|     | **Exhibit 10.9**               |
|----------|--------------------------------|
| **HSBC** | **GENERAL SECURITY AGREEMENT** |

 
|   |   | Date: | 3/11/04 |
|--------|--------|-------|---------|

 
| NAME                                          |    | NO. AND STREET                          |            |         |
|-----------------------------------------------|---------|-----------------------------------------|-----------------|--------------|
| Mid-Coast Management, Inc.                    |    | 600 Bayview Ave                         |            |         |
| CITY, VILLAGE OR TOWN                         | COUNTY  |                                    | STATE           |         |
| Inwood                                        |    |                                    | NY              | (Debtor) and |
| HSBC BANK USA

                          |    | LENDING OFFICE, DEPARTMENT, OR DIVISION |            |
| NO. AND STREET                                | CITY    | STATE                                   |            |
| 1 HSBC Center                                 | Buffalo | NY                                      | (Secured Party) |

agree            as follows:

 
| 1. | **Security Interest.**Debtor                        hereby grants to Secured Party a security interest (Security Interest) in                        all assets and property of every description including, without                        limitation: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

(check or initial applicable boxes)

             
|   | x | All assets and property of every description (including,                        without limitation, all Accounts, General Intangibles, Chattel Paper                        (whether tangible or electronic). Instruments, Letter-of-Credit Rights,                        Investment Property, Deposit Accounts, Documents, and Goods (including                        Inventory, Equipment and Fixtures and embedded software, and all accessions                        to any Goods). |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
|   | o | All Accounts (including, without limitation, Health-Care-                        Insurance Receivables, credit-card receivables, licensing fees and                        royalties, and rights to payment for realty sold or leased), General                        Intangibles (including, without limitation, Payment Intangibles, software,                        copyrights, patents, trademarks and tax refunds), Chattel Paper (including,                        without limitation, Electronic Chattel Paper) and Instruments (including                        Promissory Notes) and all interests of Obligor in all Supporting                        Obligations and in all Goods which by sale have resulted in Accounts,                        Instruments, or Chattel Paper. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
|   | o | All Inventory of every description, and all Documents                        relating to such Inventory. |
|--------|---|----------------------------------------------------------------------------------------------------------|

             
|   | o | All Equipment of every description and all Accessions                        thereto. |
|--------|---|---------------------------------------------------------------------------------------|

             
|   | o | All of Obligor’s rights to payment or performance                        under Letter of Credit No. ______, dated ______, in the amount of                        $________, issued by _____________ for the account of                        ____________. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
|   | o | All of the following property                        __________________________. |
|--------|---|----------------------------------------------------------------------------------|

             
| 2. | **Indebtedness Secured.**The                        Security Interest secures payment of any and all indebtedness                        (Indebtedness) or Debtor to Secured Party, whether now existing or                        hereafter incurred, of every kind and character, direct or indirect, and                        whether such Indebtedness is from time to time reduced and thereafter                        increased, or entirely extinguished and thereafter reincurred including                        without limitation: (a) Indebtedness not yet outstanding, but contracted                        for, or with respect to which any other commitment by Secured Party exists;                        (b) all interest provided in any instrument, document, or agreement                        (including this Security Agreement) which accrues on any Indebtedness until                        payment of such Indebtedness in full; (c) any moneys payable as hereinafter                        provided, and (d) any debts owed or to be owed by Debtor to others which                        Secured Party has obtained, or may obtain, by assignment or                        otherwise. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
| 3. | **Representations and Warranties of Debtor.**Debtor represents and warrants,and, so long as this Security                        Agreement is in effect, shall be deemed continuously to represent and                        warrant that: (a) Debtor is the owner of the Collateral free of all                        security interest or other encumbrances, except the Security Interest and                        except as specified in an appropriate schedule hereto; (b) Debtor is                        authorized to enter into this Security Agreement; (c) any and all                        tradenames, division names, assumed names or other names under which Debtor                        transacts any part of its business are specified in an appropriate schedule                        hereto, Debtor’s business address and chief executive office are                        specified above or on an appropriate schedule hereto, and Debtor’s                        records concerning the Collateral are kept at one of the addresses                        specified above; (d) each Account, General Intangible and Chattel Paper                        constituting Collateral is genuine and enforceable in accordance with its                        terms against the party obligated to pay it (Account Debtor), and no                        Account Debtor has any defense, setoff, claim or counterclaim against                        Debtor which can be asserted against Secured Party, whether in any                        proceeding to enforce the Collateral or otherwise; (e) the amounts                        represented from time to time by Debtor to Secured Party as owing by each                        Account Debtor or by all Account Debtors will be and are the correct                        amounts actually and unconditionally owing by such Account Debtor or                        Debtors individually and in the aggregate, except for normal cash discounts                        where applicable, (f) each Instrument and each Document constituting                        Collateral is genuine and in all respects what it purports to be; and (g)                        any Collateral which is a Fixture is affixed to real property at                        Debtor’s address specified above or as specified in an appropriate                        schedule hereto, and such real property is owned by Debtor or by the person                        or persons names in such schedule and is encumbered only by the mortgage or                        mortgages listed on such scheduled. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 
| 4. | **Covenants of Debtor.**So long as                        this Security Agreement is in effect, Debtor: |
|----|---------------------------------------------------------------------------------------------------------|

(a) will defend the Collateral against the claims and demands of all            other parties, including, without limitation, defenses, setoffs, claims and            counterclaims asserted by any Account Debtor against Debtor or Secured Party, except,            as to Inventory, purchasers and lessees in the ordinary course of Debtor’s            business; will keep the collateral free from all security interests or other            encumbrances except the Security Interest and except as specified in an appropriate            schedule hereto; and will not sell, transfer, lease, assign, deliver or otherwise            dispose of any Collateral or any interest therein without the prior written consent of            Secured Party, except that, until the occurrence of an event of default as specified in            paragraph 10 hereof, Debtor may sell or lease Inventory in the ordinary course of            Debtor’s business, (b) will furnish to secured Party financial statements in such            form and at such intervals as Secured Party shall request; will keep, in accordance            with generally accepted accounting principles consistently applied, accurate and            complete books and records, including, without limitation, records concerning the            Collateral; at Secured Party’s request, will mark any and all such books and            records to indicate the Security Interest, will permit Secured Party or its agents to            inspect the Collateral and to audit and make extracts from or copies of such books and            records and any of Debtor’s ledgers, reports, correspondence or other books and            records; and will duly account to Secured Party’s satisfaction, at such time or            times as Secured Party may require, for any of the Collateral, (c) will deliver to            Secured Party upon demand, all Documents and all Chattel Paper (duly indorsed to            Secured Party) constituting, representing or relating to the Collateral or any part            thereof, and any schedules, invoices, shipping documents, delivery receipts, purchase            orders, contracts or other documents representing or relating to the Collateral or any            part thereof, (d) will notify Secured Party promptly in writing of any change in            Debtor’s business address or chief executive office, any change in the address at            which records concerning the collateral are kept and any change in Debtor’s name,            identity or corporate or other structure; (e) will not, without Secured Party’s            written consent, make or agree to make any alteration, modification or cancellation of            or substitution for, or credits,adjustments or allowances on, Accounts, general            Intangibles or Chattel Paper constituting Collateral; will furnish to Secured Party, on            request, all credit and other information respecting the financial condition of any            Account Debtor, and will notify Secured Party promptly of any default by any Account            Debtor in payment or other performance of obligations with respect to any Collateral,            (f) will keep the Collateral in good condition and repair; and will not use the            Collateral in violation of any provisions of this Security Agreement, of any applicable            statute, regulation or ordinance or of any policy insuring the Collateral; (g) will pay            all taxes,

             
| HSBC Bank USA | L 209 SF (Rev. 3/98) |
|---------------|----------------------|

Page            1

 

 

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assessments and other charges of every nature which may be imposed,            levied or assessed against Debtor or any of Debtor’s assets prior to the date of            attachment of any penalties or liens with respect thereto (other than liens attaching            prior to payment become due, if payment is made when due) provided, however, Debtor            shall not be required to pay any such tax, assessment or other charge so long as its            validity is being contested in good faith by appropriate proceedings diligently            conducted, (b) will insure the Collateral against risks, in coverage, form and amount,            and by insurer, satisfactory to Secured Party, and, at Secured Party’s request,            will cause each policy to by payable to Secured Party as a named insured or loss payee,            as its interest may appear, and deliver each policy or certificate of insurance to            Secured Party, (i) will prevent the Collateral or any part thereof from being or            becoming an accession to other goods not covered by this Security Agreement; (j) in            connection herewith, will execute and deliver to Secured Party such financing            statements, assignments and other documents and do such other things relating to the            Collateral and the Security Interest as Secured Party may requires, and pay all costs            of title searches and filing financing statements, assignments and other documents in            all public offices requested by Secured Party; and will not, without the prior written            consent of Secured Party, file or authorize or permit to be filed in any public office            any financing statement naming Debtor as debtor and not naming Secured Party as secured            party; (k) will not place the Collateral in any warehouse which may issue a negotiable            document with respect thereto; (l) if Secured Party in its sole discretion and at any            time or from time to time determines that the liquidation value of the Collateral has            become inadequate, will immediately on demand: (i) deliver to Secured Party additional            collateral of a kind and value satisfactory to Secured Party, or (ii) make payments of            Indebtedness, sufficient to cause the relationship of the liquidation value of            Collateral to indebtedness (including Indebtedness for which a commitment to lend            exists) to become satisfactory to Secured Party; (m) if any of the Collateral            constitutes Letter-of-Credit Rights, Debtor shall at the Secured Party’s request,            enter into an assignment in favor of Secured Party of the proceeds of the letters of            credit involved, on terms satisfactory to Secured Party, and cause the issuer of each            such letter of credit now existing or hereafter issued to consent to such assignment;            (n) If any of the Collateral constitutes Electronic Chattel Paper, Debtor shall, at            Secured Party’s request, grant control of such Electronic Chattel Paper to            Secured Party.

             
| 5. | **Verification of Collateral.**Secured Party shall have the right to verify all or any                        Collateral in any manner and through any medium Secured Party may consider                        appropriate, and Debtor agrees to furnish all assistance and information                        and perform any acts which Secured Party may require in connection                        therewith and to pay all of Secured Party’s costs                        therefor. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
| 6. | **Notification and Payments.**Before or after the occurrence of an event of default,                        Secured Party may notify all or any Account Debtors of the Security                        Interest and may also direct such Account Debtors to make all payments on                        Collateral to Secured Party. All payments on and from Collateral received                        by Secured Party directly or from Debtor shall be applied to the                        Indebtedness in such order and manner and at such time as Secured Party                        shall, in its sole discretion, determine. Secured Party may demand of                        Debtor in writing before or after notification to Account Debtors and                        without waiving in any manner the Security Interest, that any payments on                        and from the Collateral received by Debtor: (a) shall be held by Debtor in                        trust for Secured Party in the same medium in which received; (b) shall not                        be commingled with any assets of Debtor, and (c) shall be delivered to                        Secured Party in the form received, properly indorsed to permit collection                        not later than the next business day following the day of their receipt,                        and Debtor shall comply with such demand. Debtor shall also promptly notify                        Secured Party of the return to or repossession by Debtor of Goods                        underlying any Collateral, and Debtor shall hold the same in trust for                        Secured Party and shall dispose of the same as Secured Party                        directs. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
| 7. | **Registered Holder of Collateral.**If any Collateral consists of investment securities, Debtor                        authorizes Secured Party to transfer the same or any part thereof into its                        own name or that of its nominee so that Secured Party or its nominee may                        appear of record as the sole owner thereof, provided, that so long as no                        event of default has occurred, Secured Party shall deliver promptly to                        Debtor all notices, statements or other communications received by it or                        its nominee as such registered owner, and upon demand and receipt of                        payment of necessary expenses thereof, shall give to Debtor or its designee                        a proxy or proxies to vote and take all action with respect to such                        securities. After the occurrence of any event of default, Debtor waives all                        rights to be advised of or to receive any notices, statements or                        communications received by Secured Party or its nominee as such record                        owner, and agrees that no proxy or proxies given by Secured Party to Debtor                        or its designee as aforesaid shall thereafter be effective. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
| 8. | **Income from and Interest on Collateral Consisting of                        Instruments.** |
|----|----------------------------------------------------------------------------------------------|

             
|   | (a) | Until the occurrence of any event of default, Debtor                        reserves the right to receive all income from or interest on the Collateral                        consisting of Instruments, and if Secured Party receives any such income or                        interest prior to such event of default, Secured Party shall pay the same                        promptly to Debtor. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Upon the occurrence of an event of default, Debtor will not                        demand or receive any income from or interest on such Collateral, and if                        Debtor receives any such income or interest without any demand by it, same                        shall be held by Debtor in trust for Secured Party in the same medium in                        which received, shall not be commingled with any assets of Debtor and shall                        be delivered to Secured Party in the form received, properly indorsed to                        permit collection, not later than the next business day following the day                        of its receipt. Secured Party may apply the net cash receipts from such                        income or interest to payment of any of the Indebtedness provided that                        Secured party shall account for and pay over to Debtor any                        such income or interest remaining after payment in full of the                        Indebtedness. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
| 9. | **Increases, Profits, Payments or                        Distributions.** |
|----|---------------------------------------------------------------------------|

             
|   | (a) | Whether or not an event of default has occurred, Debtor                        authorizes Secured Party: (i) to receive any increase in or profits on the                        Collateral (including, without limitation, any stock issued as a result of                        any stock split or dividend, any capital distributions and the like), and                        to hold the same as part of the Collateral; and (ii) to receive any payment                        or distribution on the Collateral upon redemption by, or dissolution and                        liquidation of, the issuer, to surrender such Collateral or any part                        thereof in exchange therefore, and to hold the net cash receipts from any                        such payment or distribution as part of the Collateral. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
|   | (b) | If Debtor receives any such increase, profits, payments or                        distributions, Debtor will receive and deliver same promptly to Secured                        Party on the same terms and conditions set forth in Paragraph 8(b) hereof                        respecting income or interest, to be held by Secured Party as part of the                        Collateral. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
| 10. | **Events of Default.** |
|-----|------------------------|

             
|   | (a) | Any of the following events or conditions shall constitute                        an event of default hereunder: (i) nonpayment when due, whether by                        acceleration or otherwise, of principal or interest on any indebtedness, or                        default by Debtor in the performance of any obligation, term or condition                        of this Security Agreement or any other agreement between Debtor and                        Secured party, (ii) death or judicial declaration of incompetence of                        Debtor, if an individual; (iii) the filing by or against Debtor of a                        request or petition for liquidation, reorganization, arrangement,                        adjustment of debts, adjudication as a bankrupt, relief as a debtor or                        other relief under the bankruptcy, insolvency or similar laws of the United                        States or any state or territory thereof or any foreign jurisdiction, now                        or hereafter in effect; (iv) the making of any general assignment by Debtor                        for the benefit of creditors, the appointment of a receiver or trustee for                        Debtor or for any assets of Debtor, including, without limitation, the                        appointment of or taking possession by a “custodian” as defined                        in the federal Bankruptcy Code; the making of any, or sending notice of any                        intended, bulk sale; or the institution by or against Debtor of any other                        type of insolvency proceeding (under the federal Bankruptcy Code or                        otherwise) or of any formal or informal proceeding for the dissolution or                        liquidation of, settlement of claims against or winding up of affairs of,                        Debtor, (v) the sale, assignment, transfer or delivery of all or                        substantially all of the assets of Debtor, the cessation by Debtor as a                        going business concern; the entry of judgment against Debtor, other than a                        judgment for which Debtor is fully insured, if ten days thereafter such                        judgment is not satisfied, vacated, bonded or stayed pending appeal; or if                        Debtor is generally not paying Debtor’s debts as such debts become                        due; (vi) the occurrence of any event described in paragraph 10(a)(ii),                        (iii) or (v) hereof with respect to any general partner of Debtor, if                        Debtor is a partnership (vii) if any certificate, statement representation,                        warranty or audit heretofore or hereafter furnished by or on behalf of                        Debtor or any Third Party, pursuant to or in connection with this Security                        Agreement, or otherwise (including, without limitation, representations and                        warranties contained herein), or as an inducement to Secured Party to                        extend any credit to or to enter into this or any other agreement with                        Debtor, proves to have been false in any material respect at the time as of                        which the facts therein set forth were stated or certified, or to have                        omitted any substantial contingent or unliquidated liability or claim                        against Debtor or any such Third Party; or, if upon the date of execution                        of this Security Agreement, there shall have been any materially adverse                        change in any of the facts disclosed by any such certificate, statement,                        representation, warranty or audit, which change shall not have been                        disclosed in writing to Secured Party at or prior to the time of such                        execution; (viii) nonpayment by Debtor when due of any indebtedness for                        borrowed money owing to any Third Party, or the occurrence of any event                        which could result in acceleration of payment of any such indebtedness;                        (ix) the reorganization, merger or consolidation of Debtor (or the making                        of any agreement therefore) without the prior written consent of Secured                        Party; (x) debtor’s failure to be Millennium Compliant (pending full                        implementation of Debtor’s plan to become Millennium Compliant,                        Debtor will not be considered in default under this sub-paragraph until                        such time as any of Debtor’s Systems begin to malfunction as a result                        of the coming or arrival of the year 2000); or (xi) if the Secured Party                        determines, in its sole discretion, that Debtor’s plan to become                        Millennium Compliant and/or the implementation thereof are insufficient to                        ensure that Debtor will be Millennium Compliant. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Secured Party, at its sole election, may declare all or any                        part of any Indebtedness not payable on demand to be immediately due and                        payable without demand or notice of any kind upon the happening of any                        event of default (other than an event of default under either paragraph                        10(a)(iii) or (iv) hereof), or if Secured Party in |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
| HSBC Bank USA | L 209 SF (Rev. 3/98) |
|---------------|----------------------|

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good faith believes that the prospect of payment of all or any part of            the Indebtedness or performance of Debtor’s obligations under this Security            Agreement or any other agreement now or hereafter in effect between Debtor and Secured            Party is impaired. All or any part of any Indebtedness not payable on demand shall be            immediately due and payable without demand or notice of any kind upon the happening of            one or more events of default under paragraph 10(a)(iii) or (iv) hereof. The provisions            of this paragraph are not intended in any way to affect any rights of Secured Party            with respect to any Indebtedness which may now or hereafter be payable on            demand.
|   | (c) | Secured Party’s rights and remedies with respect to                        the Collateral shall be those of a Secured Party under the Uniform                        Commercial Code and under any other applicable law, as the same may from                        time to time be in effect, in addition to those rights granted herein and                        in any other agreement now or hereafter in effect between Debtor and                        Secured Party. Upon the existence or occurrence of an event of default,                        Secured Party may require Debtor to assemble the Collateral and make it                        available to Secured Party at a place or places designated by Secured                        Party, and Secured Party may use and operate the Collateral. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (d) | Without in any way requiring notice to be given in the                        following time and manner Debtor agrees that any notice by Secured Party of                        sale, disposition or other intended action hereunder or in connection                        herewith whether required by the Uniform Commercial Code or otherwise,                        shall constitute reasonable notice to Debtor if such notice is mailed by                        regular or certified mail, postage prepaid, at least five (5) days prior to                        such action, to either of Debtor’s addresses specified above or to                        any other address which Debtor has specified in writing to Secured Party as                        the address top which notices hereunder shall be given to                        Debtor. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (e) | Debtor agrees to pay on demand all costs and expenses                        incurred by Secured Party in enforcing this Security Agreement, in                        realizing upon or protection any Collateral and in enforcing and collecting                        any Indebtedness or any guaranty thereof, including, without limitation, if                        Secured Party retains counsel for advice, suit, appeal, insolvency or other                        proceedings under the federal Bankruptcy Code or otherwise, or for any of                        the above purposes, the actual attorney’s fees incurred by Secured                        Party. Payment of all sums hereunder is secured by the                        Collateral. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             
| 11. | **Miscellaneous.** |
|-----|--------------------|

             
|   | (a) | Debtor hereby authorizes Secured Party, at Debtor’s                        expense, to file such financing statement or statements relating to the                        Collateral without Debtor’s signature thereon as Secured Party at its                        option may deem appropriate, and appoints Secured Party as Debtor’s                        attorney-in-fact (without requiring Secured Party) to execute any such                        financing statement or statements in Debtor’s name and to perform all                        other acts which Secured Party deems appropriate to perfect and continue                        the Security Interest and to protect, preserve and realize upon the                        Collateral. This power of attorney shall not be affected by the subsequent                        disability or incompetence of Debtor. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b) | Secured Party may demand, collect and sure on any of the                        Accounts, Chattel Paper, Instruments and General Intangibles (in either                        Debtor’s or Secured Party’s name at the latter’s option);                        may enforce, compromise, settle or discharge such Collateral without                        discharging the Indebtedness or any part thereof; and may indorse                        Debtor’s name on any and all checks, commercial paper, and any other                        Instruments pertaining to or constituting Collateral. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (c) | (i) As further security for payment of the Indebtedness;                        Debtor hereby grants to Secured Party a Security Interest in and lien on                        any and all property of Debtor which is or may hereafter be in the                        possession or control of Secured Party in any capacity of any Third Party                        acting on its behalf, including, without limitation, all deposit and other                        accounts and all moneys owed or to be owed by Secured Party to Debtor and                        with respect to all of such property, Secured Party shall have the same                        rights hereunder as it has with respect to the Collateral; (ii) without                        limiting any other right of Secured Party, whenever Secured Party has the                        right to declare any Indebtedness to be immediately due and payable                        (whether or not it has so declared), Secured Party at its sole election may                        set off against the Indebtedness any and all moneys then or thereafter owed                        to Debtor by Secured Party in any capacity whether or not the Indebtedness                        or the obligation to pay such moneys owed by Secured Party is then due, and                        Secured Party shall be deemed to have exercise such right of set off                        immediately at the time of such election even though any charge therefor is                        made or entered on Secured Party’s records subsequent                        thereto. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (d) | Upon Debtor’s failure to perform any of its duties                        hereunder, Secured Party may, but shall not be obligated to, perform any or                        all such duties, including, without limitation, payment of taxes,                        assessments, insurance and other charges and expenses as herein provided,                        and Debtor shall pay an amount equal to the cost thereof to Secured Party                        on demand by Secured Party. Payment of all moneys hereunder shall be                        secured by the Collateral. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (e) | Unless any instrument, document, or agreement evidencing any                        Indebtedness expressly provides a rate for the accrual of Interest after                        such Indebtedness becomes due, whether by reason of default or otherwise                        and until such Indebtedness is paid in full, shall be the rate provided in                        such instrument, document, or agreement which is in effect immediately                        prior to such indebtedness becoming due. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (f) | No course of dealing between Debtor and Secured Party and no                        delay or omission by Secured Party in exercising any right or remedy                        hereunder or with respect to any Indebtedness shall operate as a waiver                        thereof or of any other right or remedy, and no single or partial exercise                        thereof shall preclude any other or further exercise thereof or the                        exercise of any other right or remedy. Secured Party may remedy and default                        by Debtor hereunder or with respect to any Indebtedness in any reasonable                        manner without waiving the default remedied and without waiving any other                        prior or subsequent default by Debtor. All rights and remedies of Secured                        Party hereunder are cumulative. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 
|   | (g) | Secured Party shall have no obligation to take, and Debtor                        shall have the sole responsibility for taking any and all steps to preserve                        rights against any and all prior parties to any Instrument or Chattel Paper                        constituting Collateral whether or not in Secured Party’s possession.                        Secured Party shall not be responsible to Debtor for loss or damage                        resulting from Secured Party’s failure to enforce or collect any such                        Collateral or to collect any moneys due or to become due thereunder. Debtor                        waives protest of any Instrument constituting Collateral at any time held                        by Secured Party on which Debtor is in any way liable and waives notice of                        any other action taken by Secured Party. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (h) | Debtor authorizes Secured Party, without notice or demand                        and without affecting Debtor’s obligations hereunder, from time to                        time: (i) to exchange, enforce or release any collateral or any part                        thereof (other than the Collateral) taken from any party for payment of the                        Indebtedness or any part thereof; (ii) to release, substitute or modify any                        obligation of any indorser, guarantor or other party in any way obligated                        to pay the Indebtedness or any part thereof, or any party who has given any                        security, mortgage or other interest in any other Collateral as security                        for the payment of the Indebtedness or any part thereof, or any party who                        has given any security, mortgage or other interest in any other Collateral                        as security for the payment of the Indebtedness or any part thereof, (iii)                        upon the occurrence of any event of default as hereinabove provided, to                        direct the order or manner of disposition of the Collateral and any and all                        other Collateral and the enforcement of any and all indorsements,                        guaranties and other obligations relating to the Indebtedness or any part                        thereof as Secured Party, in its sole discretion, may determine; and (iv)                        to determine how, when and what application of payments and credits, if                        any, shall be made on the Indebtedness or any part thereof. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (i) | The rights and benefits of Secured Party hereunder shall, if                        Secured Party hereunder shall, if Secured Party so directs, inure to any                        party acquiring any interest in the Indebtedness or any part                        thereof. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (j) | Secured Party and Debtor as used herein shall include the                        heirs, executor’s or administrators, or successors or assigns, of                        those parties. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (k) | If more than one Debtor executes this Security Agreement,                        the term “Debtor” shall include each as well as all of them and                        their obligations, warranties and representations hereunder shall be joint                        and several. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (l) | No modification, recission, waiver, release or amendment of                        any provision of this Security Agreement shall be made, except by a written                        agreement subscribed by Debtor and by a duly authorized offer or Secured                        Party. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (m) | This Security Agreement and the transaction evidenced hereby                        shall be instructed under the laws of New York State, as the same may from                        time to time be in effect. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (n) | All terms, unless otherwise defined in this Security                        Agreement, shall have the definitions set forth in the Uniform Commercial                        Code adopted in New York State, as the same may from time to time be in                        effect. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (o) | Debtor hereby irrevocably appoints Secured Party the                        Debtor’s agent with full power, in the same manner, to the same                        extent and with the same effect as if Debtor were to do the same; to                        receive and collect all mail addressed to Debtor, to direct the place of                        delivery thereof to any location designated by Secured Party; to open such                        mail; to remove all contents therefrom; to retain all contents thereof                        constituting or relating to the Collateral; and to perform all other acts                        which Secured Party deems appropriate to protect, preserve and realize upon                        the Collateral. The agency hereby created is unconditional and shall not                        terminate until all of the Indebtedness is paid in full and until all                        commitments by Secured Party to lend funds to Debtor have expired or been                        terminated. The power of attorney shall not be affected by the subsequent                        disability or incompetence of Debtor. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             

             
| HSBC Bank USA | L 209 SF (Rev. 3/98) |
|---------------|----------------------|

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|   | (p) | This Security Agreement is and is intended to be a                        continuing Security Agreement and shall remain in full force and effect                        until the officer in charge of the Lending Office, Department or Division                        of Secured Party indicated above shall actually receive from Debtor written                        notice of its discontinuance; provided, however, this Security Agreement                        shall remain in full force and effect thereafter until all of the                        Indebtedness outstanding, or contracted or committed for (whether or not                        outstanding), before the receipt of such notice by Secured Party, and any                        extensions or renewals thereof (whether made before or after receipt of                        such notice), together with interest accruing thereon after such notice,                        shall be finally and irrevocably paid in full. If, after receipt of any                        payment of all or any part of the Indebtedness, Secured Party is for any                        reason compelled to surrender such payment to any person or entity, because                        such payment is determined to be void or voidable as a preference,                        impermissible setoff, or a diversion of trust funds, or for any other                        reason, this Security Agreement shall continue in full force                        notwithstanding any contrary action which may have been taken by Secured                        Party in reliance upon such payment, and any such contrary action so taken                        shall be without prejudice to Secured Party’s rights under this                        Security Agreement and shall be deemed to have been conditioned upon such                        payment having become final and irrevocable. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

             

DEBTOR:

             

 
| Mid-Coast Management, Inc. |                |             |
|----------------------------|---------------------|------------------|
| By:                        | /s/ Jesse Dobrinsky |             | By: | /s/ Scott Goodman |
| Title: President           |                | Title: Treasurer |
|                            |                     |                  |  |  |

 

 

**SCHEDULE**

 
| 1.     | Other encumbrances, if any (¶¶ 3a, 4a):                                                       |
|--------|---------------------------------------------------------------------------------------------------------|
|   |                                                                                                    |
| 2.     | Other names under which Debtor transacts business                        (¶3c):                    |
|   |                                                                                                    |
| 3.     | (a) Fixtures affixed to real property (¶3g):                                                       |
|   |                                                                                                    |
|   | (b) Owner of such real property (¶3g):                                                             |
|   |                                                                                                    |
|   | (c) Mortgages on real property (¶3g):                                                              |
|   |                                                                                                    |
| 4.     | Additional schedules describing Collateral, if any, follow                        hereafter (¶ 1). |

 

             
| HSBC Bank USA | L 209 SF (Rev. 3/98) |
|---------------|----------------------|

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