Document:

EXHIBIT 10-3

GUARANTY

          IN CONSIDERATION of the sum of One Dollar ($1.00), cash in hand paid, and other valuable consideration, as well as for the purpose of seeking to induce BRANCH BANKING AND TRUST COMPANY, having a principal office at 1300 S. Babcock Street, Melbourne, Florida 32901 (hereinafter termed the “Bank”), to extend credit to SOUTHEAST POWER CORPORATION, a Florida corporation (hereinafter termed the “Principal”), the undersigned (hereinafter termed the “Guarantor”) does hereby absolutely and unconditionally guarantee to said Bank and to its endorsers, transferees, successors or assigns of either this guaranty or any of the obligations secured hereunder, the prompt payment and performance, according to their respective terms, of all liabilities (as hereinafter defined) of the Principal to the Bank.

	
  
1.
  	
  
The term   “Liability” or “Liabilities” as used herein shall include, without   limitation, all of the obligations of the Guarantor hereunder, and all   liabilities and obligations of Principal to Bank, and all payment and   performance obligations of Principal under the Loan Documents. This guaranty   is additional and supplemental to any and all other guaranties heretofore and   hereafter executed by any Guarantor for benefit of Bank, whether or not relating   to the Liabilities, and shall not supersede or be superseded by any other   document or guaranty executed by any Guarantor or any other person or entity   for any purpose.
  
	
  
 
  	
  
 
  
	
  2.
  	
  
The   Guarantor waives notice of acceptance of this guaranty and notice of any   Liability to which it may apply, and waives presentment, demand for payment,   protest, notice of dishonor or nonpayment of any Liabilities and any suit or   the taking of other action by Bank against and any other notice to any party   liable thereon (including the Guarantor).
  
	
  
 
  	
  
 
  
	
  
3.
  	
  
Bank may at   any time and from time to time without notice to the Guarantor (except as   required by law), without incurring responsibility to the Guarantor, without   impairing, releasing or otherwise affecting the obligations of the Guarantor,   in whole or in part, and without the endorsement or execution by the   Guarantor of any additional consent, waiver or guaranty (a) change the   manner, place or terms of payment, and change or extend the time of or renew   or alter, any Liability or installment thereof, or any security therefor, and   may lend additional monies or extend additional credit to Principal, with or   without security, thereby creating new Liabilities, the payment of which   shall be guaranteed hereunder, and the guaranty herein made shall apply to   the Liabilities as so changed, extended, renewed, increased or otherwise   altered; (b) sell, exchange, release, surrender, realize upon or otherwise   deal with in any manner and in any order
any property at any time pledged or   mortgaged to secure the Liabilities and any offset thereagainst; (c) exercise   or refrain from exercising any rights against Principal or others (including   the Guarantor) or act or refrain from acting in any other manner; (d) settle   or compromise any Liability or any security therefor and may subordinate the   payment of all or any part thereof to the payment of any Liability (whether   or not due) of Principal to creditors of Principal other than Bank and the   Guarantor; and (e) apply any sums from any sources to any Liability without   regard to any Liabilities remaining unpaid.
  

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4.
  	
  
No   invalidity, irregularity or unenforceability of all or any part of the   Liabilities or of any security therefor shall affect, impair or be a defense   to this guaranty, and this guaranty is a primary and absolute obligation of   the Guarantor.
  
	
  
 
  	
  
 
  
	
  
5.
  	
  
This   guaranty is a continuing one, and all Liabilities to which it applies or may   apply under the terms hereof shall be conclusively presumed to have been   created in reliance hereon. The death or insanity of any Guarantor shall have   the effect of a notice of termination only after the Bank has actually   received written notice from such Guarantor’s legal representative; provided,   however, that no notice of such death or insanity shall affect, in any   manner, rights arising under this guaranty with respect to Liabilities that   shall have been created, contracted, assumed or incurred prior to receipt by   Bank of written notice of such death or insanity, or Liabilities that shall   have been created, contracted for, assumed or incurred after receipt of such   written notice pursuant to any agreement entered into by Bank prior to   receipt of such notice, and the estate of such Guarantor shall then remain   liable for any such Liabilities, and the
sole effect of such notice of such   death or insanity shall be to exclude (as to that Guarantor only) from this   guaranty Liabilities thereafter arising that are unconnected with Liabilities   theretofore arising or transactions theretofore entered into.
  
	
   
  	
  
 
  
	
  
6.
  	
  
Notwithstanding   anything to the contrary contained herein, this guaranty shall stand as and   for the Guarantor’s guaranty of those certain credits granted by Bank to   Principal evidenced by that certain revolving line of credit promissory note   of Principal to Bank dated of even date herewith in the original principal   amount of THREE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS   ($3,500,000.00) according to the terms thereof, and to all renewals,   extensions, and modifications thereof, plus interest thereon, and any   disbursements made for the payment of taxes, levies, or insurance on the   mortgaged property, and for maintenance, repair, protection, and preservation   of the mortgaged property, with interest on such disbursements. Bank, by its   acceptance hereof, agrees that upon payment to Bank in full of the herein   described indebtedness, this guaranty shall be of no further force and   effect.
  
	
  
 
  	
  
 
  
	
  
7.
  	
  
All notices   provided to be given to Bank herein shall be sent by registered or certified   mail, return receipt requested, to the address shown in the preamble to this   agreement.
  
	
  
 
  	
  
 
  
	
  
8.
  	
  
Any and all   rights and claims of the Guarantor against Principal or any of its property   shall be subordinate and subject in right of payment to the prior payment in   full of all Liabilities.
  
	
   
  	
  
 
  
	
  
9.
  	
  
Bank at all   times, and from time to time, following any material adverse change in the   financial condition of any one of the Guarantor shall have the right to   require the Guarantor to deliver to Bank, as security for the Liabilities,   collateral security, original or additional, satisfactory to Bank.
  

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10.
  	
  
As security   for the Liabilities, Bank is hereby given a lien upon, security title to and   a security interest in all property of the Guarantor now or at any time   hereafter in possession of Bank in any capacity whatsoever, and whether joint   or by the entireties, including but not limited to any balance or share of   any deposit, account, trust, agency or special account, or items of monies of   the Guarantor now or hereafter in the possession or control of or otherwise   with Bank, to include all dividends and distributions thereon or other rights   in connection therewith, and Bank shall have such right to such property as   authorized by law. Without limiting the generality of the foregoing, Bank   shall have a prior perfected security interest to secure the Liabilities and   may, at any time or from time to time at its option and without notice: (a)   appropriate and apply towards the payment of any of the Liabilities the   balance of any such account of
the Guarantor, and (b) transfer into its own   name or that of its nominee any such property in the possession or custody of   Bank.
  
	
   
  	
  
 
  
	
  
11.
  	
  
The   Guarantor shall be in default hereunder upon: (a) non-payment of any   Liability when due; (b) failure of Principal or the Guarantor to perform any   agreement creating or otherwise affecting any Liability or any provision   hereof, or to pay in full, when due, any other obligation of Principal or the   Guarantor; (c) the dissolution, death or insanity, termination of existence,   insolvency, or business failure of Principal or the Guarantor, appointment of   a receiver of any part of the property of Principal or of any material part   of the property of Guarantor, assignment for the benefit of creditors or the   commencement of any proceedings in bankruptcy or insolvency by Principal or   by the Guarantor or the failure to timely contest to or to dismiss within   thirty (30) days of filing, any involuntary proceeding seeking the   adjudication of Principal, or the Guarantor as bankrupt or insolvent; (d) the   entry of a final, unappealable judgment having a
material adverse effect   against Principal or the Guarantor; (e) the taking of possession of any   substantial part of the property of Principal or the Guarantor at the   instance of any governmental authority; (f) the merger, consolidation or   reorganization of Principal or the Guarantor; (g) the determination by Bank   that a material adverse change has occurred in the financial condition of   Principal or the Guarantor from the conditions set forth in the most recent   financial statement of any such party heretofore furnished to Bank or from   the condition of such party as heretofore most recently disclosed to Bank in   any manner; or (h) falsity in any material respect of, or any material omission   in any representation or statement made to Bank by or on behalf of Principal   or the Guarantor in connection with any Liability or other obligation of such   parties.
  
	
  
 
  	
  
 
  
	
  12.
  	
  
Upon the   occurrence of any default hereunder, Bank shall have all of the remedies of a   creditor and to the extent applicable, of a secured party, under all   applicable law.  Without limiting the   generality of the foregoing, Bank may, at its option and without notice or   demand: (a) declare any Liability accelerated and due and payable at once,   and  (b) take possession of any   collateral security wherever located, and sell, resell, assign, transfer and   deliver all or any part of said property of Principal or the Guarantor, at   any public or private sale, for cash or on credit, and upon any such sale,   Bank, unless prohibited by law the provisions of which cannot be waived, may   purchase all or any part of said property to be sold, free from and   discharged of all trusts, claims, right of redemption and equities of the   Principal or Guarantor whatsoever; and (c) set off against any or all   Liabilities or other obligations of the
Guarantor all money owed by Bank in   any capacity to the Guarantor whether or not due, and also set off against   all other Liabilities of Principal or obligations of the Guarantor to Bank   all money owed by Bank in any capacity to any Principal or the Guarantor, and   Bank shall be deemed to have exercised such right of setoff and to have made   a charge against any such money immediately upon the occurrence of such   default although made or entered on the books subsequent thereto.  Until all of the obligations of Principal   to Bank have been paid and performed in full, Guarantor shall have no right   of subrogation to Bank against Principal, and Guarantor hereby waives any   rights to enforce any remedy which Bank may have against Principal and any   rights to participate in any security for the note.
  

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  13.
  	
  
Guarantor   shall pay all costs of collection and reasonable attorneys’ fees, including   reasonable attorneys’ fees of any suit out of court, in trial, on appeal, in   bankruptcy proceedings or otherwise, incurred or paid by Bank in enforcing   the payment of any Liability or enforcing or preserving any right or interest   of Bank hereunder, including the collection, sale or delivery of any   collateral security from time to time pledged hereunder, and after deducting   such fees, costs and expenses from the proceeds of sale or collection, Bank   may apply any residue to pay any of the Liabilities and the Guarantor shall   continue to be liable for any deficiency with interest, which shall remain a   Liability.
  
	
  
 
  	
  
 
  
	
  
14.
  	
  
If claim is   ever made upon Bank for repayment or recovery of any amount or amounts   received by Bank in payment or on account of any of the Liabilities and Bank   repays all or part of said amount by reason of any judgment, decree or order   of any court or administrative body having jurisdiction over Bank or any of   its property or any settlement or compromise of any such claim effected by   Bank with any such claimant (including Principal), then the Guarantor agrees   that any such judgment, decree, order, settlement or compromise shall be   binding upon the Guarantor, notwithstanding any revocation hereof or the   cancellation of any note or other instrument evidencing any Liability, and the   Guarantor shall be and remain liable to Bank hereunder for the amount so   repaid or recovered to the same extent as if such amount had never originally   been received by Bank.
  
	
  
 
  	
  
 
  
	
  15.
  	
  
Any   acknowledgment, new promise, payment of principal or interest, or otherwise,   whether by Principal or others (including the Guarantor), with respect to any   of the Liabilities shall, if the statute of limitations in favor of the   Guarantor against Bank shall have commenced to run, toll the running of such   statute of limitations and, if the period of such statute of limitations   shall have expired, prevent the operation of such statute of limitations.
  
	
  
 
  	
  
 
  
	
  
16.
  	
  
Bank shall   not be bound to take any steps necessary to preserve any rights in any of the   property of the Guarantor against prior parties who may be liable in   connection therewith, and the Guarantor hereby agrees to take any such   steps.  Bank may, nevertheless, at any   time after and during the continuance of a default (a) take any action it may   deem appropriate for the care or preservation of such property or of any   rights of the Guarantor or Bank therein, (b) demand, sue for, collect or   receive any money or property at any time due, payable or receivable on   account of or in exchange for any property of the Guarantor, (c) compromise   and settle with any person liable on such property, or (d) extend the time of   payment or otherwise change the terms thereof as to any party liable thereon,   all without notice to, without incurring responsibility to, and without   affecting any of the obligations of the Guarantor.
  

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  17.
  	
  
No delay on   the part of Bank in exercising any of its options, powers or rights, or   partial or single exercise thereof, shall constitute a waiver thereof. No   waiver of any of its rights hereunder, and no modification or amendment of   this guaranty, shall be deemed to be made by Bank unless the same shall be in   writing, duly signed on behalf of Bank, and each such waiver, if any, shall   apply only with respect to the specific instance involved, and shall in no   way impair the rights of Bank or the obligations of the Guarantor to Bank in   any other respect at any other time.
  
	
  
 
  	
  
 
  
	
  
18.
  	
  
Bank shall   not be required to proceed first against Principal, or any other person, firm   or corporation, whether primarily or secondarily liable, or against any   collateral security held by it, before resorting to the Guarantor for   payment, and the Guarantor shall not be entitled to assert as a defense to   the enforceability of the guaranty set forth herein any defense of Principal   with respect to any Liability.
  
	
  
 
  	
  
 
  
	
  
19.
  	
  
Guarantor   hereby subordinates any and all indebtedness of Principal now or hereafter   owed to Guarantor to all indebtedness of Principal to Bank, and agrees with   Bank that Guarantor shall not demand or accept any payment of principal or   interest from Principal, shall not claim any offset or other reduction of   Guarantor’s obligations hereunder because of any such indebtedness and shall   not take any action to obtain any of the security described in and encumbered   by the security instruments; provided, however, that, if Bank so requests,   such indebtedness shall be collected, enforced and received by Guarantor as   trustee for Bank and be paid over to Bank on account of the indebtedness of   Principal to Bank, but without reducing or affecting in any manner the   Liability of Guarantor under the other provisions of this Guaranty.
  
	
   
  	
  
 
  
	
  
20.
  	
  
Guarantor   warrants and represents to Bank that all financial statements heretofore   delivered by said Guarantor to Bank are true and correct in all respects as   of the date hereof.
  

	
  
 
  	
  
a.
  	
  
Guarantor   shall promptly, from time to time, furnish Bank with such financial reports   and data as Bank may request.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
b.
  	
  
Bank shall   have no duty to pass on to Guarantor at any time its knowledge about the   financial affairs or condition of Principal or of any other Guarantor of the   Liabilities.  Guarantor warrants that   it has independent means to keep itself informed about these matters.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
c.
  	
  
The Bank is   hereby authorized to deliver a copy of any financial statements, tax returns   or any other information relating to the business operations or financial   condition of any  Guarantor which may   be furnished to it or come to its attention pursuant to the Loan Documents or   otherwise, to any regulatory body or agency having jurisdiction over Bank or   to any person which shall, or shall have the right or obligation to, succeed   to all or any part of  Bank’s interest   (or any interest) in the Loan Documents.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
21.
  	
  
This   guaranty may not be changed orally or by implication, and no obligation of   Guarantor can be released or waived by Bank or any officer or agent of Bank,   except by a writing, signed by a duly authorized officer of Bank.  This guaranty shall be irrevocable by   Guarantor until all indebtedness guaranteed hereby has been completely repaid   and all obligations and undertakings of Principal under, by reason of, or   pursuant to the note and loan documents have been completely performed.
  

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22.
  	
  
If from any   circumstances whatsoever fulfillment of any provisions of this guaranty, at   the time performance of such provision shall be due, shall involve   transcending the limit of validity prescribed by any applicable usury statute   or any other applicable law as of the date hereof, with regard to obligations   of like character and amount, then ipso facto the obligation to be fulfilled   shall be reduced to the limit of such validity, so that in no event shall any   exaction be possible under this guaranty that is in excess of the limit of   such validity as of the date hereof, but such obligation shall be fulfilled   to the limit of such validity.  The   provisions of this paragraph shall control over every other provision of this   guaranty.
  
	
  
 
  	
  
 
  
	
  
23.
  	
  
The failure   of any other person to sign this guaranty shall not release or affect the   obligations or liability of the Guarantor.    If more than one party executes this Guaranty, the obligations of the   Guarantor hereunder shall be joint and several and the term “Guarantor” shall   include each as well as all of them. This Guaranty may be executed in any   number of counterparts, each of which shall be deemed an original instrument,   but all such counterparts together shall constitute one and the same   instrument.
  
	
  
 
  	
  
 
  
	
  
24.
  	
  
The term   “Guarantor” wherever used herein shall mean the Guarantor or any one or more   of them. Anyone executing this guaranty shall be bound by the terms hereof   without regard to execution by anyone else. This guaranty is binding upon the   Guarantor, his, their, or its executors, administrators, successors or assigns,   and shall inure to the benefit of Bank, its successors, endorsees or assigns.   This Guaranty shall in no event be impaired by any change which may arise by   reason of the death of Principal or Guarantor, if individuals, or by reason   of the dissolution of Principal or Guarantor, if Principal or Guarantor is a   corporation or partnership.
  
	
   
  	
  
 
  
	
  
25.
  	
  
Notwithstanding   anything to the contrary in this guaranty, the Guarantor hereby irrevocably   waives all rights it may have at law or in equity (including, without limitation,   any law subrogating the Guarantor to the rights of the Bank) to seek   contribution, indemnification, or any other form of reimbursement from the   Principal, or any other person now or hereafter primarily liable for any   obligation of the Principal to the Bank, for any disbursement made by the   Guarantor under or in connection with this guarantee or otherwise.
  
	
  
 
  	
  
 
  
	
  
26.
  	
  
This   agreement has been delivered in the State of Florida and shall be construed   in accordance with the laws of Florida. Wherever 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. To the extent permitted by applicable law, the Guarantor   hereby waives any provision of law that renders any provision hereof   prohibited or unenforceable in any respect. Guarantor, whether or not a   Florida resident, hereby waives any plea or claim of lack of personal   jurisdiction or improper venue in any action, suit or proceeding brought upon   to enforce this Guaranty or the Liabilities.    The Guarantor
specifically authorizes any such action to be instituted   and prosecuted in any Circuit Court in Florida, or United States District   Court of Florida, at the election of Bank, where venue would lie and be   proper against any Principal.
  

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27.
  	
  
GUARANTOR   AND BANK HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT   EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON,   OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTY AND ANY   AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE   OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR   ACTIONS OF EITHER PARTY.  THIS   PROVISION IS A MATERIAL INDUCEMENT FOR THE BANK MAKING THE LOAN OR EXTENSION   OF CREDIT EVIDENCED BY THIS AGREEMENT.
  

Signatures on following page

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Dated this   July 13, 2006.
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Signed,   sealed and delivered
   in the presence of:
  	
  
 
  	
  
“GUARANTOR”
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
THE   GOLDFIELD CORPORATION,
  
	
  
 
  	
  
 
  	
  
 
  	
  
a Delaware   corporation
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
By:
  	
  
/s/ STEPHEN   R. WHERRY
  
	
  
 
  	
  
/s/ DORITA   M. PRESSLEY
  	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  
STEPHEN R.   WHERRY
  
	
  
  
  	
  
Print Name:  DORITA M.   PRESSLEY
  	
  
 
  	
  
 
  	
  
Treasurer
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
/s/ GERALYN   M. KAISER
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Print Name:  GERALYN M.   KAISER 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
STATE OF   GEORGIA
  	
  
 
  	
  
 
  	
  
 
  
	
  
COUNTY OF   GWINNETT
  	
  
 
  	
  
 
  	
  
 
  

          The foregoing instrument was executed and  acknowledged before me this July 13, 2006, by STEPHEN R. WHERRY, as Treasurer of THE GOLDFIELD CORPORATION, a Delaware corporation, on its behalf.

	
   
  	
  
 
  	
  
/s/ RHONDA   M. BROWN
  
	
  
 
  	
  
 
  	
  

  
	
  
(SEAL)
  	
  
 
  	
  
Signature of   Notary Public
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
RHONDA M.   BROWN 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Name of   Notary Public
  
	
   
  	
   
  	
  (Typed,   Printed or stamped)
  

Personally Known  ____________ OR  Produced Identification _________________________

 Type of Identification Produced: __________________________________________________

8EXHIBIT 10-4

SECURITY AGREEMENT

          THIS SECURITY AGREEMENT made this July 13, 2006, by SOUTHEAST POWER CORPORATION, a Florida corporation (herein called “Debtor”), having an address of 1805 Hammock Road, Titusville, Florida 32796, in favor of BRANCH BANKING AND TRUST COMPANY (herein, together with its successors and assigns, called “Secured Party”), having an address of 1300 S. Babcock Street, Melbourne, Florida 32901.

          In consideration of loans, advances or other financial accommodations made or to be made by Secured Party to Debtor and for other value received by Debtor, the parties hereto, intending to be legally bound, agree as follows:

          l.          Security Interest.  Debtor grants to Secured Party a continuing security interest (the “Security Interest”) in all equipment, furniture, furnishings, fixtures, machinery, appliances and any other personal property or fixtures of every kind and description which are financed or paid for with proceeds from the Revolving Line of Credit Note, and in all increases, parts, fittings, accessories, attachments, additions, and accessions thereto, substitutions and replacements therefor and in all proceeds thereof in any form, together with all records relating thereto.

          2.          Indebtedness Secured.  The borrowing relationship between Debtor and Secured Party is to be a continuing one and is intended to cover numerous types of extensions of credit, loans, overdraft payments, or advances made directly or indirectly to Debtor.  Accordingly, this Security Agreement and the Security Interest created hereby secures payment of that certain: (i) revolving line of credit promissory note (the “Revolving Line of Credit Note”) of Debtor to Secured Party, dated of even date herewith in the original principal amount of $3,500,000.00 and all obligations of any kind owing by Debtor to Secured Party whether now existing or hereafter incurred, direct or indirect, primary or secondary, sole or joint and several, contingent or non-contingent, liquidated or non-liquidated, or otherwise, arising from
loans, advances, guaranties, endorsements or otherwise, whether related or unrelated to the purpose of the original extension of credit, whether of the same or a different class as the primary obligation, and whether the obligations are from time to time reduced and thereafter increased or entirely extinguished and new obligations thereafter incurred, including, without limitation, any sums advanced and any expenses or obligations incurred by Secured Party pursuant to this Security Agreement (including attorneys’ fees and costs as provided herein) or any other agreement concerning, evidencing or securing obligations of Debtor to Secured Party, and any liabilities of Debtor to Secured Party arising from any source whatsoever and all extensions, renewals and modifications thereof (collectively, the “Indebtedness”).

          3.          Representations and Warranties of Debtor.  Debtor represents and warrants and so long as this Security Agreement continues in force as provided in paragraph 7 hereof shall be deemed continuously to represent and warrant that:

                       (a)          Debtor is the sole and absolute owner of the Collateral free of all security interests and other encumbrances or claims whatsoever except the Security Interest.

                       (b)          Debtor is authorized to enter into this Security Agreement and into the transactions evidenced by the Collateral. 

                       (c)          The Collateral is used or bought for use primarily for business purposes.

                       (d)          If the Collateral is or will become a fixture, it will be affixed to real property located at 1805 Hammock Road, Titusville, Florida 32796.

                       (e)          By virtue of this Security Agreement and the perfection of the Security Interest as provided in paragraph 1 hereof, Secured Party has a valid, enforceable, perfected and first priority security interest in the Collateral.

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          4.          General Covenants of Debtor.  So long as this Security Agreement continues in force as provided in paragraph 7 hereof, Debtor:  (a)  will defend the Collateral against the claims and demands of all other persons at any time claiming the same; keep the Collateral free from all security interests or other encumbrances or claims whatsoever except the Security Interest and will not sell, transfer, assign, deliver or otherwise dispose of any of the Collateral or any interest therein without the prior written consent of Secured Party; (b) will not without the prior written consent of Secured Party create in favor of anyone other than Secured Party a security interest in any of the Collateral; (c) will keep the Collateral at the addresses specified in 3(d) above until Secured Party is notified in writing of any change in its
location within the State of Florida but Debtor will not remove the Collateral from the State of Florida or change the location of Debtor’s chief executive offices without the prior written consent of Secured Party, will notify Secured Party promptly in writing of any change in Debtor’s address, name or identity from that specified above, and will permit Secured Party or its agents to inspect the Collateral at any time, wherever located; (d)  will keep the Collateral in good condition and repair and will not use the Collateral in violation of any provisions of this Security Agreement, of any applicable statute, regulation or ordinance or of any policy of insurance insuring the Collateral; (e) will notify Secured Party promptly in writing of any change in Debtor’s address, name or identity specified above, of any change in the location or of any additional locations at which the Collateral is kept and of any change in the address at which records concerning the Collateral are kept;
(f) in connection herewith will execute and deliver to Secured Party such financing statements and other documents, pay all costs of title searches and filing financing statements and other documents in all public offices requested by Secured Party and take such other action as Secured Party may deem necessary or advisable to perfect the Security Interest created by this Security Agreement; (g) will pay or cause to be paid all taxes, assessments and other charges of every nature which may be levied or assessed against the Collateral or against any note or other instrument evidencing the Indebtedness; (h) will keep the Collateral insured in amounts not less than the full insurable value thereof for the benefit of Secured Party (to whom loss shall be payable by New York Standard or Union Standard endorsements), in such companies and against such risks as may be satisfactory to or required by Secured Party (and each policy shall specifically provide that it may not be cancelled or modified adversely to
the interests of Secured Party without 30 days prior written notice to Secured Party), pay the cost of all such insurance, and deliver certificates evidencing such  insurance to Secured Party, and Debtor assign to Secured Party all right to receive proceeds of such insurance; (i)  will prevent the Collateral or any part thereof from being or becoming an accession to other goods not covered by this Security Agreement; (j) unless the Collateral is specified in paragraph 3(d) as a fixture, will prevent the Collateral or any part of the Collateral from being or becoming a fixture; and (k) if any certificate of title may be issued with respect to any of the Collateral, Debtor will cause the Security Interest granted hereunder to Secured Party to be properly noted on the certificate and will deliver the original certificate to Secured Party. Further, filings of liens on titled vehicles are to be perfected within 60 days of the related advance under the Revolving Line of Credit Note.

          5.          Default.  (a)  Any of the following events or conditions shall constitute an event of default (“Event of Default”) hereunder:  (i) non-payment when due whether by acceleration or otherwise of the principal of, or interest on any Indebtedness, time being of the essence, or failure of any Obligor (which term shall mean and include each Debtor and any endorser, surety, guarantor or other party liable for payment of, or pledging collateral as security for, any Indebtedness) to pay any sum due under any note or other instrument evidencing the Indebtedness; (ii) failure by any Obligor to perform any obligations under this Security Agreement or any other agreement between any Obligor and Secured Party; (iii) filing of any petition under the Bankruptcy Code, or any similar federal or state statute, by or
against any Obligor, or the insolvency of any Obligor; (iv) making a general assignment by any Obligor for the benefit of creditors, appointment of or taking possession by a receiver, trustee, custodian or similar official for any Obligor or for any assets of any such Obligor, or institution by or against any Obligor of any kind of insolvency proceedings or any proceeding for the dissolution or liquidation of any Obligor or transfer of a substantial part of the property of any Obligor; (v) material falsity in any certificate, statement, representation, warranty or audit at any time furnished to Secured Party by or on behalf of any Obligor, pursuant to or in connection with this Security Agreement or otherwise (including warranties in this Security Agreement) and including any omission to disclose any substantial contingent or liquidated liabilities or any material adverse change in any facts disclosed by any certificate, statement, representation, warranty, or audit furnished to Secured Party; (vi)
issuing of any writ of attachment or writ of garnishment, or filing of any lien, against the Collateral or the property of any Obligor; (vii) taking of possession of the Collateral or of any substantial part of the property of any Obligor at the instance of any governmental authority; (viii) dissolution, merger, consolidation or reorganization of any Obligor; (ix) assignment or sale by Debtor of any equity in any of the Collateral without the prior written consent of Secured Party; (x) cancellation of any guaranty with respect to any Indebtedness without the prior written consent of Secured Party.

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          (b)          Secured Party may declare all or part of the Indebtedness to be immediately due and payable without notice or demand upon the happening of any Event of Default or if the Secured Party deems itself insecure.  This paragraph is not intended to affect any rights of Secured Party with respect to any Indebtedness which may now or hereafter be payable on demand.

          (c)          Upon the happening of any Event of Default, Secured Party’s rights and remedies with respect to the Collateral shall be those of a secured party under the Uniform Commercial Code and any other applicable law from time to time in effect.  Secured Party shall also have any additional rights granted herein and in any other agreement now or hereafter in effect between Debtor and Secured Party.  If requested by Secured Party, the Debtor, at its expense, will assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party.

          (d)          Debtor agree that any notice by Secured Party of the sale or disposition of the Collateral or any other intended action hereunder, whether required by the Uniform Commercial Code or otherwise, shall constitute reasonable notice to Debtor if the notice is mailed by regular or certified mail, postage prepaid, at least five days before the action to Debtor’s address as specified in this Security Agreement or to any other address which Debtor has specified in writing to Secured Party as the address to which notices shall be given to Debtor.

          (e)          Debtor jointly and severally, shall pay all costs and expenses incurred by the Secured Party in enforcing this Security Agreement, realizing upon any Collateral and collecting any Indebtedness, including reasonable attorneys’ fees whether suit is brought or not and whether incurred in connection with collection, trial, appeal, Bankruptcy or otherwise, all of which costs and expenses shall be secured hereby, and shall be liable for any deficiencies in the event the proceeds of disposition of the Collateral do not satisfy the Indebtedness in full.  All such proceeds shall be applied without marshalling of assets (i) first to the expenses of retaking and preparing the Collateral for sale, including expenses of sale, (ii) next to other costs and attorneys’ fees incurred by Secured Party in exercising its rights and remedies under
this Security Agreement, and (iii) finally to the payment of interest and/or principal due on the Indebtedness, in such order and to such Indebtedness as Secured Party may determine.

          6.          Miscellaneous.  (a)  Debtor authorizes Secured Party without notice to Debtor and without affecting Debtor’s obligations hereunder from time to time (i) to renew, extend, increase, accelerate or otherwise change the time for payment of the principal of or the interest on the Indebtedness or any part thereof; (ii) to take from any party and hold collateral (other than the Collateral) for the payment of the Indebtedness or any part thereof and to exchange, enforce or release such collateral or the Collateral or any part thereof; (iii) to accept and hold any endorsement or guaranty of payment of the Indebtedness or any part thereof and to release or substitute any such endorser or guarantor, or any party who has given any security interest in any collateral as security for the payment of the Indebtedness or any part
thereof or any party in any way obligated to pay the Indebtedness or any part thereof; and (iv) to waive or fail to enforce any of Secured Party’s rights against Debtor or any such collateral or the Collateral; and (v) upon the occurrence of any Event of Default to direct the order or manner of the disposition of the Collateral and any other collateral and the enforcement of any endorsements and guaranties relating to the Indebtedness or any part thereof as Secured Party in its sole discretion may determine.

          (b)          Debtor authorize Secured Party at Debtor’s expense to file any financing statement or statements relating to the Collateral (without Debtor’s signature thereon) which Secured Party deems appropriate, and Debtor irrevocably appoint Secured Party as Debtor’s  attorney-in-fact to execute any such financing statement or statements in Debtor’s name and to perform all other acts which Secured Party deems appropriate to perfect and to continue perfection of the Security Interest.  At the option of Secured Party, this Security Agreement, or a photocopy thereof, shall be deemed to be a financing statement authorized to be filed in such jurisdictions where such filing will be given effect.

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          (c)          Debtor hereby irrevocably consent to any act by Secured Party or its agents in entering upon any premises for the purpose of either (1) inspecting the Collateral or (2) taking possession of the Collateral after any Event of Default; and Debtor hereby waives its right to assert against Secured Party or its agents any claim based upon trespass or any similar cause of action for entering upon any premises where the Collateral may be located.

          (d)          Before or after any Event of Default Secured Party may notify any party obligated to pay proceeds of the existence of the Security Interest and may also direct them to make payments of all proceeds to Secured Party.

          (e)          Secured Party may demand, collect and sue for all proceeds (either in Debtor’s name or Secured Party’s name at the latter’s option) with the right to enforce, compromise, settle or discharge any proceeds.  

          (f)          Debtor authorize Secured Party to collect and apply against the Indebtedness any refund of insurance premiums or any insurance proceeds payable on account of the loss of or damage to any of the Collateral and to endorse any check or draft representing insurance proceeds.

          (g)          After an event of default, without limiting any other right of Secured Party, whenever Secured Party has the right to declare any Indebtedness to be immediately due and payable (whether or not it has so declared), Secured Party may set off against the Indebtedness all monies then owed to Debtor by Secured Party in any capacity whether due or not and Secured Party shall be deemed to have exercised its right of set off immediately at the time its right to such election accrues.

          (h)          Upon Debtor’s failure to perform any of its duties hereunder Secured Party may, but it shall not be obligated to, perform any of such duties and Debtor jointly and severally, shall forthwith upon demand reimburse Secured Party for any expense incurred by Secured Party in doing so, together with interest thereon at the highest rate permitted by applicable law.

          (i)          No delay or omission by Secured Party in exercising any right hereunder or with respect to any Indebtedness shall operate as a waiver of that or any other right, and no single or partial exercise of any right shall preclude Secured Party from any other or future exercise of the right or the exercise of any other right or remedy.  Secured Party may cure any Event of Default by Debtor in any reasonable manner without waiving the Event of Default so cured and without waiving any other prior or subsequent Event of Default by Debtor. All rights and remedies of Secured Party under this Security Agreement and under the Uniform Commercial Code shall be deemed cumulative.

          (j)          Secured Party shall have no obligation to take and Debtor shall have the sole responsibility for taking any steps to preserve rights against all prior parties to any instrument or chattel paper in Secured Party’s possession as proceeds of the Collateral.  Debtor waives notice of dishonor and protest of any instrument constituting Collateral at any time held by Secured Party on which the Debtor is in any way liable and waives notice of any other action by Secured Party.

          (k)          The rights and benefits of Secured Party under this Security Agreement shall, if Secured Party agrees, inure to any party acquiring an interest in the Indebtedness or any part thereof.  Secured Party may from time to time honor drafts or otherwise advance funds to permit Debtor to purchase additional equipment. Any equipment purchased with such funds shall become part of the Collateral.  Secured Party may from time to time furnish Debtor with memoranda or wholesale ledger sheets describing equipment for which it has advanced funds.  All inventory so described shall conclusively be deemed part of the Collateral unless Debtor notifies Secured Party within five days of items which are not properly part of the Collateral. Memoranda or wholesale ledger sheets may be furnished to Debtor in the same manner as other notices under
paragraph 8(d) of this Security Agreement.

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          (l)          The terms “Secured Party” and “Debtor” as used in this Security Agreement include the heirs, personal representatives, and successors or assigns of those parties.  The terms “inventory”, “accounts”, “general intangibles” and “chattel paper” as used in this Security Agreement shall have the meanings given to such terms in the Florida Uniform Commercial Code. Whenever used herein, the singular number shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders.

          (m)          If more than one Debtor executes this Security Agreement, the terms “Debtor” includes each of the Debtors, as well as all of them, and their obligations under this Security Agreement shall be joint and several.

          (n)          This Security Agreement is a continuing agreement which shall remain in force until it is marked “Cancelled” and returned to Debtor by Secured Party upon payment in full of all Indebtedness (and no further right on the part of the Debtor to obtain any advances or other disbursements from Secured Party) and, until such time, this Security Agreement shall continue to secure all of the Indebtedness and any extensions, renewals or modifications of the Indebtedness.

          (o)          This Security Agreement shall be construed under and governed by the Florida Uniform Commercial Code and any other applicable Florida laws in effect from time to time.

          (p)          This Security Agreement constitutes the complete agreement of the parties in regard to the matters set forth herein and this Security Agreement may not be modified or amended and no provision hereof shall be waived except by a writing signed by the party to be charged with such modification, amendment or waiver.

          7.          Waiver.  The Debtor hereby waives any rights Debtor may have to notice and a hearing before possession or sale of Collateral is effected by Secured Party by self-help, replevin, attachment or otherwise.  Debtor further waives any right to a trial by jury in any civil action arising out of, or based upon, this Security Agreement or the Collateral.

          8.           Waiver of Venue and Jurisdiction.  Debtor, whether or not a Florida resident, hereby waives any plea or claim of lack of personal jurisdiction or improper venue in any action, suit or proceeding brought upon to enforce this Security Agreement or the Debtor’s obligations and liabilities hereunder.  The Debtor specifically authorize any such action to be instituted and prosecuted in any Circuit Court in Florida, or United States District Court of Florida, at the election of Secured Party, where venue would lie and be proper against any Debtor.

          9.          Waiver of Jury Trial.  SECURED PARTY AND DEBTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS HYPOTHECATION SECURITY AGREEMENT AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE SECURED PARTY ENTERING INTO THIS AGREEMENT.

Signatures on following page

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          IN WITNESS WHEREOF, Debtor have duly executed this Security Agreement as of the date first above written.

	
  
Signed, sealed and   delivered
  	
  
 
  	
  
 
  	
  
 
  
	
  
in the presence of:
  	
  
 
  	
  
“BORROWER”
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
SOUTHEAST   POWER CORPORATION,
  
	
  
 
  	
  
 
  	
  
 
  	
  
a   Florida corporation
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
/s/ GERALYN M. KAISER
  	
  
 
  	
  
By:
  	
  
/s/ STEPHEN R. WHERRY
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
   
  	
  
Print Name:  GERALYN M. KAISER
  	
  
 
  	
  
 
  	
  
STEPHEN R. WHERRY
  
	
  
 
  	
  
Witness
  	
  
 
  	
  
 
  	
  
Treasurer
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
/s/ RHONDA BROWN
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
Print Name:  RHONDA BROWN
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Witness
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
“LENDER”
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
BRANCH   BANKING AND TRUST COMPANY
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
/s/ VICTORIA COSTA
  	
  
 
  	
  
By:
  	
  
/s/ BARRY FORBES
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  

  	
  
Print Name:  VICTORIA COSTA
  	
  
 
  	
  
Name:
  	
  
BARRY FORBES
  
	
   
  	
  
Witness
  	
  
 
  	
  
Title:
  	
  
SVP
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
/s/ RUTH SUMAN
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Print Name:  RUTH SUMAN
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  Witness
  	
   
  	
   
  	
   
  

6

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