Document:

exhibit10-2.htm

    SHARE
      PLEDGE AGREEMENT

     

    AGREEMENT
      made as of the 8th day of
      August,
      2007.

     

    B
      E T W E E N:

     

    EIGER
      TECHNOLOGY, INC., a corporation governed under the laws of the Province
      of Ontario

     

    (hereinafter
      called the "Parent")

     

    -
      and
–

     

    ETIFF
      HOLDINGS, LLC, a corporation governed under the laws of the State of
      Delaware (hereinafter called the "Holder")

     

    -
      and
–

     

    FOUNDATION
      VENTURE LEASING INC., in Trust., a corporation governed under the laws
      of the Province of Ontario (hereinafter called the
      "Debtor")

     

    WHEREAS:

     

    
      	
              (A)  

            	
              The
                Debtor has purchased 14,021,600 Shares of common stock (collectively,
                the
                "Purchased Shares") of Racino Royale, Inc. (the
                "Corporation");

            

    

     

    
      	
              (B)  

            	
              The
                Debtor has executed and delivered a promissory note (the
                "Note") in the principal amount of $671,080, dated as
                of
                the date hereof, evidencing the outstanding balance of the purchase
                price
                owing for the Pledged Shares which Note is to be retired on the following
                basis:

            

    

     

    
      	
              (1)  

            	
              $70,000
                on or before August 31, 2007;

            

    

     

    
      	
              (2)  

            	
              $133,694
                on or before September 30, 2007;
                and

            

    

     

    
      	
              (3)  

            	
              $233,693
                on or before February 1, 2008; and

            

    

     

    
      	
              (4)  

            	
              $233,693
                on or before September 1, 2008.

            

    

     

    
      	
              (C)  

            	
              The
                Debtor has agreed to pledge 12,619,460 of the Purchased Shares (the
                "Pledged Shares") to the Holder as security for the
                performance by the Debtor of its obligations pursuant to the terms
                of the
                Note;

            

    

     

    NOW
      THEREFORE in consideration of the mutual covenants set out in this
      agreement and for other good and valuable consideration (the receipt and
      sufficiency of which are hereby acknowledged), the parties agree as
      follows:

     

    ARTICLE 1

     

    DEFINITIONS

     

    All
      expressions and definitions contained in this agreement shall have the same
      meaning as the corresponding expressions and definitions contained in the
Personal Property Security Act (Ontario), unless specifically modified
      by this agreement.  In addition, the following words and expressions
      shall have the following meanings:

     

    
      	
              (a)  

            	
              "Act"
                means the Personal Property Security Act (Ontario), as amended or
                re- enacted from time to time;

            

    

     

    
      	
              (b)  

            	
              "Arm's
                Length" has the meaning given thereto in the Income Tax
                Act (Canada), as amended or re-enacted from time to
                time;

            

    

     

    
      	
              (c)  

            	
              "Corporation"
                means Racino Royale, Inc., a corporation governed under the laws
                of the
                State of Nevada;

            

    

     

    
      	
              (d)  

            	
              "Distributions"
                shall have the meaning attributed to such term in section 6.1(a)(iii);

            

    

     

    
      	
              (e)  

            	
              "Event
                of Default" shall have the meaning attributed to such term in 7.1;

            

    

     

    
      	
              (f)  

            	
              "Note"
                shall have the meaning attributed to such term in Recital (B);

            

    

     

    
      	
              (g)  

            	
              "Obligations"
                means the obligations, indebtedness and liability of the Debtor referred
                to in Section 2.1;

            

    

     

    
      	
              (h)  

            	
              "Pledged
                Shares" means 12,619,460 of the Purchased
                Shares;

            

    

     

    
      	
              (i)  

            	
              "Purchased
                Shares" shall have the meaning attributed to such term in Recital
                (A); and

            

    

     

    
      	
              (j)  

            	
              "Security
                Interest" means the security interest referred to in Section 2.1.

            

    

     

    ARTICLE 2

     

    THE
      SECURITY INTEREST

     

    2.1  Grant
      of Security Interest

     

    As
      security for the payment and satisfaction of any and all obligations, liability
      and indebtedness of the Debtor to the Holder including, without limitation,
      under the Note and this agreement (such obligations, indebtedness and liability
      being hereinafter collectively called the "Obligations"), the
      Debtor hereby grants to the Holder a continuing and specific security interest
      in and to the Pledged Shares and any proceeds thereof (the "Security
      Interest").

     

    2.2  Attachment
      of Security Interest

     

    The
      Debtor hereby agrees that the Security Interest in the Pledged Shares shall
      attach upon the execution of this agreement by the parties.

     

    2.3  Delivery
      of Pledged Shares

     

    The
      Debtor agrees that it shall direct the transfer agent of the Corporation to
      deliver to the Holder the share certificates representing in aggregate the
      Pledged Shares upon issuance thereof, and the Debtor shall deliver to the Holder
      an executed power of attorney upon the execution of this Agreement.

     

    2.4  Release
      of Pledged Shares

     

    The
      Holder shall deliver to the Debtor the share certificate for the Pledged Shares,
      released and discharged from the Security Interest in the following amounts
      upon
      satisfaction of the following amounts under the Note:

     

    
      	
              (a)  

            	
              $70,000
                on or before August 31, 2007 – 1,402,140 Pledge Shares
                released

            

    

     

    
      	
              (b)  

            	
              $133,694
                on or before September 30, 2007 – 1,869,566 Pledge Shares
                released

            

    

     

    
      	
              (c)  

            	
              $233,
                693 on or before February, 1 2008 – 4,673,877 Pledge Shares
                released

            

    

     

    
      	
              (d)  

            	
              $233,
                693 on or before September, 1 2008 -4,673,877 Pledge Shares
                released

            

    

     

    ARTICLE 3

     

    REPRESENTATIONS
      AND WARRANTIES OF THE DEBTOR

     

    3.1  No
      Breach of Applicable Law

     

    The
      Debtor hereby represents and warrants to the Holder that the execution and
      delivery of this agreement by the Debtor and the observance and performance
      of
      the terms and conditions of this agreement on the part of the Debtor to be
      observed and performed do not constitute a violation of applicable law or a
      violation of any contract or obligation to which the Debtor is a party or by
      which the Debtor is bound, nor do any of the foregoing constitute a default
      or
      would, with the passage of time or the giving of notice or both, or otherwise,
      constitute a default under any contract or obligation to which the Debtor is
      a
      party or by which the Debtor is bound.

     

    3.2  Title

     

    The
      Debtor hereby represents and warrants to the Holder that the Debtor is the
      owner
      of the Pledged Shares and is entitled to pledge the Pledged Shares to the
      Holder, free of any mortgage, hypothec, charge, lien, security interest or
      other
      encumbrance.

     

    ARTICLE 4

     

    COVENANTS
      OF THE DEBTOR

     

    4.1  General
      Covenants

     

    The
      Debtor hereby covenants and agrees with the Holder that, so long as the
      Obligations or any part thereof remain outstanding, without the prior written
      consent of the Holder, such consent not to be unreasonably
      withheld:

     

    
      	
              (a)  

            	
              No
                Encumbrances: the Debtor will not assume or have outstanding, except
                to
                the Holder, any mortgage, charge, lien, security interest or other
                encumbrance on all or any part of the Pledged Shares;
                and

            

    

     

    
      	
              (b)  

            	
              Sale
                and Assignment of Pledged Shares: the Debtor will not sell, transfer,
                assign, dispose of, or in any other manner deal with any of the Pledged
                Shares

            

    

     

    ARTICLE 5

     

    COVENANTS
      OF THE HOLDER

     

    The
      HOLDER hereby covenants and agrees with the Holder that, so long as there is
      not
      an Event of Default, as defined herein that is not cured as provided in Section
      7 hereof.

     

    
      	
              (a)  

            	
              No
                Transfer; The Holder will not take any actions to effect a
                transfer of the Pledged Shares.

            

    

     

    
      	
              (b)  

            	
              No
                Pledge of the Pledged Shares; The Holder
                will not in any way pledge or hypothecate the Pledged
                Shares.

            

    

     

    ARTICLE 6

     

    RIGHTS
      BEFORE DEFAULT

     

    6.1  Voting
      Rights; Dividends; etc.

     

    
      	
              (a)  

            	
              Unless
                and until an Event of Default has occurred and has not been waived
                in
                writing by the Holder:

            

    

     

    
      	
              (i)  

            	
              the
                Pledged Shares shall remain registered in the name of the
                Debtor;

            

    

     

    
      	
              (ii)  

            	
              the
                Debtor shall be entitled to exercise any and all voting and/or consensual
                rights and powers relating or pertaining to the Pledged Shares or
                any part
                thereof for any purpose not inconsistent with the terms of this agreement;
                and

            

    

     

    
      	
              (iii)  

            	
              the
                Debtor shall be entitled to receive all cash or other distributions
                payable in respect of the Pledged Shares (the
                "Distributions").

            

    

     

    
      	
              (b)  

            	
              Unless
                otherwise provided for herein, upon the occurrence of an Event of
                Default,
                all rights of the Debtor to exercise the voting and/or consensual
                rights
                and powers and/or to receive the Distributions shall cease and the
                Holder
                shall thereafter be entitled to exercise all such voting rights and/or
                consensual rights and to receive all
                Distributions.

            

    

     

    ARTICLE 7

     

    EVENTS
      OF DEFAULT

     

    7.1  Event
      of Default

     

    Each
      of
      the following events constitutes an event of default under this agreement (each
      an "Event of Default"):

     

    
      	
              (a)  

            	
              Failure
                to Make Payment: The Debtor fails to pay when due any amount owing
                by the
                Debtor to the Holder pursuant to the terms of the Note and such failure
                to
                pay is not cured within forty-five (45) days of the date upon which
                any
                such amount is due.

            

    

     

    
      	
              (b)  

            	
              Default
                Under Share Pledge Agreement:  The Debtor fails to observe or
                perform any of the covenants and obligations, in accordance with
                its
                terms, any of the Obligations other than as provided in subsection
                7.1(a)
                and such non-observance or non- performance has not been corrected
                within
                twenty (20) days of receiving written notice from the Holder to cure
                such
                default.

            

    

     

    
      	
              (c)  

            	
              Appointment
                of Receiver:  The insolvency of the Debtor or the appointment of
                a receiver, manager, trustee, liquidator, for any of the property
                of the
                Debtor or an assignment for the benefit of the Debtor's creditors
                or a
                distress, execution or other similar process is levied against all
                or any
                material part of the Pledged
                Shares.

            

    

     

    
      	
              (d)  

            	
              Enforceability
                of Other Mortgages and Charges:  Any mortgage, charge, lien,
                security interest or other encumbrance affecting any real or personal
                property of the Debtor becomes
                enforceable.

            

    

     

    
      	
              (e)  

            	
              Bankruptcy:  The
                institution of a proceeding in bankruptcy against the Debtor, whether
                voluntarily or involuntarily, or the institution of proceedings by
                the
                Debtor to obtain relief against his
                creditors.

            

    

     

    
      	
              (f)  

            	
              Insecurity:  The
                Holder, acting reasonably, deems itself to be insecure with respect
                to the
                Security Interest.

            

    

     

    ARTICLE 8

     

    REMEDIES
      UPON DEFAULT

     

    8.1  Effect
      of Default

     

    If
      any
      event of default referred to in 7.1 occurs, the Security
      Interest shall become immediately enforceable.

     

    8.2  Remedies

     

    If
      the
      Security Interest becomes enforceable, the provisions of Part V of the Act
      shall
      govern the rights, remedies and obligations of the parties in respect of the
      default in question, except as otherwise provided in this
      Article.  Notwithstanding anything to the contrary contained in the
      Act or in any other agreement between the parties, upon the Security Interest
      becoming enforceable:

     

    
      	
              (a)  

            	
              Acceleration:  The
                Holder may at its option declare that the whole or any part of any
                indebtedness forming a part of the Obligations is immediately due
                and
                payable in full.

            

    

     

    
      	
              (b)  

            	
              Foreclosure:  At
                its option the Holder may retain all or part of the Pledged Shares
                in full
                satisfaction of the Obligations.

            

    

     

    ARTICLE 9

     

    POWER
      OF ATTORNEY

     

    The
      Debtor constitutes and appoints the Holder with full power of substitution,
      as
      the Debtor's true and lawful attorney-in-fact with full power and authority
      in
      the place of the Debtor and in the name of the Debtor or in its own name, from
      time to time in the Holder's discretion after an Event of  Default, to
      take any and all appropriate action and to execute any and all documents and
      instruments as, in the opinion of such attorney acting reasonably, may be
      necessary or desirable to accomplish the purposes of this
      agreement.  These powers are coupled with an interest and are
      irrevocable until this agreement is terminated and the Security Interest created
      by this agreement are released.  Nothing in this section affects the
      right of the Holder as secured party, or any other person on the Holder's
      behalf, to sign and file or deliver (as applicable) all such financing
      statements, financing change statements, notices, verification agreements and
      other documents relating to the Pledged Shares and this agreement as the Holder
      or such other person considers appropriate.

     

    ARTICLE 10

     

    GENERAL
      CONTRACT PROVISIONS

     

    10.1  Remedies
      Cumulative

     

    All
      remedies of the Holder at law and pursuant to the provisions of this agreement
      shall be cumulative and not in the alternative.

     

    10.2  Security
      in Addition

     

    The
      Security Interest is in addition to and not in substitution for any other
      security now or hereafter held by the Holder.

     

    10.3  Performance
      by the Holder

     

    Upon
      the
      failure by the Debtor to perform any of his obligations under this agreement,
      the Holder may, at its option, perform such obligations and the reasonable
      expenses of the Holder in so doing shall be payable by the Debtor to the Holder,
      upon demand.

     

    10.4  Waiver

     

    The
      Holder may waive any default by the Debtor in the observance or the performance
      of any of the Obligations or covenants under this agreement.  No act
      or omission of the Holder in respect of any default by the Debtor shall extend
      to or be taken in any manner whatsoever to affect any subsequent default of
      the
      Debtor or the rights of the Holder resulting there from.

     

    10.5  Extensions
      of Time

     

    In
      the
      event that the Security Interest becomes enforceable, the Holder may grant
      extensions of time and other indulgences, take and give up securities, accept
      compositions, grant releases and discharges, release any part of the Pledged
      Shares to third parties and otherwise deal with any person as the Holder may
      see
      fit without prejudice to the liability of the Debtor or to the Holder's right
      to
      hold, realize and deal with the Pledged Shares.

     

    10.6  Notices

     

    All
      notices required or permitted to be given hereunder or under the Act by one
      party to the other shall be given in writing by personal delivery or by
      registered mail, postage prepaid, addressed to such other party or delivered
      to
      such other party as follows:

     

    
      	
              (a)  

            	
              to
                the Debtor at:

            

    

     

    Foundation
      Venture Leasing Inc.

     

    95
      Wellington Street West, Suite 1200

     

    Toronto,
      Ontario  M5J 2Z9

     

    Fax:                      416-941-8852

     

    Attention:                                Jeremy
      Goldman

     

    
      	
              (b)  

            	
              to
                the Holder at:

            

    

     

    ETIFF
      Holdings, LLC

     

    144
      Front
      Street West, Suite 700

     

    Toronto,
      Ontario  M5J 2L7

     

    Fax:                      416-216-1164

     

    Attention:                                Jason
      Moretto

     

    or
      at
      such other address as may be given by one of them to the other in writing from
      time to time.  A notice given as aforesaid shall be deemed to have
      been received when delivered or, if mailed, five (5) business days following
      the
      day of the mailing thereof; provided that if a notice shall have been mailed
      and
      if regular mail service shall be interrupted by strike or other irregularity
      before the deemed receipt of such notice as aforesaid, such notice shall, unless
      earlier actually received, be deemed to have been received five (5) business
      days following the resumption of normal mail service.

     

    10.7  Headings

     

    The
      division of this agreement into articles, sections and subsections and the
      insertion of headings are for convenience of reference only and shall not affect
      the construction or interpretation of this agreement.  The article,
      section and subsection headings in this agreement are not intended to be full
      or
      precise descriptions of the text to which they refer and are not to be
      considered part of this agreement.  All uses of the words "hereto",
      "herein", "hereof", "hereby" and "hereunder" and similar expressions refer
      to
      this agreement and not to any particular section or portion of
      it.  References to an Article, Section or Subsection followed by a
      number refer to the applicable article, section or subsection of this
      agreement.

     

    10.8  Number
      and Gender

     

    All
      words
      and personal pronouns relating thereto shall be read and construed as the number
      and gender of the party or parties referred to in each case require and the
      verb
      shall be construed as agreeing with the required word and/or
      pronoun.

     

    10.9  Currency.

     

    All
      sums
      of money which are referred to in this Agreement are expressed in lawful money
      of the United States of America.

     

    10.10  Further
      Assurances

     

    The
      Debtor will from time to time, at the request of the Holder and at the expense
      of the Debtor, make and do all such acts and things and execute and deliver
      all
      such agreements, mortgages, deeds and other documents and assurances as be
      reasonably necessary or desirable to perfect and preserve the Security
      Interest.

     

    10.11  Governing
      Law

     

    This
      agreement shall be governed by and construed in accordance with the laws of
      the
      Province of Ontario and the laws of Canada applicable therein.

     

    10.12  Time
      of the Essence

     

    Time
      shall be of the essence of this agreement.

     

    10.13  Counterparts

     

    This
      agreement may be executed in several counterparts, each of which so executed
      shall be deemed to be an original and such counterparts together shall
      constitute one and the same agreement.

     

    10.14  Binding
      Effect

     

    This
      agreement shall enure to the benefit of and be binding upon the Debtor and
      the
      Holder and their respective heirs, executors, successors, assigns and legal
      representatives.

     

    10.15  Duplicate
      Copy

     

    The
      Debtor acknowledges receipt of an executed copy of this agreement.

     

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

     

    
      	 	 	
              EIGER
                TECHNOLOGY, INC.

            
	 	 	
              Per:

            	 
	 	 	
              Name:

              Title:

            	 
	 	 	
              I
                have the authority to bind the corporation.

            
	 	 	
              ETIFF
                HOLDINGS, LLC

            
	 	 	
              Per:

            	 
	 	 	
              Name:

              Title:

            	 
	 	 	
              I
                have the authority to bind the corporation.

            
	 	 	
              FOUNDATION
                VENTURE LEASING INC.

            
	 	 	
              Per:

            	 
	 	 	
              Name:

              Title

            	 
	 	 	 	
              I
                have the authority to bind the
                corporation.exhibit10-3.htm

    PROMISSORY
      NOTE

     

    
      	
              AMOUNT:                                US$671,080

            	
              DATE:
                August 8, 2007

            

    

     

    FOR
      VALUE RECEIVED the undersigned promises to pay to ETIFF HOLDINGS,
      LLC. (the "Holder"), or as the Holder may
      direct in writing, the principal sum of $671,080 (the
“Principal Sum”) in lawful
      money of the United States of America payable at the address of the Holder
      at
      144 Front Street West, Suite 700, Toronto, Ontario M5J 2L7 or at such other
      place as the Holder may designate in writing. The Principal Sum is to be payable
      on the following basis:

     

    
      	
              1.  

            	
              US$70,000
                on or before August 31, 2007;

            

    

    
      	
              2.  

            	
              US$133,694
                on or before September 31, 2007;

            

    

    
      	
              3.  

            	
              US$233,
                693 on or before February 1, 2008;
                and

            

    

    
      	
              4.  

            	
              US$233,
                693 on or before September 1, 2008.

            

    

     

    The
      Holder shall have no recourse to enforce such payment except that the Holder
      may
      enforce against the 12,619,460 Shares of Racino Royale Inc. held by the Holder
      pursuant to the Share Pledge Agreement of the date hereto.

     

    No
      interest shall be payable in respect of the Principal Sum hereunder and the
      undersigned shall have the right to prepay the whole or any part of the
      principal amount of this promissory note from time to time without notice,
      bonus
      or penalty.  Any and all monies payable hereunder shall be paid to the
      Holder or as it may otherwise direct.

     

    Demand,
      presentment, protest and notice of non-payment are hereby waived by the
      undersigned.

     

    Time
      shall be of the essence hereof.

     

    This
      promissory note shall be construed and interpreted in accordance with the laws
      of the Province of Ontario and the laws of Canada applicable
      therein.

     

    This
      promissory note shall enure to the benefit of the Holder and the Holder's
      successor and assigns, and shall be binding on the undersigned and its
      successors and assigns.

     

    IN
      WITNESS WHEREOF, the undersigned has duly executed this promissory note
      this 8th day of
      August, 2007.

     

    
      	 	 	
              FOUNDATION
                VENTURE LEASING INC.

            
	 	 	
              Per:

            	 
	 	 	
              Name:

              Title

            	 
	 	 	 	
              I
                have the authority to bind the
                corporation.

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