Document:

Security Agreement

 EXHIBIT 10.4 
  
 SECURITY AGREEMENT 
  
 THIS SECURITY AGREEMENT (the “Agreement”) dated August 12, 2005, is by and among Bullet Freight Systems and Logistics, Inc., a Florida
corporation (“the “Debtor”) and Segmentz, Inc., a Delaware corporation (the “Secured Party”). 
  
 WITNESSETH: 
  
 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 $33,000 (the “1st Note”) and a line of credit promissory note issued by Debtor
to Secured Party in the principal amount of up to $200,000 (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 l(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 7270 NW 35th
Terrace, Miami Florida 33122 (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). 
  
 (1)
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:
	  	Bullet Freight Systems and Logistics, Inc.
	 	  	 7270 NW 35th
Terrace
 Miami, Florida 33122
 Attn: Pedro
Betancourt

		
	 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

  
 (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:
	 	  

	
	 Bullet Freight Systems and Logistics, Inc.

		
	 By:
	 	  

	 Name:
	 	  

	 Its:
	 	  

  

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 Schedule l(a)(i) 
  

Purchased Assets 
  

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 1. Cash accounts in the amount of $136,000. 
  
 2. All right, title, and interest of Seller to the name “Bullet” and all derivatives thereof. 
  
 3. Those assets set forth on the following three pages. 
  

 14Separation Agreement

 Exhibit 10.1 
  
 EMPLOYMENT SEPARATION AGREEMENT 
  
 This is an agreement between you, Kirk G. Anderson, and us, Fisher Media Services Company (“the Company”).
This Agreement is dated for reference purposes July 1, 2005 which is the date we delivered it to you for your consideration. 
  

	1)	Separation Agreement. Your employment by the Company is terminated effective July 29, 2005 (the “Separation Date”), due to elimination of your position.

  

	2)	Compensation. You will be paid your regular salary, less authorized deductions and withholdings, through the Separation Date, and you will be paid for any accrued, unused
vacation in your final paycheck. 

  

	3)	Separation Payment. The Company will provide you an additional lump sum separation payment in the gross amount of one hundred eighty five thousand dollars ($185,000), less
authorized deductions and withholdings. To be eligible for this separation payment, you must continue to perform your duties in a satisfactory manner until your scheduled Separation Date. This separation payment will be made to you following the
expiration of the revocation period set forth at Paragraph 14. You understand and agree that the separation payment to which you would not otherwise be entitled is provided as consideration, and in exchange for, your agreement to the release and
other terms of this Agreement. 

  

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 In the event that you are separated from the Company and subsequently rehired by any Fisher
Communications affiliate or subsidiary and receive compensation from the Company for employment during the period of July 30, 2005 through July 29, 2006, you agree to repay that portion of any separation payment otherwise attributable to the period
following your re-employment, calculated on a weekly basis. (For example, if you received a separation payment equal to 8 weeks’ salary and were rehired 4 weeks after your Separation Date, you agree to repay 4 weeks of the separation payment.
If you received a separation payment equal to 4 weeks’ salary, and were rehired 5 weeks after your Separation Date, you do not have any repayment obligation.) A repayment schedule by payroll deduction or lump sum can be negotiated with
re-employment by any Fisher Communications affiliate or subsidiary. 
  

	4)	SERP. You will become vested in the Termination Benefit under the Company’s Supplemental Pension Plan (the “SERP”) on the Separation Date. Your
Termination Benefit under the SERP is payable to you as a monthly annuity commencing at age sixty-five (65). The Company may, in its sole discretion, pay the Termination Benefit to you as a reduced annuity commencing prior to age sixty-five (65) or
as a lump sum equal to the present value of your accrued benefit. FICA taxes will be due and payable on the present value of your Termination Benefit as of the Separation Date. We intend to withhold the employee portion of such FICA taxes first from
your accrued vacation pay that will be included in your final paycheck and then, if necessary, from your separation payment. 

  

	5)	Stock Options. The Company has previously granted to you options to purchase an aggregate of twenty three thousand, one hundred and thirty-five (23,135) shares of the
Company’s common stock (the “Stock Options”). As of the Separation Date, Stock Options 

  

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 to acquire twelve thousand one hundred thirty five (12,745) shares are vested and two thousand (2,000) of
these vested shares have been previously exercised by you, leaving Stock Options to acquire ten thousand seven hundred forty five (10,745) shares vested and fully exercisable and ten thousand three hundred and ninety (10,390) shares unvested. On the
Separation Date, all Stock Options that have not previously vested will expire. You will have three (3) months following the Separation Date to exercise your vested Stock Options, unless they expire earlier in accordance with their terms.

  

	6)	Employee Benefit Plans. You, your spouse and your dependents will be eligible to continue participation in our group medical, dental and vision plans pursuant to COBRA
for up to 18 months (or longer if applicable under the COBRA regulations) following your separation. The Company will pay up to three hundred and thirty-three dollars and 86 cents ($333.86) each month toward your COBRA premiums, for twelve (12)
months or until you are eligible for coverage under any other group health coverage (as an employee or otherwise), whichever happens first. You will be required to make timely payment of any portion of premiums for which you are responsible. Failure
to submit timely payment of premiums will result in cancellation of COBRA coverage. Your rights under other employee benefit plans in which you may have participated will be determined in accordance with the written plan documents governing those
plans. 

  

	7)	Consulting. Beginning on your Separation Date, and continuing until January 16, 2006, you agree to be available on an as needed basis for up to 40 hours for requests from the
Company for consultation regarding events that occurred during your employment with the Company to facilitate the transition. You and the Company agree that for any hours of consultation that 

  

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 you agree to perform after your Separation Date in excess of 40 hours, the Company will compensate you
for said consultation by an amount to be determined by the parties before any such consultation work is performed by you. 
  

	8)	Career Transition Services. You will be eligible to receive career transition services from The Brighton Group, or a similar provider at the Company’s sole discretion,
in the amount to be determined by the Company and to be paid by the Company directly to The Brighton Group (or similar provider). 

  

	9)	References. Upon your request, the Company will provide a general letter of reference to future potential employers. Requests for such letter should be directed to the Human
Resources Coordinator. 

  

	10)	Release. In return for certain provisions of this Agreement to which you would not otherwise be entitled, you hereby release the Company from any and all claims of any kind,
known or unknown, except claims arising under this Agreement. The claims you are releasing include, without limitation, all claims related to or arising out of your employment with the Company and the separation of that employment. You specifically
waive any rights or claims that you may have under: the Civil Rights Act of 1964 (including Title VII of that Act), or the Age Discrimination in Employment Act of 1967, except that this Agreement does not release any claims under that Act that may
arise after the signing of this Agreement, the Equal Pay Act, the Americans With Disabilities Act and all other applicable federal, state or local laws. The release you are giving releases not only all claims you may have against the Company, but
also all claims you may have against the Company’s past and present 

  

 4 

 shareholders, officers, directors, agents, employees, representatives, attorneys, parents, subsidiaries,
affiliates, benefit plans, predecessors, successors, transferees and assigns. You understand that you are releasing potentially unknown claims, and that you have limited knowledge with respect to some of the claims being released. You agree that
this release is fairly and knowingly made. You assume the risk of any mistake in entering into this Agreement. 
  

	11)	Return of Property. You represent and warrant that you have returned all keys, credit cards, documents, equipment and other material that belongs to the Company on or before
your Separation Date, except where you are expressly authorized in writing by the Company to keep any of these items. 

  

	12)	Confidentiality. You understand and acknowledge that, in order to properly perform your duties the Company has entrusted you with certain proprietary information that is the
result of great effort and expense on the part of the Company, that this proprietary information is critical to the success of the Company and that the disclosure or use of this proprietary information would cause the Company irreparable harm, and
that you, in entering into this Agreement, are fully aware of the Company’s need to protect this proprietary information. You therefore agree not to reveal confidential Company information or trade secrets to any person, firm, corporation, or
entity unless required to do so by a valid subpoena or unless being required to maintain such confidentiality would be in violation of the law. Should you reveal or threaten to reveal this information, the Company shall be entitled to an injunction
restraining you from disclosing same, or from rendering any services to any entity to whom said information has been, or is threatened to be, disclosed. The right to secure an injunction 

  
  

 5 

 is not exclusive, and the Company may pursue any other remedies it has against you for a breach or
threatened breach of this condition, including the recovery of damages from you. This promise is intended to and will apply in the broadest sense possible to information regarding Company’s business activities, plans, audience and clients and
is not intended to be limited solely to matters which might meet the legal definition of “trade secrets” under Washington law. You further agree to keep the terms of this Agreement confidential. You agree that except as otherwise required
by law, you may not disclose to any third party any of the terms of this Agreement, except your spouse, legal counsel, accountants and tax advisors, all of whom shall be bound by this confidentiality provision. You represent and warrant that you
have not already acted inconsistently with the terms of this section. 
  

	13)	Mutual Nondisparagement. You agree that you will not disparage or otherwise malign or prejudice the reputation of the Company, its parents or affiliates or any of
their officers, directors or employees. The Company agrees that it will not disparage or otherwise malign or prejudice your reputation. 

  

	14)	Consideration and Revocation Periods. You agree that you have been advised to consult legal counsel and that you have up to twenty-one (21) calendar days to consider
this Agreement and you may use as much or as little of that time as you wish. You also have seven (7) calendar days following your execution of this Agreement to revoke it. You must make any such revocation in writing to the Vice President Human
Resources. This Agreement shall not become effective or enforceable until the revocation period has expired. 

  

 6 

	15)	Resolution of Claims. The parties shall attempt to resolve through good-faith negotiation any controversy or claim arising out of, or relating to this Agreement, or a
breach thereof, including without limitation, claims under Title VII of the Civil Right Act of 1964, as amended, wrongful discharge, defamation, state anti-discrimination statutes, the Americans with Disabilities Act, wage and hour claims, and any
claim arising out of any other federal or state statute or common law. If negotiation is unsuccessful, the parties agree to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its
Employment Mediation Rules. If mediation is unsuccessful, the dispute shall be settled by final and binding arbitration in Seattle in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration
Association. The only disputes not covered by this paragraph 15 shall be workers compensation claims, claims for unemployment compensation, and claim for injunctive relief and/or equitable relief brought by the Company pursuant to paragraphs 11, 12
and 13 above. The parties agree to abide by and perform in accordance with any award rendered by the arbitrator, and that judgment upon the award rendered may be entered by the prevailing party in any court having jurisdiction thereof. The
arbitrator’s fees and costs of arbitration shall be borne equally by the parties, and each party shall be responsible for its own legal fees and costs. 

  

	16)	Applicable Law. The laws of the State of Washington will govern the validity and execution of this Agreement and the disposition of any claims related to this
Agreement. 

  

	17)	Assignments. Your rights hereunder shall not be assigned or transferred without the Company’s prior written consent. Any assignment without the Company’s prior
written consent shall be null and void. The Company’s rights and obligations under this Agreement will inure to the benefit and be binding upon the Company’s successors and assignees. 

  

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	18)	Complete Agreement. This Agreement is the final and complete expression of all agreements between us on all subjects. You acknowledge that you have had adequate time to
review and consider this Agreement and consult with counsel. You acknowledge you are not signing this Agreement relying on anything not set out herein. 

  

			
	FOR FISHER COMMUNICATIONS, INC.	 	AGREED BY EMPLOYEE:
		
	 /s/ Benjamin Tucker

	 	 /s/ Kirk G. Anderson

	Benjamin Tucker	 	Kirk G. Anderson
	Acting President and CEO	 	 
		
	Date:  8/9/05	 	Date:  8/6/05

  
  

 8

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