Document:

Exhibit 4.5

GUARANTY

GUARANTY dated as of July 24th, 2006 (“Guaranty”)
made by Terry Kiefer, an individual residing in the State of Texas (“Guarantor”),
in favor of John Fife (“Lender”).

W  I  T  N  E
S  S  E  T  H

WHEREAS, National Storm Management, Inc., a Nevada
corporation (the “Borrower”), and the Lender are parties to a Note, dated as of
July 24th, 2006 (such agreement, as amended, restated, supplemented or
otherwise modified from time to time, being hereinafter referred to as the “Note”);

WHEREAS, pursuant to the Note, the Guarantor is
required to execute and deliver to the Lender a guaranty guaranteeing the Note
and all other obligations under the Note and the other Loan Documents; and

WHEREAS, the Guarantor has determined that (i) it
will derive substantial benefit and advantage from the Loan and other financial
accommodations made available to the Borrower under the Note and the other Loan
Documents and (ii) its execution, delivery and performance of this
Guaranty directly benefit, and are within the best interests of, the Guarantor;

NOW, THEREFORE, in consideration of $1,000 receipt of
which is hereby acknowledged, the premises, the agreements herein and in order
to induce the Lender to make and maintain the Loan pursuant to the Note, the
Guarantor hereby agrees with the Lender, as follows:

Section 1.               Definitions.
Reference is hereby made to the Note for a statement of the terms thereof.  All terms used in this Guaranty which are
defined in the Note and not otherwise defined herein shall have the same meanings
herein as set forth therein.  As used in
this Guaranty, the following terms have the following meanings (terms defined
in the singular to have the same meaning when used in the plural and vice
versa):

“Borrower” has the meaning specified in the preamble
above.

“Guaranty” means this Guaranty.

“Guaranty Documents” means the Loan Documents and any
document or agreement evidencing, related to or delivered in connection with
any or all of the Guaranteed Obligations.

“Guaranteed Obligations” means any and all present and
future liabilities and obligations of Borrower and Guarantor to Lender incurred
by Borrower and Guarantor under the Loan Documents, and whether due or to
become due, secured or unsecured, absolute or contingent, joint or several,
direct or indirect, acquired outright, conditionally or as collateral security
by Lender from another, liquidated or unliquidated, arising by operation of law
or otherwise, together with all fees and expenses incurred in collecting any or
all of the items specified in this definition or enforcing any rights under any
of the Guaranty Documents, including all fees and expenses of Lender’s counsel
and of any experts and agents which may be paid or incurred by Lender in
collecting any such items or enforcing any such rights.

Section 2.               Rules of
Interpretation. When used in this Guaranty: (1) ”or” is not exclusive,
(2) a reference to a law includes any amendment or modification to such
law, and (3) a reference to an agreement, instrument or document includes
any amendment or modification of such agreement, instrument or document.

 

Section 3.               Guaranty.
Guarantor hereby guarantees to Lender and its successors, endorsees,
transferees and assigns the prompt and complete payment, as and when due and
payable (whether at stated maturity or by required prepayment, acceleration,
demand or otherwise), of all of the Guaranteed Obligations now existing or
hereafter incurred will be paid strictly in accordance with their terms.

Section 4.               Limitation
of Liability.  The obligation of
Guarantor under this Guaranty shall be limited to an aggregate amount equal to
the largest amount that would not render the obligation of Guarantor under this
Guaranty subject to avoidance under Section 548 of the United States
Bankruptcy Code or any comparable provision of any applicable state law.

Section 5.               Type
of Guaranty. This Guaranty is absolute and unconditional and as such is not
subject to any conditions and Guarantor is fully liable to perform all of its
duties and obligations under this Guaranty as of the date of execution of this
Guaranty. This Guaranty is a continuing guaranty and applies to all future
Guaranteed Obligations. In addition, this Guaranty shall remain in full force
and effect even if at any time there are no outstanding Guaranteed Obligations.
This Guaranty is a guaranty of payment and not of collection. The obligations
and liabilities of Guarantor under this Guaranty shall not be conditioned or
contingent upon the pursuit by Lender of any right or remedy against Borrower,
Guarantor or any other person which may be or become liable in respect of all
or any part of the Guaranteed Obligations, or against any assets securing the
payment of the Guaranteed Obligations or guarantee for such Guaranteed
Obligations or right of setoff with respect to such Guaranteed Obligations.
This Guaranty is irrevocable and as such cannot be cancelled, terminated or
revoked by Guarantor.

Section 6.               Reinstatement
of Guaranty. This Guaranty shall continue to be effective or shall be
reinstated, as the case may be, if at any time any payment, or any part
thereof, of any of the Guaranteed Obligations are rescinded or must otherwise
be returned by Lender upon the insolvency, bankruptcy, dissolution, liquidation
or reorganization of Borrower, Guarantor or otherwise, all as though such
payment had not been made.

Guarantor hereby consents that, without the necessity
of any reservation of rights against Guarantor and without notice to or further
assent by Guarantor, any demand for payment of any of the Guaranteed Obligations
made by Lender may be rescinded by Lender and any of such Guaranteed
Obligations continued after such rescission.

Section 7.               Security
Interest. To secure the payment of the obligations of Guarantor under this
Guaranty, Guarantor has contemporaneously executed a Stock Pledge Agreement in
favor of, and grants Lender a pledge and security interest in the Pledged
Shares listed in Schedule 1 to the Stock Pledge Agreement.

Section 8.               Waiver
of Notices. Guarantor hereby waives any and all notices including (1) notice
of or proof of reliance by Lender upon this Guaranty or acceptance of this
Guaranty, (2) notice of the incurrence of any Guaranteed Obligations or
the renewal, extension or accrual of any such Guaranteed Obligations, (3) notice
of any actions taken by Lender, Borrower, Guarantor or any other person under
any Guaranty Document, and (4) notices of nonpayment or nonperformance,
protest, notices of protest and notices of dishonor.

Section 9.               Waiver
of Defenses. Guarantor hereby waives any and all defenses to the
performance by Guarantor of its duties and obligations under this Guaranty,
including any defense based on any of the following:

(1)           any
failure of Lender to disclose to Guarantor any information relating to the
business, condition (financial or otherwise), operations, performance,
properties or prospects of any party obligated to make payment on any and all
Guaranteed Obligations, whether as principal or guarantor, now or hereafter
known to Lender,

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(2)           any
defense to the payment of any or all the Guaranteed Obligations, including lack
of validity or enforceability of any of the Guaranteed Obligations or any
Guaranty Documents,

(3)           any
change in the time, manner or place of payment of, or in any other term in
respect of, all or any of the Guaranteed Obligations, or any other amendment or
waiver of or consent to any departure from any Guaranty Document,

(4)           any
exchange or release of, or non-perfection of any security interest on or in any
assets securing the payment of the Guaranteed Obligations,

(5)           any
failure to execute any other guaranty for all or any part of the Guaranteed
Obligations, or any release or amendment or waiver of, or consent to any
departure from, any other guaranty for any or all of the Guaranteed
Obligations,

(6)           any subordination of any or all of
the Guaranteed Obligations,

(7)           any
act or omission of Lender in connection with the enforcement of, or the
exercise of rights and remedies, including any election of, or the order of
exercising any, remedies, with respect to (a) the Guaranteed Obligations, (b) any
other guarantor of the Guaranteed Obligations, or (c) any assets securing
the payment of the Guaranteed Obligations,

(8)           any
manner of application of any funds received by Lender to Guaranteed Obligations
or any other obligations owed to Lender, whether from the sale or disposition
of any assets securing the Guaranteed Obligations, from another guarantor of
the Guaranteed Obligations or otherwise, and

(9)           any
failure to give or provide any notices, demands or protests, including those
specified under Section 8 herein, entitled “Waiver of Notices”.

Section 10.             Subrogation.
Guarantor may not exercise any rights which Guarantor may acquire by way of
subrogation or contribution, whether acquired by any payment made under this
Guaranty, by any setoff or application of funds of Borrower, by Lender or
otherwise, until (1) the payment in full of the Guaranteed Obligations
(after Lender no longer has any obligation or arrangement to provide credit to
Borrower, including under or pursuant to a line of credit), and (2) the
payment of all fees and expenses to be paid by Guarantor pursuant to this
Guaranty.  If any amount shall be paid to
Guarantor on account of such subrogation or contribution rights at any time
when all of the Guaranteed Obligations and all such other expenses shall not
have been paid in full (after Lender no longer has any obligation or
arrangement to provide credit to Borrower, including under or pursuant to a
line of credit), such amount shall be held in trust for the benefit of Lender,
shall be segregated from the other funds of Guarantor and shall forthwith be
paid over to Lender to be credited and applied in whole or in part by Lender
against the Guaranteed Obligations, whether matured or unmatured, and all such
other fees and expenses in accordance with the terms of the Guaranty Documents.

Section 11.             Representations.
At the time of execution of this Guaranty and each time Lender provides credit
as noted above, Guarantor represents and warrants to Lender as follows:

(1)           Name.  The exact legal name of the Guarantor is the
name specified in the preamble to this Guaranty.  The Guarantor has not been known by any other
name during the five (5) years prior to the date of the Guaranty.

(2)           Location.  The principal residence of the Guarantor
is  2062 Azalea, Irving, TX 75063.

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(3)           No
Contravention.  The execution,
delivery and performance by Guarantor of this Guaranty do not and will not (a) violate
any provision of any law, order, writ, judgment, injunction, decree,
determination, or award presently in effect applicable to Guarantor, (b) result
in a breach of or constitute a default under any indenture or loan or credit
agreement or any other agreement, lease, or instrument to which Guarantor is a
party or by which Guarantor or its properties may be bound or affected, or (c) result
in, or require, the creation or imposition of any lien upon or with respect to
any of the properties now owned or hereafter acquired by Guarantor.

(4)           Governmental
Authority.  No authorization,
approval or other action by, and no notice to or filing with, any governmental
authority is required for the due execution, delivery and performance by
Guarantor of this Guaranty.

(5)           Legally
Enforceable Guaranty.  This Guaranty
is the legal, valid and binding obligation of Guarantor, enforceable against
Guarantor in accordance with its terms, except to the extent that such
enforcement may be limited by (a) applicable bankruptcy, insolvency, and
other similar laws affecting creditors’ rights generally, or (b) general
equitable principles, regardless of whether the issue of enforceability is
considered in a proceeding in equity or at law.

Section 12.             Remedies.  Lender shall not, by any act, delay, omission
or otherwise, be deemed to have waived any of its rights or remedies under this
Guaranty or otherwise. A waiver by Lender of any right or remedy hereunder on
any one occasion, shall not be construed as a ban or waiver of any such right
or remedy which Lender would have had on any future occasion, nor shall Lender
be liable for exercising or failing to exercise any such right or remedy. The
rights and remedies of Lender under this Guaranty are cumulative and, as such,
are in addition to any other rights and remedies available to Lender under law
or any other agreements.

Section 13.             Appointment
as Attorney-in-Fact.  Guarantor
hereby appoints Lender as the attorney-in-fact for Guarantor, with full
authority in the place and stead of Guarantor and in the name of Guarantor or
otherwise, to exercise all rights and remedies granted to Lender under this
Guaranty and to take any action and to execute any instrument which Lender may
deem necessary or advisable to accomplish the purposes of this Guaranty.

Section 14.             Indemnity
and Expenses. Guarantor hereby indemnifies Lender from and against any and
all claims, losses, damages and liabilities growing out of or resulting from
this Guaranty (including, without limitation, enforcement of this Guaranty),
except claims, losses, damages or liabilities resulting from Lender’s gross
negligence and willful misconduct.

Guarantor will upon demand pay to Lender the amount of
any and all expenses, including the fees and expenses of its counsel and of any
experts and agents, which Lender may incur in connection with (1) any
amendment to this Guaranty, (2) the administration of this Guaranty, (3) the
exercise or enforcement of any of the rights of Lender under this Guaranty, or (4) the
failure by Guarantor to perform or observe any of the provisions of this
Guaranty.

Section 15.             Amendments.  No amendment or waiver of any provision of
this Guaranty, nor consent to any departure by Guarantor from this Guaranty,
shall in any event be effective unless the same shall be in writing and signed
by Guarantor and Lender, and then such amendment or waiver shall be effective
only in the specific instance and for the specific purpose for which given.

Section 16.             Addresses
for Notices. All notices and other communications provided for under this
Guaranty shall be in writing and, mailed or delivered by messenger or overnight
delivery service, addressed, in the case of Guarantor at its address specified
below its signature, and in the case of Lender at

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the address specified
below, or as to any such party at such other address as shall be designated by
such party in a written notice to the other party complying as to delivery with
the terms of this Section.

If to Lender:

John
Fife

303
East Wacker Drive

Suite 301

Chicago, IL 60601

If to Guarantor:

Terry
Kiefer

202
Azalea

Irving, TX 75063

With Copies to:

Darrin
Ocasio, Esq.

Sichenzia
Ross Friedman Ference LLP

1065
Avenue of the Americas, 21st Floor

New
York, NY 10018

Fax: (212) 930-9725

All such notices and other communications shall, when
mailed, be effective three (3) days after being placed in the mails, or
when delivered to a messenger or overnight delivery service, be effective one (1) day
after being delivered to the messenger or overnight delivery service, in each
case, addressed as specified above.

Section 17.             Assignment
and Transfer of Obligations. This Guaranty will bind the estate of
Guarantor as to Guaranteed Obligations created or incurred both before and
after the death or incapacity of Guarantor, whether or not Lender receives
notice of such death or incapacity. This Guaranty shall inure to the benefit of
Lender and its successors, transferees and assigns. Guarantor may not transfer
or assign its obligations under this Guaranty. Lender may assign or otherwise
transfer all or a portion of its rights or obligations with respect to the
Guaranteed Obligations to any other party, and such other party shall then
become vested with all the benefits in respect of such transferred Guaranteed
Obligations granted to Lender in this Guaranty or otherwise. Guarantor agrees
that Lender can provide information regarding Guarantor to any prospective or
actual successor, transferee or assign.

Section 18.             Setoff.
Guarantor agrees that, in addition to, and without limiting, any right of
setoff, Lender’s lien or counterclaim Lender may otherwise have, Lender shall
be entitled, at its option, to offset balances (general or special, time or
demand, provisional or final) held by it for the account of Guarantor, at any
of the offices of Lender, in Dollars or any other currency, against any amount
payable by Guarantor to Lender under this Guaranty which is not paid when
demanded (regardless of whether such balances are then due to Guarantor), in
which case Lender shall promptly notify Guarantor, provided that Lender’s
failure to give such notice shall not affect the validity of such offset.

Section 19.             Submission
to Jurisdiction. Guarantor hereby irrevocably submits to the jurisdiction
of any federal or state court sitting in Cook County in the State of Illinois
over any action or proceeding arising out of or related to this Guaranty and agrees
with Lender that personal jurisdiction over Guarantor rests with such courts
for purposes of any action on or related to this Guaranty. Guarantor hereby
waives personal service by manual delivery and agrees that service of process
may be made by prepaid

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certified mail directed
to Guarantor at the address of Guarantor for notices under this Guaranty or at
such other address as may be designated in writing by Guarantor to Lender, and
that upon mailing of such process such service will be effective as if
Guarantor was personally served. Guarantor agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any manner provided by law.
Guarantor further waives any objection to venue in any such action or
proceeding on the basis of inconvenient forum. Guarantor agrees that any action
on or proceeding brought against Lender shall only be brought in such courts.

Section 20.             Governing
Law.  This Guaranty shall be governed
by and construed in accordance with the laws of the State of Illinois without
regard to its principles of conflicts of law.

Section 21.             Subordination.
Once a demand for payment is made on the Guarantor under this Guaranty,
Guarantor will not (1) make any demand for payment of, or take any action
to accelerate, any obligation owed to Guarantor by Borrower, (2) seek to
collect payment of, or enforce any right or remedies against Borrower, of any
of the obligations owed to Guarantor by Borrower or any guarantees, credit
supports, collateral or other security related to or supporting any of such
obligations, or (3) commence, or join with any other creditor in
commencing, any bankruptcy or similar proceeding against Borrower. Guarantor
also agrees that the payment of all obligations of Borrower to Guarantor shall
be subordinate and junior in time and right of payment in accordance with the
terms of this Section to the prior payment in full (in cash) of the
Guaranteed Obligations. In furtherance of such subordination, (1) to the
extent possible, Guarantor will not take or receive from Borrower any payments,
in cash or any other property, by setoff or any other means, of any or all of
the obligations owed to Guarantor by Borrower, or purchase, redeem, or otherwise
acquire any of such obligations, or change the terms or provisions of any such
obligations and (2) if for any reason and under any circumstance Guarantor
receives a payment on such obligation, whether in a bankruptcy or similar
proceeding or otherwise, all such payments or distributions upon or with
respect to such obligations shall be received in trust for the benefit of
Lender, shall be segregated from other funds and property held by Guarantor and
shall be forthwith paid over to Lender in the same form as so received (with
any necessary endorsement) to be applied (in the case of cash) to, or held as
collateral (in the case of securities or other non-cash property) for, the
payment or prepayment of the Guaranteed Obligations. Guarantor agrees that any subrogation
rights Guarantor may acquire as a result of a payment under this Section may
not be exercised until (1) the payment in full of the Guaranteed
Obligations (after Lender no longer has any obligation or arrangement to
provide credit to Borrower, including under or pursuant to a line of credit),
and (2) the payment of all fees and expenses to be paid by Guarantor
pursuant to this Guaranty. Notwithstanding the foregoing, once a demand for
payment is made on the Guarantor under this Guaranty, Guarantor shall continue
to receive a salary that is reasonable and customary for the chief executive of
a publicly traded company.

Section 22.             Miscellaneous.  This Guaranty is in addition to and not in
limitation of any other rights and remedies Lender may have by virtue of any
other instrument or agreement previously, contemporaneously or hereafter
executed by Guarantor or any other party or by law or otherwise. If any
provision of this Guaranty is contrary to applicable law, such provision shall
be deemed ineffective without invalidating the remaining provisions of this
Guaranty. Titles in this Guaranty are for convenience of reference only and
shall not affect the interpretation or construction of this Guaranty. This
Guaranty constitutes the entire agreement between Guarantor and Lender with
respect to the matters covered by this Guaranty and supercedes all written or
oral agreements with respect to such matters.

Section 23.             WAIVER
OF JURY TRIAL. GUARANTOR EXPRESSLY WAIVES ANY AND EVERY RIGHT TO A TRIAL BY
JURY IN ANY ACTION ON OR RELATED TO THIS GUARANTY.

IN WITNESS WHEREOF, Guarantor has duly executed and
delivered this Guaranty as of the date of this Guaranty.

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  By:

  	
  /s/ TERRY KIEFER

  	
   

  
	
   

  	
  Name:  Terry Kiefer

  

 

Attest:

 

	
  By:

  	
  /s/ Mark Noffke

  	
   

  
	
  Name: Mark
  Noffke

  	
   

  

 

 7Exhibit 4.6

STOCK PLEDGE AGREEMENT

STOCK PLEDGE AGREEMENT (“Agreement”) entered
into as of the 24th day of July 2006 by and among John Fife (the “Secured
Party”), and the person identified on the signature page hereof (the “Pledgor”).

RECITALS

A.            The Pledgor has agreed to
pledge certain shares as security for: (i) the performance by National
Storm Management, Inc., a Nevada corporation, of its obligations under its
Original Issue Discount Secured Note in an aggregate face amount of up to One
Million Six Hundred Fifty Thousand and 00/100 Dollars ($1,650,000.00) payable
to the Secured Party (the “Note”) and (ii) the performance by
Pledgor of its Guaranty delivered to Secured Party of even date herewith.
Capitalized terms in this Agreement which are not identified herein will have
the meanings given such terms in the Note.

B.            The Secured Party is willing
to accept the Note from the Company only upon receiving Pledgor’s Guaranty and
pledge of certain stock as set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises, the
mutual covenants and conditions 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:

1.             Grant
of Security Interest.  Pledgor hereby
pledges to the Secured Party as collateral and security for the Secured
Obligations (as defined in paragraph 2) the securities initially set forth on
the attached Schedule 1 of this Agreement, (the “Pledged Shares”).
Within five (5) business days of the date of this Agreement, the Pledgor shall deliver to the Secured
Party certificate(s) representing the Pledged Shares, along with a stock
transfer power duly executed in blank by the Pledgor and stamped with a bank
medallion guarantee. If on any monthly anniversary during the term of
the Note, the market value of the Collateral then held by the escrow agent,
does not equal or exceed 300% of the principal amount of the Note, then within
five (5) business days after receipt of notice from the Secured Party, the
Pledgor shall deliver to be held under the terms of this Agreement a
certificate or certificates for additional shares and necessary stock powers
equal to not less than 300% of the principal amount of the Note (the “True-up
Shares”). If the Pledgor fails to deliver the True-up Shares to the Secured
Party within five business days after receipt of notice by the Secured Party
therefore, the Pledgor shall pay to the Secured Party, in cash, Two Hundred
Fifty ($250) Dollars per business day until such certificates are delivered.
Unless otherwise set forth on Schedule 1 of this Agreement, Pledgor is the
beneficial and record owner of the Pledged Shares set forth opposite such
Pledgor’s name on such Schedule. Such Pledged Shares, together with any
additions, replacements, accessions and substitutes therefore, or proceeds
thereof, are hereinafter referred to collectively as the “Collateral.”
Market Value means the average closing bid price for the ten trading days prior
to the date on which the Collateral is valued for purposes of this Section 1.

2.             Secured
Obligations.  During the term hereof,
the Collateral shall secure the following:

a.               The performance by
the Company of its obligations, covenants, and agreements under the Note.

b.              The performance by
the Pledgor of its obligations, covenants, and agreements under the Guaranty.

The
obligations, covenants and agreements described in clause (a) and (b) are
the “Secured Obligations.”

3.             Perfection of Security
Interests.  (a)  Upon execution
of this Agreement by each Pledgor, such Pledgor shall deliver the Pledge
Shares, together with Stock Powers (with Medallion Guarantees annexed).

(b)           The Company and each Pledgor
will, at its expense, cause to be searched the public records with respect to
the Collateral and will execute, deliver, file and record (in such manner and
form as each Secured Party may require), or permit each Secured Party to file
and record, as its attorney in fact, any financing statements, any carbon,
photographic or other reproduction of a financing statement or this Agreement
(which shall be sufficient as a financing statement hereunder), any specific
assignments or other paper that may be reasonably necessary or desirable, or
that such Secured  Party may request, in
order to create, preserve, perfect or validate any

 

Security
Interest or to enable such Secured Party to exercise and enforce its rights
hereunder with respect to any of the Collateral.  The Company and the Pledgor hereby appoint
the Secured Party as the Company’s or Pledgor’s attorney-in-fact to execute in
the name and behalf of the Company or Pledgor, as the case may be, such
additional financing statements as such Secured Party may request.

4.             Assignment.  In connection with the transfer of the Note
in accordance with their terms, a Secured Party may assign or transfer the
whole or any part of its security interest granted hereunder, and may transfer
as collateral security the whole or any part of Secured Party’s security
interest in the Collateral.  Any
transferee of the Collateral shall be vested with all of the rights and powers
of Secured Party hereunder with respect to the Collateral.

5.             Pledgor’s Warranty.  (A) Title. The Pledgor represents and
warrants hereby to the Secured Party as follows with respect to the Pledged
Shares set forth opposite such Pledgor’s name on Schedule 2 to this
Agreement:

(i)            that the Collateral is free
and clear of any encumbrances of every nature whatsoever, and such Pledgor is
the sole owner of the Pledged Shares;

(ii)           Such Pledgor
further agree not to grant or create, any security interest, claim, lien,
pledge or other encumbrance with respect to such Collateral or attempt to sell,
transfer or otherwise dispose of the Collateral, until the Secured Obligations
have been paid in full or this Agreement terminates; and

(iii)          this Agreement
constitutes a legal, valid and binding obligation of such Pledgor enforceable
in accordance with its terms (except as the enforcement thereof may be limited
by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium,
and similar laws, now or hereafter in effect),

B.            Other:     (i) Pledgor has
made necessary inquiries of the Company and believes that the Company fully
intends to fulfill and has the capability of fulfilling the Secured Obligations
to be performed by the Company in accordance with the terms of the Notes.

(ii)           The Pledgor is
not acting, and has not agreed to act, in any plan to sell or dispose of any
Shares in a manner intended to circumvent the registration requirements of the
Securities Act of 1933, as amended, or any applicable state law.

(iii)          Pledgor has been
advised by counsel of the elements of a bona-fide pledge for purposes of Rule 144(d)(3)(iv) under
the Securities Act of 1933, as amended, including the relevant SEC interpretations
and affirm the pledge of shares by each of the undersigned pursuant to this
Pledge Agreement will constitute a bona-fide pledge of such shares for purposes
of such Rule.

6.             Collection of Dividends
and Interest.  During the term of
this Agreement and so long as Pledgor is not in default under the Note, Pledgor
is authorized to collect all dividends, distributions, interest payments, and
other amounts that may be, or may become, due on any of the Collateral.

7.             Voting Rights.  During the term of this Agreement and until
such time as this Agreement has terminated or Secured Party has exercised its
rights under this Agreement to foreclose its security interest in the
Collateral, Pledgor shall have the right to exercise any voting rights
evidenced by, or relating to, the Collateral.

8.             Warrants and Options.  In the event that, during the term of this
Agreement, subscription, spin-off, warrants, dividends, or any other rights or
option shall be issued in connection with 
the Collateral, such warrants, dividends, rights and options shall be
immediately delivered to Secured Party to be held under the terms hereof in the
same manner as the Collateral.

9.             Preservation of the Value
of the Collateral.  Pledgor shall pay
all taxes, charges, and assessments against the Collateral and do all acts
necessary to preserve and maintain the value thereof.

10.           Secured Party as Pledgor’s
Attorney-in-Fact.

(a)           Pledgor hereby irrevocably
appoints Secured Party as Pledgor’s attorney-in-fact, with full authority in
the place and stead of Pledgor and in the name of Pledgor, Secured Party or
otherwise, from time to time at Secured Party’s discretion, to take any action
and to execute any instrument that Secured Party may reasonably deem necessary
or advisable to accomplish the purposes of this Agreement, including: (i) upon
the occurrence and

 

during the continuance of an Event of Default, to receive, indorse, and
collect all instruments made payable to Pledgor representing any dividend,
interest payment or other distribution in respect of the Collateral or any part
thereof to the extent permitted hereunder and to give full discharge for the
same and to execute and file governmental notifications and reporting forms; (ii) to
arrange for the transfer of the Collateral on the books of any of the Company
or any other Person to the name of Secured Party or to the name of Secured
Party’s nominee.

 

(b)           In addition to the designation
of Secured Party as Pledgor’s attorney-in-fact in subsection (a), Pledgor
hereby irrevocably appoints Secured Party as Pledgor’s agent and
attorney-in-fact to make, execute and deliver any and all documents and
writings which may be necessary or appropriate for approval of, or be required
by, any regulatory authority located in any city, county, state or country where
Pledgor or any of the Company engage in business, in order to transfer or to
more effectively transfer any of the Pledged Interests or otherwise enforce
Secured Party’s rights hereunder.

11.           Remedies upon Default.

Upon the occurrence and during the continuance of an
Event of Default under the Note and/or the Guaranty “Event of Default”):

(a)           Secured Party may exercise in
respect of the Collateral, in addition to other rights and remedies provided
for herein or otherwise available to it, all the rights and remedies of a
secured party on default under the Code (irrespective of whether the Code
applies to the affected items of Collateral), and Secured Party may also
without notice (except as specified below) sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any exchange,
broker’s board or at any of Secured Party’s offices or elsewhere, for cash, on
credit or for future delivery, at such time or times and at such price or
prices and upon such other terms as Secured Party may deem commercially
reasonable, irrespective of the impact of any such sales on the market price of
the Collateral. To the maximum extent permitted by applicable law, Secured
Party may be the purchaser of any or all of the Collateral at any such sale and
shall be entitled, for the purpose of bidding and making settlement or payment
of the purchase price for all or any portion of the Collateral sold at any such
public sale, to use and apply all or any part of the Secured Obligations as a
credit on account of the purchase price of any Collateral payable at such sale.
Each purchaser at any such sale shall hold the property sold absolutely free
from any claim or right on the part of Pledgor, and Pledgor hereby waives (to
the extent permitted by law) all rights of redemption, stay, or appraisal that
it now has or may at any time in the future have under any rule of law or
statute now existing or hereafter enacted. Pledgor agrees that, to the extent
notice of sale shall be required by law, at least ten (10) calendar days
notice to Pledgor of the time and place of any public sale or the time after
which a private sale is to be made shall constitute reasonable notification.
Secured Party shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given. Secured Party 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. To the maximum extent permitted by law,
Pledgor hereby waives any claims against Secured Party arising because the
price at which any Collateral may have been sold at such a private sale was
less than the price that might have been obtained at a public sale, even if
Secured Party accepts the first offer received and does not offer such
Collateral to more than one offeree.

(b)           Notwithstanding the foregoing,
the Secured Party hereby acknowledges that the total number of shares of stock
that may be sold pursuant to Section 11(a) of this Agreement shall
not exceed, on any given trading day, the greater of: (i) 3% of the
aggregate trading volume during the previous five (5) trading days,
including that day; (ii) 15% of the trading volume on that day; or (iii) such
number of shares as yield proceeds (net of commissions) of $50,000.

(c)           Secured Party hereby agrees
that, upon delivery of an opinion of counsel stating that the rights of the
Secured Party will not be affected thereby, other shares of the Borrower’s common
stock may at any time be substituted for all or a portion of the Pledged
Shares;

(d)           Pledgor hereby agrees that any
sale or other disposition of the Collateral conducted in conformity with
reasonable commercial practices of banks, insurance companies, or other
financial institutions in the city and state where Secured Party is located in
disposing of property similar to the Collateral shall be deemed to be
commercially reasonable.

(e)           Pledgor hereby acknowledges
that the sale by Secured Party of any Collateral pursuant to the terms hereof
in compliance with the Securities Act of 1933 as now in effect or as hereafter
amended, or any similar statute hereafter adopted with similar purpose or
effect (the “Securities Act”), as well as applicable “Blue Sky” or

 

other state securities
laws, may require strict limitations as to the manner in which Secured Party or
any subsequent transferee of the Collateral may dispose thereof. Pledgor
acknowledges and agrees that in order to protect Secured Party’s interest it
may be necessary to sell the Collateral at a price less than the maximum price
attainable if a sale were delayed or were made in another manner, such as a
public offering under the Securities Act. Pledgor has no objection to sale in
such a manner and agrees that Secured Party shall have no obligation to obtain
the maximum possible price for the Collateral. Without limiting the generality
of the foregoing, Pledgor agrees that, upon the occurrence and during the
continuation of an Event of Default, Secured Party may, subject to applicable
law, from time to time attempt to sell all or any part of the Collateral by a
private placement, restricting the bidders and prospective purchasers to those
who will represent and agree that they are purchasing for investment only and
not for distribution. In so doing, Secured Party may solicit offers to buy the
Collateral or any part thereof for cash, from a limited number of investors
reasonably believed by Secured Party to be institutional investors or other
accredited investors who might be interested in purchasing the Collateral. If
Secured Party shall solicit such offers, then the acceptance by Secured Party
of one of the offers shall be deemed to be a commercially reasonable method of
disposition of the Collateral.

(f)            If Secured Party shall
determine to exercise its right to sell all or any portion of the Collateral
pursuant to this Section, Pledgor agrees that, upon request of Secured Party,
Pledgor will, at its own expense:

(i)            execute and deliver, or cause
the officers and directors of the Company to execute and deliver, to any
person, entity or governmental authority as Secured Party may choose, any and
all documents and writings which, in Secured Party’s reasonable judgment, may
be necessary or appropriate for approval, or be required by, any regulatory
authority located in any city, county, state or country where Pledgor or the
Company engage in business, in order to transfer or to more effectively
transfer the Pledged Interests or otherwise enforce Secured Party’s rights
hereunder; and

(ii)           do or cause to be
done all such other acts and things as may be necessary to make such sale of
the Collateral or any part thereof valid and binding and in compliance with
applicable law; and

(iii)          cause the Company
to timely file all periodic reports required to be filed by the Company under
the Securities Exchange Act of 1934.

Pledgor acknowledges that there is no adequate remedy
at law for failure by it to comply with the provisions of this Section and
that such failure would not be adequately compensable in damages, and therefore
agrees that its agreements contained in this Section may be specifically
enforced.

(g)           PLEDGOR EXPRESSLY WAIVES TO
THE MAXIMUM EXTENT PERMITTED BY LAW: (i) ANY CONSTITUTIONAL OR OTHER RIGHT
TO A JUDICIAL HEARING PRIOR TO THE TIME SECURED PARTY DISPOSES OF ALL OR ANY PART OF
THE COLLATERAL AS PROVIDED IN THIS SECTION; (ii) ALL RIGHTS OF REDEMPTION,
STAY, OR APPRAISAL THAT IT NOW HAS OR MAY AT ANY TIME IN THE FUTURE HAVE
UNDER ANY RULE OF LAW OR STATUTE NOW EXISTING OR HEREAFTER ENACTED; AND (iii) EXCEPT
AS SET FORTH IN SUBSECTION (a) OF THIS SECTION 11, ANY
REQUIREMENT OF NOTICE, DEMAND, OR ADVERTISEMENT FOR SALE.

12.           (a) Term of Agreement.  This Agreement shall continue in full force
and effect until the payment in full of the Note.  If the Note is paid in full, the security
interests in the relevant Collateral shall be deemed released, and any portion
of the Collateral not transferred to or sold by any one or more Secured Parties
shall be returned to the Pledgor (and for such purpose, delivery to Darrin
Ocasio, Esq., of Sichenzia Ross Friedman Ference LLP of New York, NY shall
deemed to comply with such return requirement). 
Upon termination of this Pledge Agreement, the relevant Collateral shall
be returned within five (5) Trading Days to Debtor or to the Pledgor, as
contemplated above.

(b) Application of Proceeds.  Upon the occurrence and during the
continuance of an Event of Default, any cash held by Secured Party as
Collateral and all cash Proceeds received by Secured Party in respect of any
sale of, collection from, or other realization upon all or any part of the
Collateral pursuant to the exercise by Secured Party of its remedies as a
secured creditor as provided in Section 9 shall be applied from time to
time by the Secured Part as provided in the Note.

 

13.           Indemnity and Expenses.

Pledgor agrees:

(a)           To indemnify and hold harmless
Secured Party and each of its directors, officers, employees, agents and
affiliates from and against any and all claims, damages, demands, losses,
obligations, judgments and liabilities (including, without limitation,
reasonable attorneys’ fees and expenses) in any way arising out of or in
connection with this Agreement or the Secured Obligations, except to the extent
the same shall arise as a result of the gross negligence or willful misconduct
of the party seeking to be indemnified; and

(b)           To pay and reimburse Secured
Party upon demand for all reasonable costs and expenses (including, without
limitation, reasonable attorneys’ fees and expenses) that Secured Party may
incur in connection with (i) the custody, use or preservation of, or the
sale of, collection from or other realization upon, any of the Collateral,
including the reasonable expenses of re-taking, holding, preparing for sale or
lease, selling or otherwise disposing of or realizing on the Collateral, (ii) the
exercise or enforcement of any rights or remedies granted hereunder, under the
Note or otherwise available to it (whether at law, in equity or otherwise), or (iii) the
failure by Pledgor to perform or observe any of the provisions hereof. The
provisions of this Section shall survive the execution and delivery of
this Agreement, the repayment of any of the Secured Obligations, the
termination of the commitments of Secured Party under the Note and the
termination of this Agreement.

14.           Duties of Secured Party.

The powers conferred on Secured Party hereunder are
solely to protect its interests in the Collateral and shall not impose on it
any duty to exercise such powers. Except as provided in Section 9-207 of
the Code, Secured Party shall have no duty with respect to the Collateral or
any responsibility for taking any necessary steps to preserve rights against
any Persons with respect to any Collateral.

15.           Choice of Law and Venue;
Submission to Jurisdiction; Service of Process.

(a)           THE VALIDITY OF THIS
AGREEMENT, ITS CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT, AND THE RIGHTS OF
THE PARTIES HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS (WITHOUT REFERENCE TO THE
CHOICE OF LAW PRINCIPLES THEREOF). THE PARTIES AGREE THAT ALL ACTIONS OR
PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND
LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN COOK COUNTY, STATE OF
ILLINOIS OR, AT THE SOLE OPTION OF SECURED PARTY, IN ANY OTHER COURT IN WHICH
SECURED PARTY SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS
SUBJECT MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY.

(b)           PLEDGOR HEREBY SUBMITS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, TO THE
JURISDICTION OF THE AFORESAID COURTS AND WAIVES, TO THE EXTENT PERMITTED UNDER
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON
CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
ACCORDANCE WITH THIS SECTION.

(c)           PLEDGOR HEREBY WAIVES PERSONAL
SERVICE OF THE SUMMONS, COMPLAINT, OR OTHER PROCESS ISSUED IN ANY ACTION OR
PROCEEDING AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT, OR OTHER PROCESS
MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO PLEDGOR AT ITS
ADDRESS FOR NOTICES IN ACCORDANCE WITH THIS AGREEMENT AND THAT SERVICE SO MADE
SHALL BE DEEMED COMPLETED UPON THE EARLIER OF PLEDGOR’S ACTUAL RECEIPT THEREOF
OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAILS, PROPER POSTAGE PREPAID.

(d)           NOTHING IN THIS AGREEMENT
SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF SECURED PARTY TO SERVE LEGAL
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO PRECLUDE THE ENFORCEMENT BY
SECURED PARTY OF ANY JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR THE TAKING OF
ANY ACTION UNDER THIS AGREEMENT TO ENFORCE SAME IN ANY OTHER APPROPRIATE FORUM
OR JURISDICTION.

16.           Amendments; etc.

No amendment or waiver of any provision of this
Agreement nor consent to any departure by Pledgor herefrom shall in any event
be effective unless the same shall be in writing and signed by Secured Party,
and then

 

such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given. No failure on the part of Secured Party to exercise, and no
delay in exercising any right under this Agreement, any other Credit Document,
or otherwise with respect to any of the Secured Obligations, shall operate as a
waiver thereof; nor shall any single or partial exercise of any right under
this Agreement, any other Credit Document, or otherwise with respect to any of
the Secured Obligations preclude any other or further exercise thereof or the
exercise of any other right. The remedies provided for in this Agreement or
otherwise with respect to any of the Secured Obligations are cumulative and not
exclusive of any remedies provided by law.

17.           Notices.

Unless otherwise specifically provided herein, all
notices shall be in writing addressed to the respective party as set forth
below: and may be personally served, faxed, telecopied or sent by overnight
courier service or United States mail:

If to Pledgor:

Terry
Kiefer

2062
Azalea

Irving, TX 75063

With copies to:

Darrin
M. Ocasio, Esq.

Sichenzia
Ross Friedman Ference LLP

1065
Avenue of the Americas

New
York, NY 10018

Fax No.:  212-930-9725

If to Secured Party:

John
Fife

303
East Wacker Drive

Suite 301

Chicago, IL 60601

Any notice given pursuant to this section shall
be deemed to have been given: (a) if delivered in person, when delivered; (b) if
delivered by fax, on the date of transmission if transmitted on a Business Day
before 4:00 p.m. at the place of receipt or, if not, on the next
succeeding Business Day; (c) if delivered by overnight courier, two (2) days
after delivery to such courier properly addressed; or (d) if by United
States mail, four (4) Business Days after depositing in the United States
mail, with postage prepaid and properly addressed. Any party hereto may change
the address or fax number at which it is to receive notices hereunder by notice
to the other party in writing in the foregoing manner.

18.           Continuing Security
Interest.

This Agreement shall create a continuing security
interest in the Collateral and shall: (a) remain in full force and effect
until the indefeasible payment in full of the Secured Obligations, including
the cash collateralization, expiration, or cancellation of all Secured
Obligations, if any, consisting of letters of credit, and the full and final
termination of any commitment to extend any financial accommodations under the
Credit Agreement; (b) be binding upon Pledgor and its successors and
assigns; and (c) inure to the benefit of Secured Party and its successors,
transferees, and assigns. Upon the indefeasible payment in full of the Secured
Obligations, including the cash collateralization, expiration, or cancellation
of all Secured Obligations, if any, consisting of letters of credit, and the
full and final termination of any commitment to extend any financial
accommodations under the Credit Agreement, the security interests granted
herein shall automatically terminate and all rights to the Collateral shall
revert to Pledgor. Upon any such termination, Secured Party will, at Pledgor’s
expense, execute and deliver to Pledgor such documents as Pledgor shall
reasonably request to evidence such termination. Such documents shall be
prepared by Pledgor and shall be in form and substance reasonably satisfactory
to Secured Party.

 

19.           Security Interest Absolute.

To the maximum extent permitted by law, all rights of
Secured Party, all security interests hereunder, and all obligations of Pledgor
hereunder, shall be absolute and unconditional irrespective of:

(a)           any lack of validity or enforceability
of any of the Secured Obligations or any other agreement or instrument relating
thereto, including any of the Credit Documents;

(b)           any change in the time,
manner, or place of payment of, or in any other term of, all or any of the
Secured Obligations, or any other amendment or waiver of or any consent to any
departure from any of the Credit Documents, or any other agreement or
instrument relating thereto;

(c)           any exchange, release, or
non-perfection of any other collateral, or any release or amendment or waiver
of or consent to departure from any guaranty for all or any of the Secured
Obligations; or

(d)           any other circumstances that
might otherwise constitute a defense available to, or a discharge of, Pledgor.

20.           Headings.

Section and subsection headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement or be given any substantive effect.

21.           Severability.

In case any provision in or obligation under this
Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

22.           Counterparts; Telefacsimile
Execution.

This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same Agreement. Delivery of an executed
counterpart of this Agreement by telefacsimile shall be equally as effective as
delivery of an original executed counterpart of this Agreement. Any party
delivering an executed counterpart of this Agreement by telefacsimile also
shall deliver an original executed counterpart of this Agreement but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, or binding effect hereof.

23.           Waiver of Marshaling.

Each of Pledgor and Secured Party acknowledges and
agrees that in exercising any rights under or with respect to the Collateral: (a) Secured
Party is under no obligation to marshal any Collateral; (b) may, in its
absolute discretion, realize upon the Collateral in any order and in any manner
it so elects; and (c) may, in its absolute discretion, apply the proceeds
of any or all of the Collateral to the Secured Obligations in any order and in
any manner it so elects. Pledgor and Secured Party waive any right to require
the marshaling of any of the Collateral.

24.           Waiver of Jury Trial.

PLEDGOR AND SECURED PARTY HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS. PLEDGOR AND SECURED PARTY REPRESENT THAT EACH
HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION,
A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
THE COURT.

 

IN WITNESS WHEREOF, Pledgor and Secured Party have
caused this Agreement to be duly executed and delivered by their officers
thereunto duly authorized as of the date first written above.

 

	
  

  	
   

  	
  TERRY KIEFER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ TERRY KIEFER

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JOHN FIFE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ JOHN FIFE

  	
   

  	
   

  	
   

  

 

 

Schedule 1 - Pledged Interests

Pledged
Interests: 17,000,000 shares of common stock of National Storm Management, Inc.

Name
of Issuer: National Storm Management, Inc.

Jurisdiction
of Organization: Nevada

Type
of Interest: Shares of common stock

Number
of Shares/Units (if applicable): see above

Certificate
Numbers : 322, 323, 324, 325, 326, 327, 328, 329, 330, 331, 332, 333, 334, 335,
336, 337, & 338

Date
of Issuance: February 24, 2005

Percentage
of Outstanding Interests in Issuer: approximately 55%

Date
of certificates: July 18, 2006

Schedule 2 - Pledgor Information

For Pledgor That Is a
Registered Organization

Jurisdiction of Organization:

Type of Organization:

Organizational ID Number (if any):

For
Pledgor That Is An Individual: Terry Kiefer

Address
of Principal Residence: See Notice section

For
Pledgor That Is Neither a Registered Organization nor an Individual:

Type
of Organization:

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