Document:

Exhibit 10.58

                               SECURITY AGREEMENT

         SECURITY AGREEMENT (this  "AGREEMENT"),  dated as of February 13, 2007,
by and among Midnight Holdings Group, Inc., a Delaware corporation  ("COMPANY"),
and the  secured  parties  signatory  hereto  and  their  respective  endorsees,
transferees and assigns (collectively, the "SECURED PARTY").

                              W I T N E S S E T H:

         WHEREAS,  pursuant to a Securities Purchase  Agreement,  dated the date
hereof,  between  Company  and the  Secured  Party (the  "PURCHASE  AGREEMENT"),
Company  has  agreed to issue to the  Secured  Party and the  Secured  Party has
agreed to purchase  from Company  certain of Company's  10% Secured  Convertible
Notes,  due  three  years  from the  date of  issue  (the  "NOTES"),  which  are
convertible  into shares of Company's  Common Stock, par value $.00005 per share
(the "COMMON STOCK"). In connection  therewith,  Company shall issue the Secured
Party  certain  Common Stock  purchase  warrants  dated as of the date hereof to
purchase  the number of shares of Common  Stock  indicated  below  each  Secured
Party's name on the Purchase Agreement (the "WARRANTS"); and

         WHEREAS,  in order to induce the Secured  Party to purchase  the Notes,
Company has agreed to execute and  deliver to the Secured  Party this  Agreement
for the  benefit  of the  Secured  Party  and to  grant  to it a first  priority
security  interest in certain  property of Company to secure the prompt payment,
performance  and  discharge  in full of all of Company's  obligations  under the
Notes and exercise and  discharge  in full of  Company's  obligations  under the
Warrants.

         NOW, THEREFORE, in consideration of the agreements herein contained and
for other good and valuable consideration,  the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

         1. CERTAIN DEFINITIONS.  As used in this Agreement, the following terms
shall  have  the  meanings  set  forth in this  Section  1.  Terms  used but not
otherwise  defined in this  Agreement  that are  defined in Article 9 of the UCC
(such as  "GENERAL  INTANGIBLES"  and  "PROCEEDS")  shall  have  the  respective
meanings given such terms in Article 9 of the UCC.

            (a) "COLLATERAL"  means the collateral in which the Secured Party is
granted a security  interest  by this  Agreement  and which  shall  include  the
following,  whether presently owned or existing or hereafter  acquired or coming
into existence,  and all additions and accessions  thereto and all substitutions
and  replacements  thereof,  and all  proceeds,  products and accounts  thereof,
including,  without  limitation,  all proceeds  from the sale or transfer of the
Collateral  and of  insurance  covering  the  same  and of any  tort  claims  in
connection therewith:

                        (i)  All  Goods  of  the  Company,  including,   without
            limitations,  all machinery,  equipment,  computers, motor vehicles,
            trucks,  tanks, boats,  ships,  appliances,  furniture,  special and
            general tools, fixtures,  test and quality control devices and other
            equipment of every kind and nature and wherever  situated,  together
            with all documents of title and documents representing the same, all
            additions and accessions thereto,  replacements  therefor, all parts
            therefor, and all

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            substitutes  for any of the  foregoing  and all other items used and
            useful  in  connection   with  the  Company's   businesses  and  all
            improvements thereto (collectively, the "EQUIPMENT"); and

                        (ii) All Inventory of the Company; and

                        (iii) All of the Company's  contract  rights and general
            intangibles,   including,   without   limitation,   all  partnership
            interests,  stock or other  securities,  licenses,  distribution and
            other agreements,  computer  software  development  rights,  leases,
            franchises,  customer lists, quality control procedures,  grants and
            rights,  goodwill,  trademarks,  service marks, trade styles,  trade
            names, patents, patent applications,  copyrights,  deposit accounts,
            and income tax refunds  (collectively,  the "GENERAL  INTANGIBLES");
            and

                        (iv)  All  Receivables  of  the  Company  including  all
            insurance  proceeds,   and  rights  to  refunds  or  indemnification
            whatsoever  owing,  together with all instruments,  all documents of
            title  representing  any  of  the  foregoing,   all  rights  in  any
            merchandising, goods, equipment, motor vehicles and trucks which any
            of the  same may  represent,  and all  right,  title,  security  and
            guaranties with respect to each  Receivable,  including any right of
            stoppage in transit; and

                        (v)  All of the  Company's  documents,  instruments  and
            chattel paper, files,  records,  books of account,  business papers,
            computer  programs  and  the  products  and  proceeds  of all of the
            foregoing Collateral set forth in clauses (i)-(iv) above.

            (b) "COMPANY" shall  mean,  collectively,  Company  and  all  of the
     subsidiaries  of  Company,  a list of which is  contained  in  SCHEDULE  A,
     attached hereto.

            (c) "OBLIGATIONS" means all of the Company's  obligations under this
Agreement  and the  Notes,  in each case,  whether  now or  hereafter  existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated
or  unliquidated,  whether or not jointly owed with  others,  and whether or not
from time to time  decreased or  extinguished  and later  decreased,  created or
incurred,  and all or any portion of such  obligations or  liabilities  that are
paid,  to the  extent all or any part of such  payment  is avoided or  recovered
directly  or  indirectly  from the  Secured  Party as a  preference,  fraudulent
transfer  or  otherwise  as  such  obligations  may  be  amended,  supplemented,
converted, extended or modified from time to time.

            (d) "UCC" means the Uniform  Commercial Code, as currently in effect
in the State of New York.

       2. GRANT OF SECURITY INTEREST.  As an inducement for the Secured Party to
purchase the Notes and to secure the complete  and timely  payment,  performance
and  discharge  in  full,  as the case may be,  of all of the  Obligations,  the
Company  hereby,   unconditionally   and   irrevocably,   pledges,   grants  and
hypothecates  to the  Secured  Party,  a  continuing  security  interest  in,  a
continuing  first lien upon, an unqualified  right to possession and disposition
of and a right of set-off against,  in each case to the fullest extent permitted
by law, all of the Company's  right,  title and interest of whatsoever  kind and
nature in and to the Collateral (the "SECURITY INTEREST").

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       3. REPRESENTATIONS,  WARRANTIES, COVENANTS AND AGREEMENTS OF THE COMPANY.
The Company  represents  and warrants  to, and  covenants  and agrees with,  the
Secured Party as follows:

            (a) The Company has the requisite  corporate  power and authority to
enter into this Agreement and otherwise to carry out its obligations thereunder.
The execution, delivery and performance by the Company of this Agreement and the
filings  contemplated  therein have been duly authorized by all necessary action
on the part of the  Company and no further  action is  required by the  Company.
This Agreement  constitutes a legal, valid and binding obligation of the Company
enforceable  in  accordance  with its  terms,  except as  enforceability  may be
limited by bankruptcy,  insolvency,  reorganization,  moratorium or similar laws
affecting the enforcement of creditor's rights generally.

            (b) The  Company  represents  and  warrants  that it has no place of
business or offices where its  respective  books of account and records are kept
(other than  temporarily  at the offices of its  attorneys  or  accountants)  or
places where  Collateral is stored or located,  except as has been  disclosed to
the Secured Party;

            (c) Except as set forth on  SCHEDULE  3(C),  the Company is the sole
owner or lessor (as the case may be) of the Collateral (except for non-exclusive
licenses  granted by the Company in the ordinary  course of business),  free and
clear of any liens, security interests,  encumbrances,  rights or claims, and is
fully authorized to grant the Security Interest in and to pledge the Collateral.
There is not on file in any  governmental  or  regulatory  authority,  agency or
recording office an effective financing statement,  security agreement,  license
or  transfer or any notice of any of the  foregoing  (other than those that have
been filed in favor of the Secured Party pursuant to this Agreement) covering or
affecting any of the  Collateral.  So long as this Agreement shall be in effect,
the Company  shall not execute and shall not  knowingly  permit to be on file in
any such  office or agency any such  financing  statement  or other  document or
instrument (except to the extent filed or recorded in favor of the Secured Party
pursuant to the terms of this Agreement).

            (d)  No  part  of  the   Collateral   has  been  judged  invalid  or
unenforceable.  No written claim has been  received  that any  Collateral or the
Company's use of any  Collateral  violates the rights of any third party.  There
has been no adverse  decision to the Company's  claim of ownership  rights in or
exclusive  rights to use the Collateral in any  jurisdiction or to the Company's
right to keep and maintain such  Collateral in full force and effect,  and there
is no proceeding  involving said rights pending or, to the best knowledge of the
Company,   threatened  before  any  court,  judicial  body,   administrative  or
regulatory agency, arbitrator or other governmental authority.

            (e) The Company shall at all times maintain its books of account and
records  relating to the  Collateral at its principal  place of business and may
not relocate such books of account and records or tangible  Collateral unless it
delivers  to the  Secured  Party at least 30 days prior to such  relocation  (i)
written notice of such  relocation  and the new location  thereof (which must be
within  the  United  States)  and  (ii)  evidence  that  appropriate   financing
statements and other necessary  documents have been filed and recorded and other
steps have been taken to

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<PAGE>

perfect the  Security  Interest to create in favor of the Secured  Party  valid,
perfected and continuing first priority liens in the Collateral.

            (f) This  Agreement  creates in favor of the  Secured  Party a valid
security interest in the Collateral  securing the payment and performance of the
Obligations and, upon making the filings described in the immediately  following
sentence,  a perfected  first  priority  security  interest in such  Collateral.
Except for the filing of  financing  statements  on Form-1  under the UCC in the
proper jurisdiction, no authorization or approval of or filing with or notice to
any  governmental  authority or regulatory  body is required  either (i) for the
grant by the Company of, or the  effectiveness of, the Security Interest granted
hereby or for the execution,  delivery and  performance of this Agreement by the
Company or (ii) for the  perfection  of or exercise by the Secured  Party of its
rights and remedies hereunder.

            (g) On the date of  execution  of this  Agreement,  the Company will
deliver to the Secured Party one or more  executed UCC  financing  statements on
Form-1  with  respect  to  the  Security  Interest  for  filing  in  the  proper
jurisdiction,  attached  hereto  and  in  such  other  jurisdictions  as  may be
requested by the Secured Party.

            (h) The execution,  delivery and  performance of this Agreement does
not conflict with or cause a breach or default, or an event that with or without
the passage of time or notice,  shall constitute a breach or default,  under any
agreement  to which the Company is a party or by which the Company is bound.  No
consent (including,  without limitation,  from stock holders or creditors of the
Company) is required  for the Company to enter into and perform its  obligations
hereunder.

            (i) The Company  shall at all times  maintain the liens and Security
Interest  provided  for  hereunder  as valid and  perfected  liens and  security
interests in the  Collateral in favor of the Secured Party until this  Agreement
and the Security Interest  hereunder shall terminate pursuant to Section 11. The
Company  hereby  agrees to defend  the same  against  any and all  persons.  The
Company  shall  safeguard  and  protect  all  Collateral  for the account of the
Secured Party.  At the request of the Secured  Party,  the Company will sign and
deliver  to the  Secured  Party  at any  time or from  time to time  one or more
financing  statements  pursuant to the UCC (or any other applicable  statute) in
form  reasonably  satisfactory  to the  Secured  Party  and will pay the cost of
filing the same in all public  offices  wherever  filing is, or is deemed by the
Secured Party to be, necessary or desirable to effect the rights and obligations
provided for herein.  Without  limiting the  generality  of the  foregoing,  the
Company shall pay all fees,  taxes and other  amounts  necessary to maintain the
Collateral and the Security Interest hereunder, and the Company shall obtain and
furnish to the  Secured  Party from time to time,  upon  demand,  such  releases
and/or  subordinations of claims and liens which may be required to maintain the
priority of the Security Interest hereunder.

            (j) The Company will not transfer,  pledge,  hypothecate,  encumber,
license  (except  for  non-exclusive  licenses  granted  by the  Company  in the
ordinary course of business), sell or otherwise dispose of any of the Collateral
without the prior written consent of the Secured Party.

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<PAGE>

            (k) The Company shall keep and preserve its Equipment, Inventory and
other  tangible  Collateral  in good  condition,  repair and order and shall not
operate or locate any such  Collateral  (or cause to be  operated or located) in
any area excluded from insurance coverage.

            (l) The Company shall,  within ten (10) days of obtaining  knowledge
thereof,  advise the  Secured  Party  promptly,  in  sufficient  detail,  of any
substantial  change in the Collateral,  and of the occurrence of any event which
would have a material  adverse  effect on the value of the  Collateral or on the
Secured Party's security interest therein.

            (m) The Company  shall  promptly  execute and deliver to the Secured
Party such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take
such further  action as the Secured  Party may from time to time request and may
in its sole  discretion  deem  necessary  to  perfect,  protect or  enforce  its
security interest in the Collateral including, without limitation, the execution
and delivery of a separate  security  agreement  with  respect to the  Company's
intellectual property  ("INTELLECTUAL PROPERTY SECURITY AGREEMENT") in which the
Secured Party has been granted a security interest hereunder, substantially in a
form  acceptable to the Secured  Party,  which  Intellectual  Property  Security
Agreement,  other than as stated  therein,  shall be subject to all of the terms
and conditions hereof.

            (n)  The   Company   shall   permit  the   Secured   Party  and  its
representatives  and agents to inspect the  Collateral at any time,  and to make
copies of  records  pertaining  to the  Collateral  as may be  requested  by the
Secured Party from time to time.

            (o)  The  Company  will  take  all  steps  reasonably  necessary  to
diligently pursue and seek to preserve,  enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

            (p)  The  Company  shall  promptly   notify  the  Secured  Party  in
sufficient detail upon becoming aware of any attachment,  garnishment, execution
or  other  legal  process  levied  against  any  Collateral  and  of  any  other
information  received by the Company that may materially affect the value of the
Collateral,  the  Security  Interest  or the rights and  remedies of the Secured
Party hereunder.

            (q) All information heretofore,  herein or hereafter supplied to the
Secured  Party by or on behalf of the Company with respect to the  Collateral is
accurate and complete in all material respects as of the date furnished.

            (r) SCHEDULE 3(A) to the Purchase  Agreement  contains a list of all
of the wholly-owned subsidiaries of Company.

       4.   DEFAULTS. The following events shall be "EVENTS OF DEFAULT":

            (a) The  occurrence of an Event of Default (as defined in the Notes)
under the Notes;

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<PAGE>

            (b) Any  representation or warranty of the Company in this Agreement
or in the  Intellectual  Property  Security  Agreement  shall prove to have been
incorrect in any material respect when made;

            (c) The  failure by the  Company  to  observe or perform  any of its
obligations hereunder or in the Intellectual Property Security Agreement for ten
(10) days  after  receipt  by the  Company  of notice of such  failure  from the
Secured Party; and

            (d) Any breach of, or default under, the Warrants.

       5. DUTY TO HOLD IN TRUST. Upon the occurrence of any Event of Default and
at any time  thereafter,  the Company shall,  upon receipt by it of any revenue,
income or other sums subject to the Security Interest,  whether payable pursuant
to the Notes or otherwise,  or of any check,  draft,  note,  trade acceptance or
other instrument  evidencing an obligation to pay any such sum, hold the same in
trust for the Secured  Party and shall  forthwith  endorse and transfer any such
sums or  instruments,  or both,  to the  Secured  Party for  application  to the
satisfaction  of the  Obligations.

       6. RIGHTS AND REMEDIES  UPON  DEFAULT.  Upon  occurrence  of any Event of
Default and at any time  thereafter,  the Secured  Party shall have the right to
exercise all of the remedies  conferred  hereunder and under the Notes,  and the
Secured  Party shall have all the rights and  remedies of a secured  party under
the UCC and/or any other  applicable law (including the Uniform  Commercial Code
of  any  jurisdiction  in  which  any  Collateral  is  then  located).   Without
limitation, the Secured Party shall have the following rights and powers:

            (a) The Secured Party shall have the right to take possession of the
Collateral  and, for that  purpose,  enter,  with the aid and  assistance of any
person,  any premises where the  Collateral,  or any part thereof,  is or may be
placed and remove the same,  and the Company shall  assemble the  Collateral and
make it available to the Secured  Party at places which the Secured  Party shall
reasonably  select,  whether at the Company's  premises or  elsewhere,  and make
available to the Secured Party,  without rent,  all of the Company's  respective
premises and facilities  for the purpose of the Secured Party taking  possession
of, removing or putting the Collateral in saleable or disposable form.

            (b) The Secured  Party shall have the right to operate the  business
of the Company using the  Collateral  and shall have the right to assign,  sell,
lease or otherwise dispose of and deliver all or any part of the Collateral,  at
public or private sale or otherwise,  either with or without special  conditions
or stipulations, for cash or on credit or for future delivery, in such parcel or
parcels  and at such time or times and at such  place or  places,  and upon such
terms and conditions as the Secured Party may deem commercially reasonable,  all
without (except as shall be required by applicable statute and cannot be waived)
advertisement  or demand upon or notice to the Company or right of redemption of
the Company,  which are hereby  expressly  waived.  Upon each such sale,  lease,
assignment  or other  transfer  of  Collateral,  the Secured  Party may,  unless
prohibited by applicable law which cannot be waived, purchase all or any part of
the Collateral being sold, free from and discharged of all trusts, claims, right
of redemption and equities of the Company, which are hereby waived and released.

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       7.  APPLICATIONS  OF PROCEEDS.  The  proceeds of any such sale,  lease or
other  disposition of the Collateral  hereunder  shall be applied first,  to the
expenses of retaking,  holding,  storing,  processing  and  preparing  for sale,
selling, and the like (including,  without limitation, any taxes, fees and other
costs  incurred in connection  therewith) of the  Collateral,  to the reasonable
attorneys'  fees and expenses  incurred by the Secured  Party in  enforcing  its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral,  and then to satisfaction of the Obligations,  and to the payment of
any other  amounts  required by  applicable  law,  after which the Secured Party
shall pay to the  Company any surplus  proceeds.  If, upon the sale,  license or
other  disposition of the Collateral,  the proceeds  thereof are insufficient to
pay all amounts to which the Secured Party is legally entitled, the Company will
be liable for the deficiency, together with interest thereon, at the rate of 15%
per  annum  (the  "DEFAULT  RATE"),  and the  reasonable  fees of any  attorneys
employed  by the  Secured  Party  to  collect  such  deficiency.  To the  extent
permitted by applicable law, the Company waives all claims,  damages and demands
against the Secured Party arising out of the repossession, removal, retention or
sale of the Collateral, unless due to the gross negligence or willful misconduct
of the Secured Party.

       8. COSTS AND EXPENSES.  The Company agrees to pay all out-of-pocket fees,
costs and expenses  incurred in connection with any filing  required  hereunder,
including without limitation, any financing statements, continuation statements,
partial releases and/or  termination  statements related thereto or any expenses
of any searches reasonably required by the Secured Party. The Company shall also
pay all other claims and charges which in the reasonable  opinion of the Secured
Party  might  prejudice,  imperil  or  otherwise  affect the  Collateral  or the
Security  Interest  therein.  The Company  will also,  upon  demand,  pay to the
Secured  Party the  amount of any and all  reasonable  expenses,  including  the
reasonable fees and expenses of its counsel and of any experts and agents, which
the  Secured  Party may incur in  connection  with (i) the  enforcement  of this
Agreement, (ii) the custody or preservation of, or the sale of, collection from,
or other  realization  upon,  any of the  Collateral,  or (iii) the  exercise or
enforcement of any of the rights of the Secured Party under the Notes.  Until so
paid, any fees payable  hereunder shall be added to the principal  amount of the
Notes and shall bear interest at the Default Rate.

       9. RESPONSIBILITY FOR COLLATERAL. The Company assumes all liabilities and
responsibility  in connection  with all  Collateral,  and the obligations of the
Company  hereunder  or  under  the  Notes  and the  Warrants  shall in no way be
affected or  diminished by reason of the loss,  destruction,  damage or theft of
any of the Collateral or its unavailability for any reason.

       10. SECURITY INTEREST  ABSOLUTE.  All rights of the Secured Party and all
Obligations  of the  Company  hereunder,  shall be absolute  and  unconditional,
irrespective of: (a) any lack of validity or  enforceability  of this Agreement,
the Notes,  the Warrants or any agreement  entered into in  connection  with the
foregoing,  or any portion hereof or thereof; (b) any change in the time, manner
or place of  payment or  performance  of, or in any other term of, all or any of
the  Obligations,  or any other  amendment  or waiver of or any  consent  to any
departure from the Notes,  the Warrants or any other  agreement  entered into in
connection with the foregoing; (c) any exchange, release or nonperfection of any
of the  Collateral,  or any  release  or  amendment  or waiver of or  consent to
departure from any other collateral for, or any guaranty, or any other security,
for all or any of the  Obligations;  (d) any  action  by the  Secured  Party  to
obtain, adjust, settle and cancel in its sole discretion any insurance claims or
matters  made or arising in  connection  with the  Collateral;  or (e) any other
circumstance  which might  otherwise  constitute

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any legal or equitable defense  available to the Company,  or a discharge of all
or any part of the Security Interest granted hereby. Until the Obligations shall
have been paid and  performed  in full,  the rights of the  Secured  Party shall
continue even if the Obligations are barred for any reason,  including,  without
limitation, the running of the statute of limitations or bankruptcy. The Company
expressly waives  presentment,  protest,  notice of protest,  demand,  notice of
nonpayment  and  demand  for  performance.  In the  event  that at any  time any
transfer  of any  Collateral  or any  payment  received  by  the  Secured  Party
hereunder shall be deemed by final order of a court of competent jurisdiction to
have been a voidable preference or fraudulent conveyance under the bankruptcy or
insolvency laws of the United States,  or shall be deemed to be otherwise due to
any party other than the Secured Party,  then, in any such event,  the Company's
obligations  hereunder shall survive  cancellation of this Agreement,  and shall
not be discharged or satisfied by any prior payment thereof and/or  cancellation
of this Agreement,  but shall remain a valid and binding obligation  enforceable
in accordance with the terms and provisions hereof. The Company waives all right
to require the Secured Party to proceed against any other person or to apply any
Collateral  which the Secured Party may hold at any time, or to marshal  assets,
or to pursue any other remedy.  The Company waives any defense arising by reason
of the  application  of the statute of  limitations  to any  obligation  secured
hereby.

       11. TERM OF AGREEMENT.  This  Agreement and the Security  Interest  shall
terminate  on the date on which all amounts  outstanding  under the Notes are no
longer outstanding and all other Obligations have been paid or discharged.  Upon
such  termination,  the Secured Party,  at the request and at the expense of the
Company,  will join in executing any  termination  statement with respect to any
financing statement executed and filed pursuant to this Agreement.

       12. POWER OF ATTORNEY; FURTHER ASSURANCES.

            (a) The Company  authorizes the Secured Party, and does hereby make,
constitute and appoint it, and its respective  officers,  agents,  successors or
assigns  with full  power of  substitution,  as the  Company's  true and  lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after the  occurrence  and during the  continuance  of an Event of Default,  (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including  payments  payable under or in respect of any policy of insurance) in
respect of the  Collateral  that may come into  possession of the Secured Party;
(ii) to sign and endorse any UCC financing statement or any invoice,  freight or
express bill,  bill of lading,  storage or warehouse  receipts,  drafts  against
debtors, assignments, verifications and notices in connection with accounts, and
other  documents  relating to the Collateral;  (iii) to pay or discharge  taxes,
liens,  security interests or other encumbrances at any time levied or placed on
or threatened  against the  Collateral;  (iv) to demand,  collect,  receipt for,
compromise,  settle and sue for monies due in respect of the Collateral; and (v)
generally,  to do, at the  option of the  Secured  Party,  and at the  Company's
expense,  at any  time,  or from  time to time,  all acts and  things  which the
Secured  Party  deems  necessary  to  protect,  preserve  and  realize  upon the
Collateral  and the  Security  Interest  granted  therein in order to effect the
intent  of  this  Agreement,  the  Notes  and the  Warrants,  all as  fully  and
effectually  as the Company might or could do; and the Company  hereby  ratifies
all that said attorney  shall  lawfully do or cause to be done by virtue hereof.
This power of attorney is coupled with an interest and shall be irrevocable  for
the term of this  Agreement  and  thereafter  as long as any of the  Obligations
shall be outstanding.

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            (b)  On  a  continuing  basis,  the  Company  will  make,   execute,
acknowledge,  deliver, file and record, as the case may be, in the proper filing
and recording places in any  jurisdiction,  all such  instruments,  and take all
such action as may reasonably be deemed necessary or advisable, or as reasonably
requested  by the  Secured  Party,  to perfect  the  Security  Interest  granted
hereunder and otherwise to carry out the intent and purposes of this  Agreement,
or for assuring and confirming to the Secured Party the grant or perfection of a
security interest in all the Collateral.

            (c) The Company hereby irrevocably appoints the Secured Party as the
Company's  attorney-in-fact,  with full  authority in the place and stead of the
Company and in the name of the Company, from time to time in the Secured Party's
discretion,  to take any action and to execute any instrument  which the Secured
Party may deem  necessary  or  advisable  to  accomplish  the  purposes  of this
Agreement,  including  the  filing,  in its  sole  discretion,  of  one or  more
financing or continuation statements and amendments thereto,  relative to any of
the Collateral without the signature of the Company where permitted by law.

       13.  NOTICES.  All notices,  requests,  demands and other  communications
hereunder shall be in writing,  with copies to all the other parties hereto, and
shall be deemed to have been duly  given  when (i) if  delivered  by hand,  upon
receipt,  (ii) if sent by facsimile,  upon receipt of proof of sending  thereof,
(iii) if sent by  nationally  recognized  overnight  delivery  service  (receipt
requested), the next business day or (iv) if mailed by first-class registered or
certified  mail,  return receipt  requested,  postage  prepaid,  four days after
posting in the U.S. mails, in each case if delivered to the following addresses:

       If to the Company:                Midnight Holdings Group, Inc.
                                         22600 Hall Road, Suite 205
                                         Clinton Township, MI 48036
                                         Attention: Chief Executive Officer
                                         Telephone: 586-468-8741
                                         Facsimile:   586-468-8768

         With a copy to:                 Reitler Brown & Rosenblatt LLC
                                         800 Third Avenue, 21st Floor
                                         New York, NY  10022
                                         Attention:  Robert Brown, Esq.
                                         Telephone:  212-209-3060
                                         Facsimile:   212-371-5500

                                       9
<PAGE>

         If to the Secured Party:        AJW Partners, LLC
                                         AJW Offshore, Ltd.
                                         AJW Qualified Partners, LLC
                                         New Millennium Capital Partners II, LLC
                                         1044 Northern Boulevard
                                         Suite 302
                                         Roslyn, New York  11576
                                         Attention:  Corey Ribotsky
                                         Facsimile:  516-739-7115

         With a copy to:

                                         Ballard Spahr Andrews & Ingersoll, LLP
                                         1735 Market Street, 51st Floor
                                         Philadelphia, Pennsylvania  19103
                                         Attention:  Gerald J. Guarcini, Esq.
                                         Facsimile:  215-864-8999

       14.  OTHER  SECURITY.  To the  extent  that  the  Obligations  are now or
hereafter  secured by property  other than the  Collateral or by the  guarantee,
endorsement or property of any other person, firm,  corporation or other entity,
then the Secured Party shall have the right, in its sole discretion,  to pursue,
relinquish,  subordinate,  modify or take any other action with respect thereto,
without in any way modifying or affecting any of the Secured  Party's rights and
remedies hereunder.

       15. MISCELLANEOUS.

            (a) No course of dealing  between the Company and the Secured Party,
nor any failure to  exercise,  nor any delay in  exercising,  on the part of the
Secured Party, any right, power or privilege  hereunder or under the Notes shall
operate as a waiver  thereof;  nor shall any single or partial  exercise  of any
right, power or privilege  hereunder or thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

            (b) All of the rights and remedies of the Secured Party with respect
to the Collateral,  whether  established  hereby or by the Notes or by any other
agreements,  instruments  or documents or by law shall be cumulative  and may be
exercised singly or concurrently.

            (c) This Agreement  constitutes the entire  agreement of the parties
with respect to the subject matter hereof and is intended to supersede all prior
negotiations,  understandings  and agreements  with respect  thereto.  Except as
specifically set forth in this Agreement,  no provision of this Agreement may be
modified or amended except by a written agreement specifically referring to this
Agreement and signed by the parties hereto.

            (d) In the event that any provision of this  Agreement is held to be
invalid,  prohibited or unenforceable in any jurisdiction for any reason, unless
such provision is narrowed by judicial construction, this Agreement shall, as to
such jurisdiction,  be construed as if such invalid, prohibited or unenforceable
provision  had been more narrowly  drawn so as not to be invalid,  prohibited or
unenforceable.   If,  notwithstanding  the  foregoing,  any  provision  of  this

                                       10
<PAGE>

Agreement  is  held  to  be  invalid,   prohibited  or   unenforceable   in  any
jurisdiction,  such provision, as to such jurisdiction,  shall be ineffective to
the  extent  of  such  invalidity,   prohibition  or  unenforceability   without
invalidating the remaining  portion of such provision or the other provisions of
this  Agreement  and without  affecting the validity or  enforceability  of such
provision or the other provisions of this Agreement in any other jurisdiction.

            (e) No  waiver of any  breach or  default  or any right  under  this
Agreement  shall be  considered  valid unless in writing and signed by the party
giving  such  waiver,  and no such  waiver  shall  be  deemed  a  waiver  of any
subsequent breach or default or right,  whether of the same or similar nature or
otherwise.

            (f) This Agreement shall be binding upon and inure to the benefit of
each party hereto and its successors and assigns.

            (g) Each  party  shall take such  further  action  and  execute  and
deliver such further  documents as may be necessary or  appropriate  in order to
carry out the provisions and purposes of this Agreement.

            (h) This Agreement shall be construed in accordance with the laws of
the  State of New  York,  except  to the  extent  the  validity,  perfection  or
enforcement  of a security  interest  hereunder  in  respect  of any  particular
Collateral which are governed by a jurisdiction other than the State of New York
in which case such law shall  govern.  Each of the  parties  hereto  irrevocably
submit to the  exclusive  jurisdiction  of any New York  State or United  States
Federal court sitting in Manhattan county over any action or proceeding  arising
out of or relating to this Agreement,  and the parties hereto hereby irrevocably
agree that all claims in respect of such action or  proceeding  may be heard and
determined  in such New York State or Federal  court.  The parties  hereto agree
that a final  judgment in any such action or proceeding  shall be conclusive and
may be enforced in other  jurisdictions  by suit on the judgment or in any other
manner  provided by law. The parties hereto further waive any objection to venue
in the State of New York and any  objection  to an action or  proceeding  in the
State of New York on the basis of forum non conveniens.

            (i) EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS  RESPECTIVE  RIGHTS
TO A JURY TRAIL OF ANY CLAIM OR CAUSE OF ACTION  BASED  UPON OR  ARISING  OUT OF
THIS AGREEMENT.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL  ENCOMPASSING OF
ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER
OF THIS AGREEMENT,  INCLUDING WITHOUT LIMITATION  CONTRACT CLAIMS,  TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY
HERETO  ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO
ENTER INTO A BUSINESS  RELATIONSHIP,  THAT EACH PARTY HAS ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY
ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
REPRESENTS  THAT IT HAS REVIEWED  THIS WAIVER WITH ITS LEGAL  COUNSEL,  AND THAT
SUCH  PARTY HAS  KNOWINGLY  AND  VOLUNTARILY  WAIVES  ITS RIGHTS TO A JURY TRIAL

                                       11
<PAGE>

FOLLOWING  SUCH  CONSULTATION.   THIS  WAIVER  IS  IRREVOCABLE,   MEANING  THAT,
NOTWITHSTANDING  ANYTHING HEREIN TO THE CONTRARY,  IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT  AMENDMENTS,
RENEWALS AND SUPPLEMENTS OR MODIFICATIONS  TO THIS AGREEMENT.  IN THE EVENT OF A
LITIGATION,  THIS AGREEMENT MAY BE FILED AS A WRITTEN  CONSENT TO A TRIAL BY THE
COURT.

(j) This Agreement may be executed in any number of counterparts,  each of which
when so  executed  shall be deemed to be an  original  and,  all of which  taken
together  shall  constitute  one and the same  Agreement.  In the event that any
signature is delivered by facsimile transmission,  such signature shall create a
valid  binding  obligation  of the  party  executing  (or on whose  behalf  such
signature  is  executed)  the same  with the same  force  and  effect as if such
facsimile signature were the original thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

         IN WITNESS  WHEREOF,  the parties  hereto  have  caused  this  Security
Agreement to be duly executed on the day and year first above written.

                                         MIDNIGHT HOLDINGS GROUP, INC.

                                         By: ___________________________________
                                              Nicholas Cocco
                                              Chief Executive Officer

                                         AJW PARTNERS, LLC
                                         By: SMS Group, LLC

                                         By: ___________________________________
                                             Corey S. Ribotsky
                                             Manager

                                         AJW OFFSHORE, LTD.
                                         By:  First Street Manager II, LLC

                                         By: ___________________________________
                                             Corey S. Ribotsky
                                             Manager

                                         AJW QUALIFIED PARTNERS, LLC
                                         By:  AJW Manager, LLC

                                         By: ___________________________________
                                             Corey S. Ribotsky
                                             Manager

                                         NEW MILLENNIUM CAPITAL PARTNERS II, LLP
                                         By:  First Street Manager II, LLC

                                         By:  __________________________________
                                              Corey S. Ribotsky
                                              Manager

                                       13
<PAGE>

                                            WHOLLY-OWNED SUBSIDIARIES OF
                                            MIDNIGHT HOLDINGS GROUP, INC.:

                                            By:_________________________________
                                               Nicholas Cocco
                                            Chief   Executive   Officer   and/or
                                            President on behalf of the following
                                            entities:

                                            MIDNIGHT AUTO HOLDINGS, INC.,
                                            a Michigan corporation

                                            MIDNIGHT AUTO FRANCHISE CORP.,
                                            a Michigan corporation

                                            ALL NIGHT AUTO(R) STORES, INC.,
                                            a Michigan corporation

                                            ALL NIGHT AUTO INC.,
                                            a Michigan corporation - business
                                            done as All Night Auto of Troy

                                            ALL NIGHT AUTO-GROSSE POINTE, INC.,
                                            a Michigan corporation - business
                                            done as All Night Auto of Grosse
                                            Pointe

                                            ALL NIGHT AUTO OF NORMAL NORTH,
                                            a Michigan corporation

                                            ALL NIGHT AUTO OF AURORA,
                                            a Michigan corporation

                                            ALL NIGHT AUTO OF JOLIET,
                                            a Michigan corporation

                                            ALL NIGHT AUTO OF FORT WAYNE,
                                            a Michigan corporation

                                       14
<PAGE>

                                   SCHEDULE A

PRINCIPAL PLACE OF BUSINESS OF THE COMPANY:

         22600 Hall Road, Suite 205 Clinton Township, MI  48036

LOCATIONS WHERE COLLATERAL IS LOCATED OR STORED:

         3872 Rochester Road, Troy, MI 48083
         989 S. Eola Road, Aurora, IL  60504
         13 Westport Court, Bloomington, IL 61704
         9500 West 179th Street, Tinley Park, IL  60477
         9502 West 179th Street, Tinley Park, IL  60477
         1835 East Guadalupe, Suite 116, Tempe, AZ  85283

LIST OF SUBSIDIARIES OF THE COMPANY:

         Midnight Auto Holdings, Inc.
         Midnight Auto Franchise Corp.
         All Night Auto, Inc.
         All Night Auto Grosse Pointe, Inc.
         All Night Auto Stores, Inc.
         All Night Auto of Normal North, Inc.
         All Night Auto of Aurora, Inc.
         All Night Auto of Joliet, Inc.
         All Night Auto of Fort Wayne, Inc.

                                       15Exhibit 10.59

                    INTELLECTUAL PROPERTY SECURITY AGREEMENT

                  INTELLECTUAL PROPERTY SECURITY AGREEMENT (this "AGREEMENT"
dated as of February 13, 2007, by and among Midnight Holdings Group, Inc., a
Delaware corporation (the "COMPANY"), and the secured parties signatory hereto
and their respective endorsees, transferees and assigns (collectively, the
"SECURED PARTY").

                              W I T N E S S E T H :

         WHEREAS, pursuant to a Securities Purchase Agreement, dated the date
hereof, between Company and the Secured Party (the "PURCHASE AGREEMENT"),
Company has agreed to issue to the Secured Party and the Secured Party has
agreed to purchase from Company certain of Company's 10% Secured Convertible
Notes, due three years from the date of issue (the "NOTES"), which are
convertible into shares of Company's Common Stock, par value $.00005 per share
(the "COMMON STOCK"). In connection therewith, Company shall issue the Secured
Party certain Common Stock purchase warrants dated as of the date hereof to
purchase the number of shares of Common Stock indicated below each Secured
Party's name on the Purchase Agreement (the "WARRANTS"); and

         WHEREAS, in order to induce the Secured Party to purchase the Notes,
Company has agreed to execute and deliver to the Secured Party this Agreement
for the benefit of the Secured Party and to grant to it a first priority
security interest in certain Intellectual Property (defined below) of Company to
secure the prompt payment, performance and discharge in full of all of Company's
obligations under the Notes and exercise and discharge in full of Company's
obligations under the Warrants; and

         NOW, THEREFORE, in consideration of the agreements herein contained and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

       1.  DEFINED  TERMS.  Unless  otherwise  defined  herein,  terms which are
defined in the Purchase Agreement and used herein are so used as so defined; and
the following terms shall have the following meanings:

            "SOFTWARE INTELLECTUAL PROPERTY" shall mean:

            (a) all software  programs  (including all source code,  object code
and all related  applications  and data  files),  whether  now owned,  upgraded,
enhanced, licensed or leased or hereafter acquired by the Company, above;

            (b) all  computers  and  electronic  data  processing  hardware  and
firmware associated therewith;

            (c)  all  documentation  (including  flow  charts,  logic  diagrams,
manuals, guides and specifications) with respect to such software,  hardware and
firmware described in the preceding clauses (a) and (b); and

<PAGE>

            (d) all  rights  with  respect to all of the  foregoing,  including,
without limitation, any and all upgrades,  modifications,  copyrights, licenses,
options,   warranties,   service  contracts,   program  services,  test  rights,
maintenance  rights,  support  rights,  improvement  rights,  renewal rights and
indemnifications   and   substitutions,   replacements,   additions,   or  model
conversions of any of the foregoing.

            "COPYRIGHTS"  shall  mean  (a)  all  copyrights,  registrations  and
applications  for  registration,   ISSUED  or  filed,  including  any  reissues,
extensions or renewals thereof, by or with the United States Copyright Office or
any similar  office or agency of the United States,  any state  thereof,  or any
other country or political  subdivision  thereof, or otherwise,  including,  all
rights  in  and  to  the  material  constituting  the  subject  matter  thereof,
including, without limitation, any referred to in SCHEDULE B hereto, and (b) any
rights in any material  which is  copyrightable  or which is protected by common
law,  United  States  copyright  laws or  similar  laws or any law of any State,
including, without limitation, any thereof referred to in SCHEDULE B hereto.

            "COPYRIGHT  LICENSE"  shall  mean any  agreement,  written  or oral,
providing for a grant by the Company of any right in any  Copyright,  including,
without limitation, any thereof referred to in SCHEDULE B hereto.

            "INTELLECTUAL  PROPERTY"  shall  means,  collectively,  the Software
Intellectual Property, Copyrights, Copyright Licenses, Patents, Patent Licenses,
Trademarks, Trademark Licenses and Trade Secrets.

            "OBLIGATIONS"  means all of the  Company's  obligations  under  this
Agreement  and the  Notes,  in each case,  whether  now or  hereafter  existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated
or  unliquidated,  whether or not jointly owed with  others,  and whether or not
from time to time  decreased or  extinguished  and later  decreased,  created or
incurred,  and all or any portion of such  obligations or  liabilities  that are
paid,  to the  extent all or any part of such  payment  is avoided or  recovered
directly  or  indirectly  from the  Secured  Party as a  preference,  fraudulent
transfer  or  otherwise  as  such  obligations  may  be  amended,  supplemented,
converted, extended or modified from time to time.

            "PATENTS"  shall mean (a) all letters patent of the United States or
any other country or any  political  subdivision  thereof,  and all reissues and
extensions thereof,  including,  without limitation,  any thereof referred to in
SCHEDULE B hereto,  and (b) all  applications  for letters  patent of the United
States and all divisions, continuations and continuations-in-part thereof or any
other country or any political subdivision,  including,  without limitation, any
thereof referred to in SCHEDULE B hereto.

            "PATENT LICENSE" shall mean all agreements, whether written or oral,
providing for the grant by the Company of any right to manufacture,  use or sell
any invention covered by a Patent,  including,  without limitation,  any thereof
referred to in SCHEDULE B hereto.

            "SECURITY AGREEMENT" shall mean the a Security Agreement,  dated the
date hereof between Company and the Secured Party.

            "TRADEMARKS" shall mean (a) all trademarks,  trade names,  corporate
names, company names,  business names,  fictitious business names, trade styles,
service marks,

                                       2
<PAGE>

logos and other source or business identifiers, and the goodwill associated
therewith, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, whether in the
United States Patent and Trademark Office or in any similar office or agency of
the United States, any state thereof or any other country or any political
subdivision thereof, or otherwise, including, without limitation, any thereof
referred to in SCHEDULE B hereto, and (b) all reissues, extensions or renewals
thereof.

            "TRADEMARK LICENSE" shall mean any agreement, written or oral,
providing for the grant by the Company of any right to use any Trademark,
including, without limitation, any thereof referred to in SCHEDULE B hereto.

            "TRADE SECRETS" shall mean common law and statutory trade secrets
and all other confidential or proprietary or useful information and all know-how
obtained by or used in or contemplated at any time for use in the business of
the Company (all of the foregoing being collectively called a "TRADE SECRET"),
whether or not such Trade Secret has been reduced to a writing or other tangible
form, including all documents and things embodying, incorporating or referring
in any way to such Trade Secret, all Trade Secret licenses, including each Trade
Secret license referred to in SCHEDULE B hereto, and including the right to sue
for and to enjoin and to collect damages for the actual or threatened
misappropriation of any Trade Secret and for the breach or enforcement of any
such Trade Secret license.

       2. GRANT OF SECURITY INTEREST. In accordance with Section 3(m) of the
Security Agreement, to secure the complete and timely payment, performance and
discharge in full, as the case may be, of all of the Obligations, the Company
hereby, unconditionally and irrevocably, pledges, grants and hypothecates to the
Secured Party, a continuing security interest in, a continuing first lien upon,
an unqualified right to possession and disposition of and a right of set-off
against, in each case to the fullest extent permitted by law, all of the
Company's right, title and interest of whatsoever kind and nature in and to the
Intellectual Property (the "SECURITY INTEREST").

       3. REPRESENTATIONS AND WARRANTIES. The Company hereby represents and
warrants, and covenants and agrees with, the Secured Party as follows:

            (a) The Company has the requisite corporate power and authority to
enter into this Agreement and otherwise to carry out its obligations thereunder.
The execution, delivery and performance by the Company of this Agreement and the
filings contemplated therein have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company.
This Agreement constitutes a legal, valid and binding obligation of the Company
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditor's rights generally.

            (b) The Company represents and warrants that it has no place of
business or offices where its respective books of account and records are kept
(other than temporarily at the offices of its attorneys or accountants) or
places where the Intellectual Property is stored or located, except as has been
disclosed to the Secured Party;

                                       3
<PAGE>

            (c) Except as set forth on SCHEDULE 3(C), the Company is the sole
owner of the Intellectual Property (except for non-exclusive licenses granted by
the Company in the ordinary course of business), free and clear of any liens,
security interests, encumbrances, rights or claims, and is fully authorized to
grant the Security Interest in and to pledge the Intellectual Property. There is
not on file in any governmental or regulatory authority, agency or recording
office an effective financing statement, security agreement, license or transfer
or any notice of any of the foregoing (other than those that have been filed in
favor of the Secured Party pursuant to this Agreement) covering or affecting any
of the Intellectual Property. So long as this Agreement shall be in effect, the
Company shall not execute and shall not knowingly permit to be on file in any
such office or agency any such financing statement or other document or
instrument (except to the extent filed or recorded in favor of the Secured Party
pursuant to the terms of this Agreement), except for a financing statement
covering assets acquired by the Company after the date hereof, provided that the
value of the Intellectual Property covered by this Agreement along with the
Collateral (as defined in the Security Agreement) is equal to at least 150% of
the Obligations.

            (d) The Company shall at all times maintain its books of account and
records relating to the Intellectual Property at its principal place of business
and may not relocate such books of account and records unless it delivers to the
Secured Party at least 30 days prior to such relocation (i) written notice of
such relocation and the new location thereof (which must be within the United
States) and (ii) evidence that the necessary documents have been filed and
recorded and other steps have been taken to perfect the Security Interest to
create in favor of the Secured Party valid, perfected and continuing first
priority liens in the Intellectual Property to the extent they can be perfected
through such filings.

            (e) This Agreement creates in favor of the Secured Party a valid
security interest in the Intellectual Property securing the payment and
performance of the Obligations and, upon making the filings required hereunder,
a perfected first priority security interest in such Intellectual Property to
the extent that it can be perfected through such filings.

            (f) Upon request of the Secured Party, the Company shall execute and
deliver any and all agreements, instruments, documents, and papers as the
Secured Party may request to evidence the Secured Party's security interest in
the Intellectual Property and the goodwill and general intangibles of the
Company relating thereto or represented thereby, and the Company hereby appoints
the Secured Party its attorney-in-fact to execute and file all such writings for
the foregoing purposes, all acts of such attorney being hereby ratified and
confirmed; such power being coupled with an interest is irrevocable until the
Obligations have been fully satisfied and are paid in full.

            (g) The execution, delivery and performance of this Agreement does
not conflict with or cause a breach or default, or an event that with or without
the passage of time or notice, shall constitute a breach or default, under any
agreement to which the Company is a party or by which the Company is bound. No
consent (including, without limitation, from stock holders or creditors of the
Company) is required for the Company to enter into and perform its obligations
hereunder.

                                       4
<PAGE>

            (h) The Company shall at all times maintain the liens and Security
Interest provided for hereunder as valid and perfected liens and security
interests in the Intellectual Property to the extent they can be perfected by
filing in favor of the Secured Party until this Agreement and the Security
Interest hereunder shall terminate pursuant to Section 11. The Company hereby
agrees to defend the same against any and all persons. The Company shall
safeguard and protect all Intellectual Property for the account of the Secured
Party. Without limiting the generality of the foregoing, the Company shall pay
all fees, taxes and other amounts necessary to maintain the Intellectual
Property and the Security Interest hereunder, and the Company shall obtain and
furnish to the Secured Party from time to time, upon demand, such releases
and/or subordinations of claims and liens which may be required to maintain the
priority of the Security Interest hereunder.

            (i) The Company will not transfer, pledge, hypothecate, encumber,
license (except for non-exclusive licenses granted by the Company in the
ordinary course of business), sell or otherwise dispose of any of the
Intellectual Property without the prior written consent of the Secured Party.

            (j) The Company shall, within ten (10) days of obtaining knowledge
thereof, advise the Secured Party promptly, in sufficient detail, of any
substantial change in the Intellectual Property, and of the occurrence of any
event which would have a material adverse effect on the value of the
Intellectual Property or on the Secured Party's security interest therein.

            (k) The Company shall permit the Secured Party and its
representatives and agents to inspect the Intellectual Property at any time, and
to make copies of records pertaining to the Intellectual Property as may be
requested by the Secured Party from time to time.

            (l) The Company will take all steps reasonably necessary to
diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Intellectual
Property.

            (m) The Company shall promptly notify the Secured Party in
sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Intellectual Property and of any other
information received by the Company that may materially affect the value of the
Intellectual Property, the Security Interest or the rights and remedies of the
Secured Party hereunder.

            (n) All information heretofore, herein or hereafter supplied to the
Secured Party by or on behalf of the Company with respect to the Intellectual
Property is accurate and complete in all material respects as of the date
furnished.

            (o) SCHEDULE 3(A) to the Purchase Agreement contains a list of all
of the subsidiaries of Company.

            (p) SCHEDULE B attached hereto includes all Patents and Patent
Licenses, if any, owned by the Company in its own name as of the date hereof.
SCHEDULE B hereto includes all Trademarks and Trademark Licenses, if any, owned
by the Company in its own name as of the date hereof. SCHEDULE B hereto includes
all Copyrights and Copyright

                                       5
<PAGE>

Licenses, if any, owned by the Company in its own name as of the date hereof.
SCHEDULE B hereto includes all Trade Secrets and Trade Secret Licenses, if any,
owned by the Company as of the date hereof. To the best of the Company's
knowledge, each License, Patent, Trademark, Copyright and Trade Secret is valid,
subsisting, unexpired, enforceable and has not been abandoned. Except as set
forth in SCHEDULE B, none of such Licenses, Patents, Trademarks, Copyrights and
Trade Secrets is the subject of any licensing or franchise agreement. To the
best of the Company's knowledge, no holding, decision or judgment has been
rendered by any Governmental Body which would limit, cancel or question the
validity of any License, Patent, Trademark, Copyright and Trade Secrets . No
action or proceeding is pending (i) seeking to limit, cancel or question the
validity of any License, Patent, Trademark, Copyright or Trade Secret, or (ii)
which, if adversely determined, would have a material adverse effect on the
value of any License, Patent, Trademark, Copyright or Trade Secret. The Company
has used and will continue to use for the duration of this Agreement, proper
statutory notice in connection with its use of the Patents, Trademarks and
Copyrights and consistent standards of quality in products leased or sold under
the Patents, Trademarks and Copyrights.

            (q) With respect to any Intellectual Property:

                     (i)    such Intellectual Property is subsisting and has not
                            been adjudged invalid or unenforceable, in whole or
                            in part;

                     (ii)   such Intellectual Property is valid and enforceable;

                     (iii)  the Company has made all necessary filings and
                            recordations to protect its interest in such
                            Intellectual Property, including, without
                            limitation, recordations of all of its interests in
                            the Patents, Patent Licenses, Trademarks and
                            Trademark Licenses in the United States Patent and
                            Trademark Office and in corresponding offices
                            throughout the world and its claims to the
                            Copyrights and Copyright Licenses in the United
                            States Copyright Office and in corresponding offices
                            throughout the world;

                     (iv)   other than as set forth in SCHEDULE B, the Company
                            is the exclusive owner of the entire and
                            unencumbered right, title and interest in and to
                            such Intellectual Property and no claim has been
                            made that the use of such Intellectual Property
                            infringes on the asserted rights of any third party;
                            and

                     (v)    the Company has performed and will continue to
                            perform all acts and has paid all required fees and
                            taxes to maintain each and every item of
                            Intellectual Property in full force and effect
                            throughout the world, as applicable.

                                       6
<PAGE>

            (r) Except with respect to any Trademark or Copyright that the
Company shall reasonably determine is of negligible economic value to the
Company, the Company shall:

                (i) maintain each Trademark and Copyright in full force free
        from any claim of abandonment for non-use, maintain as in the past the
        quality of products and services offered under such Trademark or
        Copyright; employ such Trademark or Copyright with the appropriate
        notice of registration; not adopt or use any mark which is confusingly
        similar or a colorable imitation of such Trademark or Copyright unless
        the Secured Party shall obtain a perfected security interest in such
        mark pursuant to this Agreement; and not (and not permit any licensee or
        sublicensee thereof to) do any act or knowingly omit to do any act
        whereby any Trademark or Copyright may become invalidated;

                (ii) not, except with respect to any Patent that it shall
        reasonably determine is of negligible economic value to it, do any act,
        or omit to do any act, whereby any Patent may become abandoned or
        dedicated; and

                (iii) notify the Secured Party immediately if it knows, or has
        reason to know, that any application or registration relating to any
        Patent, Trademark or Copyright may become abandoned or dedicated, or of
        any adverse determination or development (including, without limitation,
        the institution of, or any such determination or development in, any
        proceeding in the United States Patent and Trademark Office, United
        States Copyright Office or any court or tribunal in any country)
        regarding its ownership of any Patent, Trademark or Copyright or its
        right to register the same or to keep and maintain the same.

            (s) Whenever the Company, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration
of any Patent, Trademark or Copyright with the United States Patent and
Trademark Office, United States Copyright Office or any similar office or agency
in any other country or any political subdivision thereof or acquire rights to
any new Patent, Trademark or Copyright whether or not registered, report such
filing to the Secured Party within five business days after the last day of the
fiscal quarter in which such filing occurs.

            (t) The Company shall take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark Office, United States Copyright Office or any similar office or
agency in any other country or any political subdivision thereof, to maintain
and pursue each application (and to obtain the relevant registration) and to
maintain each registration of the Patents, Trademarks and Copyrights, including,
without limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.

            (u) In the event that any Patent, Trademark or Copyright included in
the Intellectual Property is infringed, misappropriated or diluted by a third
party, promptly notify the Secured Party after it learns thereof and shall,
unless it shall reasonably determine that such Patent, Trademark or Copyright is
of negligible economic value to it, which determination it

                                       7
<PAGE>

shall promptly report to the Secured Party, promptly sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to
recover any and all damages for such infringement, misappropriation or dilution,
or take such other actions as it shall reasonably deem appropriate under the
circumstances to protect such Patent, Trademark or Copyright. If the Company
lacks the financial resources to comply with this Section 3(t), the Company
shall so notify the Secured Party and shall cooperate fully with any enforcement
action undertaken by the Secured Party on behalf of the Company.

       4. DEFAULTS. The following events shall be "EVENTS OF DEFAULT":

            (a) The occurrence of an Event of Default (as defined in the Notes)
under the Notes;

            (b) Any representation or warranty of the Company in this Agreement
or in the Security Agreement shall prove to have been incorrect in any material
respect when made;

            (c) The failure by the Company to observe or perform any of its
obligations hereunder or in the Security Agreement for ten (10) days after
receipt by the Company of notice of such failure from the Secured Party; and

            (d) Any breach of, or default under, the Warrants.

       5. DUTY TO HOLD IN TRUST. Upon the occurrence of any Event of Default and
at any time thereafter, the Company shall, upon receipt by it of any revenue,
income or other sums subject to the Security Interest, whether payable pursuant
to the Notes or otherwise, or of any check, draft, note, trade acceptance or
other instrument evidencing an obligation to pay any such sum, hold the same in
trust for the Secured Party and shall forthwith endorse and transfer any such
sums or instruments, or both, to the Secured Party for application to the
satisfaction of the Obligations.

       6. RIGHTS AND REMEDIES UPON DEFAULT. Upon occurrence of any Event of
Default and at any time thereafter, the Secured Party shall have the right to
exercise all of the remedies conferred hereunder and under the Notes, and the
Secured Party shall have all the rights and remedies of a secured party under
the UCC and/or any other applicable law (including the Uniform Commercial Code
of any jurisdiction in which any Intellectual Property is then located). Without
limitation, the Secured Party shall have the following rights and powers:

            (a) The Secured Party shall have the right to take possession of the
Intellectual Property and, for that purpose, enter, with the aid and assistance
of any person, any premises where the Intellectual Property, or any part
thereof, is or may be placed and remove the same, and the Company shall assemble
the Intellectual Property and make it available to the Secured Party at places
which the Secured Party shall reasonably select, whether at the Company's
premises or elsewhere, and make available to the Secured Party, without rent,
all of the Company's respective premises and facilities for the purpose of the
Secured Party taking possession of, removing or putting the Intellectual
Property in saleable or disposable form.

                                       8
<PAGE>

            (b) The Secured Party shall have the right to operate the business
of the Company using the Intellectual Property and shall have the right to
assign, sell, lease or otherwise dispose of and deliver all or any part of the
Intellectual Property, at public or private sale or otherwise, either with or
without special conditions or stipulations, for cash or on credit or for future
delivery, in such parcel or parcels and at such time or times and at such place
or places, and upon such terms and conditions as the Secured Party may deem
commercially reasonable, all without (except as shall be required by applicable
statute and cannot be waived) advertisement or demand upon or notice to the
Company or right of redemption of the Company, which are hereby expressly
waived. Upon each such sale, lease, assignment or other transfer of Intellectual
Property, the Secured Party may, unless prohibited by applicable law which
cannot be waived, purchase all or any part of the Intellectual Property being
sold, free from and discharged of all trusts, claims, right of redemption and
equities of the Company, which are hereby waived and released.

       7. APPLICATIONS OF PROCEEDS. The proceeds of any such sale, lease or
other disposition of the Intellectual Property hereunder shall be applied first,
to the expenses of retaking, holding, storing, processing and preparing for
sale, selling, and the like (including, without limitation, any taxes, fees and
other costs incurred in connection therewith) of the Intellectual Property, to
the reasonable attorneys' fees and expenses incurred by the Secured Party in
enforcing its rights hereunder and in connection with collecting, storing and
disposing of the Intellectual Property, and then to satisfaction of the
Obligations, and to the payment of any other amounts required by applicable law,
after which the Secured Party shall pay to the Company any surplus proceeds. If,
upon the sale, license or other disposition of the Intellectual Property, the
proceeds thereof are insufficient to pay all amounts to which the Secured Party
is legally entitled, the Company will be liable for the deficiency, together
with interest thereon, at the rate of 15% per annum (the "DEFAULT RATE"), and
the reasonable fees of any attorneys employed by the Secured Party to collect
such deficiency. To the extent permitted by applicable law, the Company waives
all claims, damages and demands against the Secured Party arising out of the
repossession, removal, retention or sale of the Intellectual Property, unless
due to the gross negligence or willful misconduct of the Secured Party.

       8. COSTS AND EXPENSES. The Company agrees to pay all out-of-pocket fees,
costs and expenses incurred in connection with any filing required hereunder,
including without limitation, any financing statements, continuation statements,
partial releases and/or termination statements related thereto or any expenses
of any searches reasonably required by the Secured Party. The Company shall also
pay all other claims and charges which in the reasonable opinion of the Secured
Party might prejudice, imperil or otherwise affect the Intellectual Property or
the Security Interest therein. The Company will also, upon demand, pay to the
Secured Party the amount of any and all reasonable expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents, which
the Secured Party may incur in connection with (i) the enforcement of this
Agreement, (ii) the custody or preservation of, or the sale of, collection from,
or other realization upon, any of the Intellectual Property, or (iii) the
exercise or enforcement of any of the rights of the Secured Party under the
Notes. Until so paid, any fees payable hereunder shall be added to the principal
amount of the Notes and shall bear interest at the Default Rate.

                                       9
<PAGE>

       9. RESPONSIBILITY FOR INTELLECTUAL PROPERTY. The Company assumes all
liabilities and responsibility in connection with all Intellectual Property, and
the obligations of the Company hereunder or under the Notes and the Warrants
shall in no way be affected or diminished by reason of the loss, destruction,
damage or theft of any of the Intellectual Property or its unavailability for
any reason.

       10. SECURITY INTEREST ABSOLUTE. All rights of the Secured Party and all
Obligations of the Company hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement,
the Notes, the Warrants or any agreement entered into in connection with the
foregoing, or any portion hereof or thereof; (b) any change in the time, manner
or place of payment or performance of, or in any other term of, all or any of
the Obligations, or any other amendment or waiver of or any consent to any
departure from the Notes, the Warrants or any other agreement entered into in
connection with the foregoing; (c) any exchange, release or nonperfection of any
of the Intellectual Property, or any release or amendment or waiver of or
consent to departure from any other Intellectual Property for, or any guaranty,
or any other security, for all or any of the Obligations; (d) any action by the
Secured Party to obtain, adjust, settle and cancel in its sole discretion any
insurance claims or matters made or arising in connection with the Intellectual
Property; or (e) any other circumstance which might otherwise constitute any
legal or equitable defense available to the Company, or a discharge of all or
any part of the Security Interest granted hereby. Until the Obligations shall
have been paid and performed in full, the rights of the Secured Party shall
continue even if the Obligations are barred for any reason, including, without
limitation, the running of the statute of limitations or bankruptcy. The Company
expressly waives presentment, protest, notice of protest, demand, notice of
nonpayment and demand for performance. In the event that at any time any
transfer of any Intellectual Property or any payment received by the Secured
Party hereunder shall be deemed by final order of a court of competent
jurisdiction to have been a voidable preference or fraudulent conveyance under
the bankruptcy or insolvency laws of the United States, or shall be deemed to be
otherwise due to any party other than the Secured Party, then, in any such
event, the Company's obligations hereunder shall survive cancellation of this
Agreement, and shall not be discharged or satisfied by any prior payment thereof
and/or cancellation of this Agreement, but shall remain a valid and binding
obligation enforceable in accordance with the terms and provisions hereof. The
Company waives all right to require the Secured Party to proceed against any
other person or to apply any Intellectual Property which the Secured Party may
hold at any time, or to marshal assets, or to pursue any other remedy. The
Company waives any defense arising by reason of the application of the statute
of limitations to any obligation secured hereby.

       11. TERM OF AGREEMENT. This Agreement and the Security Interest shall
terminate on the date on which all amounts outstanding under the Notes are no
longer outstanding and all other Obligations have been paid or discharged. Upon
such termination, the Secured Party, at the request and at the expense of the
Company, will join in executing any termination statement with respect to any
financing statement executed and filed pursuant to this Agreement.

                                       10
<PAGE>

       12. POWER OF ATTORNEY; FURTHER ASSURANCES.

            (a) The Company authorizes the Secured Party, and does hereby make,
constitute and appoint it, and its respective officers, agents, successors or
assigns with full power of substitution, as the Company's true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after the occurrence and during the continuance of an Event of Default, (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including payments payable under or in respect of any policy of insurance) in
respect of the Intellectual Property that may come into possession of the
Secured Party; (ii) to sign and endorse any UCC financing statement or any
invoice, freight or express bill, bill of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications and notices in connection
with accounts, and other documents relating to the Intellectual Property; (iii)
to pay or discharge taxes, liens, security interests or other encumbrances at
any time levied or placed on or threatened against the Intellectual Property;
(iv) to demand, collect, receipt for, compromise, settle and sue for monies due
in respect of the Intellectual Property; and (v) generally, to do, at the option
of the Secured Party, and at the Company's expense, at any time, or from time to
time, all acts and things which the Secured Party deems necessary to protect,
preserve and realize upon the Intellectual Property and the Security Interest
granted therein in order to effect the intent of this Agreement, the Notes and
the Warrants, all as fully and effectually as the Company might or could do; and
the Company hereby ratifies all that said attorney shall lawfully do or cause to
be done by virtue hereof. This power of attorney is coupled with an interest and
shall be irrevocable for the term of this Agreement and thereafter as long as
any of the Obligations shall be outstanding.

            (b) On a continuing basis, the Company will make, execute,
acknowledge, deliver, file and record, as the case may be, in the proper filing
and recording places in any jurisdiction, all such instruments, and take all
such action as may reasonably be deemed necessary or advisable, or as reasonably
requested by the Secured Party, to perfect the Security Interest granted
hereunder and otherwise to carry out the intent and purposes of this Agreement,
or for assuring and confirming to the Secured Party the grant or perfection of a
security interest in all the Intellectual Property.

            (c) The Company hereby irrevocably appoints the Secured Party as the
Company's attorney-in-fact, with full authority in the place and stead of the
Company and in the name of the Company, from time to time in the Secured Party's
discretion, to take any action and to execute any instrument which the Secured
Party may deem necessary or advisable to accomplish the purposes of this
Agreement, including the filing, in its sole discretion, of one or more
financing or continuation statements and amendments thereto, relative to any of
the Intellectual Property without the signature of the Company where permitted
by law.

       13. NOTICES. All notices, requests, demands and other communications
hereunder shall be in writing, with copies to all the other parties hereto, and
shall be deemed to have been duly given when (i) if delivered by hand, upon
receipt, (ii) if sent by facsimile, upon receipt of proof of sending thereof,
(iii) if sent by nationally recognized overnight delivery service (receipt
requested), the next business day or (iv) if mailed by first-class registered or
certified mail, return receipt requested, postage prepaid, four days after
posting in the U.S. mails, in each case if delivered to the following addresses:

                                       11
<PAGE>

             If to the Company:          Midnight Holdings Group, Inc.
                                         22600 Hall Road, Suite 205
                                         Clinton Township, MI 48036
                                         Attention: Chief Executive Officer
                                         Telephone: 586-468-8741
                                         Facsimile:   586-468-8768

         With copies to:                 Reitler Brown & Rosenblatt LLC
                                         800 Third Avenue, 21st Floor
                                         New York, NY  10022
                                         Attention:  Robert Brown, Esq.
                                         Telephone:  212-209-3060
                                         Facsimile:   212-371-5500

         If to the Secured Party:        AJW Partners, LLC
                                         AJW Offshore, Ltd.
                                         AJW Qualified Partners, LLC
                                         New Millennium Capital Partners II, LLC
                                         1044 Northern Boulevard
                                         Suite 302
                                         Roslyn, New York  11576
                                         Attention:  Corey Ribotsky
                                         Facsimile:  516-739-7115

         With copies to:                 Ballard Spahr Andrews & Ingersoll, LLP
                                         1735 Market Street, 51st Floor
                                         Philadelphia, Pennsylvania  19103
                                         Attention:  Gerald J. Guarcini, Esquire
                                         Facsimile: 215-864-8999

       14. OTHER SECURITY. To the extent that the Obligations are now or
hereafter secured by property other than the Intellectual Property or by the
guarantee, endorsement or property of any other person, firm, corporation or
other entity, then the Secured Party shall have the right, in its sole
discretion, to pursue, relinquish, subordinate, modify or take any other action
with respect thereto, without in any way modifying or affecting any of the
Secured Party's rights and remedies hereunder.

                                       12
<PAGE>

       15. MISCELLANEOUS.

            (a) No course of dealing between the Company and the Secured Party,
nor any failure to exercise, nor any delay in exercising, on the part of the
Secured Party, any right, power or privilege hereunder or under the Notes shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, power or privilege hereunder or thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

            (b) All of the rights and remedies of the Secured Party with respect
to the Intellectual Property, whether established hereby or by the Notes or by
any other agreements, instruments or documents or by law shall be cumulative and
may be exercised singly or concurrently.

            (c) This Agreement and the Security Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and is
intended to supersede all prior negotiations, understandings and agreements with
respect thereto. Except as specifically set forth in this Agreement, no
provision of this Agreement may be modified or amended except by a written
agreement specifically referring to this Agreement and signed by the parties
hereto.

            (d) In the event that any provision of this Agreement is held to be
invalid, prohibited or unenforceable in any jurisdiction for any reason, unless
such provision is narrowed by judicial construction, this Agreement shall, as to
such jurisdiction, be construed as if such invalid, prohibited or unenforceable
provision had been more narrowly drawn so as not to be invalid, prohibited or
unenforceable. If, notwithstanding the foregoing, any provision of this
Agreement is held to be invalid, prohibited or unenforceable in any
jurisdiction, such provision, as to such jurisdiction, shall be ineffective to
the extent of such invalidity, prohibition or unenforceability without
invalidating the remaining portion of such provision or the other provisions of
this Agreement and without affecting the validity or enforceability of such
provision or the other provisions of this Agreement in any other jurisdiction.

            (e) No waiver of any breach or default or any right under this
Agreement shall be considered valid unless in writing and signed by the party
giving such waiver, and no such waiver shall be deemed a waiver of any
subsequent breach or default or right, whether of the same or similar nature or
otherwise.

            (f) This Agreement shall be binding upon and inure to the benefit of
each party hereto and its successors and assigns.

            (g) Each party shall take such further action and execute and
deliver such further documents as may be necessary or appropriate in order to
carry out the provisions and purposes of this Agreement.

            (h) This Agreement shall be construed in accordance with the laws of
the State of New York, except to the extent the validity, perfection or
enforcement of a security interest hereunder in respect of any particular
Intellectual Property which are governed by a jurisdiction other than the State
of New York in which case such law shall govern. Each of the parties hereto
irrevocably submit to the exclusive jurisdiction of any New York State or United
States Federal court sitting in Manhattan county over any action or proceeding
arising out of or

                                       13
<PAGE>

relating to this Agreement, and the parties hereto hereby irrevocably agree that
all claims in respect of such action or proceeding may be heard and determined
in such New York State or Federal court. The parties hereto agree that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. The parties hereto further waive any objection to venue in the
State of New York and any objection to an action or proceeding in the State of
New York on the basis of forum non conveniens.

            (i) EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS
TO A JURY TRAIL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF
ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT
MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.
EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR
EACH PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY
RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL
CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY
FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO
A JURY TRIAL FOLLOWING SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING
THAT, NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED
EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE
EVENT OF A LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A
TRIAL BY THE COURT.

            (j) This Agreement may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and, all of
which taken together shall constitute one and the same Agreement. In the event
that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf
such signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       14
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the day and year first above written.

                                        MIDNIGHT HOLDINGS GROUP, INC.

                                        By:
                                           -------------------------------------
                                            Nicholas Cocco
                                            Chief Executive Officer

                                        AJW PARTNERS, LLC
                                        By:  SMS Group, LLC

                                        By:
                                           -------------------------------------
                                           Corey S. Ribotsky
                                           Manager

                                        AJW OFFSHORE, LTD.
                                        By:  First Street Manager II, LLC

                                        By:
                                           -------------------------------------
                                           Corey S. Ribotsky
                                           Manager

                                        AJW QUALIFIED PARTNERS, LLC
                                        By:  AJW Manager, LLC

                                        By:
                                           -------------------------------------
                                             Corey S. Ribotsky
                                             Manager

                                        NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                                        By:  First Street Manager II, LLC

                                        By:
                                           -------------------------------------
                                             Corey S. Ribotsky
                                             Manager

                                       15
<PAGE>

                                            WHOLLY-OWNED SUBSIDIARIES OF
                                            MIDNIGHT HOLDINGS GROUP, INC.:

                                            By:_______________________________
                                               Nicholas Cocco
                                            Chief Executive Officer and/or
                                            President on behalf of the
                                            following entities:

                                            MIDNIGHT AUTO HOLDINGS, INC.,
                                            a Michigan corporation

                                            MIDNIGHT AUTO FRANCHISE CORP.,
                                            a Michigan corporation

                                            ALL NIGHT AUTO(R) STORES, INC.,
                                            a Michigan corporation

                                            ALL NIGHT AUTO INC.,
                                            a Michigan corporation - business
                                            done as All Night Auto of
                                            Troy

                                            ALL NIGHT AUTO-GROSSE POINTE, INC.,
                                            a Michigan corporation - business
                                            done as All Night Auto of
                                            Grosse Pointe

                                            ALL NIGHT AUTO OF NORMAL NORTH,
                                            a Michigan corporation

                                            ALL NIGHT AUTO OF AURORA,
                                            a Michigan corporation

                                            ALL NIGHT AUTO OF JOLIET,
                                            a Michigan corporation

                                            ALL NIGHT AUTO OF FORT WAYNE,
                                            a Michigan corporation

                                       16
<PAGE>

                                   SCHEDULE A

PRINCIPAL PLACE OF BUSINESS OF THE COMPANY:

         22600 Hall Road, Clinton Township, MI  48036

LOCATIONS WHERE COLLATERAL IS LOCATED OR STORED:

         3872 Rochester Road, Troy, MI 48083
         989 S. Eola Road, Aurora, IL  60504
         13 Westport Court, Bloomington, IL 61704
         9500 West 179th Street, Tinley Park, IL  60477
         9502 West 179th Street, Tinley Park, IL  60477
         1835 East Guadalupe, Suite 116, Tempe, AZ  85283

LIST OF SUBSIDIARIES OF THE COMPANY:

         Midnight Auto Holdings, Inc.
         Midnight Auto Franchise Corp.
         All Night Auto, Inc.
         All Night Auto Grosse Pointe, Inc.
         All Night Auto Stores, Inc.
         All Night Auto of Normal North, Inc.
         All Night Auto of Aurora, Inc.
         All Night Auto of Joliet, Inc.
         All Night Auto of Fort Wayne, Inc.

                                       17
<PAGE>

                                   SCHEDULE B

A.   LICENSES, PATENTS AND PATENT LICENSES
     --------------------------------------

                                                                Registration or
     PATENT       APPLICATION OR REGISTRATION NO.   COUNTRY     FILING DATE
     ------       -------------------------------   -------     ----------------

B.   TRADEMARKS AND TRADEMARK LICENSES

                                                                Registration or
     SERVICE MARK     2,290,780.                    USA         NOV 9 1999
     ------------     ----------                                ----------------

C.   COPYRIGHTS AND COPYRIGHT LICENSES

                                                                Registration or
     NAME        APPLICATION OR REGISTRATION NO.    COUNTRY     FILING DATE
     ------      -------------------------------    -------     ----------------

D.   TRADE SECRETS AND TRADE SECRET LICENSES
                                                                Registration or
     NAME        APPLICATION OR REGISTRATION NO.    COUNTRY     FILING DATE
     ------      -------------------------------    -------     ----------------

                                       18
<PAGE>

                                   SCHEDULE C

Jurisdictions

                                       19

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