Document:

Unassociated Document

    Exhibit
      10.2

    PLEDGE
      AND SECURITY AGREEMENT

     

    PLEDGE
      AND SECURITY AGREEMENT
      (this
“Agreement”),
      dated
      April 17, 2007, made by and among Gigabeam Corporation (the “Company”)
      and
      the holders of Company’s common stock signatory hereto (collectively, the
“Pledgors”)
      in
      favor of Feldman Weinstein & Smith LLP (the “Agent”)
      and
      each of the holders of the Company’s 14% Secured Promissory Notes due, unless
      demanded earlier pursuant to the terms therein, December 31, 2007 (collectively,
      the “Pledgees”).

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      Pledgees have agreed, severally and not jointly, to lend to the Company, and
      the
      Company has agreed to borrow from the Pledgees, up to an aggregate of $500,000
      pursuant to the terms and conditions set forth in 14% Secured Promissory Notes
      of the Company (the “Notes”);

    

    WHEREAS,
      pursuant to the provisions of the Notes, and as a condition to the obligation
      of
      the Pledgees to lend thereunder, the Pledgors, as principals, employees and
      shareholders of the Company, have agreed to make the pledge contemplated by
      this
      Agreement in order to induce Pledgees to perform their obligations under the
      Notes;

    

     WHEREAS,
      as a
      condition to the obligation of the Pledgees to lend pursuant to the Notes,
      the
      Company agrees to undertake such action contemplated by this Agreement in order
      to induce Pledgees to perform their obligations under the Notes;

    

    WHEREAS,
      Pledgors
      own the shares of common stock, $0.001 par value per share, of the Company
      (the
“Common
      Stock”),
      set
      forth opposite the Pledgors’ names on Schedule
      A
      attached
      hereto;

    

    WHEREAS,
      terms
      used but not otherwise defined in this Agreement that are defined in Article
      9
      of the Uniform Commercial Code in effect in the State of New York at that time
      (whether or not the UCC applies to the affected Pledged Collateral) (the
      "UCC")
      shall
      have the meanings ascribed to them in the UCC; and

    

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

    

    SECTION
      1. Pledge
      and Security Interest.
      Each
      Pledgor hereby unconditionally and irrevocably pledges, grants and hypothecates
      to the Pledgees, and grants to the Pledgees a continuing first priority security
      interest in, a first lien upon and a right of set-off against, all of its
      respective rights, titles and interests of whatsoever kind and nature in (the
      “Security
      Interest”),
      and
      to secure the complete and timely payment, performance and discharge in full,
      as
      the case may be, of all of the obligations pursuant to the Notes, the following
      (collectively, the “Pledged
      Collateral”):

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) the
      shares of Common Stock owned by such Pledgor and set forth on Schedule
      A
      attached
      hereto (the “Pledged
      Shares”),
      and
      all dividends, cash, instruments and other property from time to time received,
      receivable or otherwise distributed in respect of or in exchange for any or
      all
      of the Pledged Shares; and

     

    (b) all
      proceeds of any and all of the foregoing Pledged Collateral, in whatever form
      (including, without limitation, proceeds that constitute property of the types
      described above).

     

    SECTION
      2. Security
      for Obligations.
      This
      Agreement secures the payment and performance of the following obligations
      (collectively, the "Obligations"):
      all
      present and future indebtedness, obligations, covenants, duties and liabilities
      of any kind or nature of the Company to the Pledgees now existing or hereafter
      arising under or in connection with this Agreement or the Notes (collectively,
      the “Transaction
      Documents”).

     

    SECTION
      3. Delivery
      of Pledged Collateral.
      Within
      3 business days of the date hereof, all certificates representing or evidencing
      the Pledged Shares, in suitable form for transfer by delivery, or accompanied
      by
      instruments of transfer or assignment duly executed in blank, are being
      deposited with and delivered to the Agent, as collateral agent for the Pledgees.
      The Agent shall have the right, at any time after the occurrence of an Event
      of
      Default (as hereinafter defined)(unless waived in writing by the Pledgees),
      without notice to the Pledgor, to transfer to or to register in the name of
      the
      Pledgees or their nominees any or all of the Pledged Collateral. In addition,
      the Agent shall have the right at any time after the occurrence of an Event
      of
      Default (unless waived in writing by the Pledgees), to exchange certificates
      or
      instruments representing or evidencing Pledged Collateral for certificates
      or
      instruments of smaller or larger denominations.

     

    SECTION
      4. Representations
      and Warranties.
      Each
      Pledgor, severally and not jointly with the other Pledgors, represents and
      warrants as follows:

     

    (a) Except
      as
      set forth on Schedule
      4(a)
      hereto,
      such Pledgor is the legal, record and beneficial owner of the Pledged Collateral
      owned by such Pledgor, free and clear of any lien, security interest,
      restriction, option or other charge or encumbrance (collectively, "Liens").

     

    (b) The
      pledge of the Pledged Collateral and the grant of the Security Interest pursuant
      to this Agreement creates a valid and perfected first priority security interest
      in the Pledged Collateral, securing payment and performance of the
      Obligations.

     

    (c) Except
      for the filing of financing statements pursuant to the UCC with the proper
      filing and recording agencies in the jurisdictions indicated on Schedule
      B,
      attached hereto, no consent of any other person or entity and no authorization,
      approval, or other action by, and no notice to or filing with, any governmental
      authority or regulatory body is required (i) for the pledge by the Pledgor
      of
      the Pledged Collateral pursuant to this Agreement or for the execution, delivery
      or performance of this Agreement by the Pledgor, (ii) for the perfection or
      maintenance of the security interest created hereby, or (iii) for the exercise
      by the Agent of the voting or other rights provided for in this Agreement or
      the
      remedies in respect of the Pledged Collateral pursuant to this Agreement (except
      as may be required in connection with any disposition of any portion of the
      Pledged Collateral by laws affecting the offering and sale of securities
      generally).

     

    
      
        
        

      

      
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    (d) There
      are
      no conditions precedent to the effectiveness of this Agreement that have not
      been satisfied or waived.

     

    (e) Effective
      on the date of execution of this Agreement, such Pledgor hereby authorizes
      the
      Agent to file one or more financing statements under the UCC with respect to
      the
      Security Interest with the proper filing and recording agencies in the
      jurisdictions indicated on Schedule
      B
      attached
      hereto, and in such other jurisdictions as may be requested by the
      Pledgees.

     

    (f) Such
      Pledgor will not transfer, pledge, hypothecate, sell or otherwise dispose of
      any
      of the Pledged Collateral without the prior written consent of the
      Pledgees.

     

    (g) Such
      Pledgor shall promptly execute and deliver to the Pledgees such further
      assignments, security agreements, financing statements or other instruments,
      documents, certificates and assurances and take such further action as the
      Pledgees may from time to time request and may in its sole discretion deem
      necessary to perfect, protect or enforce its security interest in the Pledged
      Collateral.

     

    (h) All
      information heretofore, herein or hereafter supplied to the Pledgees by or
      on
      behalf of such Pledgor with respect to the Pledged Collateral is accurate and
      complete in all material respects as of the date furnished.

     

    SECTION
      5. Further
      Assurances.
      Each
      Pledgor, severally and not jointly with the other Pledgors, agrees that at
      any
      time and from time to time, at the expense of such Pledgor, the Pledgor shall
      promptly execute and deliver all further instruments and documents, and take
      all
      further action, that may be necessary or desirable, or that the Agent and/or
      the
      Pledgees may reasonably request, in order to perfect and protect any security
      interest granted or purported to be granted hereby or to enable the Agent and/or
      Pledgees to exercise and enforce their rights and remedies hereunder with
      respect to any Pledged Collateral. The Company agrees that at any time and
      from
      time to time, at the expense of the Company, the Company shall promptly execute
      and deliver all further instruments and documents, and take all further action,
      that may be necessary or desirable, or that the Pledgees may reasonably
      request.

     

    SECTION
      6. Voting
      Rights; Dividends; Etc. 

     

    (a) So
      long
      as no Event of Default shall have occurred (unless such Event of Default is
      waived in writing by the Pledgees):

     

    (i) Each
      Pledgor shall be entitled to exercise or refrain from exercising any and all
      voting and other consensual rights pertaining to the Pledged Collateral or
      any
      part thereof for any purpose not inconsistent with the terms of this Agreement;
provided,
      however,
      that
      such Pledgor shall not exercise or refrain from exercising any such right if,
      in
      the reasonable judgment of such Pledgees, such action would have a material
      adverse effect on the Security Interest or the rights and remedies of the
      Pledgees hereunder; provided,
      further,
      that
      such Pledgor shall give the Pledgees at least ten (10) days' prior written
      notice of the manner in which it intends to exercise, or the reasons for
      refraining from exercising, any such right.

     

    
      
        
        

      

      
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    (ii) Each
      Pledgor shall be entitled to receive and retain any and all cash dividends
      and
      interest paid in respect of such Pledgor’s Pledged Collateral.

     

    (b) Upon
      and
      after the occurrence of any Event of Default (unless such Event of Default
      is
      waived in writing by the Pledgees):

     

    (i) All
      rights of each Pledgor to exercise or refrain from exercising the voting and
      other consensual rights which it would otherwise be entitled to exercise
      pursuant to Section 6(a)(i) and to receive the dividends and interest payments
      which it would otherwise be authorized to receive and retain pursuant to Section
      6(a)(ii) shall cease, and all such rights shall thereupon become vested in
      the
      Agent who shall thereupon have the sole right to exercise or refrain from
      exercising such voting and other consensual rights and to receive and hold
      as
      Pledged Collateral such dividends and interest payments.

     

    (ii) All
      dividends and interest payments which are received by the Pledgors contrary
      to
      the provisions of paragraph (i) of this Section 6(b) shall be received in trust
      for the benefit of the Pledgees, shall be segregated from other funds of the
      applicable Pledgor and shall be forthwith paid over to the Agent as Pledged
      Collateral in the same form as so received (with any necessary
      endorsement).

     

    SECTION
      7. Transfers
      and Other Liens; Additional Shares.
      During
      the term of this Agreement, the Pledgor agrees that it shall not (i) sell,
      assign (by operation of law or otherwise) or otherwise dispose of, or grant
      any
      option with respect to, any of the Pledged Collateral, or (ii) create or permit
      to exist any Lien upon or with respect to any of the Pledged Collateral, except
      for the security interest granted pursuant to this Agreement. 

     

    SECTION
      8. Agent
      Appointed Attorney-in-Fact.
      

     

    (a) Effective
      only upon an Event of Default (unless such 

     

    Event
      of
      Default is waived in writing by the Pledgees), the Pledgors hereby appoints
      the
      Agent as the Pledgors’ attorney-in-fact, with full authority in the place and
      stead of, and in the name of, the Pledgors or otherwise, from time to time
      in
      the Agent's discretion to take any action and to execute any instrument which
      the Agent may deem necessary or desirable to accomplish the purposes of this
      Agreement, including, without limitation, to receive, endorse and collect all
      instruments made payable to the Pledgors representing any dividend, interest
      payment or other distribution in respect of the Pledged Collateral or any part
      thereof and to give full discharge for the same.

     

    
      
        
        

      

      
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    (b) Each
      Pledgor, severally and not jointly, authorizes the Agent, and do hereby make,
      constitute and appoint the Agent and its respective officers, agents, successors
      or assigns with full power of substitution, as the Pledgors’ true and lawful
      attorney-in-fact, with power, in the name of the Pledgees or the Pledgors,
      to,
      after the occurrence and during the continuance of an Event of Default, (i)
      endorse any checks, drafts, money orders or other instruments of payment
      (including payments payable under or in respect of any policy of insurance)
      in
      respect of the Pledged Collateral that may come into possession of the Pledgees;
      (ii) to sign and endorse any financing statement pursuant to the UCC or any
      invoice, freight or express bill, bill of lading, storage or warehouse receipts,
      drafts against Pledgors, assignments, verifications and notices in connection
      with accounts, and other documents relating to the Pledged Collateral; (iii)
      to
      pay or discharge taxes, liens, security interests or other encumbrances at
      any
      time levied or placed on or threatened against the Pledged Collateral; (iv)
      to
      demand, collect, receipt for, compromise, settle and sue for monies due in
      respect of the Pledged Collateral; (v) generally, to do, at the option of the
      Pledgees, and at the expense of the Pledgors, severally and jointly, at any
      time, or from time to time, all acts and things which the Pledgees deem
      necessary to protect, preserve and realize upon the Pledged Collateral and
      the
      Security Interest granted herein in order to effect the intent of this Agreement
      all as fully and effectually as the Pledgors might or could do; and (vi) in
      the
      event of the bankruptcy of such Pledgor, to appoint a receiver or equivalent
      person to marshall such Pledgor’s assets, and such Pledgor hereby ratifies all
      that said attorney shall lawfully do or cause to be done by virtue hereof.
      This
      power of attorney is coupled with an interest and shall be irrevocable for
      the
      term of this Agreement and thereafter as long as any of the Obligations shall
      be
      outstanding.

     

    (c)
       Each
      Pledgor hereby irrevocably appoints the Agent as such Pledgor’s
      attorney-in-fact, with full authority in the place and stead of such Pledgor
      and
      in the name of such Pledgor, from time to time in the Agent’s discretion, to
      file in its sole discretion, of one or more financing or continuation statements
      and amendments thereto, relative to any of the Collateral without the signature
      of such Pledgor where permitted by law.

     

    SECTION
      9. Pledgee
      May Perform.
      If any
      Pledgor fails to perform any agreement contained herein, the Agent and/or
      Pledgees may itself perform, or cause performance of, such agreement, and the
      expenses of the Agent and/or Pledgees incurred in connection therewith shall
      be
      payable by such Pledgor under Section 14 hereof.

     

    SECTION
      10. The
      Agent's Duties.
      The
      duties and rights of the Agent are as set forth on Annex
      A
      attached
      hereto and incorporated herein by reference. Any fees of the Agent for its
      services hereunder shall be paid by the Company. The powers conferred on the
      Agent hereunder are solely to protect the interests of the Pledgee in the
      Pledged Collateral and shall not impose any duty upon the Agent to exercise
      any
      such powers. Except for the safe custody of any Pledged Collateral in its
      possession and the accounting for moneys actually received it hereunder, neither
      the Agent nor Pledgee shall have any duty as to any Pledged Collateral, as
      to
      ascertaining or taking action with respect to calls, conversions, exchanges,
      maturities, tenders or other matters relative to any Pledged Collateral, whether
      or not such party has or is to have knowledge of such matters, or as to the
      taking of any necessary steps to preserve rights against any parties or any
      other rights pertaining to any Pledged Collateral. The Agent and Pledgee shall
      be deemed to have exercised reasonable care in the custody and preservation
      of
      any Pledged Collateral in its possession if such Pledged Collateral is accorded
      treatment substantially equal to that which such party accords its own
      property.

     

    
      
        
        

      

      
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    SECTION
      11. Event
      of Default.
      The
      occurrence of any of the following events shall constitute an event of default
      under this Agreement (each, an “Event
      of Default”):

     

    (a) The
      failure of any Pledgor to observe, perform or comply with any act, duty,
      covenant, agreement or obligation under this Agreement, which is not cured
      within ten business days following written notice by Agent to such
      Pledgor;

     

    (b) If
      any of
      the representation or warranty of any Pledgor set forth in this Agreement shall
      be breached or shall be untrue or incorrect in any material respect, and is
      not
      cured within ten business days following written notice by Agent to such
      Pledgor; 

     

    (c) The
      filing of any financing statement with regard to any of the Pledged Collateral
      other than pursuant to this Agreement, or the attachment of any additional
      Lien
      to any portion of the Pledged Collateral in favor of any Person other than
      the
      Pledgees; or

     

    (d) If
      any
      event of default (and expiration of any cure period) shall occur (unless such
      event of default is waived in writing by the Pledgees) under any of the other
      Transaction Documents.

     

    SECTION
      12. Cross-Default;
      Cross-Collateralization.

     

    The
      Pledgors acknowledges and agrees that any default under the terms of this
      Agreement shall constitute a default by the Company under the Notes, and that
      any event of default (following expiration of any applicable cure period) under
      the Notes shall constitute a default under this Agreement.

    

    SECTION
      13. Remedies
      upon Event of Default.
      Upon
      and after the occurrence of any Event of Default:

     

    (a) The
      Agent
      may exercise in respect of the Pledged Collateral, in addition to other rights
      and remedies provided for herein or otherwise available to the Agent (including,
      without limitation, the vesting in the Agent pursuant to Section 6(b)(i) of
      the
      sole right to exercise voting rights pertaining to the Pledged Collateral,
      including, without limitation, voting rights with respect to the sale of assets
      of the issuer of such Pledged Collateral), all the rights and remedies of a
      secured party on default under the UCC, and may also, without notice except
      as
      specified below and subject to the applicable securities laws, sell the Pledged
      Collateral or any part thereof at public or private sale, at any exchange,
      broker's board or at any of the Agent's offices or elsewhere, for cash, on
      credit or for future delivery, and upon such other terms as the Agent may deem
      commercially reasonable. Each Pledgor agrees that, to the extent notice of
      sale
      shall be required by law, at least ten (10) days’ notice to such Pledgor of the
      time and place of any public sale or the time after which any private sale
      is to
      be made shall constitute reasonable notification. The Agent shall not be
      obligated to make any sale of Pledged Collateral regardless of notice of sale
      having been given. The 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. Each Pledgor acknowledges and agrees that the Pledged Collateral
      consisting of the Pledged Shares, and/or any other shares of common stock of
      the
      Company, is of a type customarily sold on a recognized market, and accordingly
      that no notice of the sale thereof need be given. In addition, Agent may
      transfer all of the Pledged Collateral to Pledgees, who may hold all of such
      Pledged Collateral as payment in full of the Obligations

     

    
      
        
        

      

      
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    (b) Any
      cash
      held by the Agent or the Pledgees as Pledged Collateral and all cash proceeds
      received by the Agent or the Pledgees in respect of any sale of, collection
      from, or other realization upon all or any part of the Pledged Collateral may,
      in the discretion of the Agent or the Pledgees, be held as collateral for,
      and/or then or at any time thereafter be applied (after payment of any amounts
      payable pursuant to Section 14) in whole or in part against, all or any part
      of
      the Obligations. Any surplus of such cash or cash proceeds held by the Agent
      or
      the Pledgees and remaining after payment in full of all the Obligations shall
      be
      paid over to the Pledgors, pro-rata, or to whomsoever may be lawfully entitled
      to receive such surplus.

     

    SECTION
      14. Expenses.
      The
      Pledgors and the Company, severally and jointly, shall upon demand pay to the
      Agent and/or the Pledgees the amount of any and all reasonable expenses,
      including reasonable attorneys’ fees and expenses and the reasonable fees and
      expenses of any experts and agents, which the Agent and/or Pledgees may incur
      in
      connection with (a) the administration of this Agreement, (b) the custody or
      preservation of, or the sale of, collection from, or other realization upon,
      any
      of the Pledged Collateral, (c) the exercise or enforcement of any of the rights
      of the Agent and/or Pledgees hereunder or (d) the failure by any Pledgor to
      perform or observe any of the provisions hereof.

     

    SECTION
      15. Continuing
      Security Interest; Termination.
      This
      Agreement shall create a continuing security interest in the Pledged Collateral
      and shall remain in full force and effect until the indefeasible payment in
      full
      of the Obligations. Upon the indefeasible payment in full of the Obligations,
      the security interest granted hereby shall terminate and all rights to the
      Pledged Collateral shall revert to the Pledgors. Upon any such termination,
      the
      Agent shall, at such Pledgors’ expense, return, pro-rata, to the Pledgors such
      of the Pledged Collateral as shall not have been sold or otherwise applied
      pursuant to the terms hereof and execute and deliver to such Pledgors such
      documents as such Pledgors shall reasonably request to evidence such
      termination.

     

    SECTION
      16. Governing
      Law; Terms.
      For the
      convenience of the Agent, this Agreement shall be governed by, and construed
      in
      accordance with, the laws of the State of New York, without regard to principles
      of conflict of laws. Each Pledgor agrees to submit to the in personam
      jurisdiction of the state and federal courts situated within the City of New
      York, State of New York with regard to any controversy arising out of or
      relating to this Agreement. Unless otherwise defined herein, terms defined
      in
      Article 9 of the UCC are used herein as therein defined.

     

    
      
        
        

      

      
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    SECTION
      17. Notice.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been received when delivered personally (which shall include,
      without limitation, via express overnight courier) or if mailed, three (3)
      business days after having been mailed by registered or certified mail, return
      receipt requested, postage prepaid, to the addresses of the parties as set
      forth
      herein.

     

    SECTION
      18. Waivers.

     

    (a) Waivers.
      Each
      Pledgor waives any right to require the Pledgees to (i) proceed against any
      person, (ii) proceed against any other collateral under any other agreement,
      (iii) pursue any other remedy, or (iv) make presentment, demand, dishonor,
      notice of dishonor, acceleration and/or notice of non-payment.

     

    (b) Waiver
      of Defense.
      No
      course of dealing between the Pledgors and the Pledgees, nor any failure to
      exercise nor any delay in exercising on the part of the Agent or Pledgees,
      any
      right, power, or privilege under this Agreement or under any of the other
      Transaction Documents shall operate as a waiver. No single or partial exercise
      of any right, power, or privilege under this Agreement or under any of the
      other
      Transaction Documents shall preclude any other or further exercise of such
      right, power, or privilege or the exercise of any other right, power, or
      privilege.

     

    SECTION
      19. Rights
      Are Cumulative.
      All
      rights and remedies of the Agent and the Pledgees with respect to the Pledged
      Collateral, whether established by this Agreement, the other Transaction
      Documents or by law, shall be cumulative and may be exercised concurrently
      or in
      any order.

     

    SECTION
      20. Indemnity.
      Each
      Pledgor, jointly and severally, agrees to indemnify and hold harmless the Agent,
      the Pledgees and their respective heirs, successors and assigns against and
      from
      all liabilities, losses and costs (including, without limitation, reasonable
      attorneys' fees) arising out of or relating to the taking or the failure to
      take
      action in respect of any transaction effected under this Agreement or in
      connection with the lien provided for herein, including, without limitation,
      any
      and all excise, sales or other taxes which may be payable or determined to
      be
      payable with respect to any of the Pledged Collateral, except to the extent
      resulting from their gross negligence or intentional misconduct. The liabilities
      of the Pledgors under this Section 20 shall survive the termination of this
      Agreement.

     

    SECTION
      21. Severability.
      The
      provisions of this Agreement are severable. If any provision of this Agreement
      is held invalid or unenforceable in whole or in part in any jurisdiction, then
      such invalidity or unenforceability shall affect only such provision, or part
      thereof, in such jurisdiction, and shall not in any manner affect such provision
      or part thereof in any other jurisdiction, or any other provision of this
      Agreement in any jurisdiction. 

     

    SECTION
      22. Counterparts.
      This
      Agreement may be executed in several counterparts, each of which shall be
      considered an original, but all of which together shall constitute one and
      the
      same instrument.

     

    SECTION
      23. Amendments;
      Entire Agreement.
      This
      Agreement is subject to modification only by a writing signed by the parties.
      To
      the extent any provision of this Agreement conflicts with any provision of
      the
      Notes, the provision giving Pledgees greater rights or remedies shall govern,
      it
      being understood that the purpose of this Agreement is to add to, and not
      detract from, the rights granted to Pledgees under the Notes. This Agreement
      and
      the other Transaction Documents constitute the entire agreement of the parties
      with respect to the subject matter of this Agreement.

     

    
      
        
        

      

      
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    SECTION
      24. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, executors, legal representatives, successors and
      assigns; provided,
      however,
      that no
      Pledgor may, without the prior written consent of the Pledgees, assign or
      delegate any rights, powers, duties or obligations hereunder, and any such
      purported assignment or delegation without such consent shall be null and
      void.

     

    

     

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

    

    

    
      	 	
              PLEDGORS:

            
	 	 
	 	
              /s/
                Louis
                Slaughter                                                
                

            
	 	
              Louis
                Slaughter

            
	 	 
	 	
              /s/
                Douglas G.
                Lockie                                           
                

            
	 	
              Douglas
                Lockie

            
	 	 
	 	 
	 	
              THE
                COMPANY:

            
	 	 
	 	
              GIGABEAM
                CORPORATION

            
	 	 
	 	 
	 	
              By:
                /s/ Louis S.
                Slaughter                                      

            
	 	
              Name:
                Louis S. Slaughter

            
	 	
              Title:
                CEO

            
	 	 
	 	
              AGENT:

            
	 	 
	 	
              FELDMAN
                WEINSTEIN & SMITH LLP

            
	 	 
	 	 
	 	
              By:
                /s/Robert
                Charron                                             

            
	 	
              Name:
                Robert Charron

            
	 	
              Title:
                Partner

            

    

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE FOR PLEDGEES FOLLOWS]

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    [PLEDGEE
      SIGNATURE PAGES TO GGBM PLEDGE AND SECURITY AGREEMENT]

    

    

    Name
      of
      Pledgee:     Midsummer Investment,
      Ltd.

     

    Signature
      of Authorized Signatory of Pledgee:     /s/
      Michael
      Amsalem

     

    Name
      of
      Authorized Signatory:     Michael
      Amsalem

     

    Title
      of
      Authorized Signatory:     Director

     

    E-mail
      Address of Authorized Signatory: ma@midsummercapital.com

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      A

    

    Pledged
      Shares

    

    800,000
      shares of Gigabeam Corporation certificated as follows:

    

    
      	
              Pledgor:

            	
              Number
                of Shares:

            	
              Certificate
                Number:

            
	 	 	 
	
              Louis
                Slaughter

            	
              400,000

            	 
	 	 	 
	
              Douglas
                Lockie

            	
              400,000

            	 

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B

    

    
 

     

    
      
        
        

      

      
        13EXHIBIT 10.1

                    CERTIFICATE OF DESIGNATION, PREFERENCES,

                             RIGHTS AND LIMITATIONS

                                       OF

                      SERIES A CONVERTIBLE PREFERRED STOCK

                                       OF

                              CALIBRE ENERGY, INC.

         PURSUANT to Section 78.1955 of the Nevada Revised Statutes (the "NRS"),
CALIBRE ENERGY, INC., a corporation organized and existing under the NRS (herein
referred to as the "Corporation"), DOES HEREBY CERTIFY:

         That,  pursuant to authority  conferred  upon the Board of Directors of
the Corporation (the "Board of Directors") by its Articles of Incorporation,  as
amended,  and pursuant to the  provisions  of Section  78.1955 of the NRS,  such
Board of Directors, duly adopted a resolution providing for the establishment of
a series of 8,000,000  shares of the  Corporation's  preferred  stock, par value
$.001 per share  ("Preferred  Stock"),  to be  designated  "Series A Convertible
Preferred  Stock",  and fixing  the voting  powers,  preferences  and  relative,
participating, optional or other rights, and the qualifications,  limitations or
restrictions thereof, which resolution is as follows;

         RESOLVED,  that pursuant to the authority  expressly granted and vested
in the Board of Directors of the  Corporation in accordance  with the provisions
of its Articles of  Incorporation,  as amended,  there shall be established  and
authorized for issuance a series of the Corporation's Preferred Stock, par value
$.001 per share,  designated "Series A Convertible Preferred Stock",  consisting
of 8,000,000  shares,  each of the par value of $0.001 per share, and having the
voting  powers,  preferences  and  relative,  participating,  optional and other
rights, and the qualifications, limitations or restrictions set forth below:

                  A.  Designation.  The  Series A  Convertible  Preferred  Stock
     having the rights, preferences, privileges and restrictions set forth below
     shall be designated and known as "Series A Convertible Preferred Stock."

                  B. Number of Shares of Series A Convertible  Preferred  Stock.
     The number of shares constituting all of the Series A Convertible Preferred
     Stock shall be 8,000,000.

                  C.  Dividends.  Dividends  shall be  payable  on the  Series A
     Convertible Preferred Stock if, as and when dividends are declared and paid
     by the Corporation on its common stock,  $.001 par value per share ("Common
     Stock"),  so that each holder of a share of Series A Convertible  Preferred
     Stock  shall be entitled  to receive  the amount of  dividends  such holder
     would have received if its shares of Series A Convertible  Preferred  Stock
     had already  been  converted  into shares of Common  Stock  pursuant to the
     terms hereof.

<PAGE>

                  D.  Voting.  The  voting  power  of each  share  of  Series  A
     Convertible  Preferred Stock shall be equal to the number of votes required
     to cause  the  aggregate  of the  votes  entitled  to be cast by all of the
     issued and outstanding Series A Convertible Preferred Stock to equal 51% of
     all votes  entitled to be cast by all classes of stock of the  Corporation.
     The Series A Convertible  Preferred  Stock shall be entitled to vote on any
     and all matters  brought to a vote of holders of Common  Stock.  Holders of
     Series A  Convertible  Preferred  Stock  shall be entitled to notice of all
     shareholder  meetings or written  consents with respect to which they would
     be entitled to vote,  which  notice would be provided to the holders of the
     Common Stock pursuant to the Corporation's Bylaws and applicable statutes.

                  E. Liquidation Preference.

                    (1) In the event of any liquidation,  dissolution or winding
up of the Corporation,  either voluntary or involuntary (a "liquidation event"),
a holder of the  Series A  Convertible  Preferred  Stock  shall be  entitled  to
receive out of the assets of the Corporation  available for  distribution to its
shareholders,  prior to the holders of the common stock of the  Corporation  and
the holders of Preferred  Stock with rights  junior to the Series A  Convertible
Preferred Stock, for each share of Series A Convertible  Preferred Stock held by
such holder, $.625 per share (the "Liquidation Preference").

                    (2) After payment has been made to the holders of the Series
A Convertible  Preferred  Stock of the full  preferential  amounts to which they
shall be entitled pursuant to this Section E(1), if any, except as otherwise set
forth in the  Corporation's  Article  of  Incorporation  or any  other  document
establishing  an  additional  series of Preferred  Stock,  the entire  remaining
assets and funds of the Corporation legally available for distribution,  if any,
shall be  distributed  pro rata  among the  holders of Common  Stock.  After the
payment or  distribution  to the holders of the Series A  Convertible  Preferred
Stock of their full preferential amounts have been made, the holders of Series A
Convertible   Preferred   Stock  shall  not  be   entitled  to  any   additional
distributions with respect to the Series A Convertible Preferred Stock.

                    (3) Prior to a liquidation  event, the Corporation shall (to
the  extent  practicable),  no  later  than  fifteen  (15)  days  prior  to  the
liquidation  event, give written notice of such liquidation event to all holders
of Series A Convertible Preferred Stock.

                  F. Conversion Rights.

                    (1) Each holder of shares of Series A Convertible  Preferred
Stock  shall be  entitled  at any time to cause any or all of such  shares to be
converted into shares of Common Stock on the basis of the Conversion  Ratio then
in effect, as determined pursuant to the provisions of this Section F, provided,
however,  that the conversion of the Series A Convertible  Preferred Stock shall
not be effective  until the Articles of  Incorporation  of the Company have been
amended to increase the number of authorized  shares of Common Stock to at least
200,000,000 shares (the "Amendment").

                    (2) Each share of Series A Convertible Preferred Stock shall
be convertible  into shares of Common Stock based on the ratio required to cause
the number of shares of Common Stock  issuable upon the  conversion of 8,000,000
shares  of  Series A  Preferred  Stock to equal  75% of the  number of shares of
Common Stock then issued and outstanding (the "Conversion Ratio").

                                       2
<PAGE>

                    (3) Each  holder of  Series A  Convertible  Preferred  Stock
desiring  to  convert  any or all of such  shares  into  shares of Common  Stock
pursuant to paragraph (1) of this Section F shall  surrender the  certificate or
certificates  representing  the shares of Series A Convertible  Preferred  Stock
being  converted,  duly assigned or endorsed for conversion  (or  accompanied by
duly executed stock powers relating thereto),  at the principal executive office
of the  Corporation  or the  offices  of the  transfer  agent  for the  Series A
Convertible  Preferred Stock or such office or offices in the continental United
States of an agent for  conversion  as may from  time to time be  designated  by
notice  to the  holders  of the  Series  A  Convertible  Preferred  Stock by the
Corporation or the transfer agent for the Series A Convertible  Preferred Stock,
accompanied  by written notice of  conversion.  Such notice of conversion  shall
specify (a) the number of shares of Series A Convertible  Preferred  Stock to be
converted,  and (b) the address to which such holder wishes  delivery to be made
of such new certificates to be issued upon such conversion.

                    (4) Upon surrender of a certificate  representing a share or
shares of  Series A  Convertible  Preferred  Stock for  conversion  pursuant  to
paragraph (3) of this Section F, the Corporation shall, within five (5) business
days of such surrender,  issue and send (with receipt to be acknowledged) to the
holder  thereof,  at the address  designated by such holder,  a  certificate  or
certificates  for the number of validly  issued,  fully paid and  non-assessable
shares of Common Stock to which such holder shall be entitled  upon  conversion.
In  the  event  that  there  shall  have  been   surrendered  a  certificate  or
certificates  representing shares of Series A Convertible  Preferred Stock, only
part of which are to be converted,  the  Corporation  shall issue and deliver to
such holder a new certificate or certificates  representing the number of shares
of Series A Convertible Preferred Stock which shall not have been converted.

                    (5) The  issuance  by the  Corporation  of  shares of Common
Stock pursuant to this Section F shall be effective as of the earlier of (a) the
delivery to such holder of the  certificates  representing  the shares of Common
Stock issued upon conversion  thereof,  or (b) immediately prior to the close of
business on the day of  surrender of the  certificate  or  certificates  for the
shares of Series A Convertible Preferred Stock to be converted, duly assigned or
endorsed for conversion (or  accompanied by duly executed stock powers  relating
thereto)  as  provided  in this  Certificate  of  Designation.  On and after the
effective day of the conversion,  the person or persons  entitled to receive the
Common Stock issuable upon such conversion  shall be treated for all purposes as
the record holder or holders of such shares of Common Stock.

                    (6) The  Corporation  shall  not be  obligated  to issue and
deliver any  fractional  share of Common Stock upon any  conversion of shares of
Series A  Convertible  Preferred  Stock,  but in lieu  thereof  shall pay to the
holder  converting  such Series A Convertible  Preferred Stock an amount of cash
equal to the  fractional  share of Common Stock that  otherwise  would have been
issued upon conversion rounded to the nearest 1/100th of a share of Common Stock
multiplied by the conversion  price  indicated by the  Conversion  Ratio and the
Liquidation Preference then in effect.

                    (7) After the Amendment becomes  effective,  the Corporation
shall at all times reserve and keep available out of its authorized and unissued
Common Stock or treasury  shares,  solely for issuance  upon the  conversion  of
shares of Series A Convertible Preferred Stock as herein provided, free from any

                                       3
<PAGE>

preemptive  rights,  such number of shares of Common  Stock as shall be issuable
upon the  conversion of all the shares of Series A Convertible  Preferred  Stock
then outstanding.

                    (8) The  Series  A  Convertible  Preferred  Stock  shall  be
automatically converted without any action or notice from either the Corporation
or any holder of the Series A Convertible  Preferred Stock into shares of Common
Stock as provided in this Paragraph F on April 30, 2009, provided, however, that
if for any reason the Amendment has not become  effective as of such date,  then
such  automatic  conversion  shall be  deferred  and become  effective  when the
Amendment becomes effective.

                  G. Anti-dilution  Adjustments.  If, prior to the conversion of
all of the Series A  Convertible  Preferred  Stock,  there  shall be any merger,
consolidation,  exchange of shares, recapitalization,  reorganization,  or other
similar  event,  as a result of which shares of Common Stock of the  Corporation
shall be changed  into the same or a  different  number of shares of the same or
another class or classes of stock or securities  of the  Corporation  or another
entity,  which is not deemed to be a  liquidation  event  pursuant  to Section E
hereof,  then  the  holders  of  Series  A  Convertible  Preferred  Stock  shall
thereafter  have the right to receive upon  conversion  of Series A  Convertible
Preferred  Stock,  upon the basis and upon the  terms and  conditions  specified
herein and in lieu of shares of Common Stock,  immediately  theretofore issuable
upon  conversion,  such stock,  securities  and/or other assets which the holder
would  have been  entitled  to  receive  in such  transaction  had the  Series A
Convertible   Preferred   Stock  been  converted   immediately   prior  to  such
transaction,  and in any such  case  appropriate  provisions  shall be made with
respect to the rights and  interests of the holders of the Series A  Convertible
Preferred  Stock to the end  that  the  provisions  hereof  (including,  without
limitation, provisions for the adjustment of the Conversion Ratio and the number
of shares issuable upon conversion of the Series A Convertible  Preferred Stock)
shall  thereafter be applicable,  as nearly as may be practicable in relation to
any  securities   thereafter   deliverable  upon  the  conversion  thereof.  The
Corporation  shall not effect any  transaction  subject to this Section G unless
(a) it first gives  fifteen  (15)  calendar  days prior  notice of such  merger,
consolidation,  exchange of shares, recapitalization,  reorganization,  or other
similar  event  (during  which  time the  holders  of the  Series A  Convertible
Preferred  Stock  shall be  entitled  to  convert  their  Series  A  Convertible
Preferred Stock into shares of Common Stock to the extent permitted hereby),  or
(b) the resulting successor or acquiring entity (if not the Corporation) assumes
by  written  instrument  the  obligation  of  the  Corporation  under  the  this
Designation and the Articles of Incorporation of the Corporation.

                  H. Amendment.  The  Corporation may amend this  Certificate of
Designation  only with the  approval of a majority  of the Series A  Convertible
Preferred Stock issued and outstanding.

                  I. Miscellaneous.

                    (1) Except as specifically set forth herein,  all notices or
communications  provided for or permitted  hereunder shall be made in writing by
hand  delivery,  express  overnight  courier,  registered  first class mail,  or
telecopier  addressed (a) if to the Corporation,  to its office at 1667 K Street
NW, Suite 1230, Washington, D.C. 20006, Telecopier:  202/223-4406, and (b) if to
the holder of the Series A Convertible  Preferred  Stock,  to such holder at the
address of such holder as listed in the stock record books of the Corporation or
to such other  address as the  Corporation  or such holder,  as the case may be,

                                       4
<PAGE>

shall  have  designated  by  notice   similarly  given.  All  such  notices  and
communications  shall be deemed to have been duly given: when delivered by hand,
if personally  delivered;  five (5) business  days after being  deposited in the
mail,  registered or certified mail, return receipt requested,  postage prepaid,
if mailed;  when received  after being  deposited in the regular mail;  the next
business day after being deposited with an overnight courier,  if deposited with
a  nationally  recognized,  overnight  courier  service;  and  when  receipt  is
acknowledged,  if by  telecopier,  so long as  followed  up on the  same  day by
overnight courier.

                    (2) The Corporation shall pay any and all stock transfer and
documentary  stamp  taxes that may be payable  in  respect  of any  issuance  or
delivery of shares of Series A Convertible  Preferred  Stock or shares of Common
Stock or other  securities  issued on account of Series A Convertible  Preferred
Stock pursuant  hereto or certificates  representing  such shares or securities.
The Corporation shall not, however, be required to pay any such tax which may be
payable in respect of any  transfer  involved  in the  issuance  or  delivery of
shares  of  Series  A  Convertible  Preferred  Stock  or  Common  Stock or other
securities in a name other than that in which the shares of Series A Convertible
Preferred Stock with respect to which such shares or other securities are issued
or delivered  were  registered,  or in respect of any payment to any person with
respect to any such shares or securities  other than a payment to the registered
holder thereof, and shall not be required to make any such issuance, delivery or
payment  described  in this  sentence  unless  and  until the  person  otherwise
entitled to such issuance,  delivery or payment has paid to the  Corporation the
amount  of  any  such  tax  or  has  established,  to  the  satisfaction  of the
Corporation, that such tax has been paid or is not payable.

                    (3) In the  event  that the  holder  of  shares  of Series A
Convertible Preferred Stock shall not by written notice designate the address to
which the certificate or certificates  representing shares of Common Stock to be
issued upon conversion of such shares should be sent, the  Corporation  shall be
entitled to send the certificate or certificates representing such shares to the
address of such holder shown on the records of the  Corporation  or any transfer
agent for the Series A Convertible Preferred Stock.

                    (4) The  Corporation  may  appoint,  and  from  time to time
discharge and change,  a transfer  agent of the Series A  Convertible  Preferred
Stock.  Upon  any  such  appointment  or  discharge  of a  transfer  agent,  the
Corporation shall send notice thereof by first-class mail,  postage prepaid,  to
each holder of record of Series A Convertible Preferred Stock.

                    (5) The Corporation shall appoint, and from time to time may
replace,  a conversion agent for the Series A Convertible  Preferred Stock. Upon
any such replacement of the conversion  agent, the Corporation shall send notice
thereof by first-class mail, postage prepaid, to each holder of record of Series
A Convertible Preferred Stock.

                    (6) Any  Series  A  Convertible  Preferred  Stock  redeemed,
purchased,  converted or  otherwise  acquired by the  Corporation  in any manner
whatsoever shall not be reissued as part of such Series A Convertible  Preferred
Stock and shall be retired  promptly after the acquisition  thereof and returned
to the authorized and unissued shares of Preferred Stock of the Corporation.

                    (7) The  Series  A  Convertible  Preferred  Stock  shall  be
transferable  by the holders,  provided that such transfer is made in compliance

                                       5
<PAGE>

with applicable federal and state securities laws and any applicable  agreements
between the Corporation and the holders of Series A Convertible Preferred Stock.

                           (8) Nothing  contained  herein  shall be construed to
prevent  the Board of  Directors  of the  Corporation  from  issuing one or more
series of preferred stock with dividend and/or liquidation preferences junior to
the Series A Convertible Preferred Stock.

                     [REST OF PAGE INTENTIONALLY LEFT BLANK]

                                       6
<PAGE>

         IN WITNESS WHEREOF, Calibre Energy, Inc. has caused this Certificate of
Designation to be signed by a duly authorized representative on this 13th day of
April, 2007.

                               CALIBRE ENERGY, INC.

                               By:
                                  ----------------------------------------------
                               Name:
                                    --------------------------------------------
                               Title:
                                     -------------------------------------------

                                       7

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