Document:

exv10w3

 

EXHIBIT 10.3

THIS INSTRUMENT PREPARED BY

AND SHOULD BE RETURNED TO:

Harlan L. Paul, Esquire

Paul & Elkind, P.A.

142 East New York Avenue

DeLand, Florida 32724

MORTGAGE

     THIS MORTGAGE is executed as of the 30th day of June, 2005, by Volusia Operations,
LLC, a Florida limited liability company, whose mailing address is 2500 McGee Drive, Suite 147,
Norman, Oklahoma 73072, hereinafter called the “Mortgagor”, to Richard F. Murphy whose mailing
address is 2221 Oak Hill Drive, DeLand, Florida 32720 hereinafter called the “Mortgagee” (wherever
used herein the terms “Mortgagor” and “Mortgagee” include all the parties to this instrument and
the heirs, legal representatives and assigns of individuals, and the successors and assigns of said
persons; and the term “Note” means that certain Promissory Note, of even date herewith, in the
original principal amount of $2,000,000, and with Mortgagor as “maker” and Mortgagee as “payee”, a
copy of which is attached hereto as Exhibit A.

     WITNESSETH, that for good and valuable consideration, and also in consideration of the
aggregate sum named in the Note, Mortgagor hereby grants, bargains, sells, aliens, remises, conveys
and confirms unto Mortgagee all the certain land of which Mortgagor is now seized and in possession
situate in Volusia County, Florida, to wit (the “Land”):

SEE EXHIBIT “B” ATTACHED HERETO

     To Have and to Hold the same, together with the tenements, hereditaments and appurtenances
thereto belonging, and the rents, issues and profits thereof, unto the Mortgagee, in fee simple.

     And the Mortgagor covenants with the Mortgagee that, based partially upon the accuracy of the
representations and warranties made by Mortgagee to Mortgagor in the purchase agreement pursuant to
which Mortgagor acquired the Land from Mortgagee: (i) Mortgagor is indefeasibly seized of the Land
in fee simple; (ii) Mortgagor has good right and lawful authority to convey the Land as aforesaid;
(iii) Mortgagor will make such further assurances to perfect the fee simple title to the Land in
the Mortgagee as may reasonably be required; (iv)Mortgagor warrants the title to the Land and will
defend the same against the lawful claims of all persons whomsoever; and (v) the Land is free and
clear of all encumbrances, except 2005 ad valorem taxes.

     Provided Always, that if Mortgagor shall pay unto Mortgagee the Note, and shall perform,
comply with and abide by each and every agreement, stipulations, conditions and covenants thereof,
and of this Mortgage, then this Mortgage and the estate hereby created, shall cease, terminate and
be null and void.

 

 

     And the Mortgagor hereby covenants and agrees:

     1. To pay promptly when due the principal and interest and other sums of money provided for in
the Note and this Mortgage, or either.

     2. To pay all singular the taxes, assessments, levies, liabilities, obligation, and
encumbrances of every nature on the Land.

     3. To permit, commit or suffer no waste, impairment or deterioration of the Land or the
improvements thereon at any time.

     4. To keep the buildings now or hereafter on the Land fully insured in a sum of not less than
the maximum insurable value in a company or companies acceptable to the Mortgagee. In the event of
an insured casualty loss which either (i) takes less than 180 days to repair, or (ii) can be
repaired for less than $200,000, then Mortgagee shall make no claim to the proceeds (provided an
event of default has not occurred under the Note, which has not been cured as provided therein),
and Mortgagee shall promptly use the insurance proceeds to repair said buildings. For all other
casualty losses, insurance proceeds shall be payable 75% to the Mortgagee and 25% to Mortgagor
until the principal and interest and other sums of money payable in the Mote and this Mortgage,
have been fully paid and satisfied (notwithstanding that such obligations may not then otherwise be
due and payable).

     5. To pay all costs, charges, and expenses, including reasonable attorney’s fees and title
searches, reasonably incurred or paid by the Mortgagee because of the failure of the Mortgagor to
promptly and fully comply with the agreements, stipulations, conditions and covenants of the Note
and this Mortgage, or either.

     6. To perform, comply with and abide by each and every the agreements, stipulations,
conditions and covenants set forth in the Note and this Mortgage, or either.

     7. In the event the Mortgagor fails to pay when due any tax, assessment, insurance premium or
other sum of money payable by virtue of this Mortgage, the Mortgagee may pay the same, without
waiving or affecting the option to foreclose or any other right hereunder, and all such payments
shall bear interest from date thereof at the rate equal to the lesser of: (i) ten percent (10%) per
annum; or (ii) the highest lawful rate allowed by applicable law.

     8. If all or any part of the Land is sold or transferred by Mortgagor without Mortgagee’s
prior written consent, excluding: (a) the creation of a lien or encumbrance subordinate to this
Mortgage; (b) the creation of a purchase money security interest for household appliances; (c) a
transfer by devise, descent or by operation of law upon the death of a joint tenant; (d) the grant
of any leasehold interest of three years or less not containing an option to purchase; or (e) the
direct or indirect sale, assignment, pledge, transfer, grant of a security interest in or other
disposition of a sufficient percentage of the legal or equitable interest (which percentage shall
be calculated, at mortgagee’s option, based upon value, voting interest, capital or income
interests) in Mortgagor, which results in a change of control of the Mortgagor; then such sale or
transfer shall constitute a transfer of the mortgaged property in violation of this Section. In
such event, Mortgagee may, at Mortgagee’s option, declare the sums secured by this Mortgage to be
immediately due and payable. Mortgagee shall have waived such option to

 

 

accelerate if prior to the sale or transfer, Mortgagee and the person to whom the property is
to be sold or transferred reach agreement in writing that the credit of such person is satisfactory
to Mortgagee and that the interest payable on the sums secured by this mortgage shall be at such
rate as Mortgagee shall request.

     9. As further security for payment of the Note and performance of the obligations, covenants,
and agreements secured hereby, Mortgagor hereby assigns to Mortgagee all leases already in
existence and to be created in the future, together with all rents to become due under existing or
future leases, and grants to Mortgagee the right and option upon Mortgagor’s default in payment of
the Note to immediately thereafter collect all rents, and apply such rents to any payments due
under the Note or under this Mortgage. Mortgagee’s exercise of its option, as provided for herein,
shall not operate as an affirmation of any tenant or lease or waiver of Mortgagor’s default.

     10. Further and in addition to the foregoing, the Mortgagee may, at any time while a suit is
pending to foreclose or to reform this Mortgage or to enforce any claims arising hereunder, apply
to the court having jurisdiction thereof for the appointment of a receiver, and such court shall
forthwith appoint a receiver of the premises and all other property covered hereby, including all
and singular the income, profits and revenues of whatsoever source derived, and such receiver shall
have all of the broad and effective functions and powers in anywise entrusted by a court to a
receiver and such appointment shall be made by such court as a matter of absolute right to the
Mortgagee, and without reference to the adequacy of the value of the mortgaged property or to the
solvency of the Mortgagor or the defendants, and such revenues shall be applied by the receiver
according to the lien of this Mortgage and the practice of such court.

     11. Any event of default under the Note, if not cured within any applicable cure period
contained therein, shall, at the option of Mortgagee, constitute an event of default under this
Mortgage. In addition, each of the following shall be considered an event of default under this
Mortgage: (i) a failure by Mortgagor to pay any amounts due under this Mortgage, and such failure
continues for a period of five (5) days following written notice from Mortgagee to Mortgagor of
such failure; or (ii) Mortgagor fails to perform and other covenant or agreement under this
Mortgage, and such failure continues for a period of thirty (30) days following written notice from
Mortgagee to Mortgagor of such failure.

     12. That upon the occurrence of an event of default (as described in Section 11 above)
Mortgagor (or the then owner), if in occupancy of the mortgaged premises, shall become a
tenant-at-will of Mortgagee; and shall pay monthly in advance to mortgagee or to any receiver
appointed to collect the rents, issues and profits of the said premises, the fair and reasonable
rental value for use and occupancy of said premises or so much thereof as may be so occupied by
Mortgagor (or the then owner), and upon any such event of default, shall vacate and surrender the
possession of said premises to Mortgagee or to such receiver and in default thereof may be evicted
by summary proceedings or other appropriate action at law or in equity.

     13. Whenever in this Mortgage one of the parties hereto is named or referred to, the heirs,
administrators, executors, successors, and assigns of such party shall be included, and all
covenants and agreements contained in this Mortgage by or on behalf of the Mortgagor,

 

 

Mortgagor or by or on behalf of Mortgagee shall bind and inure to the benefit of its
respective heirs, administrators, executors, successors, and assigns, whether so expressed or not.

     14. Failure by the Mortgagee to exercise any of the rights or options herein provided shall
not constitute a waiver of any rights or options under said note or this mortgage accrued or
thereafter accruing.

     IN WITNESS WHEREOF, the said Mortgagor has hereunto signed and sealed these presents the day
and year first above written.

	 	 	 	 	 
	 	 	MORTGAGOR:
	 
	 	 	 	 
	 	 	VOLUSIA OPERATIONS, LLC
	 

	 	By:
	 	BOUNDLESS TRACK OPERATIONS, INC.,
	 

	 	 	 	its Manager
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brian Carter
	 

	 	 	 	Brian Carter, Vice President

Signed, sealed and delivered

in the presence of:

/s/ Robert J. Johnston

Printed Name: Robert J. Johnston

/s/ Sandy Simons

Printed Name: Sandy Simons

Witnesses

STATE OF Texas

COUNTY OF Dallas

     The foregoing instrument was acknowledged before me by Brian Carter, Vice President of
Boundless Track Operations, Inc., Manager of Volusia Operations, LLC who is personally known to me
or who has produced his Oklahoma driver’s license as identification, and who executed the foregoing
instrument in his corporate capacity.

     WITNESS my hand and official seal in the County and State last aforesaid this 30th
day of June, 2005.

	 	 	 	 	 
	 

	 	/s/ Linda Ingram	 	 
	 

	 	Notary Public, State of	 	 
	 

	 	 	 	 
	 

	 	My Commission Expires:	 	 
	 

	 	 	 	 

(NOTARY SEAL)

 

 

EXHIBIT “B”

Property in Section 12, Township 15 South, Range 29 East described as follows: Commence at the
Northeast corner of Section 12, Township 15 South, Range 29 East, thence South 87°27'20" West,
along the North line of said Section 12, 1320 feet for the Point of Beginning, thence North
87°27'20" East 653 feet; thence South 0°31'12" West, 1344.58 feet; thence South 13°53'40" East,
319.08 feet; thence North 58°48'50" East, 219.87 feet; thence South 0°31'12" West, 402.47 feet to
the North right-of-way line of State Road #40; thence Southwesterly along said North right-of-way
line 1130.14 feet; thence North 0°31'12" West, 2563.88 feet to the Point of Beginning.

AND

That part of the Northeast 1/4 of Section 12, Township 15 South, Range 29 East, Volusia County,
Florida, as lies Northwesterly of the Northwest line of the 200 foot right-of-way of State Road #40
(Ormond-Barberville Road), as now occupied and established, being more particularly described as
follows:

Beginning at the Northeast corner of said Section 12, said point being located a distance of
1774.52 feet, N 0°31'12" E, as measured along the East line of said Section 12, from the centerline
of construction on said State Road #40 at S.R.D. Station 278+45.55, Section 79100, thence run S
0°31'12" W along the said East line of Section 12, a distance of 1691.05 feet to it's intersection
with the Northwesterly right-of-way line of said State Road #40; thence S 55°04'42" W along said
Northwesterly line a distance of 490.95 feet to a point therein; thence N 0°31'12" E parallel to
the East line of Section 12, a distance of 402.47 feet to a point; thence S 58°48'50" W, a distance
of 219.87 feet to a point; thence N 13°53'40" W a distance of 319.08 feet to a point; thence N
0°31'12" E, parallel to the aforesaid East line of Section 12 a distance of 1344.59 feet to a point
in the North line thereof; thence N 87°27'20" E along said North line, a distance of 667 feet to
the Point of Beginning.

AND

That part of the West 1/4 of the Northwest 1/4 of Section 7, Township 15 South, Range 30 East,
Volusia County, Florida, as lies Northwesterly of the Northwest line of the 200 foot right-of-way
of State Road #40, (Ormond-Barberville Road), as now occupied and established and being more
particularly described as follows:

From a reference point, being the Northwest corner of said Section 7 said point being located a
distance of 1774.52 feet N 0°31'12" E as measured along the West line of said Section 7, from the
centerline of construction on said State Road #40, as S.R.D. Station 278+45.55, Section 79100;
thence run S 0°31'12" W along said West line of Section 7, a distance of 1344.58 feet to a point
therein and the Point of Beginning; thence continue S 0°31'12" W along said West Section line, a
distance of 346.47 feet to its intersection with the aforesaid Northwest right-of-way line of State
Road #40; thence N 55°04'42" E, along said Northeast right-of-way line, a distance of 649.48 feet
to a point thereon; thence S 87°27'20" W parallel to the North line of Section 7, aforesaid a
distance of 524.34 feet to the Point of Beginning.

 

 

AND

That part of the West 1/2 of the Northwest one-quarter of the Northwest one-quarter of Section 7,
Township 15 South, Range 30 East, Volusia County, Florida, as lies Northwesterly of the Northwest
line of 200 foot right-of-way of State Road #40 (Ormond-Barberville Road), as now occupied and
established, being more particularly described as follows:

Beginning at the Northwest corner of said Section 7, said point being located a distance of 1774.52
feet N 0°31'12" E, as measured along the West line of said Section 7, from the centerline of
construction on said State Road #40, at S.R.D. Station 278+45.55, Section 79100; thence run N
87°27'20" E, along the North line of said Section 7, a distance of 611.45 feet to a point therein;
thence S 0°31'12" W parallel to the said West line of Section 7, a distance of 1290.78 feet to a
point in the aforesaid Northwest right-of-way line of State Road #40; thence S 55°04'42" W, along
said right-of-way line, a distance of 106.80 feet to a point therein; thence S 87°27'20" W parallel
to the aforesaid North line of Section 7, a distance of 524.34 feet to a point in the aforesaid
West line of Section 7; thence N 0°31'12" E along said West line, a distance of 1344.58 feet to the
Point of Beginning, except that portion described as follows: Commence at the Northwest corner of
said Section 7, proceed North 87°29'20" East, a distance of 252.45 feet to the Point of Beginning.
Thence continue North 87°29'20" East a distance of 359.00 feet; thence South 0°31'12" West a
distance of 1290.78 feet to the Northwest right-of-way line of State Road Number 40, thence North
15°13'27" West a distance of 1321.15 feet to the Point of Beginning being in Volusia County,
Florida.exv10w4

 

Exhibit 10.4

Prepared By and

When Recorded Return to:

Harlan L. Paul, Esquire

Paul & Elkind, P.A.

142 East New York Avenue

DeLand, Florida 32724

SECURITY AGREEMENT

     This Security Agreement, dated as of the 30th day of June, 2005, is by and between
Richard F. Murphy (“Secured Party”), and Volusia Operations, LLC, a Florida limited liability
company (“Debtor”). Terms used herein but not otherwise defined shall have the meanings ascribed
thereto in the Purchase Agreement (as defined below).

W I T N E S S E T H:

     WHEREAS, pursuant to that certain Asset Purchase Agreement, of even date herewith, by and
among Debtor, Secured Party and Richard F. Murphy, the sole shareholder of Secured Party (the
“Purchase Agreement”), Secured Party sold to Debtor the Assets; and

     WHEREAS, it is a condition precedent to the obligation of Secured Party to sell the Assets to
Debtor that Debtor shall have executed and delivered this Security Agreement to Secured Party;

     NOW, THEREFORE, in consideration of the premises and to induce Secured Party to sell the
Assets to Debtor upon the terms and subject to the conditions set forth in the Purchase Agreement,
Debtor hereby agrees with Secured Party as follows:

     1. Defined Terms. As used herein, the following terms shall have the following
meanings:

     “Obligations” means the principal of, and interest on, and all other amounts owing
under, the Promissory Note.

     “Proceeds” has the meaning assigned in the UCC.

     “Security Agreement” means this Security Agreement, as amended, supplemented or
otherwise modified from time to time.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the
State of Florida.

     2. Grant of Security Interest. As collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
the Obligations, Debtor hereby grants to Secured Party a security interest in all of the Assets and
all accessions, substitutions, replacements, betterments, Proceeds and products thereof
(collectively, the “Collateral”). This Security Agreement shall be deemed terminated upon full
payment of the Obligations.

 

 

     3. Representations and Warranties. Debtor hereby represents and warrants that:

          (a) Title; Liens. Debtor has not granted any security interests in, to or under the
Assets.

          (b) Location of Tangible Property. The Assets will be located at the Real Property.
Debtor may move equipment included in the Assets to other locations upon written notice to Secured
Party; and Debtor agrees to promptly execute and deliver to Secured Party the documents and
instruments described in Section 4(a) below in order for Secured Party to perfect its security
interest therein.

     4. Covenants. Debtor covenants and agrees with Secured Party that, from and after the
date of this Security Agreement until the Obligations are paid in full:

          (a) Additional Documents; Pledge of Instruments. Debtor agrees to promptly and duly
execute and deliver all such other and further documents, agreements and instruments and take such
further action as Secured Party may reasonably request for the purpose of obtaining or preserving
the full benefits of this Security Agreement and of the rights and powers herein granted,
including, without limitation, the filing of any financing or continuation statements under the UCC
in effect in any jurisdiction with respect to the liens created hereby. Debtor also hereby
authorizes Secured Party to file any such financing or continuation statement without the signature
of Debtor to the extent permitted by applicable law. A carbon, photographic or other reproduction
of this Security Agreement shall be sufficient as a financing statement for filing in any
jurisdiction.

          (b) Maintenance of Records. Debtor will keep and maintain at its own cost and expense
satisfactory and complete records of the Collateral, including, without limitation, a record of all
payments received and all credits granted with respect to the Accounts and Contracts. Debtor will
mark its books and records pertaining to the Collateral to evidence this Security Agreement and the
security interests granted hereby. For the further security of Secured Party, Secured Party shall
have a security interest in all of Debtor’s books and records pertaining to the Collateral, and
Debtor shall turn over any such books and records to Secured Party or to its representatives during
normal business hours at the request of Secured Party.

          (c) Right of Inspection. Secured Party shall have the right to inspect Debtor’s books
and records upon reasonable request. Upon notice to Debtor, Secured Party and its representatives
shall at all times also have the right to enter into and upon any premises where any of the
Inventory or Equipment is located for the purpose of inspecting the same, observing its use or
otherwise protecting its interests therein.

          (d) Compliance with Laws, Etc. Debtor will not directly or indirectly, violate the
provisions of any laws, rules or regulations.

          (e) Limitation on Liens on Collateral/Subordination Agreements. Debtor will not
create, assume or permit to exist, will defend the Collateral against, and will take such other
action as is necessary to remove, any lien or claim on or to the Collateral, and will defend the
right, title and interest of Secured Party in and to any of the Collateral against the claims and
demands of all Persons whomsoever.

2

 

          (f) Maintenance of Insurance. Debtor will maintain, or cause to be maintained,
insurance as is reasonable and customary with Secured Party being named as loss payee and
additional insured on all insurance policies which pertain to the Collateral.

          (g) Further Identification of Collateral. Debtor will furnish to Secured Party from
time to time upon request statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral as Secured Party may reasonably
request, all in reasonable detail and in form satisfactory to Secured Party. A schedule of the
initial collateral is attached hereto as Exhibit “___”.

          (h) Notices. Debtor will advise Secured Party promptly, in reasonable detail, (i) of
any lien (other than liens created hereby) on, or claim asserted against, any of the Collateral
other than permitted encumbrances and (ii) of the occurrence of any other event which could
reasonably be expected to have a material adverse effect on the aggregate value of the Collateral
hereunder.

     5. Secured Party’s Appointment as Attorney-in-Fact.

          (a) Powers. Debtor hereby irrevocably constitutes and appoints Secured Party and any
officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of Debtor and in the name of
Debtor or in its own name, from time to time in Secured Party’s discretion, for the purpose of
carrying out the terms of this Security Agreement, to take any and all appropriate action and to
execute any and all documents and instruments which may be necessary or desirable to accomplish the
purposes of this Security Agreement. Debtor hereby ratifies all that said attorneys shall lawfully
do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and
shall be irrevocable until the Obligations shall have been paid in full or this Security Agreement
shall have been terminated.

          (b) No Duty on the Part of Secured Party. The powers conferred on Secured Party
hereunder are solely to protect the interests of Secured Party in the Collateral and shall not
impose any duty upon Secured Party to exercise any such powers. Secured Party shall be accountable
only for amounts that it actually receives as a result of the exercise of such powers, and neither
it nor any of its officers, directors, employees or agents shall be responsible to Debtor for any
act or failure to act hereunder, except for its own gross negligence or willful misconduct, it
being the intent of the parties hereto that Secured Party shall not be accountable for its own
negligence.

     6. Remedies. If an event of default occurs under the Promissory Note, and such
default is not cured within any applicable cure period, then Secured Party may exercise, in
addition to all other rights and remedies granted to them in this Security Agreement and in any
other instrument or agreement securing, evidencing or relating to the Obligations, all rights and
remedies of a secured party under the UCC. Without limiting the generality of the foregoing,
Secured Party, without demand of performance or other demand, presentment, protest, advertisement
or notice of any kind (except any notice required by law referred to below) to or upon Debtor or
any other Person (all and each of which demands, offenses, advertisements and notices are hereby
waived), may in such circumstances forthwith collect, receive, appropriate

3

 

and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease,
assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or
any part thereof (or contract to do any of the foregoing), in one or more parcels at public or
private sale or sales, at any exchange, broker’s board or office of Secured Party or elsewhere upon
such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash
or on credit or for future delivery without assumption of any credit risk. Secured Party shall
have the right upon any such public sale or sales, and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of the Collateral so sold, free of
any right or equity of redemption in Debtor, which right or equity is hereby waived and released.
Debtor further agrees, at Secured Party’s request, to assemble the Collateral and make it available
to Secured Party at places which Secured Party shall reasonably select, whether at Debtor’s
premises or elsewhere. Secured Party shall apply the net Proceeds of any such collection,
recovery, receipt, appropriation, realization or sale, after deducting all reasonable costs and
expenses of every kind incurred therein or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of Secured Party hereunder,
including, without limitation, reasonable attorneys’ fees and disbursements, to the payment in
whole or in part of the Obligations, in such order as Secured Party may elect, and only after such
application and after the payment by Secured Party of any other amount required by any provision of
law, need Secured Party account for the surplus, if any, to Debtor. To the extent permitted by
applicable law, Debtor waives all claims, damages and demands it may acquire against Secured Party
arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or
other disposition of Collateral shall be required by law, such notice shall be deemed reasonable
and proper if given at least five (5) days before such sale or other disposition. Debtor shall
remain liable for any deficiency if the Proceeds of any sale or other disposition of the Collateral
are insufficient to pay the Obligations and the fees and disbursements of any attorneys employed by
Secured Party to collect such deficiency.

     7. Limitation on Duties Regarding Preservation of Collateral. Secured Party’s sole
duty with respect to the custody, safekeeping and physical preservation of the Collateral in its
possession, under the UCC or otherwise, shall be to deal with it in the same manner as Secured
Party deals with similar property for its own account. Neither Secured Party, nor any of its
directors, officers, employees or agents shall be liable for failure to demand, collect or realize
upon all or any part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of Debtor or otherwise.

     8. Severability. Any provision of this Security Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     9. Paragraph Headings. The paragraph headings used in this Security Agreement are for
convenience of reference only and are not to affect the construction hereof or be taken into
consideration in the interpretation hereof.

     10. No Waiver; Cumulative Remedies. No failure to exercise, nor any delay in
exercising, on the part of Secured Party, any right, power or privilege hereunder shall operate as

4

 

a waiver thereof. No single or partial exercise of any right, power or privilege hereunder
shall preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. A waiver by Secured Party of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy which Secured Party would otherwise have on any
future occasion. The rights and remedies herein provided are cumulative, may be exercised singly
or concurrently and are not exclusive of any rights or remedies provided by law or in any of the
other loan documents.

     11. Waivers and Amendments; Successors and Assigns; Governing Law. None of the terms
or provisions of this Security Agreement may be waived, amended, supplemented or otherwise
modified, altered or amended except by a written instrument executed by Debtor and Secured Party.
This Security Agreement shall be binding upon the successors and assigns of Debtor and shall inure
to the benefit of Secured Party and its successors and assigns.

     12. Choice Of Law. THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF FLORIDA.

     13. Notices. Notices to be given hereunder may be given as provided in the Purchase
Agreement.

     14. Counterparts. This Security Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which shall constitute
one and the same instrument, and in making proof of this Agreement it shall not be necessary to
produce or account for more than one such counterpart.

     IN WITNESS WHEREOF, Debtor and Secured Party have caused this Security Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	VOLUSIA OPERATIONS, LLC
 	 
	 	By:  	BOUNDLESS TRACK OPERATIONS, INC.

its Manager 

 	 
	 	By:  	/s/ Brian Carter
 	 
	 	 	Brian Carter, 	 
	 	 	Vice President and Chief Financial Officer 	 
	 
	 	 

	 
	 	/s/ Richard F. Murphy
 	 
	 	Richard F. Murphy, individually 	 
	 	 	 
	 

5

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