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Date: May 14, 2001 SECURITY AGREEMENT LENDER/SECURED PARTY: DEBTOR(S)/PLEDGOR(S): MUSI INVESTMENTS S.A. FRISBY TECHNOLOGIES, INC. 231 VAL DES BONS MALADES 3195 CENTRE PARK BOULEVARD L-2121 LUXEMBOURG-KIRCHBERG WINSTON-SALEM, FORSYTH COUNTY, NC 27107