EXHIBIT 10.13

                               SECURITY AGREEMENT

1.       Identification.

         This Security Agreement (the "Agreement"), dated as of March 2, 2005,
is entered into by and between Dyneco Corporation, a Minnesota corporation
("Debtor"), and Barbara Mittman, as collateral agent acting in the manner and to
the extent described in the Collateral Agent Agreement defined below (the
"Collateral Agent"), for the benefit of the parties identified on Schedule A
hereto (collectively, the "Lenders").

2.       Recitals.

         2.1      The Lenders have made or are making loans and will make
additional loans to Debtor (the "Loans"). It is beneficial to Debtor that the
Loans were made, are being made and will be made.

         2.2      The Loans are evidenced by one or more convertible promissory
notes (each a "Convertible Note") issued by Debtor on or about the date of this
Agreement, pursuant to one or more subscription agreements (each a "Subscription
Agreement") to which Debtor and Lenders are parties. The Notes are further
identified on Schedule A hereto and were and will be executed by Debtor as
"Borrower" or "Debtor" for the benefit of each Lender as the "Holder" or
"Lender" thereof.

         2.3      In consideration of the Loans made by Lenders to Debtor and
for other good and valuable consideration, and as security for the performance
by Debtor of its obligations under the Notes and as security for the repayment
of the Loans and all other sums due from Debtor to Lenders arising under the
Notes presently outstanding or to be outstanding in the future, Subscription
Agreements, and any of the other Transaction Documents (as defined in the
Subscription Agreement) (collectively, the "Obligations"), Debtor, for good and
valuable consideration, receipt of which is acknowledged, has agreed to grant to
the Collateral Agent, for the benefit of the Lenders, a security interest in the
Collateral (as such term is hereinafter defined), on the terms and conditions
hereinafter set forth. Obligations include all future advances by Lenders to
Debtor advanced on a pro rata basis by all Lenders on substantially the same
terms.

         2.4      The Lenders have appointed Barbara Mittman as Collateral Agent
pursuant to that certain Collateral Agent Agreement dated at or about March 2,
2005 ("Collateral Agent Agreement"), among the Lenders and Collateral Agent.

         2.5      The following defined terms which are defined in the Uniform
Commercial Code in effect in the State of New York on the date hereof are used
herein as so defined: Accounts, Chattel Paper, Documents, Equipment, General
Intangibles, Instruments, Inventory and Proceeds.

3.       Grant of General Security Interest in Collateral.

         3.1      As security for the Obligations of Debtor, Debtor hereby
grants the Collateral Agent, for the benefit of the Lenders, a security interest
in the Collateral.

         3.2      "Collateral" shall mean all of the following property of
Debtor:

                  (A)      All now owned and hereafter acquired right, title and
                           interest of Debtor in, to and in respect of all
                           Accounts, Goods, real or personal property, all
                           present and future books and records relating to the
                           foregoing and all products and Proceeds of the
                           foregoing, and as set forth below:

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                           (i)      Accounts: All now owned and hereafter
acquired right, title and interest of Debtor in, to and in respect of all:
Accounts, interests in goods represented by Accounts, returned, reclaimed or
repossessed goods with respect thereto and rights as an unpaid vendor; contract
rights; Chattel Paper; investment property; General Intangibles (including but
not limited to, tax and duty claims and refunds, registered and unregistered
patents, trademarks, service marks, certificates, copyrights trade names,
applications for the foregoing, trade secrets, goodwill, processes, drawings,
blueprints, customer lists, licenses, whether as licensor or licensee, chooses
in action and other claims, and existing and future leasehold interests in
equipment, real estate and fixtures); Documents; Instruments; letters of credit,
bankers' acceptances or guaranties; cash moneys, deposits; securities, bank
accounts, deposit accounts, credits and other property now or hereafter owned or
held in any capacity by Debtor, as well as its affiliates, agreements or
property securing or relating to any of the items referred to above;

                           (ii)     Goods: All now owned and hereafter acquired
right, title and interest of Debtor in, to and in respect of goods, including,
but not limited to:

                                    (a)      All Inventory, wherever located,
whether now owned or hereafter acquired, of whatever kind, nature or
description, including all raw materials, work-in-process, finished goods, and
materials to be used or consumed in Debtor' business; finished goods, timber cut
or to be cut, oil, gas, hydrocarbons, and minerals extracted or to be extracted,
and all names or marks affixed to or to be affixed thereto for purposes of
selling same by the seller, manufacturer, lessor or licensor thereof and all
Inventory which may be returned to Debtor by its customers or repossessed by
Debtor and all of Debtor' right, title and interest in and to the foregoing
(including all of Debtor' rights as a seller of goods);

                                    (b)      All Equipment and fixtures,
wherever located, whether now owned or hereafter acquired, including, without
limitation, all machinery, motor vehicles, furniture and fixtures, and any and
all additions, substitutions, replacements (including spare parts), and
accessions thereof and thereto (including, but not limited to Debtor' rights to
acquire any of the foregoing, whether by exercise of a purchase option or
otherwise);

                           (iii)    Property: All now owned and hereafter
acquired right, title and interests of Debtor in, to and in respect of any real
or other personal property in or upon which Debtor has or may hereafter have a
security interest, lien or right of setoff;

                           (iv)     Books and Records: All present and future
books and records relating to any of the above including, without limitation,
all computer programs, printed output and computer readable data in the
possession or control of the Debtor, any computer service bureau or other third
party; and

                           (v)      Products and Proceeds: All products and
Proceeds of the foregoing in whatever form and wherever located, including,
without limitation, all insurance proceeds and all claims against third parties
for loss or destruction of or damage to any of the foregoing.

                  (B)      All now owned and hereafter acquired right, title and
interest of Debtor in, to and in respect of the following:

                           (i)      the shares of stock, partnership interests,
member interests or other equity interests at any time and from time to time
acquired by Debtor of any and all entities now or hereafter existing, all or a
portion of such stock or other equity interests which are acquired by such
entities at any time (such entities, together with the existing issuers, being
hereinafter referred to collectively as the

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         "Pledged Issuers" and individually as a "Pledged Issuer"), the
certificates representing such shares, partnership interests, member interests
or other interests all options and other rights, contractual or otherwise, in
respect thereof and all dividends, distributions, cash, instruments, investment
property and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such shares,
partnership interests, member interests or other interests;

                           (ii)     all additional shares of stock, partnership
interests, member interests or other equity interests from time to time acquired
by Debtor, of any Pledged Issuer, the certificates representing such additional
shares, all options and other rights, contractual or otherwise, in respect
thereof and all dividends, distributions, cash, instruments, investment property
and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such additional
shares, interests or equity; and

                           (iii)    all security entitlements of Debtor in, and
all Proceeds of any and all of the foregoing in each case, whether now owned or
hereafter acquired by Debtor and howsoever its interest therein may arise or
appear (whether by ownership, security interest, lien, claim or otherwise).

         3.3      The Collateral Agent is hereby specifically authorized, after
the Maturity Date (defined in the Notes) accelerated or otherwise, or after an
Event of Default (as defined herein) and the expiration of any applicable cure
period, to transfer any Collateral into the name of the Collateral Agent and to
take any and all action deemed advisable to the Collateral Agent to remove any
transfer restrictions affecting the Collateral.

4.       Perfection of Security Interest.

         4.1      Debtor shall prepare, execute and deliver to the Collateral
Agent UCC-1 Financing Statements covering the Collateral. The Collateral Agent
is instructed to prepare and file at Debtor's cost and expense, financing
statements in such jurisdictions deemed advisable to the Collateral Agent,
including but not limited to Minnesota and Florida. The Financing Statements are
deemed to have been filed for the benefit of the Collateral Agent and Lenders
identified on Schedule A hereto.

         4.2      All other certificates and instruments constituting Collateral
from time to time required to be pledged to Collateral Agent pursuant to the
terms hereof (the "Additional Collateral") shall be delivered to Collateral
Agent promptly upon receipt thereof by or on behalf of Debtor. All such
certificates and instruments shall be held by or on behalf of Collateral Agent
pursuant hereto and shall be delivered in suitable form for transfer by
delivery, or shall be accompanied by duly executed instruments of transfer or
assignment or undated stock powers executed in blank, all in form and substance
satisfactory to Collateral Agent. If any Collateral consists of uncertificated
securities, unless the immediately following sentence is applicable thereto,
Debtor shall cause Collateral Agent (or its custodian, nominee or other
designee) to become the registered holder thereof, or cause each issuer of such
securities to agree that it will comply with instructions originated by
Collateral Agent with respect to such securities without further consent by
Debtor. If any Collateral consists of security entitlements, Debtor shall
transfer such security entitlements to Collateral Agent (or its custodian,
nominee or other designee) or cause the applicable securities intermediary to
agree that it will comply with entitlement orders by Collateral Agent without
further consent by Debtor.

         4.3      Within five (5) days after the receipt by Debtor of any
Additional Collateral, a Pledge Amendment, duly executed by Debtor, in
substantially the form of Annex I hereto (a "Pledge Amendment"), shall be
delivered to Collateral Agent in respect of the Additional Collateral to be
pledged pursuant to this Agreement. Debtor hereby authorizes Collateral Agent to
attach each Pledge Amendment

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         to this Agreement and agrees that all certificates or instruments
listed on any Pledge Amendment delivered to Collateral Agent shall for all
purposes hereunder constitute Collateral.

         4.4      If Debtor shall receive, by virtue of Debtor being or having
been an owner of any Collateral, any (i) stock certificate (including, without
limitation, any certificate representing a stock dividend or distribution in
connection with any increase or reduction of capital, reclassification, merger,
consolidation, sale of assets, combination of shares, stock split, spin-off or
split-off), promissory note or other instrument, (ii) option or right, whether
as an addition to, substitution for, or in exchange for, any Collateral, or
otherwise, (iii) dividends payable in cash (except such dividends permitted to
be retained by Debtor pursuant to Section 5.2 hereof) or in securities or other
property or (iv) dividends or other distributions in connection with a partial
or total liquidation or dissolution or in connection with a reduction of
capital, capital surplus or paid-in surplus, Debtor shall receive such stock
certificate, promissory note, instrument, option, right, payment or distribution
in trust for the benefit of Collateral Agent, shall segregate it from Debtor's
other property and shall deliver it forthwith to Collateral Agent, in the exact
form received, with any necessary endorsement and/or appropriate stock powers
duly executed in blank, to be held by Collateral Agent as Collateral and as
further collateral security for the Obligations.

5.       Distribution on Liquidation.

         5.1      If any sum is paid as a liquidating distribution on or with
respect to the Collateral, Debtor shall deliver same to the Collateral Agent to
be applied to the Obligations, then due, in accordance with the terms of the
Convertible Notes.

         5.2      So long as no Event of Default exists, Debtor shall be
entitled (i) to exercise all voting power pertaining to any of the Collateral,
provided such exercise is not contrary to the interests of the Lenders and does
not impair the Collateral and (ii) may receive and retain any and all dividends,
interest payments or other distributions paid in respect of the Collateral.

         5.3.     Upon the occurrence and during the continuation of an Event of
Default, all rights of Debtor, upon notice given by Collateral Agent, to
exercise the voting power and receive payments, which it would otherwise be
entitled to pursuant to Section 5.2, shall cease and all such rights shall
thereupon become vested in Collateral Agent, which shall thereupon have the sole
right to exercise such voting power and receive such payments.

         5.4      All dividends, distributions, interest and other payments
which are received by Debtor contrary to the provisions of Section 5.3 shall be
received in trust for the benefit of Collateral Agent, shall be segregated from
other funds of Debtor, and shall be forthwith paid over to Collateral Agent as
Collateral in the exact form received with any necessary endorsement and/or
appropriate stock powers duly executed in blank, to be held by Collateral Agent
as Collateral and as further collateral security for the Obligations.

6.       Further Action By Debtor; Covenants and Warranties.

         6.1      Collateral Agent at all times shall have a perfected security
interest in the Collateral. Subject to the security interests described herein
and the security interests described on Schedule B hereto, Debtor has and will
continue to have full title to the Collateral free from any liens, leases,
encumbrances, judgments or other claims. Collateral Agent's security interest in
the Collateral constitutes and will continue to constitute a first, prior and
indefeasible security interest in favor of Collateral Agent. Debtor will do all
acts and things, and will execute and file all instruments (including, but not
limited to, security agreements, financing statements, continuation statements,
etc.) reasonably requested by Collateral Agent to establish, maintain and
continue the perfected security interest of Collateral Agent in the Collateral,
and

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         will promptly on demand, pay all costs and expenses of filing and
recording, including the costs of any searches reasonably deemed necessary by
Collateral Agent from time to time to establish and determine the validity and
the continuing priority of the security interest of Collateral Agent, and also
pay all other claims and charges that, in the opinion of Collateral Agent,
exercised in good faith, are reasonably likely to materially prejudice, imperil
or otherwise affect the Collateral or Collateral Agent's or Lenders' security
interests therein.

         6.2      Other than in the ordinary course of business, and except for
Collateral which is substituted by assets of identical or greater value or which
has become obsolete or is of inconsequential in value, Debtor will not sell,
transfer, assign or pledge those items of Collateral (or allow any such items to
be sold, transferred, assigned or pledged), without the prior written consent of
Collateral Agent other than a transfer of the Collateral to a wholly-owned
subsidiary on prior notice to Collateral Agent, and provided the Collateral
remains subject to the security interest herein described. Although Proceeds of
Collateral are covered by this Agreement, this shall not be construed to mean
that Collateral Agent consents to any sale of the Collateral, except as provided
herein. Sales of Collateral in the ordinary course of business shall be free of
the security interest of Lenders and Collateral Agent and Lenders and Collateral
Agent shall promptly execute such documents (including without limitation
releases and termination statements) as may be required by Debtor to evidence or
effectuate the same.

         6.3      Debtor will, at all reasonable times and upon reasonable
notice, allow Collateral Agent or its representatives free and complete access
to the Collateral and all of Debtor's records which in any way relate to the
Collateral, for such inspection and examination as Collateral Agent reasonably
deems necessary.

         6.4      Debtor, at its sole cost and expense, will protect and defend
this Security Agreement, all of the rights of Collateral Agent and Lenders
hereunder, and the Collateral against the claims and demands of all other
persons.

         6.5      Debtor will promptly notify Collateral Agent of any levy,
distraint or other seizure by legal process or otherwise of any part of the
Collateral, and of any threatened or filed claims or proceedings that are
reasonably likely to affect or impair any of the rights of Collateral Agent
under this Security Agreement in any material respect.

         6.6      Debtor, at its own expense, will obtain and maintain in force
insurance policies covering losses or damage to those items of Collateral which
constitute physical personal property. The insurance policies to be obtained by
Debtor shall be in form and amounts reasonably acceptable to Collateral Agent.
Debtor shall make the Collateral Agent first a loss payee thereon to the extent
of its interest in the Collateral. Collateral Agent is hereby irrevocably (until
the Obligations are paid in full) appointed Debtor' attorney-in-fact to endorse
any check or draft that may be payable to Debtor so that Collateral Agent may
collect the proceeds payable for any loss under such insurance. The proceeds of
such insurance (subject to the rights of senior secured parties), less any costs
and expenses incurred or paid by Collateral Agent in the collection thereof,
shall be applied either toward the cost of the repair or replacement of the
items damaged or destroyed, or on account of any sums secured hereby, whether or
not then due or payable.

         6.7      Collateral Agent may, at its option, and without any
obligation to do so, pay, perform and discharge any and all amounts, costs,
expenses and liabilities herein agreed to be paid or performed by Debtor. Upon
Debtor's failure to do so, all amounts expended by Collateral Agent in so doing
shall become part of the Obligations secured hereby, and shall be immediately
due and payable by Debtor to Collateral Agent upon demand and shall bear
interest at the lesser of 15% per annum or the highest legal amount from the
dates of such expenditures until paid.

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         6.8      Upon the request of Collateral Agent, Debtor will furnish to
Collateral Agent within five (5) business days thereafter, or to any proposed
assignee of this Security Agreement, a written statement in form reasonably
satisfactory to Collateral Agent, duly acknowledged, certifying the amount of
the principal and interest and any other sum then owing under the Obligations,
whether to its knowledge any claims, offsets or defenses exist against the
Obligations or against this Security Agreement, or any of the terms and
provisions of any other agreement of Debtor securing the Obligations. In
connection with any assignment by Collateral Agent of this Security Agreement,
Debtor hereby agrees to cause the insurance policies required hereby to be
carried by Debtor, if any, to be endorsed in form satisfactory to Collateral
Agent or to such assignee, with loss payable clauses in favor of such assignee,
and to cause such endorsements to be delivered to Collateral Agent within ten
(10) calendar days after request therefor by Collateral Agent.

         6.9      Debtor will, at its own expense, make, execute, endorse,
acknowledge, file and/or deliver to the Collateral Agent from time to time such
vouchers, invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, reports and
other reasonable assurances or instruments and take further steps relating to
the Collateral and other property or rights covered by the security interest
hereby granted, as the Collateral Agent may reasonably require to perfect its
security interest hereunder.

         6.10     Debtor represents and warrants that it is the true and lawful
exclusive owner of the Collateral, free and clear of any liens and encumbrances.

         6.11     Debtor hereby agrees not to divest itself of any right under
the Collateral except as permitted herein absent prior written approval of the
Collateral Agent, except to a subsidiary organized and located in the United
States on prior notice to Collateral Agent provided the Collateral remains
subject to the security interest herein described.

         6.12     Debtor shall cause each Subsidiary of Debtor not in existence
on the date hereof to execute and deliver to Collateral Agent promptly and in
any event within 10 days after the formation, acquisition or change in status
thereof (A) a guaranty guaranteeing the Obligations and (B) a security and
pledge agreement substantially in the form of this Agreement together with (x)
certificates evidencing all of the capital stock of any entity owned by such
Subsidiary, (y) undated stock powers executed in blank with signature
guaranteed, and (z) such opinion of counsel and such approving certificate of
such Subsidiary as Collateral Agent may reasonably request in respect of
complying with any legend on any such certificate or any other matter relating
to such shares and (E) such other agreements, instruments, approvals, legal
opinions or other documents reasonably requested by Collateral Agent in order to
create, perfect, establish the first priority of or otherwise protect any lien
purported to be covered by any such pledge and security agreement or otherwise
to effect the intent that all property and assets of such Subsidiary shall
become Collateral for the Obligations. For purposes of this Agreement,
"Subsidiary" means, with respect to any entity at any date, any corporation,
limited or general partnership, limited liability company, trust, estate,
association, joint venture or other business entity) of which more than 50% of
(A) the outstanding capital stock having (in the absence of contingencies)
ordinary voting power to elect a majority of the board of directors or other
managing body of such entity, (B) in the case of a partnership or limited
liability company, the interest in the capital or profits of such partnership or
limited liability company or (C) in the case of a trust, estate, association,
joint venture or other entity, the beneficial interest in such trust, estate,
association or other entity business is, at the time of determination, owned or
controlled directly or indirectly through one or more intermediaries, by such
entity.

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7. Power of Attorney.

         After the occurrence and during the uncured continuation of an Event of
Default as defined in Section 9 below, Debtor hereby irrevocably constitutes and
appoints the Collateral Agent as the true and lawful attorney of Debtor, with
full power of substitution, in the place and stead of Debtor and in the name of
Debtor or otherwise, at any time or times, in the discretion of the Collateral
Agent, to take any action and to execute any instrument or document which the
Collateral Agent may deem necessary or advisable to accomplish the purposes of
this Agreement. This power of attorney is coupled with an interest and is
irrevocable until the Obligations are satisfied.

8. Performance By The Collateral Agent.

         If Debtor fails to perform any material covenant, agreement, duty or
obligation of Debtor under this Agreement, the Collateral Agent may, after any
applicable cure period, at any time or times in its discretion, take action to
effect performance of such obligation. All reasonable expenses of the Collateral
Agent incurred in connection with the foregoing authorization shall be payable
by Debtor as provided in Paragraph 12.1 hereof. No discretionary right, remedy
or power granted to the Collateral Agent under any part of this Agreement shall
be deemed to impose any obligation whatsoever on the Collateral Agent with
respect thereto, such rights, remedies and powers being solely for the
protection of the Collateral Agent.

9. Event of Default.

         An event of default ("Event of Default") shall be deemed to have
occurred hereunder upon the occurrence of any event of default as defined and
described in this Agreement, in the Notes, Subscription Agreement, and any other
agreement to which Debtor and a Lender are parties. Upon and after any Event of
Default, after the applicable cure period, if any, any or all of the Obligations
shall become immediately due and payable at the option of the Collateral Agent,
for the benefit of the Lenders, and the Collateral Agent may dispose of
Collateral as provided below. A default by Debtor of any of its material
obligations pursuant to this Agreement shall be an Event of Default hereunder
and an event of default as defined in the Notes, and Subscription Agreement.

10. Disposition of Collateral.

         Upon and after any Event of Default which is then continuing,

         10.1     The Collateral Agent may exercise its rights with respect to
each and every component of the Collateral, without regard to the existence of
any other security or source of payment for the Obligations. In addition to
other rights and remedies provided for herein or otherwise available to it, the
Collateral Agent shall have all of the rights and remedies of a lender on
default under the Uniform Commercial Code then in effect in the State of New
York.

         10.2     In the event of any sale or other disposition of Collateral is
to occur, the Collateral Agent shall provide Debtor with at least five business
(5) days prior written notice (which Debtor agrees is reasonable notice within
the meaning of Section 9.612(a) of the Uniform Commercial Code) of the time and
place of any sale of Collateral which Debtor hereby agrees may be by private
sale. The rights granted in this Section are in addition to any and all rights
available to Collateral Agent under the Uniform Commercial Code.

         10.3     The Collateral Agent is authorized, at any such sale, if the
Collateral Agent deems it advisable to do so, in order to comply with any
applicable securities laws, to restrict the prospective

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         bidders or purchasers to persons who will represent and agree, among
other things, that they are purchasing the Collateral for their own account for
investment, and not with a view to the distribution or resale thereof, or
otherwise to restrict such sale in such other manner as the Collateral Agent
deems advisable to ensure such compliance. Sales made subject to such
restrictions shall be deemed to have been made in a commercially reasonable
manner.

         10.4     All proceeds received by the Collateral Agent for the benefit
of the Lenders in respect of any sale, collection or other enforcement or
disposition of Collateral, shall be applied (after deduction of any amounts
payable to the Collateral Agent pursuant to Paragraph 12.1 hereof) against the
Obligations pro rata among the Lenders in proportion to their interests in the
Obligations. Upon payment in full of all Obligations, Debtor shall be entitled
to the return of all Collateral, including cash, which has not been used or
applied toward the payment of Obligations or used or applied to any and all
costs or expenses of the Collateral Agent incurred in connection with the
liquidation of the Collateral (unless another person is legally entitled
thereto). Any assignment of Collateral by the Collateral Agent to Debtor shall
be without representation or warranty of any nature whatsoever and wholly
without recourse. To the extent allowed by law, each Lender may purchase the
Collateral and pay for such purchase by offsetting up to such Lender's pro rata
portion of the purchase price with sums owed to such Lender by Debtor arising
under the Obligations or any other source.

11.      Waiver of Automatic Stay. Debtor acknowledges and agrees that should a
proceeding under any bankruptcy or insolvency law be commenced by or against
Debtor, or if any of the Collateral should become the subject of any bankruptcy
or insolvency proceeding, then the Collateral Agent should be entitled to, among
other relief to which the Collateral Agent or Lenders may be entitled under the
Note, Subscription Agreement and any other agreement to which the Debtor,
Lenders or Collateral Agent are parties, (collectively "Loan Documents") and/or
applicable law, an order from the court granting immediate relief from the
automatic stay pursuant to 11 U.S.C. Section 362 to permit the Collateral Agent
to exercise all of its rights and remedies pursuant to the Loan Documents and/or
applicable law. Debtor EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY
IMPOSED BY 11 U.S.C. SECTION 362. FURTHERMORE, Debtor EXPRESSLY ACKNOWLEDGES AND
AGREES THAT NEITHER 11 U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE
BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION, 11
U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY
WAY THE ABILITY OF THE COLLATERAL AGENT TO ENFORCE ANY OF ITS RIGHTS AND
REMEDIES UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW. Debtor hereby consents
to any motion for relief from stay which may be filed by the Collateral Agent in
any bankruptcy or insolvency proceeding initiated by or against Debtor, and
further agrees not to file any opposition to any motion for relief from stay
filed by the Collateral Agent. Debtor represents, acknowledges and agrees that
this provision is a specific and material aspect of this Agreement, and that the
Collateral Agent would not agree to the terms of this Agreement if this waiver
were not a part of this Agreement. Debtor further represents, acknowledges and
agrees that this waiver is knowingly, intelligently and voluntarily made, that
neither the Collateral Agent nor any person acting on behalf of the Collateral
Agent has made any representations to induce this waiver, that Debtor has been
represented (or has had the opportunity to be represented) in the signing of
this Agreement and in the making of this waiver by independent legal counsel
selected by Debtor and that Debtor has had the opportunity to discuss this
waiver with counsel.

12.      Miscellaneous.

         12.1 Expenses. Debtor shall pay to the Collateral Agent, on demand, the
amount of any and all reasonable expenses, including, without limitation,
attorneys' fees, legal expenses and brokers' fees, which the Collateral Agent
may incur in connection with (a) sale, collection or other enforcement or
disposition

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         of Collateral; (b) exercise or enforcement of any the rights, remedies
or powers of the Collateral Agent hereunder or with respect to any or all of the
Obligations upon breach or threatened breach; or (c) failure by Debtor to
perform and observe any agreements of Debtor contained herein which are
performed by the Collateral Agent.

         12.2     Waivers, Amendment and Remedies. No course of dealing by the
Collateral Agent and no failure by the Collateral Agent to exercise, or delay by
the Collateral Agent in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, and no single or partial exercise thereof shall
preclude any other or further exercise thereof or the exercise of any other
right, remedy or power of the Collateral Agent. No amendment, modification or
waiver of any provision of this Agreement and no consent to any departure by
Debtor therefrom, shall, in any event, be effective unless contained in a
writing signed by the Collateral Agent, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. The rights, remedies and powers of the Collateral Agent, not only
hereunder, but also under any instruments and agreements evidencing or securing
the Obligations and under applicable law are cumulative, and may be exercised by
the Collateral Agent from time to time in such order as the Collateral Agent may
elect.

         12.3     Notices. All notices or other communications given or made
hereunder shall be in writing and shall be personally delivered or deemed
delivered the first business day after being faxed (provided that a copy is
delivered by first class mail) to the party to receive the same at its address
set forth below or to such other address as either party shall hereafter give to
the other by notice duly made under this Section:

                  To Debtor:        Dyneco Corporation
                                    564 International Place
                                    Rockledge, FL 32955
                                    Attn: Dr. Thomas C. Edwards, President
                                    Fax: (321) 639-6897

                  With a copy to:   Steven I. Weinberger, Esq.
                                    2200 Corporate Blvd., NW, Suite 210
                                    Boca Raton, FL 33431-7307
                                    Fax: (561) 362-9612

                  To Lenders:       To the addresses and telecopier numbers set
                                    forth on Schedule A

                  To the Collateral Agent:  Barbara R. Mittman
                                            Grushko & Mittman, P.C.
                                            551 Fifth Avenue, Suite 1601
                                            New York, New York 10176
                                            Fax: (212) 697-3575

Any party may change its address by written notice in accordance with this
paragraph.

         12.4     Term; Binding Effect. This Agreement shall (a) remain in full
force and effect until payment and satisfaction in full of all of the
Obligations; (b) be binding upon Debtor, and its successors and permitted
assigns; and (c) inure to the benefit of the Collateral Agent, for the benefit
of the Lenders and their respective successors and assigns. All the rights and
benefits granted by Debtor to the Collateral

                                       10
<PAGE>


         Agent and Lenders in the Loan Documents and other agreements and
documents delivered in connection therewith are deemed granted to both the
Collateral Agent and Lenders.

         12.5     Captions. The captions of Paragraphs, Articles and Sections in
this Agreement have been included for convenience of reference only, and shall
not define or limit the provisions hereof and have no legal or other
significance whatsoever.

         12.6     Governing Law; Venue; Severability. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without regard to conflicts of laws principles that would result in the
application of the substantive laws of another jurisdiction, except to the
extent that the perfection of the security interest granted hereby in respect of
any item of Collateral may be governed by the law of another jurisdiction. Any
legal action or proceeding against Debtor with respect to this Agreement may be
brought in the courts in the State of New York or of the United States for the
Southern District of New York, and, by execution and delivery of this Agreement,
Debtor hereby irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts. Debtor
hereby irrevocably waives any objection which they may now or hereafter have to
the laying of venue of any of the aforesaid actions or proceedings arising out
of or in connection with this Agreement brought in the aforesaid courts and
hereby further irrevocably waives and agrees not to plead or claim in any such
court that any such action or proceeding brought in any such court has been
brought in an inconvenient forum. If any provision of this Agreement, or the
application thereof to any person or circumstance, is held invalid, such
invalidity shall not affect any other provisions which can be given effect
without the invalid provision or application, and to this end the provisions
hereof shall be severable and the remaining, valid provisions shall remain of
full force and effect.

         12.7     Entire Agreement. This Agreement contains the entire agreement
of the parties and supersedes all other agreements and understandings, oral or
written, with respect to the matters contained herein.

         12.8 Counterparts/Execution. This Agreement may be executed in any
number of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument. This
Agreement may be executed by facsimile signature and delivered by facsimile
transmission.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]


                                       11
<PAGE>


         IN WITNESS WHEREOF, the undersigned have executed and delivered this
Security Agreement, as of the date first written above.

"DEBTOR"                                             "THE COLLATERAL AGENT"
DYNECO CORPORATION                                   BARBARA R. MITTMAN
a Minnesota corporation


By: /s/ Dr. Thomas C. Edwards                        /s/ Barbara R. Mittman
    -------------------------                        ----------------------
Its: President


                             APPROVED BY "LENDERS":



/s/ Konrad Ackermann                          /s/ Jeffrey Rubin
--------------------                          -----------------
ALPHA CAPITAL AKTIENGESELLSCHAFT              JM INVESTORS, LLC










        THIS SECURITY AGREEMENT MAY BE SIGNED BY FACSIMILE SIGNATURE AND
                 DELIVERED BY CONFIRMED FACSIMILE TRANSMISSION.


                                       12
<PAGE>


                        SCHEDULE A TO SECURITY AGREEMENT




------------------------------------ --------------------------------------
LENDER                               PURCHASE PRICE
------------------------------------ --------------------------------------
------------------------------------ --------------------------------------
ALPHA CAPITAL AKTIENGESELLSCHAFT     $200,000.00
Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
Fax: 011-42-32323196
------------------------------------ --------------------------------------
------------------------------------ --------------------------------------
JM INVESTORS                         $100,000.00
152 East 9th   Street
Lakewood, NJ 08701
Fax: (732) 905-9049
------------------------------------ --------------------------------------
------------------------------------ --------------------------------------
TOTAL                                $300,000.00
------------------------------------ --------------------------------------

                                       13
<PAGE>


              SCHEDULE B TO SECURITY AGREEMENT DATED MARCH 2, 2005

                               SECURITY INTERESTS


------------------ ------------- ------------------ ---------------------------
IDENTIFICATION No. JURISDICTION     DATE               COMMENTS
------------------ ------------- ------------------ ---------------------------
------------------ ------------- ------------------ ---------------------------

------------------ ------------- ------------------ ---------------------------
------------------ ------------- ------------------ ---------------------------
200000205212       FL Secretary  September 6, 2000  Equipment Financing;
                   of State                         Termination Statement
                                                    Requested from Lender
------------------ ------------- ------------------ ---------------------------
------------------ ------------- ------------------ ---------------------------
200408503376       FL Secretary  December 10, 2004  Refinancing of Equipment
                   of State                         Subject to No. 200000205212
------------------ ------------- ------------------ ---------------------------

                                       14
<PAGE>


                                     ANNEX I

                                       TO

                               SECURITY AGREEMENT

                                PLEDGE AMENDMENT


         This Pledge Amendment, dated _________ __ 200_, is delivered pursuant
to Section 4.3 of the Security Agreement referred to below. The undersigned
hereby agrees that this Pledge Amendment may be attached to the Security
Agreement, dated March ___, 2005, as it may heretofore have been or hereafter
may be amended, restated, supplemented or otherwise modified from time to time
and that the shares listed on this Pledge Amendment shall be hereby pledged and
assigned to Collateral Agent and become part of the Collateral referred to in
such Security Agreement and shall secure all of the Obligations referred to in
such Security Agreement.


--------------------------- -------------- --------------- ----------------
                                Number                       Certificate
Name of Issuer                 of Shares      Class           Number(s)
--------------------------- -------------- --------------- ----------------
--------------------------- -------------- --------------- ----------------

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

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

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

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


                                    DYNECO CORPORATION


                                    By: ______________________________________


                                       15