THIS SECURITY AGREEMENT (this "Agreement") is made and entered into as of August 19, 2005 by
VYTERIS HOLDINGS (NEVADA), INC., a Nevada corporation (the "Borrower"), and VYTERIS, INC., a
Delaware corporation (the "Guarantor" and, together with the Borrower, the "Obligors"), in favor of Satellite
Asset Management, L.P. (the "Agent") and each of the lenders whose names appear on the signature pages
hereof. Such lenders are each referred to herein as a "Secured Party" and, collectively, as the "Secured Parties".
This Agreement is being executed and delivered by the Obligors and the Secured Parties in connection with that
certain Securities Purchase Agreement dated concurrently herewith (the "Purchase Agreement") by and between
the Borrower and each Secured Party. Capitalized terms used herein and not otherwise defined herein shall have
the respective meanings set forth in the Purchase Agreement.
WHEREAS, pursuant to the terms of the Purchase Agreement, the Secured Parties have agreed to purchase
from the Borrower, and the Borrower has agreed to sell to the Secured Parties, Senior Secured Convertible
Debentures (the "Debentures");
WHEREAS, the Borrower and Guarantor, a wholly owned subsidiary of the Borrower, shall each derive
substantial direct and/or indirect benefits from the transactions contemplated by the Purchase Agreement and the
WHEREAS, it is a condition to the obligation of the Secured Parties to purchase the Debentures that the
Obligors enter into this Agreement; and
WHEREAS, pursuant to that certain Intercreditor Agreement, dated as of the date hereof (the "Intercreditor
Agreement"), by and among the Agent and the Secured Parties, the Secured Parties and such other secured
parties have designated the Agent as their collateral agent.
NOW, THEREFORE, in consideration of the foregoing, the covenants set forth herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Agent, Secur