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Unassociated Document

    
      GENERAL
        CONTINUING GUARANTY

    

     

    This
      GENERAL
      CONTINUING GUARANTY (this
      “Guaranty”),
      dated
      as of August 22, 2008, is executed and delivered by HYDROGEN
      CORPORATION, a
      Nevada
      corporation (“Guarantor”),
      in
      favor of FEDERATED
      KAUFMANN FUND, a
      portfolio of Federated Equity Funds, a Massachusetts business trust, as agent
      for the Lenders (in such capacity, together with its successors and assigns,
      if
      any, in such capacity, “Agent”),
      in
      light of the following:

     

    WHEREAS,
      Hydrogen, L.L.C., an Ohio limited liability company (“Borrower”),
      the
      Lenders, and Agent are, contemporaneously herewith, entering into that certain
      Loan and Security Agreement of even date herewith (as amended, restated,
      modified, renewed or extended from time to time, the “Loan
      Agreement”);
      

     

    WHEREAS,
      Borrower is the direct subsidiary of Guarantor and, Guarantor will benefit
      by
      virtue of the financial accommodations extended to Borrower by the Lenders;
      and

     

    WHEREAS,
      in
      order to induce the Lenders to enter into the Loan Agreement and Loan Documents
      and to extend the loans and other financial accommodations to Borrower pursuant
      to the Loan Agreement, and in consideration thereof, and in consideration of
      any
      loans or other financial accommodations heretofore or hereafter extended by
      the
      Lenders to Borrower pursuant to the Loan Documents, Guarantor has agreed to
      guaranty the Guarantied Obligations.

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing, Guarantor hereby agrees as follows:

     

    1. Definitions
      and Construction.

     

    (a) Definitions.
      Capitalized terms used herein and not otherwise defined herein shall have the
      meanings ascribed to them in the Loan Agreement and Loan Documents. The
      following terms, as used in this Guaranty, shall have the following
      meanings:

     

    “Agent”
has
      the
      meaning set forth in the preamble to this Guaranty.

     

    “Bankruptcy
      Code”
means
      the Bankruptcy Reform Act of 1978, as amended 11 U.S.C. §§101 et seq.,
      and
      the regulations adopted and promulgated pursuant thereto.

     

    “Borrower”
has
      the
      meaning set forth in the recitals to this Guaranty.

     

    “Loan
      Agreement”
has
      the
      meaning set forth in the recitals to this Guaranty.

     

    “Guarantied
      Obligations”
      means
      the
      obligations and liabilities of the Borrower and Guarantor to Agent and the
      Lenders (including, without limitation, the obligations whether direct or
      indirect, absolute or contingent, due or to become due, or now existing or
      hereafter incurred) that may arise under, or out of or in connection with the
      Loan Agreement, this Guaranty, and any other Loan Documents, whether on account
      of covenants, interest, principal, reimbursement obligations, fees, indemnities,
      costs, expenses (including, without limitation, all reasonable fees and
      disbursements of counsel to Agent that are required to be paid by the Borrower
      or Guarantor pursuant to the terms of the Loan Agreement, this Guaranty, or
      any
      of the Loan Documents, respectively).

    
      
        
        

      

      
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    “Guarantor”
has
      the
      meaning set forth in the preamble to this Guaranty.

     

    “Guaranty”
has
      the
      meaning set forth in the preamble to this Guaranty.

     

    “Lenders”
means,
      individually and collectively, each of the lenders identified on the signature
      pages to the Loan Agreement, and shall include any other Person made a party
      to
      the Loan Agreement as a Lender in accordance with the provisions thereof
      (together with their respective successors and assigns). 

     

    “Loan
      Documents”
shall
      mean the Loan Agreement, this Guaranty and the Disclosure Schedules, and any
      and
      all other agreements, notes, documents, mortgages, financing statements,
      guaranties, intercreditor agreements, subordination agreements, certificates
      and
      instruments executed and/or delivered by Borrowers or any other Person to Agent
      or the Lenders pursuant to and in connection with the Loan and this Agreement,
      including, without limitation, the Term Loan Notes, the Closing Date Warrants,
      the Default Warrants, the Membership Interest Pledge Agreement and all other
      documents entered into by the parties in connection with the transactions
      contemplated hereby.“Record”
means
      information that is inscribed on a tangible medium or which is stored in an
      electronic or other medium and is retrievable in perceivable form.

     

    “Voidable
      Transfer”
has
      the
      meaning set forth in Section 10
      of this
      Guaranty.

     

    (b)  Construction.
      Unless
      the context of this Guaranty clearly requires otherwise, references to the
      plural include the singular, references to the singular include the plural,
      the
      part includes the whole, the terms “includes” and “including” are not limiting,
      and the term “or” has, except where otherwise indicated, the inclusive meaning
      represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,”
“hereunder,” and other similar terms in this Guaranty refer to this Guaranty as
      a whole and not to any particular provision of this Guaranty. Section,
      subsection, clause, schedule, and exhibit references herein are to this Guaranty
      unless otherwise specified. Any reference in this Guaranty to any agreement,
      instrument, or document shall include all alterations, amendments, changes,
      extensions, modifications, renewals, replacements, substitutions, joinders,
      and
      supplements, thereto and thereof, as applicable (subject to any restrictions
      on
      such alterations, amendments, changes, extensions, modifications, renewals,
      replacements, substitutions, joinders, and supplements set forth herein).
      Neither this Guaranty nor any uncertainty or ambiguity herein shall be construed
      or resolved against the Agents or Lenders or Borrower, whether under any rule
      of
      construction or otherwise. On the contrary, this Guaranty has been reviewed
      by
      all parties and shall be construed and interpreted according to the ordinary
      meaning of the words used so as to accomplish fairly the purposes and intentions
      of Guarantor and Agent. Any reference herein to the satisfaction, repayment
      or
      payment in full of the Guarantied Obligations shall mean the payment in full
      in
      cash (or cash collateralization in accordance with the terms of the Loan
      Agreement, or with respect to Letters of Credit, any such Letters of Credit
      supported by another letter of credit reasonably satisfactory to Agent) of
      all
      Guarantied Obligations other than contingent indemnification Guarantied
      Obligations to remain outstanding and are not required to be repaid or cash
      collateralized pursuant to the provisions of the Loan Agreement and the full
      and
      final termination of any commitment to extend any financial accommodations
      under
      the Loan Agreement and any other Loan Document. Any reference herein to any
      Person shall be construed to include such Person’s successors and assigns. Any
      requirement of a writing contained herein shall be satisfied by the transmission
      of a Record and any Record transmitted shall constitute a representation and
      warranty as to the accuracy and completeness of the information contained
      therein. The captions and headings are for convenience of reference only and
      shall not affect the construction of this Guaranty.

     

    2. Guarantied
      Obligations.
      Guarantor hereby, unconditionally, absolutely and irrevocably guarantees to
      Agent, for the benefit of the Lenders, the prompt and complete payment and
      performance when due (whether at the stated maturity, by acceleration or
      otherwise) of the Guarantied Obligations. Guarantor further agrees to pay any
      and all reasonable expenses (including, without limitation, all reasonable
      fees
      and disbursements of counsel) that may be paid or incurred by Agent in enforcing
      any rights with respect to, or collecting, any or all of the Guarantied
      Obligations and/or enforcing any rights with respect to, or collecting against,
      Guarantor under this Guaranty unless, and to the extent, Guarantor is the
      prevailing party in any dispute, claim or action relating thereto, in which
      event Guarantor shall be entitled to recover from Agent Guarantor’s reasonable
      expenses (including, without limitation, all reasonable fees and disbursements
      of counsel) incurred in connection therewith. This Guaranty shall remain in
      full
      force and effect until the Guarantied Obligations are paid in full,
      notwithstanding that from time to time prior thereto the Borrower may be free
      from any Guarantied Obligations. No payment or payments made by Borrower,
      Guarantor, any other guarantor or any other Person received or collected by
      Agent from Borrower, Guarantor, any other guarantor or any other Person by
      virtue of any action or proceeding or any set-off or appropriation or
      application at any time or from time to time in reduction of or in payment
      of
      the Guarantied Obligations shall be deemed to modify, reduce, release or
      otherwise affect the liability of Guarantor hereunder except to the extent
      of
      the reduction of the Guarantied Obligations as a consequence thereof. Guarantor
      shall remain liable for the Guarantied Obligations until the date the Guarantied
      Obligations are satisfied and paid in full.

    
      
        
        

      

      
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    3. Continuing
      Guaranty.
      This
      Guaranty includes Guarantied Obligations arising under successive transactions
      continuing, compromising, extending, increasing, modifying, releasing, or
      renewing the Guarantied Obligations, changing the interest rate, payment terms,
      or other terms and conditions thereof, or creating new or additional Guarantied
      Obligations after prior Guarantied Obligations have been satisfied in whole
      or
      in part. To the maximum extent permitted by law, Guarantor hereby waives any
      right to revoke this Guaranty as to future Guarantied Obligations. If such
      a
      revocation is effective notwithstanding the foregoing waiver, Guarantor
      acknowledges and agrees that (a) no such revocation shall be effective
      until written notice thereof has been received by Agent, (b) no such
      revocation shall apply to any Guarantied Obligations in existence on the date
      of
      receipt by Agent of such written notice (including any subsequent continuation,
      extension, or renewal thereof, or change in the interest rate, payment terms,
      or
      other terms and conditions thereof), (c) no such revocation shall apply to
      any Guarantied Obligations made or created after such date to the extent made
      or
      created pursuant to a legally binding commitment of the Lenders in existence
      on
      the date of such revocation, (d) no payment by Guarantor, Borrower, or from
      any other source, prior to the date of Agent’s receipt of written notice of such
      revocation shall reduce the maximum obligation of Guarantor hereunder, and
      (e) any payment by Borrower or from any source other than Guarantor
      subsequent to the date of such revocation shall first be applied to that portion
      of the Guarantied Obligations as to which the revocation is effective and which
      are not, therefore, guarantied hereunder, and to the extent so applied shall
      not
      reduce the maximum obligation of Guarantor hereunder.

     

    4. Performance
      Under this Guaranty.
      In the
      event that Borrower fails to make any payment of any Guarantied Obligations,
      on
      or prior to the due date thereof, or if Borrower fails to perform, keep,
      observe, or fulfill any other obligation referred to in Section
      2
      of this
      Guaranty in the manner provided in the Loan Agreement or Loan Documents,
      Guarantor immediately shall cause, as applicable, such payment in respect of
      the
      Guarantied Obligations to be made or such obligation to be performed, kept,
      observed, or fulfilled.

     

    5. Primary
      Obligations.
      This
      Guaranty is a primary and original obligation of Guarantor, is not merely the
      creation of a surety relationship, and is an absolute, unconditional, and
      continuing guaranty of payment and performance which shall remain in full force
      and effect without respect to future changes in conditions. Guarantor hereby
      agrees that it is directly, jointly and severally with any other guarantor
      of
      the Guarantied Obligations, liable to Agent, for the benefit of the Lenders,
      that the obligations of Guarantor hereunder are independent of the obligations
      of Borrower or any other guarantor, and that a separate action may be brought
      against Guarantor, whether such action is brought against Borrower or any other
      guarantor or whether Borrower or any other guarantor is joined in such action.
      Guarantor hereby agrees that its liability hereunder shall be immediate and
      shall not be contingent upon the exercise or enforcement by Agent of whatever
      remedies they may have against Borrower or any other guarantor, or the
      enforcement of any lien or realization upon any security by Agent. Guarantor
      hereby agrees that any release which may be given by Agent to Borrower or any
      other guarantor, or with respect to any property or asset subject to a lien,
      shall not release Guarantor. Guarantor consents and agrees that Agent shall
      be
      under any obligation to marshal any property or assets of Borrower or any other
      guarantor in favor of Guarantor, or against or in payment of any or all of
      the
      Guarantied Obligations.

    
      
        
        

      

      
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    6. Pledge
      of Collateral.
      As
      collateral security for the prompt satisfaction and performance of the
      Guarantied Obligations, Guarantor hereby pledges, collaterally assigns and
      hypothecates to Agent (for the benefit of the Lenders) a first priority
      continuing security interest in and lien upon all of the membership interests
      in
      the Borrower and other good and valuable collateral set forth in that certain
      Membership Interest Pledge Agreement of even date herewith, between the
      Guarantor, Agent, and the Lenders.

     

    7. Waivers.

     

    (a)  To
      the
      fullest extent permitted by applicable law, Guarantor hereby waives:
      (i) notice of acceptance hereof; (ii) notice of any loans or other
      financial accommodations made or extended under the Loan Agreement or Loan
      Documents, or the creation or existence of any Guarantied Obligations;
      (iii) notice of the amount of the Guarantied Obligations, subject, however,
      to Guarantor’s right to make inquiry of Agent to ascertain the amount of the
      Guarantied Obligations at any reasonable time; (iv) notice of any adverse
      change in the financial condition of Borrower or of any other fact that might
      increase Guarantor’s risk hereunder; (v) notice of presentment for payment,
      demand, protest, and notice thereof as to any instrument among the Loan
      Documents and ; (vi) notice of any Event of Default under any of the Loan
      Documents; and (vii) all other notices (except if such notice is
      specifically required to be given to Guarantor under this Guaranty or any other
      Loan Documents to which Guarantor is a party) and demands to which Guarantor
      might otherwise be entitled.

     

    (b) To
      the
      fullest extent permitted by applicable law, Guarantor hereby waives the right
      by
      statute or otherwise to require any member of the Lenders, to institute suit
      against Borrower or any other guarantor or to exhaust any rights and remedies
      which any Lender, has or may have against Borrower or any other guarantor.
      In
      this regard, Guarantor agrees that it is bound to the payment of each and all
      Guarantied Obligations, whether now existing or hereafter arising, as fully
      as
      if the Guarantied Obligations were directly owing to Agent, or Lenders, as
      applicable, by Guarantor. Guarantor further waives any defense arising by reason
      of any disability or other defense (other than the defense that the Guarantied
      Obligations shall have been fully and finally performed and indefeasibly paid
      in
      full in cash, to the extent of any such payment) of Borrower or by reason of
      the
      cessation from any cause whatsoever of the liability of Borrower in respect
      thereof.

     

    (c) To
      the
      fullest extent permitted by applicable law, Guarantor hereby waives:
      (i) any right to assert against any member of the Lenders any defense
      (legal or equitable), set-off, counterclaim, or claim which Guarantor may now
      or
      at any time hereafter have against Borrower or any other party liable to any
      Lender; (ii) any defense, set-off, counterclaim, or claim, of any kind or
      nature, arising directly or indirectly from the present or future lack of
      perfection, sufficiency, validity, or enforceability of the Guarantied
      Obligations or any security therefor; (iii) any right or defense arising by
      reason of any claim or defense based upon an election of remedies by any Lender
      including any defense based upon an impairment or elimination of Guarantor’s
      rights of subrogation, reimbursement, contribution, or indemnity of Guarantor
      against Borrower or other guarantors or sureties; (iv) the benefit of any
      statute of limitations affecting Guarantor’s liability hereunder or the
      enforcement thereof, and any act which shall defer or delay the operation of
      any
      statute of limitations applicable to the Guarantied Obligations shall similarly
      operate to defer or delay the operation of such statute of limitations
      applicable to Guarantor’s liability hereunder.

     

    (d) Until
      the
      Guarantied Obligations have been paid in full in cash, (i) Guarantor hereby
      postpones and agrees not to exercise any right of subrogation Guarantor has
      or
      may have as against Borrower with respect to the Guarantied Obligations;
      (ii) Guarantor hereby postpones and agrees not to exercise any right to
      proceed against Borrower or any other Person now or hereafter liable on account
      of the Guarantied Obligations for contribution, indemnity, reimbursement, or
      any
      other similar rights (irrespective of whether direct or indirect, liquidated
      or
      contingent); and (iii) Guarantor hereby postpones and agrees not to
      exercise any right it may have to proceed or to seek recourse against or with
      respect to any property or asset of Borrower or any other Person now or
      hereafter liable on account of the Guarantied Obligations. Notwithstanding
      anything to the contrary contained in this Guaranty, Guarantor shall not
      exercise any rights of subrogation, contribution, indemnity, reimbursement
      or
      other similar rights against, and shall not proceed or seek recourse against
      or
      with respect to any property or asset of, Borrower or any other guarantor
      (including after payment in full of the Guaranteed Obligations) if all or any
      portion of the Obligations have been satisfied in connection with an exercise
      of
      remedies in respect of the membership interests of Borrower or such other
      guarantor whether pursuant to the Loan Agreement or otherwise.

    
      
        
        

      

      
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    (e) If
      any of
      the Guarantied Obligations or the obligations of Guarantor under this Guaranty
      at any time are secured by a mortgage or deed of trust upon real property,
      the
      Agent may elect, in its sole discretion, upon a default with respect to the
      Guarantied Obligations or the obligations of Guarantor under this Guaranty,
      to
      foreclose such mortgage or deed of trust judicially or nonjudicially in any
      manner permitted by law, before or after enforcing this Guaranty, without
      diminishing or affecting the liability of Guarantor hereunder. Guarantor
      understands that (a) by virtue of the operation of antideficiency law
      applicable to nonjudicial foreclosures, an election by Agent to nonjudicially
      foreclose on such a mortgage or deed of trust probably would have the effect
      of
      impairing or destroying rights of subrogation, reimbursement, contribution,
      or
      indemnity of Guarantor against Borrower or other guarantors or sureties, and
      (b) absent the waiver given by Guarantor herein, such an election would
      estop Agent from enforcing this Guaranty against Guarantor. Understanding the
      foregoing, and understanding that Guarantor is hereby relinquishing a defense
      to
      the enforceability of this Guaranty, Guarantor hereby waives any right to assert
      against any Lender or Agent any defense to the enforcement of this Guaranty,
      whether denominated “estoppel” or otherwise, based on or arising from an
      election by Agent to nonjudicially foreclose on any such mortgage or deed of
      trust or as a result of any other exercise of remedies, whether under a mortgage
      or deed of trust or under any personal property security agreement. Guarantor
      understands that the effect of the foregoing waiver may be that Guarantor may
      have liability hereunder for amounts with respect to which Guarantor may be
      left
      without rights of subrogation, reimbursement, contribution, or indemnity against
      Borrower or other guarantors or sureties.

     

    (f) Without
      limiting the generality of any other waiver or other provision set forth in
      this
      Guaranty, Guarantor waives all rights and defenses that Guarantor may have
      if
      all or part of the Guarantied Obligations are secured by real property. This
      means, among other things:

     

    (i) The
      Agent
      may collect from Guarantor without first foreclosing on any real or personal
      property collateral that may be pledged by Guarantor, Borrower, or any other
      guarantor.

     

    (ii) If
      Agent
      forecloses on any real property collateral that may be pledged by Guarantor,
      Borrower or any other guarantor:

     

    
      	 	
              (1)

            	
              The
                amount of the Guarantied Obligations or any obligations of any guarantor
                in respect thereof may be reduced only by the price for which that
                collateral is sold at the foreclosure sale, even if the collateral
                is
                worth more than the sale price.

            

    

     

    
      	 	
              (2)

            	
              Agent
                may collect from Guarantor even if any member of the Lenders, by
                foreclosing on the real property collateral, has destroyed any right
                Guarantor may have to collect from Borrower or any other
                Guarantor.

            

    

     

    This
      is
      an unconditional and irrevocable waiver of any rights and defenses Guarantor
      may
      have if all or part of the Guarantied Obligations are secured by real
      property.

     

    (g) WITHOUT
      LIMITING THE GENERALITY OF ANY OTHER WAIVER OR OTHER PROVISION SET FORTH IN
      THIS
      GUARANTY, GUARANTOR WAIVES ALL RIGHTS AND DEFENSES ARISING OUT OF AN ELECTION
      OF
      REMEDIES BY AGENT, EVEN THOUGH SUCH ELECTION OF REMEDIES, SUCH AS A NONJUDICIAL
      FORECLOSURE WITH RESPECT TO SECURITY FOR THE GUARANTIED OBLIGATIONS, HAS
      DESTROYED GUARANTOR’S RIGHTS OF SUBROGATION AND REIMBURSEMENT AGAINST BORROWER
      BY THE OPERATION OF APPLICABLE LAW.

    
      
        
        

      

      
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    (h) Without
      limiting the generality of any other waiver or other provision set forth in
      this
      Guaranty, Guarantor hereby also agrees to the following waivers:

     

    (i) Agent’s
      right to enforce this Guaranty is absolute and is not contingent upon the
      genuineness, validity or enforceability of the Guarantied Obligations or any
      of
      the Loan Documents. Guarantor agrees that Agent’s rights under this Guaranty
      shall be enforceable even if Borrower had no liability at the time of execution
      of the Loan Documents or the Guarantied Obligations are unenforceable in whole
      or in part, or Borrower ceases to be liable with respect to all or any portion
      of the Guarantied Obligations.

     

    (ii) Guarantor
      agrees that Agent’s rights under the Loan Documents will remain enforceable even
      if the amount guaranteed hereunder is larger in amount and more burdensome
      than
      that for which Borrower is responsible. The enforceability of this Guaranty
      against Guarantor shall continue until all sums due under the Loan Documents
      have been paid in full and shall not be limited or affected in any way by any
      impairment or any diminution or loss of value of any security or collateral
      for
      Borrower’s obligations under the Loan Documents, from whatever cause, the
      failure of any security interest in any such security or collateral or any
      disability or other defense of Borrower, any other guarantor of Borrower’s
      obligations under any other Loan Document, any pledgor of collateral for any
      person’s obligations to Agent or any other person in connection with the Loan
      Documents.

     

    (iii) Guarantor
      waives the right to require Agent to (A) proceed against Borrower, any
      guarantor of Borrower’s obligations under any Loan Document, any other pledgor
      of collateral for any person’s obligations to Agent or any other person in
      connection with the Guarantied Obligations, (B) proceed against or exhaust
      any other security or collateral Agent may hold, or (C) pursue any other
      right or remedy for Guarantor’s benefit, and agrees that Agent may exercise its
      right under this Guaranty without taking any action against Borrower, any other
      guarantor of Borrower’s obligations under the Loan Documents, any pledgor of
      collateral for any person’s obligations to Agent or any other person in
      connection with the Guarantied Obligations, and without proceeding against
      or
      exhausting any security or collateral Agent holds.

     

    8. Releases.
      Guarantor consents and agrees that, without notice to or by Guarantor and
      without affecting or impairing the obligations of Guarantor hereunder, Agent
      may, by action or inaction, compromise or settle, shorten or extend the maturity
      date or any other period of duration or the time for the payment of the
      Guarantied Obligations, or discharge the performance of the Guarantied
      Obligations, or may refuse to enforce the Guarantied Obligations, or otherwise
      elect not to enforce the Guarantied Obligations, or may, by action or inaction,
      release all or any one or more parties to, any one or more of the terms and
      provisions of the Loan Agreement or any of the other Loan Documents or may
      grant
      other indulgences to Borrower or any other guarantor in respect thereof, or
      may
      amend or modify in any manner and at any time (or from time to time) any one
      or
      more of the Guarantied Obligations, the Loan Agreement or any other Loan
      Document (including any increase or decrease in the principal amount of any
      Guarantied Obligations or the interest, fees or other amounts that may accrue
      from time to time in respect thereof), or may, by action or inaction, release
      or
      substitute the Borrower or any guarantor, if any, of the Guarantied Obligations,
      or may enforce, exchange, release, or waive, by action or inaction, any security
      for the Guarantied Obligations or any other guaranty of the Guarantied
      Obligations, or any portion thereof.

     

    9. No
      Election.
      Agent
      on behalf of Lenders shall have the right to seek recourse against Guarantor
      to
      the fullest extent provided for herein and no election to proceed in one form
      of
      action or proceeding, or against any party, or on any obligation, shall
      constitute a waiver of Agent’s right to proceed in any other form of action or
      proceeding or against other parties unless Agent, on behalf of the Lenders,
      has
      expressly waived such right in writing. Specifically, but without limiting
      the
      generality of the foregoing, no action or proceeding by Agent under any document
      or instrument evidencing the Guarantied Obligations shall serve to diminish
      the
      liability of Guarantor under this Guaranty except to the extent that the Lenders
      finally and unconditionally shall have realized indefeasible payment in full
      of
      the Guarantied Obligations by such action or proceeding.

    
      
        
        

      

      
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    10. Revival
      and Reinstatement.
      If the
      incurrence or payment of the Guarantied Obligations or the obligations of
      Guarantor under this Guaranty by Guarantor or the transfer by Guarantor to
      Agent
      of any property of Guarantor should for any reason subsequently be declared
      to
      be void or voidable under any state or federal law relating to creditors’
rights, including provisions of the Bankruptcy Code relating to fraudulent
      conveyances, preferences, or other voidable or recoverable payments of money
      or
      transfers of property (collectively, a “Voidable
      Transfer”),
      and
      if the Lenders are required to repay or restore, in whole or in part, any such
      Voidable Transfer, or elects to do so upon the reasonable advice of its counsel,
      then, as to any such Voidable Transfer, or the amount thereof that the Lenders
      are required or elects to repay or restore, and as to all reasonable costs,
      expenses, and attorneys fees of the Lenders and Agents related thereto, the
      liability of Guarantor automatically shall be revived, reinstated, and restored
      and shall exist as though such Voidable Transfer had never been
      made.

     

    11. Business
      Activity of Guarantor.
      Guarantor represents and warrants to the Agent and Lenders that as of the date
      of this Guaranty, (a) the sole asset of the Guarantor consists of 100%
      membership interest in the Borrower and (b) the sole business activity of the
      Guarantor consists of holding title to such membership interest in the Borrower.
      Guarantor covenants and promises to the Agent and Lenders that so long as this
      Guaranty shall remain in effect, (i) the sole asset of the Guarantor will
      consist of 100% membership interest in the Borrower and (ii) the sole business
      activity of the Guarantor will consist of holding title to such membership
      interest in the Borrower. If at any time Guarantor breaches any representation,
      warranty, covenant or promise contained in this Section
      11,
      then
      such breach shall constitute an immediate Event of Default under the Loan
      Agreement and this Guaranty, and the result of such Event of Default shall
      afford Agent and Lenders with all remedies at law, in equity and as otherwise
      contained in the Loan Agreement, this Guaranty and any other Loan
      Document.

     

    12. Financial
      Condition of Borrower.
      Guarantor represents and warrants that it is currently informed of the financial
      condition of Borrower and of all other circumstances which a diligent inquiry
      would reveal and which bear upon the risk of nonpayment of the Guarantied
      Obligations. Guarantor further represents and warrants that it has read and
      understands the terms and conditions of the Loan Agreement and Loan Documents.
      Guarantor hereby covenants that it will continue to keep itself informed of
      Borrower’s financial condition, the financial condition of other guarantors, if
      any, and of all other circumstances which bear upon the risk of nonpayment
      or
      nonperformance of the Guarantied Obligations.

     

    13. Payments;
      Application.
      All
      payments to be made hereunder by Guarantor shall be made in US Dollars, in
      immediately available funds, and without deduction (whether for taxes or
      otherwise) or offset and shall be applied to the Guarantied Obligations in
      accordance with the terms of the Loan Agreement and Loan Documents.

     

    14. Attorneys
      Fees and Costs.
      Guarantor agrees to pay, on demand, all attorneys fees (provided that the
      Guarantors shall not be required to reimburse the legal fees and expenses of
      more than one law firm and any specialists and local counsel to be selected
      by
      Agent for all Persons indemnified under this Section 13) and all other costs
      and
      expenses which may be incurred by Agent or Lenders in connection with the
      enforcement of this Guaranty or in any way arising out of, or consequential
      to,
      the protection, assertion, or enforcement of the Guarantied Obligations (or
      any
      security therefor), irrespective of whether suit is brought.

     

    15. Notices.
      All
      notices and other communications hereunder to Agent shall be in writing and
      shall be mailed, sent, or delivered in accordance with Section
      15.4
      of the
      Loan Agreement. All notices and other communications hereunder to Guarantor
      shall be in writing and shall be mailed, sent, or delivered in care of Borrower
      in accordance with Section
      15.4
      of the
      Loan Agreement.

     

    16. Cumulative
      Remedies.
      No
      remedy under this Guaranty, under the Loan Agreement, or any other Loan Document
      is intended to be exclusive of any other remedy, but each and every remedy
      shall
      be cumulative and in addition to any and every other remedy given under this
      Guaranty, under the Loan Agreement, or any other Loan Document, and those
      provided by law. No delay or omission by the Agent on behalf of Lenders to
      exercise any right under this Guaranty shall impair any such right nor be
      construed to be a waiver thereof. No failure on the part of Agent to exercise,
      and no delay in exercising, any right under this Guaranty shall operate as
      a
      waiver thereof; nor shall any single or partial exercise of any right under
      this
      Guaranty preclude any other or further exercise thereof or the exercise of
      any
      other right.

    
      
        
        

      

      
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          7
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    17. Severability
      of Provisions.
      Each
      provision of this Guaranty shall be severable from every other provision of
      this
      Guaranty for the purpose of determining the legal enforceability of any specific
      provision.

     

    18. Entire
      Agreement; Amendments.
      This
      Guaranty constitutes the entire agreement between parties pertaining to the
      subject matter contained herein. This Guaranty may not be altered, amended,
      or
      modified, nor may any provision hereof be waived or noncompliance therewith
      consented to, except by means of a writing executed by Guarantor and Agent,
      on
      behalf of the Lenders. Any such alteration, amendment, modification, waiver,
      or
      consent shall be effective only to the extent specified therein and for the
      specific purpose for which given. No course of dealing and no delay or waiver
      of
      any right or default under this Guaranty shall be deemed a waiver of any other,
      similar or dissimilar, right or default or otherwise prejudice the rights and
      remedies hereunder.

     

    19. Successors
      and Assigns.
      This
      Guaranty shall be binding upon Guarantor and its successors and assigns and
      shall inure to the benefit of the successors and assigns of the Agent and
      Lenders; provided,
      however,
      Guarantor shall not assign this Guaranty or delegate any of its duties hereunder
      without Agent’s prior written consent and any unconsented to assignment shall be
      absolutely null and void. In the event of any assignment, participation, or
      other transfer of rights by the Agent and Lenders, the rights and benefits
      herein conferred upon the Agent and Lenders shall automatically extend to and
      be
      vested in such assignee or other transferee.

     

    20. No
      Third Party Beneficiary.
      This
      Guaranty is solely for the benefit of the Lenders (as represented by Agent)
      and
      each of their successors and assigns and may not be relied on by any other
      Person.

     

    21. CHOICE
      OF LAW AND VENUE; JURY TRIAL WAIVER.

     

    THE
      VALIDITY OF THIS GUARANTY, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT
      HEREOF, AND THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING
      HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     

    THE
      PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
      GUARANTY SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT
      PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK,
      PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL
      OR
      OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY
      JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL
      OR
      OTHER PROPERTY MAY BE FOUND. GUARANTOR AND THE LENDERS WAIVE, TO THE EXTENT
      PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE
      OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING
      IS
      BROUGHT IN ACCORDANCE WITH THIS SECTION
      21.
      

     

    GUARANTOR,
      AGENT, AND LENDERS HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF
      ANY
      CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS GUARANTY OR ANY
      OF
      THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
      BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. GUARANTOR
      AND LENDERS REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY
      AND
      VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
      COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS SECTION MAY BE FILED AS
      A
      WRITTEN CONSENT TO A TRIAL BY THE COURT.

    
      
        
        

      

      
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          8
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    22. Counterparts;
      Telefacsimile and other Electronic Execution.
      This
      Guaranty may be executed in any number of counterparts and by different parties
      on separate counterparts, each of which, when executed and delivered, shall
      be
      deemed to be an original, and all of which, when taken together, shall
      constitute but one and the same Guaranty. Delivery of an executed counterpart
      of
      this Guaranty by telefacsimile and other electronic transmission shall be
      equally as effective as delivery of an original executed counterpart of this
      Guaranty. Any party delivering an executed counterpart of this Guaranty by
      telefacsimile and other electronic transmission also shall deliver an original
      executed counterpart of this Guaranty but the failure to deliver an original
      executed counterpart shall not affect the validity, enforceability, and binding
      effect of this Guaranty. 

     

    23. Agreement
      to be Bound.
      Guarantor hereby agrees to be bound by each and all of the terms and provisions
      of the Loan Agreement and Loan Documents applicable to Guarantor. Without
      limiting the generality of the foregoing, by its execution and delivery of
      this
      Guaranty, Guarantor hereby: (a) makes to the Lenders and Agent each of the
      representations and warranties set forth in the Loan Agreement and Loan
      Documents applicable to Borrower fully as though Guarantor was the Borrower
      thereunder, and such representations and warranties are incorporated herein
      by
      this reference, mutatis
      mutandis;
      and
      (b) agrees and covenants (i) to do each of the things set forth in the
      Loan Agreement that Borrower agrees and covenants to do as if the Guarantor
      was
      the Borrower thereunder, and (ii) to not do each of the things set forth in
      the Loan Agreement that Borrower agrees and covenants not to do as if the
      Guarantor was the Borrower thereunder, in each case, fully as though Guarantor
      was a party thereto, and such agreements and covenants are incorporated herein
      by this reference, mutatis
      mutandis.

     

    [Signature
      page to follow]

    
      
        
        

      

      
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          9
          -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      undersigned has executed and delivered this Guaranty as of the date first
      written above.

    

    
      	
              GUARANTOR:

            
	
              HYDROGEN
                CORPORATION 

              a
                Nevada corporation

            
	 
	
              By:

            	
              /s/
                John J. Freeh    

            
	
              Title:

            	Chief
              Executive Officer
	 
	
              AGENT:

            
	
              FEDERATED
                KAUFMANN FUND

              a
                portfolio of Federated Equity Funds

            
	 
	
              By:

            	
              /s/
                Lawrence Auriana

            
	
              Title:

            	Vice
              President

    

     

    
      [Signature
        Page to Guaranty]

    

    
      
        
        

      

      
        S-1Unassociated Document

    
       

      PLEDGE
        AGREEMENT

       

      THIS
        PLEDGE AGREEMENT
        (this
“Agreement”),
        dated
        as of August 22, 2008, is made by and between HYDROGEN
        CORPORATION, a
        Nevada
        corporation
        (“the
“Pledgor”)
        in
        favor of FEDERATED
        KAUFMANN FUND, a
        portfolio of Federated Equity Funds, a Massachusetts business trust, as agent
        for the Lenders (as defined below) (in such capacity, together with its
        successors and assigns, the “Pledgee”).

       

      RECITALS

       

      A. The
        Pledgor, Hydrogen, L.L.C., an Ohio limited liability company (the “Borrower”),
        Federated Kaufmann Fund, a portfolio of Federated Equity Funds, a Massachusetts
        business trust and Samsung C&T Corporation, a corporation organized under
        the laws of the Republic of Korea (collectively, together with their respective
        successors and assigns, the “Lenders”),
        and
        the Pledgee in its capacity as Agent for the benefit of the Lenders are parties
        to that certain Loan and Security Agreement of even date herewith (as amended,
        the “Loan
        Agreement”).
        Capitalized terms used herein but not defined herein shall have the meanings
        ascribed thereto in the Loan Agreement.

      

      B. Pursuant
        to the Loan Agreement, the Lenders are making term loans to the Borrower
        (the
“Loan”).
        

      

      C. As
        a
        condition to the making of the Loan to the Borrower and
        pursuant to that certain Guaranty, dated as of even date herewith, between
        the
        Agent and the Pledgor, the
        Pledgor is required to execute and deliver this Agreement and shall have
        made
        the pledge contemplated hereunder of its membership interest in the Borrower
        to
        provide security for the Borrower’s obligations under the Loan Agreement and any
        and all other instruments, agreements and documents delivered or executed
        in
        connection therewith (as any of the foregoing may be amended, supplemented
        or
        modified from time to time, collectively, the “Loan
        Documents”).

      

      NOW,
        THEREFORE,
        in
        consideration of the premises hereinabove, and for other good and valuable
        consideration, the receipt, adequacy and sufficiency of which are hereby
        acknowledged, the Pledgor hereby covenants and agrees with the Pledgee as
        follows:

      

      1. SECURITY
        FOR OBLIGATIONS, ETC.
        This
        Agreement is for the benefit of the Pledgee (in its capacity as Agent for
        the
        benefit of the Lenders) and any successor Agents appointed pursuant to the
        Loan
        Agreement to secure the prompt and complete payment and performance when
        due of
        all obligations, liabilities, indebtedness (whether for principal, interest,
        charges, or fees), costs, expenses, covenants, indemnities and agreements
        of
        every nature whatsoever of the Borrower to the Lenders and the Pledgee (in
        its
        capacity as Agent for the benefit of the Lenders) now existing or hereafter
        arising under the Loan Agreement, this Agreement, and any and all other Loan
        Documents (all of the foregoing being herein collectively called the
“Secured
        Obligations”).

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2. DEFINITION
        OF PLEDGED COLLATERAL.
        As used
        herein, the term “Pledged
        Collateral”
shall
        mean one hundred percent (100%) of Pledgor’s membership interest in the
        Borrower. 

      

      3. PLEDGE
        OF PLEDGED COLLATERAL AND OTHER COLLATERAL.

      

      3.1 Pledge.
        To
        secure the Secured Obligations and for the purposes set forth in Section
        1
        hereof,
        Pledgor hereby pledges, collaterally assigns and conveys, and grants a security
        interest in and lien on, in favor of Pledgee (as Agent for the benefit of
        the
        Lenders), all of Pledgor’s right, title and interest in, to, and under (A) the
        Pledged Collateral, (B) any additional Pledged Collateral acquired pursuant
        to
Section
        3.2
        below
        (whether by purchase, dividend, distribution, merger, consolidation, sale
        of
        assets, split, spin-off, or any other dividend or distribution of any kind
        or
        otherwise), (C) all distributions, dividends, cash, certificates, liquidation
        rights and interests, options, rights, warrants, instruments or other property
        from time to time received, receivable or otherwise distributed in respect
        of or
        in exchange or substitution for any and all of the Pledged Collateral, and
        (D)
        all proceeds, products, replacements and substitutions for any of the foregoing,
        in each case whether now owned or hereafter acquired by the Pledgor
        (collectively, the “Collateral”).
        The
        Pledgor shall permit the Pledgee to file a UCC Financing Statement naming
        the
        Pledgor as debtor and the Pledgee as secured party with respect to the
        Collateral in any jurisdiction reasonably required by the Pledgee (including
        with the Nevada Secretary of State). 

      

      3.2 Subsequently
        Acquired Pledged Collateral.
        If at
        any time or from time to time after the date hereof, the Pledgor shall acquire
        any additional Pledged Collateral, including any further equity in the Borrower
        (whether by purchase, dividend, distribution, merger, consolidation, sale
        of
        assets, split, spin-off, or any other dividend or distribution of any kind
        or
        otherwise), the Pledgor will forthwith pledge additional Collateral. The
        Pledgor
        shall permit the Pledgee to file a UCC Financing Statement naming the Pledgor
        as
        debtor and the Pledgee as secured party with respect to the additional
        Collateral in any jurisdiction reasonably required by the Pledgee (including
        with the Nevada Secretary of State).

      

      3.3 Certificated
        Pledged Collateral.
        In
        addition to anything contained in Sections
        3.1 and 3.2
        hereof,
        if any Pledged Collateral (whether now owned or hereafter acquired) is or
        becomes evidenced by a certificated security, the Pledgor shall promptly
        notify
        the Pledgee thereof and shall promptly take all actions required to perfect
        the
        security interest of the Pledgee (as Agent for the benefit of the Lenders)
        under
        applicable law (including, in any event, delivery of physical possession
        of all
        certificates to the Pledgee, and take any other action required or appropriate
        under this Agreement or the Uniform Commercial Code of the State of New York
        or
        equivalent provisions of any other applicable jurisdiction (the “UCC”)).
        

      

      4. VOTING,
        ETC.
        Unless
        and until an Event of Default (as defined in the Loan Agreement) occurs,
        the
        Pledgor shall be entitled to vote any and all of the Pledged Collateral.
        All
        such rights of the Pledgor to vote shall cease in case an Event of Default
        shall
        occur and the Pledgee elects to enforce its rights and remedies against the
        Pledged Collateral and so directs and notifies the Pledgor. 

      
        
          
          

        

        
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      5. PAYMENTS
        AND OTHER DISTRIBUTIONS.
        Unless
        and until an Event of Default (as defined in the Loan Agreement) occurs,
        all
        cash distributions payable in respect of the Pledged Collateral shall be
        paid to
        the Pledgor. All such rights of the Pledgor to receive such cash distributions
        shall cease in case an Event of Default shall occur and the Pledgee elects
        to
        enforce its rights against the Pledged Collateral and so directs and notifies
        the Pledgor. The Pledgee shall be entitled to receive directly, and to retain
        as
        part of the Collateral:

      

      (a) all
        other
        or additional securities or investment property, or rights to subscribe for
        or
        purchase any of the foregoing, or property (other than cash) paid or distributed
        by way of dividend in respect of the Pledged Collateral;

      

      (b) all
        other
        or additional securities, investment property or property (including cash)
        paid
        or distributed in respect of the Pledged Collateral by way of split, spin-off,
        split-up, reclassification, combination of shares or similar rearrangement;
        and

      

      (c) all
        other
        or additional securities, investment property or property which may be paid
        in
        respect of the Collateral by reason of any consolidation, merger, exchange,
        dividend, split, or distribution, conveyance of assets, liquidation or similar
        reorganization or other disposition of Collateral.

      

      If
        at any
        time the Pledgor shall obtain or possess any of the foregoing Collateral
        described in this Section, the Pledgor shall be deemed to hold such Collateral
        in trust for the Pledgee and the Pledgor shall promptly surrender and deliver
        such Collateral to the Pledgee.

      

      6. REMEDIES
        IN CASE OF AN EVENT OF DEFAULT.
        In case
        an Event of Default occurs or exists, the Pledgee shall be entitled to exercise
        all of the rights, powers and remedies (whether vested in it by this Agreement,
        the Loan Agreement, any other Loan Documents, and/or in equity or by law,
        and
        including, without limitation, all rights and remedies of a secured party
        of a
        debtor in default under the UCC) for the protection and enforcement of its
        rights in respect of the Collateral, and to the fullest extent permitted
        by
        applicable law, the Pledgee shall be entitled, without limitation, to exercise
        the following rights, which the Pledgor hereby agrees to be commercially
        reasonable:

      

      (a) to
        receive all amounts payable in respect of the Collateral otherwise payable
        under
Section
        5
        hereof
        to the Pledgor;

      

      (b) to
        transfer all or any part of the Collateral into the Pledgee’s name or the name
        of its nominee or nominees;

      

      (c) to
        vote
        all or any part of the Collateral and otherwise act with respect thereto
        as
        though it were the outright owner thereof;

      
        
          
          

        

        
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            3
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      (d) at
        any
        time or from time to time to sell, assign and deliver, or grant options to
        purchase, all or any part of the Collateral in one or more parcels, or any
        interest therein, at any public or private sale at any exchange, broker’s board
        or at any of the Pledgee’s offices or elsewhere, without demand of performance,
        advertisement or notice of intention to sell or of time or place of sale
        or
        adjournment thereof or to redeem (all of which, except as may be required
        by
        mandatory provisions of applicable law, are hereby expressly and irrevocably
        waived by the Pledgor) for cash, on credit or for other property, for immediate
        or future delivery without any assumption of credit risk, and for such price
        or
        prices and on such terms as the Pledgee in its absolute discretion may
        determine. Pledgor agrees that to the extent that notice of sale shall be
        required by law that at least ten (10) calendar days’ notice to the Pledgor of
        the time (which shall be during normal business hours) and place of any public
        sale or the time after which any private sale is to be made shall constitute
        reasonable notification. The Pledgee shall not be obligated to make any sale
        of
        Collateral regardless of notice of sale having been given. The Pledgee may
        adjourn any public or private sale from time to time by announcement at the
        time
        and place fixed therefor, and any such sale may, without further notice,
        be made
        at the time and place to which it was so adjourned. Pledgor hereby waives
        and
        releases to the fullest extent permitted by law any right or equity of
        redemption with respect to the collateral, whether before or after sale
        hereunder, and all rights, if any of marshalling the Collateral and any other
        security for the Secured Obligations or otherwise. At any such sale, unless
        prohibited by applicable law, the Pledgee may bid for and purchase all or
        any
        part of the Collateral so sold free from any such right or equity of redemption.
        The Pledgee shall not be liable for failure to collect or realize upon any
        or
        all of the Collateral or for any delay in so doing nor shall the Pledgee
        be
        under any obligation to take any action whatsoever with regard
        thereto;

      

      (e) to
        settle, adjust, compromise and arrange all accounts, controversies, questions,
        claims and demands whatsoever in relation to all or any part of the
        Collateral;

      

      (f) in
        respect of the Collateral, to execute all such contracts, agreements, deeds,
        documents and instruments, to bring, defend and abandon all such actions,
        suits
        and proceedings, and to take all actions in relation to all or any part of
        the
        Collateral as the Pledgee in its absolute discretion may determine;

      

      (g) to
        appoint managers, sub-agents, officers and servants for any of the purposes
        mentioned in the foregoing provisions of this Section and to dismiss the
        same,
        all of the Pledgee in its absolute discretion may determine; and

      

      (h) generally,
        to take all such other action as the Pledgee in its absolute discretion may
        determine as incidental or conducive to any of the matters or powers mentioned
        in the foregoing provisions of this Section and which the Pledgee may or
        can do
        lawfully and to use the name of the Pledgor for the purposes aforesaid and
        in
        any proceedings arising therefrom.

      

      7. REMEDIES,
        ETC., CUMULATIVE.
        Each
        right, power and remedy of the Pledgee provided for in this Agreement, the
        Loan
        Agreement, any Loan Document or any other security agreement, mortgage, guaranty
        or now or hereafter existing at law or in equity or by statute shall be
        cumulative and concurrent and shall be in addition to every other such right,
        power or remedy. The exercise or beginning of the exercise by the Pledgee
        of any
        one or more of the rights, powers or remedies provided for in this Agreement,
        the Loan Agreement, or any other Loan Document or now or hereafter existing
        at
        law or in equity or by statute or otherwise shall not preclude the simultaneous
        or later exercise by the Pledgee of all such other rights, powers or remedies,
        and no failure or delay on the part of the Pledgee to exercise any such right,
        power or remedy shall operate as a waiver thereof. All moneys collected by
        the
        Pledgee upon sale or other disposition of the Collateral, together with all
        other moneys received by the Pledgee hereunder, shall be applied in accordance
        with the provisions of the Loan Agreement.

      
        
          
          

        

        
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            4
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      8. FURTHER
        ASSURANCES.
        Pledgor
        agrees that, at any time and from time to time, Pledgor will join with the
        Pledgee in executing and, at the Pledgor’s own expense, will file and refile
        under the UCC such financing statements, continuation statements and other
        documents in such offices as the Pledgee may deem necessary or appropriate
        and
        wherever required or permitted by law in order to perfect and preserve the
        Pledgee’s security interest in the Collateral, and hereby authorizes the Pledgee
        to file financing statements and amendments thereto relative solely to the
        Collateral, and agrees to do such further acts and things and to promptly
        execute and deliver to the Pledgee such additional conveyances, assignments,
        agreements and instruments as the Pledgee may require or deem advisable to
        carry
        into effect the purpose of this Agreement or to further assure and confirm
        unto
        the Pledgee its rights, powers and remedies hereunder.

      

      9. REASONABLE
        CARE BY PLEDGEE.
        The
        Pledgee shall be deemed by the Pledgor to have exercised reasonable care
        in the
        custody and preservation of the Collateral in its possession if the Collateral
        is accorded treatment substantially equal to that which the Pledgee accords
        its
        own similar property.

      

      10.   TRANSFER
        BY THE PLEDGOR.
        The
        Pledgor shall not sell, transfer or otherwise dispose of, grant any option
        with
        respect to, or pledge or otherwise encumber any of the Collateral or any
        interest therein. 

      

      11. REPRESENTATIONS
        AND WARRANTIES OF THE PLEDGOR.
        Pledgor
        hereby represents and warrants to the Pledgee, which representations and
        warranties shall survive the execution and delivery of this Agreement, as
        follows:

      

      11.1 Validity,
        Perfection and Priority.
        The
        pledge and security interests in the Collateral granted to the Pledgee
        constitute valid and continuing security interests in the Collateral. Upon
        the
        filing of a UCC Financing Statement naming the Pledgor as debtor and the
        Pledgee
        as secured party with the Nevada Secretary of State, the security interests
        in
        the Pledged Collateral granted to the Pledgee hereunder constitute valid
        and
        perfected security interests therein.

      

      11.2 No
        Liens; Other Financing Statements.

      

      (a) Except
        for the liens and security interests granted to the Pledgee, the Pledgor
        is the
        legal and beneficial owner of, and has good title to, the Pledged Collateral
        and
        is the lawful owner of all of the other Collateral whether now existing or
        hereafter acquired and will continue to own each item of the Collateral free
        and
        clear of any and all pledges, liens, mortgages, hypothecations, security
        interests, charges, rights, options, claims and other encumbrances of all
        other
        Persons and the Pledgor shall defend the Collateral against all claims and
        demand of all Persons at any time claiming the same or any interest therein
        adverse to the Pledgee.

       

      
        
          
          

        

        
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      (b) No
        financing statement or other evidence of lien covering or purporting to cover
        any of the Collateral is on file in any public office.

      11.3 Pledged
        Collateral.

      

      (a) The
        Pledged Collateral is and all other Pledged Collateral in which the Pledgor
        shall hereafter grant a lien or security interest pursuant to Section
        2
        hereof
        will be, duly authorized, validly issued, and, except for the pledge provided
        in
Section
        3.1
        hereof
        in favor of Pledgee, none of such Pledged Collateral is or will be subject
        to
        any legal or contractual restriction. The Pledged Collateral is, as of the
        date
        hereof, and shall be at all times hereafter during the term of this Agreement,
        freely transferable without restriction or limitation (except as limited
        by the
        terms of this Agreement).

      

      (b) The
        Pledge Collateral constitutes all of the issued and outstanding securities
        and
        investment property legally and beneficially owned by the Pledgor on the
        date
        hereof in or relating to Borrower. The Pledgor is the sole member of the
        Borrower.

      

      11.4 Power
        and Authority.
        The
        Pledgor has the power and authority to pledge and assign all of the Collateral
        pursuant to this Agreement. The Pledgor has executed and delivered this
        Agreement, and this Agreement constitutes the legal, valid and binding
        obligations of the Pledgor, enforceable against the Pledgor in accordance
        with
        the terms herein.

      

      11.5 No
        Violation.
        Neither
        the execution, delivery or performance by the Pledgor of this Agreement,
        nor
        compliance with the terms and provisions hereof by the Pledgor nor the
        consummation of the transactions contemplated hereby will conflict or be
        inconsistent with or result in any breach of, any of the terms, covenants,
        conditions or provisions of, or constitute a default under any agreement
        or
        other instrument to which Pledgor is a party.

      

      11.6 Corporate
        Identification Number.
        Pledgor’s corporate identification number issued by the Nevada Secretary of
        State is C16508-1999. 

      

      12. COVENANTS
        OF THE PLEDGOR.
        Pledgor
        covenants and agrees with the Pledgee that on and after the date hereof and
        until all of the Secured Obligations shall have been paid in full:

      

      12.1 Collateral.
        (a) The
        Pledgor will defend the Pledgee’s right, title and security interest in and to
        the Collateral against the claims and demands of all Persons whomsoever;
        (b) the
        Pledgor will have good and marketable title to and right to pledge any other
        property at any time hereinafter constituting Collateral and will likewise
        defend the right thereto and security interest therein of the Pledgee; and
        (c)
        except the Operating Agreement in effect on the date hereof, Pledgor will
        not
        without the advance written consent of the Pledgee, with respect to any
        Collateral, enter into any shareholder type agreements, voting agreements,
        voting trusts, trust deeds, irrevocable proxies or any other similar agreements
        or instruments.

      

      12.2 Right
        of Inspection.
        The
        Pledgee and its representatives shall upon reasonable advance notice have
        full
        and free access to all the books, correspondence and records of the Pledgor
        relating to the Collateral, if any, and the Pledgee and its representatives
        may
        examine the same, take extracts therefrom and make photocopies
        thereof.

      
        
          
          

        

        
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      12.3 Compliance
        with Laws.
        The
        Pledgor will comply in all material respects with all requirements of law
        applicable to the Collateral or any part thereof.

      

      12.4 Payment
        of Obligations.
        The
        Pledgor will pay promptly when due all taxes, assessments and governmental
        charges or levies imposed upon the Collateral or in respect of any income
        or
        profits therefrom, as well as all claims of any kind against or with respect
        to
        the Collateral.

      

      12.5 No
        Impairment.
        The
        Pledgor will not take or permit to be taken any action which could impair
        the
        Pledgee’s rights in the Collateral. The Pledgor will not create, incur 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, other
        than
        the liens created hereby, and will defend the right, title and interest of
        the
        Pledgee in and to any of the Collateral against the claims and demands of
        all
        Persons whomsoever.

      

      12.6 Performance
        by Pledgee of Pledgor’s Obligations; Reimbursement.
        If the
        Pledgor fails to perform or comply with any of the agreements contained herein,
        the Pledgee may, without notice to or consent by the Pledgor, perform or
        comply
        or cause performance or compliance therewith, and the expenses of the Pledgee
        incurred in connection with such performance or compliance shall be payable
        by
        the Pledgor to the Pledgee on demand, and such reimbursement obligation shall
        be
        secured hereby; provided,
        however,
        the
        Pledgee shall not be under any obligation to taken any such action.

      

      12.7 Further
        Identification of Pledged Collateral.
        The
        Pledgor will furnish to the Pledgee from time to time such reports in connection
        with the Pledged Collateral as the Pledgee may reasonably request from time
        to
        time.

      

      12.8 Continuous
        Perfection.
        The
        Pledgor will not change the Pledgor’s name, in any manner which might make any
        financing or continuation statement filed hereunder seriously misleading
        within
        the meaning of any applicable provision of Article 9 of the UCC) unless the
        Pledgor shall have given the Pledgee at least fifteen (15) days prior written
        notice thereof and shall have taken all action necessary or reasonably requested
        by the Pledgee to amend such financing statement or continuation statement
        so
        that it is not seriously misleading. The Pledgor will not change the Pledgor’s
        residence, unless the Pledgor shall have given the Pledgee at least fifteen
        (15)
        days prior written notice thereof and shall have taken such action as is
        necessary to cause the security interest of the Pledgee in the Pledged
        Collateral to continue to be perfected.

      

      12.9 Stay
        or Extension Laws.
        The
        Pledgor will not at any time claim, take, insist upon or invoke the benefit
        or
        advantage of or from any law now or hereafter in force providing for the
        valuation or appraisement of the Pledged Collateral prior to any sale or
        sales
        thereof to be made pursuant to the provisions hereof or pursuant to the decree,
        judgment, or order of any court of competent jurisdiction; nor, after such
        sale
        or sales, claim or exercise any right under any statute now or hereafter
        made or
        enacted by an state to redeem the property so sold or any part thereof, and
        the
        Pledgor hereby expressly waives, on behalf of the Pledgor and each and every
        person claiming by, through and under the Pledgor, all benefit and advantage
        of
        any such law or laws, and covenants that the Pledgor will not invoke or utilize
        any such law or laws or otherwise hinder, delay or impede the execution of
        any
        power, right or remedy herein or hereby granted and delegated to the Pledgee,
        but will authorize, allow and permit the execution of every such power, right
        or
        remedy as though no such law or lass had been made or enacted.

      
        
          
          

        

        
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        12.10 Borrower’s
          Records; Sole Member.
          The
          Pledgor shall cause the Borrower to make a notation on the records of the
          Borrower indicating the interest granted hereby in favor of the Pledgee
          (as
          Agent for the benefit of the Lenders). The Pledgor will remain the sole
          member
          of the Borrower.

         

      

      13. PLEDGOR’S
        OBLIGATIONS ABSOLUTE, ETC.
        The
        obligations of the Pledgor under this Agreement shall be absolute and
        unconditional in accordance with its terms and shall not be released, suspended,
        discharged, terminated or otherwise affected by, any circumstance or occurrence
        whatsoever, including, without limitation: (a) any change in the time, place
        or
        manner of payment of, or in any other term of, all or any of the Secured
        Obligations, any waiver, indulgence, renewal, extension, amendment or
        modification of or addition, consent or supplement to or deletion from or
        any
        other action or inaction under or in respect of the Loan Agreement or any
        other
        Loan Document (as defined in the Loan Agreement), or any of the other documents,
        instruments or agreements relating to the Secured Obligations or any other
        instrument or agreement referred to therein or any assignment or transfer
        of any
        thereof; (b) any lack of validity or enforceability of the Loan Agreement,
        or
        any other Loan Document (as defined in the Loan Agreement), or any other
        documents, instruments or agreement referred to therein or any assignment
        or
        transfer of any thereof; (c) any furnishing of any additional security or
        collateral to the Pledgee or its assignees or any acceptance thereof or any
        release of any security by the Pledgee or its assignees; (d) any limitation
        on
        any party’s liability or obligations under any such instrument or agreement or
        any invalidity or unenforceability, in whole or in party, of any such instrument
        or agreement or any term thereof; (e) any bankruptcy, insolvency,
        reorganization, composition, adjustment, dissolution, liquidation or other
        like
        proceeding relating to the Pledgor, as applicable, or any action taken with
        respect to this Agreement by any trustee or receiver, or by any court, in
        any
        such proceeding, whether or not the Pledgor shall have notice or knowledge
        of
        any of the foregoing; (f) any exchange, release or nonperfection of any other
        collateral, or any release, or amendment or waiver of or consent to departure
        from any guaranty or security, for all or any of the Secured Obligations;
        or (g)
        any other circumstance which might otherwise constitute a defense available
        to,
        or a discharge of, the Pledgor.

      

      14. NOTICES,
        ETC.
        Any
        notice required or desired to be served, given or delivered hereunder shall
        be
        in the form and manner specified in the Loan Agreement.

      

      15. MISCELLANEOUS.
        The
        Pledgor agrees with the Pledgee that each of the obligations and liabilities
        of
        the Pledgor to the Pledgee under this Agreement may be enforced against the
        Pledgor without the necessity of joining any other Person (as defined in
        the
        Loan Agreement) as a party. This Agreement shall create a continuing security
        interest in the Collateral and shall be binding upon the heirs and legal
        beneficiaries, and permitted successors and assigns of the Pledgor, as
        applicable, and shall inure to the benefit of and be enforceable by the Pledgee
        and its successors and assigns. Unless otherwise defined herein, terms defined
        in the UCC as in effect in the State of New York are used herein as therein
        defined. The headings in this Agreement are for convenience of reference
        only
        and shall not limit or define the meaning hereof. This Agreement may be executed
        in any number of counterparts, each of which shall be an original, but all
        of
        which shall constitute one instrument. If any provision of this Agreement
        shall
        prove to be invalid or unenforceable, such provision shall be deemed to be
        severable from the other provisions of this Agreement which shall remain
        binding
        on all parties hereto. The Pledgor shall have no rights of subrogation as
        to any
        of the Pledged Collateral until full and complete performance and payment
        of the
        Secured Obligations.

      
        
          
          

        

        
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            8
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      16. TERMINATION.
        This
        Agreement shall terminate after the Secured Obligations are paid in full
        and the
        Loan Agreement is terminated in accordance with its terms. Upon the termination
        of this Agreement, the Pledgee, at the request of the Pledgor and at the
        expense
        of the Pledgor, will promptly execute and deliver to the Pledgor the proper
        instruments acknowledging the termination of this Agreement and will duly
        assign, transfer and deliver to the Pledgor or to whomsoever shall be lawfully
        entitled to receive the same (without recourse and without any representation
        or
        warranty of any kind) such of the Collateral as may be in the possession
        of the
        Pledgee and has not theretofore been sold or otherwise applied or released
        pursuant to this Agreement.

      

      17. AMENDMENTS;
        MARSHALLING.
        None of
        the terms or provisions of this Agreement may be waived, amended, supplemented
        or otherwise modified except by a written instrument executed by the Pledgor
        and
        the Pledgee. The Pledgee shall be under no obligation to marshal any assets
        or
        collateral in favor of the Pledgor or any other person or entity or against
        or
        in payment of any or all of the Secured Obligations.

      

      18. APPLICABLE
        LAW.
        THIS
        AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE
        WITH
        THE LAWS OF THE STATE OF NEW YORK, THE LAWS OF WHICH PLEDGOR AND PLEDGEE
        HEREBY
        EXPRESSLY ELECT TO APPLY TO THIS AGREEMENT, WITHOUT GIVING EFFECT TO PROVISIONS
        FOR CHOICE OF LAW HEREUNDER. PLEDGOR AND PLEDGEE AGREES THAT ANY ACTION OR
        PROCEEDING BROUGHT TO ENFORCE OR ARISING OUT OF THIS AGREEMENT SHALL BE
        COMMENCED IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT. 

      

      19. WAIVER
        OF JURY TRIAL.
        PLEDGOR
        HEREBY WAIVES ANY AND ALL RIGHTS THAT IT MAY NOW OR HEREAFTER HAVE UNDER
        THE
        LAWS OF THE UNITED STATES OF AMERICA OR ANY STATE TO A TRIAL BY JURY OF ANY
        AND
        ALL ISSUES ARISING EITHER DIRECTLY OR INDIRECTLY IN ANY ACTION OR PROCEEDING
        BETWEEN PLEDGOR, PLEDGEE OR ITS SUCCESSORS AND ASSIGNS, OUT OF OR IN ANY
        WAY
        CONNECTED WITH THIS AGREEMENT. IT IS INTENDED THAT SAID WAIVER SHALL APPLY
        TO
        ANY AND ALL DEFENSES, RIGHTS, AND/OR COUNTERCLAIMS IN ANY ACTION OR PROCEEDINGS
        BETWEEN PLEDGOR AND PLEDGEE. PLEDGOR WAIVES ALL RIGHTS TO INTERPOSE ANY CLAIMS,
        DEDUCTIONS, SETOFFS OR COUNTERCLAIMS OF ANY KIND, NATURE OR DESCRIPTION IN
        ANY
        ACTION OR PROCEEDING INSTITUTED BY PLEDGEE WITH RESPECT TO THIS AGREEMENT
        OR ANY
        MATTER ARISING THEREFROM OR RELATING THERETO, EXCEPT COMPULSORY
        COUNTERCLAIMS.

      
        
          
          

        

        
          -
            9
            -

          
            

          

        

        
          
          

        

      

      

      20. CONSENT
        TO JURISDICTION.
        PLEDGOR
        HEREBY (a) IRREVOCABLY SUBMITS AND CONSENTS TO THE EXCLUSIVE JURISDICTION
        OF THE
        STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK, WITH RESPECT TO
        ANY
        ACTION OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR ANY MATTER ARISING
        THEREFROM OR RELATING THERETO, AND (b) WAIVES ANY OBJECTION BASED ON VENUE
        OR
        FORUM NON CONVENIENS WITH RESPECT THERETO. IN ANY SUCH ACTION OR PROCEEDING,
        PLEDGOR WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT OR OTHER PROCESS
        AND PAPERS THEREIN AND AGREES THAT THE SERVICE THEREOF MAY BE MADE BY CERTIFIED
        MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO PLEDGOR AT ITS OFFICES SET FORTH
        HEREIN OR OTHER ADDRESS THEREOF OF WHICH PLEDGEE HAS RECEIVED NOTICE AS PROVIDED
        IN THIS AGREEMENT.

      

      [Signature
        Page Follows]

      
        
          
          

        

        
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            10
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      IN
        WITNESS WHEREOF,
        the
        parties hereto have caused this Pledge Agreement to be executed and delivered
        as
        of the date first above written.

      

      
        	 	 	 	
                PLEDGOR:

              
	 	 	 	 
	 	 	 	
                HYDROGEN
                  CORPORATION

              
	 	 	 	 	 
	 	 	 	
                By:

              	/s/
                John J. Freeh 
	 	 	 	
                Name:

              	John
                J. Freeh 
	 	 	 	
                Title:

              	Chief
                Executive Officer 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
                PLEDGEE:

              
	 	 	 	 
	 	 	 	
                FEDERATED
                  KAUFMANN FUND

              
	 	 	 	
                a
                  portfolio of Federated Equity Funds

              
	 	 	 	 	 
	 	 	 	
                By:

              	/s/
                Lawrence Auriana    
	 	 	 	
                Name:

              	Lawrence
                Auriana    
	 	 	 	
                Title:
                  

              	Vice
                President
	 	 	 	 	 
	 	 	 	 	 
	
                Acknowledged
                  and Agreed:

              	 	 	 
	 	 	 	 
	
                COMPANY:

              	 	 	 
	 	 	 	 
	
                HYDROGEN,
                  L.L.C.

              	 	 	 
	 	 	 	 	 
	
                By:
                  

              	/s/
                John J. Freeh 	 	 	 
	
                Name:
                  

              	John
                J. Freeh 	 	 	 
	
                Title:
                  

              	Chief
                Executive Officer

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