Document:

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                                                                    EXHIBIT 10.7

                               SECURITY AGREEMENT

                                                            Date: March 12, 2002

                                               Secured
Debtor: _________________________________      Party:  AGHI Finance Co, LLC
Address: ________________________________      Address: 2575 Vista del Mar Drive
         ________________________________               Ventura, CA 93001
         ________________________________

Federal Tax I.D. No.: ___________________
Organizational identification
Number issued by state of
Incorporation: __________________________

        1. OBLIGATIONS SECURED. This Agreement secures the following (called the
Obligations "):

        All debts, liabilities and obligations of every type and description
        which the Debtor may now or at any time owe to the Secured Party,
        including but not limited to all principal, interest, and other charges,
        fees, expenses and amounts, and all notes, guaranties, agreements
        (specifically including the guaranty agreement dated the date hereof),
        and other writings in favor of the Secured Party, whether now existing
        or hereafter arising, direct or indirect, due or to become due, absolute
        or contingent, primary or secondary, liquidated or unliquidated,
        independent, joint, several, or joint and several.

        All debts, liabilities and obligations of Holiday RV Superstores, Inc.,
        a Delaware corporation ("Parent") which owns all of the outstanding
        capital stock of Debtor, under (a) that certain promissory note in the
        original principal amount of $1,600,000 from Parent to the Secured
        Party, including but not limited to all principal, interest, charges,
        fees, expenses and amounts, and all amendments, extensions, renewals and
        replacements of such note, and (b) that certain loan and security
        agreement dated the date hereof (the "Loan Agreement") between Parent
        and the Secured Party, including but not limited to all principal,
        interest, charges, fees, expenses and amounts, and all amendments,
        extensions, renewals and replacements of the Loan Agreement.

        2. DEFINED TERMS. Each term defined in Schedule 1 attached hereto is
used herein as therein defined.

        3. SECURITY INTEREST. To secure the prompt and complete payment,
performance and observance of all of the Obligations, the Debtor hereby grants,
assigns, conveys, mortgages, pledges, hypothecates and transfers to the Secured
Party a Lien in and upon all of its right, title and interest in, to and under
all personal property and other assets whether now owned by or owing to, or
hereafter acquired by or arising in favor of Debtor (including under any trade
names, styles or derivations thereof), and whether owned or

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consigned by or to, or leased from or to, Debtor, and regardless of where
located (all of which being hereinafter collectively referred to as the
"Collateral"), including:

                        (i)     all Accounts;

                        (ii)    all Chattel Paper;

                        (iii)   all Documents;

                        (iv)    all Equipment

                        (v)     all General Intangibles (including payment
                                intangibles and Software);

                        (vi)    all Goods (including Inventory, Equipment and
                                Fixtures);

                        (vii)   all Instruments;

                        (viii)  all Inventory, including but not limited to all
                                goods, merchandise and other personal property,
                                now owned or hereafter acquired by Debtor which
                                is held for sale or lease or furnished or to be
                                furnished under a contract for service or raw
                                materials, and all work in progress and
                                materials used or consumed or to be used or
                                consumed in the Debtor's business, including but
                                not limited to all new and used recreational
                                vehicles, boats, and other vehicles, and all
                                keys, parts, returns, repossessions,
                                replacements, attachments, additions, and
                                accessories relating to any of the foregoing;

                        (ix)    all Investment Property;

                        (x)     all Deposit Accounts and all other bank accounts
                                and all deposits therein;

                        (xi)    all money, cash or cash equivalents of Debtor;

                        (xii)   all Supporting Obligations and Letter-of-Credit
                                Rights of Grantor;

                        (xiii)  all amounts payable by, and rights and claims
                                against, any manufacturer or vendor of
                                Inventory, such as volume purchase discounts,
                                advertising rebates, price protection, warranty
                                work, finance reserves, hold-backs, incentives
                                and credits;

                        (xiv)   all property of Debtor now or hereafter in
                                possession of or under control of Lender, or any
                                correspondent or Affiliate of Lender, in any
                                capacity whatsoever, including, but not limited
                                to any deposit

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                                account and any funds or balances in any
                                checking or depository account or investment
                                account;

                        (xv)    all other property of whatever kind or nature
                                (excluding real estate), including but not
                                limited to commercial tort claims;

                        (xvi)   all insurance policies and proceeds relating to
                                the foregoing;

                        (xvii)  all books and records relating to the foregoing;
                                and

        to the extent not otherwise included, all Proceeds, tort claims,
        insurance claims and other rights to payments not otherwise included in
        the foregoing and products of the foregoing and all accessions to,
        substitutions and replacements for, and rents and profits of, each of
        the foregoing.

        4. REPRESENTATIONS, WARRANTIES AND AGREEMENTS. The Debtor represents and
warrants to the Secured Party and agrees as follows:

               a. The Debtor is a corporation incorporated under the laws of the
State of _____________, and the address of the Debtor's chief executive office
is shown at the beginning of this Agreement. The Debtor has not used any trade
name, assumed name, or other name except the Debtor's name stated above and
names set forth on Schedule 2 attached hereto The Debtor shall not change its
state of organization without the Secured Party's prior written consent. The
Debtor shall give the Secured Party at least fifteen (15) days prior written
notice of any change in such address or the Debtor's name or if the Debtor uses
any other name. The Debtor has authority to execute and perform this Agreement.
The Debtor's federal tax identification number is shown above.

               b. If any Collateral is or will become a fixture, the record
owner of the real estate and the legal description of the real estate are set
forth on Schedule 3 attached hereto.

               c. Except as set forth in any existing or future agreement
executed by the Secured Party: the Debtor is the owner of the Collateral, or
will be the owner of the Collateral hereafter acquired, free of all security
interests, liens and encumbrances other than the Security Interest and any other
security interest of the Secured Party; the Debtor shall not permit any security
interest, lien or encumbrance, other than the Security Interest and any other
security interest of the Secured Party, to attach to any Collateral without the
prior written consent of the Secured Party; the Debtor shall defend the
Collateral against the claims and demands of all persons and entities other than
the Secured Party, and shall promptly pay all taxes, assessments and other
Government charges upon or against the Debtor, any Collateral and the Security
Interest; and no financing statement covering any Collateral is on file in any
public office except as set forth on Schedule 4 attached hereto. If any
Collateral is or will become a fixture, the Debtor, at the request of the
Secured Party, shall furnish the Secured Party with a statement or statements
executed by all persons and entities who have or claim an interest in the real
estate, in form acceptable to the Secured Party, which statement or statements
shall provide that such persons and entities consent to the Security Interest.

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               d. The Debtor shall not sell or otherwise dispose of any
Collateral or any interest therein without the prior written consent of the
Secured Party, except that, until the occurrence of an Event of Default or the
revocation by the Secured Party of the Debtor's right to do so, the Debtor may
sell or lease any Collateral constituting Inventory in the ordinary course of
business at prices constituting the fair market value thereof. For purposes of
this Agreement, a transfer in partial or total satisfaction of a debt,
obligation or liability shall not constitute a sale or lease in the ordinary
course of business.

               e. Each Account, Instrument, Investment Property, Chattel Paper,
Letter-of-Credit Right, Letter of Credit, other right to payment, Document, and
General Intangible constituting Collateral is, or will be when acquired, the
valid, genuine and legally enforceable obligation of the account debtor or other
issuer or obligor named therein or in the Debtor's records pertaining thereto as
being, obligated to pay such obligation, subject to no defense, setoff or
counterclaim. The Debtor shall not, without the prior written consent of the
Secured Party, agree to any material modification or amendment of any such
obligation or agree to any subordination or cancellation of any such obligation.

               f. Other than Inventory in transit and motor vehicles in use, all
tangible Collateral shall be located at the Debtor's address stated above and
the addresses set forth in Schedule 5 attached hereto and no such Collateral
shall be located at any other address without the prior written consent of the
Secured Party.

               g. The Debtor shall: (i) keep all tangible Collateral in good
condition and repair, normal depreciation excepted; (ii) from time to time
replace any worn, broken or defective parts thereof; (iii) promptly notify the
Secured Party of any loss of or material damage to any Collateral or of any
adverse change in the prospect of payment of any account, instrument, chattel
paper, other right to payment or General Intangible constituting Collateral;
(iv) not permit any Collateral to be used or kept for any unlawful purpose or in
violation of any federal, state or local law; (v) keep all tangible Collateral
insured in such amounts, against such risks and in such companies as shall be
acceptable to the Secured Party, with lender loss payable clauses in favor of
the Secured Party to the extent of its interest in form acceptable to the
Secured Party (including without limitation a provision for at least 30 days'
prior written notice to the Secured Party of any cancellation or modification of
such insurance), and deliver policies or certificates of such insurance to the
Secured Party; (vi) at the Debtor's chief executive office, keep accurate and
complete records pertaining to the Collateral and the Debtor's financial
condition, business and property, and provide the Secured Party such periodic
reports concerning the Collateral and the Debtor's financial condition, business
and property as the Secured Party may from time to time request; (vii) at all
reasonable times permit the Secured Party and its representatives to examine and
inspect any Collateral, and to examine, inspect and copy the Debtor's records
pertaining to the Collateral and the Debtor's financial condition, business and
property; and (viii) at the Secured Party's request, promptly execute, endorse
and deliver such financing statements and other instruments, documents, control
agreements, chattel paper and writings and take such other actions deemed by the
Secured Party to be necessary or desirable to establish, protect, perfect or
enforce the Security Interest and the rights of the Secured Party under this
Agreement and applicable law, and pay

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all costs of filing financing statements and other writings in all public
offices where filing is deemed by the Secured Party to be necessary or
desirable.

               h. The Debtor authorizes the Secured Party to file all of the
Secured Party's financing statements and amendment to financing statements, and
all terminations of the filings of other secured parties, all with respect to
the Collateral, in such form and substance as the Secured Party, in its sole
discretion, may determine.

               i. If requested by Secured Party, Debtor agrees to enter into the
control agreement in the form of Exhibit A attached hereto for any financial
institution where Debtor's funds are located.

        5. COLLECTION RIGHTS. At any time after an Event of Default, the Secured
Party may, and at the request of the Secured Party the Debtor shall, promptly
notify any account debtor, issuer or obligor of any Account, Instrument,
Investment Property, Chattel Paper, Letter-of-Credit Right, Letter of Credit,
other right to payment or General Intangible constituting Collateral that the
same has been assigned to the Secured Party and direct such account debtor,
issuer or obligor to make all future payments to the Secured Party. In addition,
at the request of the Secured Party, the Debtor shall deposit in a collateral
account designated by the Secured Party all proceeds constituting Collateral, in
their original form received (with any necessary endorsement), within one
business day after receipt of such proceeds by the Debtor. Until the Debtor
makes each such deposit, the Debtor will hold all such proceeds separately in
trust for the Secured Party for deposit in such collateral account, and will not
commingle any such proceeds with any other property. The Debtor shall have no
right to withdraw any funds from such collateral account, and the Debtor shall
have no control over such collateral account. Such collateral account and all
funds at any time therein shall constitute Collateral under this Agreement.
Before or upon final collection of any funds in such collateral account, the
Secured Party, at its discretion, may release any such funds to the Debtor or
any Account of the Debtor or apply any such funds to the Obligations whether or
not then due. Any release of funds to the Debtor or any Account of the Debtor
shall not prevent the Secured Party from subsequently applying any funds to the
Obligations. All items credited to such collateral account and subsequently
returned and all other costs, fees and charges of the Secured Party in
connection with such collateral account may be charged by the Secured Party to
any account of the Debtor, and the Debtor shall pay the Secured Party all such
amounts on demand.

        6. LIMITED POWER OF ATTORNEY. If the Debtor at any time fails to perform
or observe any agreement herein, the Secured Party, in the name and on behalf of
the Debtor or, at its option, in its own name, may perform or observe such
agreement and take any action which the Secured Party may deem necessary or
desirable to cure or correct such failure. The Debtor irrevocably authorizes
Secured Party and grants the Secured Party a limited power of attorney in the
name and on behalf of the Debtor or, at its option, in its own name, to collect,
receive, receipt for, create, prepare, complete, execute, endorse, deliver and
file any and all financing statements, control agreements, insurance
applications, remittances, instruments, documents, chattel paper and other
writings, to grant any extension to, compromise, settle, waive, notify, amend,
adjust, change and release any obligation of any Account Debtor, issuer,

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obligor, insurer or other person or entity pertaining to any Collateral, to
demand terminations of other security interests in any of the Collateral, and to
take any other action deemed by the Secured Party to be necessary or desirable
to establish, perfect, protect or enforce the Security Interest. All of the
Secured Party's advances, fees, charges, costs and expenses, including but not
limited to audit fees and expenses and reasonable attorneys' fees and legal
expenses, in connection with the Obligations and in the protection and exercise
of any rights or remedies hereunder, together with interest thereon at the
highest rate then applicable to any of the Obligations, shall be secured
hereunder and shall be paid by the Debtor to the Secured Party on demand.

        7. EVENTS OF DEFAULT. The occurrence of any of the following events
shall constitute an "Event of Default": (a) any breach or default in the payment
or performance of any of the Obligations; or (b) any breach or default under the
terms of this Agreement or any other note, obligation, mortgage, deed of trust,
assignment, guaranty, other agreement, or other writing heretofore, herewith or
hereafter existing to which the Debtor, Parent or any maker, endorser, guarantor
or surety of any of the Obligations or any other person or entity providing
security for any of the Obligations or for any guaranty of any of the
Obligations is a party; or (c) the insolvency, death, dissolution, liquidation,
merger or consolidation of the Debtor, Parent or any such maker, endorser,
guarantor, surety or other person or entity, or (d) any appointment of a
receiver, trustee or similar officer of any property of the Debtor, Parent or
any such maker, endorser, guarantor, surety or other person or entity; or (e)
any assignment for the benefit of creditors of the Debtor, Parent or any such
maker, endorser, guarantor, surety or other person or entity; or (f) any
commencement of any proceeding under any bankruptcy, insolvency, receivership,
dissolution, liquidation or similar law by or against the Debtor, Parent or any
such maker, endorser, guarantor, surety or other person or entity; or (g) the
sale, lease or other disposition (whether in one or more transactions) to one or
more persons or entities of all or a substantial part of the assets of the
Debtor, Parent or any such maker, endorser, guarantor, surety or other person or
entity; or (h) the Debtor, Parent or any such maker, endorser, guarantor, surety
or other person or entity takes any action to go out of business, or to revoke
or terminate any agreement, liability or security in favor of the Secured Party;
or (i) the entry of any judgment or other order for the payment of money in the
amount of $100,000.00 or more against the Debtor, Parent or any such maker,
endorser, guarantor, surety or any other person or entity; or (j) the issuance
or levy of any writ, warrant, attachment, garnishment, execution or other
process against any property of the Debtor, Parent or any such maker, endorser,
guarantor, surety or any other person or entity; or (k) the attachment of any
tax lien to any property of the Debtor, Parent or any such maker, endorser,
guarantor, surety or other person or entity; or (1) any statement,
representation or warranty made by the Debtor, Parent or any such maker,
endorser, guarantor, surety or other person or entity (or any representative of
the Debtor, Parent or any such maker, endorser, guarantor, surety or other
person or entity) to the Secured Party at any time shall be incorrect or
misleading in any material respect when made; or (m) there is a material adverse
change in the condition (financial or otherwise), business or property of the
Debtor, Parent or any such maker, endorser, guarantor, surety or other person or
entity; or (n) the Secured Party shall in good faith believe that the prospect
for due and punctual payment or performance of any of the Obligations, this
Agreement or any other note, obligation, mortgage, deed of trust, assignment,
guaranty, or other agreement heretofore, herewith or hereafter given to or
acquired by the Secured Party in connection with any of the

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Obligations is impaired; or (o) any "Event of Default" as defined in the Loan
Agreement shall have occurred.

        8. REMEDIES. Upon the commencement of any proceeding under any
bankruptcy law by or against the Debtor or any such maker, endorser, guarantor,
surety or other person or entity, all Obligations automatically shall become
immediately due and payable in full, without declaration, presentment, or other
notice or demand, all of which are hereby waived by the Debtor. In addition,
upon the occurrence of any Event of Default and at any time thereafter, the
Secured Party may exercise any one or more of the following rights and remedies:
(a) declare all Obligations to be immediately due and payable in full, and the
same shall thereupon be immediately due and payable in full, without presentment
or other notice or demand, all of which are hereby waived by the Debtor; (b)
require the Debtor to assemble all or any part of the Collateral and make it
available to the Secured Party at a place to be designated by the Secured Party
which is reasonably convenient to both parties; or (c) exercise and enforce any
and all rights and remedies available upon default under this Agreement, the
Code, and any other applicable agreements and laws. If notice to the Debtor of
any intended disposition of Collateral or other action is required, such notice
shall be deemed reasonably and properly given if mailed by regular or certified
mail, postage prepaid, to the Debtor at the address stated at the beginning of
this Agreement or at the most recent address shown in the Secured Party's
records, at least 10 days prior to the action described in such notice.

        9. JURISDICTION. AT THE OPTION OF SECURED PARTY, THIS AGREEMENT MAY BE
ENFORCED IN ANY FEDERAL COURT OR MINNESOTA STATE COURT SITTING IN MINNEAPOLIS,
MINNESOTA; AND DEBTOR CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT
AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE
EVENT DEBTOR COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY
TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP
CREATED BY THIS GUARANTY, SECURED PARTY AT ITS OPTION SHALL BE ENTITLED TO HAVE
THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED IF
SUCH TRANSFER CAN BE ACCOMPLISHED UNDER APPLICABLE LAW. IF SUCH TRANSFER CANNOT
BE ACCOMPLISHED UNDER APPLICABLE LAW, SECURED PARTY AT ITS OPTION SHALL BE
ENTITLED TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE.

        10. MISCELLANEOUS. A carbon, photographic or other reproduction of this
Agreement is sufficient as a financing statement. No provision of this Agreement
can be waived, modified, amended, abridged, supplemented, terminated or
discharged and the Security Interest cannot be released or terminated, except by
a writing duly executed by the Secured Party. A waiver shall be effective only
in the specific instance and for the specific purpose given. No delay or failure
to act shall preclude the exercise or enforcement of any of the Secured Party's
rights or remedies. All rights and remedies of the Secured Party shall be
cumulative and may be exercised singularly, concurrently or successively at the
Secured Party's option, and the exercise or enforcement of any one such right or
remedy shall not be a condition to or bar the exercise or enforcement of any
other. This Agreement shall bind and

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benefit the Debtor and the Secured Party and their respective heirs,
representatives, successors and assigns and shall take effect when executed by
the Debtor and delivered to the Secured Party, and the Debtor waives notice of
the Secured Party's acceptance hereof. If any provision or application of this
Agreement is held unlawful or unenforceable in any respect, such illegality or
unenforceability shall not affect other provisions or applications which can be
given effect, and this Agreement shall be construed as if the unlawful or
unenforceable provision or application had never been contained herein or
prescribed hereby. All representations and warranties contained in this
Agreement shall survive the execution, delivery and performance of this
Agreement and the creation, payment and performance of the Obligations. This
Agreement and the rights and duties of the parties shall be governed by and
construed in accordance with the internal laws of the State of Delaware
(excluding conflict of law rules).

        THE DEBTOR REPRESENTS AND WARRANTS TO THE SECURED PARTY AND AGREES THAT
THE DEBTOR HAS READ ALL OF THIS AGREEMENT AND UNDERSTANDS ALL OF THE PROVISIONS
OF THIS AGREEMENT.

                                            ___________________________________
                                            Debtor's Name

                                            By:________________________________
                                            Title:_____________________________

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                                                                      SCHEDULE 1

                                   Definitions

        "Account Debtor" means any person who may become obligated to Debtor
under, with respect to, or on account of, an Account, Chattel Paper or General
Intangibles (including a payment intangible).

        "Accounts" means all "accounts," as such term is defined in the Code,
now owned or hereafter acquired by Debtor, including (a) all accounts
receivable, other receivables, book debts and other forms of obligations (other
than forms of obligations evidenced by Chattel Paper, Documents or Instruments),
(including any such obligations that may be characterized as an account or
contract right under the Code), (b) all of Debtor's rights in, to and under all
purchase orders or receipts for goods or services, (c) all of Debtor's rights to
any goods represented by any of the foregoing (including unpaid sellers' rights
of rescission, replevin, reclamation and stoppage in transit and rights to
returned, reclaimed or repossessed goods), (d) all rights to payment due to
Debtor for property sold, leased, licensed, assigned or otherwise disposed of,
for a policy of insurance issued or to be issued, for a secondary obligation
incurred or to be incurred, for energy provided or to be provided, for the use
or hire of a vessel under a charter or other contract, arising out of the use of
a credit card or charge card, or for services rendered or to be rendered by
Debtor or in connection with any other transaction (whether or not yet earned by
performance on the part of Debtor), (e) all health care insurance receivables
and (f) all collateral security of any kind, given by any Account Debtor or any
other Person with respect to any of the foregoing.

        "Chattel Paper" means any "chattel paper," as such term is defined in
the Code, including electronic chattel paper, now owned or hereafter acquired by
Debtor.

        "Code" means the Uniform Commercial Code as the same may, from time to
time, be enacted and in effect in the State of Delaware; provided, that to the
extent that the Code is used to define any term herein or in any Loan Document
and such term is defined differently in different Articles or Divisions of the
Code, the definition of such term contained in Article or Division 9 shall
govern; provided further, that in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of, or
remedies with respect to Secured Party's Security Interest in any Collateral is
governed by the Uniform Commercial Code as enacted and in effect in a
jurisdiction other than the State of Delaware, the term "Code" shall mean the
Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment,
perfection, priority or remedies and for purposes of definitions related to such
provisions.

        "Deposit Accounts" means all "deposit accounts" as such term is defined
in the Code, now or hereafter held in the name of Debtor.

        "Documents" means all "documents" as such term is defined in the Code,
now owned or hereafter acquired by Debtor, wherever located.

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        "Equipment" means all "equipment," as such term is defined in the Code,
now owned or hereafter acquired by Debtor, wherever located and, in any event,
including all Debtor's machinery and equipment, including processing equipment,
conveyors, machine tools, data processing and computer equipment, including
embedded software and peripheral equipment and all engineering, processing and
manufacturing equipment, office machinery, furniture, materials handling
equipment, tools, attachments, accessories, automotive equipment, trailers,
trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock and other
equipment of every kind and nature, trade fixtures and fixtures not forming a
part of real property, together with all additions and accessions thereto,
replacements therefor, all parts therefor, all substitutes for any of the
foregoing, fuel therefor, and all manuals, drawings, instructions, warranties
and rights with respect thereto, and all products and proceeds thereof and
condemnation awards and insurance proceeds with respect thereto.

        "Fixtures" means all "fixtures" as such term is defined in the Code, now
owned or hereafter acquired by Debtor.

        "General Intangibles" means all "general intangibles" as such term is
defined in the Code, now owned or hereafter acquired by Debtor, including all
right, title and interest that Debtor may now or hereafter have in or under any
contract, all payment intangibles, customer lists, licenses, copyrights,
trademarks, patents, and all applications therefor and reissues, extensions or
renewals thereof, rights in Intellectual Property, interests in partnerships,
joint ventures and other business associations, licenses, permits, copyrights,
trade secrets, proprietary or confidential information, inventions (whether or
not patented or patentable), technical information, procedures, designs,
knowledge, know-how, software, data bases, data, skill, expertise, experience,
processes, models, drawings, materials and records, goodwill (including the
goodwill associated with any trademark or trademark license), all rights and
claims in or under insurance policies (including insurance for fire, damage,
loss and casualty, whether covering personal property, real property, tangible
rights or intangible rights, all liability, life, key man and business
interruption insurance, and all unearned premiums), uncertificated securities,
choses in action, deposit, checking and other bank accounts, rights to receive
tax refunds and other payments, rights to receive dividends, distributions,
cash, Instruments and other property in respect of or in exchange for pledged
Stock and Investment Property, rights of indemnification, all books and records,
correspondence, credit files, invoices and other papers, including without
limitation all tapes, cards, computer runs and other papers and documents in the
possession or under the control of Debtor or any computer bureau or service
company from time to time acting for Debtor.

        "Goods" means all "goods" as defined in the Code, now owned or hereafter
acquired by Debtor, wherever located, including embedded software to the extent
included in "goods" as defined in the Code, manufactured homes, standing timber
that is cut and removed for sale and unborn young of animals.

        "Instruments" means all "instruments" as such term is defined in the
Code, now owned or hereafter acquired by Debtor, wherever located, and, in any
event, including all certificated securities, all certificates of deposit, and
all promissory notes and other evidences of

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indebtedness, other than instruments that constitute, or are a part of a group
of writings that constitute, Chattel Paper.

        "Inventory" means all "inventory" as such term is defined in the Code,
now owned or hereafter acquired by Debtor, wherever located, and in any event
including inventory, merchandise, goods and other personal property that are
held by or on behalf of Debtor for sale or lease or are furnished or are to be
furnished under a contract of service, or that constitute raw materials, work in
process, finished goods, returned goods, or materials or supplies of any kind,
nature or description used or consumed or to be used or consumed in Debtor's
business or in the processing, production, packaging, promotion, delivery or
shipping of the same, including all supplies and embedded software.

        "Investment Property" means all "investment property" as such term is
defined in the Code now owned or hereafter acquired by Debtor, wherever located,
including (i) all securities, whether certificated or uncertificated, including
stocks, bonds, interests in limited liability companies, partnership interests,
treasuries, certificates of deposit, and mutual fund shares; (ii) all securities
entitlements of Debtor, including the rights of Debtor to any securities account
and the financial assets held by a securities intermediary in such securities
account and any free credit balance or other money owing by any securities
intermediary with respect to that account; (iii) all securities accounts of
Debtor; (iv) all commodity contracts of Debtor; and (v) all commodity accounts
held by Debtor.

        "Letter-of-Credit Rights" means letter-of-credit rights as such term is
defined in the Code, now owned or hereafter acquired by Debtor, including rights
to payment or performance under a letter of credit, whether or not Debtor, as
beneficiary, has demanded or is entitled to demand payment or performance.

        "Lien" means any security interest, lien, pledge, encumbrance, charge or
adverse claim of any kind, including without limitation any agreement to give or
not to give any lien, or any conditional sale or other title retention
agreement.

        "Proceeds" means "proceeds" as such term is defined in the Code,
including (a) any and all proceeds of any insurance, indemnity, warranty or
guaranty payable to Debtor from time to time with respect to any of the
Collateral, (b) any and all payments (in any form whatsoever) made or due and
payable to Debtor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any governmental authority (or any person acting under color of
governmental authority), (c) any claim of Debtor against third parties (i) for
past, present or future infringement of any patent or patent license, or (ii)
for past, present or future infringement or dilution of any copyright, copyright
license, trademark or trademark license, or for injury to the goodwill
associated with any trademark or trademark license, (d) any recoveries by Debtor
against third parties with respect to any litigation or dispute concerning any
of the Collateral including claims arising out of the loss or nonconformity of,
interference with the use of, defects in, or infringement of rights in, or
damage to, Collateral, (e) all amounts collected on, or distributed on account
of, other Collateral, including dividends, interest, distributions and
Instruments with respect to Investment Property and pledged stock, and (f) any
and all other amounts, rights to payment or

                                       11

<PAGE>

other property acquired upon the sale, lease, license, exchange or other
disposition of Collateral and all rights arising out of Collateral.

        "Software" means all "software" as such term is defined in the Code, now
owned or hereafter acquired by Debtor, other than software embedded in any
category of goods, including all computer programs and all supporting
information provided in connection with a transaction related to any program.

        "Supporting Obligations" means all supporting obligations as such term
is defined in the Code, including letters of credit and guaranties issued in
support of Accounts, Chattel Paper, Documents, General Intangibles, Instruments,
or Investment Property.

                                       12

<PAGE>

                                                                      SCHEDULE 2

                              Other Names of Debtor

                                       13

<PAGE>

                                                                      SCHEDULE 3

                   Owner of Real Estate and Legal Description

                                                                      SCHEDULE 4

                        Prior Financing Statement Filings

                                       14

<PAGE>

                                                                      SCHEDULE 5

                               Inventory Locations

                                       15

<PAGE>

                                                                       EXHIBIT A

                                CONTROL AGREEMENT

                                (DEPOSIT ACCOUNT)

                                                           Date:________________

DEBTOR:             _____________________________
                    _____________________________

Address:            _____________________________
                    _____________________________
                    _____________________________

Fax No:             _____________________________
                    _____________________________

SECURED PARTY:      _____________________________

Address:            _____________________________
                    _____________________________
                    _____________________________

Fax No:             _____________________________

FINANCIAL
INSTITUTION:        _____________________________
                    _____________________________

Address:            _____________________________
                    _____________________________
                    _____________________________

Fax No:             _____________________________

        In consideration of the mutual agreements stated in this Agreement, and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged by each of the parties, the Debtor, the Secured Party,
and the Financial Institution agree as follows:

1. Definitions. In this Agreement:

        (a) "Control" means control of a deposit account, as defined in Revised
Article 9.

                                       1

<PAGE>

        (b)     "Debtor" means each and all of the persons or entities shown
                above as Debtor. All agreements of the Debtor in this Agreement
                are joint, several, and joint and several.

        (c)     "Financial Institution" means the Financial Institution shown
                above.

        (d)     "Instrument" is defined in Revised Article 9.

        (e)     "Revised Article 9" means Revised Article 9 of the Uniform
                Commercial Code.

        (f)     "Secured Party" means the Secured Party shown above.

        (g)     "Security" is defined in Article 8 of the Uniform Commercial
                Code.

2. Security Interest. The Debtor has given the Secured Party a security interest
in, and has assigned to the Secured Party, the following property (the
"Collateral"):

        (a)     All of the Debtor's existing, and future accounts with the
                Financial Institution, and all amendments, extensions, renewals
                and replacements thereof (collectively called the "Account"),
                and all amounts now or at any time hereafter in the Account, and
                all interest and other earnings which may now or hereafter
                accrue thereon, whether now owned or hereafter acquired, whether
                now existing or hereafter arising,, and all proceeds of the
                foregoing property.

        (b)     Account number _________________ with the Financial Institution,
                and all amendments, extensions, renewals and replacements
                thereof (called the "Account"), and all amounts now or at any
                time hereafter in the Account, and all interest and other
                earnings which may now or hereafter accrue thereon, whether now
                owned or hereafter acquired, whether now existing or hereafter
                arising, and all proceeds of the foregoing property.

        Such security interest and assignment are called the "Security
        Interest". The Debtor and the Secured Party hereby give the Financial
        Institution notification of the Security Interest, and the Financial
        Institution acknowledges receipt of such notification.

3.      Control. The Collateral constitutes a deposit account, as defined in
        Revised Article 9. The Debtor represents to the Secured Party and the
        Financial Institution that the transaction secured by the Security
        Interest is not a consumer transaction, as defined in Revised Article 9.
        By entering into this Agreement, the Debtor, the Secured Party, and the
        Financial Institution are giving the Secured Party Control over the
        Collateral, and are perfecting the Security Interest in the Collateral
        by Control. The Financial Institution will comply with all instructions
        originated by the Secured Party directing disposition of the funds in
        the Account without any further consent by the Debtor. This means that
        the Financial Institution will comply with all orders, notices, requests
        and other instructions of the Secured Party relating to the Collateral,
        including but not limited to orders, notices, requests and other
        instructions to withdraw or transfer any Collateral, to redeem or

                                       2

<PAGE>

        terminate the Account, and to pay or transfer any Collateral to the
        Secured Party or any other person or entity.

4.      Rights of Debtor and Others. Until the Financial Institution receives
        notice from the Secured Party that the Debtor's rights are terminated,
        the Financial Institution will comply with all notices, requests and
        other instructions from the Debtor for disposition of funds in the
        Account, including but not limited to orders, notices, requests or
        Instructions to withdraw or transfer any Collateral, and to pay or
        transfer any Collateral to the Debtor or any other person or entity, but
        not to redeem or terminate the Account. Except in accordance with the
        previous sentence, without the Secured Party's written consent the
        Financial Institution will not comply with any order, notice, request or
        other instruction from the Debtor or any other person or entity except
        the Secured Party relating to any Collateral, and the Financial
        Institution will not pay or transfer any Collateral to the Debtor or any
        other person or entity except the Secured Party.

5.      Representations and Agreements. The Debtor and the Financial Institution
        represent to the Secured Party, and agree that:

               (a) No person or entity except the Secured Party has Control over
        any of the Collateral. Neither the Debtor nor the Financial Institution
        has entered into any agreement that gives any person or entity except
        the Secured Party Control over any Collateral. Neither the Debtor nor
        the Financial Institution will permit any person or entity except the
        Secured Party to have Control over any of the Collateral, and neither
        the Debtor nor the Financial Institution will enter into any agreement
        that gives any person or entity except the Secured Party Control over
        any of the Collateral. The Debtor is and will remain the sole account
        holder of the Account. No person or entity (except the Debtor, the
        Secured Party, and the Financial Institution) has any security interest,
        other interest, lien or other right in any of the Collateral. The Debtor
        and the Financial Institution will immediately notify the Secured Party
        if any person or entity (other than the Debtor, the Secured Party, or
        the Financial Institution) makes a claim against any of the Collateral,
        or claims any security interest, other interest, lien or other right in
        any of the Collateral.

               (b) The Financial Institution has not issued, and will not issue,
        any Instrument, Security, or certificate for any Collateral, and the
        Financial Institution will not give to the Debtor or any other person or
        entity any Instrument, Security, or certificate for any Collateral.

               (c) At all times after the Financial Institution's receipt of any
        order, notice, request or other instruction of the Secured Party under
        Section 3 or 4 of this Agreement, without the Secured Party's consent
        the Financial Institution shall not honor any check or other item drawn
        on the Account or any other withdrawal or transfer from the Account,
        except in favor of the Secured Party.

               (d) The Financial Institution agrees that all of the Financial
        Institution's existing and future security interests, liens, claims,
        rights of setoff and recoupment, and other right, title and interest in
        any of the Collateral are fully subordinate to the Security

                                       3

<PAGE>

        Interest. The Financial Institution will not assert or enforce any of
        the Financial Institution's existing or future security interests,
        liens, claims, rights of setoff or recoupment, or other right, title or
        interest in any of the Collateral. Notwithstanding the foregoing, the
        Financial Institution may char-e the Account for the Financial
        Institution's standard account fees for the Account.

               (e) The Financial Institution is a bank, as defined in Revised
        Article 9. The State of ______________ is the Financial Institution's
        jurisdiction for purposes of Revised Article 9.

               (f) At the Secured Party's request, the Financial Institution
        will send to the Secured Party a copy of the Financial Institution's
        statements on the Collateral and any other information about the
        collateral. The Financial Institution will comply with all other orders,
        notices, requests and other instructions of the Secured Party relating
        to any of the Collateral.

6.      Tax Reporting. Until the Secured Party notifies the Financial
        Institution to use a different name and number, the Financial
        Institution will make all reports relating to the Collateral to all
        federal, state and local tax authorities under the name and tax
        identification number of the Debtor.

7.      Other Provisions. No provision in this Agreement can be amended,
        modified, waived, or terminated, except by a writing executed by the
        Debtor, the Secured Party, and the Financial institution. All notices,
        orders, requests, and other instructions and communications to any party
        under this Agreement shall be delivered, mailed, or faxed to such
        party's address or fax number stated above. This Agreement shall bind
        and benefit the parties and their respective heirs, representatives,
        successors and assigns. This Agreement may be enforced in an action for
        specific performance. This Agreement shall be governed by and construed
        in accordance with the laws of the state specified above. This Agreement
        may be executed in counterparts, and all counterparts together
        constitute one and the same Agreement.

             [The balance of this page is intentionally left blank.]

                                       4

<PAGE>

        Executed as of the date first above written.

                                        _______________________________________
                                        Debtor

                                        _______________________________________
                                        _______________________________________

                                        _______________________________________
                                        Secured Party

                                        By:____________________________________
                                        Title:_________________________________

                                        _______________________________________
                                        Financial Institution

                                        By:____________________________________
                                        Title:_________________________________

Acknowledgment of Financial Institution:

STATE OF ___________________________)
                                    )  SS.
COUNTY OF __________________________)

        This instrument was acknowledged before me on _________________,
_________ by ___________________________, as ____________________ of
___________________, a ______________________________, on behalf of the
_____________________.

        (Seal)
                                         ______________________________________
                                         Notary Public
                                         My commission expires:

                                       5<PAGE>
                                                                    Exhibit 10.8

This Document Prepared By and
After Recording Return To:
Bruce J. Parker, Esq.
Kaplan, Strangis and Kaplan, P.A.
90 South Seventh Street, Suite 5500
Minneapolis, MN  55402

                    LEASEHOLD MORTGAGE AND SECURITY AGREEMENT
                               TO SECURE GUARANTY

            THIS LEASEHOLD MORTGAGE AND SECURITY AGREEMENT TO SECURE GUARANTY
(the "Mortgage") is made this 12th day of March, 2002, between
__________________________ ("Mortgagor"), whose address is 200 East Broward
Blvd, Suite 920, Ft. Lauderdale, Florida 33301, and AGHI FINANCE CO, LLC, a
Delaware limited liability company (the "Mortgagee") whose address is 2575 Vista
del Mar Drive, Ventura, CA 93001.

                                    RECITALS:

            Holiday RV Superstores, Inc., a Delaware corporation (the
"Borrower") entered into that certain Loan and Security Agreement in favor of
Mortgagee, dated March 12, 2002 (the "Loan Agreement"), related to indebtedness
in the current principal amount of $1,600,000 (the "Loan"), which, together with
interest and other charges due thereon, the final payment of which, if not
sooner called by Mortgagee, is due as provided in the Loan Agreement. (The Loan
Agreement and all other documents executed in connection with the Loan
Agreement, including, but not limited to, the promissory note, guarantees, other
mortgages, deeds of trust, security agreements, financing statements,
assignments of rents, and guaranties, shall be collectively referred to as the
"Loan Documents").

            As a condition of Mortgagee's willingness to enter into the Loan
Agreement and making the Loan, Mortgagee has required that Mortgagor executed
and deliver a Guaranty of even date (the "Guaranty").

            NOW, THEREFORE, to secure the performance by Mortgagor of all
covenants and conditions of the Guaranty, including the payment of interest,
principal, fees, other charges and expenses, and all existing or future
guaranties, or other indebtedness owed by Mortgagor to Mortgagee, including,
without limitation, all future advances, obligatory or otherwise,
notwithstanding that such indebtedness is secured by other mortgages, and
including all expenses or obligations incurred by Mortgagee pursuant to any
existing or future mortgage, loan or security agreement (collectively, the
"Obligations"), and in order to charge the properties,
<PAGE>
interests, and rights hereinafter described with such payment and performance,
and for and in consideration of the sum of Ten and 00/100 Dollars ($10.00),
Mortgagor does hereby mortgage to Mortgagee and, where applicable, grant a
security interest in:

                          I. THE MORTGAGED PROPERTY

            (A) All of the land in the County of _________, State of ________,
described on EXHIBIT A attached hereto and made a part hereof, to have and to
hold the same, together with each and every tenement, hereditament, easement,
right, power, privilege, immunity, and appurtenance thereunto belonging or in
anywise appertaining, and the reversion and reversions, remainder and
remainders, and also the estate, right, title, interest, homestead, right of
dower, separate estate, property, possession, and claim whatsoever in law as
well as in equity of Mortgagor of, in, and to the same in every part and parcel
thereof unto Mortgagee in leasehold title pursuant to the lease described on
EXHIBIT B attached hereto. The real property described on Exhibit A is
commercial property and does not constitute the homestead of any individual.

            (B) (i) All personal property and fixtures now or hereafter affixed
to or located on the property described in Paragraph A hereof which is deemed to
be fixtures and a part of the real property under applicable law; (ii) all
articles of personal property and all materials delivered to the property
described in Paragraph A hereof for use in any way thereof, and owned by
Mortgagor; (iii) all contract rights, general intangibles, actions, and rights
in action, including, without limitation, all rights to insurance policies and
proceeds; (iv) all equipment including, without limitation, parts, accessories,
attachments, special tools, additions, and accessions thereto; and (v) all
proceeds, products, replacements, additions, substitutions, renewals, and
accessions of any of the foregoing items. This Mortgage is a self-operative
security agreement with respect to the above described property, but Mortgagor
agrees to execute and deliver on demand such other security agreements,
financing statements, and other instruments as Mortgagee may request in order to
perfect its security interest or to impose the lien hereof more specifically
upon any of such property. Mortgagee shall have all the rights and remedies, in
addition to those specified herein, of a secured party under the _________
Uniform Commercial Code.

            (C) All rents, issues, profits, revenue, income, accounts, proceeds,
and other benefits flowing or derived from the property described in Paragraphs
(A) and (B) hereof, provided, however, that permission is hereby given to
Mortgagor so long as no default has occurred hereunder, to collect, receive, and
use such benefits from the property as they become due and payable, but not in
advance thereof.

            Everything referred to in Paragraphs (A), (B), and (C) hereof, and
any additional property hereafter acquired by Mortgagor and subject to the lien
of this Mortgage, or any part of these properties, is herein referred to as the
"Mortgaged Property."

            PROVIDED, HOWEVER, that this Mortgage secures a maximum of
$1,600,000.00 of the Obligations of the Mortgagor to the Mortgagee;  and

                                       2
<PAGE>
            PROVIDED ALWAYS, that if Mortgagor shall pay to Mortgagee all sums
due under the Loan at the time and in the manner stipulated in the Loan
Documents, and in all other instruments securing the Loan, and faithfully
perform all the covenants and agreements in this Mortgage, and in all other
instruments securing the Loan, to be kept, performed, or observed by Mortgagor,
then this Mortgage shall cease and be void.

                          II. COVENANTS OF MORTGAGOR

            2.1. Compliance with Loan Documents. Mortgagor shall comply with all
provisions hereof, of the Loan Agreement, and of the Loan Documents, and will
promptly pay to Mortgagee the principal with interest thereon, and all other
sums required to be paid by Mortgagor under the Loan and the Loan Documents.

            2.2. Payment of Taxes and Liens. Mortgagor shall pay all taxes,
assessments, liens, levies, liabilities, obligations, and encumbrances of every
nature and kind whether now or hereafter imposed, levied, or assessed on the
Mortgaged Property, this Mortgage, or the indebtedness secured hereby. Without
limiting the generality of the foregoing, the Mortgagor shall pay all
obligations secured by Mortgages having priority hereto, and an event of default
upon such prior encumbrances shall be a default hereunder. All such payments
shall be made when due and payable before they become delinquent and before any
interest attaches or any penalty is incurred; provided, however, that the
Mortgagor may withhold tax payments which are contested in good faith by
appropriate judicial or administrative proceedings for so long as such tax
delinquency does not adversely affect the mortgage or lien hereunder. Insofar as
any such lien or encumbrance is of record, the same shall be promptly satisfied
or released and evidence of such satisfaction or release shall be given to
Mortgagee.

            2.3. Insurance. Mortgagor shall keep the improvements now existing
or hereafter erected on the Mortgaged Property and all parts of the Mortgaged
Property insured as may be required from time to time by Mortgagee against loss
by fire or other casualty and contingency in such amounts and for such periods
as may be required by Mortgagee, and to pay promptly, when due, all premiums for
such insurance. All such insurance shall be carried with companies approved by
Mortgagee and the policy and renewals thereof shall be held by Mortgagee and
have attached thereto loss payable clauses in favor of and in form acceptable to
Mortgagee. In the event of loss, Mortgagor shall give immediate notice by mail
to Mortgagee and Mortgagee may make proof of loss if not made promptly by
Mortgagor, and each insurance company concerned is hereby authorized and
directed to make payments for such loss directly to Mortgagee instead of to
Mortgagor, or to Mortgagor and Mortgagee jointly, and the insurance proceeds or
any part thereof may be applied by Mortgagee, at its option, after deducting
therefrom all of its expenses, including, without limitation, attorney's fees
and costs, either to reduction of the indebtedness hereby secured or to the
restoration or repair of the property damaged. In the event of foreclosure of
this Mortgage or other transfer of title to the Mortgaged Property in
extinguishment of the indebtedness secured hereby, all right, title, and
interest of Mortgagor in and to any insurance policies then in force shall pass
to the purchaser or grantee. Mortgagor shall deliver to Mortgagee a certificate
or certificates of insurance evidencing the foregoing coverages in force and
effect, naming Mortgagee an additional loss payee and

                                       3
<PAGE>
providing the insurer shall give Mortgagee not less than 30 days notice of
cancellation, termination, or non-renewal.

            2.4. Condemnation. If all or any material part of the Mortgaged
Property shall be damaged or taken through condemnation (which term when used
herein shall include any damage or taking by any governmental authority or any
other authority authorized by the laws of the State of ________ or the United
States of America to so damage or take, and any transfer by private sale in lieu
thereof), either temporarily or permanently, then the maximum outstanding
indebtedness and other sums secured hereby shall, at the option of Mortgagee,
become immediately due and payable. Mortgagee is hereby authorized, at its
option, to commence, appear in, and prosecute, in its own or Mortgagor's name,
any action, or proceeding relating to any condemnation, and to settle or
compromise any claim in connection therewith. All such compensation, awards,
damages, claims, rights of action, and proceeds, and any other payments or
relief, and the rights thereto, are hereby assigned by Mortgagor to Mortgagee,
who, after deducting therefrom any amounts due upon senior encumbrances, and all
of its expenses, including attorney's fees and costs, may release any monies so
received by it for the benefit of Mortgagor, without affecting the lien of this
Mortgage or may apply the same, in such manner as Mortgagee shall determine, to
the reduction of the sums secured hereby, this Mortgage, or any other
instruments securing the Loan. Any balance of such monies then remaining shall
be paid to Mortgagor. Mortgagor agrees to execute such further assignments of
any compensations, awards, damages, claims, rights of action, and proceeds as
Mortgagee may require. For the purposes of this paragraph, a "material part"
shall mean such portion of the Mortgaged Property that the removal of which
would render it impracticable to be used for its intended purpose.

            2.5. Care of Mortgaged Property. Mortgagor shall not remove or
demolish any building or other property forming a part of the Mortgaged Property
without the prior written consent of Mortgagee, nor permit, commit, or suffer
any waste, impairment, or deterioration of the Mortgaged Property or any part
thereof, and shall keep the same and the improvements thereof in good condition
and repair. Mortgagor shall notify Mortgagee in writing within five (5) days of
any injury, damage, or impairment of or occurring on the Mortgaged Property
including, without limitation, serious injury or loss by death or otherwise
occurring on the Mortgaged Property. Mortgagee may, at Mortgagee's discretion,
have the Mortgaged Property inspected at the time.

            2.6. Mortgagee's Right to Make Certain Payments. In the event
Mortgagor fails to observe, comply with or perform any of the agreements, terms,
covenants and conditions of the Lease, or any amendments and modifications
thereof, or fails to pay and/or discharge the taxes, assessments, liens, levies,
liabilities, obligations, and encumbrances, or fails to keep the Mortgaged
Property insured or to deliver the policies, premiums paid, or fails to repair
the Mortgaged Property as herein agreed, Mortgagee is hereby authorized, at its
election, to pay and/or discharge the taxes, assessments, liens, levies,
liabilities, obligations, and encumbrances, or any part thereof, without being
required to investigate the validity and/or necessity thereof, and without
Mortgagee waiving or affecting any option, lien, equity, or right under or by
virtue of this Mortgage. The full amount of each and every such payment made by
Mortgagee shall be due and payable by Mortgagor within five (5) days of written
demand and shall bear interest

                                       4
<PAGE>
from the date thereof until paid at the Default Rate, as hereinafter defined,
and together with such interest, shall be secured by the lien of this Mortgage.
Nothing herein contained shall be construed as requiring Mortgagee to advance or
expend monies for any of the purposes mentioned in this Paragraph.

            2.7. Payment of Expenses. Mortgagor shall pay all of the costs,
charges, and expenses, including, without limitation, reasonable attorney's fees
and costs, disbursements, and costs of abstracts of title, incurred or paid at
any time by Mortgagee because and/or in the event of the failure on the part of
Mortgagor promptly and fully to perform, comply with, and abide by each and
every stipulation, agreement, condition, and covenant of the Loan Documents.
Such costs, charges, and expenses shall be immediately due and payable, without
notice, demand, attempt to collect, or suit pending. The full amount of each and
every payment shall bear interest from the date thereof until paid at the
Default Rate, as hereinafter defined. All such costs, charges and expenses so
incurred or paid, together with such interest, shall be secured by the lien of
this Mortgage.

            2.8. No Transfer. Mortgagor covenants and agrees not to sell,
convey, transfer, lease, or further encumber any interest in or any part of the
Mortgaged Property without the prior written consent of Mortgagee, and any such
sale, conveyance, transfer, lease, or encumbrance made without Mortgagee's prior
written consent shall be null and void. If any person should obtain an interest
in all or any part of the Mortgaged Property pursuant to the execution or
enforcement of any lien, security interest, or other right, directly or
indirectly, whether superior, equal or subordinate to this Mortgage or the lien
hereof, such event shall be deemed to be a transfer by Mortgagor and a default
hereunder.

            2.9. After Acquired Property. The lien of this Mortgage will
automatically attach, without further act, to all after acquired property,
whether real or personal, located in or on, or attached to, or used or intended
to be used in connection with or with the operation of the Mortgaged Property.

            2.10. Additional Documents. At any time and from time to time, upon
Mortgagee's request, Mortgagor shall make, execute, and deliver or cause to be
made, executed and delivered to Mortgagee and, where appropriate, shall cause to
be recorded or filed and from time to time thereafter to be rerecorded or
refiled at such time and in such offices and places as shall be deemed desirable
by Mortgagee any and all such further mortgages, instruments of further
assurance, certificates, and other documents as Mortgagee may consider necessary
or desirable in order to effectuate, complete, enlarge, or perfect, or to
continue and preserve the obligations of Mortgagor under the Loan Documents, and
the lien of this Mortgage upon all of the Mortgaged Property, whether now owned
or hereafter acquired by Mortgagor. Upon failure by Mortgagor to do so,
Mortgagee may make, execute, record, file, rerecord, refile any and all such
mortgages, instruments, certificates, and documents for and in the name of
Mortgagor, and Mortgagor hereby irrevocably appoints Mortgagee as the agent and
attorney-in-fact of Mortgagor to do so.

                                       5
<PAGE>
                            III. EVENTS OF DEFAULT

            Any one of the following shall constitute an Event of Default:

                  (a) Failure by Mortgagor to pay to Lender any amount when due
under the Loan Documents, including but not limited to the payment of principal
or interest due under the Loan, and any fees, other charges or expenses payable
under the Loan Agreement.

                  (b)   There is an Event of Default as defined in the Loan
Agreement.

                  (c) Failure by Mortgagor to duly keep, perform, and observe
any covenant, condition, or agreement in the Loan Documents for a period of
thirty (30) days after Mortgagee gives written notice specifying the failure,
except for any payment obligations covered under clause (a) above for which
there shall be no requirement to give notice or opportunity to cure.

                  (d) If Mortgagor or any guarantor of the Loan (i) files a
voluntary petition in bankruptcy, or (ii) is adjudicated as bankrupt or
insolvent, or (iii) files any petition or answer seeking or acquiescing in any
reorganization, management, composition, readjustment, liquidation, dissolution,
or similar relief for itself under any law relating to bankruptcy, insolvency,
or other relief for debtors, or (iv) seeks, consents to, or acquiesces in the
appointment of any trustee, receiver, master, or liquidator of itself or of all
of any part of the Mortgaged Property, or (v) makes any general assignment for
the benefit of creditors, or (vi) makes any admission in writing of its
inability to pay its debts generally as they become due; or (vii) becomes
subject to any order, judgment, or decree which involves a court arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under any
present or future federal, state, or other statute, law, or regulation relating
to bankruptcy, insolvency, or other relief for the debtors, which order,
judgment, or decree remains unvacated and unstayed for an aggregate period of
sixty (60) days, whether or not consecutive, from the date of entry thereof; or
(viii) any trustee, receiver, or liquidator of Mortgagor or of any part of the
Mortgaged Property is appointed without the prior written consent of Mortgagee,
which appointment shall remain unvacated and unstayed for an aggregate of sixty
(60) days, whether or not consecutive.

                  (e) Any breach of any warranty or material untruth of any
representation of Mortgagor contained in the Loan Documents.

                  (f) An event of default under any existing or future notes,
loans, advances, guarantee, or other indebtedness owed to the Mortgagee by the
Mortgagor, or any or either of them, or under any instrument securing such
indebtedness.

                  (g)   An event of default under the Lease.

                                       6
<PAGE>
                          IV. REMEDIES OF MORTGAGEE

            4.1. Acceleration. If an Event of Default shall have occurred, which
has not been cured within the applicable cure period, Mortgagee may declare the
outstanding principal amount of the Loan, the interest accrued thereon, and all
other sums secured hereby, to be due and payable without demand, notice, or
presentment for payment.

            4.2. Other Remedies. If an Event of Default shall have occurred,
Mortgagee may proceed by suit or suits at law or in equity or by any other
appropriate proceeding or remedy; (a) to enforce payment of the Loan or the
performance of any term hereof or any other right; (b) to foreclose this
Mortgage and to sell, as an entirety or in separate lots or parcels, the
Mortgaged Property under the judgment or decree of a court or courts of
competent jurisdiction; (c) to collect all rents, issues, profits, revenues,
income, accounts, proceeds, or other benefits from the Mortgaged Property; (d)
to seek appointment of a receiver to enter upon and take possession of the
Mortgaged Property and to collect all rents, issues, profits, revenues, income,
accounts or other benefits thereof and apply the same as the court may direct,
and such receiver shall have all rights and powers permitted under law; and (e)
to pursue any other remedy available to it, including taking possession of the
Mortgaged Property without notice or hearing to Mortgagor. Mortgagee shall take
action either by such proceedings or by the exercise of its power with respect
to entry or taking possession, or both, as Mortgagee may determine.

            4.3. No Waiver. No delay or omission of Mortgagee or of any owner
and holder of the Loan and the Loan Documents to exercise any right, power, or
remedy accruing upon any Event of Default shall exhaust or impair any such
right, power, or remedy to be construed as a waiver of any such Event of Default
or constitute acquiescence therein.

            4.4. Non-Exclusive Remedies. No right, power, or remedy conferred
upon or reserved to Mortgagee by the Loan Documents, is exclusive of any other
right, power or remedy of Mortgagee, but each and every such right, power and
remedy shall be cumulative and concurrent and shall be in addition to any other
right, power or remedy given hereunder, under the Loan Documents, or now or
hereafter existing at law, in equity, or by statute.

                               V. MISCELLANEOUS

            5.1. Successors and Assigns Bound. Whenever one of the parties
hereto is named or referred to herein, the heirs, personal representatives,
successors, and assigns of such party shall be included, and all covenants and
agreements contained in this Mortgage, by or on behalf of Mortgagor or
Mortgagee, shall bind and inure to the benefit of their respective heirs,
personal representatives, successors and assigns.

            5.2. Invalid or Unenforceable. In the event that any of the
covenants, agreements, terms, or provisions contained in the Loan Agreement, or
the other Loan Documents, shall be invalid, illegal, or unenforceable in any
respect, the validity of the remaining covenants, agreements, terms or
provisions contained herein, and in any Loan Document, shall not be in any way
affected, prejudiced, or disturbed thereby.

                                       7
<PAGE>
            5.3. Future Advances. Mortgagor acknowledges that Mortgagee has no
obligation to make any future advances, but should Mortgagee elect, in its sole
discretion, to do so, the provisions of this Section 5.3 shall apply. This
Mortgage is given to secure not only existing indebtedness, but also such future
advances, whether such advances are obligatory or are to be made at the option
of Mortgagee, or otherwise, as are made within twenty (20) years from the date
hereof, to the same extent as if such future advances are made on the date of
the execution of this Mortgage. The total amount of indebtedness that may be so
secured at one time shall not exceed $2,000,000.00, plus interest thereon, and
any disbursements made for the payment of taxes, levies, or insurance on the
Mortgaged Property, with interest on such disbursements at the Default Rate as
hereinafter defined.

            5.4.  Obligation of Mortgagor.  Mortgagor shall pay the cost of
releasing or satisfying this Mortgage of record.

            5.5.  Default Rate.  "Default Rate" has the meaning given to it
in the Loan Agreement.

            5.6.  Headings.  The headings of any paragraph of this Mortgage
are for convenience only and shall not be used to interpret any provision
hereof.

            5.7.   Modifications.  No modification hereof or any agreement
referred to herein shall be binding or enforceable unless in writing and
signed on behalf of the party against whom enforcement is sought.

            5.8.   Third Parties.  No rights are intended to be created
hereunder for the benefit of any third party donee, creditor or incidental
beneficiary.

            5.9. Payment of Costs and Expenses. Mortgagor agrees to reimburse
Mortgagee for any of its out-of-pocket costs and expenses (including without
limitation attorneys' fees) arising in connection with the preparation,
negotiation, closing and administration of this Mortgage and the enforcement of
Lender's rights under the Loan Agreement, as amended.

            5.10. Costs, Expenses and Taxes. Mortgagor agrees to pay on demand
(a) all costs and expenses (including reasonable attorneys' fees) of Mortgagee
in connection with any extension, modification, waiver or release of any Loan
Documents, and (b) all costs and expenses of Lender incurred in any work-out,
defense or enforcement of any Loan Documents, including reasonable attorneys'
fees and the costs and expenses of environmental or other consultants. Mortgagor
shall pay any stamp, debt, recordation, withholding and other Taxes payable in
connection with any Loan Documents or payments thereunder (other than Taxes on
the overall net income of Mortgagee), and agree to save Mortgagee harmless from
and against all liabilities relating to any Taxes. All payments by Mortgagor
shall be made free and clear of and without deduction for any Taxes of any
nature now or hereafter existing.

            5.11. Indemnification by Mortgagor. MORTGAGOR AGREES TO INDEMNIFY,
DEFEND AND HOLD HARMLESS MORTGAGEE, ITS AFFILIATES, AND ALL OF THEIR DIRECTORS,
OFFICERS, EMPLOYEES, REPRESENTATIVES, AGENTS, SUCCESSORS, ATTORNEYS AND ASSIGNS,
FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES,
PENALTIES, ACTIONS,

                                       8
<PAGE>
JUDGMENTS, SUITS, CLAIMS, COSTS, EXPENSES AND DISBURSEMENTS OF ANY KIND OR
NATURE WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST ANY
OF THEM IN ANY WAY RELATING TO OR ARISING OUT OF THIS MORTGAGE, ANY TRANSACTION
RELATED HERETO OR THERETO, OR ANY ACT, OMISSION OR TRANSACTION OF MORTGAGOR, ANY
SUBSIDIARY, ANY GUARANTOR OR ANY OF THEIR AFFILIATES, OR ANY OF THEIR DIRECTORS,
OFFICERS, AGENTS, EMPLOYEES OR REPRESENTATIVES; PROVIDED, HOWEVER, THAT
MORTGAGOR SHALL NOT INDEMNIFY, DEFEND AND HOLD HARMLESS ANY INDEMNIFIED PERSON
FOR LOSSES OR DAMAGES THAT MORTGAGOR PROVES WERE CAUSED BY SUCH PERSON'S WILLFUL
MISCONDUCT, GROSS NEGLIGENCE OR OTHER NEGLIGENCE. MORTGAGEE SHALL NOT BE LIABLE
TO MORTGAGOR OR ANY SUBSIDIARY OR ANY GUARANTOR FOR ANY CONSEQUENTIAL DAMAGES.
THIS INDEMNITY SHALL SURVIVE REPAYMENT OF MORTGAGOR'S OBLIGATIONS TO MORTGAGEE.

            5.12. JURY TRIAL WAIVER. BY AGREEING TO BINDING ARBITRATION AS
PROVIDED IN THE LOAN AGREEMENT, THE PARTIES EXECUTING THIS AGREEMENT IRREVOCABLY
AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY CLAIM, DEFENSE, OR DISPUTE WHATSOEVER, WHETHER BASED IN TORT, CONTRACT,
STATUTE OR OTHERWISE, WHETHER AT LAW OR IN EQUITY. FURTHERMORE, THE PARTIES
IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF SUCH CLAIM, DEFENSE, OR DISPUTE. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT.

           [The balance of this page is intentionally left blank.]

                                       9
<PAGE>
            IN WITNESS WHEREOF, Mortgagor has caused this Mortgage to be
executed as of the date and year first above written.

WITNESSES                                 [Name of Mortgagor],
                                          a ______ corporation

___________________________________       By:___________________________________
Signature                                 Name: Marcus A. Lemonis
                                          Title: Chief Executive Officer
___________________________________
Printed Name

___________________________________
Signature

___________________________________
Printed Name

STATE OF MINNESOTA      )
                        ) SS.
COUNTY OF HENNEPIN      )

      The foregoing instrument was acknowledged before me this ___ day of March,
2002 by Marcus A. Lemonis, the Chief Executive Officer of _____________________,
a _________ corporation, on behalf of said corporation.

                                    ___________________________________
                                    Notary Public, State of Minnesota

                                       10
<PAGE>
                                  EXHIBIT A

                              Legal Description

                                       11
<PAGE>
                                  EXHIBIT B

                                    Lease

Date of Lease:   ________________________________________

Lessor:    ______________________________________________

Lessee:   _______________________________________________

Property Address:  ______________________________________

                                       12

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