Document:

PLEDGE AND SECURITY AGREEMENT

     THIS PLEDGE AND SECURITY AGREEMENT ("Agreement")  is  made and entered
into as of the 12{th} day of September 2000, by and between  Americas Power
Partners, Inc. (the "Secured Party"), and Thomas A. Casten (the "Pledgor").

                                   RECITALS

     A.   The Pledgor has entered into that certain subscription  agreement
dated of even  date herewith ("Subscription Agreement") subscribing for One
Million Two Hundred  Thousand (1,200,000) shares of common stock in Secured
Party for the aggregate  principal  amount  of  One  Million  Five Thousand
Dollars ($1,500,000).

     B.  The Pledgor has entered into that certain promissory note dated of
even date herewith ("Promissory Note") promising to pay Secured  Party  One
Million  Dollars  ($1,000,000)  plus interest and providing for a pledge of
One Million Two Hundred Thousand  (1,200,000)  shares  of  common  stock in
Secured Party ("Pledged Shares").

     C.  It is a condition precedent to the obligation of Secured Party  to
enter  into the Subscription Agreement that the Pledgor shall have executed
and delivered this Agreement to Secured Party.

                                  CLAUSES

     NOW THEREFORE, in consideration of the premises and in order to induce
Secured Party to enter into the Subscription Agreement and for other good
and valuable consideration, the receipt and sufficiency of which the
Pledgor hereby acknowledges, the Pledgor hereby agrees for the benefit of
the Secured Party as follows:

     1.  Pledge.  Pledgor hereby pledges, assigns, hypothecates, transfers
and delivers to Secured Party all the Pledged Shares owned by Pledgor and
hereby grants to Secured Party a first lien on, and security interest in,
the Pledged Shares, and in all proceeds thereof, as collateral for: (a) the
prompt and complete payment when due (whether at the stated maturity, by
acceleration or otherwise) of the unpaid principal of and interest on the
Promissory Note; and (b) the performance by Pledgor of its obligations
under this Agreement (all the foregoing obligations and liabilities
described in clauses (a) and (b) being hereinafter called the
"Obligations").  Pledgor shall deliver the Pledged Shares to Secured Party
upon the execution hereof, and Secured Party shall hold the Pledged Shares
so long as any of the Obligations shall remain outstanding; provided that
for each dollar of principal of the Promissory Note paid by Pledgor,
Secured Party shall release to Pledgor one and one half (1  1/2 ) Pledged
Shares.

     2.  Secured Party Shares Rights.  Any sums paid upon or in respect of
the Pledged Shares upon the liquidation or dissolution of the issuer
thereof shall be paid over to Secured Party to be held by Secured Party in
trust as additional collateral security for the Obligations; and in case
any distribution of capital shall be made on or in respect of the Pledged
Shares or any property shall be distributed upon or with respect to the
Pledged Shares pursuant to the recapitalization or reclassification of the
capital of the issuer thereof or pursuant to the recapitalization thereof,
the property so distributed shall be delivered to Secured Party to be held
by Secured Party as additional collateral security for the Obligations.
Any sums of money and property so paid or distributed in respect of the
Pledged Shares which are received by Pledgor shall, until paid or delivered
to Secured Party, be held by Pledgor in trust as additional collateral
security for the Obligations.

     3.  Pledgor Shares Rights.  Unless an Event of Default (as defined in
the Promissory Note) shall have occurred and be continuing, Pledgor shall
be entitled to receive any cash distributions paid in respect of the
Pledged Shares, to vote the Pledged Shares, and to give consents, waivers
and ratifications in respect of the Pledged Shares.

     4.  Rights of Secured Party.  Secured Party shall not be liable for
failure to collect or realize upon the Obligations or any collateral
security, or for any delay in so doing nor shall Secured Party be under any
obligation to take any action whatsoever with regard thereto.  Any or all
of the Pledged Shares held by Secured Party hereunder may, if an Event of
default has occurred and is continuing, without notice, exercise all voting
and shareholder rights at any meeting of any corporation for any of the
stock included in the Pledged Shares and exercise any and all rights of
conversion, exchange, subscription or any other rights, privileges or
options pertaining to any stock of the Pledged Shares as if Secured Party
were the absolute owner, all without liability except to account for
property actually received by Secured Party, but Secured Party shall have
no duty to exercise any of the aforesaid rights, privileges or options and
shall not be responsible for any failure to do so or delay in so doing.

     5.  Remedies.

     a.  In the event of the occurrence of an Event of Default (as defined
in the Promissory Note), Secured Party may, without demand of performance
or notice of any kind to or upon Pledgor or any other person, from time to
time exercise any rights and remedies available to Secured Party, under the
Uniform Commercial Code as in effect at that time in the State of Illinois
or otherwise, and (without limitation) may forthwith collect, receive
appropriate and realize upon the Pledged Shares, or any part thereof, and
/or may forthwith sell, assign, give option or options to purchase,
contract to sell or otherwise dispose of and deliver said Pledged Shares,
or any part thereof.

     b.  Secured Party shall apply the net proceeds of any such collection,
recovery, receipt, appropriation, realization or sale, after deducting all
reasonable costs and expenses of every kind incurred therein or incidental
to the care, safekeeping or otherwise of any and all of the Pledged Shares
or in any way relating to the rights of the Secured Party hereunder, to the
payment in whole or in part, of the Obligations.

     c.  Pledgor shall not remain liable for any deficiency remaining
unpaid after such application of proceeds to the Obligations, and only
after so paying over such net proceeds and after the payment by Secured
Party of any other amount required by any provision of law, including,
without limitation, Section 9-504(1)(c) of the Uniform Commercial Code as
in effect at that time in the State of Illinois, need Secured Party account
for the surplus, if any, to Pledgor.

     d.  Pledgor furhter agrees to waive and agrees not to assert any
rights or privileges which Pledgor may acquire under Section 9-112(a), (b),
(c) and (e) of the Uniform Commercial Code as in effect at that time in the
State of Illinois.

     6.  Representations, Warranties and covenants of the Pledgor.  Pledgor
represents and warrants that:

     a.  Pledgor is the legal record and beneficial owner of, and has good
unencumbered title to, the Pledged Shares, subject to no pledge, lien,
mortgage, hypothecation, security interest, charge, option or other
encumbrance whatsoever, except the lien and security interest created by
this Agreement;

     b.  Pledgor has full legal right to pledge all the Pledged Shares
pursuant to this Agreement;

     c.  This Agreement has been duly executed and delivered by Pledgor and
constitutes a legal, valid and binding obligation of Pledgor enforceable in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other laws or
equitable principles relating to creditors' rights generally;

     d.  The execution, delivery and performance of this Agreement will not
violate an provision of any applicable law or regulation or of any order,
judgment, writ, award or decree of any court, arbitrator or governmental
authority, domestic or foreign, or of any mortgage, indenture, lease,
contract or other agreement, instrument or undertaking to which the Pledgor
is a party or which purports to be binding upon Pledgor or upon any of its
assets and will not result in the creation or imposition of any lien,
charge or encumbrance on or security interest in any of the assets of
Pledgor except as contemplated by this Agreement;

     e.  The pledge, assignment and delivery of such Pledged Shares
pursuant to this Agreement creates a valid first lien on and a first
perfected security interest in such Pledged Shares, and the proceeds
thereof, subject to no prior pledge, lien, mortgage, hypothecation,
security interest, charge, option or encumbrance or to any agreement
purporting to grant to any third party a security interest in the property
or assets of Pledgor which include the Pledged Shares.

     f.  Pledgor will defend Secured Party's right and security interest in
and to the Pledged Shares and the proceeds thereof against the claims and
demands of all persons whomsoever; and covenants and agrees that Pledgor
will have title to and the right to pledge any other property at any time
hereafter pledged to Secured Party as Pledged Shares hereunder and will
likewise defend Secured Party's right thereto and security interest
therein.

     g.  Pledgor represents and warrants that the representations,
warranties and covenants made in this Agreement are true and correct and
shall remain true and correct and shall be deemed to be remade each day
until this Agreement is terminated.

     7.  Disposition of Pledged Shares.  Without the prior written consent
of Secured Party, Pledgor agrees not to sell, assign, transfer, exchange or
otherwise dispose of, or grant any option with respect to and interest in
the Pledged Shares, nor will Pedgor create, incur or permit to exist any
pledge, lien, mortgage, hypothecation, security interest, charge, option or
encumbrance with respect to any interest in the Pledged Shares, or any
proceeds thereof, except for the lien and security interest provided for by
this Agreement.  Without the prior written consent of Secured Party,
Pledgor agrees that it will not vote to enable, and will not otherwise
permit, the Corporation to issue or cause any stock or other securities of
any nature in addition to or in exchange or substitution for the Pledged
Shares.

     8.  Further Assurances.  Pledgor agrees that at any time and from time
to time upon the written request of Secured Party, Pledgor will execute and
deliver such further documents and do such further acts and things as
secured Party may reasonably request in order to effect the purposes of
this Agreement.

     9. Severability.  Any provision of this 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 provision in any other jurisdiction.

     10.  No Waiver; Cumulative Remedies.  Secured Party shall not by any
act, delay, omission or otherwise be deemed to have waived any rights or
remedies hereunder, and no waiver shall be valid unless in writing and
signed by Secured Party, and then only to the extent therein set forth.  A
waiver by Secured Party of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which
Secured Party would otherwise have on any future occasion.  No failure by
Secured Party to exercise nor any delay by Secured Party in exercising any
right, power or privilege hereunder, shall operate as a waiver thereof; nor
shall any single or partial exercise by Secured Party of any right, power
or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, power or privilege.  The rights and
remedies herein provided and otherwise provided by the Subscription
Agreement, Promissory Note, or Agreement are cumulative and may be
exercised singly or concurrently, and are not exclusive of any rights or
remedies provided by law, or by any other instrument or agreement securing,
evidencing or relating to any of the Obligations.

     11.  Amendments.  None of the terms or provisions of this Agreement
may be altered, modified or amended except by an instrument in writing,
duly executed by Pledgor and Secured Party.  This Agreement and all
obligations of the Pledgor hereunder shall be binding upon the successors
and assigns of the Pledgor, and shall, together with the rights and
remedies of Secured Party hereunder, inure to the benefit of Secured Party
and Secured Party's respective successors and assigns.

     12.  Applicable law.  This Agreement shall be governed by, and be
construed and interpreted in accordance with, the internal laws of the
State of Illinois.

     13.  Incorporation of Recitals.  The Recitals contained herein are
hereby incorporated and made a part of the terms and mutual covenants and
agreements contained in this Agreement.

     14.  Counterparts.  This Agreement may be executed in multiple
counterparts, each of which shsll be deemed an original, but all of which
together shall constitute one and the same instrument.

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

PLEDGOR:                           SECURED PARTY:
THOMAS R. CASTEN                   AMERICAS POWER PARTNERS, INC.

/s/ Thomas R. Casten                    By: /s/ David Pequet
THOMAS R. CASTEN                                DAVID PEQUETPROMISSORY NOTE

September 13, 2000                                                $1,000,000

     FOR VALUE RECEIVED, the UNDERSIGNED, THOMAS R. CASTEN, ("Maker"),
hereby promises to pay, in the manner and at the time hereinafter stated to
AMERICAS POWER PARTNERS, INC. ("Holder"), at such place as the Holder
hereof may designate, the principal sum of One Million Dollars
($1,000,000), together with interest thereon until this Promissory Note
shall be fully paid and satisfied.

     1.   INTEREST.  Interest will be charged on that part, or any part thereof,
of the outstanding principal which has not been paid beginning on the date set
forth above, and continuing until the full amount of principal and interest has
been paid.  Beginning on the date set forth above, the undersigned will pay
interest at the lowest annually applicable federal rate for long term loans
as of the date first indicated above, compounded annually ("Interest
Rate").

     2.   PAYMENTS.  Unless accelerated pursuant to Section 5 herein, the
principal and interest shall be payed as follows:

          A.   The principal shall be paid by Maker in one lump sum on the
               earlier of (i) the tenth (10{th}) annual anniversary of the
               date this Promissory Note was executed, (ii) two (2) years
               after termination of Maker's employment with the Holder
               pursuant to Sections 8.2.1 or 8.2.2 of that certain
               executive employment agreement between Maker and Holder of
               even date herewith (Employment Agreement "), or (iii) thirty
               (30) days following termination of employment pursuant to
               Section 8.2.3 of the Employment Agreement.

          B.   Interest for the prior year shall be paid by Maker within
               thirty (30) days after each annual anniversary of the date
               this Promissory Note was executed.

          C.   Principal and interest may be prepaid in whole, or in part,
               at any time and from time to time.  Any amount prepaid shall
               be applied first to unpaid interest accrued to the date of
               prepayment and then to principal.

     3.   SECURITY.  The performance by Maker of all obligations hereunder and
under the Subscription Agreement shall be secured by a pledge and security
agreement executed contemporaneously herewith ("Pledge and Security Agreement")
granting a security interest in One Million Two Hundred (1,200,000) shares
in the Holder ("Pledged Shares").  Pledged Shares shall be released on
principal prepayment as provided in the Pledge and Security Agreement.

     4.   EVENTS OF DEFAULT.  The occurrence of any one or more of the following
events shall constitute an event of default hereunder ("Event of Default"):

     A.   If Maker shall fail to pay when due any payment of principal or
          interest on this Promissory Note and such failure continues for thirty
          (30) days after the due date.

     B.   If, pursuant to or within the meaning of the United States
          Bankruptcy Code or any other federal or state law relating to
          insolvency or relief or debtors (a "Bankruptcy Law"), Maker
          shall: (i) commence a voluntary case or proceeding; (ii) consent
          to the entry of an order for relief against it an involuntary
          case; (iii) consent to the appointment of a trustee, receiver,
          assignee, liquidator or similar official; (iv) make an assignment
          for the benefit of its creditors; or (v) admit in writing its
          inability to pay its debts as they become due and such event is
          not dismissed or cured within thirty (30) days.

     C.   If a court of competent jurisdiction enters an order or decree
          under any Bankruptcy Law that (i) is for relief against Maker in
          an involuntary case, or (ii) appoints a trustee, receiver,
          assignee, liquidator or similar official for Maker or
          substantially all trustee, receiver, assignee, liquidator or
          similar official for Maker or substantially all of Maker's
          properties, and the order or decree is not dismissed within sixty
          (60) days.

     D.   Any other breach or default by Maker of any representations,
          warranties or obligations set forth in this Promissory Note or
          the Pledge and Security Agreement which is not cured within
          thirty (30) days.

     5.  ACCELERATION.  Time being of the essence of this contract, the
Maker further agrees that if in case an Event of Default by the Maker, the
principal sum above mentioned, or any balance that may be unpaid thereon,
together with all interest thereon as aforesaid, at the option of the
Holder, shall become immediately due and payable, and all of said interest
thereon at the rate then Holder, shall become immediately due and payable,
and all of said interest thereon at the rate then applicable under the
terms of this Promissory Note, shall be collectible immediately or at any
time after such default.

     6.  NO RECOURSE. Holder's recourse or remedy for a breach of this
Promissory Note is limited to the Pledge Shares.

     7.  ASSIGNMENT.  Holder shall have the right to assign or dispose of
the rights to receive payments hereunder without the consent of the Maker.

     8.  NOTICE.  Notwithstanding anything to the contrary contained
herein, in the event of any act allowing acceleration of the indebtedness
evidenced hereby or any breach hereof or default hereunder pursuant to
Section 4(d), the Holder shall mail notice to the Maker at his home
specifying: (a) the breach; (b) the action required to cure such breach;
(c) the date by which such breach must be cured as provided hereunder; and
(d) that failure to cure such breach on or before the date specified in the
notice may result in acceleration of the entire principal amount
outstanding and accrued interest thereon.  No failure, even though
repeated, by Holder to exercise any option contained in this Promissory
Note, and no waiver, even though repeated, or performance of any of the
covenants contained in either such instrument shall in any way affect the
right of Holder thereafter to exercise such option or to require or enforce
performance of such covenant.

     9.  WAIVERS.  The Maker of this Promissory Note hereby waives notice
of and consent to any and all extensions of this Promissory Note or any
part thereof without notice, and each hereby waives demand, presentment for
payment, notice of nonpayment and protest, and the exhaustion of legal
remedies hereon.

     10.  GENERAL.  In this Promissory Note, wherever the context requires,
the singular shall include the plural and the masculine shall include the
feminine and the neuter.  All and each of the rights, options and
privileges of the Holder hereunder shall extend to any holder hereof.  This
Promissory Note shall be governed by, and be construed and interpreted in
accordance with, the internal laws of the State of Illinois.

     11.  FEES AND COSTS.  In the event any action is brought to enforce
the obligations under this Promissory Note, the prevailing party shall be
entitled to reasonable attorneys' fees.

     12.  BINDING EFFECT.  This Promissory Note shall be binding upon Maker
and its legal representatives, successors and assigns.

     13.  APPLICABLE LAW.  This Promissory Note shall be construed in
accordance with and governed by the laws of the State of Illinois.

     14.  SEVERABILITY.  Wherever possible, each provision of this
Promissory Note shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of the Promissory Note
shall be prohibited by or invalid under such law, such provision shall be
severable, and be ineffective to the extent of such prohibition or
invalidity, without invalidating the remaining provisions of this
Promissory Note.

     15.  NEGOTIATION AND ASSIGNMENT.  This Promissory Note shall not be
negotiable or assignable by Holder.

     16.  SETOFF.  The Maker shall have the right to setoff any amount owed
to Maker by Holder against the principal and interest owing under this
Promissory Note, whether currently due or not.  Any amount setoff at such
time as no amount is currently due hereunder, shall be deemed a prepayment
pursuant to paragraph 2.c hereof.

     The Maker has executed this Promissory Note the day and year first
above written.

                             /s/ Thomas R. Casten
                                 THOMAS R. CASTEN

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