THIS SECURITY AGREEMENT, (“Agreement”) is made as of this _____ day of ___________, 2006,
by and between THE QUANTUM GROUP, INC., a Nevada Corporation, 3420 Fairlane Road, Suite C,
Wellington, FL 33414 (hereinafter “Borrower”), and investors as listed on Schedule “1” of this Agreement
(the investors are hereinafter collectively referred to as the “Bridge Note Purchaser”).
WHEREAS, the Borrower and the Bridge Note Purchaser have entered into that certain Financing
Agreement for Sale of Bridge Securities dated August 21, 2006.
WHEREAS, this Agreement is given to secure performance of the obligations under the 8% Secured
Convertible Bridge Note(s) (the “Bridge Note(s)”) and Subscription Agreement(s) of even date herewith,
executed by Borrower, to Bridge Note Purchaser in the aggregate principal amount of up to $3,500,000,
together with interest thereon as provided for in the Bridge Note(s); and all other liabilities of all kinds of
Borrower to Bridge Note Purchaser, whether created directly or acquired by Bridge Note Purchaser by
assignment or otherwise, and whether now or existing or hereafter arising, absolute or contingent, due or to
become due, (all such liabilities shall collectively be referred to as the “Obligations”).
NOW, THEREFORE, in consideration of the loan made by the Bridge Note Purchaser to Borrower,
and further consideration of the covenants and promises contained in this Agreement, and for other good
and valuable consideration, the parties agree as follows:
Defined Terms . As used in this Agreement, the following terms shall have the following meanings:
“Collateral” has the meaning set forth in paragraph 2 hereof.
“PTO” means the United States Patent and Trademark Office.
“UCC” means the Uniform Commercial Code as in effect in the State of Florida.
Terms Defined in UCC . Where applicable in the context of this Agreement and except as
otherwise defined herein, terms used in this Agreement shall have the