exv10w10






Exhibit 10.10




PLEDGE AGREEMENT




          This PLEDGE AGREEMENT, dated as of June 16, 2010 (together with all amendments, if any, from
time to time hereto, this “Agreement”) by and among FORTEGRA FINANCIAL CORPORATION, a
Georgia corporation (“Fortegra”), and the other Persons who may become “Pledgors” hereunder
(together with Fortegra each a “Pledgor” and collectively, the “Pledgors”), and
SUNTRUST BANK, in its capacity as Administrative Agent (the “Administrative Agent”) for its
benefit and the benefit of the other Lenders (as defined in the Credit Agreement defined below).




WITNESSETH:




          WHEREAS, pursuant to that certain Revolving Credit Agreement dated as of the date hereof by
and among Fortegra, LOTS Intermediate Co., a Delaware corporation (“LOTS”; together with
Fortegra, the “Borrowers”), the lenders from time to time party thereto (the
“Lenders”) and the Administrative Agent) (as from time to time amended, restated, amended
and restated, supplemented or otherwise modified, the “Credit Agreement”), the Lenders have
agreed to make Loans to the Borrowers;




               WHEREAS, certain Pledgors are the record and beneficial owners of the stock listed in Part A
of Schedule I hereto and certain Pledgors are the owners of the promissory notes and
instruments listed in Part B of Schedule I hereto;



               WHEREAS, in order to induce the Administrative Agent and the Lenders to enter into the Credit
Agreement and the other Loan Documents, to induce the Lenders to make the Loans as provided for in
the Credit Agreement, and to induce the Secured Parties (as defined below) to make other extensions
of credit available to the Borrowers, each Pledgor has agreed to pledge the Pledged Collateral to
the Administrative Agent to secure the payment and performance of the Obligations in accordance
herewith;



               NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Pledgors hereby agree as follows:



     1. Definitions. Unless otherwise defined herein, terms defined in the Credit
Agreement are used herein as therein defined, and the following shall have (unless otherwise
provided elsewhere in this Agreement) the following respective meanings (such meanings being
equally applicable to both the singular and plural form of the terms defined):



          “Act” has the meaning assigned to such term in Section 8(c) hereof.




          “Bankruptcy Code” means title 11, United States Code, as amended from time to time,
and any successor statute thereto.




          “Pledged Collateral” has the meaning assigned to such term in Section 2
hereof.




          “Pledged Entity” means an issuer of Pledged Shares.




 









 








          “Pledged Indebtedness” means the Indebtedness evidenced by promissory notes and
instruments listed on Part B of Schedule I hereto;




          “Pledged Shares” means the stock listed on Part A of Schedule I hereto.




          “Secured Obligations” has the meaning assigned to such term in Section 3
hereof.




          “Secured Parties” means the Lenders and the Lenders and Affiliates of Lenders that
have entered into a Hedging Transaction with a Loan Party.




          “Termination Date” has the meaning assigned to such term in Section 11 hereof.



2. Pledge. The Pledgors hereby pledge and charge to the Administrative Agent, and grant to
the Administrative Agent for itself and the benefit of the Secured Parties, a first priority
security interest in all of the following (collectively, the “Pledged Collateral”):




     (a) the Pledged Shares and the certificates representing the Pledged Shares, and all
dividends, distributions and other products or proceeds of the foregoing from time to time received
or otherwise distributed in respect of or in exchange for any or all of the Pledged Shares; and



     (b) any additional shares of stock from time to time acquired by the Pledgors in any manner
(which shares shall be deemed to be part of the Pledged Shares), and the certificates representing
such additional shares, and all dividends, distributions and other products or proceeds from time
to time received or otherwise distributed in respect of or in exchange for any or all of such
stock; and



     (c) the Pledged Indebtedness, and the promissory notes or instruments evidencing the Pledged
Indebtedness, and all interest, products or proceeds of the foregoing from time to time received or
otherwise distributed in respect of the Pledged Indebtedness; and



     (d) all additional Indebtedness arising after the date hereof and owing to the Pledgors
evidenced by promissory notes or other instruments (other than items deposited for collection in
the ordinary course of business), together with such promissory notes and instruments, and all
interest, products or proceeds of the foregoing from time to time received, receivable or otherwise
distributed in respect of that Pledged Indebtedness; provided that, notwithstanding the
foregoing, the term “Pledged Collateral” (and any component definition thereof) shall not include
(i) ownership interests in joint ventures and non-wholly-owned Subsidiaries to the extent that such
ownership interests cannot be pledged without the consent of one or more non-Affiliate third
parties, (ii) any promissory note or instrument to which any Pledgor is a party or any of such
Pledgor’s rights or interests thereunder if and only for so long as the grant of a Lien thereon
shall (A) give the payor under, or the maker of such promissory note or instrument, the right to
terminate its obligations thereunder, (B) constitute or result in the abandonment, invalidation or
unenforceability of any right, title or interest of any Pledgor therein or (C) constitute or result
in a breach or termination pursuant to the terms of, or a default under, any such promissory note
or instrument (other than to the extent that any such term would be rendered ineffective pursuant
to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions));
provided that such promissory note or instrument shall be excluded from the definition of



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“Pledged Collateral” only to the extent and for so long as the consequences specified above
shall exist and shall cease to be excluded from the definition of “Pledged Collateral” and shall
become subject to the Liens granted hereunder, immediately and automatically, at such time as such
consequences shall no longer exist, (iii) any asset if the grant or perfection of a security
interest is prohibited by applicable law for so long as such law is in force and applicable hereto,
(iv) any Capital Stock of any Subsidiary held by any Loan Party, other than the Capital Stock of
LOTS held by Fortegra, but only for so long as the Indenture dated June 20, 2007 between LOTS, as
issuer, and Wilmington Trust Company, as trustee, is in effect and (v) any property acquired by any
Loan Party if and to the extent that the Administrative Agent and the Borrowers shall have
determined that the costs (including, without limitation, recording taxes and filing fees) of
creating and perfecting a Lien on such property interests are excessive in relation to the value of
the security afforded thereby.




     3. Security for Obligations. This Agreement secures, and the Pledged Collateral is
security for, the prompt payment in full when due, whether at stated maturity, by acceleration or
otherwise, and performance of all Obligations of any kind under or in connection with, the Credit
Agreement and the other Loan Documents or any Hedging Transaction entered into with any Secured
Party, and all obligations of the Pledgors now or hereafter existing under this agreement
(collectively, the “Secured Obligations”).



     4. Delivery of Pledged Collateral. All certificates evidencing the Pledged Stock and
all promissory notes and instruments evidencing the Pledged Indebtedness with a face value in
excess of $1,000,000 individually shall be delivered to and held by or on behalf of the
Administrative Agent, for itself and the benefit of the Secured Parties, pursuant hereto. All
Pledged Shares which are certificated and delivered in accordance with the immediately preceding
sentence shall be accompanied by duly executed instruments of transfer or assignment in blank, all
in form and substance reasonably satisfactory to the Administrative Agent and all promissory notes
or other instruments evidencing the Pledged Indebtedness shall be endorsed by the Pledgors or
accompanied by a duly executed instrument of transfer or allonge in form and substance reasonably
satisfactory to the Administrative Agent.



     5. Representations and Warranties of Pledgors. Each Pledgor represents and warrants
to the Administrative Agent that:




     (a) Such Pledgor is, and at the time of delivery of the Pledged Shares to the
Administrative Agent will be, the sole holder of record and the sole beneficial owner of
such Pledged Shares pledged by such Pledgor free and clear of any Lien thereon or affecting
the title thereto, except for any Lien created by this Agreement and any Permitted Liens;
such Pledgor is and at the time of delivery of the Pledged Indebtedness to the
Administrative Agent will be, the sole owner of such Pledged Indebtedness free and clear of
any Lien thereon or affecting title thereto, except for any Lien created by this Agreement
and any Permitted Liens;




     (b) All of the Pledged Shares issued by any Subsidiary of any Pledgor have been duly
authorized, validly issued and are fully paid and non-assessable; the Pledged Indebtedness
issued by any Subsidiary of any Pledgor has been duly authorized, authenticated or issued
and delivered by, and is, to the knowledge of such Pledgor, the



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legal, valid and binding obligations of, the Person obligated under such Pledged
Indebtedness, and no such Person that is a Loan Party is in default in any material respect
thereunder or of any material provision thereunder;




     (c) Such Pledgor has the right and requisite authority to pledge, assign, transfer,
deliver, deposit and set over the Pledged Collateral pledged by such Pledgor to the
Administrative Agent as provided herein;




     (d) None of the Pledged Shares or Pledged Indebtedness, in each case issued by any
Subsidiary of any Pledgor, has been issued or transferred in violation of the securities
registration, securities disclosure or similar laws of any jurisdiction to which such
issuance or transfer may be subject; provided, that no representation is made with respect
to any transfer to the Administrative Agent pursuant to the terms of this Agreement;




     (e) All of the Pledged Shares are, as of the date hereof, presently owned by such
Pledgor, and, to the extent applicable, are presently represented by the certificates listed
on Part A of Schedule I hereto or on the Pledge Amendment (as defined below), as the
case may be. As of the date hereof, there are no existing options, warrants, calls or
commitments of any character whatsoever relating to the Pledged Shares;




     (f) No consent, approval, authorization or other order or other action by, and no
notice to or filing with, any Governmental Authority or any other Person is required (i) for
the pledge by such Pledgor of the Pledged Collateral pursuant to this Agreement or for the
execution, delivery or performance of this Agreement by such Pledgor, or (ii) for the
exercise by the Administrative Agent of the voting or other rights provided for in this
Agreement or the remedies in respect of the Pledged Collateral pursuant to this Agreement,
except, in each case, for compliance with the Act, those as have been obtained or made and
are in full force and effect and recordings and filings in connection with the perfection of
the Liens granted to the Administrative Agent hereunder;




     (g) each Subsidiary that is issuing Pledged Shares but that is not a corporation will
not issue certificates to evidence its equity interests unless it has opted in to Article 8
under Section 8-103(c) of the UCC;




     (h) The Uniform Commercial Code financing statements containing a description of the
Pledged Collateral, which have been prepared by the Administrative Agent based upon the
information provided to the Administrative Agent and the Secured Parties by the Pledgors for
filing in each governmental office specified on Schedule II hereof, are all the
filings that are necessary as of the Closing Date to establish a legal, valid and perfected
security interest in favor of the Administrative Agent (for the ratable benefit of the
Secured Parties) in respect of all Pledged Collateral in which the security interest may be
perfected by filing a financing statement under the Uniform Commercial Code;




     (i) The security interests granted in the Pledged Collateral pursuant to this Agreement
(i) will create a legal and valid Lien and security interest in the Pledged Collateral in
favor of the Administrative Agent for the benefit of the Administrative



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Agent and the Secured Parties, securing the payment of the Secured Obligations and
(ii), subject to the filings described in Section 5(g), constitutes a perfected
security interest in all Pledged Collateral in which a security interest may be perfected by
filing, recording or registering a financing statement or analogous document in the United
States (or any state thereof) pursuant to the Uniform Commercial Code, and such Lien is
prior to all other Liens other than Permitted Liens;




     (j) This Agreement has been duly authorized, executed and delivered by such Pledgor and
constitutes a legal, valid and binding obligation of such Pledgor enforceable against such
Pledgor in accordance with its terms except as may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, receivership, moratorium or other laws affecting
creditors’ rights generally and the effects of general principles of equity;




     (k) The Pledged Shares issued by LOTS constitute 100% of the issued and outstanding
shares of stock of LOTS; and




     (l) Except as disclosed on Part B of Schedule I, as of the Closing Date, none
of the Pledged Indebtedness is subordinated in right of payment to other Indebtedness
(except for the Secured Obligations) or subject to the terms of an indenture.



          The representations and warranties set forth in this Section 5 shall survive the
execution and delivery of this Agreement.




     6. Covenants. Each Pledgor covenants and agrees that until the Termination Date:




     (a) Such Pledgor will, at its expense, promptly execute, acknowledge and deliver all
such instruments and take all such actions as the Administrative Agent from time to time may
reasonably request in order to ensure to the Administrative Agent and the Secured Parties
the benefits of the Liens in and to the Pledged Collateral intended to be created by this
Agreement, including the filing of any necessary Uniform Commercial Code financing
statements, which may be filed by the Administrative Agent, and will cooperate with the
Administrative Agent, at each Pledgor’s expense, in obtaining all necessary approvals and
making all necessary filings under federal, state or local law in connection with such Liens
or any sale or transfer of the Pledged Collateral conducted pursuant to the terms of this
Agreement;




     (b) Each Pledgor has and will defend the title to the Pledged Collateral and the Liens
of the Administrative Agent in the Pledged Collateral against the claim of any Person (other
than holders of Permitted Liens) and will maintain and preserve such Liens; and




     (c) Each Pledgor will, upon obtaining ownership of any additional stock or promissory
notes or instruments, in each case, of the type constituting Pledged Collateral, promptly
(and in any event within ten (10) Business Days or such longer period as to which the
Administrative Agent may consent) deliver to the Administrative Agent a Pledge Amendment,
duly executed by each Pledgor, in substantially the form of Exhibit A hereto (a
“Pledge Amendment”) in respect of any such additional stock, notes or



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instruments, pursuant to which each Pledgor shall pledge to the Administrative Agent
for its benefit and the benefit of the Secured Parties all of such additional stock, notes
and instruments subject to the limitations on the pledge of the voting stock of Foreign
Subsidiaries contained in this Agreement and the other Loan Documents. Each Pledgor hereby
authorizes the Administrative Agent to attach each Pledge Amendment to this Agreement and
agrees that all Pledged Shares and Pledged Indebtedness listed on any Pledge Amendment
delivered to the Administrative Agent shall for all purposes hereunder be considered Pledged
Collateral.



     7. Pledgors’ Rights. As long as no Event of Default shall have occurred and be
continuing and until written notice shall be given to the Pledgors in accordance with Section
8(a) hereof:




     (a) Each Pledgor shall have the right, from time to time, to vote and give consents
with respect to the Pledged Collateral owned by it, or any part thereof for all purposes not
inconsistent with the provisions of this Agreement, the Credit Agreement or any other Loan
Document; provided, however, that no vote shall be cast, and no consent
shall be given or action taken, which is not conditioned upon payment in full of all
Obligations (other than contingent obligations for which no claim has been asserted) and
termination of all commitments under the Credit Agreement or receipt of the consent or
approval of the Required Lenders or all affected Lenders, as applicable, under the Credit
Agreement if such vote would have the effect of impairing the position or interest of the
Administrative Agent in respect of the Pledged Collateral (unless and to the extent
expressly permitted by the Credit Agreement) or which would authorize, effect or consent to
(unless and to the extent expressly permitted by the Credit Agreement):




               (i) the dissolution or liquidation, in whole or in part, of a Pledged Entity;




               (ii) the consolidation or merger of a Pledged Entity with any other Person; or




               (iii) the sale, disposition or encumbrance of all or substantially all of the assets of
a Pledged Entity, except for Liens in favor of the Administrative Agent; and




     (b) each Pledgor shall be entitled, from time to time, to collect and receive for its
own use all cash dividends and interest paid in respect of the Pledged Shares and Pledged
Indebtedness to the extent (A) the transaction or event which enabled such payment was not
in violation of the Credit Agreement and (B) the payment thereof is not in violation of the
Credit Agreement other than any and all dividends and interest paid or payable other
than in cash in respect of any Pledged Collateral, and instruments and other property
received, receivable or otherwise distributed in respect of, or in exchange for, any Pledged
Collateral; provided, however, that until actually paid all rights to such
distributions shall remain subject to the Lien created by this Agreement.



     8. Defaults and Remedies; Proxy.



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     (a) Upon the occurrence of an Event of Default and during the continuation of such
Event of Default, and concurrently with written notice to the applicable Pledgor, the
Administrative Agent (personally or through an agent) is hereby authorized and empowered (i)
to transfer and register in its name or in the name of its nominee the whole or any part of
the Pledged Collateral, (ii) to exchange certificates or instruments representing or
evidencing Pledged Collateral for certificates or instruments of smaller or larger
denominations, (iii) to exercise (upon one Business Day’s prior written notice to the
applicable Pledgor) the voting (if any) and all other rights as a holder with respect
thereto, (iv) to collect and receive all cash dividends, interest, principal and other
distributions made thereon, (v) to receive, upon the request of the Administrative Agent,
all other distributions in respect of any of the Pledged Shares or Pledged Indebtedness,
whenever paid or made, to hold as Pledged Collateral (provided that, if such dividends,
interest or distributions are received by any Pledgor, they shall be received in trust for
the benefit of the Administrative Agent, be segregated from the other property or funds of
such Pledgor, and be forthwith delivered to the Administrative Agent as Pledged Collateral
in the same form as so received (with any necessary endorsement)), (vi) subject to the
mandatory requirements of applicable law, to sell in one or more sales after ten (10) days
notice of the time and place of any public sale or of the time at which a private sale is to
take place (which notice each Pledgor agrees is commercially reasonable) the whole or any
part of the Pledged Collateral and (vii) to otherwise act with respect to the Pledged
Collateral as though the Administrative Agent was the outright owner thereof. Any sale
shall be made at a public or private sale at the Administrative Agent’s place of business,
or at any place to be named in the notice of sale, either for cash or upon credit or for
future delivery at such price as the Administrative Agent may deem fair, and the
Administrative Agent may be the purchaser of the whole or any part of the Pledged Collateral
so sold and hold the same thereafter in its own right free from any claim of any Pledgor or
any right of redemption. Each sale shall be made to the highest bidder, but the
Administrative Agent reserves the right to reject any and all bids at such sale which, in
its discretion, it shall deem inadequate. Demands of performance, except as otherwise
herein specifically provided for, notices of sale, advertisements and the presence of
property at sale are hereby waived and any sale hereunder may be conducted by an auctioneer
or any officer or agent of the Administrative Agent. EACH PLEDGOR HEREBY IRREVOCABLY
CONSTITUTES AND APPOINTS THE ADMINISTRATIVE AGENT UPON THE OCCURRENCE OF AN EVENT OF DEFAULT
AND DURING THE CONTINUATION OF SUCH EVENT OF DEFAULT, AS THE PROXY AND ATTORNEY-IN-FACT OF
SUCH PLEDGOR WITH RESPECT TO THE PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE THE PLEDGED
SHARES UPON THE GIVING OF NOTICE AS REQUIRED BY SECTION 8(A)(III) ABOVE, WITH FULL POWER OF
SUBSTITUTION TO DO SO. THE APPOINTMENT OF THE ADMINISTRATIVE AGENT AS PROXY AND
ATTORNEY-IN-FACT IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE TERMINATION
DATE. IN ADDITION TO THE RIGHT TO VOTE THE PLEDGED SHARES UPON THE GIVING OF NOTICE AS
REQUIRED BY SECTION 8(A)(III) ABOVE, UPON THE OCCURRENCE OF AN EVENT OF DEFAULT AND DURING
THE CONTINUATION OF SUCH EVENT OF DEFAULT, THE APPOINTMENT OF THE ADMINISTRATIVE AGENT AS
PROXY



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AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS,
PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF THE PLEDGED SHARES WOULD BE ENTITLED (INCLUDING
UPON THE GIVING OF NOTICE AS REQUIRED BY SECTION 8(A)(III) ABOVE, GIVING OR WITHHOLDING
WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT
SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE AUTOMATICALLY UPON THE OCCURRENCE OF AN EVENT
OF DEFAULT AND DURING THE CONTINUATION OF SUCH EVENT OF DEFAULT AND WITHOUT THE NECESSITY OF
ANY ACTION (INCLUDING ANY TRANSFER OF ANY PLEDGED SHARES ON THE RECORD BOOKS OF THE ISSUER
THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF THE PLEDGED SHARES OR ANY OFFICER OR AGENT
THEREOF), UPON THE OCCURRENCE OF AN EVENT OF DEFAULT. NOTWITHSTANDING THE FOREGOING, THE
ADMINISTRATIVE AGENT SHALL NOT HAVE ANY DUTY TO EXERCISE ANY SUCH RIGHT OR TO PRESERVE THE
SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO.




     (b) If, at the original time or times appointed for the sale of the whole or any part
of the Pledged Collateral, the highest bid, if there be but one sale, shall be inadequate to
discharge in full all the Secured Obligations, or if the Pledged Collateral be offered for
sale in lots, if at any of such sales, the highest bid for the lot offered for sale would
indicate to the Administrative Agent, in its discretion, that the proceeds of the sales of
the whole of the Pledged Collateral would be unlikely to be sufficient to discharge all the
Secured Obligations, the Administrative Agent may, on one or more occasions and in its
discretion, postpone any of said sales by public announcement at the time of sale or the
time of previous postponement of sale, and no other notice of such postponement or
postponements of sale need be given, any other notice being hereby waived; provided,
however, that any sale or sales made after such postponement shall be after ten (10)
days’ notice to the Pledgors.




     (c) If, at any time when the Administrative Agent shall determine to exercise its right
to sell the whole or any part of the Pledged Collateral hereunder, such Pledged Collateral
or the part thereof to be sold shall not, for any reason whatsoever, be effectively
registered under the Securities Act of 1933, as amended (or any similar statute then in
effect) (the “Act”), the Administrative Agent may, in its discretion (subject only
to applicable Requirements of Law), sell such Pledged Collateral or part thereof by private
sale in such manner and under such circumstances as the Administrative Agent may deem
necessary or advisable, but subject to the other requirements of this Section 8, and
shall not be required to effect such registration or to cause the same to be effected.
Without limiting the generality of the foregoing, in any such event, the Administrative
Agent in its discretion (x) may, in accordance with applicable securities laws, proceed to
make such private sale notwithstanding that a registration statement for the purpose of
registering such Pledged Collateral or part thereof could be or shall have been filed under
said Act (or similar statute), (y) may approach and negotiate with a single possible
purchaser to effect such sale, and (z) may restrict such sale to a purchaser who is an
accredited investor under the Act and who will represent and agree that such purchaser is



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purchasing for its own account, for investment and not with a view to the distribution
or sale of such Pledged Collateral or any part thereof. In addition to a private sale as
provided above in this Section 8, if any of the Pledged Collateral shall not be
freely distributable to the public without registration under the Act (or similar statute)
at the time of any proposed sale pursuant to this Section 8, then the Administrative
Agent shall not be required to effect such registration or cause the same to be effected
but, in its discretion (subject only to applicable Requirements of Law), may require that
any sale hereunder (including a sale at auction) be conducted subject to restrictions:




               (i) as to the financial sophistication and ability of any Person permitted to bid or
purchase at any such sale;




               (ii) as to the content of legends to be placed upon any certificates representing the
Pledged Collateral sold in such sale, including restrictions on future transfer thereof;




               (iii) as to the representations required to be made by each Person bidding or
purchasing at such sale relating to that Person’s access to financial information about any
Pledgor and such Person’s intentions as to the holding of the Pledged Collateral so sold for
investment for its own account and not with a view to the distribution thereof; and




               (iv) as to such other matters as the Administrative Agent may, in its discretion, deem
necessary or appropriate in order that such sale (notwithstanding any failure so to
register) may be effected in compliance with the Bankruptcy Code and other laws affecting
the enforcement of creditors’ rights and the Act and all applicable state securities laws.




     (d) The Pledgors recognize that the Administrative Agent may be unable to effect a
public sale of any or all the Pledged Collateral and may be compelled to resort to one or
more private sales thereof in accordance with clause (c) above. Each Pledgor also
acknowledges that any such private sale may result in prices and other terms less favorable
to the seller than if such sale were a public sale and, notwithstanding such circumstances,
agrees that any such private sale shall not be deemed to have been made in a commercially
unreasonable manner solely by virtue of such sale being private. The Administrative Agent
shall be under no obligation to delay a sale of any of the Pledged Collateral for the period
of time necessary to permit the Pledged Entity to register such securities for public sale
under the Act, or under applicable state securities laws, even if such Pledgor and the
Pledged Entity would agree to do so.




     (e) Each Pledgor agrees to the maximum extent permitted by applicable law that
following the occurrence and during the continuance of an Event of Default it will not at
any time plead, claim or take the benefit of any appraisal, valuation, stay, extension,
moratorium or redemption law now or hereafter in force in order to prevent or delay the
enforcement of this Agreement, or the absolute sale of the whole or any part of the Pledged
Collateral or the possession thereof by any purchaser at any sale hereunder, and such
Pledgor waives the benefit of all such laws to the extent it lawfully may do so. Each



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Pledgor agrees that it will not interfere with any right, power and remedy of the
Administrative Agent provided for in this Agreement or now or hereafter existing at law or
in equity or by statute or otherwise, or the exercise or beginning of the exercise by the
Administrative Agent of any one or more of such rights, powers or remedies. No failure or
delay on the part of the Administrative Agent to exercise any such right, power or remedy
and no notice or demand which may be given to or made upon such Pledgor by the
Administrative Agent with respect to any such remedies shall operate as a waiver thereof, or
limit or impair the Administrative Agent’s right to take any action or to exercise any power
or remedy hereunder, without notice or demand, or prejudice its rights as against such
Pledgor in any respect.




     (f) Each Pledgor further agrees that a breach of any of the covenants contained in this
Section 8 will cause irreparable injury to the Administrative Agent, that the
Administrative Agent shall have no adequate remedy at law in respect of such breach and, as
a consequence, agrees that each and every covenant contained in this Section 8 shall
be specifically enforceable against such Pledgor, and each Pledgor hereby waives and agrees
not to assert any defenses against an action for specific performance of such covenants
except for a defense that the Secured Obligations are not then due and payable in accordance
with the agreements and instruments governing and evidencing such obligations.



     9. Waiver. No delay on the Administrative Agent’s part in exercising any power of
sale, Lien, option or other right hereunder, and no notice or demand which may be given to or made
upon Pledgors by the Administrative Agent with respect to any power of sale, Lien, option or other
right hereunder, shall constitute a waiver thereof, or limit or impair the Administrative Agent’s
right to take any action or to exercise any power of sale, Lien, option, or any other right
hereunder, without notice or demand, or prejudice the Administrative Agent’s rights as against the
Pledgors in any respect.



     10. Assignment. The Administrative Agent may assign, indorse or transfer any
instrument evidencing all or any part of the Secured Obligations as provided in, and in accordance
with, the Credit Agreement, and the holder of such instrument shall be entitled to the benefits of
this Agreement.



     11. Termination. Immediately following the earlier of the Maturity Date and the date
on which all Loan Obligations (other than any contingent indemnification obligations as to which no
claim has been asserted) shall have been paid in full (the “Termination Date”), (a) the
Administrative Agent shall promptly deliver to the Pledgors all Pledged Collateral pledged by each
Pledgor at the time subject to this Agreement and all instruments of assignment executed in
connection therewith; (b) subject to Section 14 of this Agreement, all documents and instruments
executed and delivered pursuant to clause (a) above shall be free and clear of the Liens hereof
and, except as otherwise expressly provided herein, all of Pledgors’ obligations hereunder shall at
such time terminate; and (c) in connection with any termination or release pursuant to clause (a)
above, the Administrative Agent shall promptly execute and deliver to the Pledgors all Uniform
Commercial Code termination statements and similar documents that the Pledgors shall reasonably
require to evidence such termination or release.



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     12. Lien Absolute. All rights of the Administrative Agent hereunder, and all
obligations of the Pledgors hereunder, shall be absolute and unconditional irrespective of:




     (a) any lack of validity or enforceability of the Credit Agreement, any other Loan
Document or any other agreement or instrument governing or evidencing any Secured
Obligations;




     (b) any change in the time, manner or place of payment of, or in any other term of, all
or any part of the Secured Obligations, or any other amendment or waiver of or any consent
to any departure from the Credit Agreement, any other Loan Document or any other agreement
or instrument governing or evidencing any Secured Obligations;




     (c) any exchange, release or non-perfection of any other Collateral, or any release or
amendment or waiver of or consent to departure from any guaranty, for all or any of the
Secured Obligations;




     (d) the insolvency of any Loan Party; or




     (e) any other circumstance which might otherwise constitute a defense available to, or
a discharge of, any Pledgor (other than the occurrence of the Termination Date).



     13. Release. Each Pledgor consents and agrees that the Administrative Agent may at
any time, or from time to time, in its discretion:




     (a) renew, extend or change the time of payment, and/or the manner, place or terms of
payment of all or any part of the Secured Obligations, subject to the terms of the Credit
Agreement; and




     (b) exchange, release and/or surrender all or any of the Collateral (including the
Pledged Collateral), or any part thereof, by whomsoever deposited, which is now or may
hereafter be held by the Administrative Agent in connection with all or any of the Secured
Obligations; all in such manner and upon such terms as the Administrative Agent may deem
proper, and without notice to or further assent from Pledgors, it being hereby agreed that
each Pledgor shall be and remain bound upon this Agreement, irrespective of the value or
condition of any of the Collateral, and notwithstanding any such change, exchange,
settlement, compromise, surrender, release, renewal or extension, and notwithstanding also
that the Secured Obligations may, at any time, exceed the aggregate principal amount thereof
set forth in the Credit Agreement, or any other agreement governing any Secured Obligations.
Each Pledgor hereby waives notice of acceptance of this Agreement, and also presentment,
demand, protest and notice of dishonor of any and all of the Secured Obligations, and
promptness in commencing suit against any party hereto or liable hereon, and in giving any
notice to or of making any claim or demand hereunder upon such Pledgor. No act or omission
of any kind on the Administrative Agent’s part shall in any event affect or impair this
Agreement.



     14. Reinstatement. This Agreement shall remain in full force and effect and continue
to be effective should any petition be filed by or against any Pledgor or any Pledged Entity for
liquidation or reorganization, should any Pledgor or any Pledged Entity become insolvent or



11









 




make an assignment for the benefit of creditors or should a receiver or trustee be appointed
for all or any significant part of a Pledgor’s or a Pledged Entity’s assets, and shall continue to
be effective or be reinstated, as the case may be, if at any time payment and performance of the
Secured Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in
amount, or must otherwise be restored or returned by any obligee of the Secured Obligations,
whether as a “voidable preference”, “fraudulent conveyance”, or otherwise, all as though such
payment or performance had not been made. In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed
reduced only by such amount paid and not so rescinded, reduced, restored or returned.




     15. Miscellaneous.




     (a) The Administrative Agent may execute any of its duties hereunder by or through
agents or employees and shall be entitled to advice of counsel concerning all matters
pertaining to its duties hereunder.




     (b) Each Pledgor agrees to reimburse the Administrative Agent for fees and expenses
incurred by the Administrative Agent in connection with the administration and enforcement
of this Agreement to the extent the Borrower would be required to do so under Section 10.3
of the Credit Agreement.




     (c) Neither the Administrative Agent, nor any of its respective officers, directors,
employees, agents or counsel shall be liable for any action lawfully taken or omitted to be
taken by it or them hereunder or in connection herewith, except for its or their own gross
negligence or willful misconduct as finally determined by a court of competent jurisdiction.




     (d) THIS AGREEMENT SHALL BE BINDING UPON EACH PLEDGOR AND ITS SUCCESSORS AND ASSIGNS
(INCLUDING A DEBTOR-IN-POSSESSION ON BEHALF OF SUCH PLEDGOR), AND SHALL INURE TO THE BENEFIT
OF, AND BE ENFORCEABLE BY, THE ADMINISTRATIVE AGENT AND ITS SUCCESSORS AND PERMITTED
ASSIGNS. THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.




     (e) EACH PARTY HERETO HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED
STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND OF THE SUPREME COURT OF THE
STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND ANY APPELLATE COURT FROM ANY THEREOF AND
IRREVOCABLY AGREES THAT, SUBJECT TO THE ADMINISTRATIVE AGENT’S ELECTION, ALL ACTIONS OR
PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS.
EACH PARTY HERETO EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS
AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH PARTY HERETO HEREBY IRREVOCABLY
CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED IN SECTION 17.



12









 






NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.



     16. Severability. If for any reason any provision or provisions hereof are determined
to be invalid and contrary to any existing or future law, such invalidity shall not impair the
operation of or effect those portions of this Agreement which are valid.



     17. Notices. Except as otherwise provided herein, whenever it is provided herein that
any notice, demand, request, consent, approval, declaration or other communication shall or may be
given to or served upon any of the parties by any other party, or whenever any of the parties
desires to give and serve upon any other party any communication with respect to this Agreement,
each such notice, demand, request, consent, approval, declaration or other communication shall be
in writing and shall be given in the manner, and deemed received, as provided for in the Credit
Agreement (notice to any Pledgor shall be deemed given when delivered to the Borrowers in
accordance with the terms of the Credit Agreement).



     18. Section Titles. The Section titles contained in this Agreement are and shall be
without substantive meaning or content of any kind whatsoever and are not a part of the agreement
between the parties hereto.



     19. Counterparts. This Agreement may be executed in any number of counterparts, which
shall, collectively and separately, constitute one agreement. Delivery of an executed signature
page of this Agreement by facsimile transmission or Electronic Transmission shall be as effective
as delivery of a manually executed counterpart hereof.



     20. Benefit of the Secured Parties. All security interests granted or contemplated
hereby shall be for the benefit of the Administrative Agent and the Secured Parties, and all
proceeds or payments realized from the Pledged Collateral in accordance herewith shall be applied
to the Secured Obligations in accordance with the terms of the Credit Agreement.



[Signature Page Follows]




13









 







          
IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed
as of the date first written above.





	 	 	 	 	 
	 	PLEDGOR:





FORTEGRA FINANCIAL CORPORATION

 	 
	 	By:  	/s/ Michael Vrban
 	 
	 	 	Name:  	Michael Vrban 	 
	 	 	Title:  	Executive Vice President, Acting Chief
Financial Officer and Treasurer 	 
	 
	 	ADMINISTRATIVE AGENT:





SUNTRUST BANK, as Administrative Agent

 	 
	 	By:  	/s/ W. Bradley Hamilton
 	 
	 	 	Name:  	W. Bradley Hamilton 	 
	 	 	Title:  	Director 	 
	 



[Signature Page to Pledge Agreement]









 








 








EXHIBIT A




FORM OF PLEDGE AMENDMENT




     This Pledge Amendment, dated                     , ___is delivered pursuant to Section
6(d) of the Pledge Agreement referred to below. All defined terms herein shall have the
meanings ascribed thereto or incorporated by reference in the Pledge Agreement. The undersigned
hereby certify that the representations and warranties in Section 5 of the Pledge Agreement
are true and correct as to the promissory notes, instruments and shares pledged pursuant to this
Pledge Amendment. The undersigned further agree that this Pledge Amendment may be attached to that
certain Pledge Agreement, dated June ___, 2009, between undersigned, as Pledgors, and SunTrust
Bank, as the Administrative Agent, (as amended, restated, amended and restated, supplemented or
otherwise modified, the “Pledge Agreement”) and that the Pledged Shares and Pledged
Indebtedness listed on this Pledge Amendment shall be and become a part of the Pledged Collateral
referred to in said Pledge Agreement and shall secure all Secured Obligations referred to in said
Pledge Agreement.



	 	 	 	 	 
	 	[PLEDGOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



	 	 	 	 	 	 	 	 	 
	Name and	 	 	 	Class	 	Certificate	 	Number
	Address of Pledgor	 	Pledged Entity	 	of Stock	 	Number(s)	 	of Shares
	 
	 	 	 	 	 	 	 	 





	 	 	 	 	 	 	 	 	 
	 	 	 	 	Initial	 	 	 	 
	Name of Pledgor	 	Pledged Instrument	 	Principal Amount	 	Issue Date	 	Maturity Date