THIS SECURITY AGREEMENT (this "Agreement") made as of the 1st day of April, 1996 is given by Ozo
Diversified Automation, Inc., a Colorado corporation ("Debtor"), to Steven N. Bronson, Lenore Katz, James S.
Cassel, Bruce C. Barber and Eric Elliott (collectively, the "Secured Parties").
R E C I T A L S:
A. Debtor has borrowed the principal amount of One Hundred Thousand Dollars ($100,000.00) in the aggregate
from Secured Parties, which is evidenced by a series of Promissory Notes of even date herewith from Debtor to
each of Secured Parties (collectively, the "Notes").
B. In order to induce Secured Parties to make said loan to Debtor, Debtor has agreed to grant to each of
Secured Parties a security interest in any and all of Debtor's right, title and interest in and to any and all Accounts
as defined in the Uniform Commercial Code as in effect from time to time in the State of Florida including but not
limited to any and all accounts receivable now or hereafter existing (the "Collateral").
NOW, THEREFORE, with reference to the above recitals, and in reliance thereon, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
1. Creation of Security Interest. Debtor hereby grants to each of Secured Parties a security interest in, and does
hereby collaterally assign, hypothecate, pledge, mortgage, convey and set over unto Secured Parties, the
Collateral and all of Debtor's present and hereafter acquired right, title and interest in and to the Collateral, for the
purpose of securing payment of the principal of and interest on and all other amounts and payments due on
account of the Notes (the "Indebtedness") and the performance of all agreements, covenants, terms and
conditions contained in the Notes and this Security Agreement. The security interest of each of the Secured
Parties ranks equally and ratably without priority over one another.
2. Warranties, Representations and Covenants o