Document:

LEASE

THIS WRITING contains all the terms and conditions of a Lease, made and entered
into this 13 day of MARCH, 2002, by and between, SOLAR INVESTMENTS.,
          --               ----
("Landlord") and,SEREFEX CORP. ("Tenant"), wherein the parties agree that for
                 ------------
the rents to be paid by Tenant and for the mutual covenants and conditions
herein set forth, Landlord hereby leases to Tenant 4420 MERCANTILE AVENUE, SUITE
4 , NAPLES, FLORIDA, ("demised premises") to be used and occupied by
-
Tenant as office space.

1.  Term    The term of this Lease shall, commencing APRIL 6, 2003.WITH THE
    ----                                             -------------
MONTH OF APRIL BEING PRORATED AND SHALL END MARCH 31, 2004.

2.  Base Rent    Tenant shall pay without demand to the Landlord a base rent
    ---------
plus applicable sales tax (currently 6%) payable in monthly installments as
follows:

<TABLE>
<CAPTION>

<S>                       <C>         <C>          <C>
     Annual Rent          Monthly     Monthly      Monthly Rent & Tax
     -----------                                   ---------------------
     $3,600.00            Rent        Sales Tax
                          ----        ---------
                          $300.00     18.00             $318.00
</TABLE>

The base rental rate shall increase at a rate of five (5%) percent per year over
the previous year's base rental rate and for any extensions hereof.

3.  Security Deposit    The Landlord acknowledges that it has received from the
    ----------------
Tenant a sum equal in amount to the first month's and last month's rent and a
security deposit in the amount of $100.00 for this Lease including six (6%)
percent state sales tax. The total received was $656.50. The security deposit
                                                --------
shall remain with the Landlord during the term of this Lease and any extensions
hereof as security for the payment of rent and damages. No interest shall be
payable on the deposit, and it may be commingled with the general funds of the
Landlord. If any rent or any other sum or charge payable by Tenant to Landlord
shall be overdue and unpaid, or if Landlord makes any payment on behalf of
Tenant, or if Tenant fails to perform any other terms of this Lease, then
Landlord may at its option and without prejudice to any other remedy,
immediately apply all or part of the security and damage deposit toward the
payment of any amount due from Tenant or toward losses sustained by Landlord as
a result of Tenant's default under this Lease. Tenant shall then immediately
restore its security and damage deposit to the original sum deposited. Should
the Landlord convey its interest under this Lease, the deposit may be turned
over by the Landlord to the Landlord's grantee or assignee. If the security and
damage deposit is turned over as aforesaid, the Tenant hereby releases Landlord
from any and all liability with respect to the deposit or its return, and the
Tenant agrees to look solely to such grantee or assignee for such application or
return, and this provision shall also apply to subsequent grantees or assigns.

4.  Payment of Rent    All payments shall be made without demand and without any
    ---------------
deduction set-off or counterclaim whatsoever and shall be made at 4420
Mercantile Avenue, Naples, Florida, 34104, or at such other place and to such
other person as the Landlord may from time to time designate. Rent is due on the
first of the month and late after the 5th. A late fee will be charged on any
rent not paid prior to the 5th of the month.

5.  Assignment and Subletting    Tenant shall not assign this Lease, nor sublet
    -------------------------
the demised premises, or any part thereof, nor use the same, or any part
thereof, nor permit the same, or any part thereof, to be used by anyone other
than Tenant, without prior written consent of Landlord. If Tenant requests such
written consent, Tenant shall compensate Landlord for any legal fees incurred by
Landlord in drafting or evaluating documents, or in otherwise dealing with such
request. The Landlord will not unreasonably withhold an assignment. No
subletting to which the Landlord may consent shall release or relieve the Tenant
from its obligations under this Lease, and Landlord may look solely to Tenant
for payment of rent and the performance of the terms and conditions of this
Lease.

6.  Compliance with Lawful Orders    Tenant, at its sole cost and expense, shall
    -----------------------------
promptly execute and comply with all statutes, ordinances, rules, orders,
regulations and requirement of the federal, state, county, and city governments
and of any and all their departments and bureaus applicable to the demised
premises, for the correction, prevention and abatement of nuisances or other
grievances, in, upon, or connected with the demised premises during the Lease
term. Tenant shall also promptly comply with and execute all rules, orders and
regulations of insurance underwriters and insurance rating bureaus having
jurisdiction for the prevention of fires. Tenant shall not commit or suffer any
waste on the premises nor the use of the premises for any unlawful purpose.

7.  Alterations    Tenant shall not make any repairs, alterations or additions
    -----------
to the demised premises or building of which the demises premises are a part nor
attach or affix any articles thereto nor make any repairs, alterations or
additions to the electrical service and heating, cooling and air conditioning,
plumbing or sprinkler system without the written consent of the Landlord. If
alterations become necessary because of the application of laws or ordinances or
other directions, rules or regulations of any regulatory authority having
jurisdiction over the business carried on by Tenant, or because of any act or
default on the part of Tenant, or because Tenant has overloaded any electrical
or other facility, Tenant shall make such alterations at its own cost and
expense after first obtaining Landlord's written approval of plans and
specifications and furnishing such indemnifications against liens, costs and
damages as Landlord may reasonably require. All alterations, additions,
improvements and fixtures, other than trade fixtures, which may be installed by
Tenant upon the demised premises and which in any manner are attached to the
floors, walls or ceiling, at the termination of this Lease shall become the
property of Landlord, unless Landlord requests their removal, and shall remain
upon and be surrendered with the demised premises as a part thereof, without
damage or injury, all without compensation or credit to Tenant. If Landlord
requests Tenant, in writing to do so, Tenant shall, on or before the end of the
term, remove all such additions, installations and fixtures placed in the
demised premises by Tenant and so designated by Landlord and Tenant shall pay
for the reasonable cost of repairing damage occasioned by the removal. Tenant
shall insure its leasehold improvements.

8.  Maintenance by Tenant    Except as provided in paragraph 24, Tenant accepts
    ---------------------
the demised premises in the condition they are in at the beginning of this Lease
and agrees to maintain the demised premises in the same condition, order and
repair as they are at, at the commencement of said term, excepting only
reasonable wear and tear arising from the use thereof under this Lease and
damage or destruction by fire or other casualty, without the fault or neglect of
Tenant. Tenant shall keep the windows and entrance doors clean at all times.
Tenant shall pay to the landlord the cost of repairing any damages to the
building or building equipment caused by any act or neglect of Tenant or its
invitees (including, but not limited to, damage to air condition equipment,
water apparatus, electric lights, fixtures, appliances, or appurtenances of the
demised premises or damage caused by overflow or escape of water, steam or gas
or from improper used of the electrical system due to negligence of Tenant or it
invitees) to the extent Landlord is not reimburses for such cost through
insurance carried by Landlord, it being understood that Landlord is not required
by this paragraph to maintain insurance against any particular type of loss or
in any amount which will result in a 100% recovery of any loss.

9.  Glass    Tenant shall forthwith at its own cost and expense replace with
    -----
glass of the same quality any cracked or broken glass, including plate glass,
other glass, or breakable material used in structural portions, and any interior
and exterior windows and doors in the demised premises. Tenant shall procure and
maintain during the term of this Lease a policy or policies in companies
acceptable to the Landlord, insuring Landlord and Tenant, as their interest may
appear, against breakage of all such glass and breakable materials in the
demised premises and shall deposit such policy or policies, or certificates
evidencing their existence, together with evidence of the payment of the
premiums thereon, with Landlord at the commencement of the term and at least
thirty days prior to the expiration of each such policy. Should Tenant fail to
procure and maintain any such insurance, Landlord may at its option, obtain the
insurance and keep the same in force and effect, and Tenant shall pay Landlord
upon demand for the costs of the insurance.

10.  Signs    Tenant shall  not erect or install any exterior or interior window
     -----
or door signs, advertising media, or window or door lettering or placards
without Landlord's prior written consent. Tenant shall not install any lighting
or plumbing fixtures, shades or awnings or any decoration or painting, or
install any radio or television antenna, loud speakers, sound amplifier or
similar devices, or make any changes to the store front without Landlord's prior
written consent. Landlord may withhold approval of any items which he deems to
be not in conformity with the character of the building or the neighborhood.

11.  Inspection, Entry and Repair    Landlord and his agent shall have the right
     ----------------------------
to enter the demised premises during all reasonable hours, to examine the same,
to make such repairs, additions or alterations as may be deemed necessary for
the safety, comfort, or preservation of the demised premises, or of the
building, and to put or keep upon the doors and windows thereof a notice "FOR
RENT" at any time within ninety (90) days before the expiration of this Lease.
The right of entry shall likewise exist for the purpose of removing placards,
signs, fixtures, alterations or additions, which do not conform to this
agreement or to the reasonable rules and regulations of the building which the
Landlord may from time to time promulgate and which shall be applicable to all
tenants. Landlord reserves the right to have a pass key to the demised premises.
It is further understood and agreed between the parties that any charges against
the Tenant by the Landlord for services or work done on the premises by order of
the Tenant or otherwise accruing under this contract shall be considered as rent
due and shall be included in any lien for rent due and unpaid.

12.  Right to Show Premises    During the last ninety (90) days of this Lease,
     ----------------------
Landlord may, during normal business hours and after reasonable notice to
Tenant, enter and exhibit the premises to prospective tenants.

13.  Destruction of Demised Premises    In the event the demised premises are
     -------------------------------
destroyed, damaged or injured by fire or other casualty insurable under standard
fire and extended coverage insurance during the term of this Lease then Landlord
shall repair the demised premises, restoring them as nearly as practicable to
their condition before the occurrence of the casualty. However, if the Landlord
notifies Tenant in writing that the demised premises cannot reasonably be
restored within one hundred twenty (120) days after the notice of occurrence of
the casualty either party may terminate this Lease by written notice to the
other. If the demised premises themselves are not damaged by fire or other
casualty, but the building is so damaged that Landlord shall determine not to
rebuild, then Landlord may terminate this lease by written notice to Tenant. In
the event of termination under this paragraph, the rent shall be payable only to
the date of the fire or casualty and all obligations and liabilities of Landlord
and Tenant under this Lease shall thereupon terminate and Landlord shall refund
to Tenant any unearned rent paid in advance.

14.  Condemnation of Demised Premises    If the demised premises are condemned
     --------------------------------
or appropriated by any public or quasi-public authority having power of eminent
domain, or sold under imminent threat of eminent domain, then this Lease shall
terminate as of the date that possession shall be required by the appropriating
authority. If condemnation, appropriation or sale occurs with respect to only a
portion of the demised premises and the demised premises remain tenantable, this
Lease shall terminate as to the portion of the demised premises so condemned,
appropriated or sold on the day Tenant must yield possession thereof. Landlord
shall make such repairs and alterations as may be necessary in order to restore
the remaining demised premises to usable condition and the rent payable under
this lease shall be reduced equitably according to Tenant's use of the part of
the demised premises so taken. In the event of a termination or partial
termination as described above, Landlord shall refund to Tenant the unearned
portion of any rent paid in advance. Tenant shall surrender the premises for
which the Lease was terminated, and Tenant shall not be entitled to participate
in any award of sale price of the premises. However, the Landlord shall not be
entitled to any portion of the award to the Tenant for loss of business,
depreciation to and cost of removal of stock and fixtures. Tenant shall be
entitled to appear in any appropriation proceedings or to claim value for the
unexpired term of this lease.

15.  Damage to Tenant    All personal property placed in, or moved into, the
     ----------------
demised premises shall be at risk of Tenant or owner of the personal property,
and Landlord shall not be liable to Tenant or to any other person for damage to
the personal property from any cause whatsoever unless directly resulting from
Landlord's act, or neglect after notice. Landlord shall not be liable for any
damage arising from any acts or neglect of co-tenants or other occupants of the
building or of adjacent property or of any other person. For purposes of this
clause, the term "personal property" shall include, but not be limited to,
merchandise, inventory and all improvements within the demised premises whether
installed by the Landlord or Tenant, such as ceiling tiles, shelving or other
improvements.

16.  Default by Tenant
    ------------------

     16.1   The prompt payment of rent for the demised premises upon the dates
named, or when billed therefor, the faithful performance of all covenants of
this Lease and the faithful observance of the rules and regulations of the
entire building, ground and parking facilities now in existence, and which are
hereby made a part of this Lease, and so such further reasonable rules and
regulations for the entire building, grounds and parking facilities which may be
hereafter made by the Landlord, are the conditions upon which this Lease is made
and accepted. Any failure on the part of Tenant to comply with the terms of this
Lease, or any of the reasonable rules and regulations now in existence, or
hereafter prescribed by the Landlord, shall at the option of Landlord, after
giving notice as provided in this paragraph, work a forfeiture of this Lease and
all of the rights of the Tenant hereunder, and thereupon Landlord, its agent or
attorneys, shall have the right to enter the demised premises and remove all
persons therefrom and shall have the right to declare the entire rent for the
balance of the term, or any part thereof, immediately due and payable in full
and may proceed to collect same either by distress or otherwise, and thereupon
the Lease shall terminate.

     16.2   If Tenant shall abandon or vacate the demised premises before the
end of the term of this lease, or permit the rent to be in arrears or otherwise
fail to comply with the terms of this lease, Landlord may, at its option,
forthwith terminate this Lease or may enter the demised premises as the agent of
Tenant, in any manner not prohibited by law, without being liable in any way
therefore, and relet the demised premises with or without any furniture,
fixtures, and equipment that may be situated therein, at such rent and upon such
terms and for such duration of time as Landlord may determine and receive the
rent therefor, applying the same to the payment of the rent due hereunder. If
the full rental herein provided shall not be realized by Landlord over and above
the expenses in reletting, Tenant shall pay any deficiency.

     16.3   Tenant agrees to pay, to the extent not prohibited by law, all
expenses which Landlord may incur in reletting the demised premises after
Tenant's forfeiture of the Lease, abandonment or vacating of the demised
premises. Tenant also agrees that if Landlord retains an attorney to enforce the
provisions of this Lease, or if suit is brought for recovery of possession of
the Premises, for the recovery of rent or any other amount due under this lease,
or because of the breach of any other covenant herein to be kept or performed by
Tenant, Tenant shall pay to Landlord all expenses incurred, including reasonable
attorney's fees, which fees shall include services at trial and appellate
levels.

     16.4   The rights and remedies of Landlord upon any default by Tenant
as set forth in this Lease shall be cumulative and not exclusive of any other
rights or remedies at law or in equity. The failure of Landlord to promptly
exercise any right or remedy shall not operate to forfeit any right or remedy.

17.  Waiver of Jury Trial    The parties hereby waive trial by jury in any
     --------------------
action, proceeding or counterclaim brought by either against the other on any
matters whatsoever arising out of or in any way connected with this Lease or
Tenant's use or occupancy of the premises.

18.  Late Charge for Delinquent Rent    If the Tenant defaults in the payment of
     -------------------------------
any installment of base rent or additional rent by the 5th of each month, then
the Landlord may impose a late charge of Five percent (5%) of the base rent.

19.  Right of Landlord to Cure Tenant's Default    If Tenant defaults in the
     ------------------------------------------
making of any payment or in the doing of any act required by this Lease to be
made or done by Tenant, Landlord may, but shall not be required to, make such
payment or do such act, and the expense thereof, if made or done by Landlord,
with interest thereon at the rate of eighteen percent (18%) per annum from the
date paid by Landlord, shall be paid by Tenant to Landlord and shall constitute
additional rent due and payable with the next monthly installment of base rent.
The making of such payment or the doing of such act by Landlord shall not
operate to cure the default or to prevent Landlord from the pursuit of any
remedy to which it would be otherwise be entitled.

20.  Bankruptcy of Tenant    If Tenant shall become insolvent or unable to pay
     --------------------
its debts as they mature, or if bankruptcy proceeding shall be begun by or
against Tenant before the end of the Lease term, Landlord is hereby irrevocably
authorized at its option, to forthwith terminated this Lease, as upon a default
by Tenant. Landlord may elect to accept rent from such receiver, trustee, or
other judicial officer during the term of occupancy in a fiduciary capacity
without affecting Landlord's right as contained in this Lease, but no receiver,
trustee or other judicial officer shall ever have any right, title or interest
in or to the demised premises by virtue of Landlord' s election.

21.  Encumbrances    Tenant shall not in any way pledge, mortgage, or encumber
     ------------
this Lease or its right under it without prior written consent of the Landlord.

22.  Lien and Security    Tenant hereby pledges and assigns to Landlord, and
     -----------------
agrees that Landlord shall have a lien upon all the carpeting, furniture,
fixtures, goods, chattels, and equipment of Tenant, which shall or may be
brought or put on the demised premises, as security for the payment of the rent
herein reserved. In the event Lessor exercise the option to terminate the Lease,
and to re-enter and relet the premises as provided in this Lease, the Lessor may
take possession of all of the Lessee's property on the premises and sell the
same at public or private sale after giving Lessee reasonable notice of the time
and place of any public sale or of the time after which any private sale is to
be made, for cash or on credit, or for such price and terms as Lessor deems
best, with or without having the property present at the sale. The proceeds of
the sale shall, to the extent not prohibited by law, be applied first to the
necessary and proper expenses of removing, storing and selling the property
including attorney's fees, then to the payment of any rent due or to become due
under this Lease, with the balance, if any, to be paid to Lessee. Landlord
agrees to execute a subordination agreement on the equipment.

23.  Indemnity by Tenant and Liability Insurance
     -------------------------------------------

     23.1   Tenant shall protect, save and keep Landlord harmless and
indemnified against any loss, costs, damage or expense, including reasonable
attorney's fees incurred by Landlord in the defense or payment of any claim
arising out of or from any accident or other occurrence in the demised premises
causing injury or damage to any person or property, due or claimed to be due to
any act, failure to act or negligence on the part of the Tenant, its agents,
employees, invitees, or licensees, or due or claimed to be due to any failure to
any use of the demised premises by Tenant, its agents, employees, invitees,
licensees or lessees.

     23.2   Tenant agrees to procure and maintain a policy or policies of
insurance at its own cost and expense with a company authorized and permitted to
do business in the State of Florida, indemnifying Landlord from all claim,
demands or actions arising or claimed to have arisen because of the injury to,
or death of, any one or more persons in any once occurrence in amounts of not
less than $1,000,000.00 and because of damage to property in amount of not less
than $500,000.00 made by or on behalf of any one or more persons or corporations
alleged to have arisen from, been related to, or been connected with the conduct
and operation of Tenant's business in the demised premises, or Tenant's
occupancy thereof.

     23.3   Tenant shall keep any outside area and common area immediately
adjoining the demised premises clean and free from dirt and rubbish, and Tenant
shall not permit any obstruction or any merchandise, packing containers, and
materials to be placed or kept in such areas.

24.  Holding Over    In the event Tenant remains in possession of the demised
     ------------
premises after the expiration of the tenancy created by this lease, and without
the execution of a new Lease, Tenant shall be deemed to be occupying the demised
premises as a tenant from month to month, at two hundred percent (200%) of fixed
base rent for the last month of the lease, subject to all other conditions,
provisions and obligations of this Lease insofar as the same are applicable to a
month-to-month tenancy.

25.  Landlord's Covenants
     --------------------

     25.1   The Landlord covenants and agrees with Tenant that so long as Tenant
shall pay the rent and keep and perform the other covenants of this Lease to be
kept and performed by Tenant, tenant shall peaceably and quietly hold the
demised premises without any interference from the Landlord.

     25.2   Landlord warrants that the demised premises comply with all
applicable rules, orders, regulations and laws respecting zoning and fire
prevention and that the plumbing and electrical will be in good working order at
the commencement of this Lease. Landlord will, at his expense, repair any
defects in the plumbing and electrical of which he is notified within seven (7)
days after occupancy of the demised premises by Tenant, but in no event shall
the Landlord's obligation to repair last more than 30 days after the Lease
commences.

26.  Operation of Business    Tenant agrees to keep the demised premises open
     ---------------------
for business at least eleven months of each calendar year. During the time that
the business may be closed, the demised premises should be kept so as to appear
that they are still open for business in so far as practicable.

27.  Waiver of Homestead    Tenant hereby waives and renounces for himself and
     -------------------
family any and all homestead and exemption rights he may have now, or hereafter
under or by virtue of the constitution and laws of the State of Florida, or of
any other State, or of the United States, as against the payment of said rental
or any portion hereof, or any other obligation or damage that may accrue under
the terms of this Lease.

28.  Time of Essence    It is understood and agreed that time is of the essence
     ---------------
of this Lease and this applies to all terms and conditions contained in this
Lease.

29.  Mechanics Liens    The parties acknowledge that no improvements or repairs
     ---------------
are required by this Lease, and any improvements or repairs to the demised
premises which may be made shall be at Tenant's sold expense, unless otherwise
specifically provided in this Lease. Tenant agrees that it shall not under any
circumstances permit or allow a mechanics lien to be filed against the
Landlord's property as a result of work or materials provided to the demised
premises. If any mechanics lien shall be filed against Landlord's property as a
result of work or materials provided to the demised premises, the Tenant shall
cause the lien to be removed to a bond as provided by Florida's Mechanic's Lien
Law within seven days after Landlord's demand. Failure to remove the lien to
bond within seven days after demand constitutes a default under this Lease and
shall, at Landlord's option, be grounds for forfeiture of this Lease.

30.  Binding Effect    This Lease shall bind Landlord and Tenant and their
     --------------
respective heirs, executors, administrators, successors and assigns.

31.  Notices    All notices, consents, requests, payments and other
     -------
communications required or permitted to be sent by this lease shall be in
writing and shall be delivered in person or sent by registered or certified
mail, return receipt requested, to the proper address of the other party to this
lease, which address shall be (unless and until another address is furnished by
notice):

If to Landlord, to:                                 Solar Investments
                                                    4420 Mercantile Avenue
                                                    Naples, FL 34104

If to Tenant, to:                                   4420 Mercantile Avenue
                                                    Suite     4
                                                              -
                                                    Naples, FL 34104

Notices shall be effective and deemed delivered when properly addressed and
deposited with the United State or Canadian Post Office for delivery, postage
prepaid.

32.  Non waiver of Breach    No waiver of a breach of any of the covenants or
     --------------------
conditions of this Lease shall be construed to be a waiver of any succeeding
breach of that same covenant, condition or any covenant or condition.

33.  Option to Renew    So long as Tenant is not in default of this Lease,
     ---------------
Tenant shall have the option to renew this Lease of the demised premises
for a further term of one year under and subject to the same covenants
                      ---
and agreements as are herein contained. The rent for the renewal options
shall be as follows:

The rental rate shall escalate by five percent (5%) per year over the previous
year's rental rate. Tenant must exercise the option by notifying Landlord in
writing not less than one hundred eighty (180) days prior to expiration of the
term granted by this Lease. Tenant's right to renew is void if Tenant is not in
compliance with all terms and conditions of this Lease at the time the renewal
period commences.

34.  Headings    The headings to the several articles of this Lease are for
     --------
convenient references only and shall not be construed as limited or changing
the context  of  any  article.

35.  Severability    Each paragraph and provision of this Lease and any part
     ------------
thereof, is an independent paragraph, provision or part thereof, and the holding
of any paragraph, provision or part thereof to be void or ineffective for any
reason whatsoever does not affect the validity or effectiveness of any other
paragraph, provision or part thereof.

36.  Entire Agreement    This instrument contains the entire agreement of
     ----------------
Landlord and Tenant. No oral amendment, modification. Or understanding shall be
made, but only an agreement in writing signed by the parties shall be valid as
an amendment, modification or change to this lease.

37.  Lease Commencement    This Lease will commence on          APRIL 6, 2003
     ------------------                                         -------------

IN WITNESS WHEREOF, the parties hereto have hereunto executed this instrument
for the purposes herein expressed, the day and year above written.

Signed, Sealed and Delivered
in the presence of:

___________________________                   LANDLORD:  SOLAR INVESTMENTS
Witness

___________________________                   ___________________________
Witness                                       BY:

___________________________                   TENANT & GUARANTOR
Witness                                       SEREFEX  CORPORATION

___________________________                   ___________________________
Witness                                       BY:  Brian  S.  Dunn

___________________________                   TENANT  &  GUARANTOR
Witness

___________________________                   ___________________________
Witness                                       BY:LOAN AGREEMENT BETWEEN FOUNTAIN POWERBOATS AND BANK OF AMERICA

 [Graphic Appears Here] 
  

EXHIBIT 10.9 
  
 LOAN AGREEMENT 
  
 This Loan Agreement (the “Agreement”) dated as of July 17, 2003, by and between Bank of America, N.A., a national banking association (“Bank”) and the Borrower described below. 
  
 In consideration of the Loan or Loans described below and the mutual
covenants and agreements contained herein, and intending to be legally bound hereby, Bank and Borrower agree as follows: 
  
 1. DEFINITIONS AND REFERENCE TERMS. In addition to any other terms defined herein, the following terms shall have the meaning set forth with
respect thereto: 
  
 A. Borrower: Fountain
Powerboats, Inc., a North Carolina corporation. 
  
 B.
Borrower’s Address: 1653 Whichards Beach Road, Washington, North Carolina 27889. 
  
 C. Corporate Guarantor: Fountain Powerboat Industries, Inc., a Nevada corporation, and the parent corporation of the Borrower. 
  
 D. Current Assets. Current Assets means, with respect to the Corporate Guarantor and the Borrower on a consolidated
basis, the aggregate amount of all assets which would, in accordance with GAAP, properly be defined as current assets. 
  
 E. Current Liabilities. Current Liabilities means, with respect to the Corporate Guarantor and the Borrower on a consolidated basis, the aggregate
amount of all current liabilities as determined in accordance with GAAP, but in any event shall include all liabilities except those having a maturity date which is more than one year from the date as of which such computation is being made.

  
 F. Default. Default means any event or condition which,
with the giving or receipt of notice or lapse of time or both, would constitute an Event of Default hereunder. 
  
 G. Event of Default. Event of Default means any of the occurrences set forth in Section 10 of the Note (as defined in Section 2 below). 

 
 H. Hazardous Materials. Hazardous Materials include all materials
defined as hazardous materials or substances under any local, state or federal environmental laws, rules or regulations, and petroleum, petroleum products, oil and asbestos. 
  
 I. Loan. Any loan described in Section 2 hereof and any subsequent loan which states that it is subject to this Loan
Agreement. 
  
 J. Loan Documents. Loan Documents means this
Loan Agreement and any and all promissory notes executed by Borrower in favor of Bank and all other documents, instruments, guarantees, certificates and agreements executed and/or delivered by Borrower, any guarantor or third party in connection
with any Loan. 
  
 K. Material Adverse Effect. Material
Adverse Effect means a material adverse effect on the financial condition of the Borrower and the Corporate Guarantor, taken as a whole. 
  
 L. Permitted Liens. Permitted Liens means: 
  

	 	(i)	 	Liens created under the Loan Documents in favor of the Bank; 

  

	 	(ii)	 	Liens imposed by law for taxes, assessments or charges of any governmental authority for claims not yet due or which are being contested in good faith by appropriate proceedings
diligently conducted and with respect to which adequate reserves are being maintained in accordance with GAAP, which liens are not yet exercisable to effect the sale or seizure of property subject thereto; 

  

	 	(iii)	 	Statutory liens of landlords and liens of carriers, warehousemen, mechanics, materialmen and other liens arising in the ordinary course of business and in existence less than 90
days from the date of creation thereof for amounts not yet due or which are being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves are being maintained in accordance with GAAP, which
liens are not yet exercisable to effect the sale or seizure of property subject thereto; 

  

	 	(iv)	 	Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security benefits
or to secure the performance of tenders, bids, leases, surety and appeal bonds, contracts (other than for the repayment of indebtedness), statutory obligations and other similar obligations or arising as a result of progress payments under
government contracts (but excluding liens arising under the Employee Retirement Income Security Act of 1974, as amended); 

  

	 	(v)	 	 easements (including reciprocal easement agreements and utility agreements), rights-of-way, covenants, consents, reservations, encroachments, variations and zoning
and other restrictions, charges or encumbrances (whether or not recorded), which do not interfere materially with the 

	 	 
ordinary conduct of the business of the Borrower and which do not materially detract from the value of the property to which they attach or materially impair
the use thereof to the Borrower; and 

  

	 	(vi)	 	Liens in favor of Brunswick Corporation to secure obligations under the RMF Reimbursement Agreement, as such document is more fully described in the Master Agreement among Brunswick
Corporation, the Borrower, the Corporate Guarantor and Reginald M. Fountain, Jr. dated as of July 17, 2003. 

  

	 	(vii)	 	Liens disclosed to the Bank prior to the date of this Agreement which will be terminated or released at or immediately after funding of the Loan as a result of the disbursement of
Loan proceeds. 

  
 M. Swap Agreement. Swap
Agreement means any document, instrument or agreement between the Borrower and the Bank or any affiliate of the Bank, now existing or entered into in the future, relating to an interest rate swap transaction, forward rate transaction, interest rate
cap, floor or collar transaction, any similar transaction, any option to enter into any of the foregoing, and any combination of the foregoing, which agreement may be oral or in writing, including, without limitation, any master agreement relating
to or governing any or all of the foregoing and any related schedule or confirmation, each as amended from time to time. 
  
 N. Accounting Terms. All accounting terms not specifically defined or specified herein shall have the meanings generally attributed to such terms
under generally accepted accounting principles (“GAAP”), as in effect from time to time, consistently applied, with respect to the financial statements referenced in Section 3.H. hereof. 
  
 2. LOAN. The Bank hereby agrees to make a term loan to Borrower
in the aggregate principal face amount of $18,000,000. The obligation to repay the Loan is evidenced by a promissory note dated July 17, 2003 (the promissory note, together with any and all renewals, extensions or rearrangements thereof, and any
additional indebtedness incurred in the future, being hereafter collectively referred to as the “Note”) having a maturity date, repayment terms and interest rate as set forth in the Note. 
  
 3. REPRESENTATIONS AND WARRANTIES. Borrower hereby represents
and warrants to Bank as follows: 
  
 A. Good Standing/State of
Organization. Borrower is a corporation, duly organized, validly existing and in good standing under the laws of North Carolina and has the power and authority to own its property and to carry on its business in each jurisdiction in which
Borrower does business. 
  
 B. Authority and Compliance.
Borrower has full power and authority to execute and deliver the Loan Documents and to incur and perform the obligations provided for therein, all of which have been duly authorized by all proper and necessary action of the appropriate governing
body of Borrower. No consent or approval of any public authority or other third party is required as a condition to the validity of any Loan Document, and Borrower is in compliance with all laws and regulatory requirements to which it is subject,
except where failure to be in compliance would not reasonably be expected to have a Material Adverse Effect. 
  
 C. Binding Agreement. This Agreement and the other Loan Documents executed by Borrower constitute valid and legally binding obligations of
Borrower, enforceable in accordance with their terms. 
  
 D.
Litigation. There is no proceeding involving Borrower pending or, to the knowledge of Borrower, threatened before any court or governmental authority, agency or arbitration authority, except as disclosed to Bank in writing and acknowledged by
Bank prior to the date of this Agreement. 
  
 E. No Conflicting
Agreements. There is no charter, bylaw, stock provision, partnership agreement or other document pertaining to the organization, power or authority of Borrower and no provision of any existing agreement, mortgage, indenture or contract binding
on Borrower or affecting its property, which would conflict with or in any way prevent the execution, delivery or carrying out of the terms of this Agreement and the other Loan Documents. 
  
 F. Ownership of Assets. Borrower has good title to its assets, and its assets are free and clear of liens, except
Permitted Liens. 
  
 G. Taxes. All material taxes and
assessments due and payable by Borrower have been paid or are being contested in good faith by appropriate proceedings and the Borrower has filed all federal and other material tax returns which it is required to file. 
  
 H. Material Adverse Change. The financial statements of Borrower
heretofore delivered to Bank have been prepared in accordance with GAAP applied on a consistent basis throughout the period involved and fairly present Borrower’s financial condition, including all material contingent liabilities as of the date
or dates thereof, and there has been no material adverse change in the financial condition or operations of Borrower since March 31, 2003. All factual information furnished by Borrower to Bank in connection with this Agreement and any other Loan
Documents is and will be accurate and complete in all material respects on the date as of which such information is delivered to Bank and is not and will not be incomplete by the omission of any material fact necessary to make such information not
misleading. 
  
 I. Environmental. The conduct of
Borrower’s business operations and the condition of Borrower’s property does not and will not violate any federal laws, rules or ordinances for environmental protection, regulations of the Environmental Protection Agency, any applicable
local or state law, rule, regulation or rule of common law or any judicial interpretation thereof relating primarily to the environment or Hazardous Materials, except for violations which, in the aggregate, would not reasonably be expected to have a
Material Adverse Effect. 
  

 2 

 J. Continuation of Representations and Warranties. All representations and warranties made under
this Agreement shall be deemed to be made at and as of the date hereof and at and as of the date of any advance under any Loan. 
  
 4. AFFIRMATIVE COVENANTS. Until full payment and performance of all obligations of Borrower under the Loan Documents, Borrower will, unless
Bank consents otherwise in writing (and without limiting any requirement of any other Loan Document): 
  
 A. Financial Condition. Maintain Borrower’s financial condition as follows, determined in accordance with GAAP applied on a consistent basis
throughout the period involved except to the extent modified by the following definitions. In all cases, the ratios will be based on the results of the Corporate Guarantor and the Borrower determined on a consolidated basis, and calculated at the
end of each calendar quarter using the results of the twelve-month period ending with that reporting period and annually based on the audited fiscal year-end financial statements. 
  
 i. Total Liabilities to Tangible Net Worth. Maintain on a consolidated basis a ratio of Total Liabilities
(excluding the non-current portion of Subordinated Liabilities) to Tangible Net Worth not exceeding the ratios set forth opposite each period set forth below: 
  

	 Period

	 	 Total Liabilities to Tangible Net Worth

	 The date hereof through December 31, 2003
	 	 4.75 to 1.00

		
	 January 1, 2004 through September 30, 2004
	 	 3.50 to 1.00

		
	 From October 1, 2004 and Thereafter
	 	 3.00 to 1.00

  
 “Total Liabilities” means
the sum of Current Liabilities plus long-term liabilities. “Subordinated Liabilities” means liabilities subordinated to Borrower’s obligations to Bank in a manner acceptable to Bank. 
  
 “Tangible Net Worth” means the gross book value of the assets of the Corporate
Guarantor and Borrower determined on a consolidated basis (excluding goodwill, patents, trademarks, trade names, organization expense, unamortized debt discount and expense, capitalized or deferred research and development costs, deferred marketing
expenses, deferred receivables, and other like intangibles, and monies due from affiliates, officers, directors, employees, shareholders, members or managers of Borrower) plus the non-current portion of liabilities subordinated to Bank in a manner
acceptable to Bank, less Total Liabilities, including but not limited to accrued and deferred income taxes, and any reserves against assets. 
  
 ii. Current Maturity Coverage Ratio. Maintain on a consolidated basis a Current Maturity Coverage Ratio of at least 1.50 to 1.00.

  
 “Current Maturity Coverage Ratio” means the ratio of Cash Flow to
the sum of the current portion of long-term liabilities plus interest expense plus the current portion of capital leases. “Cash Flow” is defined as net income of the Corporate Guarantor and the Borrower determined on a consolidated basis,
after taxes, plus depreciation, depletion, amortization and other non-cash charges plus interest expense, minus dividends, withdrawals, loans, advances, and other distributions to the Corporate Guarantor’s and the Borrower’s owners,
partners, members, stockholders, or affiliates, minus non-financed capital expenditures, minus extraordinary income. This ratio will be calculated at the end of each reporting period for which the Bank requires financial statements from the
Borrower, using the results of the twelve-month period ending with that reporting period and annually based on the audited fiscal year-end financial statements. The current portion of long-term liabilities will be measured as of the date twelve (12)
months prior to the current financial statement. 
  
 iii.
Funded Debt to EBITDA Ratio. Maintain on a consolidated basis a Funded Debt to EBITDA Ratio not exceeding the ratios set forth opposite each period set forth below: 
  

	 Period

	  	 Funded Debt to EBITDA Ratio

	 The date hereof through December 31, 2003
	  	 4.25 to 1.00

		
	 January 1, 2004 through September 30, 2004
	  	 4.00 to 1.00

		
	 From October 1, 2004 and Thereafter
	  	 3.75 to 1.00

  

 3 

 “Funded Debt” means all outstanding indebtedness for borrowed money and other interest-bearing indebtedness,
including current and long-term indebtedness. 
  
 “Funded
Debt to EBITDA Ratio” means the ratio of Funded Debt to EBITDA. This ratio will be calculated at the end of each reporting period for which the Bank requires financial statements from the Borrower, using the results of the twelve-month period
ending with that reporting period and annually based on the audited fiscal year-end financial statements. 
  
 “EBITDA” means the sum of net income before taxes, plus interest expense, plus depreciation, depletion, amortization and other non-cash
charges. 
  
 B. Financial Statements and Other
Information. Maintain a system of accounting sufficient to prepare financial statements in accordance with GAAP, permit Bank’s officers or authorized representatives to visit and inspect Borrower’s books of account and other records at
such reasonable times and as often as Bank may desire, and pay the reasonable fees and disbursements of any accountants or other agents of Bank selected by Bank for the foregoing purposes. Unless written notice of another location is given to Bank,
Borrower’s books and records will be located at Borrower’s chief executive office set forth above. All financial statements called for below shall be prepared in form and content acceptable to Bank and by independent certified public
accountants acceptable to Bank. 
  
 In addition, Borrower will: 
  
 i. Furnish to Bank audited consolidated financial statements of the
Corporate Guarantor and the Borrower for each fiscal year of Borrower, within 95 days after the close of each such fiscal year. 
  
 ii. Furnish to Bank interim CPA-reviewed consolidated financial statements (including a balance sheet and profit and loss statement) of the Corporate
Guarantor and the Borrower for each quarter of each fiscal year of Borrower, within 50 days after the close of each such period. 
  
 iii. Furnish to Bank annual financial statements of Reginald M. Fountain, Jr. on a form reasonably acceptable to the Bank. 
  
 iv. Furnish to Bank a compliance certificate for (and executed by an
authorized representative of) Borrower concurrently with and dated as of the date of delivery of each of the financial statements as required in paragraphs i and ii above, containing (a) a certification that the financial statements of even date are
true and correct and that the Borrower is not in default under the terms of this Agreement, and (b) computations and conclusions, in such detail as Bank may reasonably request, with respect to compliance with this Agreement, and the other Loan
Documents, including computations of all quantitative covenants. 
  
 v. Furnish to Bank monthly reporting on trading assets, including an aging of accounts receivable and an inventory listing to include work in process, within 15 days after the end of each month. 
  
 vi. Furnish to Bank an annual capital expenditures budget on or before May
31 of each year. 
  
 vii. Furnish to Bank annual financial
statement projections on or before May 31 of each year. 
  
 viii.
Furnish to Bank promptly such additional information, reports and statements respecting the business operations and financial condition of the Corporate Guarantor and the Borrower, respectively, from time to time, as Bank may reasonably request.

  
 C. Insurance. Maintain insurance with responsible
insurance companies on such of its properties, in such amounts and against such risks as is customarily maintained by similar businesses operating in the same vicinity, specifically to include fire and extended coverage insurance covering all
assets, business interruption insurance, workers compensation insurance and liability insurance, all to be with such companies and in such amounts as are reasonably satisfactory to Bank and providing for at least 30 days prior notice to Bank of any
cancellation thereof. Satisfactory evidence of such insurance will be supplied to Bank prior to funding under the Loan(s) and 30 days prior to each policy renewal. 
  
 D. Existence and Compliance. Maintain its existence, good standing and qualification to do business, where required
and comply with all laws, regulations and governmental requirements including, without limitation, environmental laws applicable to it or to any of its property, business operations and transactions, except where failure to be in good standing, to
be qualified or to be in compliance would not reasonably be expected to have a Material Adverse Effect. 
  
 E. Taxes and Other Obligations. Pay all of its taxes, assessments and other obligations, including, but not limited to taxes, costs or other
expenses arising out of this transaction, as the same become due and payable, except (i) to the extent the same are being contested in good faith by appropriate proceedings in a diligent manner and against which adequate reserves have been
established in accordance with GAAP, and (ii) in the case of any taxes, assessments or other obligations (other than Federal taxes), to the extent such failure would not reasonably be expected to have a Material Adverse Effect. 
  
 F. Maintenance. Maintain all of its tangible property in good
condition and repair (ordinary wear and tear excepted) and make all necessary replacements thereof, and preserve and maintain all licenses, trademarks, privileges, permits, franchises, certificates and the like necessary for the operation of its
business. 
  

 4 

 G. Environmental. Immediately advise Bank in writing of (i) any and all enforcement, cleanup,
remedial, removal, or other governmental or regulatory actions instituted, completed or threatened pursuant to any applicable federal, state, or local laws, ordinances or regulations relating to any Hazardous Materials affecting Borrower’s
business operations; and (ii) all claims made or threatened by any third party against Borrower relating to damages, contribution, cost recovery, compensation, loss or injury resulting from any Hazardous Materials. Borrower shall immediately notify
Bank of any remedial action taken by Borrower with respect to Borrower’s business operations. Borrower will not use or permit any other party to use any Hazardous Materials at any of Borrower’s places of business or at any other property
owned by Borrower except such materials as are incidental to Borrower’s normal course of business, maintenance and repairs and which are handled in material compliance with all applicable material environmental laws. Borrower agrees to permit
Bank, its agents, contractors and employees to enter and inspect any of Borrower’s places of business or any other property of Borrower at any reasonable times upon three (3) days prior notice for the purposes of conducting an environmental
investigation and audit (including taking physical samples) to insure that Borrower is complying with this covenant and Borrower shall reimburse Bank on demand for the costs of any such environmental investigation and audit. Borrower shall provide
Bank, its agents, contractors, employees and representatives with access to and copies of any and all data and documents relating to or dealing with any Hazardous Materials used, generated, manufactured, stored or disposed of by Borrower’s
business operations within five (5) days of the request therefore. 
  
 H. Deposit Accounts. Maintain all of its primary deposit accounts with the Bank. 
  
 I. Swap Agreement. On or before the date hereof, the Borrower shall enter into a Swap Agreement with respect to the obligations of the Borrower
evidenced by the Note in an aggregate notional amount not less than fifty percent (50%) of the amount of the Loan. 
  
 5. NEGATIVE COVENANTS. Until full payment and performance of all obligations of Borrower under the Loan Documents, Borrower will not,
without the prior written consent of Bank (and without limiting any requirement of any other Loan Documents): 
  
 A. Disposal of Assets Outside Ordinary Course of Business. Sell, assign, lease, transfer or otherwise dispose of any part of Borrower’s
business or Borrower’s assets, except in the ordinary course of Borrower’s business. 
  
 B. Liens. Grant, suffer or permit any contractual or noncontractual lien on or security interest in its assets, except Permitted Liens. 
  
 C. Borrowings. Create, incur, assume or become liable in any manner for any indebtedness (for borrowed money,
deferred payment for the purchase of assets, lease payments, as surety or guarantor for the debt of another, or otherwise) other than to Bank, except for (i) normal trade debts incurred in the ordinary course of Borrower’s business, (ii)
existing indebtedness disclosed to Bank in writing and acknowledged by Bank prior to the date of this Agreement, and (iii) indebtedness for equipment leases provided that the aggregate annual lease payments permitted under this clause (iii) shall in
no event exceed $50,000. 
  
 D. Character of Business.
Change the general character of business as conducted at the date hereof, or engage in any type of business not reasonably related to its business as presently conducted. 
  
 E. Change of Management. Permit Reginald M. Fountain, Jr. to cease to serve as Chief Executive Officer unless within
180 days the Borrower shall have selected a successor Chief Executive Officer reasonably acceptable to the Bank. 
  
 F. Suspend Business. Voluntarily liquidate, dissolve or suspend its business. 
  
 G. Investments. Purchase, own, invest in or otherwise acquire, directly or indirectly, any stock or other securities,
or make or permit to exist any interest whatsoever in any other person or permit to exist any loans or advances to any person, except that the Borrower may maintain investments or invest in (i) U. S. Government obligations, (ii) stock of
subsidiaries, (iii) bank deposits in the ordinary course of business, (iv) the cash reserve account described in and governed by the Blocked Account Agreement among the Borrower, the Bank and Brunswick Corporation dated as of the date hereof, and
(v) other investments in an aggregate principal amount at any time outstanding not to exceed $100,000. 
  
 H. Merger or Consolidation. Consolidate with or merge into any other person or permit any other person to merge into the Borrower. 
  
 I. Dividends and Distributions. Make any dividends or distributions or
apply or set apart any of its assets therefore or agree to do any of the foregoing. 
  
 6. EVENTS OF DEFAULT. The occurrence of any of the events set forth in Section 10 of the Note shall constitute an Event of Default hereunder. 
  
 7. REMEDIES UPON EVENT OF DEFAULT. If an Event of Default shall occur, Bank shall have all rights, powers and
remedies available under each of the Loan Documents as well as all rights and remedies available at law or in equity. 
  
 8. NOTICES. All notices, requests or demands which any party is required or may desire to give to any other party under any provision of
this Agreement must be in writing delivered to the other party at the following address: 
  
 Borrower: 
 Fountain Powerboats, Inc. 
 1653 Whichards Beach Road 
 Washington, North
Carolina 27889 
 Fax. No. (252) 975-0750 
  

 5 

 With a copy to: 
  

Brunswick Corporation 
 1 North Field Court

 Lake Forest, Illinois 60045-4811 
 Attention: General Counsel 
 Fax No. (920) 929-5253 
  
 Bank: 
 Bank of
America, N.A. 
 NC7-002-02-01 
 One Hannover Square, Suite 201 
 Raleigh, North Carolina 27601 
 Fax No. (919) 829-6604 
  
 or to such other address as any party may designate by written notice to the other party. Each such notice, request and demand shall be deemed given or made as follows:

  
 A. If sent by mail, upon the earlier of the date of receipt or
five (5) days after deposit in the U.S. Mail, first class postage prepaid; 
  
 B. If sent by any other means, upon delivery. 
  
 9. COSTS, EXPENSES AND ATTORNEYS’ FEES. Borrower shall pay to Bank immediately upon demand the full amount of all costs and expenses, including reasonable attorneys’ fees (to include outside
counsel fees and all allocated costs of Bank’s in-house counsel if permitted by applicable law), incurred by Bank in connection with (a) negotiation and preparation of this Agreement and each of the Loan Documents, and (b) all other costs and
attorneys’ fees incurred by Bank for which Borrower is obligated to reimburse Bank in accordance with the terms of the Loan Documents. 
  
 10. MISCELLANEOUS. Borrower and Bank further covenant and agree as follows, without limiting any requirement of any other Loan Document:

  
 A. Cumulative Rights and No Waiver. Each and every
right granted to Bank under any Loan Document, or allowed it by law or equity, shall be cumulative of each other and may be exercised in addition to any and all other rights of Bank, and no delay in exercising any right shall operate as a waiver
thereof, nor shall any single or partial exercise by Bank of any right preclude any other or future exercise thereof or the exercise of any other right. Borrower expressly waives any presentment, demand, protest or other notice of any kind,
including but not limited to notice of intent to accelerate and notice of acceleration. No notice to or demand on Borrower in any case shall, of itself, entitle Borrower to any other or future notice or demand in similar or other circumstances.

  
 B. Applicable Law. This Loan Agreement and the rights
and obligations of the parties hereunder shall be governed by and interpreted in accordance with the laws of North Carolina and applicable United States federal law. 
  
 C. Amendment. No modification, consent, amendment or waiver of any provision of this Loan Agreement, nor consent to
any departure by Borrower therefrom, shall be effective unless the same shall be in writing and signed by an officer of Bank and, in the case of an amendment the Borrower, and then shall be effective only in the specified instance and for the
purpose for which given. This Loan Agreement is binding upon Borrower, its successors and assigns, and inures to the benefit of Bank, its successors and assigns; however, no assignment or other transfer of Borrower’s rights or obligations
hereunder shall be made or be effective without Bank’s prior written consent, nor shall it relieve Borrower of any obligations hereunder. There is no third party beneficiary of this Loan Agreement. 
  
 D. Documents. All documents, certificates and other items required
under this Loan Agreement to be executed and/or delivered to Bank shall be in form and content reasonably satisfactory to Bank and its counsel. 
  
 E. Partial Invalidity. The unenforceability or invalidity of any provision of this Loan Agreement shall not affect the enforceability or validity
of any other provision herein and the invalidity or unenforceability of any provision of any Loan Document to any person or circumstance shall not affect the enforceability or validity of such provision as it may apply to other persons or
circumstances. 
  
 F. Indemnification. Notwithstanding
anything to the contrary contained in Section 10(G), Borrower shall indemnify, defend and hold Bank and its successors and assigns harmless from and against any and all claims, demands, suits, losses, damages, assessments, fines, penalties, costs or
other expenses (including reasonable attorneys’ fees and court costs) arising from or in any way related to any of the transactions contemplated hereby, including but not limited to actual or threatened damage to the environment, costs of
investigation, personal injury or death, or property damage, due to a release or alleged release of Hazardous Materials, arising from Borrower’s business operations, any other property owned by Borrower or in the surface or ground water arising
from Borrower’s business operations, or gaseous emissions arising from Borrower’s business operations or any other condition existing or arising from Borrower’s business operations resulting from the use or existence of Hazardous
Materials, whether such claim proves to be true or false, except, in each case, where arising out of the gross negligence or willful misconduct of the Bank. Borrower further agrees that its indemnity obligations shall include, but are not limited
to, liability for damages resulting from the personal injury or death of an employee of the Borrower, regardless of whether the Borrower has paid the employee under the workmen’ s compensation laws of any state or other similar federal or state
legislation for the protection of employees. The term “property damage” as used in this paragraph includes, but is not limited to, damage to any real or personal property of the Borrower, the Bank, and of any third parties. 
  

 6 

 The Borrower’s obligations under this paragraph shall survive the repayment of the Loan and any deed in lieu of
foreclosure or foreclosure of any Deed to Secure Debt, Deed of Trust, Security Agreement or Mortgage securing the Loan. 
  
 G. Survivability. All covenants, agreements, representations and warranties made herein or in the other Loan Documents shall survive the making of
the Loan and shall continue in full force and effect so long as the Loan is outstanding or the obligation of the Bank to make any advances under the Loan shall not have expired. 
  
 11. ADDITIONAL PROVISIONS: The Borrower shall comply with those additional provisions set forth on Exhibit
“            ” attached hereto and by reference made a part hereof. 
  
 12. ARBITRATION. ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES HERETO INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF OR RELATING
TO THIS INSTRUMENT, AGREEMENT OR DOCUMENT OR ANY RELATED INSTRUMENTS, AGREEMENTS OR DOCUMENTS, INCLUDING ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL BE DETERMINED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT
(OR IF NOT APPLICABLE, THE APPLICABLE STATE LAW), THE RULES OF PRACTICE AND PROCEDURE FOR THE ARBITRATION OF COMMERCIAL DISPUTES OF J.A.M.S./ENDISPUTE OR ANY SUCCESSOR THEREOF (“J.A.M.S.”), AND THE “SPECIAL RULES” SET FORTH
BELOW. IN THE EVENT OF ANY INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL. JUDGMENT UPON ANY ARBITRATION AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. ANY PARTY TO THIS INSTRUMENT, AGREEMENT OR DOCUMENT MAY BRING AN ACTION, INCLUDING A
SUMMARY OR EXPEDITED PROCEEDING, TO COMPEL ARBITRATION OF ANY CONTROVERSY OR CLAIM TO WHICH THIS AGREEMENT APPLIES IN ANY COURT HAVING JURISDICTION OVER SUCH ACTION. FOR THE PURPOSES OF THIS ARBITRATION PROVISION ONLY, THE TERM “PARTIES”
SHALL INCLUDE ANY PARENT CORPORATION, SUBSIDIARY OR AFFILIATE OF BANK INVOLVED IN THE SERVICING, MANAGEMENT OR ADMINISTRATION OF ANY OBLIGATION DESCRIBED OR EVIDENCED BY THIS AGREEMENT. 
  
 A. SPECIAL RULES. THE ARBITRATION SHALL BE CONDUCTED IN THE COUNTY OF ANY BORROWER’S DOMICILE AT THE TIME OF THE
EXECUTION OF THIS INSTRUMENT, AGREEMENT OR DOCUMENT OR IF THERE IS REAL OR PERSONAL PROPERTY COLLATERAL, IN THE COUNTY WHERE SUCH REAL OR PERSONAL PROPERTY IS LOCATED, AND ADMINISTERED BY J.A.M.S. WHO WILL APPOINT AN ARBITRATOR; IF J.A.M.S. IS
UNABLE OR LEGALLY PRECLUDED FROM ADMINISTERING THE ARBITRATION, THEN THE AMERICAN ARBITRATION ASSOCIATION WILL SERVE. NOTWITHSTANDING THE FOREGOING, HOWEVER, IN THE EVENT BRUNSWICK CORPORATION SUCCEEDS TO THE RIGHTS OF THE BANK AS THE HOLDER OF THE
NOTE, THE ARBITRATION SHALL BE CONDUCTED IN LAKE COUNTY, ILINOIS. ALL ARBITRATION HEARINGS WILL BE COMMENCED WITHIN 90 DAYS OF THE DEMAND FOR ARBITRATION; FURTHER, THE ARBITRATOR SHALL ONLY, UPON A SHOWING OF CAUSE, BE PERMITTED TO EXTEND THE
COMMENCEMENT OF SUCH HEARING FOR UP TO AN ADDITIONAL 60 DAYS. 
  
 B. RESERVATION OF RIGHTS. NOTHING IN THIS ARBITRATION PROVISION SHALL BE DEEMED TO (I) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE STATUTES OF LIMITATION OR REPOSE AND ANY WAIVERS CONTAINED IN THIS INSTRUMENT, AGREEMENT OR
DOCUMENT; OR (II) BE A WAIVER BY BANK OF THE PROTECTION AFFORDED TO IT BY 12 U.S.C. SEC. 91 OR ANY SUBSTANTIALLY EQUIVALENT STATE LAW; OR (III) LIMIT THE RIGHT OF BANK HERETO (A) TO EXERCISE SELF HELP REMEDIES SUCH AS (BUT NOT LIMITED TO) SETOFF, OR
(B) TO FORECLOSE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL, OR (C) TO OBTAIN FROM A COURT PROVISIONAL OR ANCILLARY REMEDIES SUCH AS (BUT NOT LIMITED TO) INJUNCTIVE RELIEF, WRIT OF POSSESSION OR THE APPOINTMENT OF A RECEIVER. BANK MAY EXERCISE
SUCH SELF HELP RIGHTS, FORECLOSE UPON SUCH PROPERTY, OR OBTAIN SUCH PROVISIONAL OR ANCILLARY REMEDIES BEFORE, DURING OR AFTER THE PENDENCY OF ANY ARBITRATION PROCEEDING BROUGHT PURSUANT TO THIS INSTRUMENT, AGREEMENT OR DOCUMENT. NEITHER THIS
EXERCISE OF SELF HELP REMEDIES NOR THE INSTITUTION OR MAINTENANCE OF AN ACTION FOR FORECLOSURE OR PROVISIONAL OR ANCILLARY REMEDIES SHALL CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY, INCLUDING THE CLAIMANT IN ANY SUCH ACTION, TO ARBITRATE THE
MERITS OF THE CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH REMEDIES. 
  
 13. NO ORAL AGREEMENT. THIS WRITTEN LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. 
  
 IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed under seal by their duly authorized representatives as of the date first above written. 
  

	 BORROWER: Fountain Powerboats, Inc.
	  	 BANK: Bank of America, N.A.

		
	 By: /s/ Reginald M. Fountain, Jr.
	  	 By: /s/ Paula A. Kirby

	 Name: Reginald M. Fountain, Jr.
	  	 Name: Paula A. Kirby

	 Title: Chairman, CEO and President
	  	 Title: Senior Vice President

		
	 [Corporate Seal]
	  	 

  

 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]