Document:

PARENT GUARANTY

 Exhibit 10.1 
  
 PARENT GUARANTY 
  
 This PARENT GUARANTY (this “Guaranty”) is entered into as of May 1, 2004 by ASCENDANT SOLUTIONS, INC., a Delaware
corporation (“Parent”), in favor of and for the benefit of KEVIN J. HAYES, as administrative agent for and representative of (in such capacity herein called “Guaranteed Party”) the noteholders
(“Noteholders”) of those certain promissory notes in an aggregate principal amount of up to $6,900,000, by ASDS Orange County, Inc., a Delaware corporation and the successor corporation of the merger of Orange County Acquisition
Corp. and CRESA Partners of Orange County, Inc. (“Company”), in favor of Noteholders (said Notes, as they may hereafter be amended, supplemented or otherwise modified from time to time, being the “Notes”;
capitalized terms defined therein and not otherwise defined herein being used herein as therein defined) and in favor of and for the benefit of the other Beneficiaries (as defined below). Guaranteed Party and Noteholders are sometimes referred to
herein as “Beneficiaries”. 
  
 1. Guaranty.
(a) In order to induce Noteholders to extend credit to Company pursuant to the Notes, Parent irrevocably and unconditionally guaranties, as primary obligor and not merely as surety, the due and punctual payment in full of all Guaranteed
Obligations (as hereinafter defined) when the same shall become due, whether at stated maturity, by acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the
Bankruptcy Code, 11 U.S.C. § 362(a)). The term “Guaranteed Obligations” is used herein in its most comprehensive sense and includes any and all obligations of Company in respect of principal and interest under the Notes, and
all obligations of Parent under this Guaranty and the other Note Documents. 
  
 Parent acknowledges that the Guaranteed Obligations are being incurred for and will inure to the benefit of Parent. 
  
 Any interest on any portion of the Guaranteed Obligations that accrues after the commencement of any proceeding, voluntary or involuntary, involving the
bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of Company (or, if interest on any portion of the Guaranteed Obligations ceases to accrue by operation of law by reason of the commencement of said proceeding, such
interest as would have accrued on such portion of the Guaranteed Obligations if said proceeding had not been commenced) shall be included in the Guaranteed Obligations. 
  
 In the event that all or any portion of the Guaranteed Obligations is paid by Company, the obligations of Parent hereunder
shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) is rescinded or recovered directly or indirectly from Guaranteed Party or any other Beneficiary as a
preference, fraudulent transfer or otherwise, and any such payments that are so rescinded or recovered shall constitute Guaranteed Obligations. 
  
 Subject to the other provisions of this Section 1, upon the failure of Company to pay any of the Guaranteed Obligations when and as the same shall become

 due, Parent will upon demand pay, or cause to be paid, in cash, to Guaranteed Party for the ratable benefit of
Beneficiaries, an amount equal to the aggregate of the unpaid Guaranteed Obligations. 
  
 (b) Parent hereby acknowledges CRESA Partners of Orange County, LP, a Delaware limited liability company (“CRESA Partners”), has entered into a Subsidiary Guaranty dated as of the date hereof (the
“Subsidiary Guaranty”), whereby CRESA Partners has Guaranteed the due and punctual payment of the Guaranteed Obligations defined therein. Parent hereby further acknowledges and agrees that in the event any payment is made on any
date by CRESA Partners pursuant to the enforcement of the Subsidiary Guaranty, upon demand by CRESA Partners, following payment in full of the Guaranteed Obligations, Parent shall promptly reimburse CRESA Partners with respect to such payments in
the maximum amount permitted by law. 
  
 2. Guaranty Absolute;
Continuing Guaranty. The obligations of Parent hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than
payment in full of the Guaranteed Obligations. In furtherance of the foregoing and without limiting the generality thereof, Parent agrees that: (a) this Guaranty is a guaranty of payment when due and not of collectibility; (b) Guaranteed Party may
enforce this Guaranty upon the occurrence and during the continuance of an Event of Default under the Notes; (c) a separate action or actions may be brought and prosecuted against Parent whether or not any action is brought against Company or any of
such other guarantors and whether or not Company is joined in any such action or actions; and (d) Parent’s payment of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge Parent’s liability
for any portion of the Guaranteed Obligations that has not been paid. This Guaranty is a continuing guaranty and shall be binding upon Parent and its successors and assigns, and Parent irrevocably waives any right (including without limitation any
such right arising under California Civil Code Section 2815) to revoke this Guaranty as to future transactions giving rise to any Guaranteed Obligations. 
  
 3. Actions by Beneficiaries. Any Beneficiary may from time to time, without notice or demand and without affecting the validity or enforceability
of this Guaranty or giving rise to any limitation, impairment or discharge of Parent’s liability hereunder, (a) renew, extend, accelerate or otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations, (b) settle,
compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate the payment of the same to the payment of any other
obligations, (c) request and accept other guaranties of the Guaranteed Obligations and take and hold security for the payment of this Guaranty or the Guaranteed Obligations, (d) release, exchange, compromise, subordinate or modify, with or without
consideration, any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation of any Person with respect to the Guaranteed Obligations, (e) enforce and apply any security now or
hereafter held by or for the benefit of any Beneficiary in respect of this Guaranty or the Guaranteed Obligations and direct the order or manner of sale thereof, 
  

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 or exercise any other right or remedy that Guaranteed Party or the other Beneficiaries, or any of them, may have against
any such security, as Guaranteed Party in its discretion may determine consistent with the Notes, and any applicable security agreement, including foreclosure on any such security pursuant to one or more judicial or nonjudicial sales, and (f)
exercise any other rights available to Guaranteed Party or the other Beneficiaries, or any of them, under the Note Documents, at law or in equity. 
  
 4. No Discharge. This Guaranty and the obligations of Parent hereunder shall be valid and enforceable and shall not be subject to any limitation,
impairment or discharge for any reason (other than payment in full of the Guaranteed Obligations), including without limitation the occurrence of any of the following, whether or not Parent shall have had notice or knowledge of any of them: (a) any
failure to assert or enforce or agreement not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy with respect to
the Guaranteed Obligations or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations, (b) any waiver or modification of, or any consent to departure from, any of the terms
or provisions of the Notes, any of the other Note Documents or any agreement or instrument executed pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations, (c) the Guaranteed Obligations, or any agreement relating
thereto, at any time being found to be illegal, invalid or unenforceable in any respect, (d) the application of payments received from any source to the payment of indebtedness other than the Guaranteed Obligations, even though Guaranteed Party or
the other Beneficiaries, or any of them, might have elected to apply such payment to any part or all of the Guaranteed Obligations, (e) any failure to perfect or continue perfection of a security interest in any collateral which secures any of the
Guaranteed Obligations, and (f) any defenses or counterclaims which Company may assert against Guaranteed Party or any Beneficiary in respect of the Guaranteed Obligations, including but not limited to failure of consideration, breach of warranty,
payment, statute of frauds, statute of limitations, accord and satisfaction and usury, other than payment in full of the Guaranteed Obligations. 
  
 5. Waivers. Parent waives, for the benefit of Beneficiaries: (a) any right to require Guaranteed Party or the other Beneficiaries, as a condition
of payment or performance by Parent, to (i) proceed against Company, any other guarantor of the Guaranteed Obligations or any other Person, (ii) proceed against or exhaust any security held from Company, any other guarantor of the Guaranteed
Obligations or any other Person, (iii) proceed against or have resort to any balance of any deposit account or credit on the books of any Beneficiary in favor of Company or any other Person, or (iv) pursue any other remedy in the power of any
Beneficiary; (b) any defense arising by reason of the incapacity, lack of authority or any disability or other defense of Company including, without limitation, any defense based on or arising out of the lack of validity or the unenforceability of
the Guaranteed Obligations or any agreement or instrument relating thereto or by reason of the cessation of the liability of Company from any cause other than payment in full of the Guaranteed Obligations; (c) any defense based upon any statute or
rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense based 
  

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 upon Guaranteed Party’s or any other Beneficiary’s errors or omissions in the administration of the Guaranteed
Obligations, except behavior that amounts to bad faith; (e) (i) any principles or provisions of law, statutory or otherwise, that are or might be in conflict with the terms of this Guaranty and any legal or equitable discharge of Parent’s
obligations hereunder, other than payment in full of the Guaranteed Obligations, (ii) the benefit of any statute of limitations affecting Parent’s liability hereunder or the enforcement hereof, (iii) any recoupments and counterclaims, and (iv)
promptness, diligence and any requirement that any Beneficiary protect, secure, perfect or insure any Lien or any property subject thereto; and (f) notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any
action or inaction, including acceptance of this Guaranty, notices of default under the Notes, or any agreement or instrument related thereto, notices of any renewal, extension or modification of the Guaranteed Obligations or any agreement related
thereto, notices of any extension of credit to Company and notices of any of the matters referred to in Sections 3 and 4 and any right to consent to any thereof. 
  
 In accordance with Section 2856 of the California Civil Code Parent waives any and all rights and defenses available to
Parent by reason of Sections 2787 to 2855, inclusive, of the California Civil Code. 
  
 6. Parent’s Rights of Subrogation, Contribution, Etc.; Subordination of Other Obligations. Until the Guaranteed Obligations shall have been paid in full, Parent shall withhold exercise of (a) any claim,
right or remedy, direct or indirect, that Parent now has or may hereafter have against Company or any of its assets in connection with this Guaranty or the performance by Parent of its obligations hereunder, in each case whether such claim, right or
remedy arises in equity, under contract, by statute (including without limitation under California Civil Code Section 2847, 2848 or 2849), under common law or otherwise and including without limitation (i) any right of subrogation, reimbursement or
indemnification that Parent now has or may hereafter have against Company, (ii) any right to enforce, or to participate in, any claim, right or remedy that any Beneficiary now has or may hereafter have against Company, and (iii) any benefit of, and
any right to participate in, any collateral or security now or hereafter held by any Beneficiary and (b) any right of contribution Parent now has or may hereafter have against any other guarantor of any of the Guaranteed Obligations. Parent further
agrees that, to the extent the agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason,
any rights of subrogation, reimbursement or indemnification Parent may have against Company or against any collateral or security, and any rights of contribution Parent may have against any such other guarantor, shall be junior and subordinate to
any rights Guaranteed Party or the other Beneficiaries may have against Company, to all right, title and interest Guaranteed Party or the other Beneficiaries may have in any such collateral or security, and to any right Guaranteed Party or the other
Beneficiaries may have against such other guarantor. 
  
 Any
indebtedness or other payment obligations of Company now or hereafter held by Parent is subordinated in right of payment to the Guaranteed Obligations, and any such indebtedness of Company or any of its Subsidiaries to Parent collected or

  

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 received by Parent after an Event of Default has occurred and is continuing, and any amount paid to Parent on account of
any subrogation, reimbursement, indemnification or contribution rights referred to in the preceding paragraph when all Guaranteed Obligations have not been paid in full, shall be held in trust for Guaranteed Party on behalf of Beneficiaries and
shall forthwith be paid over to Guaranteed Party for the benefit of Beneficiaries to be credited and applied against the Guaranteed Obligations. 
  
 7. Expenses. Parent agrees to pay, or cause to be paid, on demand, and to save Guaranteed Party and the other Beneficiaries harmless against
liability for, (i) any and all costs and expenses (including fees, costs of settlement and disbursements of counsel) incurred or expended by Guaranteed Party or any other Beneficiary in connection with the enforcement of or preservation of any
rights under this Guaranty, provided that such costs shall not be payable hereunder unless there is an Event of Default under Sections 7(a), (h) or (i) of the Notes, and (ii) any and all costs and expenses required to be paid by Parent under the
provisions of any other Note Document. 
  
 8. Financial
Condition of Company. No Beneficiary shall have any obligation, and Parent waives any duty on the part of any Beneficiary, to disclose or discuss with Parent its assessment, or Parent’s assessment, of the financial condition of Company or
any matter or fact relating to the business, operations or condition of Company. Parent has adequate means to obtain information from Company on a continuing basis concerning the financial condition of Company and its ability to perform its
obligations under the Note Documents, and Parent assumes the responsibility for being and keeping informed of the financial condition of Company and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations. 

 
 9. Representations and Warranties. The representations and
warranties contained in Section 5 of that certain Parent Pledge Agreement (the “Parent Pledge Agreement”) dated as of the date hereof by and between Parent and Kevin J. Hayes as Secured Party, are incorporated herein by this
reference as they relate to this Guaranty, and are and will be true, correct and complete in all material respects on and as of the date hereof. 
  
 10. Covenants. Parent agrees that, so long as any part of the Guaranteed Obligations shall remain unpaid, Parent will, unless Requisite Noteholders
shall otherwise consent in writing, perform or observe, all of the terms, covenants and agreements that the Note Documents state that Company is to cause Parent to perform or observe. 
  
 11. Set Off. In addition to any other rights any Beneficiary may have under law or in equity, if any amount shall at
any time be due and owing by Parent to any Beneficiary under this Guaranty, such Beneficiary is authorized at any time or from time to time, without notice (any such notice being expressly waived), to set off and to appropriate and to apply any and
all deposits (general or special, including but not limited to indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness of such Beneficiary owing to Parent and any other property of Parent held by a
Beneficiary to or for the credit or the account of Parent against and on account of the Guaranteed Obligations and liabilities of Parent to any Beneficiary under this Guaranty. 
  

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 12. Amendments and Waivers. No amendment, modification, termination or waiver of any provision of
this Guaranty, and no consent to any departure by Parent therefrom, shall in any event be effective without the written concurrence of Guaranteed Party and, in the case of any such amendment or modification, Parent. Any such waiver or consent shall
be effective only in the specific instance and for the specific purpose for which it was given. 
  
 13. Miscellaneous. It is not necessary for Beneficiaries to inquire into the capacity or powers of Parent or Company or the officers, directors or
any agents acting or purporting to act on behalf of any of them. 
  
 The rights, powers and remedies given to Beneficiaries by this Guaranty are cumulative and shall be in addition to and independent of all rights, powers and remedies given to Beneficiaries by virtue of any statute or rule of law or in any
of the Note Documents or any agreement between Parent and one or more Beneficiaries or between Company and one or more Beneficiaries. Any forbearance or failure to exercise, and any delay by any Beneficiary in exercising, any right, power or remedy
hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy. 
  
 In case any provision in or obligation under this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction,
the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. 
  
 THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF PARENT, GUARANTEED PARTY
AND THE OTHER BENEFICIARIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 
  
 This Guaranty shall inure to the benefit of Beneficiaries and their
respective successors and assigns. 
  
 ALL JUDICIAL PROCEEDINGS
BROUGHT AGAINST PARENT ARISING OUT OF OR RELATING TO THIS GUARANTY MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF CALIFORNIA. WITH RESPECT TO SUCH PROCEEDINGS, PARENT ACCEPTS FOR ITSELF AND IN CONNECTION WITH
ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS GUARANTY.

  

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 Parent agrees that service of all process in any such proceeding in any such court may be made by registered or certified
mail, return receipt requested, to Parent at its address set forth below its signature hereto (or at such other address as Parent may from time to time designate (in writing) as its address for service of process), such service being acknowledged by
Parent to be sufficient for personal jurisdiction in any action against Parent in any such court and to be otherwise effective and binding service in every respect. Nothing herein shall affect the right to serve process in any other manner permitted
by law or shall limit the right of Guaranteed Party or any Beneficiary to bring proceedings against Parent in the courts of any other jurisdiction. 
  
 PARENT AND, BY ITS ACCEPTANCE OF THE BENEFITS HEREOF, GUARANTEED PARTY EACH AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS GUARANTY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT
LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. PARENT AND, BY ITS ACCEPTANCE OF THE BENEFITS HEREOF, GUARANTEED PARTY EACH (I) ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR
PARENT AND GUARANTEED PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, THAT PARENT AND GUARANTEED PARTY HAVE ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS GUARANTY OR ACCEPTING THE BENEFITS THEREOF, AS THE CASE MAY BE, AND THAT EACH WILL CONTINUE
TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS, AND (II) FURTHER WARRANTS AND REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS OF THIS GUARANTY. In the event of
litigation, this Guaranty may be filed as a written consent to a trial by the court. 
  
 14. Counterparts. This Guaranty may be executed in any number of counterparts and by the different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an
original for all purposes; but all such counterparts together shall constitute but one and the same instrument. 
  
 15. Guaranteed Party as Administrative Agent. 
  
 (a) Guaranteed Party has been appointed to act as Guaranteed Party as provided in the Notes. Guaranteed Party shall be obligated, and shall have the
right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking any action, solely in accordance with this 
  

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 Guaranty and the Notes; provided that Guaranteed Party shall exercise, or refrain from exercising, any remedies under or
with respect to this Guaranty in accordance with the instructions of Requisite Noteholders. 
  
 (b) Guaranteed Party shall at all times be the same Person that is Administrative Agent under the Notes. Written notice of resignation by Administrative Agent pursuant to Section 10 of the Notes shall also constitute
notice of resignation as Guaranteed Party under this Guaranty; removal of Administrative Agent pursuant to Section 10 of the Notes shall also constitute removal as Guaranteed Party under this Guaranty; and appointment of a successor Administrative
Agent pursuant to Section 10 of the Notes shall also constitute appointment of a successor Guaranteed Party under this Guaranty. Upon the acceptance of any appointment as Administrative Agent under Section 10 of the Notes by successor Administrative
Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Guaranteed Party under this Guaranty, and the retiring or removed Guaranteed Party
under this Guaranty shall promptly (i) transfer to such successor Guaranteed Party all sums held hereunder, together with all records and other documents necessary or appropriate in connection with the performance of the duties of the successor
Guaranteed Party under this Guaranty, and (ii) take such other actions as may be necessary or appropriate in connection with the assignment to such successor Guaranteed Party of the rights created hereunder, whereupon such retiring or removed
Guaranteed Party shall be discharged from its duties and obligations under this Guaranty. After any retiring or removed Guaranteed Party’s resignation or removal hereunder as Guaranteed Party, the provisions of this Guaranty shall inure to its
benefits as to any actions taken or omitted to be taken by it under this Guaranty while it was Guaranteed Party hereunder. 
  
 16. Further Assurances. In the event that the Guaranteed Obligations are refinanced as contemplated by Section 4(i) of the Notes, Parent hereby
agrees to guarantee such obligations as required by the lender or lenders providing such refinancing; provided, however, nothing contained in this Section 16 will obligate Parent to pledge any collateral in addition to that
contemplated by the Parent Pledge Agreement or to guarantee indebtedness in excess of that existing under the Notes immediately prior the consummation of such refinancing. 
  
 17. Exceptions. Notwithstanding any other provision of this Guaranty, (i) subject to the provisions of the fourth
paragraph of Section 1(a) of this Guaranty, any payment made with respect to the Guaranteed Obligations will be credited against and will reduce the amount of the Guaranteed Obligations and (ii) upon the exercise by Secured Party (as defined in the
Parent Pledge Agreement) of the voting rights granted to Secured Party pursuant to Section 8 of the Parent Pledge Agreement, the Guaranteed Obligations will not be increased by any subsequent increase in the principal balance of the Notes or any new
indebtedness for borrowed money. 
  
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intentionally left blank] 
  

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 IN WITNESS WHEREOF, Parent and, solely for purposes of the waiver of the right to jury trial
contained in Section 13, Guaranteed Party have caused this Guaranty to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above. 
  

			
	ASCENDANT SOLUTIONS, INC.
		
	 By:
	 	 /s/  David E. Bowe

	 Name: David E. Bowe

	Title: Chief Executive Officer, President and
Chief Financial Officer
	
	 Address:

	
	 16250 Dallas Parkway

	 Suite 102

	 Dallas, TX 75248

	 Attn: David Bowe

	 Telecopy: (972) 250-0934

	
	 with a copy (which shall not constitute notice) to:

	
	 Winstead Sechrest & Minick P.C.

	 5400 Renaissance Tower

	 1201 Elm Street

	 Dallas, Texas 75270

	 Attn: Thomas R. Helfand

	 Telecopy: (214) 745-5390

  

 S-1 

			
	KEVIN J. HAYES, as Guaranteed Party
		
	 By:
	 	 /s/ Kevin J. Hayes

	 	 	     Kevin J. Hayes

	
	 Address:

	
	 Kevin J. Hayes

	 610 Newport Center Drive

	 5th Floor

	 Newport Beach, CA 92660

	
	 with a copy (which shall not constitute notice) to:

	
	 Gary J. Singer, Esq.

	 O’Melveny & Myers LLP

	 610 Newport Center Drive

	 Suite 1700

	 Newport Beach, CA 92660

	 Telecopy: (949) 823-6994

  

 S-2PARENT PLEDGE AGREEMENT

 Exhibit 10.2 
 PARENT PLEDGE AGREEMENT 
  
 This PARENT PLEDGE AGREEMENT (this “Agreement”) is dated as of May 1, 2004 and entered into by and between ASCENDANT SOLUTIONS, INC., a Delaware corporation (“Pledgor”), and KEVIN J. HAYES
(“Hayes”), as administrative agent for and representative of (in such capacity herein called “Secured Party”) the Noteholders (as hereinafter defined). 
  
 PRELIMINARY STATEMENTS 
  
 A. Pledgor is the legal and beneficial owner of the shares of stock of ASDS
of Orange County, Inc., a Delaware corporation and the successor corporation of the merger of Orange County Acquisition Corp. and CRESA Partners of Orange County, Inc. (“Company”), described in Schedule I annexed hereto.

  
 B. Pursuant to the Stock Purchase Agreement dated as of March
23, 2004 (said Stock Purchase Agreement, as it may hereafter be amended, restated, supplemented or otherwise modified from time to time, being the “Stock Purchase Agreement”) between Company’s predecessor, Orange County
Acquisition Corp., a Delaware corporation (“Purchaser”), and Hayes. The Purchaser has agreed to issue that certain promissory note dated as of the date hereof in the aggregate principal amount of $6,900,000 in favor of Hayes in his
capacity as a Noteholder (the “Initial Noteholder”) (said note, as amended, restated, supplemented or otherwise modified from time to time, the “Initial Note” and the Initial Note and any and all other promissory
notes issued from time to time as contemplated by the Initial Note and the other Note Documents (as defined herein), as amended, restated, supplemented or otherwise modified from time to time, the “Notes”)). Purchaser has been
merged with CRESA Partners of Orange County, Inc., with Company as the surviving corporation, and Company is obligated to issue the Notes. Each holder of a Note from time to time is referred to herein individually as a Noteholder and collectively as
the “Noteholders”. 
  
 C. Pledgor has executed
and delivered that certain Parent Guaranty dated as of the date hereof (said Parent Guaranty, as it may hereafter be amended, restated, supplemented, or otherwise modified from time to time, the “Parent Guaranty”), in favor of
Secured Party for the benefit of Noteholders, pursuant to which Pledgor has guaranteed the prompt payment and performance when due of all obligations of Company under the Notes and the other Note Documents. 
  
 D. It is a condition precedent to the acceptance of the Initial Note by the
Initial Noteholder that Pledgor shall have granted the security interests and undertaken the obligations contemplated by this Agreement. 
  
 NOW, THEREFORE, in consideration of the agreements set forth herein and in order to induce the Initial Noteholder to accept the Initial Note,
Pledgor hereby agrees with Secured Party as follows: 

 SECTION 1. Pledge of Security. Pledgor hereby pledges and assigns to Secured Party, and
hereby grants to Secured Party a security interest in, all of Pledgor’s right, title and interest in and to the following (the “Pledged Collateral”): 
  
 (a) all shares of stock of Company owned on the date hereof and described in Schedule I, and the certificates or
other instruments representing any of the foregoing (the “Pledged Shares”), and all dividends, distributions, returns of capital, cash, warrants, options, rights, instruments, right to vote or manage the business of Company pursuant
to organizational documents governing the rights and obligations of the stockholders, and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Pledged Shares;

  
 (b) to the extent not covered by clause (a) above, all
proceeds of any or all of the foregoing Pledged Collateral. For purposes of this Agreement, the term “proceeds” includes whatever is receivable or received when Pledged Collateral or proceeds are sold, exchanged, collected or
otherwise disposed of, whether such disposition is voluntary or involuntary, and includes, without limitation, proceeds of any indemnity or guaranty payable to Pledgor or Secured Party from time to time with respect to any of the Pledged Collateral.

  
 SECTION 2. Security for Obligations. This
Agreement secures, and the Pledged Collateral is collateral security for, the prompt payment in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts that
would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. §362(a)), of all obligations and liabilities of every nature of Pledgor now or hereafter existing under this Agreement or the
Parent Guaranty (including without limitation interest that, but for the filing of a petition in bankruptcy with respect to Pledgor, would accrue on such obligations, whether or not a claim is allowed against Pledgor for such interest in the related
bankruptcy proceeding), whether voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and all or any portion of such obligations or liabilities that are paid, to
the extent all or any part of such payment is avoided or recovered directly or indirectly from Secured Party or any Noteholder as a preference, fraudulent transfer or otherwise, and all obligations of every nature of Pledgor now or hereafter
existing under this Agreement (all such obligations of Pledgor being the “Secured Obligations”); provided, however, upon the exercise by Secured Party of the voting rights granted to Secured Party pursuant to Section
8(c), the Secured Obligations will not be increased by any subsequent increase in the principal balance of the Notes or any new indebtedness for borrowed money. 
  

SECTION 3. No Assumption. Notwithstanding any of the foregoing, this Agreement shall not in any way be deemed to obligate Secured Party
or any purchaser at a foreclosure sale under this Agreement to assume Pledgor’s obligations, duties, expenses or liabilities under the Notes or any other Note Document or under any and all other agreements now existing or hereafter drafted or
executed (collectively, the “Grantor Obligations”) unless Secured Party or any such purchaser otherwise expressly agrees to assume any or all of said Grantor Obligations in writing. In the event of foreclosure by Secured Party,
Pledgor shall remain bound and obligated to perform the Grantor Obligations and Secured Party shall not be deemed to have assumed any of such Grantor Obligations except as provided in the preceding sentence. 
  

 2 

 SECTION 4. Delivery of Pledged Collateral. All certificates or instruments representing or
evidencing the Pledged Collateral shall be delivered to and held by or on behalf of Secured Party pursuant hereto and shall be in suitable form for transfer by delivery or, as applicable, shall be accompanied by Pledgor’s endorsement, where
necessary, or duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to Secured Party. Upon the occurrence and during the continuation of an Event of Default (as defined in Section 12), Secured Party
shall have the right, without notice to Pledgor, to transfer to or to register in the name of Secured Party or any of its nominees any or all of the Pledged Collateral, subject to the revocable rights specified in Section 8(a). In addition, Secured
Party shall have the right at any time to exchange certificates or instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller or larger denominations. 
  
 SECTION 5. Representations and Warranties. Pledgor represents
and warrants as follows: 
  
 (a) Due Authorization, etc. of
Pledged Collateral. All of the Pledged Shares have been duly authorized and validly issued and are fully paid and non-assessable. 
  
 (b) Description of Pledged Collateral. The Pledged Shares constitute the percentage of the issued and outstanding shares of stock of each issuer
thereof indicated on Schedule I hereto, and there are no outstanding warrants, options or other rights to purchase, or other agreements outstanding with respect to, or property that is now or hereafter convertible into, or that requires the
issuance or sale of, any Pledged Shares. Schedule I sets forth all of the Pledged Shares owned by Pledgor on the date hereof. 
  
 (c) Ownership of Pledged Collateral. Pledgor is the legal, record and beneficial owner of the Pledged Collateral free and clear of any Lien except
for Permitted Liens. 
  
 (d) Due Authorization, etc.
Pledgor is duly formed, validly existing and in good standing under the law of its jurisdiction of organization and has full entity power and authority to execute, deliver and perform this Agreement. The execution, delivery and performance of this
Agreement has been duly authorized by all necessary entity action. This Agreement constitutes a legally valid and binding obligation of Pledgor, enforceable against Pledgor in accordance with its terms, except as enforcement hereof may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally or by general equitable principles. 
  
 (e) Governmental Authorizations. No authorization, approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for either (i) the pledge by Pledgor of the Pledged Collateral pursuant to this Agreement and the grant by Pledgor of the security interest granted hereby, (ii) the execution, delivery or
performance of this Agreement by Pledgor, or (iii) the exercise by Secured Party 
  

 3 

 of the voting or other rights, or the remedies in respect of the Pledged Collateral, provided for in this Agreement
(except as may be required in connection with a disposition of Pledged Collateral by laws affecting the offering and sale of securities generally). 
  
 (f) Perfection. The pledge of the Pledged Collateral pursuant to this Agreement creates a valid and perfected first priority security interest in
the Pledged Collateral, securing the payment of the Secured Obligations. 
  
 SECTION 6. Transfers and Other Liens; Additional Pledged Collateral; etc. 
  
 Pledgor shall: 
  
 (a) not (i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, any of the Pledged Collateral,
(ii) create or suffer to exist any Lien upon or with respect to any of the Pledged Collateral, except for Liens permitted by the Notes, or (iii) permit any issuer of Pledged Shares to merge or consolidate unless a percentage of the outstanding
capital stock of the surviving or resulting corporation equal to or greater than the percentage of outstanding shares the issuer thereof pledged hereunder is, upon such merger or consolidation, pledged hereunder and no cash, securities or other
property is distributed in respect of the outstanding shares of any other constituent corporation; 
  
 (b) (i) cause each issuer of Pledged Shares not to issue any stock or other securities in addition to or in substitution for the Pledged Shares issued by
such issuer, except to Pledgor, and (ii) pledge hereunder, immediately upon its acquisition (directly or indirectly) thereof, any and all additional shares of stock or other securities of each issuer of Pledged Shares; and 
  
 (c) pay promptly when due all material taxes, assessments and governmental
charges or levies imposed upon, and all claims against, the Pledged Collateral, except to the extent the validity thereof is being contested in good faith; provided that Pledgor shall in any event pay such taxes, assessments, charges, levies
or claims not later than five days prior to the date of any proposed sale under any judgement, writ or warrant of attachment entered or filed against Pledgor or any of the Pledged Collateral as a result of the failure to make such payment.

  
 SECTION 7. Further Assurances; Pledge
Amendments. 
  
 (a) Pledgor agrees that from time
to time, at the expense of Pledgor, Pledgor will promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary, or as Secured Party may reasonably request, in order to perfect and protect any
security interest granted or purported to be granted hereby or to enable Secured Party to exercise and enforce its rights and remedies hereunder with respect to any Pledged Collateral. Without limiting the generality of the foregoing, Pledgor will:
(i) execute (if necessary) and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary, or as Secured Party may reasonably request, in order to perfect and preserve the
security interests granted or purported 
  

 4 

 to be granted hereby and (ii) at Secured Party’s request, appear in and defend any action or proceeding that may
affect Pledgor’s title to or Secured Party’s security interest in all or any part of the Pledged Collateral. Pledgor hereby authorizes Secured Party to file one or more financing or continuation statements, and amendments thereto, relative
to all or any part of the Pledged Collateral without the signature of Pledgor. 
  
 (b) Pledgor further agrees that it will, upon obtaining any additional shares of stock or other securities required to be pledged hereunder as provided in Section 6(b), promptly (and in any event within five Business
Days) deliver to Secured Party a Pledge Amendment, duly executed by Pledgor, in substantially the form of Schedule II annexed hereto (a “Pledge Amendment”), in respect of the additional Pledged Shares to be pledged pursuant
to this Agreement. Upon each delivery of a Pledge Amendment to Secured Party, the representations and warranties contained in Section 5 hereof shall be deemed to have been made by Pledgor as to the Pledged Collateral described in such Pledge
Amendment. Pledgor hereby authorizes Secured Party to attach each Pledge Amendment to this Agreement and agrees that all Pledged Shares listed on any Pledge Amendment delivered to Secured Party shall for all purposes hereunder be considered Pledged
Collateral; provided that the failure of Pledgor to execute a Pledge Amendment with respect to any additional Pledged Shares pledged pursuant to this Agreement shall not impair the security interest of Secured Party therein or otherwise
adversely affect the rights and remedies of Secured Party hereunder with respect thereto. 
  
 SECTION 8. Voting Rights; Dividends; Etc. 
  
 (a) So long as no Event of Default shall have occurred and be continuing: 
  
 (i) Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral or any part
thereof for any purpose not inconsistent with the terms of this Agreement or the other Note Documents. It is understood, however, that neither (A) the voting by Pledgor of any Pledged Shares for or Pledgor’s consent to the election of directors
at a regularly scheduled annual or other meeting of stockholders or with respect to incidental matters at any such meeting nor (B) Pledgor’s consent to or approval of any action otherwise permitted under this Agreement and the other Note
Documents shall be deemed inconsistent with the terms of this Agreement or the other Note Documents within the meaning of this Section 8(a)(i), and no notice of any such voting or consent need be given to Secured Party; 
  
 (ii) Pledgor shall be entitled to receive and retain, and to
utilize free and clear of the lien of this Agreement, any and all dividends, other distributions and interest and principal paid in respect of the Pledged Collateral; provided, however, that any and all 
  
 (A) dividends, other distributions and interest paid or
payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Pledged Collateral; and 
  

 5 

 (B) dividends and other distributions paid or payable in cash in respect of any Pledged
Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus, 
  

shall be, and shall forthwith be delivered to Secured Party to hold as, Pledged Collateral and shall, if received by Pledgor, be received in trust for
the benefit of Secured Party, be segregated from the other property or funds of Pledgor and be forthwith delivered to Secured Party as Pledged Collateral in the same form as so received (with all necessary indorsements); and 
  
 (iii) Secured Party shall promptly execute and deliver (or
cause to be executed and delivered) to Pledgor all such proxies, dividend payment orders and other instruments as Pledgor may from time to time reasonably request for the purpose of enabling Pledgor to exercise the voting and other consensual rights
which it is entitled to exercise pursuant to paragraph (i) above and to receive the dividends, other distributions, principal or interest payments which it is authorized to receive and retain pursuant to paragraph (ii) above. 
  
 (b) Upon the occurrence and during the continuation of an Event of Default:

  
 (i) upon written notice from Secured Party to
Pledgor, all rights of Pledgor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to Section 8(a)(i) shall cease, and all such rights shall thereupon become vested in Secured Party who shall
thereupon have the sole right to exercise such voting and other consensual rights; 
  
 (ii) all rights of Pledgor to receive the dividends, other distributions and interest payments which it would otherwise be authorized to
receive and retain pursuant to Section 8(a)(ii) shall cease, and all such rights shall thereupon become vested in Secured Party who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, other distributions and
interest payments; and 
  
 (iii) all dividends,
principal, interest payments and other distributions which are received by Pledgor contrary to the provisions of paragraph (ii) of this Section 8(b) shall be received in trust for the benefit of Secured Party, shall be segregated from other funds of
Pledgor and shall forthwith be paid over to Secured Party as Pledged Collateral in the same form as so received (with any necessary indorsements). 
  
 (c) In order to permit Secured Party to exercise the voting and other consensual rights which it may be entitled to exercise pursuant to
Section 8(b)(i) and to receive all dividends and other distributions which it may be entitled to receive under Section 8(a)(ii) or Section 8(b)(ii), (i) Pledgor shall promptly execute and deliver (or cause to be executed and delivered) to Secured
Party all such proxies, dividend payment orders and other instruments as Secured Party may from time to 
  

 6 

 time reasonably request and (ii) without limiting the effect of the immediately preceding clause (i),
Pledgor hereby grants to Secured Party an irrevocable proxy to vote the Pledged Shares and to exercise all other rights, powers, privileges and remedies to which a holder of the Pledged Shares would be entitled (including, without limitation, giving
or withholding written consents of shareholders, calling special meetings of shareholders and voting at such meetings), which proxy shall be effective, automatically and without the necessity of any action (including any transfer of any Pledged
Shares on the record books of the issuer thereof) by any other Person (including the issuer of the Pledged Shares or any officer or agent thereof), upon the occurrence of an Event of Default and which proxy shall only terminate upon the payment in
full of the Secured Obligations, the cure of such Event of Default or waiver thereof as evidenced by a writing executed by Secured Party. 
  
 SECTION 9. Secured Party Appointed Attorney-in-Fact. Pledgor hereby irrevocably appoints Secured Party as Pledgor’s attorney-in-fact,
with full authority in the place and stead of Pledgor and in the name of Pledgor, Secured Party or otherwise, from time to time in Secured Party’s discretion to take any action and to execute any instrument that Secured Party may deem necessary
or advisable to accomplish the purposes of this Agreement, including without limitation: 
  
 (a) upon the occurrence and during the continuance of an Event of Default, to obtain and adjust insurance required to be maintained by Pledgor; 
  
 (b) upon the occurrence and during the continuance of an Event of Default, to ask, demand, collect, sue for, recover,
compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Pledged Collateral; 
  
 (c) upon the occurrence and during the continuance of an Event of Default, to receive, endorse and collect any instruments made payable to Pledgor
representing any dividend, principal or interest payment or other distribution in respect of the Pledged Collateral or any part thereof and to give full discharge for the same; 
  
 (d) upon the occurrence and during the continuance of an Event of Default, to file any claims or take any action or
institute any proceedings that Secured Party may deem necessary or desirable for the collection of any of the Pledged Collateral or otherwise to enforce the rights of Secured Party with respect to any of the Pledged Collateral; 
  
 (e) to pay or discharge taxes or Liens (other than Liens permitted under this
Agreement or the Notes) levied or placed upon or threatened against the Pledged Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by Secured Party in its sole discretion, any such payments
made by Secured Party to become obligations of Pledgor to Secured Party, due and payable immediately without demand; and 
  
 (f) upon the occurrence and during the continuance of an Event of Default, but in compliance with the provisions of Section 12, generally to sell,
transfer, pledge, make any agreement with respect to or otherwise deal with any of the Pledged Collateral as fully 
  

 7 

 and completely as though Secured Party were the absolute owner thereof for all purposes, and to do, at Secured
Party’s option and Pledgor’s expense, at any time or from time to time, all acts and things that Secured Party deems necessary to protect, preserve or realize upon the Pledged Collateral and Secured Party’s security interest therein
in order to effect the intent of this Agreement, all as fully and effectively as Pledgor might do. 
  
 SECTION 10. Secured Party May Perform. If Pledgor fails to perform any agreement contained herein, Secured Party may itself perform, or
cause performance of, such agreement, and the expenses of Secured Party incurred in connection therewith shall be payable by Pledgor under Section 12(b) hereof. 
  

SECTION 11. Standard of Care. The powers conferred on Secured Party hereunder are solely to protect its interest in the Pledged
Collateral and shall not impose any duty upon it to exercise any such powers. Except for the exercise of reasonable care in the custody of any Pledged Collateral in its possession and the accounting for moneys actually received by it hereunder,
Secured Party shall have no duty as to any Pledged Collateral, it being understood that Secured Party shall have no responsibility for (a) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other
matters relating to any Pledged Collateral, whether or not Secured Party has or is deemed to have knowledge of such matters, (b) taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain
possession of the Pledged Collateral) to preserve rights against any prior parties or any other rights pertaining to any Pledged Collateral, (c) taking any necessary steps to collect or realize upon the Secured Obligations or any guarantee therefor,
or any part thereof, or any of the Pledged Collateral, or (d) initiating any action to protect the Pledged Collateral against the possibility of a decline in market value. Secured Party shall be deemed to have exercised reasonable care in the
custody and preservation of Pledged Collateral in its possession if such Pledged Collateral is accorded treatment substantially equal to that which Secured Party accords its own property consisting of negotiable securities. 
  
 SECTION 12. Remedies. 
  
 (a) If any Event of Default (as defined in the Notes, an “Event of
Default” for purposes of this Agreement) shall have occurred and be continuing, Secured Party may exercise in respect of the Pledged Collateral, in addition to all other rights and remedies provided for herein or otherwise available to it,
all the rights and remedies of a secured party on default under the UCC (whether or not the UCC applies to the affected Pledged Collateral), and Secured Party may also in its sole discretion, without notice except as specified below, sell the
Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange or broker’s board or at any of Secured Party’s offices or elsewhere, for cash, on credit or for future delivery, at such time or times
and at such price or prices and upon such other terms as are commercially reasonable for any such sale. Secured Party may be the purchaser of any or all of the Pledged Collateral at any such sale and Secured Party shall be entitled, for the purpose
of bidding and making settlement or payment of the purchase price for all or any portion of the Pledged Collateral sold at any such public sale, to use and apply any of the Secured Obligations as a credit on account of the purchase price for any
Pledged Collateral payable by Secured Party at such sale. Each 
  

 8 

 purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of Pledgor,
and Pledgor hereby waives (to the fullest extent permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.
Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable
notification. Secured Party shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given. Secured Party may adjourn any public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. Pledgor hereby waives any claims against Secured Party arising by reason of the fact that the price at which any Pledged
Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale. If the proceeds of any sale or other disposition of the Pledged Collateral are insufficient to pay all the Secured
Obligations, Pledgor shall be liable for the deficiency and the fees of any attorneys employed by Secured Party to collect such deficiency. 
  
 (b) Pledgor recognizes that, by reason of certain prohibitions contained in the Securities Act of 1933, as from time to time amended (the
“Securities Act”), and applicable state securities laws, Secured Party may be compelled, with respect to any sale of all or any part of the Pledged Collateral conducted without prior registration or qualification of such Pledged
Collateral under the Securities Act and/or such state securities laws, to limit purchasers to those who will agree, among other things, to acquire the Pledged Collateral for their own account, for investment and not with a view to the distribution
or resale thereof. Pledgor acknowledges that any such private sales may be at prices and on terms less favorable than those obtainable through a public sale without such restrictions (including a public offering made pursuant to a registration
statement under the Securities Act) and, notwithstanding such circumstances, Pledgor agrees that sales made in compliance with such requirements will not (because of such compliance) be deemed to be commercially unreasonable and that Secured Party
shall have no obligation to engage in public sales and no obligation to delay the sale of any Pledged Collateral for the period of time necessary to permit the issuer thereof to register it for a form of public sale requiring registration under the
Securities Act or under applicable state securities laws, even if such issuer would, or should, agree to so register it. 
  
 (c) If Secured Party determines to exercise its right to sell any or all of the Pledged Collateral, upon written request, Pledgor shall and shall use
commercially reasonable efforts to cause each issuer of any Pledged Shares to be sold hereunder from time to time to furnish to Secured Party all such information as Secured Party may request in order to determine the number of shares and other
instruments included in the Pledged Collateral which may be sold by Secured Party in exempt transactions under the Securities Act and the rules and regulations of the Securities and Exchange Commission thereunder, as the same are from time to time
in effect. 
  

 9 

 SECTION 13. Application of Proceeds. Except as expressly provided elsewhere in this
Agreement, all proceeds received by Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied in the following order of priority: 
  
 FIRST: To the payment of all costs and expenses of such
sale, collection or other realization, including reasonable compensation to Secured Party and its agents and counsel, and all other expenses, liabilities and advances made or incurred by Secured Party in connection therewith, and all amounts for
which Secured Party is entitled to indemnification hereunder and all advances made by Secured Party hereunder for the account of Pledgor, and to the payment of all costs and expenses paid or incurred by Secured Party in connection with the exercise
of any right or remedy hereunder; 
  
 SECOND: To
the payment of all other Secured Obligations (for the ratable benefit of the holders thereof); and 
  
 THIRD: To the payment to or upon the order of Pledgor, or to whosoever may be lawfully entitled to receive the same or as a court of
competent jurisdiction may direct, of any surplus then remaining from such proceeds. 
  
 SECTION 14. Expenses. Pledgor shall pay to Secured Party upon demand the amount of any and all costs and expenses, including the fees and expenses of its counsel and of any experts and agents, that
Secured Party may incur in connection with (i) the administration of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Pledged Collateral, (iii) the exercise or enforcement of
any of the rights of Secured Party hereunder, provided that such costs shall not be payable hereunder unless there is an Event of Default under Sections 7(a), (h) or (i) of the Notes, or (iv) the failure by Pledgor to perform or observe any of the
provisions hereof. 
  
 SECTION 15. Continuing
Security Interest; Transfer of Loans. This Agreement shall create a continuing security interest in the Pledged Collateral and shall (a) remain in full force and effect until the payment in full of all Secured Obligations, (b) be binding
upon Pledgor, its successors and assigns, and (c) inure, together with the rights and remedies of Secured Party hereunder, to the benefit of Secured Party and its successors, transferees and assigns. Without limiting the generality of the foregoing
clause (c), Secured Party or any other Noteholder may assign or otherwise transfer the Note held by it to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to Secured Party herein
or otherwise. Upon the payment in full of all Secured Obligations, the security interest granted hereby shall terminate and all rights to the Pledged Collateral shall revert to Pledgor. Upon any such termination Secured Party will, at Pledgor’s
expense, execute and deliver to Pledgor such documents as Pledgor shall reasonably request to evidence such termination and Pledgor shall be entitled to the return, upon its request and at its expense, against receipt and without recourse to Secured
Party, of such of the Pledged Collateral as shall not have been sold or otherwise applied pursuant to the terms hereof. 
  
 SECTION 16. Amendments; Etc. No amendment, modification, termination or waiver of any provision of this Agreement, and no consent to any
departure by 
  

 10 

 Pledgor therefrom, shall in any event be effective unless the same shall be in writing and signed by Secured Party and,
in the case of any such amendment or modification, by Pledgor. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. 
  
 SECTION 17. Notices. Any notice or other communication herein
required or permitted to be given shall be in writing and may be personally served, telexed or sent by telefacsimile or United States mail or courier service and shall be deemed to have been given when delivered in person or by courier service, upon
receipt of telefacsimile or telex, or three Business Days after depositing it in the United States mail with postage prepaid and properly addressed; provided that notices to Secured Party shall not be effective until received. For the
purposes hereof, the address of each party hereto shall be set forth under such party’s name on the signature pages hereof or such other address as shall be designated by such party in a written notice delivered to the other parties hereto.

  
 SECTION 18. Failure or Indulgence Not Waiver; Remedies
Cumulative. No failure or delay on the part of Secured Party in the exercise of any power, right or privilege hereunder shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor
shall any single or partial exercise of any such power, right or privilege preclude any other or further exercise thereof or of any other power, right or privilege. All rights and remedies existing under this Agreement are cumulative to, and not
exclusive of, any rights or remedies otherwise available. 
  
 SECTION 19 Severability. In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. 
  
 SECTION 20. Headings. Section and subsection headings in this Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given any substantive effect. 
  
 SECTION 21. Governing Law; Rules of Construction. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA (INCLUDING, WITHOUT LIMITATION, SECTION 1646.5 OF THE CIVIL CODE OF THE STATE OF CALIFORNIA), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, EXCEPT TO THE EXTENT THAT THE UCC PROVIDES THAT THE
PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF CALIFORNIA, IN WHICH CASE THE LAWS OF SUCH JURISDICTION SHALL GOVERN
WITH RESPECT TO THE PERFECTION OF THE SECURITY INTEREST IN, OR THE REMEDIES WITH RESPECT TO, SUCH PARTICULAR COLLATERAL. 
  

 11 

 SECTION 22. Consent to Jurisdiction and Service of Process. ALL JUDICIAL PROCEEDINGS
BROUGHT AGAINST PLEDGOR ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY OBLIGATIONS HEREUNDER, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF CALIFORNIA. WITH RESPECT TO SUCH PROCEEDINGS, PLEDGOR, FOR
ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (I) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (II) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (III) AGREES THAT SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO PLEDGOR AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 17 HEREOF; (IV) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (III)
ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER SUCH GRANTOR IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; (V) AGREES THAT SECURED PARTY RETAINS THE RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST PLEDGOR IN THE COURTS OF ANY OTHER JURISDICTION; AND (VI) AGREES THAT THE PROVISIONS OF THIS SECTION 22 RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE
TO THE FULLEST EXTENT PERMISSIBLE UNDER CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 410.40 OR OTHERWISE. 
  
 SECTION 23. Waiver of Jury Trial. PLEDGOR AND SECURED PARTY HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING,
WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. 
  
 SECTION 24. Counterparts. This Agreement may be executed in one or more counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and
attached to a single counterpart so that all signature pages are physically attached to the same document. 
  
 [Remainder of page intentionally left blank] 
  

 12 

 IN WITNESS WHEREOF, Pledgor and Secured Party have caused this Agreement to be duly executed and
delivered by their respective officers thereunto duly authorized as of the date first written above. 
  

			
	ASCENDANT SOLUTIONS, INC., as Pledgor
		
	 By:
	 	 /s/ David E. Bowe

	 Name: David E. Bowe

	 Title: Chief Executive Officer, President and
 Chief Financial Officer

	
	 Address:

	
	 16250 Dallas Parkway

	 Suite 102

	 Dallas, TX 75248

	 Attn: David Bowe

	 Telecopy: (972) 250-0934

	
	 with a copy (which shall not constitute notice) to:

	
	 Winstead Sechrest & Minick P.C.

	 5400 Renaissance Tower

	 1201 Elm Street

	 Dallas, Texas 75270

	 Attn: Thomas R. Helfand

	 Telecopy: (214) 745-5390

  

 S-1 

			
	KEVIN J. HAYES, as administrative agent, as
Secured Party
		
	 By:
	 	 /s/ Kevin J. Hayes

	       Kevin J. Hayes

	
	 Address:

	
	 610 Newport Center Drive

	 5th Floor

	 Newport Beach, CA 92660-6429

	
	 with a copy (which shall not constitute notice) to:

	
	 Gary J. Singer, Esq.

	 O’Melveny & Myers LLP

	 610 Newport Center Drive

	 Suite 1700

	 Newport Beach, CA 92660

	 Telecopy: (949) 823-6994

  

 S-2 

 SCHEDULE I 
  

Attached to and forming a part of the Parent Pledge Agreement dated as of May 1, 2004 between ASCENDANT SOLUTIONS, INC. and KEVIN J.
HAYES., as Secured Party. 
  

											
	 Stock Issuer

	    	 Class
 of Stock or Equity
 Interest

	    	 Stock
 Certificate
 Nos.

	    	 Par
 Value

	    	 Number of
 Shares

	    	 Percentage of
 Outstanding
 Shares Pledged

	 ASDS of Orange County, Inc.
	    	Common	    	2	    	$0.01	    	100	    	100%

  

 SCHEDULE I-1 

 SCHEDULE II 
  
 PLEDGE AMENDMENT 
  
 This Pledge Amendment, dated
                    ,         , is delivered pursuant to Section 7(b) of the Parent Pledge
Agreement referred to below. The undersigned hereby agrees that this Pledge Amendment may be attached to the Parent Pledge Agreement dated May 1, 2004, between ASCENDANT SOLUTIONS, INC. and KEVIN J. HAYES, as Secured Party (the
“Parent Pledge Agreement,” capitalized terms defined therein being used herein as therein defined), and that the Pledged Shares listed on this Pledge Amendment shall be deemed to be part of the Pledged Shares and shall become part
of the Pledged Collateral and shall secure all Secured Obligations. 
  

			
	ASCENDANT SOLUTIONS, INC.
		
	 By:
	 	  

	 Name:

	 Title:

  

									
	 Stock Issuer

	 	 Class of Stock or
 other equity interests

	 	 Stock Certi-
 ficate Nos.

	 	 Par
 Value

	 	 Number of
 Shares

  

 SCHEDULE II-1

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