Common use of Security; Guaranty Clause in Contracts

Security; Guaranty. The Company’s obligations under this Debenture are secured by a first priority lien on all finished goods inventory and accounts receivable of the Company and its Subsidiaries pursuant to a Security Agreement (the “Security Agreement”) by and among, the Company, the Subsidiaries, the holders of the Debentures and Manchester Securities Corp., a New York corporation, as collateral agent. The Company’s obligations under the Purchase Agreement and the Debentures are guaranteed by a Subsidiary pursuant to a guaranty dated as of the date hereof.