Document:

Exhibit 10.4

                      DO NOT DESTROY THIS PROMISSORY NOTE.

WHEN PAID IN FULL, THIS NOTE, TOGETHER WITH THE SECURITY INSTRUMENTS SECURING
THE SAME, SHOULD BE MARKED "CANCELED" BY LENDER AND DELIVERED TO BORROWER AS
RECEIPT OF ALL AMOUNTS OWING UNDER THIS NOTE.

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED ("SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE AND ARE BEING
OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND SUCH LAWS. THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES
COMMISSION, THE AMERICAN STOCK EXCHANGE OR OTHER REGULATORY AUTHORITY, NOR HAVE
ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS
OFFERING.

THESE SECURITIES AND ANY SHARES ISSUED UPON THE CONVERSION TERMS SET FORTH
HEREIN ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE
APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM.

                                 PROMISSORY NOTE
                             (Convertible & Secured)

                                                              New York, New York
                                                                December 4, 2001

FOR VALUE RECEIVED, LAIDLAW GLOBAL CORPORATION, a Delaware corporation
(hereinafter called "Borrower"), hereby promises to pay in lawful money of the
United States of America and in immediately available funds, to the order of
Third Security, LLC, a Virginia limited liability company ("Lender"), at such
place as Lender shall specify, on the Maturity Date defined below, the original
principal sum of One Million Five Hundred Thousand Dollars ($1,500,000) (the
"Loan Amount"), which Loan Amount may be increased (as adjusted, the "Loan
Amount") pursuant to the terms of the Call and Put Option Agreement, dated as of
the date hereof, between Borrower and Lender (the "Call and Put Option
Agreement"), together with accrued interest as provided herein, if any, and in
accordance with the following provisions:

                                       1
<PAGE>

1. Term; Principal Payments; Maturity. The Loan Amount, together with accrued
interest as provided herein, if any, is payable on the earlier of (i) 45 days
(excluding in determining the 45 days the days from December 15 through December
31, inclusively) after delivery of written notice from Lender to Borrower of its
decision to abandon its right to acquire all of the Purchased Shares (as defined
in the LOI (as defined below)) or (ii) April 1, 2003 (the "Maturity Date").

2. Calculation of Interest. The aggregate outstanding principal balance of this
Note shall accrue simple interest at 8 1/2% per annum. Interest shall be
calculated on the unpaid principal balance hereof on the basis of the actual
number of days elapsed and based on a 360-day year and shall accrue until the
Maturity Date or conversion of the entire principal amount of this Note.
Interest (including any default interest at the rate set forth in Paragraph 11
hereof, if any) shall accrue and be payable under this Note whether or not
Borrower, its successors or assigns, should avail themselves of the protection
of the United States bankruptcy courts in any manner. All accrued and unpaid
interest shall be payable in cash regardless of any conversion of this Note.

3. Interest Payments. Borrower shall not be required to make any payments of
accrued interest until the earlier of (i) the Maturity Date or (ii) the
conversion of the entire principal amount of this Note, at which time the entire
Loan Amount, together with all accrued but unpaid interest thereon, shall be due
and payable to Lender in full.

4. Place of Payment. All payments due under this Note, shall be mailed, wired or
delivered to Lender at such place or address as Lender of this Note may specify
in writing to Borrower.

5. Purpose. Borrower and Lender acknowledge that this Note is being given as
part of a transaction contemplated by a Letter of Intent ("LOI") dated December
3, 2001 between the parties. This Note reflects the delivery of funds as
provided by the LOI and the parties anticipate that the Note will be superceded
and replaced by a formal agreement between the parties, negotiated in good
faith, in furtherance of the LOI (the "Definitive Agreement").

6. Security.

     6.1. As a condition to Lender accepting this Note from Borrower, and as
security therefore, Borrower shall grant to Lender a general security interest
in and to all of the shares of common stock owned by Borrower in H&R Acquisition
Corp. (which property and assets are further identified and defined as the
"Collateral" in the Pledge Agreement, as defined below).

     6.2. The terms of the security interest granted to Lender is evidenced and
further defined by that certain Pledge Agreement and accompanying UCC Financing
Statement(s), if any, executed and delivered concurrently with this Note by and
between Borrower and Lender (collectively, the "Pledge Agreement")

                                       2
<PAGE>

7. Terms of Conversion.

     7.1. Lender shall have the right, at any time or times (i) subsequent to
the Maturity Date so long as the Loan Amount has not been repaid, (ii) after a
default not cured as provided for herein or in the Pledge Agreement, or (iii)
with the written consent of Borrower, to elect in lieu of collection hereon or
any other relief, to convert all of the unpaid portion of the Loan Amount into
shares of the common stock of Borrower (the "Common Stock") at the Conversion
Price hereinafter defined. In addition, Lender shall have the right, at any time
or times after execution of the Definitive Agreement to convert an amount of the
unpaid portion of the Loan Amount into shares of Common Stock equal to the
number of shares comprising the Initial Shares (as defined in the LOI) in excess
of the Option Shares (as defined in the LOI) purchased by Lender, at the
Conversion Price hereinafter defined.

          7.1.1. "Conversion Price" shall mean that amount fixed in the
Definitive Agreement for the acquisition of Common Stock by Lender or until such
time as the Definitive Agreement is entered into between Lender and Borrower,
the amount specified in the Call and Put Option Agreement.

          7.1.2. The Conversion Price in effect at any time and the number and
shares of Common Stock purchasable upon the exercise of the Note shall be
subject to adjustment from time to time upon the happening of certain events as
follows:

               7.1.2.1. In case Borrower shall (i) declare a dividend or make a
distribution on its outstanding shares of Common Stock in shares of Common
Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock into
a greater number of shares, or (iii) combine or reclassify its outstanding
shares of Common Stock into a smaller number of shares, the Conversion Price in
effect at the time of the record date for such dividend or distribution or of
the effective date of such subdivision, combination or reclassification shall be
adjusted so that it shall equal the price determined by multiplying the
Conversion Price by a fraction, the denominator of which shall be the number of
shares of Common Stock outstanding after giving effect to such action, and the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such action. Such adjustment shall be made successively
whenever any event listed above shall occur.

               7.1.2.2. In case Borrower shall (i) sell shares of Common Stock
at a price per share less than the Conversion Price then applicable, or (ii)
issue any security convertible into shares of Common Stock with a conversion
price per share less than the Conversion Price then applicable, then in any and
every such event, the Conversion Price shall be reduced and shall be equal to
such lower sales or conversion price.

                                       3
<PAGE>

               7.1.2.3. Whenever the Conversion Price is adjusted, as herein
provided, Borrower shall promptly cause a notice setting forth the adjusted
Conversion Price and adjusted number of shares issuable upon conversion of the
Note to be delivered to Lender as provided herein. Borrower may retain a firm of
independent certified public accountants selected by the Board of Directors (who
may be the regular accountants employed by Borrower) to make any computation
required by this Section, and a certificate signed by such firm shall be
conclusive evidence of the correctness of such adjustment.

     7.2. To exercise the aforesaid conversion right, Lender shall deliver to
Borrower at its principal office a Notice of Conversion, attached hereto as the
"Notice of Conversion", and Borrower shall deliver the Shares into which all or
part of the Note has been converted and the outstanding Loan Amount shall be
reduced by the amount so converted.

     7.3. Limitation on Shares. The issuance of any shares of Common Stock on
conversion of this Note as set forth herein shall be subject to all applicable
rules and regulations of the Securities Act, the Securities and Exchange
Commission, any State Securities Commission, the American Stock Exchange or any
other regulatory authority having jurisdiction thereon. Borrower agrees to use
its best efforts and to cooperate with Lender in obtaining compliance with such
authority, rules and regulations to give effect to the right of conversion.

8. Covenants and Agreements of Borrower. Until this Note has been paid in full
as provided herein, Borrower hereby covenants and agrees with Lender as follows:

     8.1. Borrower will at all times take or cause to be taken all such action
as may from time to time be necessary to maintain, preserve, and renew its
corporate existence in good standing under the laws of the State of Delaware.

     8.2. Borrower agrees to perform, keep and observe all of the terms,
conditions, covenants, agreements, warranties or representations contained in
this Note, the Pledge Agreement and in any other agreement regarding the
Collateral to which it is bound as though fully set forth herein and agreed to
hereby.

     8.3. Borrower shall at all times reserve and keep available out of its
authorized but unissued shares of Common Stock for the purpose of effecting the
conversion of this Note such number of its shares of Common Stock as shall from
time to time be sufficient to effect the conversion of this Note; and if at any
time the number of authorized but unissued shares of Common Stock shall not be
sufficient to effect the conversion of the entire outstanding principal amount
of this Note, in addition to such other remedies as shall be available to the
holder of this Note, Borrower will use its best efforts to take such corporate
action as may, in the opinion of its counsel, be necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as shall
be sufficient for such purposes.

9. Default of Borrower. Any one or more of the following shall constitute an
"event of default" by Borrower under the terms of this Note:

     9.1. If Borrower fails to pay any payment, whether at Maturity or
otherwise, of principal and/or interest upon the due date thereof, if such
default continues and remains uncured for a period of five days after written
notice from Lender; and/or

                                       4
<PAGE>

     9.2. If Borrower defaults in the performance or observance of any of the
covenants, conditions or agreements set forth in this Note, the Pledge
Agreement, the LOI or any other credit or loan agreement pursuant to which
Borrower has issued debt securities or borrowed money, and if such default
continues and remains uncured for any curative period provided for therein;
and/or

     9.3. The institution by Borrower of proceedings to be adjudicated as
bankrupt or insolvent, or the consent by it to institution of bankruptcy or
insolvency proceedings against it or the filing by it of a petition or answer or
consent seeking reorganization or release under the Federal Bankruptcy Act, or
any other applicable federal or state law, or the consent by it to the filing of
any such petition or the appointment of a receiver, liquidator, assignee,
trustee or other similar official of Borrower, or of any substantial part of its
property, or the making by it of an assignment for the benefit of creditors, or
the taking of corporate action by Borrower in furtherance of any such action, or
the admission in writing of its inability to pay its debts generally as they
become due; and/or

     9.4. If, within 60 days after the commencement of an action against
Borrower (and service of process in connection therewith on Borrower) seeking
any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar
relief under any present or future statute, law or regulation, such action shall
not have been resolved in favor of Borrower or all orders or proceedings
thereunder affecting the operations or the business of Borrower stayed, or if
the stay of any such order or proceeding shall thereafter be set aside, or if,
within 60 days after the appointment without the consent or acquiescence of
Borrower of any trustee, receiver or liquidator of Borrower or of all or any
substantial part of the properties of Borrower, such appointment shall not have
been vacated.

10. Lender's Remedies for Default. In the event of a default described in
Paragraph 9 above, and after any applicable notice and/or curative period
specified therein, at the option of Lender, and upon written demand, Lender may
do one or any of the following:

     10.1. Accelerate the Maturity Date of this Note and declare the entire
outstanding balance hereof, including all fees and costs (if any), principal and
accrued but unpaid interest thereon, immediately due and payable in full; and/or

     10.2. Exercise any other of its rights or remedies available to Lender
under the terms of the Pledge Agreement, as well as all other rights and
remedies Lender shall have as a secured party under the Uniform Commercial Code.

     10.3. Each of the options, rights and remedies provided herein or available
at law or in equity which may be exercised by Lender, may be exercised
separately or concurrently with any one or more other options, rights or
remedies. Failure to exercise any option, right or remedy shall not constitute a
waiver of the right of Lender to exercise such option, right or remedy in the
event of or with respect to any prior, subsequent or concurrent transaction or
occurrence of the same or a different kind or character.

                                       5
<PAGE>

11. Increase in Interest Rate. From and after the maturity of this Note, whether
on the Maturity Date or as a result of an acceleration of the principal and
interest by reason of an event of default under this Note, the entire
outstanding principal balance hereunder and all accrued but unpaid interest
thereon shall automatically bear interest (in place of the interest rate
specified above) at the rate of 12% per annum (or 1% per month).

12. Conformity With Usury Laws. Notwithstanding anything to the contrary
contained herein, the amount of interest payable under the terms of this Note
shall in no event exceed the maximum amount of interest permitted to be charged
by law. Any interest so paid by Borrower in excess of the maximum amount of
interest permitted by law shall be deemed to have been payments of principal.

13. Attorneys' Fees and Costs. If any action or proceeding, including
arbitration, is commenced to collect this Note or any part thereof at law, in
equity, in bankruptcy or otherwise, or if Borrower's obligations hereunder or
any part thereof are placed in the hands of attorneys for collection, the court
or arbitrator in such action or proceeding shall award Lender, or any other
holder of this Note, in addition to any other relief granted, (i) the actual
reasonable attorneys' which the prevailing party has paid or is obligated to
pay; and (ii) all costs and expenses, not merely recoverable costs, which the
prevailing party has paid or is obligated to pay. The court or arbitrator may
reduce such actual reasonable attorneys' fees, costs and expenses only to the
extent that the court or arbitrator determines that such amounts were
unnecessarily incurred. In addition, the parties agree that if any dispute
between the parties results in a judgment in favor of either party, such party
shall be entitled to recover from the other all reasonable attorneys' fees and
costs incurred by it in enforcing such judgment. This provision is intended to
be severable from any other provision of this Note and is not to be deemed
merged in the judgment.

14. No Waiver; Extension of Time for Repayment. Lender of this Note may extend
the time for payment, postpone the enforcement hereof or grant any other
indulgences without affecting or diminishing Lender's right to recourse against
Borrower or any endorsers, sureties or guarantors, which right is expressly
reserved.

15. Binding Effect; Assignability. The terms and provisions hereof shall inure
to the benefit of and be binding upon Borrower and Lender and their respective
successors, and assigns; provided, however, Borrower's obligations hereunder are
nontransferable and non assignable without the prior written consent of Lender.
Any person who assumes the obligations under this Note shall also be obligated
to keep of the promises made in this Note. Lender may enforce its rights under
this Note against each person individually or against all of them together,
meaning that any one of them may be required to pay all of the amounts owed
under this Note.

                                       6
<PAGE>

16. Severability. In the event any one or more of the provisions contained in
this Note, or any application thereof shall be invalid or rendered unenforceable
in any effect, the validity, legality and enforceability of the remaining
provisions contained herein and the application thereof shall not in any way be
affected or impaired thereby.

17. Governing Law. This Note and any exhibits or supplements hereto shall be
deemed entered into in the State of New York. This Note and the rights of the
parties hereunder shall be governed by and construed in accordance with the law
of the State of New York without giving effect to any conflict of law provision.

18. Errors and Omissions Compliance. Borrower acknowledges that in consideration
of the delivery of the Loan Amount, Borrower agrees to cooperate promptly with
Lender and its agents in the correction or completion of the documents related
to the loan, if deemed necessary or desirably by Lender. Borrower understands
that this may include correction of names of parties, correction or execution of
a new note or other agreement evidencing the indebtedness or other security
agreement to reflect the agreed terms as same may be revised. Failure to so
cooperate shall be deemed an event of default under Paragraph 10, above.

19. Waiver. Except as herein provided, Borrower waives demand for payment,
presentment, protest, notice of protest and non-payment, or other notice of
default, notice of acceleration and intention to accelerate, and agrees that its
liability under this Note shall not be affected by any renewal or extension in
the time of payment hereof, or by any indulgences, or by any release or change
in any security for the payment of this Note, and hereby consents to any and all
renewals, extensions, indulgences, releases or changes, regardless of the number
of such renewals, extensions, indulgences, releases or changes.

                                       7
<PAGE>

     IN WITNESS WHEREOF, Borrower has caused this Promissory Note (Convertible &
Secured) to be executed and delivered by a duly authorized officer as of the day
and year first above written.

                                            LAIDLAW GLOBAL CORPORATION,
                                            Borrower:

                                            By: _________________________
                                                Name:
                                                Title:

                                       8
<PAGE>
                              NOTICE OF CONVERSION

     The undersigned hereby irrevocably elects to convert the attached
Convertible Note to the extent of purchasing shares of Common Stock of Laidlaw
Global Corporation in accordance with the terms of conversion set forth therein
and hereby surrenders the Convertible Note in payment of the actual Conversion
Price thereof.

Date:_________________, 200_
THIRD SECURITY, LLC

By:      ___________________________________
         Name:
         Title:

                                       9Exhibit 10.5

                                PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT, dated as of December 4, 2001, made by Laidlaw Global
Corp., a Delaware corporation (the "Borrower"), to Third Security, LLC, a
Virginia limited liability company (the "Lender"), recites and provides:

                                    RECITALS

     WHEREAS, pursuant to the letter of intent (the "LOI"), dated as of December
3, 2001, between the Borrower and the Lender, the Lender has agreed to make a
loan (the "Loan") in the amount of $1,500,000 to the Borrower for the purposes
described in the LOI, such Loan to be evidenced by a secured convertible note
(the "Note") of the Borrower payable to the order of the Lender as provided in
the Note;

     WHEREAS, pursuant to the LOI Borrower and Lender have agreed to execute and
deliver an option and put agreement (the "Option and Put Agreement"), dated as
of the date hereof, pursuant to which provides that in the event that the Lender
exercises its put rights thereunder, then the notes issued to the Lender by the
Borrower as consideration for the shares subject to such put rights shall be
secured by this Pledge Agreement; and

     WHEREAS, the Lender is willing to make the Loan and to execute the Option
and Put Agreement but only upon the condition, among others, that the Borrower
executes and delivers to the Lender this Pledge Agreement;

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein contained and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                    AGREEMENT

     1. Defined Terms. For the purposes of this Pledge Agreement, the following
terms shall have the following meanings:

          "Event of Default" shall have the meaning assigned to such term in the
     Note.

          "Maturity Date" shall have the meaning assigned to such term in the
     Note.

          "Obligations" means (a) all obligations of the Borrower hereunder, and
     (b) all indebtedness, liabilities and obligations of the Borrower to the
     Lender, whether now existing or hereafter incurred, direct or indirect,
     absolute or contingent, secured or unsecured, matured or unmatured, joint
     or several, whether for principal, interest, fees, expenses or otherwise,
     arising out of or in connection with any other agreements, documents or
     instruments heretofore, now or hereafter executed and delivered by the
     Borrower or the Borrower to the Lender or any oral agreement or by
     operation of law and whether evidenced by promissory notes or by other
     evidences of indebtedness, including without limitation all obligations
     under the LOI and the Option and Put Agreement.

<PAGE>

          "Pledged Assets" means the Pledged Securities, together with all
     certificates, options, rights, dividends, other distributions or intangible
     rights or assets issued as an addition to, in substitution or in exchange
     for, or on account of, any such Pledged Securities, and all proceeds of all
     of the foregoing, now or hereafter owned or acquired by the Borrower.

          "Pledged Securities" means the capital securities described in
     Schedule 1 hereto and all other capital securities now or hereafter
     included in the Pledged Assets.

          "UCC" means the uniform commercial code as adopted by the State of New
     York.

     2. Grant of Security Interest.

          (a) As collateral security for the prompt and complete payment and
performance when due of all of the Obligations and in order to induce the Lender
to enter into the Option and Put Agreement and make the Loan in accordance with
the terms thereof, the Borrower hereby pledges to the Lender the Pledged Assets
and grants to the Lender a lien on and security interest therein.

          (b) If the Borrower shall become entitled to receive or shall receive,
in connection with any of the Pledged Securities, any:

               (i) Certificate or other evidence of ownership, including, but
without limitation, any certificate representing a stock dividend or in
connection with any increase or reduction of capital, reclassification, merger,
consolidation, sale of assets, combination, stock split, spin-off or split-off;

               (ii) Option, warrant, or right, whether as an addition to or in
substitution or in exchange for any of the Pledged Securities, or otherwise;

               (iii) Dividend or distribution payable in property, including
capital securities issued by an issuer other than the issuer of any of the
Pledged Securities; or

               (iv) Dividends or distributions of any sort (other than those
permitted to be retained by the Borrower pursuant to Section 2(d));

                                      -2-
<PAGE>

then the Borrower shall accept the same as the agent of the Lender, in trust for
the Lender, and shall deliver them forthwith to the Lender in the exact form
received with, as applicable, the Borrower's endorsement when necessary, or
appropriate stock powers duly executed in blank, to be held by the Lender,
subject to the terms hereof, as part of the Pledged Assets.

          (c) Prior to the occurrence of an Event of Default, the Borrower shall
retain all voting rights with respect to the Pledged Securities. At any time the
Lender, at its option, may have any or all of the Pledged Securities registered
in its name or that of its nominee on the books of the issuer of the Pledged
Securities, and the Borrower hereby covenants that, upon the Lender's request,
the Borrower will cause the issuer of the Pledged Securities to effect such
registration. If such registration is effected prior to the occurrence of an
Event of Default, the Borrower shall nevertheless retain all voting rights with
respect to the Pledged Securities, and, for that purpose, the Lender shall
execute and deliver to the Borrower all necessary proxies. Immediately and
without further notice, upon the occurrence of an Event of Default, whether or
not the Pledged Securities shall have been registered in the name of the Lender
or its nominee, the Lender or its nominee shall have, with respect to the
Pledged Securities, the right to exercise all voting rights with respect thereto
and all conversion, exchange, subscription or other rights, privileges or
options as any owner or holder pertaining thereto as if it were the absolute
owner thereof, including, without limitation, the right to exchange any or all
of the Pledged Securities upon the merger, consolidation, reorganization,
recapitalization or other readjustment of the issuer thereof, or upon the
exercise by such issuer of any right, privilege, or option pertaining to any of
the Pledged Securities, and, in connection therewith, to deliver any of the
Pledged Securities to any committee, depository, transfer agent, registrar or
other designated agency upon such terms and conditions as it may determine, all
without liability except to account for property actually received by it; but
the Lender 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
any delay in so doing.

          (d) Unless an Event of Default has occurred and is continuing, the
Borrower shall be entitled, if not prohibited by the Note, to receive for its
own use cash dividends or distributions on the Pledged Securities. Upon the
occurrence of an Event of Default, the Lender may require any such cash
dividends or distributions to be delivered to the Lender as additional security
hereunder or applied toward the satisfaction of the Obligations.

     3. Remedies, Rights Upon Default.

          (a) Upon and after the occurrence of an Event of Default, the Lender
may, without demand of performance or other demand, advertisement, or notice of
any kind (except the notice specified below of time and place of public or
private sale) to or upon the Borrower or any other person (all of which are, to
the extent permitted by law, hereby expressly waived), forthwith realize upon
the Pledged Assets or any part thereof, and may forthwith, or agree to, sell or
otherwise dispose of and deliver the Pledged Assets or any part thereof or

                                      -3-
<PAGE>

interest therein, in one or more parcels at public or private sale or sales, at
any exchange, broker's board or at any of the Lender's offices or elsewhere, at
such prices and on such terms (including, but without limitation, a requirement
that any purchaser of all or any part of the Pledged Securities purchase the
shares or other interests constituting the Pledged Securities for investment and
without any intention to make a distribution thereof) as it may deem best, for
cash or on credit, or for future delivery without assumption of any credit risk,
with the right to the Lender or any purchaser to purchase upon any such sale the
whole or any part of the Pledged Assets free of any right or equity of
redemption in the Borrower, which right or equity is hereby expressly waived and
released.

          (b) The proceeds of any such disposition or other action by the Lender
shall be applied as follows:

               (i) First, to the costs and expenses incurred in connection
therewith or incidental thereto or to the care or safekeeping of any of the
Pledged Assets or in any way relating to the rights of the Lender hereunder,
including reasonable attorneys' fees and legal expenses;

               (ii) Second, to the satisfaction of the Obligations;

               (iii) Third, to the payment of any other amounts required by
applicable law; and

               (iv) Fourth, to the Borrower to the extent of any surplus
proceeds.

          (c) The Lender need not give more than five days' notice of the time
and place of any public sale or of the time after which a private sale may take
place, which notice the Borrower hereby deems reasonable.

     4. Representations and Warranties of Borrower. The Borrower represents and
warrants that:

          (a) It has, and has duly exercised, all requisite power and authority
to enter into this Pledge Agreement, to pledge the Pledged Assets for the
purposes described in the recitals to this Pledge Agreement, and to carry out
the transactions contemplated by this Pledge Agreement;

          (b) It is the legal and beneficial owner of all of the Pledged Assets;

                                      -4-
<PAGE>

          (c) Except as otherwise set forth in Schedule 1 hereto, the Pledged
Securities constitute all of the issued and outstanding capital securities of
each issuer thereof;

          (d) All of the Pledged Securities have been duly and validly issued,
are fully paid and nonassessable, and all of the Pledged Assets are owned by the
Borrower free of any pledge, mortgage, hypothecation, lien, charge, encumbrance
or security interest in or on such Pledged Assets or the proceeds thereof,
except for that granted hereunder;

          (e) The execution and delivery of this Pledge Agreement, and the
performance of its terms, will not result in any violation of any provision of
the Organizational Documents of the Borrower or the applicable issuer of the
Pledged Securities or violate or constitute a default under the terms of any
agreement, indenture or other instrument, license, judgment, decree, order, law,
statute, ordinance or other governmental rule or regulation, applicable to the
Borrower or any of its property; and

          (f) Upon the delivery of all certificates and instruments evidencing
the Pledged Securities to the Lender or its agent, the registration of the
pledge of the Pledged Securities on the books of the issuer thereof and the
filing of financing statements in the filing office described in Schedule 2
hereto naming the Borrower as debtor, the Lender as secured party and describing
the Pledged Assets, this Pledge Agreement will create a valid first lien upon
and perfected security interest in the Pledged Assets and the proceeds thereof,
subject to no prior security interest, lien, charge or encumbrance, or agreement
purporting to grant to any third party a security interest in the property or
assets of the Borrower which would include the Pledged Assets.

          (g) Each of the Borrower's places of business (and if more than one
place of business such Borrower's chief executive office), within the meaning of
the UCC, is listed on Schedule 2 hereto. If any of the Pledged Securities is
uncertificated within the meaning of the UCC, the jurisdiction of the issuer of
such Pledged Securities is listed on Schedule 2 hereto.

     5. Covenants of Borrower.

          (a) The Borrower hereby covenants that, until the later of (x) the
Maturity Date and (y) the date that all of the Obligations are satisfied in
full, it will not, without the prior written consent of the Lender:

               (i) Sell, convey, or otherwise dispose of any of the Pledged
Assets (other than cash distributions permitted to be retained by the Borrower
pursuant to Section 2(d)) or any interest therein or create, incur, or permit to
exist any pledge, mortgage, lien, charge, encumbrance or security interest
whatsoever in or with respect to any of the Pledged Assets or the proceeds
thereof, other than that created hereby; or

                                      -5-
<PAGE>

               (ii) Consent to or approve the issuance of any additional capital
securities in the issuer of the Pledged Securities; or any capital securities
convertible voluntarily by the holder thereof or automatically upon the
occurrence or non-occurrence of any event or condition into, or exchangeable
for, any such capital securities, or any warrants, options, rights, or other
commitments entitling any person to purchase or otherwise acquire any such
capital securities or allow the issuer to take any of the foregoing actions; or

               (iii) Change its name, identity or organizational structure in
any manner that might make any financing or continuation statement filed
hereunder seriously misleading within the meaning of the UCC (or any other then
applicable provision of the UCC) unless the Borrower has given the Lender at
least 90 days' prior written notice thereof or has delivered to the Lender
acknowledgment copies of UCC financing statements duly executed and duly filed
in each jurisdiction in which UCC filings were required in order to perfect the
security interest granted by this Pledge Agreement in the Pledged Assets and
have taken all action (or made arrangements to take such action substantially
simultaneously with such change if it is impossible to take such action in
advance) necessary or reasonably requested by the Lender to amend such financing
statement or continuation statement so that it is not seriously misleading; or

               (iv) Change its place of business or chief executive office as
set forth in Schedule 2 hereto unless it has given the Lender at least 90 days'
prior written notice thereof or has delivered to the Lender acknowledgement
copies of UCC financing statements duly executed and filed in each of the filing
offices in which UCC filings are required in order to perfect any of the
security interests granted hereunder in the Pledged Assets; or

               (v) The Borrower warrants and will, at its own expense, defend
the Lender's right, title, special property and security interest in and to the
Pledged Assets against the claims of any person, firm, corporation or other
entity.

     6. Registration Statement.

          (a) If the Lender elects to exercise its right to sell or otherwise
dispose of all or any part of the Pledged Securities, and if, in the opinion of
counsel for the Lender, it is necessary to have the Pledged Securities or that
portion thereof to be sold registered under the provisions of the Securities Act
of 1933, as amended (the "Securities Act"), the Borrower shall use its best
efforts to cause:

               (i) The issuer of such Pledged Securities, its governing body and
responsible officers, to take all action necessary to register such Pledged
Securities or that portion thereof to be disposed of under the provisions of the
Securities Act, at the Borrower's expense;

                                      -6-
<PAGE>

               (ii) The registration statement relating thereto to become
effective and to remain so for not less than one year from the date of the first
public offering of such Pledged Securities or that portion thereof so to be
disposed of, and to make all amendments thereto and to the related prospectus
that, in the opinion of the Lender or its counsel, are necessary or advisable,
all in conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto;

               (iii) The issuer of such Pledged Securities to comply with the
provisions of the "Blue Sky" law of any jurisdiction designated by the Lender;
and

               (iv) The issuer of such Pledged Securities to make available to
all holders of its capital securities, as soon as practicable, an earnings
statement (which need not be audited) covering a period of at least twelve
months but not more than eighteen months, beginning with the first month after
the effective date of any such registration statement, which earnings statement
will satisfy the provisions of Section 11(a) of the Securities Act.

          (b) The Borrower acknowledges that a breach of any of the covenants
contained in paragraph 5(a) above may cause irreparable injury to the Lender;
that the Lender will have no adequate remedy at law with respect to such breach;
and, as a consequence, that the Borrower's covenants in paragraph 5(a) shall be
specifically enforceable against the Borrower; and the Borrower hereby waives,
to the extent such waiver is enforceable under law, and shall not assert, any
defenses against an action for specific performance of such covenants, except
for a defense that no Event of Default has occurred.

          (c) Notwithstanding the foregoing, the Borrower recognizes that the
Lender may be unable to effect a public sale of all or a part of the Pledged
Securities and may be compelled to resort to one or more private sales to a
restricted group of purchasers who will be obligated to agree, among other
things, to acquire such capital securities for their own account, for investment
and not with a view to the distribution or resale thereof. The Borrower
acknowledges that any such private sales may be at prices and on terms less
favorable to the Lender than those of public sales, and agrees that the sale of
the Pledged Securities does not have to be a public sale in order to be made in
a commercially reasonable manner and that the Lender has no obligation to delay
sale of any such Pledged Securities to permit the issuer thereof to register it
for public sale under the Securities Act.

     7. Notices Concerning Pledged Assets. The Borrower will promptly deliver to
the Lender all written notices, and will promptly give the Lender written notice
of any other notices, received by it with respect to Pledged Assets.

     8. Further Assurances. The Borrower shall at any time, and from time to
time, upon the written request of the Lender, execute and deliver such further
documents and do such further acts and things as the Lender may reasonably
request to effect the purposes of this Pledge Agreement, including, without
limitation, delivering to the Lender upon the occurrence of an Event of Default
irrevocable proxies with respect to the Pledged Securities in form satisfactory
to the Lender. Until receipt thereof, this Pledge Agreement shall constitute the
Borrower's proxy to the Lender or its nominee to vote all Pledged Securities
then registered in the Borrower's name in accordance with Section 2(c).

                                      -7-
<PAGE>

     9. Termination. This Pledge Agreement shall terminate on the later of (i)
the Maturity Date and (ii) the date that all of the Obligations are satisfied in
full, and the Lender shall deliver to the Borrower, or register a release for
the benefit of the Borrower, at the Borrower's expense, such of the Pledged
Assets as shall not have been sold or otherwise applied pursuant to this Pledge
Agreement.

     10. Limitation on Lender's Duty in Respect of Collateral. Beyond the
exercise of reasonable care to assure the safe custody of the Pledged Assets
while held hereunder, the Lender shall have no duty or liability to preserve
rights pertaining thereto and shall be relieved of all responsibility for the
Pledged Assets upon surrendering it or tendering surrender of it to the
Borrower.

     11. Severability. Any provision of this Pledge Agreement that 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.

     12. No Waiver; Cumulative Remedies. The Lender shall not, by any act,
delay, omission or otherwise, be deemed to have waived any of its rights or
remedies hereunder and no waiver shall be valid unless in writing, signed by the
Lender, and then only to the extent therein set forth. A waiver by the Lender of
any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy which the Lender would otherwise have had on any
future occasion. No failure to exercise nor any delay in exercising on the part
of the Lender, any right, power or privilege hereunder, shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other or future exercise thereof or the
exercise or any other right, power or privilege. The rights and remedies
hereunder provided are cumulative and may be exercised singly or concurrently,
and are not exclusive of any rights and remedies provided by law. None of the
provisions of this Pledge Agreement may be waived, altered, modified or amended
except by an instrument in writing, duly executed by the Borrower and the
Lender.

     13. Successors and Assigns; Governing Law. This Pledge Agreement and all
obligations of the Borrower hereunder shall be binding upon the successors and
assigns of the Borrower, and shall, together with the rights and remedies of the
Lender hereunder, inure to the benefit of the Lender and its successors and
assigns. This Pledge Agreement shall be governed by, and be construed and
interpreted in accordance with, the laws of the State of New York.

                                      -8-
<PAGE>

     14. Further Indemnification. The Borrower agrees to pay, and to save the
Lender harmless from, any and all liabilities with respect to, or resulting from
any delay in paying, any and all excise, sales or other taxes which may be
payable or determined to be payable with respect to any of the Pledged Assets or
in connection with any of the transactions contemplated by this Pledge
Agreement.

          (a) Notices. All notices and other communications under this Pledge
Agreement shall be in writing, shall be effective when received, and shall in
any event be deemed to have been received on the date of delivery if delivered
personally or by telecopier; on the second business day after the business day
of deposit with the U.S. Postal Service for delivery by first class mail,
registered or certified, postage prepaid; or on the first business day after the
business day of deposit with a courier for overnight delivery, freight prepaid;
in each such case, addressed as follows (until any such address is changed by
notice duly given):

         To Lender:                      Third Security, LLC
                                             The Governor
                                             1902 Downey Street
                                             Radford, VA 24141
                                             Telecopy:  (540) 633-7972
                                             Attention: Marcus E. Smith, Esquire

         With a Copy to:   Hunton & Williams
                           Riverfront Plaza, East Tower
                           951 East Byrd Street
                           Richmond, Virginia 23219
                           Telecopy: (804) 344-7999
                           Attention: C. Porter Vaughan, Esq.

         To Borrower:      Laidlaw Global Corp.
                           100 Park Avenue
                           New York, New York 10017
                           Telecopy: (212) ___________
                           Attention: Mr. Roger Bendelac

         With a Copy to:   Beckman, Millman, Barandes & Douglas, LLP
                           1616 John Street, Suite 1313
                           New York, New York  10038
                           Telecopy: (212) 791-7990
                           Attention: Robert Barandes, Esq.

                                      -9-
<PAGE>

     IN WITNESS WHEREOF, the Borrower has caused this Pledge Agreement to be
duly executed and delivered as of the date and year first above written.

                                         LAIDLAW GLOBAL CORP.

                                         By:____________________________________
                                            Roger Bendelac
                                            Chairman and Chief Executive Officer

                                      -10-
<PAGE>

                                   Schedule 1

                               CAPITAL SECURITIES

<TABLE>
<CAPTION>
====================================================================================================================================
   Issuer, including exact name, the type of          Certificate No. (if         No. of Shares or       Exact Name of Registered
    entity and jurisdiction of organization               applicable)               ownership %                   Holder
<S>                                                   <C>                         <C>                    <C>
------------------------------------------------- ----------------------------- --------------------- ------------------------------
H&R Acquisition Corp.                                                           81%                   Laidlaw Global Corp.
------------------------------------------------- ----------------------------- --------------------- ------------------------------
</TABLE>

                                      -11-
<PAGE>
                                   Schedule 2

                         FILING OFFICES AND INFORMATION

Filing Office:

State of New York

Location of Debtor:

100 Park Avenue
New York, New York 10017

                                      -12-

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