Document:

Exhibit 10.2

 

Execution
Version

 

Continuing
Guaranty

 

This Continuing
Guaranty, dated as of October 1, 2014 (as the same may be amended, supplemented and/or otherwise modified from time to
time, this “Guaranty”), is made by the undersigned (“Guarantor”), in favor of White
Oak Global Advisors, LLC, a Delaware limited liability company, not in its individual capacity but solely as Administrative
Agent on behalf and for the benefit of itself and Lenders (as hereinafter defined) (in such capacity, “Administrative
Agent”), to induce Lenders (as hereinafter defined) to provide or to continue to provide certain financial accommodations
to Vaultlogix, LLC, a Delaware limited liability company (“Borrower”).

 

Recitals

 

A.        Pursuant to that
Loan and Security Agreement, dated as of the date hereof (as amended, supplemented and/or modified from time to time, the “Loan
Agreement”), among Borrower, the subsidiaries of Borrower from time to time party thereto, the entities from time to
time party thereto as lenders (collectively, “Lenders”) and Administrative Agent, Lenders will provide certain
financial accommodations to Borrower on the terms and conditions set forth in the Loan Agreement. Each capitalized term used but
not otherwise defined herein has the meaning ascribed thereto in the Loan Agreement.

 

B.          As an inducement
to Lenders to provide such financial accommodations to Borrower pursuant to the terms of the Loan Agreement, subject to the terms
and conditions set forth therein, Guarantor has agreed to provide to Administrative Agent for the benefit of Lenders, this Guaranty.
Guarantor, as the sole equity holder of Borrower, will receive a direct and substantial benefit from such financial accommodations.
The execution and delivery of this Guaranty is among the conditions to Lenders’ and Administrative Agent’s obligations
under the Loan Agreement.

 

Agreement

 

Now,
Therefore, for value received and in consideration, among other things, of the extension
of credit by Lenders to Borrower, Guarantor guarantees and promises to pay to Administrative Agent any and all Indebtedness (as
hereinafter defined), subject to the terms and provisions hereof, and agrees as follows:

 

1.          Indebtedness.
The term “Indebtedness” means any and all advances, debts, obligations (including, without limitation, any obligations
arising under Section 10.04 of the Loan Agreement), guaranties and liabilities of Borrower heretofore, now, or hereafter
made, incurred or created under the Loan Agreement and the Loan Documents related thereto, whether voluntary or involuntary and
however arising, whether direct or acquired by Administrative Agent or Lenders by assignment, succession, or otherwise, whether
due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, secured or unsecured, whether on
original, renewed, extended or revised terms, and whether Borrower may be liable individually or jointly with others, or whether
recovery upon any Indebtedness may be or hereafter becomes barred by any statute of limitations or whether any Indebtedness may
be or hereafter becomes otherwise unenforceable, and whether consisting of interest accrued at the rate applicable after the occurrence
of an Event of Default as provided under the Loan Agreement or interest accrued following the commencement of a proceeding involving
Borrower under any federal or state debtor relief statute).

 

    	 

    	 

    

 

2.          Guaranty.
If Borrower fails to pay any Indebtedness when due or declared to be due and payable subject to any grace or cure periods contained
in the Loan Agreement (whether as a result of the acceleration of such Indebtedness or otherwise) or perform any obligation, covenant,
agreement or condition contained in any Loan Document, then Guarantor unconditionally agrees (a) to pay to Administrative Agent
for the benefit of Lenders, or its order, on demand, in lawful money of the United States of America, all Indebtedness owing by
Borrower to Administrative Agent or Lenders and (b) to perform, or to cause Borrower to perform, each of Borrower’s obligations,
covenants, agreements or conditions in accordance with the provisions of the Loan Documents. In addition, Guarantor unconditionally
agrees to pay to Administrative Agent or its order, on demand, all costs and expenses, including, without limitation, all court
costs and reasonable fees and expenses of attorneys, paralegals and legal assistants, paid or incurred by Administrative Agent
or Lenders in any effort to collect all or any portion of the Indebtedness guaranteed hereunder from, or in prosecuting any action
against, Guarantor or otherwise seeking to enforce any of Guarantor’s obligations under this Guaranty, including, without
limitation, any of the foregoing incurred by Administrative Agent or Lenders in any bankruptcy or other insolvency proceeding
of Guarantor or Borrower (the foregoing, collectively, the “Collection Costs”).

 

3.          Right
to Amend or Modify Indebtedness and/or Collateral. Guarantor authorizes Administrative Agent or Lenders, at their sole discretion,
subject to the Loan Documents, with or without notice and without affecting Guarantor’s liability hereunder, from time to
time to: (a) change the time or manner of payment of any Indebtedness by renewal, extension, modification, acceleration or otherwise;
(b) alter or change any provision of any Indebtedness, including, but not limited to, the rate of interest thereon, and any document,
instrument or agreement (other than this Guaranty) evidencing, guaranteeing, securing or related to any Indebtedness; (c) release,
discharge, exonerate, substitute or add one or more parties liable on any Indebtedness or one or more endorsers, cosigners or
guarantors for any Indebtedness; (d) obtain collateral for the payment of any Indebtedness or any guaranty thereof; (e) release
existing or after-acquired collateral on such terms as Administrative Agent and Lenders, in their sole discretion, shall determine;
(f) apply any sums received from Borrower, any endorser, cosigner, other guarantor or other person liable on any Indebtedness
or from the sale or collection of collateral or its proceeds to any Indebtedness whatsoever owed or to be owed to Administrative
Agent or Lenders by Borrower in any order or amount and regardless of whether or not such Indebtedness is guaranteed hereby, is
secured by collateral or is due and payable; and (g) apply any sums received from Guarantor or from the sale of collateral granted
by Guarantor to any Indebtedness in any order or amount regardless of whether such Indebtedness is secured by collateral or is
due and payable.

 

4.          Waivers.
Guarantor hereby unconditionally and irrevocably acknowledges and agrees as follows:

 

(a)          Deficiency.
In the event that any Indebtedness is now or hereafter secured by a deed of trust, Guarantor waives any defense and
all rights and benefits of any laws purporting to state that no deficiency judgment may be recovered on certain real property purchase
money obligations and any laws purporting to state that no deficiency judgment may be recovered after a trustee’s sale under
a deed of trust. Guarantor acknowledges that a foreclosure by a trustee’s sale under
a deed of trust may result in the destruction of guarantor’s subrogation rights that
may otherwise exist and that a destruction of those rights may create a defense to a deficiency judgment against borrower and/or
guarantor. 

 

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Guarantor
waives all rights and defenses that guarantor may have because the indebtedness or any portion thereof is secured by real property.
This means, among other things:

 

(1)          administrative
agent or lenders may collect from guarantor without first foreclosing on any real or personal property pledged by borrower.

 

(2)          if
administrative agent or any lender forecloses on any real property collateral pledged by borrower:

 

A.          The
amount of the indebtedness may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if
the collateral is worth more than the sale price.

 

B.          Administrative
agent may collect from guarantor even if administrative agent or lenders, by foreclosing on the real property collateral, has destroyed
any right guarantor may have to collect from borrower.

 

This
is an unconditional and irrevocable waiver of any rights and defenses guarantor may have because the indebtedness is secured by
real property.

 

(b)          Election
of Remedies. To the maximum extent permitted by applicable law, Guarantor waives any defense based upon Guarantor’s
loss of a right against Borrower arising from Administrative Agent’s or a Lender’s election of a remedy on any Indebtedness
under bankruptcy or other debtor’s relief laws or under any other laws, including, but not limited to, any purporting to
reduce Administrative Agent’s or any Lender’s right against Guarantor in proportion to the principal obligation of
any Indebtedness. Without limiting the generality of the foregoing, to the maximum extent permitted by applicable law, Guarantor
waives all rights and defenses arising out of an election of remedies by Administrative Agent, even if that election of remedies,
such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has the effect of destroying Guarantor’s
rights of subrogation and reimbursement against Borrower.

 

(c)          Statute
of Limitations. To the maximum extent permitted by law, Guarantor waives the benefit of the statute of limitations affecting
Guarantor’s liability hereunder or the enforcement hereof.

 

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(d)          Action
Against Borrower and Collateral (and Other Remedies). To the maximum extent permitted
by applicable law, Guarantor waives all right to require Administrative Agent to: (i) proceed against Borrower, any endorser,
cosigner, other guarantor or other person or entity liable on any Indebtedness; (ii) join Borrower or any endorser, cosigner,
other guarantor or other person liable on any Indebtedness in any action or actions that may be brought and prosecuted by Administrative
Agent or Lenders solely and separately against Guarantor on any Indebtedness; (iii) proceed against any item or items of collateral
securing any Indebtedness or any guaranty thereof, or (iv) pursue or refrain from pursuing any other remedy whatsoever in Administrative
Agent’s or Lenders’ power.

 

(e)          Borrower’s
Defenses. Guarantor waives any defense arising by reason of any disability or other defense of Borrower, any successor or
any endorser, cosigner, other guarantor or other person liable on any Indebtedness, including, without limitation, any statute
of limitation defense that may be available to Borrower or such other person. Until all Indebtedness has been paid in full, even
though it may be in excess of the liability incurred hereby and Lenders have no further commitment to lend or extend financial
accommodations to Borrower, Guarantor shall not have any right of subrogation and Guarantor waives any benefit of and right to
participate in any collateral now or hereafter held by Administrative Agent or Lenders. Guarantor waives all presentments, demands
for performance, notices of nonperformance, protests, notices of protest, notices of dishonor, notices of sale of any collateral
securing any Indebtedness or any guaranty thereof, and notice of the existence, creation or incurring of new or additional Indebtedness.

 

(f)          Borrower’s
Financial Condition. Guarantor hereby recognizes, acknowledges and agrees that advances may be made from time to time with
respect to any Indebtedness without authorization from or notice to Guarantor even though the financial condition of Borrower,
any endorser, cosigner, other guarantor or other person liable on any Indebtedness may have deteriorated since the date of this
Guaranty. Guarantor waives all right to require Lenders to disclose any information with respect to any Indebtedness; the financial
condition, credit or character of Borrower, any endorser, cosigner, other guarantor or other person liable on any Indebtedness;
any collateral securing any Indebtedness or any guaranty thereof, or any action or inaction on the part of Lenders, Borrower or
any endorser, cosigner, other guarantor or other person liable on any Indebtedness. Guarantor hereby assumes the responsibility
for being informed of the financial condition, credit and character of Borrower and of all circumstances bearing upon the risk
of non-payment of any Indebtedness which diligent inquiry would reveal.

 

5.          Right
of Foreclosure. Administrative Agent or Lenders may foreclose, either by judicial foreclosure or by exercise of power of sale,
any deed of trust whether now or hereafter securing any Indebtedness even though such foreclosure may destroy or diminish Guarantor’s
rights against Borrower. Guarantor shall be liable to Administrative Agent or Lenders for any part of any Indebtedness remaining
unpaid after any such foreclosure whether or not such foreclosure was for fair market value.

 

6.          Subordination.
Any Indebtedness of Borrower or any endorser, cosigner, other guarantor or other person liable on any Indebtedness now or hereafter
owed to Guarantor is hereby subordinated to the Indebtedness. Such Indebtedness owed to Guarantor shall, if Administrative Agent
so requests, be collected, enforced and received by Guarantor as trustee for Administrative Agent and be paid over to Administrative
Agent for the benefit of Lenders on account of the Indebtedness but without reducing or affecting in any manner the liability
of Guarantor set forth herein. Should Guarantor fail to collect the proceeds of any such Indebtedness owed to it and pay the proceeds
to Administrative Agent, Administrative Agent, as Guarantor’s attorney-in-fact may do such acts and sign such documents
in Guarantor’s name as Administrative Agent considers necessary to effect such collection, and Guarantor hereby appoints
Administrative Agent as Guarantor’s attorney-in-fact for such purposes.

 

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7.          Invalid,
Fraudulent or Preferential Payments. Guarantor agrees that, to the extent Borrower or any endorser, cosigner, other guarantor
or other person liable on any Indebtedness makes a payment or payments to, or is credited for any payment or payments made for
or on behalf of Borrower to Administrative Agent or any Lender, which payment or payments, or any part thereof, is subsequently
invalidated, determined to be fraudulent or preferential, set aside or required to be repaid to any trustee, receiver, assignee
or any other party whether under any bankruptcy, state or federal law or under any common law or equitable cause or otherwise,
then, to the extent thereof, the obligation or part thereof intended to be satisfied thereby shall be revived, reinstated and
continued in full force and effect as if such payment or payments had not originally been made or credited.

 

8.          Joint
and Several Obligations; Independent Obligations. If more than one Guarantor guaranties the Indebtedness of Borrower, the
obligations of such Guarantors are joint and several. Each Guarantor’s obligations are independent of the obligations of
Borrower or any endorser, cosigner, other guarantor or other person liable on any Indebtedness and a separate action or actions
may be brought and prosecuted against each Guarantor on any Indebtedness.

 

9.          Application
of Amounts. In the event that Guarantor ever shall become indebted to Administrative Agent or any Lender other than in respect
of the Indebtedness, all payments received by Administrative Agent or any Lender from any Person other than Guarantor on account
of the Indebtedness shall, unless Administrative Agent and any other Lender otherwise agrees in writing in its discretion, be
deemed as having been applied first to such indebtedness of the Guarantor then due other than in respect of the Indebtedness.

 

10.        Financial
Information. Guarantor hereby agrees to deliver or cause to be delivered to Administrative Agent and Lenders, promptly upon
Administrative Agent’s request therefor: (a) a copy of Guarantor’s most recently filed Federal and state tax returns;
and (b) such other financial information concerning Guarantor as Administrative Agent (acting reasonably) may from time to time
request.

 

11.        Acknowledgment
of Receipt. Receipt of a true copy of this Guaranty is hereby acknowledged by Guarantor. Guarantor understands and agrees
that this Guaranty shall not constitute a commitment of any nature whatsoever by Administrative Agent or Lenders (or any of them)
to hereafter extend credit to Borrower but is a material inducement to Lenders to provide such credit. Guarantor agrees that this
Guaranty shall be effective with or without notice from Administrative Agent or Lenders of their acceptance hereof.

 

12.        Continuing
Guaranty. This Guaranty is a continuing guaranty. Revocation of this Guaranty
shall be effective only after written notice thereof is personally received by an officer of Administrative Agent at the originating
office indicated below or actually received at the originating office by United States certified or registered mail, return receipt
requested and postage prepaid. Notice shall be effective at any office of Administrative Agent should the originating office no
longer be in existence. Revocation shall be effective at the close of Administrative Agent’s business day when such notice
is actually received. Any revocation shall be effective only as to the revoking party and shall not affect that party’s
obligation with respect to any Indebtedness existing before such revocation is effective.

 

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13.         Covenants
of Guarantor. Guarantor covenants and agrees that:

 

(a)         on the Effective
Date, Guarantor shall duly execute and deliver to Administrative Agent the Parent Guarantor Security Agreement;

 

(b)         any release by Administrative
Agent of its Liens on all assets of Guarantor (other than those assets the subject of the Parent Guarantor Pledge Agreement) in
accordance with Section 2.12 of the Loan Agreement shall not release, terminate, amend, modify or otherwise affect the obligations
of Guarantor under this Guaranty or the Parent Guarantor Pledge Agreement;

 

(c)         so long as all Obligations
(other than Unasserted Obligations) have not been paid in full:

 

(i)          if
Administrative Agent has previously released its Liens on all assets of Guarantor (other than those assets of Guarantor the subject
of the Guarantor Pledge Agreement) in accordance with Section 2.12 of the Loan Agreement, and, following such release, an Event
of Default occurs, then Guarantor shall, promptly upon (and in no event later than five Business Days following) demand therefor
by Administrative Agent, grant, pledge and otherwise assign, pursuant to one or more Collateral Documents substantially in the
form of the Parent Guarantor Security Agreement, a Lien to Administrative Agent in all of the assets previously the subject of
the Parent Guarantor Security Agreement to secure all of its obligations under this Guaranty; provided that Guarantor shall
have no obligation to grant, pledge or otherwise assign any such Lien to Administrative Agent if, prior to the occurrence of any
such Event of Default, either: (A) at the end of any Fiscal Month ending on or after January 31, 2015, Borrower has demonstrated,
based upon the financial statements delivered by Borrower pursuant to Section 6.01(c) with respect to any such Fiscal Month, to
the satisfaction of Administrative Agent (acting reasonably) that the Specified Consolidated Leverage Ratio as of the end of any
such Fiscal Month was equal to or less than 2.50 to 1.00; or (B) at the end of any Fiscal Month ending on or after August 31, 2015,
the average monthly recurring revenue of Borrower and its Subsidiaries, on a consolidated basis, for the period commencing on January
1, 2015 and ending on the last day of such Fiscal Month is equal to or greater than $950,000.00;

 

(ii)        Guarantor
shall not incur any Debt from any third party (other than Administrative Agent and Lenders): (A) that is secured by any Lien on
the following assets: (1) the Equity Interests of Borrower, DPS and/or U.S. Data and the Proceeds thereof (the “Specified
Excluded Assets”); and/or (2) the assets of Borrower or any of its Subsidiaries and the Proceeds thereof; (B) that is
secured by any assets of Guarantor other than the Accounts of Guarantor and the Proceeds thereof; provided that, if Administrative
Agent has previously released its Liens on all assets of Guarantor (other than the Specified Excluded Assets) in accordance with
Section 2.12 of the Loan Agreement and Guarantor’s obligation to grant, pledge or otherwise assign a Lien in favor of Administrative
Agent pursuant to Section 13(c)(i) hereof is terminated in accordance with the proviso to Section 13(c)(i) hereof, then such third-party
Debt may be secured by any assets of Guarantor other than the Specified Excluded Assets; or (C) if the outstanding principal amount
of such Debt, together with all other Debt of Guarantor (other than Debt owing to Administrative Agent and Lenders) exceeds 90.00%
of the net amount of Guarantor’s Accounts; and

 

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(iii)      if
Borrower has elected to comply with the provisions of Section 6.19 of the Loan Agreement by requiring that Guarantor (A)
increase the amount of cash on its balance sheet resulting from Guarantor’s operations in an amount at least equal to the
Specified Cure Amount, (B) sell or issue Equity Interests in Guarantor and have the net cash proceeds of such sale or issuance
at least equal the Specified Cure Amount or (C) cause to be issued a letter-of-credit under the Guarantor Facility, in form and
substance acceptable to Administrative Agent, for the benefit of Administrative Agent and in an original face amount at least equal
to the Specified Cure Amount, then Guarantor agrees to (1) promptly upon the receipt of such cash or net proceeds, to pay such
cash or net proceeds directly to Administrative Agent or (2) promptly cause such letter-of-credit to be issued.

 

Any failure by Guarantor to comply with the
provisions of this Section 13 shall result in an immediate Event of Default under the Loan Agreement.

 

14.        Further
Assurances. Guarantor shall, from time to time, at the expense of Guarantor, promptly execute and deliver all further documents
and take all further action that may be necessary, or that Administrative Agent may reasonably request, to enable Administrative
Agent to exercise and enforce its rights and remedies hereunder.

 

15.        Non-Reliance.
In executing this Guaranty, Guarantor is not relying upon nor has Guarantor relied upon any statement or representation made by
Lenders or Administrative Agent, or any employee, agent or representative of Lenders or Administrative Agent, with respect to
the status, financial condition or any other matters related to Borrower or the relationship between Borrower and Administrative
Agent or Lenders. Guarantor is presently informed of the financial condition of Borrower and of all other circumstances which
a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Indebtedness. Guarantor has reviewed each of
the Loan Documents and has taken and will take all steps in Guarantor’s opinion necessary or appropriate to be informed
on a continuing basis of changes or potential changes affecting Borrower or the Indebtedness. Without limiting the foregoing,
Guarantor agrees that it shall keep informed from sources other than Lenders or Administrative Agent of Borrower’s financial
condition, the status of any guarantors or of any security for the Indebtedness, and all other circumstances that could bear upon
the risk of nonpayment of the Indebtedness and acknowledges and agrees that Lenders or Administrative Agent have no obligation
whatsoever now or in the future to provide any such information to Guarantor.

 

16.        Corporate,
Limited Liability or Partnership Authority. If Guarantor is a corporation, limited liability partnership or company or partnership,
Administrative Agent need not inquire into the power of Guarantor or the authority of its officers, directors, partners or agents
acting or purporting to act in its behalf and any credit granted in reliance upon the purported exercise of such power or authority
is guarantied hereunder.

 

17.        Assignment.
Administrative Agent or Lenders may, with or without notice, assign this Guaranty in whole or in part. This Guaranty shall inure
to the benefit of Administrative Agent and Lenders, their respective successors and assigns, and shall bind Guarantor and Guarantor’s
heirs, executors, administrators, successors and assigns.

 

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18.        Governing
Law; Jurisdiction; Etc.

 

(a)         Governing
Law. This Guaranty shall be governed by, and construed in accordance with, the laws of the State of New York, without regard
to principles of conflicts of law other than New York general obligations law 5-1401 and 5-1402).

 

(b)         Submission
to Jurisdiction. Guarantor irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction
of the courts of the supreme court of the state of new york sitting in new york county in the borough of manhattan and of the
united states district court for the southern district of new york, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this guaranty or any other loan document to which guarantor is a party, or for recognition
or enforcement of any judgment, and guarantor irrevocably and unconditionally agrees that all claims in respect of any such action
or proceeding may be heard and determined in such state courts or, to the fullest extent permitted by applicable law, in such
federal courts. Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this guaranty or in any other
loan document shall affect any right that administrative agent or any lender may otherwise have to bring any action or proceeding
relating to this guaranty or any other loan document against any loan party or any of its properties in the courts of any other
jurisdiction.

 

(c)          Waiver
of Venue. Guarantor irrevocably
and unconditionally waives, to the maximum extent permitted by applicable law, any objection that it may now or hereafter have
to the laying of venue of any action or proceeding arising out of or relating to this guaranty or any other loan document in any
court referred to in subsection (b) of this section 18. Guarantor hereby irrevocably waives, to the maximum extent permitted by
applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(d)          Waiver
of Trial by Jury. To the extent
permitted by applicable laws, each of the parties hereto hereby waives its right to a jury trial of any claim. 

 

19.          Attorneys’
Fees. Guarantor shall pay to Administrative Agent all costs and expenses, including, but not limited to, reasonable attorneys’
fees, incurred by Administrative Agent in connection with the preparation, administration or enforcement of, including any bankruptcy
appeal or the enforcement of any judgment or any refinancing or restructuring of Guarantor’s obligations under, this Guaranty
or any document, instrument of agreement executed with respect to, evidencing or securing the Indebtedness hereunder.

 

20.          Captions.
The captions and headings of this Guaranty are for convenience of reference only and shall not affect the interpretation of
this Guaranty.

 

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21.          Addresses
for Notices. All notices and other communications provided for hereunder shall be in writing or by facsimile and addressed,
delivered or transmitted to such party at its address or facsimile number set forth, in the case of Administrative Agent or Lenders,
at their respective addresses as provided in the Loan Agreement, and in the case of Guarantor,
at the address specified below its signature hereto, or in each case, at such other address or facsimile number as may be designated
by such party in a notice to the other party. Any notice, if mailed and properly addressed with postage prepaid or if properly
addressed and sent by pre-paid courier service, shall be deemed given when received or, if applicable, refused; any notice, if
transmitted by facsimile, shall be deemed given when transmitted.

 

22.          Severability.
Should any one or more provisions of this Guaranty be determined to be illegal or unenforceable, all other provisions shall remain
effective.

 

23.          References
to Administrative Agent. The definition of “Administrative Agent” as used herein includes White
Oak Global Advisors, LLC, its subsidiaries, affiliates and assigns.

 

[Document
continues with signature page.]

 

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In
Witness Whereof, this Continuing Guaranty has been executed by Guarantor as of the date first written above.

 

	Guarantors:	 
	 	 
	Intercloud Systems, Inc.,	 
	a Delaware corporation	 
	 	 	 
	By: 	/s/
    Mark E. Munro	 
	Name: 	Mark E. Munro	 
	Title: 	Chief Executive Officer	 
	 	 	 
	Address for Notices:	 
	Intercloud Systems, Inc.	 
	1030 Broad Street, Suite 102

Shrewsbury, NJ 07702

	 
	Attn: __________	 

 

Continuing Guaranty (VaultLogix)Exhibit
10.3

 

Execution
Version

 

Pledge
Agreement

 

This
Pledge Agreement, dated as of October 1, 2014 (as the same may be amended, supplemented
and/or otherwise modified from time to time, this “Agreement”), is made among the parties identified as “Pledgors”
on the signature pages hereto and such other parties as may become Pledgors hereunder after the date hereof (each, a “Pledgor”
and, collectively, the “Pledgors”) and White Oak Global Advisors,
LLC, a
Delaware limited liability company, not in its individual capacity but solely as Administrative Agent on behalf and for the benefit
of itself and Lenders (as hereinafter defined) (in such capacity, “Administrative Agent”).

 

Recitals

 

A.
VaultLogix, LLC, a Delaware limited liability company (“Borrower”), the several entities from time to time
party thereto as guarantors, the several entities from time to time party thereto as lenders (collectively, “Lenders”)
and Administrative Agent have entered into are or are in the process of entering into that certain Loan and Security Agreement,
dated as of the date hereof (as the same may be amended, supplemented and/or otherwise modified from time to time, the “Loan
Agreement”), pursuant to which Lenders have agreed to make certain financial accommodations to Borrower from time to
time on the terms and subject to the conditions set forth therein.

 

B.
InterCloud Systems, Inc., a Delaware corporation (“Parent”), has entered into or is in the process of entering
into that certain Continuing Guaranty, dated as of the date hereof (as the same may be amended, supplemented and/or otherwise
modified from time to time, the “Guaranty”), pursuant to which Parent has guaranteed, in favor of Administrative
Agent, all obligations of Borrower under the Loan Agreement on the terms and subject to the conditions set forth therein.

 

C.
Pledgors are the record and beneficial owners of equity interests in each of the companies (individually, a “Pledged
Company,” and collectively, the “Pledged Companies”) listed on Exhibit A attached hereto and
incorporated herein by this reference, and each owns, as of the date hereof, the percentage interest of the outstanding equity
securities (whether consisting of capital stock, membership interests or otherwise) in each Pledged Company indicated thereon
(each such equity interest in a Pledged Company owned by a Pledgor, a “Pledged Share” and all such shares collectively,
the “Pledged Shares”), which Exhibit A may be amended or supplemented pursuant to the terms of this
Agreement.

 

D.
As further security for the Secured Obligations (as defined below), Administrative Agent and Lenders have requested that the Pledgors
pledge their interests in the Pledged Shares to the Administrative Agent.

 

E.
In connection with the foregoing, Administrative Agent and Lenders have required the Pledgors to enter into this Agreement.

 

    	 

     

    

 

 

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

 

Article
I 

Definitions

 

Section
1.1. Definitions. Each term used herein that is defined in the UCC (as hereinafter defined) but is not separately defined
herein has the meaning set forth in the UCC; subject to the foregoing, each capitalized term used but not otherwise defined herein
has the meaning ascribed thereto in the Loan Agreement. In addition, (a) the rules of construction set forth in Section 1.02
of the Loan Agreement shall apply as if fully set forth herein, mutatis mutandis, and (b) as used herein:

 

“Act”
has the meaning ascribed thereto in Section 6.2(c).

 

“Charter
Documents” means: (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or
equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction) of such Person; (b) with respect to
any limited liability company, the certificate or articles of formation or organization and operating agreement (or equivalent
or comparable constitutive documents with respect to any non-U.S. jurisdiction) of such Person; and (c) with respect to any partnership,
joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation
or organization of such Person; and any agreement, instrument, filing or notice with respect thereto filed in connection with
such Person’s formation or organization with the applicable Governmental Authority in the jurisdiction of its formation
or organization and, if applicable, any certificate or articles of formation or organization of such Person.

 

“Pledged
Collateral” has the meaning ascribed thereto in Section 2.1.

 

“Secured
Obligations” means all Obligations of Pledgors under all Loan Documents (including, without limitation, the Guaranty),
to which they are a party.

 

“UCC”
means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York; provided that,
in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of Administrative
Agent’s security interest in any collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other
than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related
to such provisions.

 

    	2

     

    

 

Article
II

Pledge

 

Section
2.1. Grant of Security Interest. As security for the full, prompt and complete payment when due (whether at stated
maturity, by acceleration or otherwise) of all of the Secured Obligations, each Pledgor hereby pledges, hypothecates,
assigns, charges, mortgages, delivers, and transfers to Administrative Agent, and hereby grants to Administrative Agent a
continuing security interest in all of such Pledgor’s right, title and interest (whether now or hereafter existing or
acquired) in and to the following (collectively, the “Pledged Collateral”):

 

(a)
the Charter Documents of each Pledged Company and the Pledged Shares and the certificates (if any) representing such Pledged
Shares for each Pledged Company, and all dividends, cash, instruments, and other property or proceeds from time to time
received, receivable, or otherwise distributed in respect of or in exchange for any or all of such Pledged Shares,
including:

 

(i) all
voting trust certificates (if any) held by such Pledgor evidencing its beneficial interest in any Pledged Shares subject to any
voting trust; and

 

(ii)
all additional shares of equity interests of each Pledged Company and voting trust certificates from time to time acquired by
such Pledgor in any manner (which additional shares shall be deemed to be part of Pledged Shares), and the certificates representing
such additional shares and all dividends, cash, instruments, and other property or proceeds from time to time received, receivable,
or otherwise distributed in respect of or in exchange for any or all of such additional shares; and

 

(b)
the rents, issues, profits, returns, income, allocations, distributions and proceeds of and from any and all of the
foregoing.

 

At
the request of Administrative Agent, each Pledgor shall cause each Pledged Company to register Pledgor’s pledge of the Pledged
Collateral to Administrative Agent on the books of such Pledged Company.

 

Section
2.2. Continuing Security Interest. This Agreement shall create a continuing security interest in the Pledged Collateral and
shall:

 

(a) remain
in full force and effect until all Secured Obligations are paid in full;

 

(b)
be binding upon Pledgors and their respective successors, transferees and assigns; and

 

(c)
inure, together with the rights and remedies of Administrative Agent hereunder, to the benefit of Administrative Agent.

 

Upon
the date that the Secured Obligations are paid in full, the security interest granted herein shall terminate and all rights to
the Pledged Collateral shall revert to Pledgors. Upon any such termination, Administrative Agent shall, at Borrower’s sole
expense, deliver to the applicable Pledgor, without any representations, warranties or recourse of any kind whatsoever, any and
all certificates and instruments representing or evidencing such Pledgor’s interest in any Pledged Company that had been
previously delivered by such Pledgor to Administrative Agent, together with all other Pledged Collateral pledged by such Pledgor
held by Administrative Agent hereunder, free and clear of all liens arising from or through Administrative Agent or any of the
Lenders, and execute and deliver to such Pledgor, at Borrower’s sole expense, such documents as such Pledgor shall reasonably
request to evidence such termination.

 

    	3

     

    

 

Section
2.3. No Assumption. This Agreement is executed and delivered to Administrative Agent, for collateral security purposes only.
Notwithstanding anything herein to the contrary:

 

(a)
each Pledgor shall remain liable under the contracts and agreements included in the Pledged Collateral to the extent set forth
therein and shall perform all of its duties and obligations under such contracts and agreements to the same extent as if this
Agreement had not been executed;

 

(b)
the exercise by Administrative Agent of any of its rights hereunder shall not release any Pledgor from any of its duties or obligations
under any such contracts or agreements included in the Pledged Collateral; and

 

(c)
Administrative Agent shall not have any obligation or liability under any such contracts or agreements included in the Pledged
Collateral by reason of this Agreement, nor shall Administrative Agent be obligated to perform any of the obligations or duties
of any Pledgor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder, and Administrative
Agent shall not hereunder or otherwise (i) assume any obligation or liability under or in connection with the Pledged Shares to
any Person, and any such assumption is hereby expressly disclaimed, or (ii) be deemed to have or be vested with the duties, responsibilities
or powers of the management of any Pledged Company.

 

Article
III

Representations
and Warranties

 

Section
3.1. Representations and Warranties. Each Pledgor hereby represents and warrants to Administrative Agent as follows:

 

(a)
Organization. Such Pledgor has full power and authority to enter into and perform its obligations under this Agreement.

 

(b)
Legal Name. The legal name of such Pledgor is set forth on the signature pages to this Agreement.

 

(c)
Capacity; Due Authorization; Non-Contravention. The execution, delivery and performance by such Pledgor of this Agreement
and each other Loan Document executed or to be executed by it have been duly authorized by all necessary action by such Pledgor,
and do not contravene the Organizational Documents of such Pledgor; and in each case do not:

 

(i) contravene
any contractual restriction, law or governmental regulation or court decree or order binding on or affecting such Pledgor; or

 

(ii) result
in, or require the creation or imposition of, any Lien on any of such Pledgor’s properties except as contemplated hereby.

 

    	4

     

    

 

(d)
Filing. No presently effective UCC financing statement covering any of the Pledged Collateral is on file in any public
office, except for UCC financing statements in favor of Administrative Agent and in connection with Permitted Liens.

 

(e)
Ownership; No Liens. Such Pledgor is the legal and beneficial owner of, and has good and valid title to (and has full right
and authority to pledge and assign) all Pledged Collateral pledged by such Pledgor hereunder, free and clear of all Liens, except
the Lien granted herein to Administrative Agent and Permitted Liens. None of the Pledged Collateral of such Pledgor has been transferred
in violation of the securities registration, securities disclosure or similar laws of any jurisdiction to which such transfer
may be subject.

 

(f)
Equity Interest. The equity class, certificate numbers, number of shares or membership interests, as applicable, and percentage
ownership of the Pledged Shares of such Pledgor are set forth on Exhibit A attached hereto. Such Pledgor agrees to amend
Exhibit A attached hereto from time to time within ten (10) Business Days of receiving any additional securities with respect
to the Pledged Shares, or of obtaining knowledge of circumstances causing the percentage ownership to have changed.

 

(g)
Certificate. No interest of such Pledgor in any Pledged Company is represented by a stock certificate or other similar
instrument, except, if any, such certificates or instruments (together with all necessary instruments of transfer or assignment,
duly executed in blank) as have been delivered to Administrative Agent and are held in its possession (and such Pledgor covenants
and agrees that any such certificates or instruments hereafter received by such Pledgor with respect to any of the Pledged Collateral
(together with all necessary instruments of transfer or assignment, duly executed in blank) will be promptly delivered to Administrative
Agent).

 

(h)
Information. All information with respect to the Pledged Collateral set forth in any schedule, certificate or other writing
at any time furnished by such Pledgor to Administrative Agent is and shall be true and correct in all material respects as of
the date furnished.

 

(i)
Authorization; Approval. No authorization, approval, or other action by, and no notice to or filing with, any Governmental
Authority, or any other Person is required either:

 

(i)
for the pledge by such Pledgor of any Pledged Collateral pursuant to this Agreement or for the execution, delivery and performance
of this Agreement by such Pledgor; or

 

(ii)
for the exercise by Administrative Agent of (A) the voting or other rights provided for in this Agreement, or (B) the remedies
in respect of the Pledged Collateral pursuant to this Agreement, except, in the case of this clause (ii)(B), as may be required
in connection with a disposition of such equity interests or membership interests by laws affecting the offering and sale of securities
generally, or as may be required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and regulations issued relating
thereto.

 

    	5

     

    

 

(j) First
Priority Lien. The pledge and grant of a security interest in, and delivery pursuant to this Pledge Agreement of, the
Pledged Collateral of such Pledgor (to the extent consisting of certificated equity interests) creates a valid first
priority perfected security interest on and in such Pledged Collateral, and the proceeds thereof, securing the payment of the
Secured Obligations, subject to no prior Lien, assuming continued possession of the original certificates, if any, evidencing
the Pledged Shares constituting such Pledged Collateral by Administrative Agent. Separately, the security interest on and in
the Pledged Collateral of such Pledgor will become a valid first priority Lien upon the due filing of a UCC financing
statement describing the Pledged Collateral in the applicable filing offices in the State in which such Pledgor was
formed.

 

Article
IV

Covenants

 

Section
4.1. Protect Pledged Collateral; Further Assurances. Except in accordance with the terms of the Loan Documents, Pledgors shall
not sell, assign, transfer, pledge or otherwise encumber the Pledged Collateral in any manner (except for the pledge granted herein
to Administrative Agent and in connection with Permitted Liens). Each Pledgor shall warrant and defend the right and title granted
by this Agreement to Administrative Agent in and to the Pledged Collateral of such Pledgor (and all right, title and interest
represented by such Pledged Collateral) against the claims and demands of all Persons whomsoever, but, except as otherwise expressly
provided in the Loan Documents, nothing contained herein shall prevent any Pledged Company from issuing additional equity interests.
Each Pledgor agrees that at any time, and from time to time, such Pledgor shall promptly execute and deliver all further instruments,
and take all further action that may be necessary or desirable, as Administrative Agent may reasonably request, in order to perfect
and protect any security interest granted or purported to be granted hereby or to enable Administrative Agent to exercise and
enforce its rights and remedies hereunder with respect to any of the Pledged Collateral of such Pledgor as set forth in Article
VI. Each Pledgor further agrees that Administrative Agent may file, or cause to be filed, any financing or continuation statements
under the UCC with respect to the security interests granted hereby, and that such financing or continuation statements need not
contain such Pledgor’s signature thereon.

 

Section
4.2. Voting Rights.

 

(a) Other
than during the existence of an Event of Default:

 

(i)
each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral
or any part thereof for any purpose not inconsistent with or in contravention of the provisions of the Loan Documents; and

 

(ii)
subject to and limited by the provisions of the Loan Documents, each Pledgor shall, to the extent not prohibited by the Loan
Agreement, be entitled to receive and retain and use any and all dividends and interest; provided that any and all (A)
dividends or other payments paid or payable other than in cash in respect of, and instruments and other property received,
receivable or otherwise distributed in respect of, or in exchange for, any Pledged Collateral, and (B) dividends and other
distributions paid or payable in cash in respect of any Pledged Collateral in connection with a partial or total liquidation
or dissolution shall, except as provided in the Loan Agreement, in each of the foregoing cases to the extent otherwise
constituting Pledged Collateral, forthwith be delivered to Administrative Agent to hold as Pledged Collateral and shall, if
received by any Pledgor, be received in trust for the benefit of Administrative Agent, be segregated from the other property
or funds of such Pledgor, and be forthwith delivered to Administrative Agent as Collateral in the same form as so
received.

 

    	6

     

    

 

(b)
If an Event of Default shall have occurred and be continuing and Administrative Agent shall have notified Pledgors in writing
of Administrative Agent’s intention to exercise its voting power under Section 4.2, then each Pledgor agrees:

 

(i)
that Administrative Agent may exercise (to the exclusion of such Pledgor) the voting power and all other incidental rights of
ownership with respect to the Pledged Collateral of such Pledgor and such Pledgor hereby grants Administrative Agent, from the
date hereof until the Secured Obligations are paid in full and the termination of the commitments of the Lenders to extend credit
under the Loan Documents, an irrevocable proxy, coupled with an interest exercisable under such circumstances, to vote such Pledged
Collateral; and

 

(ii)
promptly to deliver to Administrative Agent such additional proxies and other documents as may be necessary to allow Administrative
Agent to exercise such voting power.

 

All
payments and proceeds which may at any time and from time to time be held by any Pledgor but which such Pledgor is obligated to
deliver to Administrative Agent shall be held by such Pledgor separate and apart from its other property in trust for Administrative
Agent. Unless an Event of Default shall have occurred and be continuing and Administrative Agent shall have given the notice referred
to in this Section 4.2, each Pledgor shall have the exclusive voting power with respect to its respective Pledged Collateral
and Administrative Agent shall, upon the written request of any Pledgor, promptly deliver such proxies and other documents, if
any, as shall be reasonably requested by such Pledgor which are necessary to allow such Pledgor to exercise voting power with
respect to such Pledged Collateral; provided that no vote shall be cast, or consent, waiver or ratification given or action
taken by any Pledgor that would impair any Pledged Collateral or be inconsistent with or violate any provision of the Loan Documents
without the prior written consent of Administrative Agent.

 

Section
4.3. Filings; Recordings. Pledgors shall execute such documents, and do such other acts and things, all as Administrative
Agent may from time to time reasonably request to establish and maintain a valid, perfected pledge of, and security interest in,
the Pledged Collateral in favor of Administrative Agent.

 

Section
4.4. Information. Pledgors shall furnish Administrative Agent such information concerning the Pledged Collateral as Administrative
Agent may from time to time reasonably request, and will permit Administrative Agent and its designees, from time to time during
normal business hours, to inspect, audit and make copies of and extracts from all records and all other papers in the possession
of any Pledgor which pertain to the Pledged Collateral, and shall upon the request of Administrative Agent, deliver to Administrative
Agent copies of all of such records and papers.

 

    	7

     

    

 

Section
4.5. Notice of Dissolution. Pledgors shall promptly notify Administrative Agent in writing upon learning of the occurrence
of any event which might or would cause termination and/or dissolution of any Pledged Company.

 

Article
V

Administrative
Agent

 

Section
5.1. Administrative Agent Appointed Attorney-in-Fact. Each Pledgor hereby irrevocably appoints Administrative Agent to be
such Pledgor’s attorney-in-fact, with full authority in the place and stead of such Pledgor and in the name of such Pledgor
or otherwise, from time to time in Administrative Agent’s discretion after the occurrence and during the continuance of
an Event of Default, to take any action and to execute any instrument which Administrative Agent may reasonably deem necessary
or advisable to accomplish the purposes of this Agreement, including:

 

(a)
after the occurrence and during the continuance of an Event of Default, to ask demand, collect, sue for, recover, compromise,
receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Pledged Collateral;

 

(b)
to receive, endorse, and collect any drafts or other instruments, documents and chattel paper, in connection with clause (a) above;
and

 

(c)
to file any claims or take any action or institute any proceedings which Administrative Agent may reasonably deem necessary or
desirable for the collection of any of the Pledged Collateral or otherwise to enforce the rights of Administrative Agent with
respect to any of the Pledged Collateral.

 

Each
Pledgor hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this Section 5.1, being
coupled with an interest, is irrevocable.

 

Section
5.2. Administrative Agent May Perform. If any Pledgor fails to perform any agreement contained herein, Administrative Agent
may itself perform, or cause performance of, such agreement for the benefit of itself and not for such Pledgor and the expenses
of Administrative Agent incurred in connection therewith shall be payable by Borrower pursuant to Section 6.4.

 

Section
5.3. Administrative Agent Has No Duty. The powers conferred on Administrative Agent hereunder are solely to protect its interest
in the Pledged Collateral and shall not impose any duty on it to exercise any such powers. Administrative Agent shall have no
duty as to any Pledged Collateral or responsibility for (a) ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relative to any Pledged Collateral, whether or not Administrative Agent has or
is deemed to have knowledge of such matters, or (b) taking any necessary steps to preserve rights against prior parties or any
other rights pertaining to any Pledged Collateral. Without limiting the generality of the preceding sentence, Administrative Agent
shall be deemed to have exercised reasonable care in the custody and preservation of any of the Pledged Collateral if it takes
such action for that purpose as a Pledgor reasonably requests in writing at times other than upon the occurrence and during the
continuance of any Event of Default. Failure of Administrative Agent to comply with any such request at any time shall not in
itself be deemed a failure to exercise reasonable care.

 

    	8

     

    

 

Section
5.4. Notice of this Agreement. Pledgors shall notify each Pledged Company of the existence of this Agreement by sending to
it a notice in substantially the form attached hereto as Exhibit B within three (3) Business Days of the date of its execution
and delivery of this Agreement.

 

Section
5.5. Irrevocable Proxy. Each Pledgor shall execute and deliver an irrevocable proxy coupled with an interest substantially
in the form attached hereto as Exhibit C with respect to each Pledged Company.

 

Article
VI

Defaults
and Remedies

 

Section
6.1. Events of Default. It shall be an “Event of Default” hereunder if any Event of Default (as defined in any
of the Loan Documents) shall occur.

 

Section
6.2. Certain Remedies. Subject to the terms of the Loan Documents, if any Event of Default shall have occurred and be continuing:

 

(a)
Administrative Agent may, in addition to other rights and remedies provided for herein or otherwise available to it, (i) exercise
in respect of the Pledged Collateral all the rights and remedies of a secured party under the UCC (whether or not the UCC applies
to the affected Pledged Collateral) and/or (ii) without notice except as specified below, sell the Pledged Collateral or any part
thereof in one or more parcels at public or private sale in compliance with applicable laws, at any of Administrative Agent’s
offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as Administrative Agent may deem commercially
reasonable. Pledgors agree that, to the extent notice of sale shall be required by law, at least ten (10) days’ prior notice
shall be given to any Pledgor of the time and place of any public sale or the time after which any private sale is to be made
and that such notice shall constitute reasonable notification. Administrative Agent shall not be obligated to make any sale of
Pledged Collateral regardless of notice of sale having been given. Administrative Agent may adjourn any public or private sale
from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at
the time and place to which it was so adjourned.

 

(b)
Administrative Agent may:

 

(i)
transfer all or any part of the Pledged Collateral into the name of Administrative Agent or its nominee, with or without disclosing
that such Pledged Collateral is subject to the Lien hereunder;

 

(ii) notify
the parties obligated on any of the Pledged Collateral to make payment to Administrative Agent of any amount due or to become
due thereunder;

 

(iii)
enforce collection of any of the Pledged Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof,
or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature
of any party with respect thereto;

 

    	9

     

    

 

(iv)
endorse any checks, drafts, or other writings in any Pledgor’s name to allow collection of the Pledged Collateral;

 

(v) take
control of any proceeds of the Pledged Collateral; and

 

(vi)
execute (in the name, place and stead of the applicable Pledgor) endorsements, assignments and other instruments of conveyance
or transfer with respect to all or any of the Pledged Collateral.

 

(c)
If, at any time when Administrative Agent shall determine to exercise its right to sell the whole or any part of the Pledged Collateral
hereunder, such Pledged Collateral or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered
under Securities Act of 1933, as amended (as so amended the “Act”), Administrative Agent may, in its discretion
(subject only to applicable requirements of law), sell such Pledged Collateral or part thereof by private sale in such manner
and under such circumstances as Administrative Agent may reasonably deem necessary or advisable, but subject to the other requirements
of this Section 6.2(c), and shall not be required to effect such registration or cause the same to be effected. Without
limiting the generality of the foregoing, in any such event Administrative Agent may, in its sole discretion, (i) in accordance
with applicable securities laws, proceed to make such private sale notwithstanding that a registration statement for the purpose
of registering such Pledged Collateral or part thereof could be or shall have been filed under the Act; and (ii) restrict such
sale to a purchaser who will represent and agree that such purchaser is purchasing for its own account, for investment, and not
with a view to the distribution or sale of such Pledged Collateral or part thereof. In addition to a private sale as provided
above in this Section 6.2(c), if any of the Pledged Collateral shall not be freely distributable to the public without
registration under the Act at the time of any proposed sale hereunder, then Administrative Agent shall not be required to effect
such registration or cause the same to be effected but may, in its sole and reasonable discretion (subject only to applicable
requirements of law), require that any sale hereunder (including a sale at auction) be conducted subject to such restrictions
as Administrative Agent may, in its sole discretion, deem necessary or appropriate in order that such sale (notwithstanding, any
failure so to register) may be effected in compliance with the Bankruptcy Code and other laws affecting the enforcement of creditors’
rights and the Act and all applicable state securities laws.

 

(d)
Pledgors agree that a breach of any covenants contained in this Article VI with the effect of denying Administrative Agent the
realization of the practical benefits to be provided by this Agreement will cause irreparable injury to Administrative Agent,
that in such event Administrative Agent would have no adequate remedy at law in respect of such breach and, as a consequence,
that in such event each and every covenant contained in this Article VI shall be specifically enforceable against Pledgors, and
each Pledgor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants
except for a defense that the Secured Obligations are not then due and payable.

 

    	10

     

    

 

Section
6.3. Compliance with Restrictions. Each Pledgor agrees that in any sale of any of the Pledged Collateral, whether at a
foreclosure sale or otherwise, Administrative Agent is hereby authorized to comply with any limitation or restriction in
connection with such sale as it may be advised by counsel is necessary in order to avoid any violation of applicable
law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that
such prospective bidders and purchasers have certain qualifications and restrict such prospective bidders and purchasers to
persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the
distribution or resale of such Pledged Collateral), or in order to obtain any required approval of the sale or of the
purchaser by any Governmental Authority, and each Pledgor further agrees that such compliance shall not result in such sale
being considered or deemed not to have been made in a commercially reasonable manner, nor shall Administrative Agent be
liable or accountable to any Pledgor for any discount allowed by the reason of the fact that such Pledged Collateral is sold
in compliance with any such limitation or restriction.

 

Section
6.4. Application of Proceeds. All amounts and proceeds received under any enforcement or collection under this Agreement will
be applied in reduction of the Secured Obligations in the order set forth in the Loan Agreement, and each Pledgor irrevocably
waives the right to direct the application of such proceeds and acknowledges and agrees that Administrative Agent shall have the
continuing and exclusive right to apply and reapply any and all such proceeds in the manner set forth in the Loan Agreement, notwithstanding
any entry to the contrary upon any of its books and records.

 

Article
VII

General
Provisions

 

Section
7.1. Continuing Agreement.

 

(a)
This Agreement shall be a continuing agreement in every respect and shall remain in full force until the Secured Obligations are
satisfied. Upon the date that the Secured Obligations are paid in full, this Agreement and the liens and security interests of
Administrative Agent hereunder shall be automatically terminated and Administrative Agent shall, upon the request and at the expense
of the Pledgors, forthwith release all of its liens and security interests hereunder and shall execute and deliver all UCC termination
statements and/or other documents reasonably requested by the Pledgors evidencing such termination. Notwithstanding the foregoing,
all releases and indemnities provided hereunder shall survive termination of this Agreement.

 

(b)
This Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole
or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by Administrative Agent or
any Lender as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, all as though
such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded
or must be restored or returned, all reasonable costs and expenses (including, without limitation, reasonable attorneys’
fees and disbursements) incurred by Administrative Agent or any Lender in defending and enforcing such reinstatement shall be
deemed to be included as a part of the Secured Obligations.

 

Section
7.2. Amendments; Waivers. This Agreement and the provisions hereof may not be amended, waived, modified, changed,
discharged or terminated except by a written notice instrument executed by each Pledgor and Administrative Agent; provided that
Administrative Agent may not amend, waive, modify, change, discharge or terminate any provision of this Agreement without the
written consent of the parties required under the Loan Agreement.

 

    	11

     

    

 

Section
7.3. Right to Amend or Modify Obligations and/or Pledged Collateral. Each Pledgor authorizes Administrative Agent or Lenders,
at their sole discretion, subject to the Loan Documents, with or without notice and without affecting Pledgor’s liability
hereunder, from time to time to: (a) change the time or manner of payment of any Secured Obligations by renewal, extension, modification,
acceleration or otherwise; (b) alter or change any provision of any Secured Obligations, including, but not limited to, the rate
of interest thereon, and any document, instrument or agreement (other than this Agreement) evidencing, guaranteeing, pledging,
securing or related to any Secured Obligations; (c) release, discharge, exonerate, substitute or add one or more parties liable
on any Secured Obligations or one or more endorsers, cosigners or pledgors for any Secured Obligations; (d) obtain collateral
for the payment of any Secured Obligations or any pledge thereof; (e) release existing or after-acquired collateral on such terms
as Administrative Agent and Lenders, in their sole discretion, shall determine; (f) apply any sums received from Borrower, any
endorser, cosigner, other pledgor or other person liable on any Secured Obligations or from the sale or collection of collateral
or its proceeds to any Secured Obligations whatsoever owed or to be owed to Administrative Agent or Lenders by Borrower in any
order or amount and regardless of whether or not such Obligations are pledged hereby, are secured by collateral or are due and
payable; and (g) apply any sums received from Pledgor or from the sale of collateral granted by Pledgor to any Secured Obligations
in any order or amount regardless of whether such Secured Obligations are secured by collateral or is due and payable.

 

Section
7.4. Waivers. Each Pledgor hereby unconditionally and irrevocably acknowledges and agrees as follows:

 

(a)
Deficiency. In the event that any Obligations are now or hereafter secured by a deed of trust, each Pledgor waives any
defense and all rights and benefits of any laws purporting to state that no deficiency judgment may be recovered on certain real
property purchase money obligations and any laws purporting to state that no deficiency judgment may be recovered after a trustee’s
sale under a deed of trust. Each Pledgor acknowledges that a foreclosure by a trustee’s
sale under a deed of trust may result in the destruction of Pledgor’s subrogation rights that may otherwise exist and that
a destruction of those rights may create a defense to a deficiency judgment against borrower and/or pledgor.

 

 

Each
Pledgor waives all rights and defenses that Pledgor may have because the Obligations or any portion thereof is secured by real
property. This means, among other things:

 

(1)
Administrative Agent or Lenders may collect from each Pledgor without first foreclosing on any real or personal property pledged
by Borrower.

 

    	12

     

    

 

(2)
If Administrative Agent or any Lender forecloses on any real property collateral pledged by Borrower: 

 

A.
The amount of the Obligations may be reduced only by the price for which that collateral is sold at the foreclosure sale, even
if the collateral is worth more than the sale price.

 

B.
Administrative Agent may collect from each Pledgor even if administrative agent or lenders, by foreclosing on the real property
collateral, has destroyed any right Pledgor may have to collect from borrower.

  

This
is an unconditional and irrevocable waiver of any rights and defenses Pledgor may have because the obligations are secured by
real property.

 

(b)
Election of Remedies. To the maximum extent permitted by applicable law, each Pledgor waives any defense based upon Pledgor’s
loss of a right against Borrower arising from Administrative Agent’s or a Lender’s election of a remedy on any Obligations
under bankruptcy or other debtor’s relief laws or under any other laws, including, but not limited to, any purporting to
reduce Administrative Agent’s or any Lender’s right against Pledgor in proportion to the principal obligation of any
Obligations. Without limiting the generality of the foregoing, to the maximum extent permitted by applicable law, each Pledgor
waives all rights and defenses arising out of an election of remedies by Administrative Agent, even if that election of remedies,
such as a nonjudicial foreclosure with respect to security for a pledged obligation, has the effect of destroying Pledgor’s
rights of subrogation and reimbursement against Borrower.

 

(c)
Statute of Limitations. To the maximum extent permitted by law, each Pledgor waives the benefit of the statute of limitations
affecting Pledgor’s liability hereunder or the enforcement hereof.

 

(d)
Action Against Borrower and Collateral (and Other Remedies). To the maximum extent permitted by applicable law, each Pledgor
waives all right to require Administrative Agent to: (i) proceed against Borrower, any endorser, cosigner, other pledgor or other
person or entity liable on any Indebtedness; (ii) join Borrower or any endorser, cosigner, other pledgor or other person liable
on any Obligations in any action or actions that may be brought and prosecuted by Administrative Agent or Lenders solely and separately
against each Pledgor on any Obligations; (iii) proceed against any item or items of collateral securing any Obligations or any
pledge or guaranty thereof, or (iv) pursue or refrain from pursuing any other remedy whatsoever in Administrative Agent’s
or Lenders’ power.

 

    	13

     

    

 

(e)
Borrower’s Defenses. Each Pledgor waives any defense arising by reason of any disability or other defense of Borrower,
any successor or any endorser, cosigner, other pledgor or other person liable on any Indebtedness, other than payment in full
of the Obligations, including, without limitation, any statute of limitation defense that may be available to Borrower or such
other person. Until all Obligations have been paid in full, even though it may be in excess of the liability incurred hereby and
Lenders have no further commitment to lend or extend financial accommodations to Borrower, no Pledgor shall have any right
of subrogation and each Pledgor waives any benefit of and right to participate in any collateral now or hereafter held by Administrative
Agent or Lenders. Each Pledgor waives all presentments, demands for performance, notices of nonperformance, protests, notices
of protest, notices of dishonor, notices of sale of any collateral securing any Obligations or any pledge or guaranty thereof,
and notice of the existence, creation or incurring of new or additional Indebtedness.

 

(f)
Borrower’s Financial Condition. Each Pledgor hereby recognizes, acknowledges and agrees that advances may be made
from time to time with respect to any Obligations without authorization from or notice to Pledgor even though the financial condition
of Borrower, any endorser, cosigner, other pledgor or other person liable on any Obligations may have deteriorated since the date
of this Agreement. Each Pledgor waives all right to require Lenders to disclose any information with respect to any Obligations;
the financial condition, credit or character of Borrower, any endorser, cosigner, other pledgor or other person liable on any
Obligations; any collateral securing any Indebtedness or any pledge or guaranty thereof, or any action or inaction on the part
of Lenders, Borrower or any endorser, cosigner, other pledgor or other person liable on any Obligations. Each Pledgor hereby assumes
the responsibility for being informed of the financial condition, credit and character of Borrower and of all circumstances bearing
upon the risk of non-payment of any Obligations which diligent inquiry would reveal.

 

Section
7.5. Protection of Pledged Collateral. Administrative Agent may from time to time, at its option, perform any act which any
Pledgor agrees hereunder to perform and which such Pledgor shall fail to perform after being requested in writing so to perform
(it being understood that no such request need be given after the occurrence and during the continuance of any Event of Default)
and Administrative Agent may from time to time take any other action which Administrative Agent reasonably deems necessary for
the maintenance, preservation or protection of any of the Pledged Collateral or of its security interest therein, all such actions
being for the express benefit of Administrative Agent and not such Pledgor.

 

Section
7.6. Notices. All notices required or permitted to be given under this Agreement shall be given at the address specified
below, or at such other address as may be designated in a written notice to the other parties hereto:

 

	 	if
    to the Pledgors:	InterCloud
    Systems, Inc.
	 	 	1030
    Broad Street, Suite 102
	 	 	Shrewsbury,
    NJ 07702
	 	 	Attention:
                                          
	 	 	 
	 	if
    to Administrative Agent:	White
    Oak Global Advisors, LLC
	 	 	3
    Embarcadero Center, Suite 550
	 	 	San
    Francisco, CA 94111
	 	 	Attention:
    Barbara J.S. McKee

 

Section
7.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which where so executed and
delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in
making proof of this Agreement to produce or account for more than one such counterpart. Delivery of executed counterparts of
this Agreement by facsimile or other electronic means shall be effective as an original.

 

    	14

     

    

 

Section
7.8. Severability; Headings. Wherever possible each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under such
law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

 

Section
7.9. Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors, assigns and transferees, provided that no Pledgor may assign its rights or obligations hereunder to any Person.

 

Section
7.10. Governing Law; Jurisdiction; Etc.

 

(a)
This Agreement shall be governed by, and construed in accordance with, the internal laws of the state of New York.

 

(b)
Each of the parties hereto irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction
of the courts of the state of New York sitting in New York county in the borough of manhattan and of the United States District
Court for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out
of or relating to this agreement or any other Loan Document to which each is a party, or for recognition or enforcement of any
judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action
or proceeding may be heard and determined in such state courts or, to the fullest extent permitted by applicable Laws, in such
federal courts. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this agreement
or in any other Loan Document shall affect any right that administrative agent or any lender may otherwise have to bring any action
or proceeding relating to this agreement or any other Loan Document against any loan party or any of its properties in the courts
of any other jurisdiction.

 

(c)
Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable Laws, any objection
that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement
or any other Loan Document in any court referred to in subsection (b) of this section 7.10. each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by applicable laws, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

 

    	15

     

    

 

(d)
Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 7.6. nothing in this
agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable laws.

 

Section
7.11. Waiver of Jury Trial.

 

To
the extent permitted by applicable Laws, each of the parties hereto hereby waives its right to a jury trial of any Claim. 

 

Section
7.12. Entire Agreement. This Agreement, the Loan Documents and the other documents relating to the Secured Obligations represent
the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written,
if any, including, but not limited to, any commitment letters or correspondence relating to the Loan Documents, any other documents
relating to the Secured Obligations, or the transactions contemplated herein and therein.

 

Section
7.13. Other Security. To the extent that any of the Secured Obligations are now or hereafter secured by property other
than the Pledged Collateral or by a guarantee, endorsement or property of any Person other than Pledgor, then Administrative Agent
and the Lenders shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence of any
Event of Default, and Administrative Agent and the Lenders shall have the right, in their sole discretion, to determine which
rights, security, liens, security interests or remedies Administrative Agent shall at any time pursue, relinquish, subordinate,
modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations or any of
the rights of Administrative Agent or the Lenders under this Agreement, under any of the Loan Documents or under any other document
relating to the Secured Obligations.

 

Section
7.14. Joinder. At any time after the date of this Agreement, one or more additional Persons may become party hereto
by executing and delivering to Administrative Agent a joinder agreement substantially in the form of Exhibit D attached
hereto (a “Joinder Agreement”). Immediately upon such execution and delivery of a Joinder Agreement (and without
any further action), each such additional Person will become a party to this Agreement as a “Pledgor” and have all
of the rights and obligations of a Pledgor hereunder and this Agreement and the schedules hereto shall be deemed amended by such
Joinder Agreement.

 

Section
7.15. Rights of Required Lenders. All rights of Administrative Agent hereunder, if not exercised by Administrative
Agent, may be exercised by the Required Lenders.

 

[Signature
Page Follows.]

 

    	16

     

    

 

In
Witness Whereof, the parties hereto have caused this pledge agreement to be duly executed and delivered by their respective
duly authorized persons as of the date first written above.

 

Pledgors:

InterCloud
Systems, Inc.,

a Delaware
corporation 

 

	By:	/s/
    Mark E. Munro	 
	Name:	Mark
    E. Munro	 
	Title:	CEO	 

 

U.S. Data Security Acquisition,
LLC,

a Delaware limited liability company

 

	By:	/s/
    Lawrence Sands	 
	Name:	
    Lawrence Sands	 
	Title:	Secretary	 

 

Pledge
Agreement (VaultLogix)

 

    	 

     

    

 

Accepted
and agreed:

 

White
Oak Global Advisors, LLC, 

a Delaware
limited liability company, as Administrative Agent

 

	By:	/s/
    Barbara J. S. McKee	 
	Name:	Barbara
    J. S. McKee	 
	Title:	Managing
    Member	 

 

 

Pledge
Agreement (VaultLogix)

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