Document:

EXHIBIT
10.5

     

    CORPORATE
GUARANTY OF B.H.I.T. INC.

     

    THIS
CORPORATE GUARANTY (“Guaranty”) is made and entered into as of September 4,
2009, by B.H.I.T. Inc. a Delaware Corporation whose address is 2255 Glades Road,
Suite 342-W, Boca Raton, Florida 33431, on behalf of itself and its subsidiaries
(the “Guarantor”), in favor of FIFTH THIRD BANK, a national banking association
(“Bank”).

     

    WHEREAS,
contemporaneously herewith, The Wood Energy Group, Inc., a Missouri corporation
(the “Borrower”) desires Lender to provide certain extensions of credit, loans
or other financial accommodations to Borrower (the “Financial Accommodations”)
pursuant to that certain Loan and Security Agreement of even date herewith by
and between Lender and Borrower (as amended, renewed or restated from time to
time, the “Loan Agreement”), and the other agreements, documents and instruments
referenced in or executed and delivered pursuant to the Loan Agreement,
including, without limitation, certain Capex, Revolving and Term Notes of even
date herewith executed and delivered by Borrower to Lender in a maximum
aggregate principal amount not to exceed Five Million and No/100 Dollars
($5,000,000.00) (as set forth in Section 3.1 of the Loan Agreement, as amended,
renewed or restated from time to time, the “Loan Documents”).  Unless
otherwise defined herein, capitalized terms used herein shall have the meanings
ascribed to them in the Loan Agreement.

    

    WHEREAS,
Guarantor is the holder of a majority interest of the stock and membership
interests of Borrower.

     

    WHEREAS,
all financial accommodations made by Bank to Borrower under the Loan Agreement
will inure to the direct and material benefit of Guarantor.

     

    WHEREAS,
Lender is willing to provide the Financial Accommodations to Borrower, provided,
among other things, Guarantor executes and delivers this Guaranty to
Lender.

     

    NOW,
THEREFORE, in consideration of the premises, the sum of $10.00, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and to induce Bank to consummate the transactions under the Loan
Agreement, Guarantor hereby represents, warrants and agrees to and with Bank as
follows:

     

    1.           Guarantor
unconditionally guarantees the due and punctual performance and payment in full
of (i) all liabilities and obligations of Borrower under the Loan Agreement, and
(ii) all the liabilities and obligations of Borrower or any other party (other
than Bank) under the other Loan Documents (the “Guaranteed Obligations”);
provided, however, that the liability of Guarantor hereunder shall not exceed
the maximum amount not subject (but for provisions of this Section) to avoidance
under title 11 of the United States Code, as same may be amended from time to
time, or any applicable state law (collectively, the “Bankruptcy
Code”).  To that end, only to the extent such obligations would
otherwise be subject to avoidance under the Bankruptcy Code if the Guarantor is
not deemed to have received valuable consideration, fair value or reasonably
equivalent value for its obligations hereunder, Guarantor’s obligations
hereunder shall be reduced to that amount which, after giving effect thereto,
would not render the Guarantor insolvent, or leave the Guarantor with an
unreasonably small capital to conduct its business, or cause the Guarantor to
have incurred debts (or intended to have incurred debts) beyond its ability to
pay such debts as they mature, at the time such obligations are deemed to have
been incurred under the Bankruptcy code.  As used herein, the terms
“insolvent” and “unreasonably small capital” shall likewise be determined in
accordance with the Bankruptcy Code.  This Section is intended solely
to preserve the rights of the Bank hereunder to the maximum extent not subject
to avoidance under the Bankruptcy Code, and neither the Guarantor nor any other
person or entity shall have any right or claim under this Section with respect
to the limitation described herein, except to the extent necessary so that the
obligations of the Guarantor hereunder shall not be rendered voidable under the
Bankruptcy Code.  The Guarantor agrees that the Guaranteed Obligations
may at any time and from time to time exceed the maximum liability of Guarantor,
without impairing this Guaranty or affecting the rights and remedies of the Bank
hereunder.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.           Guarantor
agrees that the Guaranteed Obligations may be extended or renewed, in whole or
in part, without notice or further assent from Guarantor, whether in its
capacity as Guarantor of the Guaranteed Obligations or otherwise, or from any
other guarantor and that Guarantor will remain bound upon this Guaranty
notwithstanding any extension or renewal of the Guaranteed
Obligations.

     

    3.           Guarantor
waives presentation to, demand of payment from, and protest to Borrower of any
of the Guaranteed Obligations, and also waives notice of protest for
non-payment.

     

    4.           Guarantor
further agrees that this Guaranty constitutes a guaranty of payment and not of
collection and it waives any right to require that any resort be had by Bank to
(i) any security held by Bank for payment of the Guaranteed Obligations, (ii)
any other monetary obligations of Borrower to Bank or (iii) Bank’s rights
against any other guarantor of the Guaranteed Obligations.

     

    5.           The
obligations of Guarantor hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason, including, without
limitation, any claim of waiver, release, surrender, alteration or compromise,
and shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or
unenforceability of the provisions of this Guaranty, the Loan Agreement, the
other Loan Documents or the Guaranteed Obligations.  Without limiting
the generality of the foregoing, the obligations of Guarantor hereunder shall
not be discharged or impaired or otherwise affected by the failure of Bank to
assert any claim or demand or to enforce any remedy hereunder or under the Loan
Agreement, or the other Loan Documents, by any default, failure or delay,
willful or otherwise, in the performance of the terms and conditions of the Loan
Agreement, or the other Loan Documents, or by any other act or thing or omission
or delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of Guarantor, or which would otherwise operate as a
discharge of Guarantor, as a matter of law.

     

    6.           Guarantor
further agrees that this Guaranty shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
the Guaranteed Obligations is rescinded or must otherwise be restored by Bank
upon the bankruptcy or reorganization of any Borrower or otherwise.

     

    
      
         

      

      
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    7.           In
furtherance of the foregoing and not in limitation of any other right which Bank
may have at law or in equity against Guarantor by virtue hereof, upon failure of
Borrower to make any payment on the Guaranteed Obligations when and as the same
shall become due, whether at maturity, by acceleration, after notice of
prepayment or otherwise, Guarantor hereby agrees that Bank shall be entitled to
exercise any and all of its rights and remedies with respect to the Collateral
as set forth in the Loan Agreement and that any proceeds from the sale of the
Collateral may be applied in payment of the unpaid amount of such Guaranteed
Obligations and all other monetary obligations of Guarantor to Bank under this
Guaranty.

     

    8.           Guarantor
hereby irrevocably waives and forever releases all rights of subrogation,
reimbursement and contribution, and any and every similar right, which it would
otherwise have against Borrower in connection with this Guaranty or the payment
or performance of any of the Guaranteed Obligations by Guarantor, regardless of
whether such right arises by operation of law or otherwise.

     

    9.           Guarantor
hereby waives any and all rights to assert against Bank, any claims or defenses
based upon any failure of Bank to furnish to Guarantor any information or facts
relating to the ability of Borrower to pay and perform its
Obligations.  Guarantor hereby waives all defenses, counterclaims and
offsets of any kind or nature, in connection with the validity and/or
enforceability of this Guaranty, arising directly or indirectly from the
perfection, sufficiency, validity and/or enforceability of any security interest
granted, or any agreement, instrument or document executed and delivered, by or
for the benefit of Borrower to Bank, or acquired by Bank from or for the benefit
of Borrower.  Guarantor waives any and all right to assert against
Bank any claim or defense based upon any election of remedies by Bank, which in
any manner impairs, affects, reduces, releases or extinguishes Guarantor’s
subrogation rights or Guarantor’s right to proceed against Borrower for
reimbursement, or any other rights of Guarantor against Borrower, or against any
other Person or security, including, without limitation, any defense based upon
an election of remedies by Bank under any provision of law or regulation of any
state, governmental entity or country.  Guarantor waives any right to
assert against Bank as a defense, counterclaim, setoff or crossclaim to the
payment or performance of the Guaranteed Obligations, any defense (legal or
equitable), setoff, counterclaim or claim which Guarantor may now or at any time
or times hereafter have against Borrower or any other Person liable to Bank in
any way or manner.

     

    10.           Guarantor
hereby waives notice of the following events or occurrences and agrees that Bank
may do any or all of the following in such manner, upon such terms and at such
times as Bank in its sole and absolute discretion deems advisable without in any
way impairing, affecting, reducing or releasing Guarantor from its obligations
hereunder:  (a) Bank’s acceptance of this Guaranty; (b) Bank’s
heretofore, now or from time to time hereafter, loaning monies or giving or
extending credit to or for the benefit of Borrower, whether pursuant to the Loan
Documents or any amendments, modifications or additions thereto or alterations
or substitutions made heretofore, now or at any time or times hereafter; (c) any
Person’s heretofore, now or at any time or times hereafter, granting to Bank
security interests, liens or encumbrances in any assets of Borrower; (d) Bank’s
heretofore, now or from time to time hereafter, obtaining, substituting for,
releasing, waiving or modifying any such security interests, liens or
encumbrances; (e) Bank’s heretofore, now or at any time or times hereafter,
obtaining, releasing, waiving or modifying of any other guaranty or any Person’s
obligations or any security interest, lien or encumbrance in any other Person’s
assets given to Bank; (f) Bank’s heretofore, now or at any time or times
hereafter, obtaining, amending, substituting for, releasing, waiving or
modifying any of the Loan Documents; (g) presentment, demand, notices of
default, nonpayment, partial payment and protest, and all other notices or
formalities to which Guarantor may be entitled; (h) Bank’s heretofore, now or at
any time or times hereafter, granting to Borrower (and any other Person liable
to Bank on account of the Guaranteed Obligations) any indulgences or extensions
of time of payment or performance; and (i) Bank’s heretofore, now or at any time
or times hereafter, accepting from any Person any partial payment or payments on
account of the Guaranteed Obligations or any collateral securing the payment
thereof or Bank’s settling, subordinating, compromising, discharging or
releasing the same.

     

    
      
         

      

      
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    11.          Guarantor
represents and warrants to Bank that:

     

    
      	
               
      

            	
              A.

            	
              The
      statements contained in the preamble to this Guaranty are true and
      correct.

            

    

     

    
      	
               
      

            	
              B.

            	
              Guarantor
      has the right, power and capacity and is duly authorized and empowered to
      enter into, execute, deliver and perform this
  Guaranty.

            

    

     

    
      	
               
      

            	
              C.

            	
              This
      Guaranty, when duly executed and delivered, will constitute a legal, valid
      and binding obligation of Guarantor, enforceable against Guarantor in
      accordance with its terms.

            

    

     

    
      	
               
      

            	
              D.

            	
              The
      execution, delivery and/or performance by Guarantor of this Guaranty shall
      not, by the lapse of time, the giving of notice or otherwise, constitute a
      violation of any applicable law or a breach of any provision contained in
      any agreement, instrument or document to which Guarantor is now or
      hereafter a party or by which it is or may become
  bound.

            

    

     

    
      	
               
      

            	
              E.

            	
              Guarantor
      is now and at all times hereafter, shall be solvent and generally able to
      pay its debts as such debts become due and Guarantor now owns and shall at
      all times hereafter own property which at a fair valuation, exceeds the
      sum of Guarantor’s debts.

            

    

     

    
      	
               
      

            	
              F.

            	
              Guarantor
      now has and shall have at all times hereafter capital sufficient to carry
      on its business and transactions and all businesses and transactions in
      which Guarantor is about to engage.

            

    

     

    
      	
               
      

            	
              G.

            	
              Guarantor
      does not intend to incur or believe that Guarantor will incur debts beyond
      Guarantor’s ability to pay as such debts
mature.

            

    

     

    
      	
               
      

            	
              H.

            	
              There
      are no actions or proceedings which are pending or, to the knowledge of
      Guarantor, threatened against Guarantor that might result in any material
      and adverse change in Guarantor’s financial condition or materially affect
      Guarantor’s ability to perform Guarantor’s obligations under this
      Guaranty.

            

    

     

    
      	
               
      

            	
              I.

            	
              Guarantor
      has reviewed independently all agreements, instruments and documents
      executed by Borrower, and Guarantor has made an independent determination
      as to the validity and enforceability thereof upon the advice of
      Guarantor’s own counsel, and in executing and delivering this Guaranty to
      Bank, Guarantor is not in any manner relying upon Bank as to the validity
      and/or enforceability of any security interests of any kind or nature
      granted by Borrower to Bank.

            

    

     

    
      
         

      

      
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              J.

            	
              Guarantor
      acknowledges and agrees that in executing this Guaranty and at all times
      hereafter, Guarantor has relied and will continue to rely upon Guarantor’s
      own investigation and upon sources other than Bank for all information and
      facts relating to the ability of Borrower to pay and perform the
      Guaranteed Obligations, and Guarantor has not and will not hereafter rely
      upon Bank for any such information or
facts.

            

    

     

    12.          Guarantor
covenants and agrees with Bank that:  (a) all security interests,
liens and encumbrances heretofore, now and at any time or times hereafter,
granted by Borrower and Guarantor to Bank shall secure Guarantor’s obligations
hereunder; (b) all indebtedness, liability or liabilities now and at any time or
times hereafter owing by any Borrower or Guarantor to Guarantor are hereby
subordinated to the Guaranteed Obligations; (c) all security interests, liens
and encumbrances which Guarantor now has and from time to time hereafter may
have upon the assets of any Borrower or Guarantor are hereby subordinated to all
security interests, liens and encumbrances that Bank now has and from time to
time hereafter may have thereon; and (d) all indebtedness, liability or
liabilities now and at any time or times hereafter owing to Guarantor by any
Person liable to Bank by reason of any security interests, liens or encumbrances
granted by Borrower to Bank are hereby subordinated to all indebtedness,
liability or liabilities owed by such Person to Bank.

     

    13.          The
occurrence of any one of the following events shall be deemed a default by
Guarantor (“Event of Default”) under this Guaranty:  (a) if Guarantor
fails or neglects to perform, keep or observe any terms, provision, condition,
covenant, warranty or representation contained in this Guaranty that is required
to be performed, kept or observed by Guarantor; (b) occurrence of a default or
event of default as defined under any other agreement, instrument or document
heretofore, now or at any time hereafter delivered by, on behalf or for the
benefit of Guarantor to Bank; (c) if Guarantor fails to pay any of the
Guaranteed Obligations when the same are due and payable; (d) if any of
Guarantor’s assets are seized, attached, subjected to a writ of distress
warrant, or are levied upon, or come within the possession of any receiver,
trustee, custodian or assignee for the benefit of creditors and the same is not
terminated or dismissed within twenty (20) days thereafter; (e) if a petition
under the Bankruptcy Reform Act of 1978 or any similar law or regulation shall
be filed by Guarantor, or if Guarantor shall make an assignment for the benefit
of creditors, or if any case or proceeding is filed by Guarantor for its
dissolution or liquidation; (f) if Guarantor is enjoined, restrained or in any
way prevented by court order from conducting all or any material part of
Guarantor’s business affairs or if a petition under any section or chapter of
the Bankruptcy Code or any similar law or regulation is filed against Guarantor
or if any case or proceeding is filed against Guarantor for Guarantor’s
dissolution or liquidation and such injunction, restraint or petition is not
dismissed or stayed within twenty (20) days after the entry or filing thereof;
(g) if an application is made by Guarantor for the appointment of a receiver,
trustee or custodian for any of Guarantor’s assets; (h) if an application is
made by any Person other than Guarantor for the appointment of a receiver,
trustee, custodian or conservator for any of Guarantor’s assets and the same is
not dismissed within thirty (30) days after the application therefor; (i) if a
notice of lien, levy or assessment is filed of record with respect to all or any
of Guarantor’s assets by the United States or any department, agency or
instrumentality thereof or by any state, county, municipal or other governmental
agency, or if any taxes or debts owing at any time or times hereafter to any one
of them becomes a lien or encumbrance upon any of Guarantor’s assets and the
same is not released within thirty (30) days after the same becomes a lien or
encumbrance; or (j) if Guarantor is in default in the payment of any obligations
or liabilities owed by Guarantor to any Person (other than the Guaranteed
Obligations) the result of which would have a material adverse effect on the
Guarantor or its business and such material default is declared and is not cured
within the time, if any, specified therefor in any agreement governing the same;
or (i) occurrence of an Event of Default under the Loan Agreement or the other
Loan Documents.

     

    
      
         

      

      
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    14.         Guarantor
represents and warrants to the Bank that:

     

    
      	
               
      

            	
              A.

            	
              Guarantor
      is a corporation duly organized, existing and in good standing under the
      laws of the State of Delaware, with full and adequate corporate power to
      carry on and conduct its business as presently conducted, and duly
      licensed or qualified in all foreign jurisdictions wherein the nature of
      its activities require such qualification of
  licensing.

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      nature and transaction of Guarantor’s business and operations and the use
      of its properties and assets do not violate or conflict with any
      applicable law, statute, ordinance, rule, regulation or order of any
      kind.

            

    

     

    
      	
               
      

            	
              C.

            	
              All
      financial statements of Guarantor, including any pro-forma financial
      statements, submitted to the Bank have been prepared in accordance with
      GAAP, on a basis, except as otherwise noted therein, consistent with the
      previous fiscal year and truly reflect the financial condition of
      Guarantor and the results of operations for Guarantor as of such date and
      for the periods indicated.

            

    

     

    
      	
               
      

            	
              D.

            	
              Guarantor
      has duly filed all applicable income or other tax returns and has paid all
      income or other taxes when due.  There is no controversy or
      objection pending, or to the best knowledge of Guarantor threatened in
      respect of any tax returns of
Guarantor.

            

    

     

    
      	
               
      

            	
              E.

            	
              All
      financial statements, schedules, certificates, confirmations, agreements,
      contracts and other materials submitted to the Bank by on or on behalf of
      Guarantor fully and fairly state the matters with which they purport to
      deal, and neither misstate any material fact nor, separately or in the
      aggregate, fail to state any material fact necessary to make the
      statements not misleading.

            

    

     

    15.         Guarantor
covenants and agrees with Bank that it shall (a) preserve and maintain its
corporate existence, rights, franchises, privileges, and shall at all times
continue as a going concern, (b) maintain, preserve and keep its plant,
properties and equipment in good repair, working order and condition, normal
wear and tear excepted, (c) pay and discharge all property and other taxes,
assessments and governmental charges upon, and all claims against Guarantor or
its property, unless and to the extent that the same are being contested in good
faith by appropriate proceedings and are insured against or bonded over to the
satisfaction of the Bank, (d) deliver to the Bank within one hundred and twenty
(120) days after the close of each of its fiscal years a copy of its annual
financial statements, prepared and certified by an independent certified public
accountant, and (e) as soon as available, and in any event, within forty-five
(45) days following the end of each fiscal quarter, a copy of its financial
statements, prepared and certified as accurate.

     

    
      
         

      

      
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    16.           All
of Bank’s rights and remedies under this Guaranty are cumulative and
non-exclusive.

     

    17.           Upon
an Event of Default, without notice by Bank to or demand by Bank of Guarantor,
all obligations hereunder shall be due and payable and enforceable against
Guarantor, forthwith, at Bank’s principal place of business, whether or not the
Guaranteed Obligations are then due and payable.

     

    18.           Bank,
in its sole and absolute discretion, may exercise any one or more of the
following remedies:  (a) if any obligations of Guarantor hereunder are
not paid forthwith by Guarantor to Bank at Bank’s principal place of business,
proceed to suit against Guarantor; at Bank’s election, one or more successive or
concurrent suits may be brought hereunder by Bank against Guarantor, whether
suit has been commenced against any Borrower, and in any such suit any Borrower
may be joined (but need not be joined) as a party with Guarantor;
(b)  in the event Guarantor breaches its obligations set forth in this
Guaranty, proceed to exercise its remedies set forth herein and the remedies set
forth against Borrower pursuant to the Loan Agreement (a default under this
Guaranty shall be deemed to constitute a default of both Guarantor and
Borrower); (c) reduce to cash or the like the Collateral without notice to
Guarantor, apply the same in reduction or payment of Guarantor’s obligations
hereunder; (d) exercise any one or more of the rights and remedies accruing to a
secured party under the Uniform Commercial Code of the relevant state or states
and any other applicable law upon default by a debtor; (e) enter, with or
without process of law and without breach of the peace, any premises where the
Collateral is or may be located, and without charge or liability to Bank
therefor seize and remove the Collateral from said premises and use the same for
the purpose of collecting, preparing and disposing of the Collateral; (f) sell
or otherwise dispose of the Collateral at public or private sale for cash or
credit, provided, however, that Guarantor shall be credited with the net
proceeds of such sale only when such proceeds are actually received by Bank in
the form of immediately available or collected funds; and/or (g) require
Guarantor, immediately upon demand by Bank, to assemble the Collateral and make
it available to Bank at a place or places to be designated by Bank which is
reasonably convenient to Bank and Guarantor.  Except as otherwise
provided herein, in the event of a conflict between the terms of this Guaranty
and the terms of the Loan Agreement with respect to exercise of remedies, the
terms of the Loan Agreement shall govern.

     

    19.           Any
sale of the Collateral may be made for cash or credit at the election of Bank
and the amounts of any such sale shall be credited to Guarantor’s obligations
hereunder only when the proceeds thereof are actually received by Bank as
provided in Paragraph 19 above.  Bank or its nominee, may become the
purchaser at such sale.  Bank may, if it deems it reasonable, postpone
or adjourn any such sale of the Collateral from time to time by an announcement
at the time and place of said or by announcement at the time and place of such
postponed or adjourned sale, without being required to give a new notice of
sale.

     

    
      
         

      

      
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    20.           Guarantor
recognizes that in the event Guarantor fails to perform, observe or discharge
any of Guarantor’s obligations hereunder, no remedy of law will provide adequate
relief to Bank, and agrees that Bank shall be entitled to temporary and
permanent injunctive relief in any such case without the necessity of proving
actual damages.

     

    21.           Any
notice required to be given by Bank of a sale, lease, other disposition of the
Collateral or any other intended action by Bank shall be deemed effective upon
confirmed facsimile transmission, upon receipted delivery by overnight carrier,
or if, deposited in the United States mail, postage prepaid and duly addressed
to Guarantor at the address of the Guarantor as specified in the Preamble
hereof, not less than three (3) days prior to such proposed action, and shall
constitute commercially reasonable and fair notice to Guarantor
thereof.

     

    22.           Guarantor
agrees that Bank has no obligation to preserve rights against prior parties to
the Collateral.  Further, to the extent permitted by law, Guarantor
waives and releases (i) any cause of action and claim against Bank as a result
of Bank’s possession, collection or sale of the Collateral; (ii) any liability
or penalty for failure of Bank to comply with any requirement imposed on Bank
relating to notice of sale, holding of sale or reporting of sale of the
Collateral; and (iii) any right of redemption from such sale.

     

    23.           Each
reference herein to “Bank” shall be deemed to include its successors and
assigns, in whose favor the provisions of this Guaranty shall also
inure.  Each reference herein to “Guarantor” shall be deemed to
include the legal representatives, successors and assigns of Guarantor, all of
whom shall be bound by the provisions of this Guaranty.

     

    24.           No
delay on the part of Bank in exercising any right hereunder or failure to
exercise the same shall operate as a waiver of such right; no notice to or
demand on Guarantor shall be deemed to be a waiver of the obligations of
Guarantor or of the right of Bank to take further action without notice or
demand as provided herein, nor in any event shall any modification or waiver of
the provisions of this Guaranty be effective unless in writing and signed by
Guarantor and Bank, nor shall any such waiver be applicable except in the
specific instance for which given.

     

    25.           Guarantor
agrees to indemnify Bank from and hold it harmless against any documentary
taxes, withholding taxes, assessments or charges made by any governmental
authority or similar Person by reason of the execution, delivery and performance
of this Guaranty.  Additionally, guarantor agrees to reimburse Bank
for all expenses (including reasonable counsel fees) reasonably incurred by Bank
in connection with the enforcement of this Guaranty.

     

    26.           This
Guaranty is, and shall be deemed to be, a contract entered into under and
pursuant to the laws of the State of Illinois and shall be in all respects
governed, construed, applied and enforced in accordance with the laws of said
state; and no defense given or allowed by the laws of any other state shall be
interposed in any action hereon unless such defense is also given or allowed by
the laws of the State of Illinois.

     

    
      
         

      

      
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    27.           In
case any one or more of the provisions contained in this Guaranty should be
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby.

     

    28.           As
part of the consideration for the financial accommodations extended by Bank
under the Loan Agreement, Guarantor consents to the jurisdiction of any local,
state or federal court located within Cook County, State of Illinois, waives
trial by jury and further waives any objection to jurisdiction and venue of any
action instituted hereunder, and further agrees not to assert any defense based
on lack of jurisdiction or venue.

     

    [SIGNATURE
PAGE FOLLOWS]

     

    
      
         

      

      
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    IN WITNESS WHEREOF, Guarantor has
caused this Guaranty to be duly executed and its seal affixed hereto, as of the
date first above written.

    

    
      
        
          
            
              	
                      B.H.I.T.
      Inc.

                    
	 
      	 
      
	
                      By: 

                    	
                      /s/ Gary O. Marino

                    
	
                      Its:

                    	
                      Chairman
      and Chief Executive Officer

                    
	 
      	 
      
	
                      Agreed
      and accepted:

                    
	 
      
	
                      FIFTH
      THIRD BANK,

                    
	
                      a
      Michigan banking corporation

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Craig Schuth

                    
	
                      Its:

                    	
                      Vice
      President

                    

            

          

        

      

    

    
      
         

      

      
        10EXHIBIT
10.6

    EMPLOYMENT
AGREEMENT

    

    THIS EMPLOYMENT AGREEMENT (the
“Agreement”) is made and entered into as of August 31, 2009, by and between The
Wood Energy Group, Inc., a Missouri corporation (“Employer”), and Greg Smith, an
individual residing at 2016 Kingspointe Drive, Chesterfield, Missouri 63005
(“Employee”).

    

    RECITALS:

    

    Employer desires to offer Employee an
opportunity to work for Employer as its president upon the terms and conditions
hereinafter set forth, and Employee desires to accept such
offer.  Accordingly, the parties agree as follows:

    

    1.           EMPLOYMENT.  Employer hereby
employs Employee and Employee agrees to be employed by Employer as president, or
in such other role to which the parties jointly agree, for an initial five year
term commencing on the date of this Agreement and terminating on August 31, 2014
(the “Employment Period”).  At least 90 days prior to the end of the
Employment Period, the parties shall consider the extension of the Employment
Period, and shall memorialize, in writing, any agreement reached related
thereto.

    

    2.           COMPENSATION.  During the
Employment Period, Employee shall receive as compensation:

    

    (a)           Salary
at the annual rate of $150,000, payable not less frequently than
semi-monthly;

    

    (b)           The
right to participate in all corporate employee benefit programs offered to
senior executives of Employer or B.H.I.T. Inc., Employer’s parent company
(“BHIT”), such as health insurance, life insurance and retirement plans;
and

    

    (c)           An
opportunity to earn an annual bonus based upon goals to be established annually
by the Board of Directors of BHIT (the “Board”) and which will be, in large
measure, tied to the growth of Employer’s earnings before interest, taxes,
depreciation and amortization, or EBITDA.

    

    (d)           An
opportunity to receive BHIT equity compensation as determined by the
Board.

    

    (e)           It
is understood and agreed that the compensation set forth in this section
includes all of the compensation to be paid to Employee hereunder and that
Employee has agreed to forego any other compensation, benefits and perquisites,
including those he had received in his position as president of Employer’s
predecessor in the operation of the business of Employer.

    

    3.           DUTIES.  During the
Employment Period, Employee shall report to the Board, who shall be entitled to
establish the duties and responsibilities of Employee hereunder, consistent with
his title, and to modify the foregoing from time to time.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.           TERMINATION.

    

    (a)           The
employment of Employee pursuant to this Agreement shall terminate automatically
and without further action or liability of either party other than as provided
for in this Agreement upon (i) the death of Employee, (ii) Employee’s
resignation, or (iv) the termination of Employee’s employment by
Employer.

    

    (b)           Employer
may elect to terminate Employee’s employment for any reason.  In the
event of a termination which is not for “Cause,” Employer shall pay severance to
Employee, at a rate equal to Employee’s then current annual salary for six
months, or for such shorter period as remains in the Employment Period (the
“Severance Pay”).  The Severance Pay shall be paid in installments, in
accordance with Employer’s payroll procedures as in effect on the date of this
Agreement during the six month period following the date of such termination of
employment.  The Severance Pay is intended by the parties to be in
settlement of any and all claims of Employee arising out of or related to
Employee’s employment with Employer, including, without limitation, the
termination of such employment, any express or implied employment agreement,
this Agreement, or the breach thereof (collectively, “Employment
Claims”).  In consideration of such payment, and as a condition
precedent to its delivery, Employee shall enter into an agreement, in a form
satisfactory to Employer, pursuant to which Employee shall release and waive any
and all Employment Claims against Employer, and covenant not to sue Employer in
connection with any Employment Claim (the “Release and Severance
Waiver”).

    

    (c)           Employee
shall be terminated for “Cause” if the termination is because of any of the
following: (i) Employee engaging in fraud, misappropriation of funds,
embezzlement or like conduct committed against Employer or a customer or
supplier of Employer, (ii) Employee being convicted (or entering a plea of
nolo contendere) of a
crime involving dishonesty or moral turpitude, (iii) Employee engaging in any
act of sexual misconduct at or in connection with work, including sexual
harassment, (iv) Employee’s alcohol or drug abuse, (v) Employee’s appropriation
of one or more business opportunities of Employer without the prior written
consent of the Board, or other breach of the common law duty of loyalty, (vi)
Employee’s gross negligence which results in material harm to Employer, (vii)
Employee failing to fulfill the duties and responsibilities of his job, after
notice and an opportunity to cure such failure, and (viii) Employee violating,
in a material respect, any provision of this Agreement.  In the event
of such a termination for Cause, Employer shall have no further obligation to
Employee pursuant to this Agreement after the date of termination other than for
the payment of compensation earned by Employee prior to the date of termination
and not yet paid.

    

    5.           COVENANTS
AGAINST COMPETITION.  Employee
recognizes and acknowledges that (i) the principal business of Employer is
railroad tie reclamation and disposal (the “Company Business”); and (ii) the
work of Employee for Employer has brought Employee and will continue to bring
him into close contact with many confidential affairs not readily available to
the public.  Accordingly, Employee covenants and agrees
that:

    

    (a)           Non-Compete.  During
the Employment Period and for two years following the termination of Employee’s
employment hereunder, however caused, Employee shall not, directly or
indirectly, compete with Employer or any affiliate of Employer in any manner, on
behalf of himself or any other person, firm, business, corporation or other
entity (each such other person, firm, business or other entity being referred to
hereinafter as a “Person”), including, without limitation, that Employee shall
not (i) engage in the Company Business for his own account; (ii) except for
employment of Employee by Employer or an affiliate of Employer, enter the employ
of, or render any services to, any Person engaged in the Company Business; or
(iii) become interested in any Person engaged in the Company Business (other
than Employer) as an owner, partner, shareholder, officer, director, licensor,
licensee, principal, agent, employee, trustee, consultant or in any other
relationship or capacity; provided, however, that Employee may own, directly or
indirectly, solely as an investment, securities of BHIT or any corporation which
is traded on any national securities exchange if he (A) is not a controlling
person of, or a member of a group which controls, such corporation, or (B) does
not, directly or indirectly, own 1% or more of any class of securities of such
corporation.

    
      
         

      

      
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    (b)           Non-Solicitation of
Customers.  In addition to the covenants of non-competition set
forth in subparagraph (a) above, during the Employment Period and for two years
following the termination of Employee’s employment with Employer, however
caused, Employee shall not, directly or indirectly, on behalf of himself or any
Person, solicit the business of any “Customer” (as hereinafter defined) of
Employer or any affiliate of Employer, or request or instigate any Customer to
withdraw, diminish, curtail or cancel any of its business with
Employer.  For purposes of this Agreement, “Customer” shall mean any
Person with whom Employer or any affiliate of Employer has had material dealings
during any part of the term of Employee’s employment with Employer, and
includes, without limitation, any Person with whom Employer or any affiliate of
Employer is doing business, or any Person who has been actively solicited for
business by Employer or any affiliate of Employer or its agent and such
solicitation is ongoing, as of the date of the termination of Employee’s
employment.

    

    (c)           Confidential
Information.  Employee recognizes and acknowledges that
confidential information, including, without limitation, information, knowledge
or data (i) of a technical
nature such as but not limited to methods, know-how, formulae, compositions,
processes, discoveries, machines, inventions, products, product specifications,
computer programs and similar items or research projects, and trade secrets of
Employer and Employer’s affiliates; (ii) of a business nature such as but not
limited to information about cost, purchasing, profits, market, sales or
Customers, including lists of Customers, and the financial condition of
Employer; (iii) pertaining to future developments such as but not limited to
research and development or future marketing or merchandising; and (iv) all
other matters which Employer treats as confidential (the items described above
being referred to collectively hereinafter as “Confidential Information”), are
valuable, special and unique assets of Employer and Employer’s
affiliates.  Employee shall at all times keep secret and retain in
strictest confidence, and shall not use for the benefit of himself or others
except in connection with the business and affairs of Employer, any and all
Confidential Information learned by Employee before or after the date of this
Agreement, and shall not disclose such Confidential Information to anyone
outside of Employer either during or after employment by Employer, except as
required in the course of performing duties of his employment with Employer,
without the express written consent of Employer or as required by
law.

    

    (d)           Property of
Employer.  Employee agrees to deliver promptly to Employer all
drawings, blueprints, manuals, letters, notes, notebooks, reports, sketches,
formulae, computer programs and files, memoranda, Customer lists and all other
materials relating in any way to the Company Business and in any way obtained by
Employee during the period of his employment with Employer which are in his
possession or under his control, and all copies thereof, (i) upon termination of
Employee’s employment with Employer, or (ii) at any other time at Employer’s
request.  Employee further agrees that he will not make or retain any
copies of any of the foregoing and will so represent to Employer upon
termination of his employment.

    

    (e)           Employees of
Employer.  During the Employment Period and for two years
following the termination of Employee’s employment with Employer, however
caused, Employee shall not, directly or indirectly, hire, solicit or encourage
to leave the employment of Employer or its affiliates any employee of Employer
or its affiliates, or hire any such employee who has left the employment of
Employer or its affiliates within one year of the termination of such employee’s
employment with Employer or its affiliates.

    
      
         

      

      
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    (f)           Tolling.  In
the event of Employee’s breach of subparagraph (a), (b) or (e) of this paragraph
5, the running of the period of time of the restriction set forth therein shall
be automatically tolled (i.e., no part of that period shall expire) from and
after the date of the first such breach.

    

    (g)           Remedies.  Employee
agree that there is no adequate remedy at law, and that money damages would not
be a sufficient remedy, for any breach of this paragraph 5, and that Employer
shall be entitled to specific performance (including but not limited to an
injunction) as a remedy for any such breach, without having to post a bond or
prove actual damages.  Specific performance shall not be deemed to be
the exclusive remedy for any breach of this paragraph 5 but shall be in addition
to all other remedies provided by law or equity.  Employee agree that
Employee shall indemnify and hold Employer and its members, managers, officers,
employees, agents and representatives harmless from and against all actions,
claims, liabilities, damages, expenses and costs (including reasonable legal
fees) that any of them may sustain, incur or expend as a result of any breach by
Employee of this paragraph 5.  Without limiting the generality of the
foregoing, in the event that Employer takes legal proceedings to enforce the
provisions of this paragraph 5 and Employee are found to be in violation of its
terms, Employee shall reimburse Employer for the legal fees and disbursements
Employer incurs in such proceedings.

    

    (h)           Blue-Pencilling.  If
any court determines that any of the covenants set forth in this paragraph 5, or
any part thereof, is unenforceable because of the scope, duration and/or
geographical area covered by such provision, such court shall have the power to
reduce the scope, duration or area of such provision and, in its reduced form,
such provision shall then be enforceable and shall be enforced.

    

    6.           NON-ASSIGNMENT.  This Agreement is
a personal services contract and it is expressly agreed that the rights and
interests of Employee and Employer hereunder may not be sold, transferred,
assigned, pledged or hypothecated; provided, however, that Employer may assign
its rights and obligations hereunder to any entity which acquires a substantial
part of the assets or equity of Employer, or to any entity affiliated with
Employer, whether presently existing or formed after the date
hereof.

    

    7.           SEVERABILITY.  In case any one
or more of the provisions contained in this Agreement shall, for any reason, be
held to be invalid, illegal or unenforceable in any respect by a court of
competent jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision of this Agreement, but this Agreement shall be
construed as if such invalid, illegal, or unenforceable provision had never been
contained herein.

    

    8.           EFFECT OF
CAPTIONS.  The captions in
this Agreement are included for convenience only and shall not in any way effect
the interpretation or construction of any provision hereof.

    

    9.           REMEDIES
CUMULATIVE; NO WAIVER.  All remedies
specified herein or otherwise available shall be cumulative and in addition to
any and every other remedy provided hereunder or now or hereafter
available.  No waiver or failure (intentional or unintentional) to act
with respect to any breach or default hereunder shall be deemed to be a waiver
with respect to any subsequent breach or default, whether of a similar or
different nature.

    

    10.        NOTICES.  All notices,
requests, demands, applications, services of process, and other communications
which are required to be or may be given under this Agreement shall be deemed to
have been duly given if personally delivered, if sent by facsimile transmission,
or if mailed via certified first class mail, postage prepaid, return receipt
requested, to the parties hereto at the address set forth in the first paragraph
of this Agreement, or to such other address as a party shall furnish to the
other by notice given in accordance with this paragraph.

    
      
         

      

      
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    11.        GOVERNING
LAW; JURISDICTION: LIMITATIONS ON FILING ACTIONS.  This
Agreement shall be governed by and construed in accordance with the substantive
law of the State of Florida.  The parties intend to and hereby do
confer jurisdiction upon the courts of any jurisdiction within the State of
Florida to determine any dispute arising out of or related to this Agreement,
including the enforcement and the breach hereof.  The parties agree
that any claim arising out of or related to this Agreement, or the breach
hereof, must be filed within one year after the date of the alleged breach and
that any claim which is not filed within such one year period is waived, and
that any statute of limitations to the contrary is hereby waived.

    

    12.        SECTION
409A.

    

    (a)           To
the extent applicable, this Agreement shall be interpreted, construed and
administered in accordance with Section 409A of the Internal Revenue Code of
1986, as amended, and the U.S. Department of Treasury regulations and other
interpretive guidance issued thereunder, each as in effect from time to time
(collectively, “Section 409A”).

    

    (b)           To
ensure compliance with Section 409A, Employer shall pay any salary amount
payable under paragraph 2(a) and any bonus amount payable under paragraph 2(c)
on a date no later than the later of the fifteenth day of the third month
following the end of Employer’s or Employee’s  taxable year in which
the amount was earned and accrued.

    

    (c)           Notwithstanding
anything to the contrary in this Agreement, Employer shall be under no
obligation to provide the Severance Pay described in paragraph 4(b) of this
Agreement unless Employee shall have executed the Release and Severance Waiver
(and the applicable revocation period shall have expired) within 55 days
following the date of Employee’s termination of employment.  The
payment of the amounts payable under paragraph 4(b) shall begin no later than 60
days following the date of termination of employment in accordance with
paragraph 4(b) above.

    

    (d)           For
purposes of Section 409A (including, without limitation, for purposes of U.S.
Treasury Regulation Section 1.409A-2(b)(2)(iii)), Employee’s  right to
receive the installment payments described in paragraph 4(b) above shall be
treated as a right to receive a series of separate payments and, accordingly,
each installment payment shall at all times be considered a separate and
distinct payment.

    

    (e)           Notwithstanding
anything herein to the contrary, to the extent any of the amounts payable under
paragraph 4(b) above are treated as non-qualified deferred compensation subject
to Section 409A, then no portion of such amounts shall be payable to Employee
unless Employee’ termination of employment constitutes a “separation from
service,” as defined in U.S. Treasury Regulation Section 409A-1(h) (and any
successor provision thereto).

    

    (f)           To
the maximum extent permitted by applicable law, the amounts payable to Employee
under this Agreement shall be made in reliance upon U.S. Treasury Regulation
Section 1.409A-1(b)(9) (with respect to separation pay plans) or U.S. Treasury
Regulation Section 1.409A-1(b)(4) (with respect to short-term
deferrals).

    

    13.        ENTIRE
AGREEMENT.  This Agreement
embodies the entire agreement and understanding between Employer and Employee
and supersedes all prior agreements and understandings relating to the subject
matter hereof.

    
      
         

      

      
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    IN WITNESS WHEREOF, the
undersigned have hereunto set their hands on the date first hereinabove
mentioned.

    

    
      
        	
                The
      Wood Energy Group, Inc.

              
	 
      
	
                /s/ Gary O. Marino

              
	
                By
      Gary O. Marino, Chief Executive Officer

              
	 
      
	
                /s/ Greg Smith

              
	
                Greg
      Smith

              

      

    

     

    
      
         

      

      
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