Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.17

August 15, 2007

Professional Offshore Opportunity Fund, Ltd.

1400 Old Country Road

Suite 206

Westbury, New York 11590

Gentlemen:

Simultaneously with the execution and delivery of this letter (this “Agreement”), the
undersigned, Amerex Group, Inc., a Delaware corporation (the “Borrower”), is executing and
delivering to Professional Offshore Opportunity Fund, Ltd. (the “Lender”) that certain Secured
Promissory Note dated the date hereof in the principal amount of $750,000 (the “Note”) to evidence
the loan (the “Loan”) made by the Lender to the Borrower. The purpose of this Agreement is to
reflect certain agreements regarding the 500,000 shares of common stock of the Borrower (the
“Shares”) being issued to the Lender by the Borrower simultaneously herewith as further
consideration for, and as further inducement to the Lender to make, the Loan.

1. Simultaneously with the execution and delivery of this Agreement, the Borrower is issuing
the Shares to the Lender evidenced by duly issued stock certificates number 101580. All Shares
delivered to the Lender shall be duly authorized, fully paid and nonassessable, free and clear of
any liens and in proper certificated form in the name of Professional Offshore Opportunity Fund,
Ltd., and shall be issued in compliance with all applicable federal and state securities laws.

2. In the event that upon the earlier of (i) the Maturity Date or (ii) the date on which the
Borrower prepays all amounts owing under the Note, the Shares are not unrestricted and free
trading, then the Borrower shall, promptly upon the demand of the Lender, repurchase the Shares for
the amount set forth below:

	 	 	 	 	 
	Date of Payment of Note	 	Share Repurchase Amount	 
	On or before September 14, 2007
	 	$	200,000	 
	 
	 	 	 	 
	On September 15, 2007 but before October 14, 2007
	 	$	300,000	 
	 
	 	 	 	 
	On October 15, 2007 but before November 14, 2007
	 	$	400,000	 
	 
	 	 	 	 
	On November 15, 2007 but before
December 14, 2007
	 	$	500,000	 
	 
	 	 	 	 
	On December 15, 2007 but before
January 14, 2008
	 	$	600,000	 
	 
	 	 	 	 
	On or after January 15, 2008, or at any time
in the event of a material breach of the Note,
	 	$	700,000	 

 

 

 

Professional Offshore Opportunity Fund, Ltd.

August 14, 2007

Page -2-

In the event of a failure of the Borrower to repurchase the Shares and pay amounts owing hereunder,
the amounts owing shall bear interest at a rate of two percent (2%) per month until paid.

The Borrower hereby represents and warrants to the Lender the following:

(a) Power. The Borrower (i) is duly organized, validly existing and in good standing
under the laws of Delaware and (ii) has all requisite power and authority to execute and deliver
this Agreement and to consummate the transactions described herein.

(b) Authorization; Binding Effect. The execution and delivery by the Borrower of this
Agreement and the Note, the performance by the Borrower of its obligations under this Agreement and
the Note and the consummation of the transactions described herein and therein by the Borrower have
been duly authorized by all requisite action on the part of the Borrower. This Agreement and the
Note are the legal, valid and binding obligations of the Borrower enforceable against the Borrower
in accordance with their respective terms, except that such enforcement (i) may be limited by
bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally and (ii)
is subject to the availability of equitable remedies, as determined in the discretion of the court
before which such a proceeding may be brought.

(c) Contravention. Neither the execution, delivery and performance of this Agreement
or the Note by the Borrower nor the consummation of the transactions described herein or therein
by the Borrower will (with or without notice or lapse of time or both) (i) violate or breach any
statute, law, rule, regulation or order by which Borrower or any of its properties may be bound or
affected; or (ii) breach or result in a default under any material contract or material agreement
to which Borrower is a party or by which Borrower or any of its properties may be bound or
affected.

(d) Consents. No approval, consent, authorization or order of, notice to or
registration or filing with, or any other action by, any governmental authority or any other person
is required in connection with (i) the due execution and delivery by Borrower of this Agreement and
the Note and the performance of the Borrower’s obligations
hereunder and thereunder, and (ii) the consummation by the Borrower of the transactions
described herein and therein.

(e) Litigation. There is no action, lawsuit, arbitration, claim or proceeding,
pending, or to the knowledge of Borrower, threatened, against Borrower that involves any of the transactions described in this Agreement or the Note or which could restrict the performance of any
obligation hereunder or thereunder.

 

 

 

Professional Offshore Opportunity Fund, Ltd.

August 14, 2007

Page -3-

(f) Capital Stock. The authorized capital stock of Borrower and the number of issued
shares of each class of capital stock after giving effect to the issuance of the Shares is set
forth in Schedule 1. The Shares represent fifteen percent (15%) of the Borrower’s outstanding
common stock on a fully diluted basis. The Borrower has two subsidiaries. Except as otherwise
disclosed in the Borrower’s SEC Filings, there are no options, warrants, subscriptions, conversion
rights or securities exchange rights or other securities or other contractual rights outstanding
which require, or give any person the right to require, the issuance, delivery or sale (including
right of conversion or exchange) of any capital stock of the Borrower, whether or not such rights
are presently exercisable. There are no preemptive rights, rights of first refusal or other
similar agreements obligating the Borrower to offer any of its capital stock to any person and none
of the shares of capital stock of the Borrower was issued in violation of any such rights. No
holder of any securities of the Borrower (or securities issuable in exchange therefor) has the
right to require any party to register such securities under the Securities Act of 1933, as amended
(as defined), either on a “demand” or a “piggyback” basis. All shares, options and warrants and
other securities of the Borrower issued since its date of incorporation, including, without
limitation, the Shares, were issued in compliance with the registration provisions of such
Securities Act or pursuant to an exemption therefrom and all such shares are validly issued, fully
paid and nonassesable. The Borrower does not have outstanding bonds, debentures, notes or other
obligations under the terms of which the holders of which have any rights to vote with the
stockholders.

This Agreement shall be governed by and construed in accordance with the laws of the State of
New York without regard to its conflict of laws rules. THE BORROWER WAIVES ITS RIGHT TO CLAIM A
TRIAL BY JURY IN ANY ACTION ARISING OUT OF THIS AGREEMENT.

The Borrower acknowledges and agrees that its actual or threatened breach of this Agreement
would result in irreparable damage to the Lender and that money damages would not provide an
adequate remedy to the Lender. Accordingly, the Borrower agrees that in the event of any such
breach, the Lender shall have, in addition to any and all remedies of law, the right to have the
provisions of this Agreement specifically enforced and to obtain injunctive and other equitable
relief to enforce the provisions of this Agreement.

This Agreement may be amended or modified only by a written instrument signed by the Lender
and the Borrower. The Lender’s failure at any time to require the performance of any provision of
this Agreement shall in no manner affect the Lender’s right at a later time to enforce the same
provision.

The Borrower irrevocably (A) consents that any legal action or proceeding arising from or
relating to this Agreement, whether in contract or tort, shall be commenced exclusively in the
Supreme Court of the State of New York, County of New York, or the United States District Court for
the Southern District of New York, (B) submits to the jurisdiction of any such Court in any such
action or proceeding, (C) waives any claim or defense in any such action or proceeding based on any
alleged lack of jurisdiction, improper venue or forum non conveniens and (D) consents to service of process by mail at its address set forth below, or such other address as it
shall provide to the Lender in writing. Service of process may be effected by notice sent by
certified mail, return receipt requested, to the Borrower at its address set forth below.

 

 

 

Professional Offshore Opportunity Fund, Ltd.

August 14, 2007

Page -4-

This Agreement shall be binding upon the Borrower, and its legal representatives, successors
and permitted assigns. In no event may the Borrower assign any rights or obligations under this
Agreement without the Lender’s prior written consent and any purported assignment without such
consent shall be null and void.

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	AMEREX GROUP, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Nicholas J. Malino	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Nicholas J. Malino	 	 
	 

	 	 	 	Title: CEO	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	1105 N. Peoria Avenue
	 	 
	 

	 	 	 	Tulsa, Oklahoma 74106	 	 

	 	 	 	 	 
	AGREED:
	 
	 	 	 	 
	PROFESSIONAL OFFSHORE OPPORTUNITY 
     
FUND, LTD.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

 

SCHEDULE 1

Capitalization

18,773,596 basic and dilutedFiled by Bowne Pure Compliance

 

Exhibit 10.18

EXECUTION COPY

PLEDGE AGREEMENT

PLEDGE AGREEMENT dated as of August 14, 2007 between RONALD BREWER and RICHARD COODY (the
“Pledgors”) and PROFESSIONAL OFFSHORE OPPORTUNITY FUND, LTD. (the “Pledgee”).

NOW, THEREFORE, it is agreed:

For good and valuable consideration, the receipt of which is hereby acknowledged, as
collateral security for the due and punctual payment and performance of all the Secured Obligations
(as defined below), the Pledgors hereby deposit and pledges with Pledgee the shares of stock
indicated on Annex 1 hereto (all such shares, together with all other shares of stock required to
be deposited hereunder the “Pledged Securities”) and hereby grants to the Pledgee a first
security interest in and a first lien upon, and hereby assigns, transfers, pledges and sets over to
the Pledgee, all of Pledgors’ right, title and interest in and to the following (the
“Collateral”) but in no other assets or property of the Pledgors:

(a) the Pledged Securities;

(b) all dividends and interest on the Pledged Securities;

(c) all proceeds of the Pledged Securities and any of the other Collateral;

(d) all other securities, money and other property required to be pledged hereunder, and all
rights related thereto; and

(e) all other rights of the Pledgors with respect to the foregoing Collateral.

Unless otherwise defined herein, all terms used in this Pledge Agreement shall have the same
meaning as used in that certain Letter Agreement dated of even date herewith between the Pledgee
and Amerex Group, Inc., a Delaware corporation (the “Borrower”), as the same may from time
to time be amended, restated, supplemented or otherwise modified (as so amended, restated,
supplemented or otherwise modified from time to time, the “Letter Agreement”), if defined
therein, or in the Note (as defined below). As used herein, the term “Secured Obligations”
shall mean (i) all obligations of the Pledgors under this Pledge Agreement and (ii) all obligations
of the Borrower, for principal, interest or otherwise, incurred under or in connection with the
Letter Agreement, the Secured Promissory Note dated the date hereof in the principal amount of
$750,000 issued by the Borrower to the Pledgee (the “Note”) and the other Loan Documents at
any time executed by the Borrower.

Section 1. Representations. The Pledgors represent, warrant and covenant, which
representations, warranties and covenants shall survive the execution and delivery hereof, as
follows:

(a) The Pledged Securities are duly and validly issued and are fully paid and non-assessable
shares of the Borrower.

 

 

 

(b) When deposited with the Pledgee, the Pledged Securities will be duly and validly pledged
hereunder in accordance with applicable law, and the Pledgors warrant, covenant and agree to defend
the Pledgee’s rights and title in and to the Pledged Securities against the claims and demands of
all persons and entities.

(c) The Pledgors are the sole legal and equitable owner of, and have good title to, all of the
Pledged Securities listed on Annex 1 hereto as being pledged by such Pledgors, free and clear of
all claims, security interests, mortgages, pledges, liens and other encumbrances of every nature
whatsoever, but subject to the any restrictions imposed by the securities laws, except in favor of
the Pledgee. The Pledgors have full power, authority and legal right to pledge the Pledged
Securities being pledged by such Pledgors as herein provided.

(d) Each certificate evidencing the Pledged Securities is issued in the name of the Pledgors
as provided in Annex 1 hereto, and each such certificate has been duly executed in blank by the
Pledgors or has attached thereto an instrument of transfer or assignment duly executed in blank by
the Pledgors, with signatures appropriately guaranteed with a Medallion Signature Guarantee and
accompanied in each case by any required transfer tax stamps, all in form and substance
satisfactory to the Pledgee.

(e) The security interest described in this Pledge Agreement represents a valid first lien on
and security interest in the Collateral superior and prior to the rights of all third persons or
entities.

(f) No filings or recordings (including, without limitation, under the Uniform Commercial
Code) are necessary to be made in order to perfect, protect and preserve the lien on and security
interest in the Collateral created by this Pledge Agreement.

(g) The Pledgors will not (i) sell, assign, transfer or otherwise dispose of any of the
Collateral, or any rights pertaining thereto, or (ii) create, or suffer to be created or to exist,
any mortgage, pledge, lien, security interest, charge or encumbrance upon the Collateral or any
part thereof, or upon the income or profits thereof or any other rights related thereto, other than
pursuant to (or as permitted by) this Pledge Agreement, or (iii) directly or indirectly amend,
modify, surrender, compromise, accept prepayment of, or waive any of their rights under, any of the
Pledged Securities (or agree to any of the foregoing) or take any action to enforce same without
the prior written consent of Pledgee. The issuer of the Pledged Securities by its acknowledgement
and consent hereto agrees that such will not be done without such consent. The Pledgors will, from
time to time, promptly pay and discharge all taxes, assessments and other governmental charges,
the lien of which would or might be prior or equal to the lien of this Pledge Agreement,
imposed upon the Collateral or any part thereof or upon the income or profits therefrom, and also
all taxes, assessments and other governmental charges imposed upon the lien or interest of the
Pledgee under this Pledge Agreement or in respect of the Collateral, and at their expense will take
all such other action as from time to time may be necessary or appropriate to preserve the lien of
this Pledge Agreement on the Collateral as a first lien thereon.

(h) This Pledge Agreement has been duly authorized by all necessary action on the part of the
Pledgors and the Pledgors have obtained all consents and approvals (governmental, third party or
otherwise) necessary in connection therewith, including without limitation all such consents and
approvals necessary for the Pledgee to sell, assign or otherwise transfer any or all of the Pledged
Securities to a third party as provided in Section 6 hereof (except to the extent that any such sale may require compliance with the Securities Act of 1933
(the “1933 Act”) or comparable provisions of any applicable state securities laws). This
Pledge Agreement is the Pledgors’ valid and binding obligation, enforceable against the Pledgors in
accordance with its terms.

 

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(i) The Pledged Securities now constitute 15% of the issued and outstanding
shares of the issuer thereof.

(j) The Pledgors hereby agree to deliver to the Pledgee immediately, upon receipt thereof, all
certificates representing any additional shares of stock or other equity securities of each issuer
of Pledged Securities that are hereafter acquired by Pledgors, each such certificate to be duly
executed in blank or have attached thereto a stock power duly signed in blank by the Pledgors.

Section 2. Transfer of Shares/Sale of Shares. During the existence and continuation of
any Event of Default, the Pledgee may, in its discretion, cause all or any of the Pledged
Securities to be transferred into its name or that of a nominee or nominees (to the extent that any
of the Pledged Securities are not already so transferred); provided however that Pledgee, or its
nominee or nominees, shall sell the Shares in a commercially reasonable manner consistent with
Pledgee’s business judgment concerning the timing of such sales and subject to any restrictions on
such sales under the securities laws.

Section 3. Voting Rights Prior to Event of Default. So long as an Event of Default
shall not have occurred and be continuing, the Pledgors shall be entitled, to the extent not
inconsistent with this Pledge Agreement and the other Loan Documents:

(a) To exercise the voting power with respect to the Pledged Securities and for that purpose
the Pledgee shall execute or cause to be executed from time to time (at the expense of the Pledgor)
such proxies or other instruments in favor of the Pledgors or their nominees, in such form and for
such purposes as shall be reasonably required by the Pledgors and as shall be specified in a
written request therefor, to enable it to exercise such voting power with respect to the Pledged
Securities; provided that such voting
power shall not, without the Pledgee’s prior written consent, be exercised by the Pledgors to
(i) adversely affect the interests of the Pledgee in connection with any of the Pledged Securities;
or (ii) in any manner that is inconsistent with the terms of the Letter Agreement, the Note or any
other Loan Document;

(b) To receive and retain for their own account any and all dividends (other than stock
dividends and liquidating dividends), interest and principal at any time and from time to time
paid, or declared or permitted to be paid, upon any of the Pledged Securities; and

(c) To exercise any conversion, option or similar right permitted by the terms of any of the
Pledged Securities (subject, however, to Section 4 hereof), but only with the prior written consent
of the Pledgee.

 

- 3 -

 

          Section 4. Dissolution of Issuer; Stock Dividends. If, upon the dissolution or
liquidation (in whole or in part) of the issuer of any of the Pledged Securities, any sum shall be
paid upon or with respect to any of the Pledged Securities, such sum shall be promptly paid over to
the Pledgee, to be held by the Pledgee as collateral security for the Secured Obligations. In case
any stock or similar dividend shall be declared on any of the Pledged Securities, or any shares of
stock or other debt or equity securities shall be issued upon conversion of any of the Pledged Securities (or the exercise of any option or similar right), or any shares of stock or fractions
thereof shall be issued pursuant to any stock split or merger involving any of the Pledged
Securities, or any distribution of capital shall be made on any of the Pledged Securities, or any
property shall be distributed upon or with respect to the Pledged Securities pursuant to the
recapitalization or reclassification of the capital stock of the issuer of any of the Pledged
Securities or the merger or reorganization thereof or otherwise, the shares or other property so
distributed shall be delivered promptly to the Pledgee (accompanied, where applicable, by proper
instruments of assignment and/or stock powers executed by Pledgors in accordance with the Pledgee’s
instructions) to be held by it as collateral security for the Secured Obligations.

Section 5. Voting Rights After Event of Default. If any Event of Default shall have
occurred and be continuing:

(a) the Pledgee shall thereafter be entitled (i) to exercise the voting power with respect to
the Pledged Securities, (ii) to receive and retain, as collateral security for the Secured
Obligations, any and all dividends, principal and interest at any time and from time to time
declared or paid upon any of the Pledged Securities, and (iii) to exercise any conversion, option
or similar right permitted by the terms of any of the Pledged Securities; and

(b) any dividends, principal, interest or other sums paid to the Pledgors upon or with respect
to any of the Pledged Securities shall be received by the Pledgors on behalf of and in trust for
the Pledgee and shall be paid over promptly to the Pledgee, to be held by the Pledgee as collateral
security for the Secured Obligations.

Section 6. Certain Rights of Pledgee After Event of Default. (a) If any Event of
Default shall have occurred and be continuing, the Pledgee may exercise all rights of a secured
party under the Uniform Commercial Code and, without obligation to resort to other security, may at
any time and from time to time:

(i) sell, resell, assign and deliver, in its discretion, all or any of the Pledged Securities,
in one or more parcels at the same or different times, and all right, title and interest, claim and
demand therein and right of redemption thereof, on any securities exchange on which the Pledged
Securities or any of them may then be listed, or at public or private sale, for cash, upon credit
or for future delivery, and at such price or prices and on such terms as the Pledgee may determine,
the Pledgors hereby agreeing that, upon such sale, any and all equity or right of redemption of the
Pledgors shall be automatically waived and released without any further action on the part of the
Pledgors, and in connection therewith the Pledgee may grant options, all without either demand,
advertisement or notice (except as required by law), all of which (to the extent permitted by law)
are hereby expressly waived. In the event of any such sale, the Pledgee shall give the Pledgors ten
days’ prior written notice of its intention to sell except that, if the Pledgee shall determine, in
its reasonable discretion, that any of the Pledged Securities threatens to decline speedily in
value, any such sale may be made upon three days’ prior written notice to the Pledgor. Upon each
such sale, the Pledgee may purchase all or any of the Pledged Securities being sold, free from any
equity or right of redemption, which, upon each such sale, shall be waived and released. Any such
sale or other disposition shall be made in a commercially reasonable manner. 

 

- 4 -

 

The proceeds of each
such sale shall be applied as provided in Section 7 hereof. The balance, if any, remaining after
indefeasible cash payment in full of the Secured Obligations shall be paid over to the
Pledgor or their designee. For the purposes of this Section 6, an agreement to sell any or
all the Pledged Securities entered into after the applicable notice period specified above
shall be treated as a sale thereof, and the Pledgee shall be entitled to carry out such
sale pursuant to such agreement and the Pledgors shall not be entitled to the return of any
of the Pledged Securities subject thereto notwithstanding the fact that after the Pledgee
shall have entered into any such agreement the Pledgors or any affiliate thereof shall have
tendered payment in full of the Secured Obligations; and

(ii) appropriate and apply all money held as part of the Collateral to the Secured
Obligations.

(b) Pledgors recognize that, by reason of certain prohibitions contained in the 1933 Act and
applicable state securities laws, the Pledgee may be compelled, with respect to any sale of all or
any part of the Collateral, to limit purchasers to those who will agree, among other things, to
acquire the Collateral for their own account, for investment and not with a view to the
distribution or resale thereof. Pledgors acknowledges that any such private sale may be at prices
and on terms less favorable to the Pledgee than those obtainable through a public sale without such
restrictions, and, notwithstanding such circumstances, agrees that any such private sale shall be
deemed to
have been made in a commercially reasonable manner and that the Pledgee shall have no
obligation to engage in public sales and no obligation to delay the sale of any Collateral for the
period of time necessary to permit the respective issuer thereof to register it for public sale.

Section 7. Certain Rights of Pledgee Without Event of Default. From time to time, the
Borrower, in its discretion, may direct the Pledgors to sell the Pledged Securities, or a portion
thereof, in satisfaction of the Secured Obligations, in whole or in part, even in the absence of
any Event of Default under the Letter Agreement or the Secured Promissory Note.

(a) In connection with any such transaction under this Section 7. Pledgors agree
to cooperate to effectuate any such sale transaction, waive any objections, covenant not to sue
Pledgee, and, without limiting any other representations in this Pledge Agreement, represent that
they have received full and adequate consideration from the Borrower in connection with this
provision.

(b) Notwithstanding the foregoing, the Borrower shall have no right to initiate a transaction
under this Section 7., without the prior written consent of the Pledgee, which may be
withheld in Pledgee’s sole and absolute discretion. If the Pledgee grants its consent, Pledgee
shall have discretion to supervise and direct the liquidation of the securities in the name of the
Pledgors and shall have the right to require Borrower and Pledgors to take all reasonable steps
necessary to preserve Borrower’s security interest in the proceeds of any such sale.

(c) In connection with any sale or disposition of Pledged Securities under this provision,
Pledgors irrevocably appoint Pledgee to act as its attorney-in-fact as provided under
Section 17.

(d) Any Pledged Securities not sold pursuant to this Section 7. shall remain
subject to this Pledge Agreement.

 

- 5 -

 

Section 8. Distribution of Proceeds. Except as otherwise provided herein, all money
that the Pledgee shall receive, in accordance with the provisions hereof, whether by sale of the
Pledged Securities or otherwise, shall be applied in the following manner: First, to the
payment of all costs and expenses incurred in connection with the administration and enforcement
of, or the preservation of any rights under, this Pledge Agreement or any of the reasonable
expenses and disbursements of the Pledgee (including without limitation the fees and disbursements
of its counsel and agents); Second, to the payment of the Secured Obligations in such order
as the Pledgee may determine; and Third, the balance, if any, to the Pledgors (unless
Pledgee shall otherwise be required or obligated to pay same (or any portion thereof) to the holder
of any other pledge). Any surplus of such cash or cash proceeds held by Pledgee and remaining after
payment in full of all the Secured Obligations shall be paid over to Pledgors or to whomsoever may
be lawfully entitled to receive such surplus.

Section 9. Cumulative Remedies; Standard of Care. The rights, powers and remedies
(collectively, the “Rights”) provided herein in favor of the Pledgee shall not be deemed
exclusive, but shall be cumulative, and shall be in addition to all other Rights in favor of the
Pledgee existing at law or in equity, including (without limitation) all of the Rights available to
a secured party under the provisions of the Uniform Commercial Code as adopted in any appropriate
jurisdiction. The Pledgee shall exercise the same care and diligence in holding the Pledged
Securities that the Pledgee would devote to the custody of securities and certificates owned by the
Pledgee.

Section 10. Sale of Pledged Securities. If any Event of Default shall have occurred
and be continuing, the Pledgee shall have the right, for and in the name, place and stead of the
Pledgors, to execute endorsements, assignments or other instruments of conveyance or transfer with
respect to all or any of the Pledged Securities and the other Collateral.

Section 11. Delay; Amendment. No delay on the part of the Pledgee in exercising any of
its rights, or partial or single exercise thereof, shall constitute a waiver thereof. No provision
of this Pledge Agreement shall (as to any Pledgor) be waived, amended, supplemented or otherwise
modified except by a written instrument executed by such Pledgor and the Pledgee. Without limiting
the generality of the foregoing, no amendment of Annex 1 hereto to reflect a change of ownership of
any Pledged Securities shall require the signature of any Pledgor other than that of the Pledgor
whose securities are being transferred or acquired and no amendment of Annex 1 hereto to add any
Person as a pledgor hereunder shall require the signature of any Pledgor other than the Person
whose securities are being pledged.

Section 12. Survival of Obligations. The obligations of the Pledgors hereunder shall
remain in full force and effect without regard to, and shall not be impaired by: (a) any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the
like of the Pledgors or any issuer of the Pledged Securities; (b) any exercise or non-exercise, or
any waiver, by the Pledgee of any right under or in respect of the Secured Obligations or any
security for any of the Secured Obligations (other than this Pledge Agreement); or (c) any
amendment to or modification of the Letter Agreement, the other Loan Documents, the Secured
Obligations or any security for any of the Secured Obligations (other than this Pledge Agreement),
whether or not the Pledgors shall have notice or knowledge of any of the foregoing.

Section 13. Return of Pledged Securities. After the indefeasible cash payment in full
of all of the Secured Obligations, the Pledgors (except to the extent otherwise contemplated by
this Pledge Agreement) shall be entitled to the return of all of the Pledged Securities and of all
Collateral which have not been used or applied toward the payment in full of the Secured
Obligations, without representation or warranty of any kind by the Pledgee (except a representation
that Pledgee has not encumbered said Pledged Securities).

 

- 6 -

 

Section 14. Assignment. This Pledge Agreement is binding upon the Pledgors, the
Pledgee and their respective executors, administrators, successors and assigns and shall inure to
the benefit of the Pledgee and its successors and assigns. The Pledgors may not assign their rights
or obligations hereunder without the prior written consent of the Pledgee and any purported
assignment without such consent shall be null and void.

Section 15. Governing Law. THIS PLEDGE AGREEMENT, THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER, AND ANY MATTERS RELATING TO THE PLEDGE AGREEMENT AND THE SECURED OBLIGATIONS,
SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED EXCLUSIVELY BY THE LAWS OF THE STATE OF NEW
YORK WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE THAT WOULD RESULT IN THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION. NO STATE’S LAW EXCEPT NEW YORK STATE LAW SHALL APPLY TO ANY MATTER ARISING
OUT OF OR RELATING TO THIS PLEDGE AGREEMENT.

Section 16. Further Assurances. The Pledgors hereby agrees, at their own expense, to
execute and deliver, from time to time, any and all further, or other, instruments, and to perform
such acts, as the Pledgee may reasonably request to effect the purposes of this Pledge Agreement
and to secure to the Pledgee the benefits of all rights, authorities and remedies conferred upon
the Pledgee by the terms of this Pledge Agreement. In the event that at any time hereafter, due to
any change in circumstances, including without limitation, any change in any applicable law, or any
decision hereafter made by a court construing any applicable law, it is, in the opinion of counsel
for the Pledgee, necessary or desirable to file or record this Pledge Agreement or any financing
statement or other instrument or document respecting this Pledge Agreement or the pledge made
hereunder, the Pledgors agree to pay all fees, costs and expenses of such recording or filing and
to execute and deliver any instruments that may be necessary or appropriate to make such filing or
recording effective. The Pledgee shall have the right to file any such financing statements without
the signature of the Pledgors to the extent permitted by applicable law.

Section 17. Attorney-in-Fact. The Pledgee is hereby appointed the attorney-in-fact of
the Pledgors for the purpose of carrying out the provisions hereof and taking any action and
executing any instruments which the Pledgee may deem necessary or advisable to accomplish the
purposes hereof, which appointment as attorney-in-fact is irrevocable and coupled with an interest.
Without limiting the generality of the foregoing, if any Event of Default shall have occurred, the
Pledgee shall have the right and power to receive, endorse and collect all checks made payable to
the order of the Pledgors representing any distribution in respect of the Pledged Securities or the
other Collateral or any part thereof and to give full discharge for the same.

Section 18. Severability. Any provision of this Pledge Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provisions in any other jurisdiction.

 

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Section 19. Indemnification. (a) The Pledgors agree to indemnify the Pledgee from and
against any and all claims, damages, losses, liabilities and expenses arising out of or in
connection with or resulting from this Pledge Agreement (including without limitation, enforcement
of this Pledge Agreement), unless and to the extent that such claims, damages, losses, liabilities
or expenses are attributable to the Pledgee’s gross negligence or willful misconduct as determined
by a final, non-appealable judgment of a court of competent jurisdiction.

(b) The Pledgors will upon demand promptly pay to the Pledgee the amount of any and all costs
and expenses incurred in connection with the enforcement of any rights under, this Pledge Agreement
and the reasonable expenses and disbursements of the Pledgee (including without limitation the fees
and disbursements of its counsel and agents).

Section 20. Waiver of Jury Trial. EACH OF THE PLEDGEE AND THE PLEDGORS HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND ALL RIGHTS EITHER MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
PLEDGE AGREEMENT, THE INDEBTEDNESS OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE PLEDGEE, THE PLEDGOR, ANY OTHER
PLEDGOR, THE BORROWER OR ANY OTHER PERSON OR ENTITY.

Section 21. Notices; Headings. (a) Any notice or demand upon the Pledgors under this
Pledge Agreement shall be deemed to have been sufficiently given or served for all purposes hereof
when mailed, postage prepaid, by registered or certified mail, return receipt requested, or when
telegraphed, telecopied or telexed or delivered by hand (or by Federal Express or similar courier
service), to the Pledgors at their addresses set forth on Annex 1 or at such other address as the
Pledgors may designate in a writing mailed, delivered, telegraphed, telecopied or telexed to the
Pledgee, provided that in the case where the Pledgee is required to give only three days’ notice of
a proposed sale of the Collateral such notice if delivered by mail shall not be deemed given until
delivered. All notices to the Pledgee provided for herein shall be deemed to have been given when
delivered by mail or by hand, or telegraphed, telecopied or telexed, to the Pledgee at its address
set forth below or at such other address as the Pledgee may designate in a writing mailed,
delivered, telegraphed, telecopied or telexed to the Pledgors.

(b) The descriptive headings of the various provisions of this Pledge Agreement are inserted
for convenience of reference only and shall not affect the meaning or construction of any of the
provisions of this Pledge Agreement.

(c) As used in this Pledge Agreement, “written,” “writing” and variations thereof shall refer
to any form of written communication or a communication by means of telex, telecopier, telegraph or
cable.

Section 22. Jurisdiction. The Pledgors hereby agree that any legal action or
proceeding against the Pledgors arising out of or relating to this Pledge Agreement or the other
documents contemplated hereby or referred to herein shall be brought in any court in the State of
New York in New York City or of the United States of America for the Southern District of New York,
and by execution and delivery of this Pledge Agreement the Pledgors generally and unconditionally
accepts for themselves and in respect to their property, generally and unconditionally, the jurisdiction of the aforesaid courts. The Pledgors waive any right to stay or to dismiss any action
or proceeding brought before any of said courts on the basis of forum non conveniens. The Pledgors
agree that process against the Pledgors in any such action or proceeding may be served against the
Pledgors by registered or certified mail sent to the Pledgors at their respective addresses set
forth below (or such other address as Pledgee is notified of pursuant to Section 20 hereof), such
service being hereby acknowledged by the Pledgors as being effective and binding service in every
respect. Nothing herein shall affect the right of the Pledgee to serve process in any other manner
permitted by applicable law or shall limit the right of the Pledgee to bring actions and
proceedings against the Pledgors in the courts of any other jurisdiction.

 

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Section 23. Counterparts; Joint and Several Obligations. This Pledge Agreement may be
executed in any number of counterparts, and by the different parties hereto on the same or separate
counterparts, each of which shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Telecopied signatures hereto shall be of the same force and
effect as an original of a manually signed copy.

Section 24. Counsel. The Pledgors, the Pledgee and the Borrower represent that they
are each represented by their own independent counsel and that their counsel has had the
opportunity to review this Pledge Agreement and any related documents.

Section 25. Conflicts. In the case of any direct conflict between the provisions of
this Pledge Agreement and the provisions of the any other pledge agreement with respect to Pledged
Securities pledged under both agreements, those provisions shall control which afford to the
Pledgee the greater rights and security. Without limiting the generality of the foregoing, the
parties hereto acknowledge that the inclusion of supplemental rights or remedies in favor of the
Pledgee with respect to such Pledged Securities shall not be deemed a conflict with this Pledge
Agreement.

IN WITNESS WHEREOF, the Pledgors and the Pledgee have duly executed and delivered this Pledge
Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 
	          Pledgor	 	Address
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	RONALD BREWER	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	RICHARD COODY	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PROFESSIONAL OFFSHORE	 	 	 	 	 	 
	OPPORTUNITY FUND, LTD.	 	 	 	1400 Old Country Road, Suite 206	 	 
	 

	 	 	 	 	 	Westbury, New York 11590	 	 
	 
	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 

 

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	CONSENTED TO AND ACKNOWLEDGED:
	 
	 	 	 	 
	AMEREX GROUP, INC.
	 
	 	 	 	 
	By

	 	/s/ Nicholas J. Malino	 	 
	 

	 	 	 	 
	Name:

	 	Nicholas J. Malino	 	 
	Title:

	 	CEO	 	 

 

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Annex 1 to

Pledge Agreement

Pledged Securities

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pledgor	 	Issuer	 	Class	 	# of Shares	 	 	Cert. #	 
	Ron Brewer
	 	Amerex Group, Inc	 	Common	 	 	250,000	 	 	 	101507	 
	Ron Brewer
	 	Amerex Group, Inc	 	Common	 	 	410,000	 	 	 	101568	 
	Ron Brewer
	 	Amerex Group, Inc	 	Common	 	 	790,000	 	 	 	101509	 
	Richard Coody
	 	Amerex Group, Inc	 	Common	 	 	1,450,000	 	 	 	101564	 

 

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