Document:

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                                                                    Exhibit 10.8

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE
IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION
AGREEMENT (AS AMENDED, THE "SUBORDINATION AGREEMENT") DATED AS OF MARCH 30,
2004, AMONG AMERICAN CAPITAL FINANCIAL SERVICES, INC., AMERICAN CAPITAL
STRATEGIES, LTD., CORRPRO COMPANIES, INC., THE OTHER OBLIGORS (AS DEFINED
THEREIN) AND CAPITALSOURCE FINANCE LLC, AS AGENT TO THE SENIOR DEBT (AS DEFINED
THEREIN), AS MORE PARTICULARLY DESCRIBED IN THE SUBORDINATION AGREEMENT, AND
EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY THE
PROVISIONS OF THE SUBORDINATION AGREEMENT.

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (this "Agreement") dated as of March 30, 2004
is between CORRPRO COMPANIES, INC., an Ohio corporation ("Corrpro"), CCFC, Inc.
("CCFC"), OCEAN CITY RESEARCH CORP. ("OCRC"), and CORRPRO INTERNATIONAL, INC.,
f/k/a Corrpro Companies Latin America, Inc., a Delaware corporation ("CCII" and
together with Corrpro, CCFC and, OCRC, individually and collectively, the
"Grantor") and AMERICAN CAPITAL FINANCIAL SERVICES, INC., a Delaware
corporation, in its capacity as administrative agent for the purchasers referred
to below (in such capacity, the "Agent").

                              W I T N E S S E T H:

         WHEREAS, Grantor has entered into a Note and Equity Purchase Agreement
dated as of a date even herewith (as further amended or otherwise modified from
time to time, the "Note and Equity Purchase Agreement") with the direct and
indirect subsidiaries of CCII, various purchasers named therein and the Agent,
pursuant to which such purchasers have agreed to purchase the Notes; and

         WHEREAS, it is a condition precedent to Purchasers buying the Notes
that Grantor enter into a security agreement to secure the obligations of
Grantor under the Note and Equity Purchase Agreement and other Purchase
Documents;

         NOW, THEREFORE, for and in consideration of any loan, advance or other
financial accommodation heretofore or hereafter made to Grantor under or in
connection with the Note and Equity Purchase Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1.       Definitions. When used herein, (a) the terms Account, Account
Debtor, Certificated Security, Chattel Paper, Commercial Tort Claim, Deposit
Account, Document, Electronic Chattel Paper, Equipment, Financial Asset,
Fixtures, Goods, Health-Care-Insurance Receivable, Inventory, Instrument,
Investment Property, Letter-of-Credit Rights, Payment Intangibles, Proceeds,
Security, Security Entitlement, Software, Supporting Obligations and
Uncertificated Security have the respective meanings assigned thereto in the UCC
(as defined below); (b) capitalized terms which are not otherwise defined have
the respective meanings assigned thereto in the Note and Equity Purchase
Agreement; and (c) the following terms have the following meanings (such
definitions to be applicable to both the singular and plural forms of such
terms):

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         Assignee Deposit Account - see Section 4.

         Collateral means, with respect to Grantor, all property and rights of
Grantor in which a security interest is granted hereunder.

         Computer Hardware and Software means, with respect to Grantor, all of
Grantor's rights (including rights as licensee and lessee) with respect to (i)
computer and other electronic data processing hardware, including all integrated
computer systems, central processing units, memory units, display terminals,
printers, computer elements, card readers, tape drives, hard and soft disk
drives, cables, electrical supply hardware, generators, power equalizers,
accessories, peripheral devices and other related computer hardware; (ii) all
software programs designed for use on the computers and electronic data
processing hardware described in clause (i) above, including all operating
system software, utilities and application programs in whatsoever form (source
code and object code in magnetic tape, disk or hard copy format or any other
listings whatsoever); (iii) any firmware associated with any of the foregoing;
and (iv) any documentation for hardware, software and firmware described in
clauses (i), (ii) and (iii) above, including flow charts, logic diagrams,
manuals, specifications, training materials, charts and pseudo codes.

         Derivative Contract means any agreement, whether or not in writing,
relating to any transaction that is a rate swap, basis swap, forward rate
transaction, commodity swap, commodity option, equity or equity index swap or
option bond, note or bill option, interest rate option, forward foreign exchange
transaction, cap, collar or floor transaction, currency swap, cross-currency
rate swap, swaption, currency option or any other, similar transaction
(including any option to enter into any of the foregoing) or any combination of
the foregoing, and, unless context otherwise clearly requires, any master
agreement relating to or governing any or all of the foregoing.

         General Intangibles means, with respect to Grantor, all of Grantor's
"general intangibles" as defined in the UCC and, in any event, includes (without
limitation) all of Grantor's trademarks, trade names, patents, copyrights, trade
secrets, customer lists, inventions, designs, software, software programs, mask
works, goodwill, registrations, licenses, franchises, tax refund claims,
guarantee claims, Payment Intangibles, security interests and rights to
indemnification.

         Intellectual Property means all present and future: trade secrets and
other proprietary information; trademarks, service marks, business names,
Internet domain names, designs, logos, trade dress, slogans, indicia and other
source and/or business identifiers, and the goodwill of the business relating
thereto and all registrations or applications for registrations which have
heretofore been or may hereafter be issued thereon throughout the world;
copyrights (including copyrights for computer programs and software) and
copyright registrations or applications for registrations which have heretofore
been or may hereafter be issued throughout the world and all tangible property
embodying the copyrights; unpatented inventions (whether or not patentable);
patent applications and patents; industrial designs, industrial design
applications and registered industrial designs; license agreements related to
any of the foregoing and income therefrom; books, records, writings, computer
tapes or disks, flow diagrams, specification sheets, source codes, object codes
and other physical manifestations, embodiments or incorporations of any of the
foregoing; the right to sue for all past, present and future infringements of
any of the foregoing; and all common law and other rights throughout the world
in and to all of the foregoing.

         Liabilities means, as to Grantor, all obligations (monetary or
otherwise) of Grantor under the Note and Equity Purchase Agreement, any Note,
any other Purchase Document or any other document or

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instrument executed in connection therewith, in each case howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due.

         Non-Tangible Collateral means, with respect to Grantor, collectively,
Grantor's Accounts and General Intangibles.

         Organizational I.D. Number means, with respect to Grantor, the
organizational identification number assigned to Grantor by the applicable
governmental unit or agency of the jurisdiction of organization for Grantor.

         Purchasers means each Purchaser under and as defined in the Note and
Equity Purchase Agreement.

         Type of Organization means, with respect to Grantor, the kind or type
of entity of Grantor, such as a corporation or limited liability company.

         UCC means the Uniform Commercial Code as in effect in the State of New
York the date of this Agreement, as may be amended or modified from time to
time; provided that, as used in Section 8 hereof, "UCC" shall mean the Uniform
Commercial Code as in effect from time to time in any applicable jurisdiction.

         2.       Grant of Security Interest. As security for the payment of all
Liabilities, each Grantor hereby assigns to the Agent for the benefit of the
Purchasers, and grants to the Agent for the benefit of the Purchasers a
continuing security interest in all of the property of Grantor whether now or
hereafter existing or acquired, regardless of where located including, without
limitation:

         All of Grantor's:

         (a)      Accounts, including Health-Care-Insurance Receivables;

         (b)      Certificated Securities;

         (c)      Chattel Paper, including Electronic Chattel Paper;

         (d)      Computer Hardware and Software and all rights with respect
                  thereto, including, any and all licenses, options, warranties,
                  service contracts, program services, test rights, maintenance
                  rights, support rights, improvement rights, renewal rights and
                  indemnifications, and any substitutions, replacements,
                  additions or model conversions of any of the foregoing;

         (e)      Commercial Tort Claims;

         (f)      Deposit Accounts;

         (g)      Documents;

         (h)      Financial Assets;

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         (i)      General Intangibles;

         (j)      Goods (including all of its Equipment, Fixtures and
Inventory), and all embedded software, accessions, additions, attachments,
improvements, substitutions and replacements thereto and therefor;

         (k)      Instruments;

         (l)      Intellectual Property;

         (m)      Investment Property;

         (n)      Letter-of-Credit Rights

         (o)      money (of every jurisdiction whatsoever);

         (p)      Security Entitlements;

         (q)      Supporting Obligations;

         (r)      Uncertificated Securities; and

         (s)      to the extent not included in the foregoing, other personal
                  property of any kind or description;

together with all books, records, writings, data bases, information and other
property relating to, used or useful in connection with, or evidencing,
embodying, incorporating or referring to any of the foregoing, and all Proceeds,
products, offspring, rents, issues, profits and returns of and from any of the
foregoing; provided that to the extent that the provisions of any lease or
license of Computer Hardware and Software or Intellectual Property expressly
prohibit (which prohibition is enforceable under applicable law) the assignment
thereof, and the grant of a security interest therein, the Agent will not
enforce its security interest (other than in respect of the Proceeds thereof)
for so long as such prohibition continues, it being understood that upon request
of the Agent, Grantor will in good faith use reasonable efforts to obtain
consent for the creation of a security interest in favor of the Agent (and to
Agent's enforcement of such security interest) in Grantor's rights under such
lease or license.

         3.       Warranties. Each Grantor warrants that: (a) no financing
statement (other than any which may have been filed on behalf of the Agent or in
connection with liens expressly permitted by the Note and Equity Purchase
Agreement ("Permitted Liens")) covering any of the Collateral is on file in any
public office; (b) Grantor is the lawful owner of all Collateral, free of all
liens, claims, security interests and encumbrances whatsoever, other than the
security interest hereunder and Permitted Liens, with full power and authority
to execute this Agreement and perform Grantor's obligations hereunder, and to
subject the Collateral to the security interest hereunder; (c) all information
with respect to Collateral and Account Debtors set forth in any schedule,
certificate or other writing at any time heretofore or hereafter furnished by
Grantor to the Agent or any Purchaser is and will be true and correct in all
material respects as of the date furnished; (d) Grantor's chief executive office
and principal place of business are as set forth on Schedule I hereto (and
Grantor has not maintained its chief executive office and principal place of
business at any other location at any time after five (5) years prior to the
date of this Agreement), and each other location where Grantor maintains a place
of business is also set forth on Schedule I hereto; (e) Grantor is a corporation
duly organized, validly existing and in good standing under the laws of the

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state set forth on Schedule II hereto and is a Type of Organization and its
Organizational I.D. Number are as set forth on Schedule II; (f) except as set
forth on Schedule III hereto, Grantor is not now known and during the five (5)
years preceding the date hereof has not previously been known by any trade name;
(g) Grantor's exact legal name is as set forth on the signature pages of this
Agreement, and except as set forth on Schedule III hereto, during the five (5)
years preceding the date hereof Grantor has not been known by any different
legal name nor has Grantor been the subject of any merger or other corporate
reorganization; (h) Schedule IV hereto contains a complete listing of all of
Grantor's Intellectual Property which is subject to registration statutes; (i)
the execution and delivery of this Agreement and the performance by Grantor of
its obligations hereunder are within Grantor's corporate powers, have been duly
authorized by all necessary corporate action, have received all necessary
governmental approval (if any shall be required), and do not and will not
contravene or conflict with any provision of law or of the certificate of
incorporation or by-laws of Grantor or of any material agreement, indenture,
instrument or other document, or any material judgment, order or decree, which
is binding upon Grantor; (j) this Agreement is a legal, valid and binding
obligation of Grantor, enforceable in accordance with its terms, except that the
enforceability of this Agreement may be limited by bankruptcy, insolvency,
fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other
similar laws now or hereafter in effect relating to creditors' rights generally
and by general principles of equity (regardless of whether enforcement is sought
in a proceeding in equity or at law); (k) Grantor is in compliance with the
requirements of all applicable laws (including the provisions of the Fair Labor
Standards Act), rules, regulations and orders of every governmental authority,
the non-compliance with which would reasonably be expected to result in a
Material Adverse Effect; (l) Schedule V hereto contains a complete listing of
all of Grantor's Instruments, Investment Property, Letter-of-Credit Rights,
Chattel Paper, Documents and Commercial Tort Claims; (m) except as set forth on
Schedule VI hereto, Grantor has no tangible Collateral located outside of the
United States; (n) Schedule VII hereto contains a complete listing of Grantor's
tangible Collateral located with any bailee, warehousemen or other third
parties; (o) Schedule VIII hereto contains a complete listing of all of
Grantor's Collateral which is subject to certificate of title statutes; and (p)
Schedule IX hereto contains a complete listing of all of Grantor's Deposit
Accounts and other bank accounts, including locations and applicable account
numbers.

         4.       Collections, etc. Until such time as the Agent shall notify
Grantor of the revocation of such power and authority, Grantor (a) may, in the
ordinary course of its business, at its own expense, sell, lease or furnish
under contracts of service any of the Inventory normally held by Grantor for
such purpose, use and consume, in the ordinary course of its business, any raw
materials, work in process or materials normally held by Grantor for such
purpose, and use, in the ordinary course of its business (but subject to the
terms of the Note and Equity Purchase Agreement), the cash proceeds of
Collateral and other money which constitutes Collateral, (b) will, at its own
expense, endeavor to collect, as and when due, all amounts due under any of the
Non-Tangible Collateral, including the taking of such action with respect to
such collection as the Agent may reasonably request or, in the absence of such
request, as Grantor may deem advisable, and (c) may grant, in the ordinary
course of business, to any party obligated on any of the Non-Tangible
Collateral, any rebate, refund or allowance to which such party may be lawfully
entitled, and may accept, in connection therewith, the return of Goods, the sale
or lease of which shall have given rise to such Non-Tangible Collateral. The
Agent, however, may, following the occurrence and during the continuance of an
Event of Default, whether before or after any revocation of such power and
authority or the maturity of any of the Liabilities, notify an Account Debtor or
other Person obligated on Collateral to make payment or otherwise render
performance to or for the benefit of the Agent and enforce, by suit or otherwise
the obligations of an Account Debtor or other Person obligated on Collateral and
exercise the rights of Grantor with respect to the obligation of the Account
Debtor or other Person obligated on Collateral to make payment or otherwise
render performance to Grantor, and with respect to any property that secures the
obligations of the Account Debtor or other Person obligated on the Collateral.
In connection with exercise of such rights and remedies, the Agent may
surrender, release or exchange all or any part thereof, or compromise or extend
or renew for any

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period (whether or not longer than the original period) any indebtedness
thereunder or evidenced thereby. Upon the request of the Agent, following the
occurrence and during the continuance of an Event of Default, Grantor will, at
its own expense, notify any or all parties obligated on any of the Non-Tangible
Collateral to make payment to the Agent of any amounts due or to become due
thereunder.

         Upon request by the Agent, following the occurrence and during the
continuance of an Event of Default, Grantor will forthwith, upon receipt,
transmit and deliver to the Agent, in the form received, all cash, checks,
drafts and other instruments or writings for the payment of money (properly
endorsed, where required, so that such items may be collected by the Agent)
which may be received by Grantor at any time in full or partial payment or
otherwise as proceeds of any of the Collateral. Except as the Agent may
otherwise consent in writing, any such items which may be so received by Grantor
will not be commingled with any other of its funds or property, but will be held
separate and apart from its own funds or property and upon express trust for the
Agent until delivery is made to the Agent. Grantor will comply with the terms
and conditions of any consent given by the Agent pursuant to the foregoing
sentence.

         Following the occurrence and during the continuance of an Event of
Default, all items or amounts which are delivered by Grantor to the Agent on
account of partial or full payment or otherwise as proceeds of any of the
Collateral shall be deposited to the credit of a deposit account (each an
"Assignee Deposit Account") of Grantor with a financial institution selected by
the Agent) over which the Agent has sole dominion and control, as security for
payment of the Liabilities. Grantor shall not have any right to withdraw any
funds deposited in the applicable Assignee Deposit Account. The Agent may, from
time to time, in its discretion, and shall upon request of Grantor from time to
time, apply all or any of the then balance, representing collected funds, in the
Assignee Deposit Account toward payment of the Liabilities, whether or not then
due, in such order of application as the Agent may determine, and the Agent may,
from time to time, in its discretion, release all or any of such balance to
Grantor.

         The Agent (or any designee of the Agent) is authorized to endorse, in
the name of Grantor, any item, howsoever received by the Agent, representing any
payment on or other Proceeds of any of the Collateral.

         5.       Certificates, Schedules and Reports. Grantor will from time to
time, as the Agent may request, deliver to the Agent such schedules,
certificates and reports respecting all or any of the Collateral at the time
subject to the security interest hereunder, and the items or amounts received by
Grantor in full or partial payment of any of the Collateral, as the Agent may
reasonably request. Any such schedule, certificate or report shall be executed
by a duly authorized officer of Grantor and shall be in such form and detail as
the Agent may reasonably specify. Grantor shall immediately notify the Agent of
the occurrence of any event causing any loss or depreciation in the value of its
Inventory or other Goods which is material to Grantor and its Subsidiaries taken
as a whole, and such notice shall specify the amount of such loss or
depreciation.

         6.       Agreements of Grantor. Grantor (a) will, at the Agent's
request, at any time and from time to time, execute and deliver to the Agent
such financing statements, amendments and other documents and do such acts as
the Agent deems reasonably necessary in order to establish and maintain valid,
attached and perfected security interests in the Collateral in favor of the
Purchasers, free and clear of all Liens and claims and rights of third parties
whatsoever except Permitted Liens. Grantor hereby irrevocably authorizes the
Agent at any time, and from time to time, to file in any jurisdiction any
initial financing statements and amendments thereto that (i) indicate the
Collateral (x) as all assets of Grantor or words of similar effect, regardless
of whether any particular asset comprised in the Collateral falls within the
scope of Article 9 of the UCC of the jurisdiction wherein such financing
statement or amendment is

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filed, or (y) as being of an equal or lesser scope or within greater detail, and
(ii) contain any other information required by Section 5 of Article 9 of the UCC
of the jurisdiction wherein such financing statement or amendment is filed
regarding the sufficiency or filing office acceptance of any financing statement
or amendment, including (x) whether Grantor is an organization, the Type of
Organization the Organization ID Number issued to Grantor and (y) in the case of
a financing statement filed as a fixture filing or indicating Collateral to be
extracted collateral or timber to be cut, a sufficient description of real
property to which the Collateral relates, Grantor further ratifies and affirms
its authorization for any financing statements and/or amendments thereto, filed
by the Agent in any jurisdiction prior to the date of this Agreement, (b) except
for movement of equipment, inventory and related assets for performance of
services in the ordinary course of business, will keep all its Inventory at, and
will not maintain any place of business at any location other than, its
address(es) shown on Schedule I hereto or at such other addresses of which
Grantor shall have given the Agent not less than 30 days' prior written notice,
(c) will keep its records concerning the Non-Tangible Collateral in such a
manner as will enable the Agent or its designees to determine at any time the
status of the Non-Tangible Collateral; (d) will furnish the Agent such
information concerning Grantor, the Collateral and the Accounts as the Agent may
from time to time reasonably request; (e) will keep, and cause each Subsidiary
to keep, its books and records in accordance with sound business practices
sufficient to allow the preparation of financial statements in accordance with
GAAP; permit, and cause each Subsidiary to permit, any Purchaser or the Agent or
any representative thereof to inspect the properties and operations of Grantor's
or such Subsidiary; and permit, and cause each Subsidiary to permit, at any
reasonable time and with reasonable notice, any Purchaser or the Agent or any
representative thereof to visit any or all of its offices, to discuss its
financial matters with its officers, and to examine (and, at the expense of
Grantor or the applicable Subsidiary, photocopy extracts from) any of its books
or other records; and permit, and cause each Subsidiary to permit, the Agent and
its representatives to inspect the Inventory and other tangible assets of
Grantor or such Subsidiary, to conduct environmental reviews and inspections of
any real property encumbered by a Mortgage in accordance with the terms of any
Mortgage, to perform appraisals of the machinery, equipment or other collateral
of Grantor or such Subsidiary, and to inspect, audit, check and make copies of
and extracts from the books, records, computer data, computer programs,
journals, orders, receipts, correspondence and other data relating to Inventory,
Accounts Receivable and any other collateral including, without limitation,
semi-annual collateral audits (all such inspections or audits by the Agent shall
be at Grantor's expense, provided that so long as no Default or Event of Default
exists, Grantor shall not be required to reimburse the Agent for appraisals and
inspections more frequently than semi-annually); (f) will, upon request of the
Agent, stamp on its records concerning the Collateral, and add on all Chattel
Paper and Instruments constituting a portion of the Collateral, a notation, in
form satisfactory to the Agent, of the security interest of the Agent hereunder;
(g) except for the sale or lease of Inventory in the ordinary course of its
business and sales of Equipment which is no longer useful in its business or
which is being replaced by similar Equipment, will not sell, lease, assign or
create or permit to exist any Lien on any Collateral other than Permitted Liens;
(h) without limiting the provisions of Section 7.1(c) of the Note and Equity
Purchase Agreement, will at all times keep all of its Inventory and other Goods
insured under policies maintained with reputable, financially sound insurance
companies against loss, damage, theft and other risks to such extent as is
customarily maintained by companies similarly situated at commercially
reasonable levels for businesses engaged in similar activities or lines of
business or owning similar assets or properties, and cause all such policies to
provide that loss thereunder shall be payable to the Agent as its interest may
appear (it being understood that (A) so long as no Event of Default shall have
occurred and be continuing, the Agent shall deliver any proceeds of such
insurance which may be received by it to Grantor and (B) whenever a Default
shall be existing, the Agent may apply any proceeds of such insurance which may
be received by it toward payment of the Liabilities, whether or not due, in such
order of application as provided in the Note and Equity Purchase Agreement, and
such policies or certificates thereof shall, if the Agent so requests, be
deposited with or furnished to the Agent; (i) will take such actions as are
reasonably necessary to keep its Goods in good repair and condition; (j) will
take such actions as are reasonably necessary to keep its Equipment in good
repair and

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condition and in good working order, ordinary wear and tear excepted; (k) will
promptly pay when due all license fees, registration fees, taxes, assessments
and other charges which may be levied upon or assessed against the ownership,
operation, possession, maintenance or use of its Equipment and other Goods; (l)
will, upon request of the Agent, (i) cause to be noted on the applicable
certificate, in the event any of its Equipment is covered by a certificate of
title, the security interest of the Agent in the Equipment covered thereby, and
(ii) deliver all such certificates to the Agent or its designees; (m) will take
all steps reasonably necessary to protect, preserve and maintain all of its
rights in the Collateral; (n) except (i) as listed on Schedule VI, and (ii) for
movement of equipment, inventory, and related assets for performance of services
in the ordinary course of business, will keep all of the tangible Collateral in
the United States; and (o) promptly notify the Agent in writing upon acquiring
or otherwise obtaining any Collateral after the date hereof consisting of
Deposit Accounts, Investment Property, Letter-of-Credit Rights or Electronic
Chattel Paper and, upon the request of the Agent, will promptly execute such
other documents, and do such other acts or things deemed appropriate by the
Agent to deliver to Senior Lender as agent for the Agent, subject to the terms
of the Subordination Agreement, control with respect to such Collateral; (p)
promptly notify the Agent in writing upon acquiring or otherwise obtaining any
Collateral after the date hereof consisting of Documents or Instruments and,
upon the request of the Agent, will promptly execute such other documents, and
do such other acts or things deemed appropriate by the Agent to deliver to the
Senior Lender as agent for the Agent, subject to the terms of the Subordination
Agreement, possession of such Documents which are negotiable and Instruments,
and, with respect to nonnegotiable Documents, to have such nonnegotiable
Documents issued in the name of the Agent; (q) with respect to Collateral in the
possession of a third party, other than Certificated Securities and Goods
covered by a Document, use its best efforts to obtain an acknowledgment from the
third party that it is holding the Collateral for benefit of the Agent; (r)
promptly notify the Agent in writing upon incurring or otherwise obtaining a
Commercial Tort Claim after the date hereof against any third party, and, upon
the request of the Agent, will promptly enter into an amendment to this
Agreement, and do such other acts or things deemed appropriate by the Agent to
give the Agent a security interest in such Commercial Tort Claim; (s) further
agrees to take other action reasonably requested by the Agent to insure the
attachment, perfection and priority of, and the ability of the Agent to enforce,
the security interests in any and all of the Collateral including, without
limitation, (i) executing, delivering and, where appropriate, filing financing
statements and amendments relating thereto under the UCC, to the extent, if any,
that Grantor's signature thereon is required therefor, (ii) complying with any
provision of any statute, regulation or treaty of the United States as to any
Collateral if compliance with such provision is a condition to attachment,
perfection or priority of, or ability of the Agent to enforce, the security
interests in such Collateral, (iii) obtaining governmental and other third party
consents and approvals, including without limitation any consent of any
licensor, lessor or other Person obligated on Collateral, (iv) using its best
efforts to obtain waivers from mortgagees and landlords in form and substance
satisfactory to the Agent, and (v) taking all actions required by the UCC in
effect from time to time or by other law, as applicable in any relevant UCC
jurisdiction, or by other law as applicable in any foreign jurisdiction, (t) not
change its state of incorporation or organization or Type of Organization; and
(u) not change its legal name without providing the Agent with at least 30 days'
prior written notice.

         Any expenses incurred in protecting, preserving or maintaining any
Collateral shall be borne by Grantor. Except as otherwise expressly set forth in
Section 2, following the occurrence and during the continuance of an Event of
Default, the Agent shall have the right to bring suit to enforce any or all of
the Intellectual Property or licenses thereunder, in which event Grantor shall
at the request of the Agent do any and all lawful acts and execute any and all
proper documents required by the Agent in aid of such enforcement and Grantor
shall promptly, upon demand, reimburse and indemnify the Agent for all costs and
expenses incurred by the Agent in the exercise of its rights under this Section
6. Notwithstanding the foregoing, the Agent shall have no obligation or
liability regarding the Collateral or any thereof by reason of, or arising out
of, this Agreement.

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         To the extent Grantor uses any of the proceeds of the Notes to purchase
Collateral, Grantor's repayment of the Notes shall apply on a
"first-in-first-out" basis so that the portion of the Notes used to purchase a
particular item of Collateral shall be paid in the chronological order Grantor
purchased the Collateral.

         7.       Default and Remedies upon a Default. (a) If an Event of
Default shall have occurred and be continuing, the Agent may exercise (or cause
its sub-agents to exercise) any or all of the remedies available to it (or to
such sub-agents) under this Agreement.

         (b)      Without limiting the generality of the foregoing, if an Event
of Default shall have occurred and be continuing, the Agent may exercise on
behalf of the Purchasers all the rights of a secured party under the UCC
(whether or not in effect in the jurisdiction where such rights are exercised)
with respect to any Collateral and, in addition, the Agent may, without being
required to give any notice, except as herein provided or as may be required by
mandatory provisions of law, withdraw all cash held in the Assignee Deposit
Account and apply such cash as provided in Section 8 and, if there shall be no
such cash or if such cash shall be insufficient to pay all the Liabilities in
full, sell, lease, license or otherwise dispose of the Collateral or any part
thereof. Notice of any such sale or other disposition shall be given to Grantor
as required in Section 9.

         8.       Application of Proceeds. (a) If an Event of Default shall have
occurred and be continuing, the Agent may apply the proceeds of any sale or
other disposition of all or any part of the Collateral, in the following order
or priorities (subject to the provisions of the Subordination Agreement):

                  first, to pay the expenses of such sale or other disposition,
         including reasonable compensation to agents of and counsel for the
         Agent, and all expenses, liabilities and advances incurred or made by
         the Agent in connection with the collateral documents, and any other
         amounts then due and payable to the Agent pursuant to the Purchase
         Documents;

                  second, to pay the unpaid principal of the Liabilities
         ratably, until payment in full of the principal of all Liabilities
         shall have been made (or so provided for);

                  third, to pay ratably all interest (including post-petition
         interest) and all facility and other fees payable under the Purchase
         Documents, until payment in full of all such interest and fees shall
         have been made;

                  fourth, to pay all other Liabilities ratably, until payment in
         full of all such other Liabilities shall have been made (or so provided
         for); and

                  finally, to pay to Grantor, or as a court of competent
         jurisdiction may direct, any surplus then remaining from the proceeds
         of the Collateral owned by it.

         The Agent may make such distributions hereunder in cash or in kind or,
on a ratable basis, in any combination thereof.

         (b)      All distributions made by the Agent pursuant to this Section
shall be final (except in the event of manifest error) and the Agent shall have
no duty to inquire as to the application by any Purchaser or any amount
distributed to it.

                                       9

<PAGE>

         9.       Authority to Administer Collateral. Grantor irrevocably
appoints the Agent its true and lawful attorney with full power of substitution,
in the name of Grantor, any Purchaser or otherwise, for the sole use and benefit
of the Purchaser, but at Grantor's expense, to the extent permitted by law to
exercise, at any time and from time to time while an Event of Default shall have
occurred and be continuing, all or any of the following powers with respect to
all or any of Grantor's Collateral (to the extent necessary to pay the
Liabilities in full):

         (a)      to demand, sue for, collect, receive and give acquittance for
any and all monies due or to become due upon or by virtue thereof;

         (b)      to settle, compromise, compound, prosecute or defend any
action or proceeding with respect thereto;

         (c)      to sell, lease, license or otherwise dispose of the same or
the Proceeds thereof, as fully and effectually as if the Agent were the absolute
owner thereof, and

         (d)      to extend the time of payment of any or all thereof and to
make any allowance or other adjustment with reference thereto;

provided that, except in the case of Collateral that is perishable or threatens
to decline speedily in value or is of a type customarily sold on a recognized
market, the Agent will give Grantor at least ten (10) days' prior written notice
of the time and place of any public sale thereof or the time after which any
private sale or other intended disposition thereof will be made.

         10.      Limitation on Duty in Respect of Collateral. Beyond the
exercise of reasonable care in the custody and preservation thereof, the Agent
will have no duty as to any Collateral in its possession or control or in the
possession or control of any sub-agent or bailee or any income therefrom or as
to the preservation of rights against prior parties or any other rights
pertaining thereto. The Agent will be deemed to have exercised reasonable care
in the custody and preservation of the Collateral in its possession or control
if such Collateral is accorded treatment substantially equal to that which it
accords its own property, and will not be liable or responsible for any loss or
damage to any Collateral, or for any diminution in the value thereof, by reason
of any act or omission of any sub-agent or bailee selected by the Agent in good
faith or by reason of any act or omission by the Agent pursuant to instructions
form the Agent, except to the extent that such liability arises from the Agent's
gross negligence or willful misconduct.

         To the extent that applicable law imposes duties on the Agent to
exercise remedies in a commercially reasonable manner, Grantor acknowledges and
agrees that it is not commercially unreasonable for the Agent (a) to fail to
incur expenses reasonably deemed significant by the Agent to prepare Collateral
for disposition or otherwise to complete raw material or work-in-process into
finished goods or other finished products for disposition, (b) to exercise
collection remedies against Account Debtors and other Persons obligated on
Collateral directly or through the use of collection agencies and other
collection specialists, (c) to advertise dispositions of Collateral through
publications or media of general circulation, whether or not the Collateral is
of a specialized nature, (d) to contact other Persons, whether or not in the
same business as Grantor, for expressions of interest in acquiring all or any
portion of the Collateral, (e) to hire one or more professional auctioneers to
assist in the disposition of Collateral, whether or not the collateral is of a
specialized nature, (f) to dispose of Collateral by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral
or that have the reasonable capability of doing so, or that match buyers and
sellers of assets, (g) to dispose of assets in wholesale rather than retail
markets, (h) to disclaim disposition warranties, including, without limitation,

                                       10

<PAGE>

any warranties of title, (i) to purchase insurance of credit enhancements to
insure the Agent against risks of loss, collection or disposition of Collateral,
or to provide to the Agent a guaranteed return from the collection or
disposition of Collateral, or (j) to the extent deemed appropriate by the Agent,
to obtain the services of other brokers, investment bankers, consultants and
other professionals to assist the Agent in the collection or disposition of any
of the Collateral. Grantor acknowledges that the purpose of this Section is to
provide non-exhaustive indications of what actions or omissions by the Agent
would not be commercially unreasonable in the Agent's exercise of remedies
against the Collateral and that other actions or omissions by the Agent shall
not be deemed commercially unreasonable solely on account of not being indicated
in this Section. Without limitation upon the foregoing, nothing contained in
this Section shall be construed to grant any right to Grantor or to impose any
duties on the Agent that would not have been granted or imposed by this
Agreement or by applicable law in the absence of this Section.

         12.      General. (a) All notices hereunder shall be in writing
(including facsimile or e-mail transmission) and shall be sent to the applicable
party at its address shown on Schedule I or at such other address as such party
may, by written notice received by the other parties, have designated as its
address for such purpose. Notices sent by facsimile and e-mail transmission
shall be deemed to have been given upon receipt of a confirmation that such
notice was successfully transmitted; notices sent by mail shall be deemed to
have been given three Business Days after the date when sent by registered or
certified mail, postage prepaid; and notices sent by hand delivery or overnight
courier service shall be deemed to have been given when received.

         (b)      Grantor agrees to pay all expenses, including reasonable
attorney's fees and charges (including time charges of attorneys who are
employees of the Agent or any Purchaser) paid or incurred by the Agent or any
Purchaser in endeavoring to collect the Liabilities of Grantor, or any part
thereof, and in enforcing this Agreement against Grantor, and such obligations
will themselves be Liabilities.

         (c)      No delay on the part of the Agent in the exercise of any right
or remedy shall operate as a waiver thereof, and no single or partial exercise
by the Agent of any right or remedy shall preclude other or further exercise
thereof or the exercise of any other right or remedy.

         (d)      This Security Agreement shall remain in full force and effect
until all Liabilities have been paid in full. If at any time all or any part of
any payment theretofore applied by the Agent or any Purchaser to any of the
Liabilities is or must be rescinded or returned by the Agent or such Purchaser
for any reason whatsoever (including the insolvency, bankruptcy or
reorganization of Grantor), such Liabilities shall, for the purposes of this
Agreement, to the extent that such payment is or must be rescinded or returned,
be deemed to have continued in existence, notwithstanding such application by
the Agent or such Purchaser, and this Agreement shall continue to be effective
or be reinstated, as the case may be, as to such Liabilities, all as though such
application by the Agent or such Purchaser had not been made.

         (e)      This Agreement shall be construed in accordance with and
governed by the laws of the State of New York applicable to contracts made and
to be performed entirely within such State. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be prohibited
by or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

         (f)      The rights and privileges of the Agent hereunder shall inure
to the benefit of its successors and assigns.

                                       11

<PAGE>

         (g)      This Agreement may be executed in any number of counterparts
and by the different parties hereto on separate counterparts, and each such
counterpart shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement. At any time after the date of
this Agreement, one or more additional Persons may become parties hereto by
executing and delivering to the Agent a counterpart of this Agreement together
with supplements to the Schedules hereto setting forth all relevant information
with respect to such party as of the date of such delivery. Immediately upon
such execution and delivery (and without any further action), each such
additional Person will become a party to, and will be bound by all the terms of,
this Agreement.

         (h)      ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OTHER PURCHASE DOCUMENT, SHALL BE BROUGHT
AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF OHIO OR IN THE UNITED
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO; PROVIDED THAT ANY SUIT
SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT
THE AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR
OTHER PROPERTY MAY BE FOUND. PLEDGOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO
THE JURISDICTION OF THE COURTS OF THE STATE OF OHIO AND OF THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO FOR THE PURPOSE OF ANY SUCH
LITIGATION AS SET FORTH ABOVE. PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, TO THE ADDRESS SET FORTH
ON SCHEDULE I HERETO (OR SUCH OTHER ADDRESS AS IT SHALL HAVE SPECIFIED IN
WRITING TO THE AGENT AS ITS ADDRESS FOR NOTICES HEREUNDER) OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF [OHIO]. PLEDGOR HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

         (i)      EACH PLEDGOR, THE AGENT AND (BY ACCEPTING THE BENEFITS HEREOF)
EACH PURCHASER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY
OTHER PURCHASE DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH
ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12

<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed as of the day
and year first above written.

                                     PLEDGOR:

                                     CORRPRO COMPANIES, INC.

                                     By:  /s/ John D. Moran
                                        ----------------------------------------
                                     Title:  Senior VP/Secretary

                                     CCFC, INC.

                                     By:  /s/ John D. Moran
                                        ----------------------------------------
                                     Title:  Secretary

                                     OCEAN CITY RESEARCH CORP.

                                     By:  /s/ John D. Moran
                                        ----------------------------------------
                                     Title:  Asst. Secretary

                                     CORRPRO INTERNATIONAL, INC.

                                     By:  /s/ John D. Moran
                                        ----------------------------------------
                                     Title:  Secretary

                                     AGENT:

                                     AMERICAN CAPITAL FINANCIAL SERVICES, INC.,
                                     as Agent

                                     By:  /s/ J MacDowell
                                        ----------------------------------------
                                     Title:  Principal<PAGE>

                                                                    Exhibit 10.9

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE
IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION
AGREEMENT (AS AMENDED, THE "SUBORDINATION AGREEMENT") DATED AS OF MARCH 30,
2004, AMONG AMERICAN CAPITAL FINANCIAL SERVICES, INC., AMERICAN CAPITAL
STRATEGIES, LTD., CORRPRO COMPANIES, INC., THE OTHER OBLIGORS (AS DEFINED
THEREIN) AND CAPITALSOURCE FINANCE LLC, AS AGENT, TO THE SENIOR DEBT (AS DEFINED
THEREIN), AS MORE PARTICULARLY DESCRIBED IN THE SUBORDINATION AGREEMENT, AND
EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY THE
PROVISIONS OF THE SUBORDINATION AGREEMENT.

                               SECURITY AGREEMENT

                  THIS SECURITY AGREEMENT (this "AGREEMENT"), dated as of March
30, 2004, is between COMMONWEALTH SEAGER HOLDINGS LTD., a corporation
amalgamated under the laws of the Province of Alberta, Canada, CORRPRO CANADA,
INC., a corporation amalgamated under the laws of the Province of Alberta,
Canada, and BORZA INSPECTIONS LTD., a corporation amalgamated under the laws of
the Province of Alberta, Canada (collectively and individually the "DEBTOR"),
and AMERICAN CAPITAL FINANCIAL SERVICES, INC., a Delaware corporation, or its
designated affiliate (the "SECURED PARTY"), as administrative agent for the
benefit of the Purchasers (as such term is defined in the Purchase Agreement
described below) (in such capacity, the "SECURED PARTY").

                              W I T N E S S E T H:

                  WHEREAS, Debtor has entered into that certain Note and Equity
Purchase Agreement of even date herewith (the same, as it may be amended,
restated, modified or supplemented and in effect from time to time, being herein
referred to as the "PURCHASE AGREEMENT") with Secured Party, as administrative
agent for the benefit of all Purchasers, providing for, inter alia, the sale to
the Purchasers of Notes by the Debtor and by CORRPRO COMPANIES, INC., an Ohio
corporation ("PARENT"), CCFC, INC., a Nevada corporation, and OCEAN CITY
RESEARCH CORP., a New Jersey corporation (collectively the "US LOAN PARTIES"),
on the terms and conditions set forth therein; and

                  WHEREAS, the corporations forming the Debtor are affiliated
entities, and each will receive direct or indirect economic benefits from the
Purchasers pursuant to the Purchase Agreement;

                  AND WHEREAS the Debtor has agreed, jointly and severally, as
an obligor, to provide security for their obligations under and pursuant to the
Purchase Agreement and the Notes, and accordingly the Debtor has agreed to
pledge and grant a security interest in the Collateral (as such term is
hereinafter defined) as security for those obligations under and pursuant to the
Purchase Agreement and the Notes (the "OBLIGATIONS").

                  NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

         SECTION 1.        DEFINITIONS. Capitalized terms used herein without
definition and defined in the Purchase Agreement are used herein as defined
therein. In addition, as used herein:

<PAGE>

         "ACCOUNT DEBTOR" means the obligor pursuant to any account.

         "ACCOUNTS" means any "account," as such term is defined in the PPSA
         and, in any event shall include the unpaid portion of the obligation of
         a customer.

         "SECURITY" means any "security", as such term is defined in the PPSA.

         "CHATTEL PAPER" means any "chattel paper," as such term is defined in
         the PPSA.

         "COLLATERAL" shall have the meaning ascribed thereto in Section 3
         hereof.

         "CONTRACTS" means all contracts, undertakings, or other agreements
         (other than rights evidenced by Chattel Paper, Documents or
         Instruments) in or under which a Debtor may now or hereafter have any
         right, title or interest, including, without limitation, with respect
         to an Account, any agreement relating to the terms of payment or the
         terms of performance thereof.

         "COPYRIGHTS" means any copyrights, rights and interests in copyrights,
         works protectable by copyrights, copyright registrations and copyright
         applications, and all renewals of any of the foregoing, all income,
         royalties, damages and payments now and hereafter due and/or payable
         under or with respect to any of the foregoing, including, without
         limitation, damages and payments for past, present and future
         infringements of any of the foregoing and the right to sue for past,
         present and future infringements of any of the foregoing.

         "DOCUMENTS" means any documents, and shall include, without limitation,
         all documents of title, bills of lading or other receipts evidencing or
         representing Inventory or Equipment.

         "EQUIPMENT" means any "equipment," as such term is defined in the PPSA.

         "FIXTURES" means assets which are affixed to real property in such a
         manner as to, pursuant to applicable law, be considered a fixture and
         form part of the real estate.

         "GOODS" means any goods as such term is defined in the PPSA, including,
         without limitation, Equipment, Fixtures and embedded software to the
         extent included in any of the foregoing.

         "INSTRUMENTS" means any instrument as such term is defined in the PPSA,
         and shall include, without limitation, promissory notes, drafts, bills
         of exchange, trade acceptances, lender letters of credit and other
         letters of credit, letter-of-credit rights and chattel paper.

         "INTANGIBLES" means any intangibles, as such term is defined in the
         PPSA, and, in any event, shall include, without limitation, payment
         intangibles, software, and all right, title and interest in or under
         all Contracts, models, drawings, materials and records, claims,
         literary rights, goodwill, rights of performance, copyrights,
         trademarks, patents, warranties, rights under insurance policies and
         rights of indemnification.

         "INVENTORY" means any inventory, as such term is defined in the PPSA
         and, in any event, shall include, without limitation, all "Inventory"
         as such term is defined in the Purchase Agreement.

         "LIABILITIES" shall mean, collectively, the Obligations and all
         obligations, liabilities and Indebtedness of Debtor under or in respect
         of this Agreement and the other Purchase Documents.

                                       2

<PAGE>

         "MOTOR VEHICLES" means motor vehicles, tractors, trailers and other
         like property, whether or not the title thereto is governed by a
         certificate of title or ownership.

         "PATENTS" means any patents and patent applications, including, without
         limitation, the inventions and improvements described and claimed
         therein, all patentable inventions, and the reissues, divisions,
         continuations, renewals, extensions and continuations-in-part of any of
         the foregoing, all of the goodwill of the business connected with the
         use of, and symbolized by all of the foregoing, and all income,
         royalties, damages and payments now or hereafter due and/or payable
         under or with respect to any of the foregoing, including, without
         limitation, damages and payments for past, present and future
         infringements of any of the foregoing and the right to sue for past,
         present and future infringements of any of the foregoing.

         "PPSA" shall mean the Personal Property Security Act (Alberta) as in
         effect from time to time.

         "PROCEEDS" means proceeds, as such term is defined in the PPSA and, in
         any event, includes, without limitation, (a) any and all proceeds of
         any insurance, indemnity, warranty or guaranty payable with respect to
         any of the Collateral, (b) any and all payments (in any form
         whatsoever) made or due and payable from time to time in connection
         with any requisition, confiscation, condemnation, seizure or forfeiture
         of all or any part of the Collateral by any governmental body,
         authority, bureau or agency (or any Person acting under color of
         governmental authority), and (c) any and all other amounts from time to
         time paid or payable under, in respect of or in connection with any of
         the Collateral.

         "RECORD" shall mean a record relating to an Intangible or Account.

         "REPRESENTATIVE" means any Person acting as agent, representative or
         trustee on behalf of Secured Party from time to time.

         "SOFTWARE" means all software as such term is understood in the
         ordinary course, now owned or hereafter acquired by a Debtor, other
         than software embedded in any category of Goods, including, without
         limitation, all computer programs and all supporting information
         provided in connection with a transaction related to any program.

         "TRADEMARKS" means any trademarks, trade names, corporate names,
         company names, business names, fictitious business names, trade styles,
         service marks, logos, other business identifiers, prints and labels on
         which any of the foregoing have appeared or appear, all registrations
         and recordings thereof, and all applications in connection therewith,
         including, without limitation, the trademarks and applications listed
         in Schedule III attached hereto and renewals thereof, all of the
         goodwill of the business connected with the use of, and symbolized by
         each of the foregoing, and all income, royalties, damages and payments
         now or hereafter due and/or payable under or with respect to any of the
         foregoing, including, without limitation, damages and payments for
         past, present and future infringements of any of the foregoing and the
         right to sue for past, present and future infringements of any of the
         foregoing.

         "UNIFORM COMMERCIAL CODE" shall mean the Uniform Commercial Code of any
         applicable state where registration is required to perfect a security
         interest in the Collateral.

                                       3

<PAGE>

         SECTION 2.        REPRESENTATIONS, WARRANTIES AND COVENANTS OF DEBTORS.
After giving effect to the transactions contemplated under the Purchase
Documents, Debtor represents and warrants to, and covenants with, Secured Party,
for the benefit of Secured Party and the Purchasers, as follows:

         (a)      Debtor has full rights to transfer the Collateral in which it
                  purports to grant a security interest pursuant to Section 3
                  hereof (subject, with respect to after-acquired Collateral, to
                  Debtor acquiring an interest in same) and grant to Secured
                  Party, for the benefit of Secured Party and the Purchasers, a
                  perfected, first priority (other than with respect to property
                  or assets covered by Permitted Liens) security interest and
                  Lien in the Collateral pursuant to this Agreement. Upon the
                  execution and delivery of this Agreement, and upon the filing
                  of the necessary Uniform Commercial Code, and Personal
                  Property Security Act financing statements in the
                  jurisdictions listed on Schedule I attached hereto, and/or
                  appropriate filings and/or delivery of the necessary
                  Instruments and certificates (duly endorsed by Debtor and
                  accompanied by appropriate instruments of transfer duly
                  executed by Debtor) evidencing an equity interest, control
                  and/or possession, as applicable, without any further action,
                  Secured Party, for the benefit of Secured Party and the
                  Purchasers, will have a good, valid, first priority (other
                  than with respect to property or assets covered by Permitted
                  Liens) and perfected Lien and security interest in the
                  Collateral, subject to no transfer or other restrictions or
                  Liens of any kind in favor of any other Person except for
                  Permitted Liens. No financing statement relating to any of the
                  Collateral is on file in any public office except those (i) on
                  behalf of Secured Party, for the benefit of Secured Party and
                  the Purchasers, (ii) in connection with Permitted Liens,
                  and/or (iii) in favour of Royal Bank of Canada which
                  registrations have or will be discharged as a result of the
                  payout of such secured party by Senior Lender with part of the
                  proceeds of the initial advance made pursuant to the Senior
                  Credit Agreement and related documents. Debtor represents and
                  warrants to Secured Party that it is not party to any
                  agreement, document or instrument that conflicts with this
                  Section 2.

         (b)      all of the Equipment, Inventory and Goods owned by Debtor is
                  located at the places as specified on Schedule I attached
                  hereto. Except as disclosed on Schedule I, none of the
                  Collateral is in the possession of any bailee, warehousemen,
                  processor or consignee. Schedule I discloses Debtor's name as
                  of the date hereof as it appears in official filings in the
                  state of its incorporation, formation or organization, as
                  applicable, the type of entity of Debtor (including
                  corporation, partnership, limited partnership or limited
                  liability company), organizational identification number
                  issued by Debtor's province of incorporation, formation or
                  organization, as applicable (or a statement that no such
                  number has been issued), all applicable identification numbers
                  required for corporate identification, as applicable, state of
                  incorporation, formation or organization, as applicable, and
                  the chief place of business, chief executive office and the
                  office where Debtor keeps its books and records. Debtor has
                  only one jurisdiction of incorporation, formation or
                  organization, as applicable. Debtor (including any Person
                  acquired by Debtor) does not do business and has not done
                  business during the past five (5) years under any trade name
                  or fictitious business name except as disclosed on Schedule II
                  attached hereto;

         (c)      no Copyrights, Patents or Trademarks have been adjudged
                  invalid or unenforceable or have been canceled, in whole or in
                  part, or are not presently subsisting. Each of such
                  Copyrights, Patents and Trademarks is valid and enforceable.
                  Debtor is the sole and exclusive owner of the entire and
                  unencumbered right, title and interest in and to each of such
                  Copyrights, Patents and Trademarks, free and clear of any
                  Liens, charges and

                                       4

<PAGE>

                  encumbrances, including without limitation licenses, shop
                  rights and covenants by Debtor not to sue third persons.
                  Debtor has adopted, used and is currently using, or has a
                  current bona fide intention to use, all of such Trademarks and
                  Copyrights. Debtor has no notice of any suits or actions
                  commenced or threatened with reference to the Copyrights,
                  Patents or Trademarks;

         (d)      Debtor agrees to deliver to Secured Party an updated Schedule
                  I within five (5) days of any change thereto; provided, that
                  delivery or receipt of such subsequent disclosure shall not
                  relieve or otherwise constitute a waiver by Secured Party or
                  any Purchaser or a cure of any Default or Event of Default
                  resulting in connection with the matters disclosed or a breach
                  of the underlying covenant, representation or warranty
                  (regardless of such disclosure); and

         (e)      all deposit accounts and other accounts maintained by Debtor
                  are described on Schedule I hereto, which description includes
                  for each such account the name, address and telephone and
                  facsimile numbers of the financial institution at which such
                  account is maintained, the account number and the account
                  officer, if any, of such account. Debtor shall not open any
                  new accounts unless Debtor shall have given Secured Party ten
                  (10) Business Days' prior written notice of its intention to
                  open any such new accounts. Debtor shall deliver to Secured
                  Party a revised version of Schedule I showing any changes
                  thereto within five (5) Business Days of any such change.
                  Debtor hereby authorizes the financial institutions at which
                  Debtor maintains an account to provide Secured Party with such
                  information with respect to such account as Secured Party from
                  time to time reasonably may request, and Debtor hereby
                  consents to such information being provided to Secured Party.

         SECTION 3.        COLLATERAL. As collateral security for the prompt
payment in full when due (whether at stated maturity, by acceleration or
otherwise) of the Liabilities, Debtor hereby pledges and grants to Secured
Party, for the benefit of Secured Party and the Purchasers, a Lien on and
security interest in and to all of Debtor's right, title and interest in all
personal property, whether now owned by Debtor or in which Debtor hereafter
acquires an interest and whether now existing or hereafter coming into existence
and wherever located (all being collectively referred to herein as
"COLLATERAL"), including, without limitation, all of:

         (a)      the Instruments of Debtor, together with all payments thereon
                  or thereunder;

         (b)      all Accounts;

         (c)      all Inventory;

         (d)      all Intangibles;

         (e)      all Equipment;

         (f)      all Documents;

         (g)      all Contracts;

         (h)      all Goods;

                                       5

<PAGE>

         (j)      all deposit accounts, including, without limitation, the
                  balance from time to time in all bank accounts maintained by
                  Debtor; and

         (k)      all other tangible and intangible property of Debtor,
                  including, without limitation, all Proceeds, tort claims,
                  products, accessions, rents, profits, income, benefits,
                  substitutions, additions and replacements of and to any of the
                  property of Debtor described in the preceding clauses of this
                  Section 3 (including, without limitation, any proceeds of
                  insurance thereon, insurance claims and all rights, claims and
                  benefits against any Person relating thereto), other rights to
                  payments not otherwise included in the foregoing and all
                  books, correspondence, files, Records, invoices and other
                  papers, including without limitation all tapes, cards,
                  computer runs, computer programs, computer files and other
                  papers, documents and Records in the possession or under the
                  control of Debtor or any computer bureau or service company
                  from time to time acting for Debtor.

         SECTION 4.        EXCEPTION TO LAST DAY. The security interest granted
hereby shall not extend or apply to, and Collateral shall not include, the last
day of the term of any lease or agreement therefore, but upon the enforcement of
the security interest, Debtor shall stand possessed of such last day in trust to
assign the same to any person acquiring such term.

         SECTION 5.        EXCEPTION RESPECTING TRADE-MARKS. Notwithstanding
Section 3, Debtor's grant of security in trademarks (as defined in the
Trademarks Act (Canada)) under this Agreement shall be limited to a grant by
Debtor of a security interest in all of Debtor's right, title and interest in
such trademarks.

         SECTION 6.        COVENANTS; EVENTS OF DEFAULT, REMEDIES. In
furtherance of the grant of the pledge and security interest pursuant to Section
3 hereof, Debtor hereby agrees with Secured Party, for the benefit of Secured
Party and the Purchasers, as follows:

         6.1      COVENANTS

         (a)      Affirmative Covenants. Each of the affirmative covenants
                  applicable to the Debtor as set out in Article 7.1 of the
                  Purchase Agreement is hereby specifically adopted and
                  incorporated by reference herein.

         (b)      Delivery of Instruments, Documents, Etc. Debtor shall (subject
                  to the rights of the Senior Lenders) deliver and pledge to
                  Secured Party or its Representative any and all Instruments,
                  negotiable Documents, Chattel Paper and Securities
                  (accompanied by stock powers or assignments separate from
                  certificate, as applicable, executed in blank) duly indorsed
                  and/or accompanied by such instruments of assignment and
                  transfer executed by Debtor in such form and substance as
                  Secured Party or its Representative may request; provided,
                  that so long as no Event of Default shall have occurred and be
                  continuing, Debtor may retain for collection in the ordinary
                  course of business any Instruments, negotiable Documents and
                  Chattel Paper received by Debtor in the ordinary course of
                  business, and Secured Party or its Representative shall,
                  promptly upon request of a Debtor, make appropriate
                  arrangements for making any other Instruments, negotiable
                  Documents and Chattel Paper pledged by Debtor available to
                  Debtor for purposes of presentation, collection or renewal
                  (any such arrangement to be effected, to the extent deemed
                  appropriate by Secured Party or its Representative, against
                  trust receipt or like document). If a Debtor retains
                  possession of any Chattel Paper, negotiable Documents or

                                       6

<PAGE>

                  Instruments pursuant to the terms hereof, such Chattel Paper,
                  negotiable Documents and Instruments shall be marked with the
                  following legend:

         "THIS WRITING AND THE OBLIGATIONS EVIDENCED OR SECURED HEREBY ARE
SUBJECT TO THE SECURITY INTEREST OF AMERICAN CAPITAL FINANCIAL SERVICES, INC.,
AS AGENT FOR CERTAIN PURCHASERS."

         (c)      Other Documents and Actions. Debtor shall give, execute,
                  deliver, file and/or record any financing statement, notice,
                  instrument, document, agreement or other papers that may be
                  necessary or desirable (in the Permitted Discretion of Secured
                  Party or its Representative) to create, preserve, perfect or
                  validate the security interest granted pursuant hereto or to
                  enable Secured Party or its Representative to exercise and
                  enforce the rights of Secured Party hereunder with respect to
                  such pledge and security interest, provided, that notices to
                  Account Debtor in respect of any Accounts or Instruments shall
                  be subject to the provisions of clause (e) below.
                  Notwithstanding the foregoing, Debtor hereby irrevocably
                  authorizes Secured Party at any time and from time to time to
                  file in any filing office in any Uniform Commercial Code
                  and/or Personal Property Security Act jurisdiction any initial
                  financing statements and amendments thereto that (a) indicate
                  the Collateral (i) as all assets of Debtor or words of similar
                  effect, regardless of whether any particular asset comprised
                  in the Collateral falls within the scope of the Uniform
                  Commercial Code or Personal Property Security Act, as
                  applicable, or (ii) as being of an equal or lesser scope or
                  with greater detail, and (b) contain any other information
                  required by the Uniform Commercial Code or Personal Property
                  Security Act, as applicable, for the sufficiency or filing
                  office acceptance of any financing statement or amendment,
                  including (i) whether Debtor is an organization, the type of
                  organization and any organization identification number issued
                  to Debtor, and (ii) in the case of a financing statement filed
                  as a fixture filing or indicating Collateral as as-extracted
                  collateral or timber to be cut, a sufficient description of
                  real property to which the Collateral relates. Debtor agrees
                  to furnish any such information to Secured Party promptly upon
                  request. Debtor also ratifies its authorization for Secured
                  Party to have filed in any Uniform Commercial Code or Personal
                  Property Security Act jurisdiction any like initial financing
                  statements or amendments thereto if filed prior to the date
                  hereof.

         (d)      Motor Vehicles. Debtor shall, promptly upon the request of
                  Secured Party or its Representative, and where required to
                  create or record a security interest, cause Secured Party to
                  be listed as the lienholder on each certificate of title or
                  ownership covering any items of Equipment, including Motor
                  Vehicles.

         (e)      Notice to Account Debtor; Verification. (i) Upon the
                  occurrence and during the continuance of any Event of Default
                  (or if any rights of set-off (other than set-offs against an
                  Account arising under the Contract giving rise to the same
                  Account) or contra accounts may be asserted), upon request of
                  Secured Party or its Representative, Debtor shall promptly
                  notify (and Debtor hereby authorizes Secured Party and its
                  Representative to so notify) each Account Debtor in respect of
                  any Accounts or Instruments or other Persons obligated on the
                  Collateral that such Collateral has been assigned to Secured
                  Party hereunder, and that any payments due or to become due in
                  respect of such Collateral are to be made directly to Secured
                  Party and (ii) Secured Party and its Representative shall have
                  the right at any time or times to make direct verification
                  with the Account Debtor or other Persons obligated on the
                  Collateral of any and all of the Accounts or other such
                  Collateral.

                                       7

<PAGE>

         (f)      Compliance with Purchase Documents. Debtor shall comply with
                  the provisions of the Purchase Documents applicable thereto,
                  including, without limitation, maintenance of insurance,
                  restrictions on dispositions, and providing Secured Party and
                  its Representatives with the right to inspections with respect
                  to the Collateral.

         (g)      Perfection. Prior to or concurrently with the execution and
                  delivery of this Agreement, Debtor shall:

                  (i)      file such financing statements, assignments for
                           security and other documents in such offices as may
                           be necessary or as Secured Party or its
                           Representative may request to perfect the security
                           interests granted by Section 3 of this Agreement;

                  (ii)     at Secured Party's request, deliver to Secured Party
                           or its Representative the originals of all
                           Instruments which are capable of perfection of
                           security interest by possession together with, in the
                           case of Instruments constituting promissory notes,
                           allonges attached thereto showing such promissory
                           notes to be payable to the order of a blank payee;

                  (iii)    as to Motor Vehicles which are owned or registered in
                           a jurisdiction which is a title jurisdiction at
                           Secured Party's request, deliver to Secured Party or
                           its Representative the originals of all Motor Vehicle
                           titles, if any, duly indorsed indicating Secured
                           Party's interest therein as lienholder;

                  (iv)     at Secured Party's request, deliver to Secured Party
                           or its Representative instruments representing or
                           evidencing all Investment Property, in suitable form
                           for transfer by delivery or accompanied by applicable
                           endorsements, where necessary, or duly executed
                           instruments of transfer or assignment in blank, all
                           in form and substance satisfactory to Secured Party;

                  (v)      take any other action or do any other thing
                           reasonably required by Secured Party or its
                           Representative so that Secured Party shall have a
                           first priority perfected security interest in the
                           Collateral, subject only to Permitted Liens; and

                  (vi)     deliver the original of shares certificates which are
                           the subject matter of the security and pledge granted
                           in favour of the Secured Party.

         (h)      Negative Covenants. Each of the negative covenants applicable
                  to the Debtor as set out in Article 7.2 of the Purchase
                  Agreement is hereby specifically adopted and incorporated by
                  reference herein.

         (i)      Other Liens. Debtor will not create, permit or suffer to
                  exist, and will defend the Collateral against and take such
                  other action as is necessary to remove, any Lien on the
                  Collateral except Permitted Liens, and will defend the right,
                  title and interest of Secured Party in and to the Collateral
                  and in and to all Proceeds thereof against the claims and
                  demands of all Persons whatsoever.

         6.2      DEFICIENCY. If the proceeds of sale, collection or other
realization of or upon the Collateral are insufficient to cover the costs and
expenses of such realization and the payment in full of the Liabilities, Debtor
shall remain liable for any deficiency.

                                       8

<PAGE>

         6.3      PRIVATE SALE. Debtor recognizes that Secured Party may not be
able to effect a public sale of the Collateral, by reasons of law, or by reason
of the determination, in the discretion, of the Secured Party, and may resort to
one or more private sales thereof to a restricted group of purchasers who will
be obliged to agree, among other things, to acquire such Collateral for their
own account for investment and not with a view to the distribution or resale
thereof. Debtor acknowledges and agrees that any such private sale may result in
prices and other terms less favorable to the seller than if such sale were a
public sale and, notwithstanding such circumstances, agrees that any such
private sale shall be deemed to have been made in a commercially reasonable
manner. Secured Party shall be under no obligation to delay a sale of any of the
Collateral to permit a Debtor to register such Collateral for public sale under
the Securities Act (Alberta) or under any other applicable provincial or state
securities laws (collectively, the "Act"), even if Debtor would agree to do so.
Secured Party shall not incur any liability as a result of the sale of any such
Collateral, or any part thereof, at any private sale provided for in this
Agreement conducted in a commercially reasonable manner, and Debtor hereby
waives any claims against Secured Party arising by reason of the fact that the
price at which the Collateral may have been sold at such a private sale was less
than the price which might have been obtained at a public sale or was less than
the aggregate amount of the Liabilities, even if Secured Party accepts the first
offer received and does not offer the Collateral to more than one offeree.

Debtor further agrees to do or cause to be done all such other acts and things
as may be necessary to make such sale or sales of any portion or all of any such
Collateral valid and binding and in compliance with any and all applicable laws,
regulations, orders, writs, injunctions, decrees or awards of any and all
courts, arbitrators or governmental instrumentalities, domestic or foreign,
having jurisdiction over any such sale or sales, all at Debtor's expense,
provided, that Debtor shall be under no obligation to take any action to enable
any or all of such Collateral to be registered under the provisions of the Act.
Debtor further agrees that a breach of any of the covenants contained in this
Section 6.3 will cause irreparable injury to Secured Party, that Secured Party
has no adequate remedy at law in respect of such breach and, as a consequence,
agrees that each and every covenant contained in this Section 6.3 shall be
specifically enforceable against Debtor, and Debtor hereby waives and agrees not
to assert any defenses against an action for specific performance of such
covenants except for a defense that no Event of Default has occurred and is
continuing.

         6.4      ATTORNEY-IN-FACT. Debtor hereby irrevocably constitutes and
appoints Secured Party, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of Debtor and in the name of Debtor or in its own name, from time to time
in the Permitted Discretion of Secured Party, for the purpose of carrying out
the terms of this Agreement, to take any and all appropriate action and to
execute and deliver any and all documents and instruments which may be necessary
or desirable to accomplish the purposes of this Agreement and, without limiting
the generality of the foregoing, hereby gives Secured Party the power and right,
on behalf of Debtor, without notice to or assent by Debtor, to do the following
upon the occurrence and during the continuance of any Event of Default:

         (a)      to ask, demand, collect, receive and give acquittance and
                  receipts for any and all moneys due and to become due under
                  any Collateral and, in the name of Debtor or its own name or
                  otherwise, to take possession of and indorse and collect any
                  checks, drafts, notes, acceptances or other Instruments for
                  the payment of moneys due under any Collateral and to file any
                  claim or to take any other action or proceeding in any court
                  of law or equity or otherwise deemed appropriate by Secured
                  Party for the purpose of collecting any and all such moneys
                  due under any Collateral whenever payable and to file any
                  claim or to take any other action or proceeding in any court
                  of law or equity or otherwise deemed

                                       9

<PAGE>

                  appropriate by Secured Party for the purpose of collecting any
                  and all such moneys due under any Collateral whenever payable;

         (b)      to pay or discharge charges or Liens levied or placed on or
                  threatened against the Collateral (other than the Permitted
                  Liens), to effect any insurance called for by the terms of
                  this Agreement and to pay all or any part of the premiums
                  therefor;

         (c)      to direct any party liable for any payment under any of the
                  Collateral to make payment of any and all moneys due, and to
                  become due thereunder, directly to Secured Party or as Secured
                  Party shall direct, and to receive payment of and receipt for
                  any and all moneys, claims and other amounts due, and to
                  become due at any time, in respect of or arising out of any
                  Collateral;

         (d)      to sign and indorse any invoices, freight or express bills,
                  bills of lading, storage or warehouse receipts, drafts against
                  debtors, assignments, verifications and notices in connection
                  with Accounts and other Documents constituting or relating to
                  the Collateral;

         (e)      to commence and prosecute any suits, actions or proceedings at
                  law or in equity in any court of competent jurisdiction to
                  collect the Collateral or any part thereof and to enforce any
                  other right in respect of any Collateral;

         (f)      to defend any suit, action or proceeding brought against a
                  Debtor with respect to any Collateral;

         (g)      to settle, compromise or adjust any suit, action or proceeding
                  described above and, in connection therewith, to give such
                  discharges or releases as Secured Party may deem appropriate;

         (h)      to the extent that a Debtor's authorization given in Section
                  6.1(c) of this Agreement is not sufficient, to file such
                  financing statements with respect to this Agreement, or to
                  file a photocopy of this Agreement in substitution for a
                  financing statement, as Secured Party may deem appropriate,
                  and to execute in Debtor's name such financing statements and
                  amendments thereto and continuation statements which may
                  require Debtor's signature; and

         (i)      generally to sell, transfer, pledge, make any agreement with
                  respect to or otherwise deal with any of the Collateral as
                  fully and completely as though Secured Party were the absolute
                  owner thereof for all purposes, and to do, at Secured Party's
                  option and at Debtor's expense, at any time, or from time to
                  time, all acts and things which Secured Party reasonably deems
                  necessary to protect, preserve or realize upon the Collateral
                  and Secured Party's Lien therein, in order to effect the
                  intent of this Agreement, all as fully and effectively as
                  Debtor might do.

Debtor hereby ratifies, to the extent permitted by law, all that such attorneys
lawfully do or cause to be done by virtue hereof. The power of attorney granted
hereunder is a power coupled with an interest and shall be irrevocable until the
Liabilities are indefeasibly paid in full in cash and the Purchase Agreement is
terminated.

Debtor also authorizes Secured Party, at any time from and after the occurrence
and during the continuance of any Event of Default, (x) to communicate in its
own name with any party to any Contract

                                       10

<PAGE>

with regard to the assignment of the right, title and interest of Debtor in and
under the Contracts hereunder and other matters relating thereto and (y) to
execute, in connection with any sale of Collateral, any endorsements,
assignments or other instruments of conveyance or transfer with respect to the
Collateral.

         6.5      EVENTS OF DEFAULT. The occurrence of any one or more of the
Events of Default provided for in Article 8.1 of the Purchase Agreement shall
constitute an Event of Default under this Agreement.

         6.6      REMEDIES AFTER DEFAULT.

         (a)      Upon the occurrence and continuance of an Event of Default,
                  the Secured Party and its Representatives shall have the right
                  to exercise any and all rights available to them at law, in
                  equity or pursuant to the Purchase Agreement as set out in
                  Article 8.2 of the Purchase Agreement.

         (b)      Upon the occurrence and continuance of an Event of Default, in
                  addition to the rights made available to the Secured Party
                  pursuant to Section 6.6(a) of this Agreement, the Secured
                  Party may also appoint, remove and reappoint any person or
                  persons, including an employee of the Secured Party to be a
                  receiver (the "RECEIVER") which term shall include a receiver
                  and manager of, or agent for, all or any part of the
                  Collateral. Any such Receiver shall, as far as concerns
                  responsibility for his acts, be deemed to be the agent of
                  Debtor and not of Secured Party, and Secured Party shall not
                  in any way be responsible for any misconduct, negligence or
                  nonfeasance of such Receiver, his employees or agents, other
                  than its gross negligence or willful misconduct. Except as
                  otherwise directed by Secured Party, all money received by
                  such Receiver shall be received in trust for and paid to
                  Secured Party. Such Receiver shall have all of the powers and
                  rights of Secured Party described in this Agreement and in the
                  Purchase Agreement. Secured Party may, either directly or
                  through its agents or nominees, exercise any or all powers and
                  rights of a Receiver, and, specifically, to facilitate the
                  realization of the Collateral the Secured Party may carry on
                  or concur in the carrying on of all or any part of the
                  business of the Debtor and may to the exclusion of all others,
                  including the Debtor, enter upon, occupy and use all or any of
                  the premises, buildings, plant and undertaking of or occupied
                  or used by the Debtor and use all or any of the tools,
                  machinery and equipment of the Debtor for such time as the
                  Secured Party sees fit, free of charge, to manufacture or
                  complete the manufacture of any inventory and to pack and ship
                  the finished product, and the Secured Party shall not be
                  liable to the Debtor for any neglect in so doing or in respect
                  of any rent, charges, depreciation or damages in connection
                  with such actions. Debtor shall pay all costs, charges and
                  expenses incurred by Secured Party or any Receiver, whether
                  directly or for services rendered (including, without
                  limitation, solicitor's costs on a solicitor and his own
                  client basis, auditor's costs, other legal expenses and
                  Receiver remuneration) in enforcing this Agreement and in
                  enforcing or collecting Obligations and all such expenses
                  together with any money owing as a result of any borrowing
                  permitted hereby shall be a charge on the proceeds of
                  realization and shall be secured hereby.

         SECTION 7.        TERMINATION. This Agreement and the Liens and
security interests granted hereunder shall not terminate until the termination
of the Purchase Agreement and the full and complete performance and indefeasible
satisfaction of all the Liabilities (other than contingent indemnification

                                       11

<PAGE>

Obligations to the extent no claim giving rise thereto has been asserted),
whereupon Secured Party shall forthwith cause to be assigned, transferred and
delivered, against receipt but without any recourse, warranty or representation
whatsoever, any remaining Collateral to or on the order of Debtor.

         SECTION 8.        FURTHER ASSURANCES.

         (a)      At any time and from time to time, upon the written request of
                  Secured Party or its Representative, and at the sole expense
                  of Debtor, Debtor will promptly and duly execute and deliver
                  any and all such further instruments, documents and agreements
                  and take such further actions as Secured Party or its
                  Representative may reasonably require in order for Secured
                  Party to obtain the full benefits of this Agreement and of the
                  rights and powers herein granted in favor of Secured Party,
                  including, without limitation, using Debtor's best efforts to
                  secure all consents and approvals necessary or appropriate for
                  the assignment to Secured Party of any Collateral held by
                  Debtor or in which a Debtor has any rights not heretofore
                  assigned, the filing of any financing or continuation
                  statements under the Uniform Commercial Code and the PPSA with
                  respect to the Liens and security interests granted hereby,
                  transferring Collateral to Secured Party's possession (if a
                  security interest in such Collateral can be perfected by
                  possession), placing the interest of Secured Party as
                  lienholder on the certificate of title of any Motor Vehicle
                  and obtaining waivers of Liens from landlords and mortgagees.
                  Debtor also hereby authorizes Secured Party and its
                  Representative to file any such financing or continuation
                  statement without the signature of Debtor to the extent
                  permitted by applicable law.

         (b)      Upon the request of Secured Party, Debtor shall procure
                  insurers' acknowledgments of any assignments of key man life
                  insurance policies (if any) which may be assigned to Secured
                  Party as additional security for the Liabilities and will take
                  all such further action as required by any insurer or Secured
                  Party in connection with any such assignment.

         SECTION 9.        LIMITATION ON DUTY OF SECURED PARTY. The powers
conferred on Secured Party under this Agreement are solely to protect Secured
Party's interest in the Collateral and shall not impose any duty upon it to
exercise any such powers. Secured Party shall be accountable only for amounts
that it actually receives as a result of the exercise of such powers and neither
Secured Party nor its Representative nor any of their respective officers,
directors, employees or agents shall be responsible to Debtor for any act or
failure to act, except for willful misconduct. Without limiting the foregoing,
Secured Party and any Representative shall be deemed to have exercised
reasonable care in the custody and preservation of the Collateral in their
possession if such Collateral is accorded treatment substantially equivalent to
that which the relevant Secured Party or any Representative, in its individual
capacity, accords its own property consisting of the type of Collateral
involved, it being understood and agreed that neither Secured Party nor any
Representative shall have any responsibility for taking any necessary steps
(other than steps taken in accordance with the standard of care set forth above)
to preserve rights against any Person with respect to any Collateral.

Also without limiting the generality of the foregoing, neither Secured Party nor
any Representative shall have any obligation or liability under any Contract or
license by reason of or arising out of this Agreement or the granting to Secured
Party of a security interest therein or assignment thereof or the receipt by
Secured Party or any Representative of any payment relating to any Contract or
license pursuant hereto, nor shall Secured Party or any Representative be
required or obligated in any manner to perform or fulfill any of the obligations
of Debtor under or pursuant to any Contract or license, or to make any payment,
or to make any inquiry as to the nature or the sufficiency of any payment
received by it or the sufficiency of any performance by any party under any
Contract or license, or to present or file any

                                       12

<PAGE>

claim, or to take any action to collect or enforce any performance or the
payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

         SECTION 10.       MISCELLANEOUS.

         10.1     NO WAIVER. No failure on the part of Secured Party or any of
                  its Representatives to exercise, and no course of dealing with
                  respect to, and no delay in exercising, any right, power or
                  remedy hereunder shall operate as a waiver thereof, nor shall
                  any single or partial exercise by Secured Party or any of its
                  Representatives of any right, power or remedy hereunder
                  preclude any other or further exercise thereof or the exercise
                  of any other right, power or remedy. The rights and remedies
                  hereunder provided are cumulative and may be exercised singly
                  or concurrently, and are not exclusive of any rights and
                  remedies provided by law.

         10.2     GOVERNING LAW. This Agreement shall be governed by and
                  construed in accordance with the internal laws of the State of
                  New York without giving effect to its choice of law
                  provisions. Debtor hereby agrees in favour of the Secured
                  Party that the Secured Party may, in its Permitted Discretion,
                  and to the extent the Secured Party determines such is
                  required or desirable in furtherance of its rights and
                  remedies hereunder, declare that any portion or all of the
                  terms of this Agreement and the rights and remedies of the
                  Secured Party are subject to and governed by the laws of the
                  Province of Alberta and the Debtor hereby attorn to the
                  jurisdiction of the courts of Alberta to the extent the
                  Secured Creditor takes any step or action in such court for
                  the enforcement of its rights and remedies hereunder.

         10.3     NOTICES. All notices, approvals, requests, demands and other
                  communications hereunder shall be given in accordance with the
                  notice provisions of the Purchase Agreement.

         10.4     AMENDMENTS, ETC. The terms of this Agreement may be waived,
                  altered or amended only by an instrument in writing duly
                  executed by Debtor and Secured Party. Any such amendment or
                  waiver shall be binding upon Secured Party and Debtor and
                  their respective successors and assigns.

         10.5     SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
                  and inure to the benefit of the respective successors and
                  assigns of each of the parties hereto, provided, that no
                  Debtor shall assign or transfer its rights hereunder without
                  the prior written consent of Secured Party.

         10.6     COUNTERPARTS; HEADINGS. This Agreement may be authenticated in
                  any number of counterparts, all of which taken together shall
                  constitute one and the same instrument and any of the parties
                  hereto may authenticate this Agreement by signing any such
                  counterpart. This Agreement may be authenticated by manual
                  signature, facsimile or, if approved in writing by Secured
                  Party, electronic means, all of which shall be equally valid.
                  The headings in this Agreement are for convenience of
                  reference only and shall not alter or otherwise affect the
                  meaning hereof.

         10.7     SEVERABILITY. If any provision hereof is invalid and
                  unenforceable in any jurisdiction, then, to the fullest extent
                  permitted by law, (a) the other provisions hereof shall remain
                  in full force and effect in such jurisdiction and shall be
                  liberally construed in favor of Secured Party and its
                  Representative in order to carry out the intentions of the
                  parties

                                       13

<PAGE>

                  hereto as nearly as may be possible and (b) the invalidity or
                  unenforceability of any provision hereof in any jurisdiction
                  shall not affect the validity or enforceability of such
                  provision in any other jurisdiction.

         10.8     OTHER PURCHASE DOCUMENTS. This Agreement supplements the other
                  Purchase Documents and nothing in this Agreement shall be
                  deemed to limit or supersede the rights granted to Secured
                  Party or the Purchasers or their agent in any other Loan
                  Document. In the event of any conflict between this Agreement
                  and the Purchase Agreement, the provisions of the Purchase
                  Agreement shall govern.

         10.9     SUBMISSION TO JURISDICTION; SERVICE OF PROCESS; WAIVER OF
                  VENUE. ANY JUDICIAL PROCEEDING AGAINST DEBTOR WITH RESPECT TO
                  THE LIABILITIES OR THIS AGREEMENT MAY BE BROUGHT IN ANY
                  FEDERAL OR STATE COURT OF COMPETENT JURISDICTION LOCATED IN
                  THE STATE OF NEW YORK. BY EXECUTION AND DELIVERY OF THIS
                  AGREEMENT, DEBTOR (I) ACCEPTS THE NON-EXCLUSIVE JURISDICTION
                  OF THE AFORESAID COURTS AND IRREVOCABLY AGREES TO BE BOUND BY
                  ANY JUDGMENT RENDERED THEREBY, (II) WAIVES PERSONAL SERVICE OF
                  PROCESS, (III) AGREES THAT SERVICE OF PROCESS UPON IT MAY BE
                  MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT
                  REQUESTED, PURSUANT TO ARTICLE 13.6 OF THE PURCHASE AGREEMENT,
                  AND (IV) WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY
                  ACTION INSTITUTED HEREUNDER AND AGREES NOT TO ASSERT ANY
                  DEFENSE BASED ON LACK OF JURISDICTION, VENUE, CONVENIENCE OR
                  FORUM NON CONVENIENS. NOTHING SHALL AFFECT THE RIGHT OF
                  SECURED PARTY OR ANY PURCHASER OR ANY OF THEIR REPRESENTATIVES
                  TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW OR SHALL LIMIT
                  THE RIGHT OF SECURED PARTY OR ANY PURCHASER OR ANY OF THEIR
                  REPRESENTATIVES TO BRING PROCEEDINGS AGAINST DEBTOR IN THE
                  COURTS OF ANY OTHER JURISDICTION HAVING JURISDICTION. ANY
                  JUDICIAL PROCEEDINGS AGAINST SECURED PARTY OR ANY PURCHASER OR
                  ANY OF THEIR REPRESENTATIVES INVOLVING, DIRECTLY OR
                  INDIRECTLY, THE LIABILITIES OR THIS AGREEMENT SHALL BE BROUGHT
                  ONLY IN A FEDERAL OR STATE COURT LOCATED IN THE STATE OF NEW
                  YORK. ALL PARTIES ACKNOWLEDGE THAT THEY PARTICIPATED IN THE
                  NEGOTIATION AND DRAFTING OF THIS AGREEMENT WITH THE ASSISTANCE
                  OF COUNSEL AND THAT, ACCORDINGLY, NO PARTY SHALL MOVE OR
                  PETITION A COURT CONSTRUING THIS AGREEMENT TO CONSTRUE IT MORE
                  STRINGENTLY AGAINST ONE PARTY THAN AGAINST ANY OTHER.

         10.10    WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS AGREEMENT
                  HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY
                  CLAIM OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN
                  ANY WAY CONNECTED WITH OR INCIDENTAL TO THE DEALINGS OF THE
                  PARTIES WITH RESPECT TO THIS AGREEMENT, WHETHER NOW EXISTING
                  OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT
                  OR OTHERWISE. EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY
                  SUCH CLAIM OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
                  WITHOUT A JURY, AND THAT ANY PARTY TO

                                       14

<PAGE>

                  THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
                  THIS SECTION 10.10 WITH ANY COURT AS WRITTEN EVIDENCE OF THE
                  CONSENTS OF THE PARTIES TO THE WAIVER OF THEIR RESPECTIVE
                  RIGHTS TO TRIAL BY JURY.

      [Remainder of page intentionally left blank, signature page follows]

                                       15

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Security Agreement to be duly executed and delivered as of the date first above
written.

                                 DEBTORS:

                                 COMMONWEALTH SEAGER HOLDINGS LTD. an
                                 Alberta corporation

                                 By:  /s/ Joseph W. Rog
                                    --------------------------------------------
                                 Name:    Joseph W. Rog
                                 Title:   V.P.

                                 Attention:        Barry Wasney
                                 Telephone:        780 447.4565
                                 FAX:              780 451.0544
                                 E-MAIL:           barry.wasney@corrpro.ca

                                 CORRPRO CANADA, INC. an Alberta corporation

                                 By:  /s/ Joseph W. Rog
                                    --------------------------------------------
                                 Name:    Joseph W. Rog
                                 Title:   V.P.

                                 Attention:        Barry Wasney
                                 Telephone:        780 447.4565
                                 FAX:              780 451.0544
                                 E-MAIL:           barry.wasney@corrpro.ca

                                 BORZA INSPECTIONS LTD. an Alberta corporation

                                 By:  /s/ Joseph W. Rog
                                    --------------------------------------------
                                 Name:    Joseph W. Rog
                                 Title:   Authorized Officer

                                 Attention:        Barry Wasney
                                 Telephone:        780 447.4565
                                 FAX:              780 451.0544
                                 E-MAIL:           barry.wasney@corrpro.ca

                                 SECURED PARTY:

                                 AMERICAN CAPITAL FINANCIAL SERVICES, INC., a
                                 Delaware corporation, as Agent
                                 By:      /s/ J MacDowell
                                        -----------------------------------
                                 Name:    Jeffrey N. MacDowell
                                 Title:   Vice President
                                 American Capital Financial Services, Inc.
                                 2 Bethesda Metro Centre, 14th Floor
                                 Bethesda, Maryland 20814
                                 Attention:        Compliance Officer
                                 Telecopier: (301) 654-6714

                                       16

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