Document:

Secutiry Agreement

 Exhibit 10.4 
  
 SECURITY AGREEMENT 
  
 THIS SECURITY AGREEMENT (the “Agreement”) dated July 1, 2005, is by and among TTSI Holdings Inc., an Indiana corporation (“the
“Debtor”) and Segmentz, Inc., a Delaware corporation (the “Secured Party”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Secured Party has extended loans to Debtor concurrently herewith pursuant to the terms of a promissory note issued by Debtor to Secured Party in the principal amount of $105,000 (the “1st Note”) and a line of credit promissory note issued by Debtor to Secured Party in the principal amount of up to $250,000 (the “2nd Note” and together with the 1st Note the “Notes”); and 
  
 WHEREAS, in order to induce the Secured Party to extend the loans evidenced by the Notes, the Debtor has agreed to execute and deliver to the Secured Party this Agreement to grant the Secured Party a security interest
in certain property of the Debtor to secure the prompt payment, performance and discharge in full of all of the Debtor’s obligations under the Notes. 
  
 NOW, THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows: 
  
 1. Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such
as “receivables” and “proceeds”) shall have the respective meanings given such terms in Article 9 of the UCC. 
  
 (a) “Collateral” means the collateral in which the Secured Party is granted a security interest by this Agreement and which
shall include the following, whether presently owned or existing or hereafter acquired or coming into existence, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products and accounts
thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of insurance covering the same and of any tort claims in connection therewith: 
  
 (i) All assets of Debtor set forth on the attached Schedule 1(a)(i), together with all documents of title
and documents representing the same, all additions and accessions thereto, replacements therefor, all parts therefor, all substitutes for any of the foregoing and all improvements thereto (collectively, the “Purchase Assets”); and

  
 (ii) All receivables of the Debtor including
all insurance proceeds, and rights to refunds or indemnification whatsoever owing, 
  

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together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising, goods, and equipment which any of
the same may represent, and all right, title, security and guaranties with respect to each receivable; and 
  
 (iii) All products and proceeds of all of the foregoing Collateral set forth in clauses (i) and (ii) above. 
  
 (b) “Obligations” means all of the Debtor’s
obligations under this Agreement and the Notes, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether
or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or
indirectly from the Secured Party as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time. 
  
 (c) “UCC” means the Uniform Commercial Code of the State of Florida. 
  
 2. Grant of Security Interest. As an inducement for the Secured
Party to extend the loans as evidenced by the Notes and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations, the Debtor hereby, unconditionally and irrevocably, pledges, grants
and hypothecates to the Secured Party, a continuing security interest in, a lien upon and a right of set-off against all of its right, title and interest of whatsoever kind and nature in and to the Collateral (the “Security Interest”).

  
 3. Representations, Warranties, Covenants and Agreements
of the Debtor. The Debtor represents and warrants to, and covenants and agrees with, the Secured Party as follows: 
  
 (a) The Debtor has the requisite corporate power and authority to enter into this Agreement and otherwise to carry out its obligations
hereunder. The execution, delivery and performance by the Debtor of this Agreement and the filings contemplated therein have been duly authorized by all necessary action on the part of the Debtor and no further action is required by the Debtor.

  
 (b) The Debtor represents and warrants that
it has no place of business or offices where its books of account and records are kept other than 5601 Fortune Circle South Drive, Suite S, Indianapolis, Indiana 46241 (the “Executive Office”). 
  
 (c) The Debtor is the sole owner of the Collateral, free and
clear of any liens, security interests, encumbrances, rights or claims, and is fully authorized to grant the Security Interest in and to pledge the Collateral. There is 
  

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 not on file in any governmental or regulatory authority, agency or recording office an effective
financing statement, security agreement, license or transfer or any notice of any of the foregoing (other than those that have been filed in favor of the Secured Party pursuant to this Agreement) covering or affecting any of the Collateral. So long
as this Agreement shall be in effect, Debtor shall not execute and shall not knowingly permit to be on file in any such office or agency any such financing statement or other document or instrument (except to the extent filed or recorded in favor of
the Secured party pursuant to the terms of this Agreement). 
  
 (d) This Agreement creates in favor of the Secured Party a valid security interest in the Collateral securing the payment and performance of the Obligations and, upon making the filings described in the immediately
following sentence, a perfected security interest in such Collateral. Except for the filing of financing statements pursuant to the UCC with the proper filing and recording agencies, no authorization or approval of or filing with or notice to any
governmental authority or regulatory body is required either (i) for the grant by the Debtor of, or the effectiveness of, the Security Interest granted hereby or for the execution, delivery and performance of this Agreement by the Debtor or (ii) for
the perfection of or exercise by the Secured Party of its rights and remedies hereunder. 
  
 (e) No part of the Collateral has been judged invalid or unenforceable. No written claim has been received that any Collateral or
Debtor’s use of any Collateral violates the rights of any third party. There has been no adverse decision to Debtor’s claim of ownership rights in or exclusive rights to use the Collateral in any jurisdiction or to Debtor’s right to
keep and maintain such Collateral in full force and effect, and there is no proceeding involving said rights pending or, to the best knowledge of the Debtor, threatened before any court, judicial body, administrative or regulatory agency, arbitrator
or other governmental authority. 
  
 (f) The
execution, delivery and performance of this Agreement by the Debtor does not conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing Debtor’s debt or otherwise) or other understanding to which Debtor is a party or by
which any property or asset of the Debtor is bound or affected. No consent (including, without limitation, from stock holders or creditors of the Debtor) is required for the Debtor to enter into and perform its obligations hereunder. 
  
 (g) The Debtor shall at all times maintain the liens and
Security Interest provided for hereunder as valid and perfected liens and security interests in the Collateral in favor of the Secured Parties until this Agreement and the Security Interest hereunder shall be terminated. The Debtor hereby agrees to

  

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 defend the same against any and all persons. The Debtor shall safeguard and protect all Collateral for
the account of the Secured Party. At the request of the Secured Party, the Debtor will sign and deliver to the Secured Party at any time or from time to time one or more financing statements pursuant to the UCC in form reasonably satisfactory to the
Secured Party and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the Secured Party to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting the
generality of the foregoing, the Debtor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the Security Interest hereunder, and the Debtor shall obtain and furnish to the Secured Party from time to time, upon
demand, such releases and/or subordinations of claims and liens which may be required to maintain the priority of the Security Interest hereunder. 
  
 (h) The Debtor will not transfer, pledge, hypothecate, encumber, license (except for non-exclusive licenses granted by debtor in its
ordinary course of business and sales of inventory), sell or otherwise dispose of any of the Collateral without the prior written consent of the Secured Party. 
  

(i) The Debtor shall, within two (2) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of
any substantial change in the Collateral, and of the occurrence of any event which would have a material adverse effect on the value of the Collateral or on the Secured Party’s security interest therein. 
  
 (j) The Debtor shall promptly execute and deliver to the
Secured Party such further deeds, mortgages, assignments, security agreements, financing statements or other instruments, documents, certificates and assurances and take such further action as the Secured Party may from time to time request and may
in its sole discretion deem necessary to perfect, protect or enforce its security interest in the Collateral. 
  
 (k) The Debtor shall at all times maintain the Collateral, and its books of account and records relating to the Collateral, at the
Executive Office, and may not relocate such books of account and records or tangible Collateral unless they deliver to the Secured Parties at least 30 days prior to such relocation written notice of such relocation and the new location thereof
(which must be within the United States). 
  
 (l)
The Debtor shall keep and preserve its tangible Collateral in good condition, repair and order and shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage. 
  
 (m) The Debtor shall permit the Secured Party and its
representatives and agents to inspect the Collateral at any time, and to make copies of records pertaining to the Collateral as may be requested by a Secured Party from time to time. 
  

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 (n) The Debtor shall take all steps reasonably necessary to diligently pursue and seek to
preserve, enforce and collect any rights, claims, causes of action and accounts receivable in respect of the Collateral. 
  
 (o) The Debtor shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment,
execution or other legal process levied against any Collateral and of any other information received by the Debtor that may materially affect the value of the Collateral, the Security Interest or the rights and remedies of the Secured Parties
hereunder. 
  
 (p) All information heretofore,
herein or hereafter supplied to the Secured Parties by or on behalf of the Debtor with respect to the Collateral is accurate and complete in all material respects as of the date furnished. 
  
 (q) The Debtor shall at all times preserve and keep in full
force and effect its existence and good standing and any rights and franchises material to its business. 
  
 (r) The Debtor will not change its name, corporate structure, or identity, or add any new fictitious name unless it provides at least 30
days prior written notice to the Secured Party of such change and, at the time of such written notification, such Debtor provides any financing statements or fixture filings necessary to perfect and continue perfected the Security Interest granted
and evidenced by this Agreement. 
  
 (s) The
Debtor may relocate its Executive Office to a new location only upon providing 30 days prior written notification thereof to the Secured Party. 
  
 4. Defaults. The following events shall be “Events of Default”: 
  
 (a) The occurrence of an Event of Default (as defined in either Note) under either Note; 
  
 (b) Any representation or warranty of debtor in this
Agreement shall prove to have been incorrect in any material respect when made; 
  
 (c) The failure by a Debtor to observe or perform any of its obligations hereunder; or 
  
 (d) If any provision of this Agreement shall at any time for
any reason be declared to be null and void, or the validity or enforceability thereof shall be contested by Debtor, or a proceeding shall be commenced by Debtor, or by any 
  

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 governmental authority having jurisdiction over Debtor, seeking to establish the invalidity or
unenforceability thereof, or Debtor shall deny that Debtor has any liability or obligation purported to be created under this Agreement. 
  
 5. Duty to Hold In Trust. Upon the occurrence of any Event of Default and at any time thereafter, the Debtor shall, upon receipt of any
revenue, income or other sums subject to the Security Interest, whether payable pursuant to the Notes or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in
trust for the Secured Party and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Party for application to the satisfaction of the Obligations. 
  
 6. Rights and Remedies upon Default. Upon the occurrence and during the continuance of any Event of Default,
the Secured Party shall have the right to exercise all of the remedies conferred hereunder and under the Notes, and the Secured Party shall have all the rights and remedies of a secured party under the UCC. Without limitation, the Secured Party
shall have the following rights and powers: 
  
 (a) The Secured Party shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance of any person, any premises where the Collateral, or any part thereof, is or may be placed and remove
the same, and the Debtor shall assemble the Collateral and make it available to the Secured Party at places which the Secured Party shall reasonably select, whether at the Debtor’s premises or elsewhere, and make available to the Secured Party,
without rent, all of the Debtor’s respective premises and facilities for the purpose of the Secured Party taking possession of, removing or putting the Collateral in saleable or disposable form. 
  
 (b) The Secured Party shall have the right to operate the
business of the Debtor using the Collateral and shall have the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without special conditions or
stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions as the Secured Party may deem commercially reasonable, all without
(except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to the Debtor or right of redemption of debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other
transfer of Collateral, the Secured Party may, unless prohibited by applicable law which cannot be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of the
Debtor, which are hereby waived and released. 
  
 7.
Applications of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder shall be applied first to the expenses of retaking, holding, storing, processing and preparing for sale, selling, and the like
(including, 
  

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 without limitation, any taxes, fees and other costs incurred in connection therewith) of the Collateral, to the
reasonable attorneys’ fees and expenses incurred by the Secured Party in enforcing its rights hereunder and in connection with collecting, storing and disposing of the Collateral, and then to satisfaction of the Obligations, and to the payment
of any other amounts required by applicable law, after which the Secured Party shall pay to the applicable Debtor any surplus proceeds. If, upon the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay
all amounts to which the Secured Party is legally entitled, the Debtor will be liable for the deficiency. 
  
 8. Responsibility for Collateral. The Debtor assumes all liabilities and responsibility in connection with all Collateral, and the
Obligations will in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its unavailability for any reason. 
  
 9. Term of Agreement. This Agreement and the Security Interest shall terminate on the date on which all
payments under the Notes have been made in full or have been satisfied and all other Obligations have been paid or discharged. Upon such termination, the Secured Party will join in executing any termination statement with respect to any financing
statement executed and filed pursuant to this Agreement. 
  
 10. Costs and Expenses. The Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any filing required hereunder, including without limitation, any financing statements pursuant
to the UCC, continuation statements, partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Secured Party. The Debtor shall also pay all other claims and charges which in the
reasonable opinion of the Secured Party might prejudice, imperil or otherwise affect the Collateral or the Security Interest therein. The Debtor will also, upon demand, pay to the Secured Party the amount of any and all reasonable expenses,
including the reasonable fees and expenses of its counsel and of any experts and agents, which the Secured Party may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection
from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights of the Secured Party under the Notes. 
  
 11. Security Interest Absolute. All rights of the Secured Party and all Obligations of the Debtor hereunder, shall be absolute and
unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Notes or any agreement entered into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of
payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Notes or any other agreement entered into in connection with the foregoing; (c) any
exchange, release or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any guaranty, or any other security, for all or any of the Obligations; (d) any action by
the Secured Party to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any other 
  

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 circumstance which might otherwise constitute any legal or equitable defense available to debtor, or a discharge of all
or any part of the Security Interest granted hereby. Until the Obligations shall have been paid and performed in full, the rights of the Secured Party shall continue even if the Obligations are barred for any reason, including, without limitation,
the running of the statute of limitations or bankruptcy. The Debtor expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or
any payment received by the Secured Party hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or
shall be deemed to be otherwise due to any party other than the Secured Party, then, in any such event, the Debtor’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior
payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. The Debtor waives all right to require the Secured Party to proceed against any
other person or to apply any Collateral which the Secured Party may hold at any time, or to marshal assets, or to pursue any other remedy. The Debtor waives any defense arising by reason of the application of the statute of limitations to any
obligation secured hereby. 
  
 12. Power of Attorney;
Further Assurances. 
  
 (a) The Debtor authorizes the
Secured Party, and does hereby make, constitute and appoint the Secured Party and its officers, agents, successors or assigns with full power of substitution, as the Debtor’s true and lawful attorney-in-fact, with power, in the name of the
Secured Party or the Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any notes, checks, drafts, money orders, or other instruments of payment (including payments payable under or in respect of any
policy of insurance) in respect of the Collateral that may come into possession of the Secured Party; (ii) to sign and endorse any financing statement pursuant to the UCC or any invoice, freight or express bill, bill of lading, storage or warehouse
receipts, drafts against debtors, assignments, verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge taxes, liens, security interests or other encumbrances at any time levied
or placed on or threatened against the Collateral; (iv) to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; and (v) generally, to do, at the option of the Secured Party, and at the expense of the
Debtor, at any time, or from time to time, all acts and things which the Secured Party deems necessary to protect, preserve and realize upon the Collateral and the Security Interest granted therein in order to effect the intent of this Agreement and
the Notes all as fully and effectually as the Debtor might or could do; and the Debtor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and shall be
irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding. 
  

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

 
 (a) No course of dealing between the Debtor and the
Secured Party, nor any failure to exercise, nor any delay in exercising, on the part of the Secured Party, any right, power or privilege hereunder or under the Notes shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 
  
 (b) All of the rights and remedies of the Secured Party with respect to the Collateral, whether established hereby or by the Notes or by
any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently. 
  
 (c) This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and is intended to supersede
all prior negotiations, understandings and agreements with respect thereto. Except as specifically set forth in this Agreement, no provision of this Agreement may be modified or amended except by a written agreement specifically referring to this
Agreement and signed by the parties hereto. 
  
 (d) In the event that any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction for any reason, unless such provision is narrowed by judicial construction, this Agreement shall, as to such
jurisdiction, be construed as if such invalid, prohibited or unenforceable provision had been more narrowly drawn so as not to be invalid, prohibited or unenforceable. If, notwithstanding the foregoing, any provision of this Agreement is held to be
invalid, prohibited or unenforceable in any jurisdiction, such provision, as to such jurisdiction, shall be ineffective to the extent of such invalidity, prohibition or unenforceability without invalidating the remaining portion of such provision or
the other provisions of this Agreement and without affecting the validity or enforceability of such provision or the other provisions of this Agreement in any other jurisdiction. 
  
 (e) No waiver of any breach or default or any right under this Agreement shall be considered valid unless in
writing and signed by the party giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default or right, whether of the same or similar nature or otherwise. 
  

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 (f) This Agreement shall be binding upon and inure to the benefit of each party hereto
and its successors and assigns. 
  
 (g) Each
party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order to carry out the provisions and purposes of this Agreement. 
  
 (h) This Agreement shall be deemed to be made in and in all
respects shall be interpreted, construed and governed by and in accordance with the laws of the State of Florida without regard to the conflict of law principles thereof. Each party hereto agrees that it shall bring any action or proceeding in
respect of any claim arising out of or related to this Agreement, or in respect of the transactions contemplated thereby, whether in tort or contract or at law or in equity, exclusively in the courts of the State of Florida located in Broward County
or in the federal courts of the United States of America located in Southeastern District of Florida (the “Chosen Courts”). Solely in connection with such actions, proceedings and claims, the parties irrevocably submit to the
jurisdiction of the chosen courts, and agree not to assert as a defense in any such action, suit or proceeding that such party is not subject to the jurisdiction of the chosen courts, that such action, proceeding or claim may not be brought or is
not maintainable in the chosen courts, that venue is not appropriate in the chosen courts, or that this Agreement may not be enforced in the chosen courts. Each of the parties agrees that service of process or other papers upon such party in any
such action or proceeding shall be effective if notice is given in accordance with the provisions on notice contained in this Agreement. Each party acknowledges and agrees that any controversy that may arise under this Agreement is likely to involve
complicated and difficult issues, and therefore each such party hereby irrevocably and unconditionally waives any right such party may have to a trial by jury in respect of any litigation directly or indirectly arising out of or relating to this
Agreement or the transactions contemplated by this Agreement. 
  

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 (i) All notices and other communications required or permitted hereunder shall be in
writing and shall be deemed to have been duly given one (1) business day after delivery to an overnight carrier, or, if sent by facsimile, upon receipt of a confirmation of delivery: 
  

			
	If to Debtor:	  	Paul Temple
	 	  	TTSI Holdings Inc.
	 	  	P.O. Box 421078
	 	  	Indianapolis, Indiana 46242
		
	If to Secured Party:	  	Segmentz, Inc.
	 	  	18302 Highwoods Preserve Parkway
	 	  	Tampa, Florida 33647
	 	  	Attn: Andrew Norstrud
		
	Copy to:	  	Adorno & Yoss, P.A.
	 	  	350 East Las Olas Boulevard, Suite 1700
	 	  	Fort Lauderdale, Florida 33301
	 	  	Attn: Clint J. Gage
		
	 	  	Landwerlen & Rothkopf
	 	  	244 North College Avenue
	 	  	Indianapolis, Indiana 46202
	 	  	Attn: Thomas L. Landwerlen

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

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

			
	Segmentz, Inc.
		
	By:	 	  

	Name:	 	  

	Its:	 	  

	
	Paul Temple
	TTSI Holdings Inc.
	President
		
	By:	 	  

	Name:	 	  

	Its:	 	  

  

 12Contract Termination Agreement

 Exhibit 10.5 
  
 TERMINATION AGREEMENT 
  
 This Termination Agreement (“Agreement”) is made as of June 29, 2005 between Segmentz, Inc, a Delaware corporation (the “Company”) and
Andrew Norstrud (the “Employee”). 
  
 BACKGROUND 
  

	 	A.	The Company and the Employee executed and delivered that certain Executive Employment Agreement (the “Employment Agreement”) dated July 12, 2004 setting forth the terms of
the Company’s employment of the Employee as the Company’s Chief Financial Officer; 

  

	 	B.	The Company and the Employee desire to terminate the Employment Agreement pursuant to the terms of this Agreement. 

  
 NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties agree as follows: 
  
 1.
Background. The foregoing background facts are true, correct and complete and are hereby incorporated by reference herein. 
  
 2. Termination of Employment Agreement. The Company and the Employee hereby terminate the Employment Agreement effective as of the date
hereof (the “Termination”). The parties expressly agree the Termination shall not be considered a termination of the Employment Agreement under Section 6 of the Employment Agreement. 
  
 3. Continued Employment. The Company and the Employee hereby
agree that the Employee will continue to serve the Company as the Company’s Chief Financial Officer on an at-will basis. In such capacity, the Employee’s duties, responsibilities, and base compensation will remain unchanged. Any and all
other entitlements of the Employee in connection with his employment by the Company, including, but not limited to, fringe benefits, will be subject to the Company’s discretion. 
  
 4. Continuing Obligations. Notwithstanding the Termination of the Employment Agreement, the parties hereby
agree that the Employee shall remain subject to the covenant not to compete and non-disclosure provisions set forth in Section 7 of the Employment Agreement, and the Company and the Employee shall remain subject to the Indemnification Provisions set
forth in Section 8 of the Employment Agreement. 
  
 5.
Consideration. Concurrently with the execution hereof the Company will pay the Employee a one time cash payment in the amount of $135,000, less all applicable payroll taxes, deductions, etc., and immediately vest all outstanding
options issued to the Employee in connection 

 with the Employee’s employment with the Company. In addition, at such time as the Employee’s employment with
the Company terminates, the Employee shall be entitled to take a certain Gateway computer, related equipment, desk, two printers, and three file cabinets used by the Employee in connection with the Employee’s employment with the Company.

  
 6. Release. Except for the obligations created
by or arising out of this Agreement, the Employee, and all persons for whose conduct said party is legally responsible including, but not limited to, his descendants, heirs, beneficiaries, successors and assigns, and each of them, past or present
(collectively the “Employee Parties”) does hereby release, acquit, satisfy and forever discharge the Company, and all persons for whose conduct said party is legally responsible including, but not limited to, its officers, directors,
attorneys, insurers, stockholders, subsidiaries, affiliated or related entities, successors, assigns, as the case may be, and each of them, past or present (collectively, the “Employer Parties”), from any and all manner of action, causes
of action, rights, liens, agreements, contracts, covenants, obligations, suits, claims, debts, dues, sums of monies, costs, expenses, attorneys’ fees, judgments, orders and liabilities, accounts, covenants, controversies, promises, damages, of
whatever kind and nature in law or equity or otherwise whether now known or unknown (collectively, the “Claims”), which the Employee Parties ever had, now have, or may have had against any of the Employer Parties, for any reason
(including, but not limited to, all Claims relating to the Employment Agreement) from the beginning of time up through and including this date. In furtherance of the foregoing, each of the releasing parties irrevocably covenants to refrain from,
directly or indirectly, asserting any Claims, or commencing, instituting or causing to be commenced, any proceeding of any kind against any of the Employer Parties with respect to any of the matters within the scope of the foregoing release.

  
 7. Miscellaneous. 
  
 (a) Entire Agreement. This Agreement constitutes the entire
understanding and agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether oral and written, between the parties hereto, with respect to such subject matter, all
of which are merged herein. 
  
 (b) Governing Law;
Submission to Jurisdiction; Selection of Forum; Waiver of Jury Trial. This Agreement shall be deemed to be made in and in all respects shall be interpreted, construed and governed by and in accordance with the laws of the State of Florida
without regard to the conflict of law principles thereof. Each party hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement, or in respect of the transactions contemplated
thereby, whether in tort or contract or at law or in equity, exclusively in the courts of the State of Florida located in Broward County or in the federal courts of the United States of America located in Southeastern District of Florida (the
“Chosen Courts”). Solely in connection with such actions, proceedings and claims, the parties irrevocably submit to the jurisdiction of the chosen courts, and agree not to assert as a defense in any such action, suit or proceeding
that such party is not subject to the jurisdiction of the chosen courts, that such action, proceeding or claim may not be brought or is not maintainable in the chosen courts, that venue is not 
  

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 appropriate in the chosen courts, or that this Agreement may not be enforced in the chosen courts. Each of the parties
agrees that service of process or other papers upon such party in any such action or proceeding shall be effective if notice is given in accordance with the provisions on notice contained in this Agreement. Each party acknowledges and agrees that
any controversy that may arise under this Agreement is likely to involve complicated and difficult issues, and therefore each such party hereby irrevocably and unconditionally waives any right such party may have to a trial by jury in respect of any
litigation directly or indirectly arising out of or relating to this Agreement or the transactions contemplated by this Agreement. 
  
 (c) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an
original and all of which, when together, shall constitute one and the same instrument. 
  
 (d) Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under this Agreement on any person or entity other than the Company and the
Employee. 
  
 (e) Modification and Waiver. No
amendment, modification or alteration of the terms or provisions of this Agreement shall be binding unless the same shall be in writing and duly executed by each of the parties hereto, except that any of the terms or provisions of this Agreement may
be waived in writing at any time by the party entitled to the benefits of such waived terms or provisions. No waiver of any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any other provision hereof (whether or
not similar). No delay on the part of any party in exercising any right, remedy, power or privilege hereunder shall operate as a waiver thereof or of any other right, remedy, power or privilege. 
  
 (f) Severability. If any provision of this Agreement or the
application of any such provision to any person or circumstances shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not effect any other
provision hereof and this Agreement shall remain in force and be effectuated as if such illegal, invalid or unenforceable provision is not part of this Agreement. 
  
 (g) Enforcement. Should it become necessary for any party to institute legal action to enforce the terms and
conditions of this Agreement, the successful party will be awarded reasonable attorneys’ fees at all trial and appellate levels, expenses and costs. 
  

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 IN WITNESS WHEREOF, the parties have executed this Termination Agreement on the day and year first set
forth above. 
  

			
	Segmentz, Inc.
		
	By:	 	 /s/ Mike Welch

	Name:	 	Mike Welch
	Its:	 	Chief Executive Officer
	
	 /s/ Andrew J. Norstrud

	Andrew Norstrud

  

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