor's
        premises or elsewhere, and make available to the Agent, without rent, all
        of
        such Debtor’s respective premises and facilities for the purpose of the Agent
        taking possession of, removing or putting the Collateral in saleable or
        disposable form.

      

      (ii) Upon
        notice to the Debtors by Agent, all rights of each Debtor to exercise the
        voting
        and other consensual rights which it would otherwise be entitled to exercise
        and
        all rights of each Debtor to receive the dividends and interest which it
        would
        otherwise be authorized to receive and retain, shall cease. Upon such notice,
        Agent shall have the right to receive, for the benefit of the Secured Parties,
        any interest, cash dividends or other payments on the Collateral and, at
        the
        option

      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

      of
        Agent,
        to exercise in such Agent’s discretion all voting rights pertaining thereto.
        Without limiting the generality of the foregoing, Agent shall have the right
        (but not the obligation) to exercise all rights with respect to the Collateral
        as it were the sole and absolute owner thereof, including, without limitation,
        to vote and/or to exchange, at its sole discretion, any or all of the Collateral
        in connection with a merger, reorganization, consolidation, recapitalization
        or
        other readjustment concerning or involving the Collateral or any Debtor or
        any
        of its direct or indirect subsidiaries.

      

      (iii)
        The
        Agent shall have the right to operate the business of each Debtor using the
        Collateral and shall have the right to assign, sell, lease or otherwise dispose
        of and deliver all or any part of the Collateral, at public or private sale
        or
        otherwise, either with or without special conditions or stipulations, for
        cash
        or on credit or for future delivery, in such parcel or parcels and at such
        time
        or times and at such place or places, and upon such terms and conditions
        as the
        Agent may deem commercially reasonable, all without (except as shall be required
        by applicable statute and cannot be waived) advertisement or demand upon
        or
        notice to any Debtor or right of redemption of a Debtor, which are hereby
        expressly waived. Upon each such sale, lease, assignment or other transfer
        of
        Collateral, the Agent, for the benefit of the Secured Parties, may, unless
        prohibited by applicable law which cannot be waived, purchase all or any
        part of
        the Collateral being sold, free from and discharged of all trusts, claims,
        right
        of redemption and equities of any Debtor, which are hereby waived and
        released.

      

      (iv) The
        Agent
        shall have the right (but not the obligation) to notify any account debtors
        and
        any obligors under instruments or accounts to make payments directly to the
        Agent, on behalf of the Secured Parties, and to enforce the Debtors’ rights
        against such account debtors and obligors.

      

      (v) The
        Agent, for the benefit of the Secured Parties, may (but is not obligated
        to)
        direct any financial intermediary or any other person or entity holding any
        investment property to transfer the same to the Agent, on behalf of the Secured
        Parties, or its designee.

      

      (vi) The
        Agent
        may (but is not obligated to) transfer any or all Intellectual Property
        registered in the name of any Debtor at the United States Patent and Trademark
        Office and/or Copyright Office into the name of the Secured Parties or any
        designee or any purchaser of any Collateral.

      

      (b) The
        Agent
        shall comply with any applicable law in connection with a disposition of
        Collateral and such compliance will not be considered adversely to affect
        the
        commercial reasonableness of any sale of the Collateral. The Agent may sell
        the
        Collateral without giving any warranties and may specifically disclaim such
        warranties. If the Agent sells any of the Collateral on credit, the Debtors
        will
        only be credited with payments actually made by the purchaser. In addition,
        each
        Debtor waives any and all rights that it

       

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

      may
        have
        to a judicial hearing in advance of the enforcement of any of the Agent’s rights
        and remedies hereunder, including, without limitation, its right following
        an
        Event of Default to take immediate possession of the Collateral and to exercise
        its rights and remedies with respect thereto.

       

      (c) For
        the
        purpose of enabling the Agent to further exercise rights and remedies under
        this
        Section 8 or elsewhere provided by agreement or applicable law, each Debtor
        hereby grants to the Agent, for the benefit of the Agent and the Secured
        Parties, an irrevocable, nonexclusive license (exercisable without payment
        of
        royalty or other compensation to such Debtor) to use, license or sublicense
        following an Event of Default, any Intellectual Property now owned or hereafter
        acquired by such Debtor, and wherever the same may be located, and including
        in
        such license access to all media in which any of the licensed items may be
        recorded or stored and to all computer software and programs used for the
        compilation or printout thereof.

      

       9.  Applications
        of Proceeds.
        The
        proceeds of any such sale, lease or other disposition of the Collateral
        hereunder or from payments made on account of any insurance policy insuring
        any
        portion of the Collateral shall be applied first, to the expenses of retaking,
        holding, storing, processing and preparing for sale, selling, and the like
        (including, without limitation, any taxes, fees and other costs incurred
        in
        connection therewith) of the Collateral, to the reasonable attorneys’ fees and
        expenses incurred by the Agent in enforcing the Secured Parties’ rights
        hereunder and in connection with collecting, storing and disposing of the
        Collateral, and then to satisfaction of the Obligations pro rata among the
        Secured Parties (based on then-outstanding principal amounts of Debentures
        at
        the time of any such determination), and to the payment of any other amounts
        required by applicable law, after which the Secured Parties shall pay to
        the
        applicable Debtor any surplus proceeds. If, upon the sale, license or other
        disposition of the Collateral, the proceeds thereof are insufficient to pay
        all
        amounts to which the Secured Parties are legally entitled, the Debtors will
        be
        liable for the deficiency, together with interest thereon, at the rate of
        18%
        per annum or the lesser amount permitted by applicable law (the “Default Rate”),
        and the reasonable fees of any attorneys employed by the Secured Parties
        to
        collect such deficiency. To the extent permitted by applicable law, each
        Debtor
        waives all claims, damages and demands against the Secured Parties arising
        out
        of the repossession, removal, retention or sale of the Collateral, unless
        due
        solely to the gross negligence or willful misconduct of the Secured Parties
        as
        determined by a final judgment (not subject to further appeal) of a court
        of
        competent jurisdiction.

      

      10. Securities
        Law Provision.
        Each
        Debtor recognizes that Agent may be limited in its ability to effect a sale
        to
        the public of all or part of the Pledged Securities by reason of certain
        prohibitions in the Securities Act of 1933, as amended, or other federal
        or
        state securities laws (collectively, the “Securities
        Laws”),
        and
        may be compelled to resort to one or more sales to a restricted group of
        purchasers who may be required to agree to acquire the Pledged Securities
        for
        their own account, for investment and not with a view to the distribution
        or
        resale thereof. Each Debtor agrees that sales so made may be at prices and
        on
        terms less favorable than if the Pledged Securities were sold to the public,
        and
        that Agent has no obligation to delay the sale of any Pledged Securities
        for the
        period of time necessary to register the Pledged Securities for sale to the
        public under the Securities Laws. Each Debtor shall cooperate with Agent
        in its
        attempt to satisfy any

      
        
           

        

        
          -17-

          
            

          

        

        
           

        

      

      requirements
        under the Securities Laws (including, without limitation, registration
        thereunder if requested by Agent) applicable to the sale of the Pledged
        Securities by Agent.

       

      11.  Costs
        and Expenses.
        Each
        Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses
        incurred in connection with any filing required hereunder, including without
        limitation, any financing statements pursuant to the UCC, continuation
        statements, partial releases and/or termination statements related thereto
        or
        any expenses of any searches reasonably required by the Agent. The Debtors
        shall
        also pay all other claims and charges which in the reasonable opinion of
        the
        Agent is reasonably likely to prejudice, imperil or otherwise affect the
        Collateral or the Security Interests therein. The Debtors will also, upon
        demand, pay to the Agent the amount of any and all reasonable expenses,
        including the reasonable fees and expenses of its counsel and of any experts
        and
        agents, which the Agent, for the benefit of the Secured Parties, may incur
        in
        connection with (i) the enforcement of this Agreement, (ii) the custody or
        preservation of, or the sale of, collection from, or other realization upon,
        any
        of the Collateral, or (iii) the exercise or enforcement of any of the rights
        of
        the Secured Parties under the Debentures. Until so paid, any fees payable
        hereunder shall be added to the principal amount of the Debentures and shall
        bear interest at the Default Rate.

       

      12.  Responsibility
        for Collateral.
        The
        Debtors assume all liabilities and responsibility in connection with all
        Collateral, and the Obligations shall in no way be affected or diminished
        by
        reason of the loss, destruction, damage or theft of any of the Collateral
        or its
        unavailability for any reason. Without limiting the generality of the foregoing,
        (a) neither the Agent nor any Secured Party (i) has any duty (either before
        or
        after an Event of Default) to collect any amounts in respect of the Collateral
        or to preserve any rights relating to the Collateral, or (ii) has any obligation
        to clean-up or otherwise prepare the Collateral for sale, and (b) each Debtor
        shall remain obligated and liable under each contract or agreement included
        in
        the Collateral to be observed or performed by such Debtor thereunder. Neither
        the Agent nor any Secured Party shall have any obligation or liability under
        any
        such contract or agreement by reason of or arising out of this Agreement
        or the
        receipt by the Agent or any Secured Party of any payment relating to any
        of the
        Collateral, nor shall the Agent or any Secured Party be obligated in any
        manner
        to perform any of the obligations of any Debtor under or pursuant to any
        such
        contract or agreement, to make inquiry as to the nature or sufficiency of
        any
        payment received by the Agent or any Secured Party in respect of the Collateral
        or as to the sufficiency of any performance by any party under any such contract
        or agreement, to present or file any claim, to take any action to enforce
        any
        performance or to collect the payment of any amounts which may have been
        assigned to the Agent or to which the Agent or any Secured Party may be entitled
        at any time or times.

       

      13.  Security
        Interests Absolute.
        All
        rights of the Secured Parties and all obligations of the Debtors hereunder,
        shall be absolute and unconditional, irrespective of: (a) any lack of validity
        or enforceability of this Agreement, the Debentures or any agreement entered
        into in connection with the foregoing, or any portion hereof or thereof;
        (b) any
        change in the time, manner or place of payment or performance of, or in any
        other term of, all or any of the Obligations, or any other amendment or waiver
        of or any consent to any departure from the Debentures or any other agreement
        entered into in connection with the foregoing; (c) any exchange, release
        or
        nonperfection of any of the Collateral, or any release or amendment or waiver
        of
        or consent to departure from any other collateral for, or any guarantee,
        or any
        other security, for all or any of the

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

      Obligations;
        (d) any action by the Secured Parties to obtain, adjust, settle and cancel
        in
        its sole discretion any insurance claims or matters made or arising in
        connection with the Collateral; or (e) any other circumstance which might
        otherwise constitute any legal or equitable defense available to a Debtor,
        or a
        discharge of all or any part of the Security Interests granted hereby. Until
        the
        Obligations shall have been paid and performed in full, the rights of the
        Secured Parties shall continue even if the Obligations are barred for any
        reason, including, without limitation, the running of the statute of limitations
        or bankruptcy. Each Debtor expressly waives presentment, protest, notice
        of
        protest, demand, notice of nonpayment and demand for performance. In the
        event
        that at any time any transfer of any Collateral or any payment received by
        the
        Secured Parties hereunder shall be deemed by final order of a court of competent
        jurisdiction to have been a voidable preference or fraudulent conveyance
        under
        the bankruptcy or insolvency laws of the United States, or shall be deemed
        to be
        otherwise due to any party other than the Secured Parties, then, in any such
        event, each Debtor’s obligations hereunder shall survive cancellation of this
        Agreement, and shall not be discharged or satisfied by any prior payment
        thereof
        and/or cancellation of this Agreement, but shall remain a valid and binding
        obligation enforceable in accordance with the terms and provisions hereof.
        Each
        Debtor waives all right to require the Secured Parties to proceed against
        any
        other person or entity
        or
to
        apply
        any Collateral which the Secured Parties may hold at any time, or to marshal
        assets, or to pursue any other remedy. Each Debtor waives any defense arising
        by
        reason of the application of the statute of limitations to any obligation
        secured hereby.

       

      14.
         Term
        of Agreement.
        This
        Agreement and the Security Interests shall terminate on the date on which
        all
        payments under the Debentures have been indefeasibly paid in full and all
        other
        Obligations have been paid or discharged; provided, however, that all
        indemnities of the Debtors contained in this Agreement (including, without
        limitation, Annex B hereto) shall survive and remain operative and in full
        force
        and effect regardless of the termination of this Agreement.

      

      15.
         Power
        of Attorney; Further Assurances.

      

      (a)
         Each
        Debtor authorizes the Agent, and does hereby make, constitute and appoint
        the
        Agent and its officers, agents, successors or assigns with full power of
        substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in
        the name of the Agent or such Debtor, to, after the occurrence and during
        the
        continuance of an Event of Default, (i) endorse any note, checks, drafts,
        money
        orders or other instruments of payment (including payments payable under
        or in
        respect of any policy of insurance) in respect of the Collateral that may
        come
        into possession of the Agent; (ii) to sign and endorse any financing statement
        pursuant to the UCC or any invoice, freight or express bill, bill of lading,
        storage or warehouse receipts, drafts against debtors, assignments,
        verifications and notices in connection with accounts, and other documents
        relating to the Collateral; (iii) to pay or discharge taxes, liens, security
        interests or other encumbrances at any time levied or placed on or threatened
        against the Collateral; (iv) to demand, collect, receipt for, compromise,
        settle
        and sue for monies due in respect of the Collateral; (v) to transfer any
        Intellectual Property or provide licenses respecting any Intellectual Property;
        and (vi) generally, at the option of the Agent, and at the expense of the
        Debtors, at any time, or from time to time, to execute and deliver any and
        all
        documents and instruments and to

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

      do
        all
        acts and things which the Agent deems necessary to protect, preserve and
        realize
        upon the Collateral and the Security Interests granted therein in order to
        effect the intent of this Agreement and the Debentures all as fully and
        effectually as the Debtors might or could do; and each Debtor hereby ratifies
        all that said attorney shall lawfully do or cause to be done by virtue hereof.
        This power of attorney is coupled with an interest and shall be irrevocable
        for
        the term of this Agreement and thereafter as long as any of the Obligations
        shall be outstanding. The
        designation set forth herein shall be deemed to amend and supersede any
        inconsistent provision in the Organizational Documents or other documents
        or
        agreements to which any Debtor is subject or to which any Debtor is a party.
        Without
        limiting the generality of the foregoing, after the occurrence and during
        the
        continuance of an Event of Default, each Secured Party is specifically
        authorized to execute and file any applications for or instruments of transfer
        and assignment of any patents, trademarks, copyrights or other Intellectual
        Property with the United States Patent and Trademark Office and the United
        States Copyright Office.

      

      (b)
         On
        a
        continuing basis, each Debtor will make, execute, acknowledge, deliver, file
        and
        record, as the case may be, with the proper filing and recording agencies
        in any
        jurisdiction, including, without limitation, the jurisdictions indicated
        on
Schedule
        C
        attached
        hereto, all such instruments, and take all such action as may reasonably
        be
        deemed necessary or advisable, or as reasonably requested by the Agent, to
        perfect the Security Interests granted hereunder and otherwise to carry out
        the
        intent and purposes of this Agreement, or for assuring and confirming to
        the
        Agent the grant or perfection of a perfected security interest in all the
        Collateral under the UCC.

      

      (c)
         Each
        Debtor hereby irrevocably appoints the Agent as such Debtor’s attorney-in-fact,
        with full authority in the place and instead of such Debtor and in the name
        of
        such Debtor, from time to time in the Agent’s discretion, to take any action and
        to execute any instrument which the Agent may deem necessary or advisable
        to
        accomplish the purposes of this Agreement, including the filing, in its sole
        discretion, of one or more financing or continuation statements and amendments
        thereto, relative to any of the Collateral without the signature of such
        Debtor
        where permitted by law, which financing statements may (but need not) describe
        the Collateral as “all assets” or “all personal property” or words of like
        import, and ratifies all such actions taken by the Agent. This power of attorney
        is coupled with an interest and shall be irrevocable for the term of this
        Agreement and thereafter as long as any of the Obligations shall be
        outstanding.

       

      16.  Notices.
        All
        notices, requests, demands and other communications hereunder shall be subject
        to the notice provision of the Purchase Agreement (as such term is defined
        in
        the Debentures).

       

      17.  Other
        Security.
        To the
        extent that the Obligations are now or hereafter secured by property other
        than
        the Collateral or by the guarantee, endorsement or property of any other
        person,
        firm, corporation or other entity, then the Agent shall have the right, in
        its
        sole discretion, to pursue, relinquish, subordinate, modify or take any other
        action with respect thereto, without in any way modifying or affecting any
        of
        the Secured Parties’ rights and remedies hereunder.

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

       

      18.  Appointment
        of Agent.
        The
        Secured Parties hereby appoint Midsummer Ventures, L.P. to act as their agent
        (“Midsummer
        Ventures”
or
        “Agent”)
        under
        this Agreement, as well as the UK Security Agreement, the UK Share Charge
        and
        Korean Security Agreement, for purposes of exercising any and all rights
        and
        remedies of the Secured Parties hereunder and thereunder. Such appointment
        shall
        continue until revoked in writing by a Majority
        in Interest, at which time a Majority in Interest
        shall
        appoint a new Agent, provided that Midsummer Ventures may not be removed
        as
        Agent unless it shall then hold less than $75,000 in principal amount of
        Debentures;
        provided,
        further,
        that
        such removal may occur only if each of the other Secured Parties shall then
        hold
        not less than an aggregate of $500,000 in principal amount of Debentures.
        The
        Agent
        shall have the rights, responsibilities and immunities set forth in Annex
        B
        hereto.

       

      19.  Intercreditor
        Agreement.

      

      (a) So
        long
        as the Debentures remain outstanding, each of the undersigned Secured Parties
        agrees, severally and not  jointly, not to commence or threaten to commence
        any action or proceeding, sue upon any claim or claims now or hereafter existing
        which such Secured Party may hold against the Company or any of its
        Subsidiaries, and not to sell, assign, transfer, pledge, hypothecate, or
        encumber such claim or claims, and not to enforce or apply any security now
        or
        hereafter existing therefor, nor to file or join in any petition to commence
        any
        proceeding under any bankruptcy, reorganization or insolvency proceedings
        with
        respect to the  Company or any of its Subsidiaries or exercise or seek to
        exercise any rights or remedies (including, without limitation, setoff) with
        respect to any Collateral or institute or commence, or join with any Person
        (other than the other Secured Parties) in commencing any action or proceeding
        with respect to such rights or remedies (including any action of foreclosure),
        enforcement, collection or execution; provided, however, (x) that a Secured
        Party may exercise any or all of such rights (I) with the written consent
        of the
        Secured Parties holding 50% or more of the principal amount of Debentures
        then
        outstanding or (II) after the passage of a period of 365 days from the date
        such
        Secured Party provides the Company notice of the default, breach or violation
        giving rise to any such claim and (y) the provisions of this Section shall
        not
        prohibit a Secured Party that is a Qualified Purchaser from exercising any
        or
        all of such rights.

      

      (b)
        Notwithstanding anything to the contrary set forth in Section 19(a) above,
        each
        Secured Party:

      

      (1) with
        the
        consent of the Agent, may take any action in order to preserve or protect
        its
        Lien on the Collateral;

      

      (2) shall
        be
        entitled to file any necessary responsive or defensive pleadings in opposition
        to any motion, claim, adversary proceeding or other pleading made by any
        Person
        objecting to or otherwise seeking the disallowance of

      
        
           

        

        
          -21-

          
            

          

        

        
           

        

      

      the
        claims of the Secured Parties, in each case in accordance with the terms
        of this
        Agreement; 

      

      (3) shall
        be
        entitled to vote on any plan of reorganization and file any proof of claim
        in
        any insolvency, bankruptcy or liquidation proceeding or otherwise and other
        filings and make any arguments and motions that are, in each case, in accordance
        with the terms of this Agreement, with respect to the Collateral.

      

      (c)       
        Notwithstanding anything herein to the contrary, including, without limitation
        anything set forth in Sections 19(a) and (b) above, nothing in this Agreement
        shall: (i) restrict the Company from making and a Secured Party from receiving
        regularly scheduled principal and interest payments made to the Secured Parties
        pursuant to the terms of the Transaction Documents; (ii) restrict the Secured
        Parties’ right to receive shares of Common Stock upon conversion or exercise of
        securities of the Company, (iii) restrict the Secured Parties’ right to seek
        specific performance therefor to cause the Company to satisfy its obligations
        under the Transaction Documents; or (iv) restrict a Secured Parties’ right to
        receive payment of liquidated damages and other fees pursuant to the terms
        of
        the Transaction Documents.

      

      20. Korean
        Government Approval. Notwithstanding
        anything to the contrary herein, this Agreement shall become effective with
        respect to Celsia Korea Technologies Inc., upon approval of this Agreement
        by
        The Bank of Korea and within the limit of guarantee amount as approved by
        The
        Bank of Korea.

      

      21. Miscellaneous.

      

      (a)
         No
        course
        of dealing between the Debtors and the Secured Parties, nor any failure to
        exercise, nor any delay in exercising, on the part of the Secured Parties,
        any
        right, power or privilege hereunder or under the Debentures shall operate
        as a
        waiver thereof; nor shall any single or partial exercise of any right, power
        or
        privilege hereunder or thereunder preclude any other or further exercise
        thereof
        or the exercise of any other right, power or privilege.

      

      (b)
         All
        of
        the rights and remedies of the Secured Parties with respect to the Collateral,
        whether established hereby or by the Debentures or by any other agreements,
        instruments or documents or by law shall be cumulative and may be exercised
        singly or concurrently.

      

      (c)
         This
        Agreement,
        together with the exhibits and schedules hereto, contain the entire
        understanding of the parties with respect to the subject matter hereof and
        supersede all prior agreements and understandings, oral or written, with
        respect
        to such matters, which the parties acknowledge have been merged into this
        Agreement and the exhibits and schedules hereto.
        No
        provision of this Agreement may be waived, modified, supplemented or amended
        except in a written instrument signed, in the case of an

      
        
           

        

        
          -22-

          
            

          

        

        
           

        

      

      amendment,
        by the Debtors and the Secured Parties or, in the case of a waiver, by the
        party
        against whom enforcement of any such waived provision is sought. 

      

      (d)
         If
        any
        term, provision, covenant or restriction of this Agreement is held by a court
        of
        competent jurisdiction to be invalid, illegal, void or unenforceable, the
        remainder of the terms, provisions, covenants and restrictions set forth
        herein
        shall remain in full force and effect and shall in no way be affected, impaired
        or invalidated, and the parties hereto shall use their commercially reasonable
        efforts to find and employ an alternative means to achieve the same or
        substantially the same result as that contemplated by such term, provision,
        covenant or restriction. It is hereby stipulated and declared to be the
        intention of the parties that they would have executed the remaining terms,
        provisions, covenants and restrictions without including any of such that
        may be
        hereafter declared invalid, illegal, void or unenforceable.

      

      (e)
         No
        waiver
        of any default with respect to any provision, condition or requirement of
        this
        Agreement shall be deemed to be a continuing waiver in the future or a waiver
        of
        any subsequent default or a waiver of any other provision, condition or
        requirement hereof, nor shall any delay or omission of any party to exercise
        any
        right hereunder in any manner impair the exercise of any such
        right.

      

      (f)
         This
        Agreement shall be binding upon and inure to the benefit of the parties and
        their successors and permitted assigns. The Company and the Guarantors may
        not
        assign this Agreement or any rights or obligations hereunder without the
        prior
        written consent of each Secured Party (other than by merger). Any Secured
        Party
        may assign any or all of its rights under this Agreement to any Person to
        whom
        such Secured Party assigns or transfers any Securities, provided such transferee
        agrees in writing to be bound, with respect to the transferred Securities,
        by
        the provisions of this Agreement that apply to the “Secured
        Parties.”

      

      (g)
         Each
        party shall take such further action and execute and deliver such further
        documents as may be necessary or appropriate in order to carry out the
        provisions and purposes of this Agreement.

      

      (h)
        All
        questions concerning the construction, validity, enforcement and interpretation
        of this Agreement shall be governed by and construed and enforced in accordance
        with the internal laws of the State of New York, without regard to the
        principles of conflicts of law thereof. Each Debtor agrees that all proceedings
        concerning the interpretations, enforcement and defense of the transactions
        contemplated by this Agreement and the Debentures (whether brought against
        a
        party hereto or its respective affiliates, directors, officers, shareholders,
        partners, members, employees or agents) shall be commenced exclusively in
        the
        state and federal courts sitting in the City of New York, Borough of Manhattan.
        Each Debtor hereby irrevocably submits to the exclusive jurisdiction of the
        state and federal courts sitting in the City of New York, Borough of Manhattan
        for the adjudication of any dispute hereunder or in connection herewith or
        with
        any transaction contemplated hereby or discussed herein, and hereby irrevocably
        waives,

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

      and
        agrees not to assert in any proceeding, any claim that it is not personally
        subject to the jurisdiction of any such court, that such proceeding is improper.
        Each party hereto hereby irrevocably waives personal service of process and
        consents to process being served in any such proceeding by mailing a copy
        thereof via registered or certified mail or overnight delivery (with evidence
        of
        delivery) to such party at the address in effect for 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.
        Each party hereto hereby irrevocably waives, to the fullest extent permitted
        by
        applicable law, any and all right to trial by jury in any legal proceeding
        arising out of or relating to this Agreement or the transactions contemplated
        hereby. If any party shall commence a proceeding to enforce any provisions
        of
        this Agreement, then the prevailing party in such proceeding shall be reimbursed
        by the other party for its reasonable attorney’s fees and other costs and
        expenses incurred with the investigation, preparation and prosecution of
        such
        proceeding.

      

      (i)
         This
        Agreement may be executed in any number of counterparts, each of which when
        so
        executed shall be deemed to be an original and, all of which taken together
        shall constitute one and the same Agreement. In the event that any signature
        is
        delivered by facsimile transmission, such signature shall create a valid
        binding
        obligation of the party executing (or on whose behalf such signature is
        executed) the same with the same force and effect as if such facsimile signature
        were the original thereof.

      

      (j) All
        Debtors shall jointly and severally be liable for the obligations of each
        Debtor
        to the Secured Parties hereunder.

      

      (k) Each
        Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured
        Parties and their respective partners, members, shareholders, officers,
        directors, employees and agents (and any other persons with other titles
        that
        have similar functions) (collectively, “Indemnitees”)
        from
        and against any and all losses, claims, liabilities, damages, penalties,
        suits,
        costs and expenses, of any kind or nature, (including fees relating to the
        cost
        of investigating and defending any of the foregoing) imposed on, incurred
        by or
        asserted against such Indemnitee in any way related to or arising from or
        alleged to arise from this Agreement or the Collateral, except any such losses,
        claims, liabilities, damages, penalties, suits, costs and expenses which
        result
        from the gross negligence or willful misconduct of the Indemnitee as determined
        by a final, nonappealable decision of a court of competent jurisdiction.
        This
        indemnification provision is in addition to, and not in limitation of, any
        other
        indemnification provision in the Debentures, the Purchase Agreement (as such
        term is defined in the Debentures) or any other agreement, instrument or
        other
        document executed or delivered in connection herewith or therewith.

      

      (l) Nothing
        in this Agreement shall be construed to subject Agent or any Secured Party
        to
        liability as a partner in any Debtor or any if its direct or indirect
        subsidiaries that is a partnership or as a member in any Debtor or any of
        its
        direct or indirect subsidiaries that is a limited liability company, nor
        shall
        Agent or any Secured

      
        
           

        

        
          -24-

          
            

          

        

        
           

        

      

      Party
        be
        deemed to have assumed any obligations under any partnership agreement or
        limited liability company agreement, as applicable, of any such Debtor or
        any if
        its direct or indirect subsidiaries or otherwise, unless and until any such
        Secured Party exercises its right to be substituted for such Debtor as a
        partner
        or member, as applicable, pursuant hereto.

      

      (m)
         To
        the
        extent that the grant of the security interest in the Collateral and the
        enforcement of the terms hereof require the consent, approval or action of
        any
        partner or member, as applicable, of any Debtor or any direct or indirect
        subsidiary of any Debtor or compliance with any provisions of any of the
        Organizational Documents, the Debtors hereby grant such consent and approval
        and
        waive any such noncompliance with the terms of said documents.

      

      [SIGNATURE
        PAGES FOLLOW]

      
        
           

        

        
          -25-

          
            

          

        

        
           

        

      

       

      IN
        WITNESS WHEREOF, the parties hereto have caused this Security
        Agreement to be duly executed on the day and year first above
        written.

      

      

      
        	
                CELSIA
                  TECHNOLOGIES, INC.

              
	 
	 
	
                By: 
                  /s/
                  Michael Karpheden

                
                  

                

                Name: 
                  Michael Karpheden

                Title: 
                  Chief Financial Officer

              
	 
	
                CELSIA
                  TECHNOLOGIES UK LIMITED

              
	 
	 
	
                By: 
                  /s/
                  Michael Karpheden

                
                  

                

                Name:
                  Michael Karpheden

                Title:
                  Chief Financial Officer

              
	
                CELSIA
                  TECHNOLOGIES KOREA, INC.

              
	 
	 
	
                By: 
                  /s/
                  Jae Joon Choi

                
                  

                

                
                

                Name:
                  Jae Joon Choi

                Title:
                  Representative Director

              

      

      

       

      

      

      [SIGNATURE
        PAGE OF HOLDERS FOLLOWS]

      
        
           

        

        
          -26-

          
            

          

        

        
           

        

      

      [SIGNATURE
        PAGE OF HOLDERS TO CSAT SA]

       

      Name
        of
        Investing Entity: __________________________

      Signature
        of Authorized Signatory of Investing entity:
        _________________________*

      Name
        of
        Authorized Signatory: _________________________

      Title
        of
        Authorized Signatory: __________________________

       

      [SIGNATURE
        PAGE OF HOLDERS FOLLOWS]

      

      *
        Executed by each Holder

       

      
        
           

        

          -27-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]