Document:

EX-10.1

 Exhibit 10.1 

AMENDMENT NO. 2 TO RESTRUCTURING SUPPORT AGREEMENT 

This Amendment No. 2 (this “Amendment No. 2”), dated as of August 12, 2016, is made by the HERO Entities and each of the Ad
Hoc Group Members that is a party hereto. Capitalized terms used and not otherwise defined herein have the meanings set forth in the Agreement (as defined below). 

WHEREAS, the HERO Entities and the Ad Hoc Group Members are parties to that certain Restructuring Support Agreement, dated May 26, 2016, as
amended by the Amendment to the Restructuring Support Agreement, dated July 8, 2016 (as may be further amended, modified or supplemented from time to time, the “Agreement”); 

WHEREAS, Section 26 of the Agreement provides, among other things, that the Agreement may be amended with the written consent of (i) each of
the HERO Entities and (ii) the Requisite Consenting Lenders; and 
 WHEREAS, the parties desire to amend the Agreement in order to extend
the timeline for (a) the entry of the Disclosure Statement Order and Confirmation Order and (b) the consummation of the Plan. 
 NOW,
THEREFORE, in consideration of the covenants and agreements contained herein and in the Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 

 

	 	1.	Section 6(i) of the Agreement is hereby amended such that (i) the reference to “August 12, 2016” therein is changed to “September 30, 2016.” 

 

	 	2.	Section 6(j) of the Agreement is hereby amended such that the reference to “August 26, 2016” therein is changed to “October 14, 2016.” 

 

	 	3.	Point 7 of the “Milestones” subsection of the Term Sheet is hereby amended such that the reference to “August 12, 2016” therein is changed to “September 30, 2016.” 

 

	 	4.	Point 8 of the “Milestones” subsection of the Term Sheet is hereby amended such that the reference to “August 26, 2016” therein is changed to “October 14, 2016.” 

 

	 	5.	This Amendment No. 2 and the Agreement (including the Term Sheet that is attached to, and fully incorporated in, the Agreement), together, contain the complete agreement among the HERO Entities and the Ad Hoc Group
Members and supersede any prior understandings, agreements, letters of intent or representations by or among such parties, written or oral, to the extent they relate to the subject matter hereof. Except as specifically amended hereby, the
Agreement, as amended hereby, shall remain in full force and effect. 

 [Signature Pages Follow] 

 IN WITNESS WHEREOF, this Amendment No. 2 has been duly executed to be effective as of the date
first written above. 
  

			
	HERCULES OFFSHORE, INC.
		
	By:	 	 /s/ Troy L. Carson

	Name:	 	Troy L. Carson
	Title:	 	Senior Vice President & CFO
	
	CLIFFS DRILLING COMPANY
	FDT LLC
	FDT HOLDINGS LLC
	HERCULES DRILLING COMPANY, LLC
	 HERCULES OFFSHORE LIFTBOAT
COMPANY LLC

	HERO HOLDINGS, INC.
	SD DRILLING LLC
	THE OFFSHORE DRILLING COMPANY
	THE ONSHORE DRILLING COMPANY
	TODCO AMERICAS INC.
	TODCO INTERNATIONAL INC.
	HERCULES LIFTBOAT COMPANY, LLC
	HERCULES OFFSHORE SERVICES LLC
	 HERCULES OFFSHORE INTERNATIONAL, LLC

		
	By:	 	 /s/ Troy L. Carson

	Name:	 	Troy L. Carson
	Title:	 	Vice President

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	DISCOVERY OFFSHORE (GIBRALTAR)     LIMITED
		
	By:	 	 /s/ Troy L. Carson

	Name:	 	Troy L. Carson
	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Beau M. Thompson

	Name:	 	Beau M. Thompson
	Title:	 	Authorized Signatory

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	HERCULES OFFSHORE (NIGERIA) LIMITED
		
	By:	 	 /s/ Troy L. Carson

	Name:	 	Troy L. Carson
	Title:	 	Authorized Signatory

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	 DISCOVERY NORTH SEA LTD.

DISCOVERY OFFSHORE SERVICES LTD.

	HERCULES ASSET MANAGEMENT LTD.
	HERCULES INTERNATIONAL DRILLING LTD.
	 HERCULES INTERNATIONAL HOLDINGS, LTD.

	 HERCULES INTERNATIONAL MANAGEMENT COMPANY LTD.

	 HERCULES INTERNATIONAL OFFSHORE, LTD.

	 HERCULES NORTH SEA, LTD.

HERCULES OFFSHORE ARABIA, LTD.
 HERCULES OFFSHORE
HOLDINGS LTD.

	HERCULES OFFSHORE MIDDLE EAST LTD.
	HERCULES OILFIELD SERVICES LTD.
	TODCO TRINIDAD LTD.
		
	By:	 	 /s/ Claus E. Feyling

	Name:	 	Claus E. Feyling
	Title:	 	Director

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	 HERCULES OFFSHORE LABUAN CORPORATION

		
	By:	 	 /s/ Claus E. Feyling

	Name:	 	Claus E. Feyling
	Title:	 	Director

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	HERCULES BRITANNIA HOLDINGS     LIMITED
	HERCULES BRITISH OFFSHORE LIMITED
	HERCULES NORTH SEA DRILLER LIMITED
	HERCULES OFFSHORE UK LIMITED
		
	By:	 	 /s/ Claus E. Feyling

	Name:	 	Claus E. Feyling
	Title:	 	Director

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	 LUMINUS ENERGY MASTER FUND, LTD., 

as Lender

		
	By:	 	 /s/ Jeffrey Wade

	Name:	 	Jeffrey Wade
	Title:	 	General Counsel

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	 By: T. ROWE PRICE ASSOCIATES, INC.,

as investment advisor

		
	By:	 	 /s/ Rodney M. Rayburn

	Name:	 	Rodney M. Rayburn
	Title:	 	Vice President

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	 NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC., as investment manager on
behalf of certain of its clients:

		
	By:	 	 /s/ Steven Kotsen

	Name:	 	Steven Kotsen
	Title:	 	Portfolio Manager

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	 BLACKWELL PARTNERS LLC – SERIES A

	
	By: Bowery Investment Management, LLC, its Manager
		
	By:	 	 /s/ Vladimir Jelisavcic

	Name:	 	Vladimir Jelisavcic
	Title:	 	Manager
	
	 BOWERY OPPORTUNITY FUND, L.P.

	
	By: Bowery Opportunity Management, LLC, its General Partner
		
	By:	 	 /s/ Vladimir Jelisavcic

	Name:	 	Vladimir Jelisavcic
	Title:	 	Manager
	
	 BOWERY OPPORTUNITY FUND, Ltd.

		
	By:	 	 /s/ Vladimir Jelisavcic

	Name:	 	Vladimir Jelisavcic
	Title:	 	Director
	
	 P BOWERY, LTD

	
	By: Bowery Investment Management, LLC, its investment manager
		
	By:	 	 /s/ Vladimir Jelisavcic

	Name:	 	Vladimir Jelisavcic
	Title:	 	Manager

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	THIRD AVENUE TRUST, on behalf of the THIRD AVENUE FOCUSED CREDIT FUND
	
	By: Third Avenue Management, LLC, as investment advisor
		
	By:	 	 /s/ Vincent J. Dugan

	Name:	 	Vincent J. Dugan
	Title:	 	Chief Financial Officer

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	SOUTH DAKOTA RETIREMENT SYSTEM
		
	By:	 	 /s/ Matthew L. Clark

	Name:	 	Matthew L. Clark
	Title:	 	State Investment Officer on behalf of the South Dakota Retirement System

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	WESTERN ASSET MANAGEMENT COMPANY, as Investment Manager for Certain of its Clients
		
	By:	 	 /s/ Adam Wright

	Name:	 	Adam Wright
	Title:	 	Manager, U.S. Legal Affairs

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	 QPB HOLDING LTD., as Lender

		
	By:	 	 /s/ Thomas L. O’Grady

	Name:	 	Thomas L. O’Grady
	Title:	 	Attorney-in-Fact

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT] 

 
			
	 QUANTUM PARTNERS LP, as holder of HERO Equity Interests

	
	 By: QP GP LLC, its General Partner

		
	By:	 	 /s/ Thomas L. O’Grady

	Name	 	Thomas L. O’Grady
	Title:	 	Attorney-in-Fact

  
 [SIGNATURE
PAGE TO AMENDMENT NO. 2 TO THE AGREEMENT]AMENDMENT
TO ORIGINAL ISSUE DISCOUNT CONVERTIBLE DEBENTURES

DUE
JULY 27, 2020

 

THIS
AMENDMENT TO AMENDMENT TO ORIGINAL ISSUE DISCOUNT CONVERTIBLE DEBENTURE DUE July 27, 2020 (the “Amendment”) is made
effective as of July 26, 2016 by and between PF Hospitality Group, Inc., a Nevada corporation having its principal place of business
at 399 NW 2nd Ave., Suite 216, Boca Raton, FL 33432 (the “Company”) and parties identified on the signature page hereto
(collectively, the “Holders”). The Company and Holders may collectively be referred to as the “Parties”.

 

BACKGROUND

 

A.
The Company and each of the Holders are the owners and holders of Original Issue Discount Convertible Debentures Due July 27,
2020 and issued by the Company on July 27, 2015 in the aggregate principal amount of $1,333,334.00 (the “Convertible Debentures”);

 

B.
Each Holder, owns and holds a Convertible Debenture in the Original Issue Amount set forth on the signature page hereto; and

 

C.
Each of the Parties desire to amend certain parts of the Convertible Debentures as set forth below.

 

NOW,
THEREFORE, in consideration of the execution and delivery of the Convertible Debentures and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.Section
4(b) of the Convertible Debentures is hereby amended by deleting such Section 4(b) and replacing it with the following:

 

(b)
Conversion Price. The conversion price in effect on any Conversion Date shall be equal to 50% of the lowest traded price of the
Common Stock for the twenty Trading Days prior to such Conversion Date subject to adjustment herein (the “Conversion Price”).
The Conversion Price will be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or
similar transaction that proportionately decreases or increases the Common Stock during such measuring period. Notwithstanding
anything herein to the contrary, at any time after the occurrence of any Event of Default the Holder may, at such Holder’s
option and otherwise in accordance with the provisions for conversion herein, convert all or any part of this Debenture into Common
Stock at the Default Conversion Price. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an
Event of Default pursuant to Section 6 hereof and the Holder shall have the right to pursue all remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of
any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable
law.

 

2.Randy
Romano and Vaughn Dugan shall have entered into a Stock Pledge Agreement in favor of Bezalel Partners LLC in the form of Stock
Pledge Agreement attached hereto as Exhibit A.

 

3.The
Holders hereby consent to the Company’s sale of a $200,000.00 principal amount Convertible Debenture Due July 20, 2021 at
par value to R & T Sports Marketing, Inc.

 

4.Each
Holder warrants and represents that each Holder is the beneficial owner of the portion of the Convertible Debt set forth on the
signature page below, free and clear of all mortgages, pledges, restrictions, liens, charges, encumbrances, security interests,
obligations or other claims and has the authority to enter into this Amendment.

 

5.This
Amendment shall be deemed part of, but shall take precedence over and supersede any provisions to the contrary contained in the
Convertible Debentures. All initial capitalized terms used in this Amendment shall have the same meaning as set forth in the Convertible
Debentures unless otherwise provided. Except as specifically modified hereby, all of the provisions of the Convertible Debentures
which are not in conflict with the terms of this Amendment shall remain in full force and effect.

 

Signature
page follows.

 

    	 	 	 

    	 	 	 

    

 

SIGNATURE
PAGE TO DEBENTURE AMENDMENT

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.

 

	PF Hospitality Group, Inc.	 
	 	 	 
	By:	/s/
    Vaughan Dugan	 
	 	Vaughn
Dugan, Chief Executive Officer	 

 

	Holder
    Name/Signature	 	Original Issue Amount of

Convertible Debenture

	Longside
    Ventures LLC 	 	 	 
	 	 	 	 	 
	By:	/s/
    Benjamin Kaplan	 	 	 
	 	Benjamin
    Kaplan, Manager	 	$	333,333.50
	 	 	 	 	 
	Taconic
    Group LLC	 	 	 
	 	 	 	 	 
	By:	/s/
    Robert Grinberg	 	 	 
	 	Robert
    Grinberg, Manager	 	$	333,333.50
	 	 	 	 	 
	Sierra
    Trading Corp.	 	 	 
	 	 	 	 	 
	By:	/s/
    Daisy Rodriguez	 	 	 
	 	Daisy
    Rodriguez Arnold, President	 	$	333,333.50
	 	 	 	 	 
	Bezalel
    Partners LLC	 	 	 
	 	 	 	 	 
	By:	/s/
    David Stefansky	 	 	 
	 	David
    Stefansky, Managing Member	 	$	333,333.50
	 	Total	 	$	1,333,334.00

 

    	 	2	 

    	 	 	 

    

 

EXHIBIT
A

 

FORM
OF STOCK PLEDGE AGREEMENT

 

THIS
STOCK PLEDGE AGREEMENT (as may be amended, restated or modified from time to time, this “Pledge Agreement”),
dated as of July ___, 2016 made by and between VAUGHAN DUGAN, as pledgor (the “Pledgor”), and Bezalel
Partners LLC, as pledgee (the “Pledgee”).

 

W
I T N E S E T H:

 

WHEREAS,
pursuant to that certain Securities Purchase Agreement dated as of July 27, 2015 (the “SPA”) entered into among PF
Hospitality Group, Inc., a Nevada corporation (the “Company”) and the Pledgee, whereby the Company sold to the Pledgee
Original Issued Discount Convertible Debentures Due July 27, 2020 (the “Convertible Debentures”) in the aggregate
principal amount of $1,333,334.00;

 

WHEREAS,
the Company sold at par value a $200,000.00 principal amount Convertible Debenture Due July 20, 2021 to R & T Sports Marketing,
Inc. (the “R & T Funding”); and

 

WHEREAS,
Bezalel Partners LLC agreed to fund a $50,000 of the Purchaser Notes as defined in the SPA (the “Bazalel Funding”)
(the R & T Funding of $200,000.00 and the Bezalel Funding of $50,000.00 is collectively referred to as the “Obligations”);

 

WHEREAS,
as of the date hereof, the Pledgor is the direct registered and beneficial owner of 24,000,000 shares of common stock of the Company
(the “Shares”), of which Pledgor seeks to pledge 4,800,000 Shares pursuant to the terms of this Stock Pledge Agreement
(collectively, the “Pledged Shares”); and

 

WHEREAS,
in order to induce the Pledgee to make additional payments under the Purchaser Notes issued by the Pledgee or their assignors
in favor of the Company as provided for in the SPA and under the Convertible Debentures, the Pledgor has agreed to execute and
deliver to the Pledgee, as security for the Obligations of the Company to the Pledgee as set forth in the Convertible Debentures,
a pledge of all of the Pledgor’s right, title and interest in and to the Pledged Shares.

 

NOW,
THEREFORE, in consideration of the premises set forth above, the covenants and agreements hereinafter set forth, and other good
and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Pledgor and the Pledgee agree as set
forth below:

 

Defined
Terms. Except as otherwise defined herein, terms defined in the Convertible Debentures shall have the same meaning when used herein.

 

Grant
of Security. (a) As security for the Obligations, the Pledgor hereby pledges, assigns, transfers and delivers to the Pledgee the
Pledged Shares and hereby grants to the Pledgee a first priority lien on and a first priority security interest in the following
(collectively, the “Pledged Collateral”):

 

the
Pledged Shares and all capital, revenue, profit, income, gain or other property or proceeds, return on contribution or otherwise
with respect to the Pledged Shares;

 

all
other payments due or to become due to the Pledgor in respect of the Pledged Shares whether under any organizational document
or otherwise, whether as contractual obligations, damages or otherwise;

 

all
other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments
representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any
time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof.

 

    	 	3	 

    	 	 	 

    

 

Representations
and Warranties. The Pledgor represents and warrants that:

 

it
is the legal and beneficial owner of, and has good and marketable title to, the Pledged Collateral, subject to no pledge, lien,
mortgage, hypothecation, security interest, charge, option or other encumbrance whatsoever, except the lien and security interest
created and contemplated by this Pledge Agreement;

 

it
has full power, authority and legal right to execute, deliver and perform its obligations under this Pledge Agreement and to create
the lien and security interest contemplated by this Pledge Agreement;

 

the
Pledged Shares are “securities” governed by Article 8 of the UCC;

 

this
Pledge Agreement constitutes a valid obligation of the Pledgor, legally binding upon it and enforceable in accordance with its
terms;

 

no
consent of any other party (including equity interest holders of the Pledgor) is required in connection with the execution, delivery,
performance, validity, enforceability or enforcement of this Pledge Agreement, and no consent, license, approval or authorization
of, or registration or declaration with, any governmental authority, bureau or agency is required in connection with the execution,
delivery, performance, validity, enforceability or enforcement of this Pledge Agreement; and

 

the
execution, delivery and performance of this Pledge Agreement will not violate or contravene any provision of any existing law
or regulation or decree of any court, governmental authority, bureau or agency having jurisdiction in the premises or of the organizational
documents of the Pledgor or of any mortgage, indenture, security agreement, contract, undertaking or other agreement to which
the Pledgor is a party or which purports to be binding upon it or any of its properties or assets and will not result in the creation
or imposition of any lien, charge or encumbrance on, or security interest in, any of its properties or assets pursuant to the
provisions of any such mortgage, indenture, security agreement, contract, undertaking or other agreement.

 

Covenants.
The Pledgor hereby covenants that during the continuance of this Pledge Agreement:

 

it
shall warrant and defend the right and title of the Pledgee conferred by this Pledge Agreement in and to the Pledged Collateral
at the cost of the Pledgor against the claims and demands of all persons whomsoever;

 

it
shall not sell, assign, transfer, charge, pledge or encumber in any manner any part of the Pledged Collateral or suffer to exist
any encumbrance on the Pledged Collateral

 

it
shall not amend or modify any organizational document of the Company;

 

it
shall not vote the Pledged Shares of the Company in favor of the consolidation, merger, dissolution, liquidation or any other
corporate reorganization of the Company;

 

it
shall furnish to Pledgee from time to time statements and schedules further identifying and describing the Pledged Collateral
as Pledgee reasonably requests, all in reasonable detail; and

 

it
shall indemnify the Pledgee from, and hold it harmless against, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect
to any of the Pledged Collateral or in connection with the transaction contemplated by this Pledge Agreement.

 

    	 	4	 

    	 	 	 

    

 

Delivery
of Additional Collateral; Reduction of Pledged Shares.

 

If
the Pledgor shall become entitled to receive or shall receive any equity interests, option or rights, whether as an addition to,
in substitution of, or in exchange for any of the Pledged Shares, the Pledgor agrees to accept the same as the agent of the Pledgee
and to hold the same in trust for the benefit of the Pledgee and to deliver the same forthwith to the Pledgee in the exact form
received, with the endorsement of the Pledgor when necessary and/or appropriate undated Instruments of Transfer duly executed
in blank, and Irrevocable Proxies for any shares of capital stock so received, in substantially the forms attached hereto to be
held by the Pledgee, subject to the terms hereof, as additional collateral security for the Obligations.

 

Reduction
of Pledged Shares. The number of Pledged Shares shall be subject to reduction in an amount equal to the reduction in the principal
amount of the Convertible Debentures held by Bezalel divided by $55,555.55 (plus interest on such amount which accrues commencing
on the date of this Agreement) and multiplying the result by the number of Pledged Shares until the number of Pledged Shares is
zero (the “Pledged Share Reduction”). The Pledged Share Reduction shall be computed no less frequently than within
30 days after the last day of each fiscal quarter.

 

Intentionally
deleted.

 

General
Authority. The Pledgor hereby consents that, without the necessity of any reservation of rights against the Pledgor, and without
notice to or further assent by the Pledgor, any demand for payment of any of the Obligations made by the Pledgee may be rescinded
by the Pledgee and any of the Obligations continued, and the Obligations, or the liability of the Pledgor and/or the Company upon
or for any part thereof, or any other collateral security (including, without limitation, any collateral security held pursuant
to any of the other Convertible Debentures) or right of offset with respect thereto, may, from time to time, in whole or in part,
be renewed, extended, modified, accelerated, compromised, waived, surrendered, or released by the Pledgee, and the Convertible
Debentures, any guarantees and any other collateral security documents executed and delivered by the Pledgor and/or the Company
any or any other obligors in respect of the Obligations may be amended, modified, supplemented or terminated, in whole or in part,
as the Pledgee may deem advisable, from time to time, and any other collateral security at any time held by the Pledgee for the
payment of the Obligations (including, without limitation, any collateral security held pursuant to any other collateral security
document executed and delivered pursuant to the Convertible Debentures) may be sold, exchanged, waived, surrendered or released,
all without notice to or further assent by the Pledgor or the Company, which shall remain bound hereunder, notwithstanding any
such renewal, extension, modification, acceleration, compromise, amendment, supplement, termination, sale, exchange, waiver, surrender
or release. The Pledgor waives any and all notices of the creation, renewal, extension or accrual of any of the Obligations and
notice of or proof of reliance by the Pledgee upon this Pledge Agreement, and the Obligations, and any of them, shall conclusively
be deemed to have been created, contracted or incurred in reliance upon this Pledge Agreement, and all dealings between the Pledged
Company and the Pledgee shall likewise be conclusively presumed to have been had or consummated in reliance upon this Pledge Agreement.
The Pledgor waives diligence, presentment, protest, demand for payment and notice of default or non-payment to or upon the Pledgor
or the Pledged Company with respect to the Obligations.

 

UCC
Filings. The Pledgor does hereby authorize the Pledgee to do all things the Pledgee may reasonably deem to be necessary or
advisable in order to perfect or maintain the security interest granted by this Pledge Agreement including, but not limited to,
filing any and all Uniform Commercial Code financing statements or renewals thereof.

 

    	 	5	 

    	 	 	 

    

 

Remedies.
At any time after the occurrence of an Event of Default that has not yet been cured or in the event any of the security created
by or pursuant to this Pledge Agreement shall be imperiled or jeopardized in a manner deemed material by the Pledgee in its sole
and reasonable discretion, the Pledgee shall be entitled, without further notice to the Pledgor:

 

subject
to the limitations of the UCC (to the extent applicable), to sell, assign, transfer and deliver at any time the whole, or from
time to time any part, of the Pledged Collateral or any rights or interests therein, at public or private sale or in any other
manner, at such price or prices and on such terms as the Pledgee may deem appropriate, and either for cash, on credit, for other
property or for future delivery, at the option of the Pledgee, upon not less than 10 days’ written notice (which 10 day
notice is hereby acknowledged by the Pledgor to be reasonable) addressed to the Pledgor at its last address provided to the Pledgee
pursuant to this Pledge Agreement, but without demand, advertisement or other notice of any kind (all of which are hereby expressly
waived by the Pledgor). If any of the Pledged Collateral or any rights or interests thereon are to be disposed of at a public
sale, the Pledgee may, without notice or publication, adjourn any such sale or cause the same to be adjourned from time to time
by announcement at the time and place fixed for sale, and such sale may, without further notice, occur at the time and place identified
in such announcement. If any of the Pledged Collateral or any rights or interests therein shall be disposed of at a private sale,
the Pledgee shall be relieved from all liability or claim for inadequacy of price. At any such public sale the Pledgee may purchase
the whole or any part of the Pledged Collateral or any rights or interests therein so sold. Each purchaser, including the Pledgee
should it acquire the Pledged Collateral, at any public or private sale, shall hold the property sold free from any claim or right
of redemption, stay, appraisal or reclamation on the part of the Pledgor which are hereby expressly waived and released to the
extent permitted by applicable law. If any of the Pledged Collateral or any rights or interests therein shall be sold on credit
or for future delivery, the Pledged Collateral or rights or interests so sold may be retained by the Pledgee until the selling
price thereof shall be paid by the purchaser, but the Pledgee shall not incur any liability in case of failure of the purchaser
to take up and pay for the Pledged Collateral or rights or interests therein so sold. In case of any such failure, the Pledged
Collateral or rights or interests therein may again be sold on not less than 10 days’ written notice as aforesaid; and

 

to
exercise all voting and other equity interest rights at any meeting of any Pledged Company and exercise any and all rights of
conversion, exchange, subscription or any other rights, privileges or options pertaining to the Pledged Shares of the Pledged
Company as if it was the absolute owner thereof, including, without limitation, the right to exchange at its discretion, such
Pledged Shares upon the merger, consolidation, reorganization, recapitalization or other readjustment of the Company or, upon
the exercise by the Company or the Pledgee of any right, privilege or option pertaining to such Pledged Shares, and in connection
therewith, to deposit and deliver such Pledged Shares with 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.

 

No
Duty on Pledgee. The Pledgee 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.

 

Application
of Proceeds. All moneys collected or received by the Pledgee pursuant to this Pledge Agreement shall be applied to satisfy
the Obligations in the manner determined by the Pledgee.

 

Miscellaneous.

 

Further
Assurances. The Pledgor agrees that if this Pledge Agreement shall, in the reasonable opinion of the Pledgee, at any time
be deemed by the Pledgee, for any reason, insufficient in whole or in part to carry out the true intent and spirit hereof, it
shall execute or cause to be executed such other documents or deliver or cause to be delivered such further assurances as in the
opinion of the Pledgee may be required in order to more effectively accomplish the purposes of this Pledge Agreement including,
without limitation, an alternative pledge or such other alternative security as the Pledgee shall reasonably require.

 

    	 	6	 

    	 	 	 

    

 

Remedies
Cumulative and Not Exclusive; No Waiver. Each and every right, power and remedy herein given to the Pledgee shall be cumulative
and shall be in addition to every other right, power and remedy of the Pledgee now or hereafter existing at law, in equity or
by statute, and each and every right, power and remedy, whether herein given or otherwise existing, may be exercised from time
to time, in whole or in part, and as often and in such order as may be deemed expedient by the Pledgee, and the exercise or the
beginning of the exercise of any right, power or remedy shall not be construed to be a waiver of the right to exercise at the
same time or thereafter any other right, power or remedy. No failure, delay or omission by the Pledgee in the exercise of any
right or power or in the pursuance of any remedy accruing upon any breach or default by the Pledgor shall impair any such right,
power or remedy or be construed to be a waiver of any such right, power or remedy or to be an acquiescence therein; nor shall
the acceptance by the Pledgee of any security or of any payment of or on account of any of the amounts due from the Pledgor to
the Pledgee and maturing after any breach or default or of any payment on account of any past breach or default be construed to
be a waiver of any right with respect to any future breach or default or of any past breach or default not completely cured thereby.
In addition to the rights and remedies granted to it in this Pledge Agreement and in any other instrument or agreement securing,
evidencing or relating to any of the Obligations, the Pledgee shall have rights and remedies of a secured party under the UCC.

 

Successors
and Assigns. This Pledge 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 the Pledgee hereunder, inure to the benefit of the Pledgee,
its respective successors and assigns.

 

Waiver;
Amendment. None of the terms and conditions of this Pledge Agreement may be changed, waived, modified or varied in any manner
whatsoever unless in writing duly signed by the Pledgor and the Pledgee.

 

Invalidity.
If any provision of this Pledge Agreement shall at any time, for any reason, be declared invalid, void or otherwise inoperative
by a court of competent jurisdiction, such declaration or decision shall not affect the validity of any other provision or provisions
of this Pledge Agreement, or the validity of this Pledge Agreement as a whole and, to the fullest extent permitted by law, the
other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of
the Pledgee in order to carry out the intentions of the parties hereto as nearly as may be possible. The invalidity and unenforceability
of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

 

Notices.
All notices of request, demand and other communications hereunder shall be addressed, sent and deemed delivered in accordance
with the Convertible Debentures, including delivery of any such notices or communications to the Company on behalf of the Pledgor,
which Pledgor hereby agrees and acknowledges shall be valid and effective notice to the Pledgor hereunder.

 

Counterparts;
Electronic Delivery. This Pledge Agreement may be executed in any number of counterparts, each of which shall be deemed an
original, but all such counterparts together shall constitute one and the same instrument. Delivery of an executed counterpart
of this Pledge Agreement by facsimile or electronic transmission shall be deemed as effective as delivery of an originally executed
counterpart. In the event that the Pledgor delivers an executed counterpart of this Pledge Agreement by facsimile or electronic
transmission, the Pledgor shall also deliver an originally executed counterpart as soon as practicable, but the failure of the
Pledgor to deliver an originally executed counterpart of this Pledge Agreement shall not affect the validity or effectiveness
of this Pledge Agreement.

 

    	 	7	 

    	 	 	 

    

 

References.
References herein to Sections, Exhibits and Schedules are to be construed as references to sections of, exhibits to, and schedules
to, this Pledge Agreement, unless the context otherwise requires.

 

Headings.
In this Pledge Agreement, Section headings are inserted for convenience of reference only and shall not be taken into account
in the interpretation of this Pledge Agreement.

 

Termination.
When all of the Obligations shall have been fully satisfied, the Pledgee agrees that it shall forthwith release the Pledgor from
its Obligations hereunder and the Pledgee shall promptly execute and deliver to the Pledgor a proper instrument or instruments
acknowledging the satisfaction and termination of this Pledge Agreement, and the Irrevocable Proxies shall terminate forthwith
and be delivered to the Pledgor forthwith together with the other items furnished to the Pledgee pursuant to this Pledge Agreement.

 

Applicable
Law, Jurisdiction and Waivers.

 

Governing
Law. Except in the case of the Mandatory Forum Selection clause set forth in Section 14.2 hereof, this Pledge Agreement
shall be governed by and construed in accordance with the laws of the Florida, without regard to principles of conflicts of laws
thereof.

 

MANDATORY
FORUM SELECTION. Any dispute arising under, relating to, or in connection with the
Agreement or related to any matter which is the subject of or incidental to the Agreement (whether or not such claim is based
upon breach of contract or tort) shall be subject to the exclusive jurisdiction and venue of the state and/or federal courts located
in Broward County, FLOrida; provided, however, PLEDGEE may, at its sole option, elect to bring any
action in any other jurisdiction. This provision is intended to be a “mandatory” forum selection clause and
governed by and interpreted consistent with Florida law.

 

WAIVER
OF IMMUNITY. TO THE EXTENT THAT THE PLEDGOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM SUIT, JURISDICTION OF ANY COURT
OR ANY LEGAL PROCESS (WHETHER THROUGH ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION, EXECUTION OF A JUDGMENT, OR
FROM ANY OTHER LEGAL PROCESS OR REMEDY) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE PLEDGOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY
IN RESPECT OF ITS OBLIGATIONS UNDER THIS PLEDGE AGREEMENT.

 

WAIVER
OF JURY TRIAL. EACH OF THE PLEDGOR AND THE PLEDGEE HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT
BY ANY PARTY HERETO OR ANY BENEFICIARY HEREOF ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS PLEDGE
AGREEMENT.

 

[-signature
page follows-]

 

    	 	8	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed the day and year first above written.

 

	 	PLEDGOR:
	 	 
	 	 
	 	VAUGHAN
    DUGAN

 

    	 	9

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