<PAGE>
                                                                   EXHIBIT 10.16


                             BB&T SECURITY AGREEMENT

         THIS SECURITY AGREEMENT ("Security Agreement") is made as of the
September 1, 2004, by and between ABSORPTION CORP., a Nevada corporation (the
"Borrower" or the "Debtor"), and BRANCH BANKING AND TRUST COMPANY, a North
Carolina banking corporation (the "Secured Party").

         WHEREAS, arrangements have been made pursuant to a Letter of Credit and
Reimbursement Agreement of even date herewith between the Borrower and the
Secured Party (the "Reimbursement Agreement") for the issue by the Secured Party
of its irrevocable letter of credit in the aggregate amount of $4,956,384.00
(the "Letter of Credit") to Branch Banking and Trust Company, as trustee (the
"Trustee") to secure those $4,900,000 Tax-Exempt Industrial Development Revenue
Bonds (Absorption Corp. Project), Series 2004 (the "Bonds") issued by the Wayne
County Industrial Development Authority (the "Authority") under an Indenture of
Trust dated as of September 1, 2004 between the Authority and the Trustee (the
"Indenture"); and

         WHEREAS, capitalized terms appearing within but not otherwise defined
shall have the meanings ascribed to them in the Reimbursement Agreement; and

         WHEREAS, the Secured Party is unwilling to extend credit to and to
otherwise deal with the Borrower unless the Borrower grants to the Secured Party
a security interest in certain personal property of the Borrower; and

         WHEREAS, the Borrower is desirous of further securing to the Secured
Party the payment of all obligations which are payable under the Reimbursement
Agreement, including, but without limitation any Swap Agreement and the
performance of the covenants and agreements contained herein and in the
Reimbursement Agreement, the other Related Documents and all other documents
related thereto, as each of the foregoing may from time to time be amended;

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and promises herein contained, the parties hereto agree as follows:

I.       DEFINITIONS.

         1.1   COLLATERAL. Unless specific items of personal property are
               described below, the Collateral shall consist of all now owned
               and hereafter acquired and wherever located personal property of
               Debtor identified below, each capitalized term as defined in
               Article 9 of the Georgia Uniform Commercial Code ("UCC") (check
               applicable items):


         [ ]   (i)     Accounts, including all contract rights and
                       health-care-insurance receivables;

         [ ]   (i-a)   The Account(s), contract right(s) and/or
                       Health-Care-Insurance Receivables specifically described
                       as follows:

                       ---------------------------------------------------------

                       ---------------------------------------------------------

                       ---------------------------------------------------------


         [ ]   (ii)    Inventory, including all returned inventory;

         [ ]   (ii-a)  The Inventory specifically described as follows:

                       ---------------------------------------------------------

                       ---------------------------------------------------------

                       ---------------------------------------------------------

<PAGE>

         [X]   (iii)   Equipment, including all Accessions thereto, and all
                       manufacturer's warranties, parts and tools therefor;

         [ ]   (iii-a) The Equipment, including all Accessions thereto, all
                       manufacturer's warranties therefor, and all parts and
                       tools therefor, specifically described as follows:

                       ---------------------------------------------------------

                       ---------------------------------------------------------

                       ---------------------------------------------------------

         [ ]   (iv)    Investment Property, including the following
                       certificated securities and/or securities account(s)
                       specifically described as follows:

                       ---------------------------------------------------------

                       ---------------------------------------------------------

                       ---------------------------------------------------------

         [ ]   (v)     Instruments, including all promissory notes and
                       certificated certificates of deposit specifically
                       described as follows:

                       ---------------------------------------------------------

                       ---------------------------------------------------------

                       ---------------------------------------------------------

         [ ]   (vi)    Deposit Accounts with Secured Party specifically
                       described below (list account number(s)):

         [ ]   (vi-a)  The Deposit Accounts with other financial institutions
                       specifically described as follows (list financial
                       institution and account numbers):

                       ---------------------------------------------------------

                       ---------------------------------------------------------

                       ---------------------------------------------------------

         [ ]   (vii)   Chattel Paper (whether tangible or electronic);

         [ ]   (vii-a) The Chattel Paper specifically described as follows:

                       ---------------------------------------------------------

                       ---------------------------------------------------------

                       ---------------------------------------------------------

         [ ]   (viii)  Goods, including all Fixtures and timber to be cut,
                       located or situated on the real property specifically
                       described as follows (list legal description as shown on
                       deed including county and state):

                       ---------------------------------------------------------

                       ---------------------------------------------------------

                       ---------------------------------------------------------


                                       2
<PAGE>

         [ ]   (ix)    Farm Products, including all crops grown, growing or to
                       be grown, livestock (born and unborn), supplies used or
                       produced in a farming operation, and products of crops
                       and livestock;

         [ ]   (ix-a)  The Farm Products specifically described as follows:

                       ---------------------------------------------------------

                       ---------------------------------------------------------

         [ ]   (x)     As-Extracted Collateral from the following location(s)
                       (list legal description including county and state):

                       ---------------------------------------------------------

         [ ]   (xi)    The Letter-of-Credit Rights under the following letter(s)
                       of credit (list issuer, number and amount):

                       ---------------------------------------------------------


         [ ]   (xii)   Documents of Title, including all warehouse receipts and
                       bills of lading specifically described as follows:

                       ---------------------------------------------------------


         [ ]   (xiii)  Commercial Tort Claim(s) more specifically described as
                       follows:

                       ---------------------------------------------------------

         [ ]   (xiv)   Money, including currency and/or rare coins delivered to
                       and in possession of the Secured Party specifically
                       described as follows:

                       ---------------------------------------------------------

         [ ]   (xv)    Software specifically described as follows:

                       ---------------------------------------------------------

         [ ]   (xvi)   Manufactured Home(s):

               <Table>
               <Caption>
                                                                               Doublewide
                      Model            Year         Serial Number 1         Serial Number 2
               -------------------------------------------------------------------------------
               <S>                     <C>          <C>                     <C>
               1.
               -------------------------------------------------------------------------------
               2.
               -------------------------------------------------------------------------------
               </Table>

                                       3
<PAGE>



         [ ]   (xvii)  Vehicles, including recreational vehicles and watercraft
                       described below:

               <Table>
               <Caption>
                                                                                  VIN Number/
                      New/Used           Year/Make        Model/Body Type        Serial Number
               ---------------------------------------------------------------------------------------
               <S>                       <C>              <C>                    <C>
               1.
               ---------------------------------------------------------------------------------------
               2.
               ---------------------------------------------------------------------------------------
               3.
               ---------------------------------------------------------------------------------------
               4.
               ---------------------------------------------------------------------------------------
               5.
               ---------------------------------------------------------------------------------------
               </Table>

         [ ]   (xviii) General intangibles, including all Payment Intangibles,
                       copyrights, trademarks, patents, tradenames, tax refunds,
                       company records (paper and electronic), rights under
                       equipment leases, warranties, software licenses, and the
                       following, if any:

                       ---------------------------------------------------------

         [ ]   (xix)   Supporting Obligations;


         [X]   (xx)    to the extent not listed above as original collateral,
                       all proceeds (cash, insurance and non-cash) and products
                       of the foregoing.

         1.2   OBLIGATIONS. This Security Agreement secures the following
               (collectively, the "Obligations"):

               (i)     the payment of all obligations which are payable under
                       the Reimbursement Agreement, including, but without
                       limitation any Swap Agreement and the performance of the
                       covenants and agreements contained herein and in the
                       Reimbursement Agreement and the Related Documents, and
                       all other documents related thereto, as each of the
                       foregoing may from time to time be amended (collectively,
                       the "Loan Documents");

               (ii)    all of Debtor's or Borrower's present and future
                       indebtedness and obligations to Secured Party;

               (iii)   the repayment of (a) any amounts that Secured Party may
                       advance or spend for the maintenance or preservation of
                       the Collateral, and (b) any other expenditures that
                       Secured Party may make under the provisions of this
                       Security Agreement or for the benefit of Debtor or
                       Borrower;

               (iv)    all amounts owed under any modifications, renewals,
                       extensions or substitutions of any of the foregoing
                       obligations;

               (v)     all Default Costs, as defined in Paragraph VIII of this
                       Security Agreement; and

               (vi)    any of the foregoing that may arise after the filing of a
                       petition by or against Debtor or Borrower under the
                       Bankruptcy Code, even if the obligations do not accrue
                       because of the automatic stay under Bankruptcy Code
                       Section 362 or otherwise.

         1.3   UCC DEFINITIONS. Any term used in the UCC and not otherwise
               defined in this Security Agreement has the meaning given to the
               term in the UCC.

II.      GRANT OF SECURITY INTEREST.

         Debtor grants a security interest in the Collateral to Secured Party to
         secure the payment and performance of the Obligations.


                                       4
<PAGE>

III.     PERFECTION OF SECURITY INTERESTS.

         3.1   FILING OF SECURITY INTERESTS.

               (i)     Debtor authorizes Secured Party to file any financing
                       statement (the "Financing Statement") describing the
                       Collateral in any location deemed necessary and
                       appropriate by Secured Party.

               (ii)    Debtor authorizes Secured Party to file a Financing
                       Statement describing any agricultural liens or other
                       statutory liens held by Secured Party.

               (iii)   Secured Party shall receive prior to the closing an
                       official report from the Secretary of State of each Place
                       of Business and the Debtor State, each as defined below,
                       collectively (the "Filing Reports") indicating that
                       Secured Party's security interest is prior to all other
                       security interests or other interests reflected in the
                       report.

         3.2   POSSESSION.

               (i)     Debtor shall have possession of the Collateral, except
                       where expressly otherwise provided in this Security
                       Agreement or where Secured Party chooses to perfect its
                       security interest by possession in addition to the filing
                       of a Financing Statement.

               (ii)    Where Collateral is in the possession of a third party,
                       Debtor will join with Secured Party in notifying the
                       third party of Secured Party's security interest and
                       obtaining an acknowledgment from the third party that it
                       is holding the Collateral for the benefit of Secured
                       Party.

         3.3   CONTROL AGREEMENTS. Debtor will cooperate with Secured Party in
               obtaining a control agreement in form and substance satisfactory
               to Secured Party with respect to Collateral consisting of (check
               appropriate items):

               [ ]     Deposit Accounts (for deposit accounts at other
                       financial institutions);

               [ ]     Investment Property (for securities accounts, mutual
                       funds and other uncertificated securities;

               [ ]     Letter-of-credit rights; and/or

               [ ]     Electronic chattel paper.

         3.4   MARKING OF CHATTEL PAPER. If Chattel Paper is part of the
               Collateral, Debtor will not create any Chattel Paper without
               placing a legend on the Chattel Paper acceptable to Secured Party
               indicating that Secured Party has a security interest in the
               Chattel Paper.

IV.      POST-CLOSING COVENANTS AND RIGHTS CONCERNING THE COLLATERAL.

         4.1   INSPECTION. The Secured Party may inspect any Collateral in the
               Debtor's possession, at any time upon reasonable notice.

         4.2   PERSONAL PROPERTY. Except for items specifically identified by
               Debtor and Secured Party as Fixtures, the Collateral shall remain
               personal property at all times, and Debtor shall not affix any of
               the Collateral to any real property in any manner which would
               change its nature from that of personal property to real property
               or to a fixture.

         4.3   SECURED PARTY'S COLLECTION RIGHTS. Secured Party shall have the
               right at any time to enforce Debtor's rights against any account
               debtors and obligors.

         4.4   LIMITATIONS ON OBLIGATIONS CONCERNING MAINTENANCE OF COLLATERAL.

               (i)     RISK OF LOSS. Debtor has the risk of loss of the
                       Collateral.

               (ii)    NO COLLECTION OBLIGATION. Secured Party has no duty to
                       collect any income accruing on the Collateral or to
                       preserve any rights relating to the Collateral.


                                       5
<PAGE>

         4.5   NO DISPOSITION OF COLLATERAL. Secured Party does not authorize,
               and Debtor agrees not to:

               (i)     make any sales or leases of any of the Collateral, except
                       for sales of inventory in the ordinary course of
                       business;

               (ii)    license any of the Collateral; or

               (iii)   grant any other security interest in any of the
                       Collateral, except for purchase money security interests
                       permitted by the Reimbursement Agreement.

         4.6   PURCHASE MONEY SECURITY INTERESTS. To the extent Debtor uses the
               Bonds to purchase Collateral, Debtor's repayment of the
               Obligations shall apply on a "first-in-first-out" basis so that
               the portion of the Bonds used to purchase a particular item of
               Collateral shall be paid in the chronological order the Debtor
               purchased the Collateral.

         4.7   INSURANCE. Debtor shall obtain and keep in force such insurance
               on the Collateral as is normal and customary in the Debtor's
               business or as the Secured Party may require, all in such
               amounts, under such forms of policies, upon such terms, for such
               periods and written by such insurance companies as the Secured
               Party may approve. All policies of insurance will contain the
               long-form Lender's Loss Payable clause in favor of the Secured
               Party, and the Debtor shall deliver the policies or complete
               copies thereof to the Secured Party. Such policies shall be
               noncancellable except upon thirty (30) days' prior written notice
               to the Secured Party. The proceeds of all such insurance, if any
               loss should occur, may be applied by the Secured Party to the
               payment of the Obligations or to the replacement of any of the
               Collateral damaged or destroyed, as the Secured Party may elect
               or direct in its sole discretion, except as provided in the Deed
               of Trust. The Debtor hereby appoints (which appointment
               constitutes a power coupled with an interest and is irrevocable
               as long as any of the Obligations remain outstanding) Secured
               Party as its lawful attorney-in-fact with full authority to make,
               adjust, settle claims under and/or cancel such insurance and to
               endorse the Debtor's name on any instruments or drafts issued by
               or upon any insurance companies.

V.       DEBTOR'S REPRESENTATIONS AND WARRANTIES.

         Debtor represents and warrants to Secured Party:

         5.1   TITLE TO AND TRANSFER OF COLLATERAL. It has rights in or the
               power to transfer the Collateral and its title to the Collateral
               is free of all adverse claims, liens, security interests and
               restrictions on transfer or pledge except as created by this
               Security Agreement.

         5.2   LOCATION OF COLLATERAL. All collateral consisting of goods
               (equipment, inventory, fixtures, crops, unborn young of animals,
               timber to be cut, manufactured homes; and other tangible, movable
               personal property) is located solely in the following States (the
               "Collateral States"):

                     Georgia
               -----------------------------------------------------------------


         5.3   LOCATION, STATE OF INCORPORATION AND NAME OF EACH DEBTOR.
               Debtor's:

               (i)     chief executive office (if Debtor has more than one place
                       of business), place of business (if Debtor has one place
                       of business), or principal residence (if Debtor is an
                       individual), is located in the following State and
                       address (with regard to each Debtor, the "Place of
                       Business"):

                       Absorption Corp.

                       6960 Salashan Parkway

                       Ferndale, WA 98248

               (ii)    state of incorporation or organization for Debtor is
                       Nevada (as applicable to each Debtor, the "Debtor
                       State");


                                       6
<PAGE>

               (iii)   exact legal name is as set forth in the first paragraph
                       of this Security Agreement.

         5.4   BUSINESS PURPOSE. None of the Obligations is a Consumer
               Transaction, as defined in the UCC and none of the Collateral has
               been or will be purchased or held primarily for personal, family
               or household purposes.

VI.      DEBTOR'S COVENANTS.

         Until the Obligations are paid in full, Debtor agrees that it will:

         6.1   preserve its legal existence and not, in one transaction or a
               series of related transactions, merge into or consolidate with
               any other entity, or sell all or substantially all of its assets;

         6.2   not change the Debtor's State of its registered organization;

         6.3   not change its registered name without providing Secured Party
               with 30 days' prior written notice; and

         6.4   not change the state of its Place of Business or, if Debtor is an
               individual, change his state of residence without providing
               Secured Party with 30 days' prior written notice.

VII.     EVENTS OF DEFAULT.

         The occurrence of any of the following shall, at the option of Secured
         Party, be an Event of Default:

         7.1   Any Event of Default by Borrower or Debtor under the Loan
               Documents or any of the other Obligations;

         7.2   Debtor's failure to comply with any of the provisions of, or the
               incorrectness of any representation or warranty contained in,
               this Security Agreement or in any other document relating to the
               Obligations which is not cured within 30 days following written
               notice from Bank to Debtor of such failure;

         7.3   Transfer or disposition of any of the Collateral, except as
               expressly permitted by this Security Agreement;

         7.4   Attachment, execution or levy on any of the Collateral;

         7.5   Debtor voluntarily or involuntarily becoming subject to any
               proceeding under (a) the Bankruptcy Code or (b) any similar
               remedy under state statutory or common law;

         7.6   Debtor shall fail to comply with, or become subject to any
               administrative or judicial proceeding under any federal, state or
               local (a) hazardous waste or environmental law, (b) asset
               forfeiture or similar law which can result in the forfeiture of
               property, or (c) other law, where noncompliance may have any
               significant effect on the Collateral; or

         7.7   Secured Party shall receive at any time following the closing a
               UCC filing report indicating that Secured Party's security
               interest is not prior to all other security interests or other
               interests reflected in the report.

VIII.    DEFAULT COSTS.

         8.1   Should an Event of Default occur, Debtor will pay to Secured
               Party all costs incurred by the Secured Party for the purpose of
               enforcing its rights hereunder, including:

               (i)     costs of foreclosure;

               (ii)    costs of obtaining money damages; and

               (iii)   a reasonable fee for the service of attorneys employed by
                       Secured Party for any purpose related to this Security
                       Agreement or the Obligations, including without
                       limitation consultation, drafting documents, sending
                       notices or instituting, prosecuting or defending
                       litigation or arbitration.


                                       7
<PAGE>

IX.      REMEDIES UPON DEFAULT.

         9.1   GENERAL. Upon any Event of Default, Secured Party may pursue any
               remedy available at law (including those available under the
               provisions of the UCC), or in equity to collect, enforce or
               satisfy any Obligations then owing, whether by acceleration or
               otherwise.

         9.2   CONCURRENT REMEDIES. Upon any Event of Default, Secured Party
               shall have the right to pursue any of the following remedies
               separately, successively or concurrently:

               (i)     File suit and obtain judgment and, in conjunction with
                       any action, Secured Party may seek any ancillary remedies
                       provided by law or at equity, including levy of
                       attachment and garnishment.

               (ii)    Take possession of any Collateral if not already in its
                       possession without demand and without legal process. Upon
                       Secured Party's demand, Debtor will assemble and make the
                       Collateral available to Secured Party as it directs.
                       Debtor grants to Secured Party the right, for this
                       purpose, to enter into or on any premises where
                       Collateral may be located.

               (iii)   Without taking possession, sell, lease or otherwise
                       dispose of the Collateral at public or private sale in
                       accordance with the UCC.

X.       FORECLOSURE PROCEDURES.

         10.1  NO WAIVER. No delay or omission by Secured Party to exercise any
               right or remedy accruing upon any Event of Default shall (a)
               impair any right or remedy, (b) waive any default or operate as
               an acquiescence to the Event of Default, or (c) affect any
               subsequent default of the same or of a different nature.

         10.2  NOTICES. Secured Party shall give Debtor such notice of any
               private or public sale as may be required by the UCC.

         10.3  CONDITION OF COLLATERAL. Secured Party has no obligation to
               repair, clean-up or otherwise prepare the Collateral for sale.

         10.4  NO OBLIGATION TO PURSUE OTHERS. Secured Party has no obligation
               to attempt to satisfy the Obligations by collecting them from any
               other person liable for them and Secured Party may release,
               modify or waive any collateral provided by any other person to
               secure any of the Obligations, all without affecting Secured
               Party's rights against Debtor. Debtor waives any right it may
               have to require Secured Party to pursue any third person for any
               of the Obligations.

         10.5  COMPLIANCE WITH OTHER LAWS. Secured Party may comply with any
               applicable state or federal law requirements in connection with a
               disposition of the Collateral and compliance will not be
               considered adversely to affect the commercial reasonableness of
               any sale of the Collateral.

         10.6  WARRANTIES. Secured Party may sell the Collateral without giving
               any warranties as to the Collateral and may specifically disclaim
               any warranties of title or the like. This procedure will not be
               considered adversely to affect the commercial reasonableness of
               any sale of the Collateral.

         10.7  SALES ON CREDIT. If Secured Party sells any of the Collateral
               upon credit, Debtor will be credited only with payments actually
               made by the purchaser, received by Secured Party and applied to
               the indebtedness of the purchaser. In the event the purchaser
               fails to pay for the Collateral, Secured Party may resell the
               Collateral and Debtor shall be credited with the proceeds of the
               sale as and when received, less expenses.

         10.8  PURCHASES BY SECURED PARTY. In the event Secured Party purchases
               any of the Collateral being sold, Secured Party may pay for the
               Collateral by crediting some or all of the Obligations of the
               Debtor.

         10.9  NO MARSHALLING. Secured Party has no obligation to marshal any
               assets in favor of Debtor, or against or in payment of:

               (i)     this Security Agreement,

                                       8
<PAGE>


               (ii)    any of the other Obligations, or

               (iii)   any other obligation owed to Secured Party, Debtor or any
                       other person.

XI.      MISCELLANEOUS.

         11.1  ASSIGNMENT.

               (i)     BINDS ASSIGNEES. This Security Agreement shall bind and
                       shall inure to the benefit of the successors and assigns
                       of Secured Party, and shall bind all heirs, personal
                       representatives, executors, administrators, successors
                       and permitted assigns of Debtor.

               (ii)    NO ASSIGNMENTS BY DEBTOR. Secured Party does not consent
                       to any assignment by Debtor except as expressly provided
                       in this Security Agreement.

               (iii)   SECURED PARTY ASSIGNMENTS. Secured Party may assign its
                       rights and interests under this Security Agreement. If an
                       assignment is made, Debtor shall render performance under
                       this Security Agreement to the assignee. Debtor waives
                       and will not assert against any assignee any claims,
                       defenses or set-offs which Debtor could assert against
                       Secured Party except defenses which cannot be waived.

         11.2  SEVERABILITY. Should any provision of this Security Agreement be
               found to be void, invalid or unenforceable by a court or panel of
               arbitrators of competent jurisdiction, that finding shall only
               affect the provisions found to be void, invalid or unenforceable
               and shall not affect the remaining provisions of this Security
               Agreement.

         11.3  NOTICES. Any notices required by this Security Agreement shall be
               delivered in accordance with the Reimbursement Agreement.

         11.4  HEADINGS. Section headings used in this Security Agreement are
               for convenience only. They are not a part of this Security
               Agreement and shall not be used in construing it.

         11.5  GOVERNING LAW. This Security Agreement is being executed and
               delivered and is intended to be performed in the State of Georgia
               and shall be construed and enforced in accordance with the laws
               of the State of Georgia, except to the extent that the UCC
               provides for the application of the law of the Debtor State.

         11.6  RULES OF CONSTRUCTION.

               (i)     No reference to "proceeds" in this Security Agreement
                       authorizes any sale, transfer, or other disposition of
                       the Collateral by the Debtor except in the ordinary
                       course of business.

               (ii)    "Includes" and "including" are not limiting.

               (iii)   "Or" is not exclusive.

               (iv)    "All" includes "any" and "any" includes "all."

         11.7  INTEGRATION AND MODIFICATIONS.

               (i)     This Security Agreement is the entire agreement of the
                       Debtor and Secured Party concerning its subject matter.

               (ii)    Any modification to this Security Agreement must be made
                       in writing and signed by the party adversely affected.

         11.8  WAIVER. Any party to this Security Agreement may waive the
               enforcement of any provision to the extent the provision is for
               its benefit.

         11.9  FURTHER ASSURANCES. Debtor agrees to execute any further
               documents, and to take any further actions, reasonably requested
               by Secured Party to evidence or perfect the security interest
               granted herein or to effectuate the rights granted to Secured
               Party herein.


                                       9
<PAGE>


         The parties have signed this Security Agreement under seal as of the
day and year first above written.

                                        ABSORPTION CORP.

                                        By:      /s/ Doug Ellis
                                                 -------------------------------
                                                 Douglas E. Ellis
                                                 President







                                        BRANCH BANKING AND TRUST COMPANY

                                        By:      Daniel Smith
                                                 -------------------------------
                                                 Daniel L. Smith
                                                 Senior Vice President



                                       10