Exhibit 10.5
SECURITY AGREEMENT
EQUIPMENT
This Security Agreement is entered into this
30th day of September, 2009, between GEOFFREY C. WEBER, as
Trustee of the Pak-It Members’ Trust, 221 Turner Street,
Clearwater, Florida 33756, hereinafter referred to as "Secured
Party", and PAK-IT, LLC and DICKLER CHEMICAL LABORATORIES,
INC ., both of 221 Turner Street, Clearwater, Florida
33756 hereinafter referred to, individually and collectively,
as "Debtor". The parties agree as follows:
1. To secure the payment of
indebtedness evidenced by a promissory note or notes executed by
310 Holdings, Inc. to Secured Party and any all extensions
and renewals thereof and any and all liabilities or obligations of
310 Holdings, Inc. or Debtor to Secured Party, direct or
indirect, absolute or contingent, now existing or hereafter
arising, now due or hereafter to become due, Debtor does hereby
grant a continuing security interest in the collateral described in
Paragraph 2 hereof.
2. Collateral. The
collateral is all furniture, furnishings, machinery and other
equipment of the Debtor together with all replacements, repairs,
additions and accessions to the property and all other furniture,
furnishings, machinery and other equipment in which Debtor may
acquire an interest subsequent to this security
agreement. As further security, Debtor grants to Secured
Party a security interest in all property of Debtor which is or may
hereafter be in Secured Party's possession in any capacity,
including all monies owed or to be owed by Secured Party to Debtor
and with respect to all of such property, Secured Party shall have
the same rights as it has with respect to the
Collateral.
3. Debtors
Covenants. Debtor shall:
(a) keep and maintain the collateral in good
condition and repair and not misuse or abuse it, waste or allow it
to deteriorate except for ordinary wear and tear;
(b) insure the collateral (until this
security agreement is terminated) against fire and all other
expected risks to which it is exposed and those which the Secured
Party may designate, with policies and amounts acceptable to the
Secured Party and payable to both Debtor and the Secured Party, as
their interests appear, and with duplicate policies deposited with
the Secured Party;
(c) keep the collateral at the
Debtors’ existing places of business where the Secured Party
may inspect it at any time, and not remove it unless Debtor
notifies the Secured Party in writing and the Secured Party
consents in writing in advance of its removal to another
location;
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