Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.10  

 
 

EMPLOYMENT AGREEMENT    
  

        THIS AGREEMENT is dated as of December 20, 2001, and has been entered into between Equinox Business Credit Corp., a New Jersey corporation ("Equinox"), with its principal offices
at 120 Wood Avenue South, Suite 515, Iselin, New Jersey 08830 (hereinafter, together with its subsidiaries referred to as the "Employer" or "Company"), and Allen H. Vogel, an individual
with a residence located at 11 Bunker Hill Run, East Brunswick, New Jersey 08816(hereinafter called the "Employee"). 

        WHEREAS,
Employer desires to employ, on the terms and subject to the conditions set forth herein, the Employee as its President and Chief Executive Officer; and 

        WHEREAS,
the Employee desires to be employed by the Employer on the terms and conditions set forth herein, 

        NOW
THEREFORE, the Employer and Employee agree as follows: 

        1.    EMPLOYMENT:    

        The
Employer hereby employs the Employee, and the Employee hereby accepts such employment, upon the terms and conditions hereinafter set forth. 

        2.    TERM:    

        Subject
to the provisions of termination as hereinafter provided, the term of this Agreement shall begin on December 20, 2001, which is the date of the closing of the Company's
credit facility with Foothill Capital, permitting loans of up to $20,000,000 (the "Commencement Date"), and shall terminate on December 19, 2004 (being three years after the Commencement Date)
(the "Initial Term"); provided, however, that such term will be automatically renewed for successive two year periods, unless either Employer or Employee gives notice to the other of its election not
to so renew the term at least 90 days prior to the end of the then current term. The term of this Agreement is hereinafter sometimes referred to as the "Employment Period." 

        3.    COMPENSATION:    

        (a)  For
all services rendered by Employee under this Agreement, the Employer shall pay the Employee a salary of $185,000 per year (the "Base Salary"). 

        Such
compensation shall be payable in equal installments in conformity with the regular payroll of Employer. Commencing January 1,
2003 and for each year thereafter that this agreement is in effect, Employee's Base Salary will be increased by the increase, during the prior calendar year, in the Consumer
Price Index applicable to the New York, New York, Metropolitan Region as published by the Bureau of Labor Statistics of the U.S. Department of Labor (the "Index"); provided, however, that for every
$15,000,000 in excess of $20,000,000 of loans that the Company has committed to fund, pursuant to outstanding credit facilities, as of December 31 of each year during the Employment Period,
Employee's Base Salary for the next succeeding calendar year shall increase by $25,000. If the Employer's Board of Directors awards the Employee a discretionary increase of his salary in any year or
Employee's Base Salary increases as a result of the foregoing proviso, and an increase is due to Employee as a result of an increase in the Index, the increase attributable to the increase in the
Index will be offset by the amount of the discretionary salary increase or the increase pursuant to the foregoing proviso received by the Employee in the prior year. 

        (b)  For
and with respect to each fiscal year of the Company during the Employment Period, commencing with the year 2002, Employee shall be entitled to bonus compensation
(the "Bonus") equal to 5% of the Company's earnings before taxes from operations ("Operating EBT") for such year. Notwithstanding anything in this Agreement to the contrary: (i) in no event
will Employee be paid a 

 

Bonus with respect to any fiscal year during the Employment Period of less than $20,000; (ii) if the Bonus is being paid with respect to any fiscal year of the Company during which the
Employment Period either commenced or terminated, then the amount of the Bonus to be paid shall be the amount that would otherwise be payable pursuant to this Section 3(b), including, without
limitation, pursuant to clause (i) of this paragraph, had the Employment Period commenced prior to such year or ended after such year multiplied by a fraction the numerator of which is the
number of days comprising the Employment Period during that year and the denominator of which is 365. 

        For
purposes of this Agreement, "Operating EBT" for a particular year shall (A) consist of the Company's earnings before payment of all local, state and federal income taxes, but
after deduction of all expenses for such year (including, without limitation, all direct out-of-pocket expenses incurred by EquiFin for the Company's benefit), (B) be
determined in accordance with generally accepted accounting principles ("GAAP"),(C) be consistent with Company's earnings that are reflected in the audited consolidated financial statements of EquiFin
for such year, and (D)shall be determined after deducting from the Company's earnings before taxes any and all earnings and gains, or adding to the Company's earnings before taxes any losses, outside
of the ordinary course of business.    For purposes of the foregoing, any equity securities that the Company receives with respect to credit facilities it extends or the proceeds from any
such equity securities (other than proceeds therefrom in connection with the sale of all or a significant portion of the Company's assets) or any other enhancement fees or other fees that the Company
receives or the proceeds therefrom (other than proceeds therefrom in connection with the sale of all or a significant portion of the Company's assets) will be deemed derived from the Company's
operations in the ordinary course of business. Employer will remit payment of any Bonus to which Employee is entitled pursuant to this Section 3(b) within thirty (30) days of the date
Employer's, or the Employer's parent's, independent auditors complete the financial statements of the Company or the consolidated financial statements of such parent for the year with respect to which
such bonus is being paid. 

        (c)  In
consideration of Employee's entering into this Agreement and providing services to Employer hereunder, Employer is simultaneously herewith entering into an agreement
(the "Stock Agreement")with Employee providing for, among other things, the issuance to Employee of nineteen percent (19%) of the Company's issued and outstanding shares of common stock, no par value. 

        (d)  If,
at any time during the term of this Agreement, (i) the stockholders, called to elect each of the Company's or EquiFin's Board of Directors, do not elect
individuals as recommended by Coast Capital Partners, LLC. ("Coast Capital") or Walter M. Craig, Jr. to a majority of the seats on the Company's or EquiFin's Board of Directors, or (ii) the
common stock of the Company or EquiFin is acquired through a tender offer, contract purchase or otherwise (a "Transaction") such that at the next meeting of stockholders that is called to elect the
Company's or EquiFin's Board of Directors, Coast Capital, either directly or through appointees, does not control a majority of the seats on the Company's or
EquiFin's Board of Directors, the Employee shall receive from the Company a cash payment equal to the greater of (i) 1% of the amount by which the value of the Transaction exceeds the book
value of the entity whose shares were purchased, as determined in accordance with GAAP as of the end of the last quarterly period prior to the closing of the Transaction and as reflected in EquiFin's
most recent quarterly report filed with the Securities and Exchange Commission (such payment hereinafter referred to as the "Net Worth Payment") or (ii) 2X the average of all forms of the
Employee's compensation from Employer, its subsidiaries and affiliated companies over the last three (3) years (the "Management Payment"). The Management Payment shall not be paid in lieu of
any other payment required to be paid to Employee hereunder, but in addition to such payments, and this Agreement shall remain in full force and effect after such payment. Any Management Payment to be
made hereunder shall be made in cash within a reasonable period of time, but not to exceed sixty (60) days from the closing date of the Transaction. 

2

 

        4.    DUTIES:    

        The
Employee is employed as President and Chief Executive Officer of the Company. Employee shall report to the Company's Chairman of the Board of Directors and the Board of Directors of
the Company, and shall perform such duties as are assigned to him by the Chairman and said Board of Directors consistent with his position. If elected, Employee shall serve as a director of the
Company and EquiFin without being entitled to any compensation in addition to that set forth in Section 3, and each of the Company and EquiFin agree to nominate Employee to serve as a member of
its Board of Directors throughout the Employment Period. Upon the termination of the Employment Period unless the Company and/or EquiFin specifically agrees otherwise, Employee's term as a director of
each such entity shall immediately terminate and Employee shall be deemed to have tendered his resignation effective as of the last day of the Employment Period. If requested by either the Company or
EquiFin, Employee shall deliver a separate written resignation as a member of the Board of Directors of the requesting entity effective as of the end of the Employment Period. 

        5.    EXTENT OF SERVICES:    

        During
the term of his employment, Employee will devote all of his business related time to the performance of his services for the Company, and except as may be specifically permitted
by the Board of Directors of the Company, shall not be engaged in any other business activity during the Employment Period. Notwithstanding the foregoing or anything to the contrary contained in this
Agreement, it is understood and agreed that Employee has other business investments, and he shall be entitled to devote up to 10% of his work related time to such investments so long as the entities
or businesses in which he is investing are not competitive with the business of the Company and so long as the devotion of such work related time does not materially interfere with the performance of
his duties hereunder. 

        6.    VACATION:    

        The
Employee shall be entitled each year to a vacation of four weeks, during which time his compensation shall be paid in full and his fringe benefits shall not be suspended or
diminished. 

        7.    FRINGE AND RETIREMENT BENEFITS:    

        Employer
shall use reasonable efforts to provide Employee the opportunity to participate in either the same, or substantially similar, benefit plans maintained by EquiFin and in effect
from time to time with respect to employees of EquiFin(The "Fringe Benefits"). Employee's Base Salary shall constitute the compensation on the basis of which the amount of Employee's benefits under
any such plan shall be fixed and determined. 

        In
addition to the above fringe benefits, Employee shall be entitled to the following: 

          (i)  For
the first year of the Employment Period, Employer will provide Employee with an automobile allowance of $500 per month to cover all expenses (including, without
limitation, all insurance premiums and repairs but specifically not including gas and tolls for which Employee shall be separately reimbursed pursuant to Section 8, subject to the terms and
conditions contained therein) associated with Employee's ownership and operation of an automobile in connection with the business conducted by him. Thereafter, during the Employment Period, the
Company shall provide Employee with an automobile on the account of the Company for use by Employee in connection with the performance of his duties hereunder. The Company shall pay or reimburse
Employee promptly for all expenses which Employee may incur in connection with the use, maintenance and repair of such automobile, including insurance premiums; provided,
however, that in no event will Employer be required to expend more than $500 per month (including, without limitation, for lease payments, insurance premiums and maintenance
and repair expenses) with respect to an automobile for Employee's use. Upon termination of the Employment Period, except 

3

 

if the Employment Period is terminated pursuant to Section 9(c) at the request of the Employee, the Company shall arrange for the assignment to and assumption by the Employee of the lease
thereon, if permitted by its terms; and 

        (ii)  Employer
shall pay up to $2500 per year to disability and life insurers designated by Employee to provide life and disability benefits to Employee. Such amount shall be
paid in semi- annual installments on January 1 and July 1 of each year, or in more frequent installments as may be required to pay the premiums on the life or disability
insurance policies designated by Employee. 

        8.    EXPENSES:    

        The
Employee shall be entitled to reimbursement for reasonable out-of-pocket expenses incurred on behalf of the Employer, including all reasonable travel
(including, without limitation, out-of-pocket expenses for gasoline and tolls) and entertainment expenses paid or incurred by Employee in connection with the performance of his
duties, provided that Employee furnishes the Company with appropriate documentation and receipts reflecting such expenses. 

        9.    TERMINATION:    

        (a)    Death.    If Employee dies during the Employment Period, the Company shall pay Employee's designated
beneficiary (or, in the event of the death of or failure to designate a beneficiary, Employee's personal representative) (i) the Base Salary provided for in Section 3(a) above, for the
four calendar week period (the "Four Week Period") following the calendar week in which Employee dies, at the rate in effect at the time of his death, (ii) any Base Salary and other benefits
earned and accrued (including, without limitation, all accrued and unused vacation time), and reimbursement for expenses incurred, prior to the date of death, (iii) the amount of any unpaid
Bonus to which Employee is entitled with respect to the Company's last complete fiscal year preceding the date of his death (the "Preceding Death Fiscal Year") and (iv) the amount of the Bonus
to which Employee is entitled for the Company's fiscal year in which he dies (the "Death Fiscal Year"), determined on a pro rata basis (based upon the number of days during the Death Fiscal Year
preceding his death) in accordance with Section 3(b). The Bonus payments described in clauses (iii) and (iv) above shall be paid when such Bonus Payments would otherwise have been
required to be paid pursuant to Section 3(b) had Employee not died. The Employment Period shall be deemed to end as of the date of death, but without prejudice to any other payments due in
respect of Employee's death. No provision of this Agreement shall limit any of Employee's rights under any plans in which the Employee was a participant at the time of death. 

        (b)    Disability.    If Employee suffers a "Disability" (as hereinafter defined) and as a result is unable to perform
substantially the duties assigned to him for a period of 90 consecutive or non-consecutive days out of any consecutive twelve-month period, the Company shall have the right during the
Disability to terminate the employment of the Employee effective 30 days after notice in writing to the Employee. In the event of termination pursuant to this Section 10(b), the Employee
shall be entitled to receive (i) any Base Salary and other benefits earned and accrued (including, without limitation, all accrued and unused vacation time), and reimbursement for expenses
incurred, prior to the date of termination, (ii) regular installments of the Employee's Base Salary for the eight week period immediately following such termination, (iii) the amount of
any unpaid Bonus to which Employee is entitled with respect to the Company's last complete fiscal year preceding the date of termination for Disability (the "Preceding Disability Fiscal Year"), and
(iv) the amount of the Bonus to which Employee is entitled for the Company's fiscal year in which he is terminated for Disability (the "Disability Fiscal Year"), determined on a pro rata basis
in accordance with Section 3(b)(based upon the number of days during the Disability Fiscal Year preceding Employee's termination for Disability). The Bonus payments described in clauses
(iii) and (iv) of this Section 9(b) shall be paid when such Bonus payments would otherwise have been required to be made pursuant to Section 3(b) had 

4

 

Employee not been terminated for Disability. No provision of this Agreement shall limit any of Employee's rights under any plans in which the Employee was a participant at the time of such
Disability. During the period of any Disability prior to termination of the Employee's employment, the Employee shall continue to receive his Base Salary, reduced by any payments paid to the Employee
for the same period because of disability under any disability or pension plan of the Company. 

        For
purposes of this Agreement, "Disability" shall mean the mental or physical inability of the Employee to materially perform his duties under this Employment Agreement. 

        (c)    Termination for Employee's Breach and Other Causes.    Employer shall have the right to terminate this
Agreement and the employment hereunder if Employee materially violates his responsibilities under this Agreement and such violation continues after having received notice of such violation and
30 days to cure such violation(s) to the satisfaction of Employer's Board of Directors. Employer may immediately terminate this Agreement upon
(i) determination by Employer's Board of Directors that the Employee has willfully defaulted on a material obligation of this Agreement or Employee is guilty of gross misconduct or gross
neglect of duties with respect to his employment; (ii) upon determination by Employer's Board of Directors that there has been a defalcation of the Employer's funds by Employee;
(iii) upon conviction of Employee on a felony charge or commission of an act of moral turpitude; (iv) upon the determination by Employer's Board of Directors that the Employee has had
unauthorized discussions of Employer's business activities, or improperly disclosed trade secrets or confidential information concerning Employer's business activities or proposed business activities.
Upon termination of employment pursuant to this Section 9(c), Employee shall not be entitled to any further bonus or other payments pursuant to Section 3 (a), (b)and 3(d). 

        (d)    Termination Without Cause.    Notwithstanding anything to the contrary contained in this Agreement, Employer
may terminate Employee's employment under this Agreement without cause at any time during the Employment Period that the Company does not have sufficient capital to originate, maintain and fund at
least $10,000,000 in asset based loans (for purposes of such computation, accounts receivable purchased pursuant to factoring facilities shall not be included); provided,
however, that Employer must give Employee at least 10 days prior written notice if it intends to terminate Employee's employment hereunder. If Employee's employment
hereunder is terminated pursuant to this Section 9(d), then Employer will pay to Employee an aggregate amount equal to one-half of his annual Base Salary, which shall be payable in
equal installments over the six month period immediately following the termination of his employment in conformity with the regular payroll of Employer as if Employee were still employed during such
period. Employee shall not be entitled to any other benefit or compensation following termination of his employment pursuant to this Section 9(d), except such payments, if any, to which
employee shall be entitled pursuant to Section 11(a). 

        (e)    Termination for Employer's Breach.    Employee shall have the right to terminate this Agreement if the Employer
materially breaches any of the provisions hereof and such breach is not cured within thirty (30) days after Employer receives written notice from Employee thereof. 

        10.    CONFIDENTIALITY.    The Employee covenants and agrees that all proprietary information, knowledge or data of or
pertaining to the Company or its subsidiaries or affiliates (including, without
limitation, EquiFin), or pertaining to any other person, firm, corporation or business organization with which they or any of them may do business during the Employment Period or any part thereof and
which is not generally known in the relevant trade or industry (and whether relating to customers, methods, processes, techniques, discoveries, pricing, marketing or any other matters) shall be kept
secret and confidential at all times during and after the end of the Employment Period and shall not be used or divulged by him outside the scope of his employment as contemplated by this Agreement,
except (i) as the Board of Directors of the Company may otherwise expressly authorize in writing, (ii)to the extent such information is the subject of a legal proceeding in which the Company
and/or EquiFin, on the one hand, and Employee, on the other hand, are adversaries and such information is being 

5

 

divulged as is reasonably necessary in connection with said proceeding or (iii) to the extent such information is required to be divulged by law. 

        11.    CERTAIN RESTRICTIONS:    

        a)    Non-Competition Subsequent to Employment.    Since the services of the Employee pursuant to this
Agreement are likely to be unique and extraordinary, the Company will be dependent in large measure upon the Employee for the organization, development, growth and administration of its business, and
it is anticipated that the Employee will develop personal relationships with significant customers of the Company and have control of confidential information concerning the Company's operations, the
Employee covenants and agrees that Employer shall have the option (the "Non-Compete Option") to restrict Employee's activities for a period of eighteen months immediately after the
Employment Period (the "Non-Compete Period"). Employer shall provide at least 90 days written notice to Employee prior to the end of the Employment Period that it is electing to
exercise the Non-Compete Option; provided, however, that if Employee is being terminated pursuant to Section 9(d),then Employer need
only provide Employee with 10 days written notice that it is electing to exercise the Non-Compete Option; provided, further, however,
that if Employee's employment is terminated pursuant to Section 9(c) or Employee terminates his employment in breach of this Agreement, then the Employer need not provide any notice to Employee
that it is electing to exercise the Non-Compete Option and the restrictions on the activities of Employee contained herein shall be effective without such notice and without the payment of
any "Non-Compete Consideration" (as hereinafter defined). Subject to the immediately preceding proviso, if Employer exercises the Non-Compete Option, Employee shall be entitled
to be paid an amount (the "Non-Compete Consideration") equal to one-half of his then annual Base Salary (i.e. six months' of salary) plus one-twelfth of his then
annual Base Salary (i.e. one month's salary) for each month Employee has performed services for Employer during the Employment Period, subject to a cap of one hundred fifty percent (150%) of this then
annual salary (i.e. eighteen months salary),which shall be payable in equal installments immediately following the termination of his employment in conformity with the regular payroll of Employer as
if Employee were still employed during such period (for purposes of clarification, if Employee is entitled to Non-Compete Consideration equal to 12 months of salary, he will be paid
his salary for 12 months following the end of the Employment Period rather than paid 12 months of salary over the 18 month Non-Compete Period) (the period during which
said payments are paid is hereinafter referred to as the "Payout Period"); provided, however, that any amounts paid to Employee pursuant to
Section 9(d) shall be deemed to be payments of Non-Compete Consideration and shall accordingly reduce the amount of additional payments required to be made to Employee pursuant to
this Section 11(a). During the Payout Period, the Company will pay the costs of continuing Employee's and his family's health benefits under the Company's group health insurance plan, if any,
under COBRA and will continue to pay the costs related to maintaining a car for Employee pursuant to Section 7 and life and disability insurance
pursuant to clause (ii) of Section 7. In the event Employee is terminated pursuant to Section 9(c) or Employer exercises the Non-Compete Option, then during the
Non-Compete Period, the Employee shall not, directly or indirectly, (A) engage in any activity which is in competition with the Business in the eastern United States, (B) be
financially interested in, or represent or render any advice or services to, any other business which (x) is operated in the eastern United States and (y) is competitive with or operates
a business similar to the Business. "Business" shall mean (i) the extending of asset based loans or otherwise acting as a lender under credit facilities or providing for other credit
accommodations, including factoring facilities, providing for loans or the purchase of accounts receivable, in amounts, with respect to any borrower or group of related borrowers, of at least $500,000
and not more than the "Weighted Average of Outstanding Loans," and (ii) any other business activities in which the Company is engaged at the end of the Employment Period. For purposes of this
Agreement, the term "Weighted Average of Outstanding Loans" shall mean the weighted average of the outstanding balances of loans that Employer has funded or accounts receivable that the Employer has
purchased pursuant to credit or factoring facilities that it 

6

 

has entered into and that are continuing in effect as of the end of the Employment Period. Employee acknowledges that the temporal and geographic limitations imposed herein on his
post-employment activities are necessary and reasonable in order to protect the Company in the conduct of its business and while in effect will not preclude Employee from earning a living.
Notwithstanding the foregoing or anything else to the contrary contained herein, if during the Non-Compete Period Employee introduces the Company or EquiFin to any potential borrower with
whom the Company or EquiFin, or any of its officers, directors or employees did not have a prior relationship and the Company or EquiFin close a loan, factoring or other credit facility with such
borrower, then Employee shall be entitled to a broker fee with respect to such transaction that is standard and customary. 

        b)    Other Restrictions on Certain Activities During and After Employment.    During the Employment Period until the
later of (i) the Non-Compete Period or (ii) the "Extension Period" (as hereinafter defined), Employee shall not induce, invite, solicit or attempt to induce, invite or
solicit any person who shall have been an employee of the Company or any of its affiliates (including, without limitation, EquiFin) at the time of termination of the Employment Period or during any
part of the period of one year prior to such date to leave the employ of the Company or any of its affiliates or to become interested in or in any way connected with a business similar to that of the
Company or any of its affiliates, or employ or attempt to employ any such employee of the Company or any of its affiliates. Notwithstanding anything to the contrary contained in this Agreement, in the
event Employer is not exercising the Non-Compete Option (or otherwise deemed exercising the Non-Compete Option in the event Employee's employment was terminated pursuant to
Section 9(c) or in breach of this Agreement), then Employer shall have the right, upon written notice to Employee (the "Extension Notice") within the 30 day period following the end of
the Employment Period, to elect to continue the restrictions on Employee's employing current and former employees of the Company contained in this Section 11(b) for a period of up to six
months. The Extension Notice shall specify the number of months that Employer is electing to extend the foregoing restrictions, and Employer shall continue to pay installments of Employee's Base
Salary (as in effect on the last day of the Employment Period), for said number of months as if Employee were still employed by the Company during such period. 

        In
addition to any other restrictions on Employee's activities, Employee shall not, during the Employment Period, directly or indirectly, except with the written consent of Company,
engage in any business (whether alone or as a consultant, officer, director, owner, employee, partner or other active or passive participant) with or for, be financially interested in, or represent or
otherwise render
assistance or services to any person or entity who or which competes or intends to compete, or who or which is affiliated (by reason of common control, ownership or otherwise) with any other person or
entity who or which competes or intends to compete, directly or indirectly, with the business then conducted by the Company or any of its affiliates. Notwithstanding the foregoing, Employee shall not
be precluded from the ownership, directly or indirectly, solely as an investment, of securities of any entity which are traded on any national securities exchange or NASDAQ, if Employee (A) is
not a controlling person of, or a member of a group which controls, such entity and (B) does not, directly or indirectly, own 5% or more of any class of securities of such entity. 

        12.    INJUNCTION:    

        Notwithstanding
any other provisions of this Agreement, Employee acknowledges and agrees that in the event of a violation or threatened violation of any of the provisions of Sections 10
or 11, Employer shall have no adequate remedy at law and shall therefore be entitled to enforce each such provision by temporary or permanent injunctive or mandatory relief obtained in any court of
competent jurisdiction, without the necessity of proving damage, without posting bond or other security, and without prejudice to any other remedies that may be available at law or in equity. 

        If
any restriction contained in Sections 10 or 11 is found to be unenforceable by reason of the extent, duration or scope thereof, or otherwise, then the court making such determination
shall have 

7

 

the right to reduce such extent, duration, scope or other provision and in its reduced form any such restriction shall thereafter be enforceable as contemplated hereby. 

        13.    INDEMNIFICATION:    

        Subject
to the exclusions set forth in the next succeeding paragraph hereof and prohibition or limitation by applicable state or Federal laws now or hereinafter in effect, the Company
agrees to hold harmless and indemnify Employee, his heirs, successors and estate: 

Against
any and all expenses (including reasonable attorneys' fees and the costs of investigation), judgements, fines and amounts paid in settlement actually and reasonably incurred by Employee, his
heirs, successors and estate in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (including an action by or in
the right of the Company) to which Employee is, was or at any time becomes, or his heirs, successors and estate are, were, or at any time become, a party, or is threatened to be made a party, by
reason of the fact that Employee, was an officer, employee or agent of the Company, or was serving at the request of the Company as an officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, if he acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interest of the Company, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. 

        Notwithstanding
anything to the contrary contained in this Agreement, no indemnity pursuant to this Section 13 shall be paid by the Company: 

	a)
	In
respect of the amount of such losses for which Employee is indemnified pursuant to any D & O Insurance purchased and maintained by the Company;

	b)
	In
respect to remuneration paid to Employee if it shall be determined by a final judgement or other final adjudication that such remuneration was in violation of law;

	c)
	On
account of any suit in which judgement is rendered against Employee for an accounting of profits made from the purchase or sale by Employee of securities of the Company or any of
its affiliates (including, without limitation, EquiFin) pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and its amendments or similar provisions of any
federal, state or local statutory law;

	d)
	For
any breach of Employee's duty of loyalty to the Company or its stockholders;

	e)
	For
acts or omissions of Employee not in good faith or which involves intentional misconduct or a knowing violation of law;

	f)
	For
any transaction from which Employee derived improper personal benefit;

	g)
	For
any unlawful payment of dividends or unlawful stock purchase or redemption as provided pursuant to the state statute;

	h)
	With
respect to any claim, issue or matter as to which Employee shall have been adjudged to be liable to the Company, unless and to the extent that a court of competent jurisdiction
deems Employee to be entitled to indemnification despite such adjudication of liability; or

	i)
	If
a final decision by a Court having jurisdiction in the matter shall determine that such indemnification is not lawful. 

        Promptly
after receipt by Employee of notice of the commencement of any action, suit or proceeding, Employee will, if a claim in respect thereof is to be made against the Company under
this 

8

 

Agreement, notify the Company of such commencement. With respect to any such action, suit or proceeding as to which Employee notifies the Company of its commencement: 

	e)
	The
Company will be entitled to participate in it at its own expense;

	f)
	To
the extent that it may wish, the Company jointly with any other indemnifying party similarly notified will be entitled to assume the defense of it. After notice from the Company to
Employee of its election so to assume the defense of it, the Company will not be liable to Employee under this Agreement for any legal or other expenses subsequently incurred by Employee in connection
with the defense thereof. Employee shall have the right to employ his counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from the Company of its
assumption of the defense thereof shall be at the expense of Employee unless (i) the employment of counsel by Employee has been authorized by the Company; (ii) the Company shall not in
fact have employed counsel to assume the defense of such action; or (iii) Employee shall have reasonably concluded, after consultation with legal counsel to Employee, that a conflict of
interest exists which makes representation by counsel chosen by the Company not advisable, in each of which cases the fees and expenses of one additional counsel shall be at the expense of the
Company.

	g)
	The
Company shall not be liable to indemnify Employee under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent. 

        Employee
agrees that he will reimburse the Company for all reasonable expenses paid by the Company in defending any civil or criminal action, suit or proceeding against him in the event
and only to the extent that it shall be ultimately determined that he is not entitled to be indemnified by the Company for such expenses under the provisions of the state statute, the Company's
Certificate of Incorporation and By-laws, this Agreement or otherwise. 

        14.    OPTIONS TO PURCHASES COMMON STOCK:    

        Employee
shall be entitled to distribute to employees of the Company designated by him (each such employee, a "Designated Employee"), up to 50,000 common stock purchase options (the
"Options"), each entitling the holder to purchase one share of EquiFin's common stock at a purchase price equal
to the "then current market price" (as hereinafter defined) of EquiFin's common stock on the date Employee informs the Company in writing of the award of such options. Each Option shall have a term of
five years from the date of its award to the Employee. The Options granted to a Designated Employee shall not be immediately exercisable; one-third of such options shall become exercisable
on the first anniversary of the date of grant, with another one-third of such options becoming exercisable on each of the second and third anniversaries of the date of grant. The Options
will not be intended to qualify as Incentive Stock Options as defined in Section 422 of the Internal Revenue Code of 1986, as amended. The Options will have such other terms and provisions as
are customarily contained in other non-qualified options granted by EquiFin to its employees. For purposes of this Agreement, the term "then current market price" shall mean as of the date
of measurement, the average of the daily per share closing prices of EquiFin's common stock for the 20 consecutive trading days immediately preceding such date. The closing price for each day shall be
the last price regular way or, in case no such reported sale takes place on such day, the average of the last reported bid and asked prices regular way, in either case on the principal national
securities exchange on which such common stock is admitted to trading or listed, or if not listed or admitted to trading on such an exchange, the average of the closing bid and asked prices as
reported by NASDAQ, or other similar organization if NASDAQ is no longer reporting such information, or if not so available, the fair market price as determined by the Board of Directors of EquiFin. 

9

 

        15.    MISCELLANEOUS PROVISIONS:    

        (a)    Notice and Communication.    Any and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at
the facsimile telephone number specified in this Paragraph prior to 5:00 p.m. (New York City time) on a business day, (ii) the business day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile telephone number specified herein later that 5:00 p.m. (New York City time) on any date and earlier than 11:59 p.m. (New York
City time) on such date, (iii) the business day following the date of mailing, if sent by nationally recognized overnight courier service, (iv) the fifth business day after being mailed
by first class registered or certified mail, postage prepaid addressed in accordance with this Section 15 (a) to the party to whom such notice is intended to be delivered or
(v) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be a follows: 

If
to the Company: 

1011
Highway 71

Spring Lake, New Jersey 07762

Attention: Walter M. Craig, Jr., President

Fax No. 732-282-1811 

If
to Employee: 

Allen
H. Vogel

11 Bunker Hill Run

East Brunswick, New Jersey 08816

Fax No. 732-238-2491 

        (b)    Entire Agreement.    All prior agreements and understandings between the parties with respect to the subject
matter of this Agreement are superseded by this Agreement, and this Agreement, together with the Stock Agreement, constitutes the entire understanding between the parties with respect to employment of
the Employee by Employer. This Agreement may not be modified, amended, changed or discharged, except by a writing signed by the parties hereto and then only to the extent therein set forth. 

        (c)    Non-Delegation, Etc.    Neither party may assign any rights under this Agreement; provided,
however, that upon the sale of all or substantially all of the assets, business and goodwill of the Company, or upon the merger of the Company into or consolidation thereof with another corporation,
this Agreement shall bind and inure to the benefit of both the Employee and the acquiring, succeeding or surviving corporation or other entity or individual, as the case may be. 

        (d)    Waiver.    No waiver of any breach of this Agreement or of any objection to any act or omission connected
herewith shall be implied or claimed by any party, or be deemed to constitute a consent to any continuation of such breach, act or omission, unless in a writing signed by the party against whom
enforcement of such waiver or consent is sought, and then only to the extent therein set forth. 

        (e)    Section Headings.    The section headings of this Agreement are solely for the purpose of convenience and shall
neither be deemed a part of this Agreement nor used in any interpretation thereof. 

        (f)    Governing Law.    This Agreement and the relationship of the parties shall be governed by, and construed in
accordance with, the laws of the State of New Jersey; without giving effect to conflict of law principles. 

10

 

        (g)    Prior Employment.    Employee represents to Employer that Employee is not a party to or bound by any agreement,
understanding or restriction relating to his employment. Employee expressly represents, undertakes and agrees that he has not done and will not do anything in furtherance of this Agreement
or his duties hereunder that will violate any obligations he may have to any prior employer (or will impose upon Employer any liability to any prior employer) and that he has complied with all
requirements of notice applicable to the termination of any prior employment or agreement before he commences his employment under this Agreement. 

        (h)    Severability.    If any provision of this Agreement or part thereof, is held to be unenforceable, the remainder
of such provision and this Agreement, as the case may be, shall nevertheless remain in full force and effect. 

        (i)    Binding Effect.    This Agreement shall be binding upon and inure to the benefit of Employee, the Company, and
the Company's successors and assigns. 

        (j)    Cooperation in Connection with Obtaining Key Man Life Insurance.    If the Company, in its discretion, elects
to obtain "Key Man" life insurance with respect to Employee, which insures Employee's life and names the Company as beneficiary, Employee shall cooperate with the Company in obtaining said insurance.
Without limiting the generality of the foregoing, Employee agrees to submit to such medical examinations, and take such other reasonable actions at the Company's expense, as may be reasonably
requested by the Company in obtaining such insurance. 

        (k)    Arbitration.    Any controversy or claim arising out of or relating to this Agreement, the Stock Agreement and
the subject matter addressed herein and therein (or otherwise arising with respect to Employee's current or future employment relationship with the Company) shall be settled by arbitration before a
single arbitrator and administered by the American Arbitration Association, located in Newark, New Jersey, in accordance with the rules thereof. 

        (l)    Counterparts.    This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need
not sign the same counterpart. 

11

 

        IN WITNESS WHEREOF, the parties hereto execute this Agreement and intend to be hereby bound, effective as of the date first above written. 

	 	EQUINOX BUSINESS CREDIT CORP.
	 	 	 
	 	 	 
	 	By:	 
	 	 	

	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	
 Allen H. Vogel

        The
undersigned, being a principal owner of the Company, to induce Allen H. Vogel to enter into the above agreement, hereby unconditionally guarantees the payment of one-half
the annual Base Salary pursuant to Section 9(d) of said agreement and agrees that this guaranty (i) is a guaranty of payment and not of collection and (ii) will be unaffected by
any modification, extension or other change to said agreement. In addition, the undersigned specifically agrees to the terms and provisions of Sections 4 and 14 as they relate to the undersigned. 

	 	EQUIFIN, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	 	

	 	Name:	 
	 	Title:	 

12

QuickLinks

EMPLOYMENT AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.11  

 
 

STOCK AGREEMENT    
  

        THIS AGREEMENT, dated as of December     , 2001, by and among Allen H. Vogel ("Employee"), and Equinox Business Credit Corp., a New Jersey
corporation (the "Corporation). 

        WHEREAS,
the Corporation is authorized to issue up to 200 shares of common stock, no par value per share ("Common Stock"), and is not authorized to issue any other class of capital
stock; 

        WHEREAS,
there are currently 100 shares of Common Stock issued and outstanding; 

        WHEREAS,
in consideration of Employee's entering into an employment agreement with the Corporation simultaneously herewith (as such agreement may hereafter be amended, the "Employment
Agreement") and his providing services to the Corporation pursuant thereto, the Corporation has agreed, subject to the terms and conditions contained herein, to issue to Employee such number of shares
of its capital stock such that, immediately after issuance, Employee will own 19% of all of the Corporation's issued and outstanding shares of capital stock; 

        NOW
THEREFORE, the parties hereto agree as follows: 

        A.    ISSUANCE OF SHARES.    

        In
consideration of Employee's entering into the Employment Agreement and his providing services to the Corporation pursuant thereto, the Corporation hereby agrees to issue to Employee
23.46 shares (collectively, the "Shares") of its Common Stock, constituting 19% of all of its issued and outstanding shares of capital stock after issuance. 

        B.    REPRESENTATION REGARDING PURCHASE OF SHARES.    

        Employee
understands and agrees that his investment in the Shares is not a liquid investment. In particular, he recognizes, acknowledges and agrees that he must bear the economic risk of
investment in his Shares for an indefinite period of time, since the Shares have not been registered under the Securities Act of 1933, as amended (the "Act"), or applicable state securities laws (the
"Sate Acts"), and therefore cannot be transferred or sold unless either they are subsequently registered under the Act and applicable State Acts, or an exemption from registration is available and a
favorable opinion of counsel to that effect is obtained. Employee agrees that the certificate or certificates representing his Shares will bear a legend to the foregoing effect. 

        C.    RESTRICTIONS ON TRANSFER OF SHARES.    

        1.    Transfer of the Shares.    Except as otherwise provided in this Agreement, Employee may
not transfer any interest in nor create any lien on his Shares, voluntarily or involuntarily by operation of law or otherwise, except a transfer to EquiFin, Inc., a Delaware corporation and the
owner of 81% of the issued and outstanding shares of the Corporation ("EquiFin"), the Corporation or to a member of the Shareholder's Immediate Family. Immediate Family means spouse, issue, spouses of
issue and any trust for the principal benefit of any of the foregoing. Any Shares so transferred shall remain subject to the terms of this Agreement. A person who is included in the Immediate Family
as a spouse of a member of the Immediate Family ceases to be included in the Immediate Family upon the effective date of a divorce from, or annulment of the marriage to, such member, and any Shares
held by such individual shall promptly be transferred back to Employee or the member of Employee's Immediate Family from whom they were received or another member of Employee's Immediate Family. 

        Any
attempt to transfer an interest in Shares owned by Employee in violation of this Agreement shall be ineffective and the Corporation shall refuse to register such Shares in the name
of the transferee. 

        1.    Will Provisions.    Employee (and natural persons who may succeed to the ownership of
his Shares, including, without limitation, members of his Immediate Family) agrees to maintain in 

 

effect at all times a will providing for transfer of the Shares only in accordance with the terms of this Agreement and directing his executor or other administrator of his personal property to
execute all documents and to take all other appropriate action to effectuate the purposes of this Agreement. 

        3.    Legend.    Employee agrees that his Shares shall have inscribed thereon the following
legend (in addition to the legend referred to in Section B): "Ownership and transfer of the Shares represented by this certificate are subject to, and such Shares may be
held, sold, assigned, pledged, hypothecated or otherwise disposed of or encumbered only in accordance with the terms and conditions of certain Stock Agreement dated as of December    ,
2001, between the Corporation and the registered holder, as amended from time to time, a copy of which is on file at the offices of the Corporation."

        4.    Transfer to Employees.    Notwithstanding the foregoing or anything else to the contrary
contained herein, Employee shall have the right to transfer any or all of the Shares to employees of the Corporation, subject to each of such employees executing an agreement relating to such Shares
that is mutually acceptable to Employee and the Corporation, in each of their sole and absolute discretion. 

        D.    FORFEITURE OF SHARES.    If Employee's employment is terminated by the Corporation
pursuant to Section 9(c) of his Employment Agreement, or otherwise terminated "for cause" as such term is defined in any subsequent employment agreement between the Corporation and Employee, or
Employee terminates his employment in breach of said Employment Agreement (or any subsequent employment agreement), then the Shares shall immediately be forfeited, be deemed to no longer be
outstanding and Employee and members of his Immediate Family shall return the certificate or certificates for the Shares to the Corporation for cancellation. 

        E.    OPTIONS TO PURCHASE AND SELL SHARES.    

        1.    Five Year Call Option.    From and after the date hereof through
December     , 2006 (being five years after the commencement date of the Employment Agreement), the Corporation or EquiFin shall have the right to purchase all, but not less than all,
of Employee's and his Immediate Family's Shares (the "Five Year Call Option") for the "Five Year Call Option Purchase Price" (as hereinafter defined) if Employee terminates his employment by the
Corporation, other than in breach of the Employment Agreement (in which case his Shares will be forfeited pursuant to Paragraph E) or the Corporation's breach of the
Employment Agreement (in which case the Corporation will forfeit its Five Year Call Option). Chip—What happens if the Corporation terminates Allen in accordance with the Agreement,
including if the Corporation elects not to renew, can it buy Allen out? [Notwithstanding the foregoing or anything else to the contrary contained herein, the Corporation shall not have the
right to exercise the Five Year Call Option if Employee terminates his employment after having given written notice to the Corporation of a policy or practice that the Corporation has initiated which
obstructs the Employee from, in his reasonable opinion, carrying out his responsibilities under his Employment Agreement and the Corporation, or EquiFin, fails to remedy such policy or practice to
Employee's reasonable satisfaction within a period of four months after such notice.] Chip—We should discuss the bracketed portion. The Five Year Call
Option must be exercised within a period of 120 days after the termination of Employee's employment by the Corporation. 

        2.    Put Option.    Subject to Employee having been employed by the Corporation for a period
of at least five years, Employee and his Immediate Family, acting together, shall have the right to sell all, but not less
than all, of their Shares to the Corporation (the "Put Option") for the "Post Five Year Option Purchase Price" (as hereinafter defined), if the Employment Period has ended other than as a result of
(i) the Corporation's termination thereof pursuant to Section 9(c) of the Employment Agreement or otherwise "for cause" as provided in a subsequent employment 

2

 

contract with the Corporation or (ii) Employee's termination of his employment in breach of the Employment Agreement or any subsequent employment contract. The Put Option must be exercised
within a period of 120 days (the "Put Option Election Period") after the termination of Employee's employment. Notwithstanding the foregoing or anything else to the
contrary contained herein, if Employee has not elected to exercise the Put Option within the Put Option Election Period, the Corporation shall have the option (the "Post Five Year Call Option") for a
period of 30 days after the expiration of the Put Option Election Period to elect to purchase all, but not less than all, of Employee's and his Immediate Family's Shares for the Post Five Year
Option Purchase Price. Chip- Should the Corporation have the foregoing in any event? Should it just have the option if it is Allen who terminated the employment
relationship?

        CHIP—What if EquiFin is selling all of its shares of the Corporation? Any right or obligation for Allen to sell?

        3.    The Five Year Call Option Purchase Price.    The "Five Year Call Option Purchase Price"
shall equal the product of (i) the Employee's percentage ownership of the capital stock of the Corporation on the date of exercise of the Five Year Call Option , multiplied by (ii) the
Corporation's net worth as of the end of the Corporation's fiscal quarterly period immediately preceding the date of Employee's termination of employment (the "Termination Quarterly Period"). For
purposes of clause (ii), the net worth of the Corporation shall be consistent with its net worth as reflected in EquiFin's Quarterly Report or Annual Report (if the Termination Quarterly Period
was the fourth quarter of the Corporation's fiscal year) filed with the Securities and Exchange Commission with respect to, or that otherwise includes, the Termination Quarterly Period, if at the date
of the exercise of the Five Year Call Option, EquiFin is required to file such reports. 

        4.    The Post Five Year Option Purchase Price.    The "Post Five Year Option Purchase Price"
shall equal the product of (i) the Employee's percentage ownership of the capital stock of the Corporation on the date of exercise of the Put Option or the Post Five Year Call Option,
multiplied by (ii) the Corporation's "Value" (as hereinafter defined) as of the last day of Employee's employment by the Corporation. For purposes of this Agreement, "Value" shall mean the
purchase price that a willing buyer would pay to a willing seller for all of the capital stock of the Corporation in an arms length transaction. The Employee and the Corporation shall attempt to agree
on the Value of the Corporation as of the date of Employee's termination of employment (the "Termination Date"), but if they are unable to agree within a period of 30 days (the "Value Agreement
Period") after the exercise of the Put Option or Post Five Year Call Option, as applicable, then the Value of the Corporation as of such date shall be promptly submitted for determination by a
qualified [Further define qualified] business appraiser to be selected by Employee and the Corporation or, if they do not agree
on such an appraiser within 30 days of the end of the Value Agreement Period (the "Appraiser Agreement Period"), each of the Employee and the Corporation shall select a qualified business
appraiser within 30 days of the end of the Appraiser Agreement Period, and the Value of the Corporation shall be the average of the Values of the Corporation as of the Termination Date as
determined by each of such appraisers. The Value of
the Corporation as determined in accordance with the foregoing provisions shall be binding upon each of Employee and the Corporation (the date the Value of the Corporation is determined pursuant to
the foregoing provisions is hereinafter referred to as the "Valuation Date"). In the event the Corporation and Employee agree on a single appraiser, the Corporation and the Employee shall each bear
one-half of the fees and expenses of the appraiser. In the event, they cannot agree on a single appraiser, then they will each bear the fees and expenses of the appraiser chosen by them.
Each of Employee and the Corporation shall be entitled to receive copies of the final appraisal report or opinion prepared by the appraiser (in the case a single 

3

 

appraiser has been agreed upon) or appraisers (if each of Employee and the Corporation selects an appraiser). 

        5.    Manner of Payment of Five Year Call or Post Five Year Option Purchase Price.    Both the
Five Year Call Option Purchase Price and the Post Five Year Option Purchase Price shall be payable by delivery of a promissory note (the "Note"), bearing interest at the prime
rate on the "Closing Date" (as defined in Paragraph F 6 immediately below), as published by the Wall Street Journal, and providing for a single balloon payment of the entire purchase price, and
all accrued interest thereon, on the first anniversary of the Closing Date. The Note shall be in such form and contain such other provisions as the Corporation shall determine
in its reasonable discretion and shall expressly permit EquiFin to assume all or any portion of the Corporation's obligations under the Note and to pay for the obligation assumed by delivering shares
of EquiFin's common stock, so long as such shares are (x) then traded on a national securities exchange or on NASDAQ or any other comparable system, or (y) are otherwise publicly traded
securities. For purposes of determining the number of such shares to be delivered as payment of all or a portion of the Five Year Call or Post Five Year Option Purchase Price, such shares shall be
assigned a value equal to the average of the "Reported Prices" (as hereinafter defined) of EquiFin's common stock for the 20 trading days immediately preceding the maturity date of the
Note. For purposes of this Agreement, "Reported Price" for each day means the last reported sales price of EquiFin's common stock regular way, or in
case no such reported sale takes place on such day, the average of the closing bid and asked prices regular way for such day, in each case on the principal national securities exchange on which shares
of EquiFin's common stock are listed or admitted to trading or, if not so listed or admitted to trading, the average of the closing bid and asked prices of EquiFin's common stock as reported by the
NASDAQ or any comparable system or if not approved for quotation by NASDAQ or any comparable system, the average of the closing bid and asked prices as furnished by two members of the National
Association of Securities Dealers, Inc. selected from time to time by EquiFin for that purpose. 

        6.    Manner of Exercise of Five Year Call Option, Put Option and Post Five Year Call
Option.    The Five Year Call Option, the Put Option and the Post Five Year Call Option are exercisable by the party exercising the option by delivering written
notice of exercise to the other party (in the case of the Corporation's exercise of its Five Year Call Option or its Post Five Year Call Option, this will include delivering written notice to
Employee's Immediate Family members who are record holders of Shares). The closing of the sale of Shares pursuant to the exercise of any such option shall be at the offices of the Corporation on a
mutually satisfactory business day (the "Closing Date"). The closing with respect to the exercise of the Five Year Call Option shall be within the later of (i) 30 days after the notice
of exercise thereof has been delivered, or (ii)15 days after the completion of EquiFin's consolidated financial statements for the Termination Quarterly Period, or in the event the Termination
Quarterly Period is the fourth quarter of EquiFin's fiscal year, 15 days after the completion of EquiFin's consolidated financial statements for its fiscal year containing the Termination
Quarterly Period, and
the filing of such financial statements with the Securities and Exchange Commission pursuant to a Quarterly Report on Form 10-Q or an Annual Report on Form 10-K,
or any comparable form. The closing with respect to the exercise of the Put Option or Post Five Year Call Option shall be within 30 days of the Valuation Date. Delivery of certificates or other
instruments evidencing the Shares being purchased or sold pursuant to the exercise of the Five Year Call Option, Put Option or Post Five Year Call Option duly endorsed for transfer to the Corporation
shall be made on the Closing Date against delivery of the Note. 

        7.    Agreement to Transfer EquiFin Common Stock in accordance with Securities
Laws.    Employee understands that the shares of EquiFin's common stock he and members of his Immediate Family may receive as a result of the
exercise of the Five Year Call Option, the Put Option or the Post Five Year Call Option will not, upon his or their receipt, be registered under the Act or State Acts,  

4

 

 and, therefore, will not be able to be transferred or sold unless either they are subsequently registered under the Act and applicable State Acts, or an exemption from registration is available and a
favorable opinion of counsel to that effect is obtained. The shares of EquiFin's common stock that are delivered as a result of the exercise of any of the foregoing options shall bear a legend to the
foregoing effect. Employee and members of his Immediate Family receiving such shares shall acquire them for their own account, for investment purposes only and not with a view to, or for resale in
connection with, any "distribution" thereof for purposes of the Act. Employee and members of his Immediate Family receiving shares of EquiFin's common stock upon exercise of the Five Year Call Option,
the Put Option or the Post Five Year Call Option shall execute such documents and instruments as EquiFin shall reasonably request in order to comply with applicable Federal and state securities
laws.

        8.    Registration Rights.    In the event EquiFin assumes all or a
portion of the Note and pays all or a portion of the amounts thereunder by delivery of shares of its common stock, EquiFin will agree, as soon as practicable and in any event within six months of the
maturity date of the Note, to use its best efforts to (i) prepare and file under the Act, a registration statement relating to the resale of the shares of EquiFin's common stock that are issued
upon exercise of the Five Year Call Option, the Put Option or the Post Five Year Call Option (the term "registration statement" as used herein being deemed to include any form which may be used to
register a distribution of securities to the public for cash); (ii) prepare and file with the appropriate state blue sky authorities the necessary documents to register or qualify such shares
of EquiFin's common stock in such states as Employee or Employee's Immediate Family members shall reasonably request; and (iii) use its best efforts to cause such registration statement to
become effective and to keep such registration statement and state blue sky filings current and effective for a period of two years after the Closing Date.

        All expenses in connection with preparing and filing any such registration statement (and any registration or qualification under the blue sky laws of the states
in which the offering will be made under such registration statement) shall be borne in full by EquiFin or the Corporation, except that the underwriting commissions, discounts and expenses
attributable to such shares of EquiFin's common stock so registered and the fees and disbursements of counsel, if any, to the holders of such shares shall be borne by such holders. EquiFin may include
other securities in any such registration statement.

        Each holder of such shares of EquiFin's common stock shall be required to complete, execute and deliver all such documents and undertakings as EquiFin may
reasonably request in connection with such registration including those which it deems necessary or desirable for purposes of compliance with applicable federal and state securities laws. EquiFin's
obligations as set forth above with respect to each holder of such shares are contingent on such holder's satisfaction of his or its obligations set forth above.

        F.    MISCELLANEOUS.    

        1.    Remedies.    The parties hereto shall be entitled to exercise
all rights provided herein or granted by law, including recovery of damages, and will be entitled tp specific performance of their rights under this Agreement. The parties agree that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach of the provisions of this Agreement and each party hereby agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

5

 

        2.    Notices.    All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, registered first-class mail, telex, telecopier or air courier guaranteeing overnight delivery: 

	a)
	if
to the Corporation addressed to it at: 

with
a copy to: 

EquiFin, Inc.

1011 Highway 71

Spring Lake, New Jersey 07762

Attention, Walter M. Craig, Jr.

Fax No: 732-282-1811 

	b)
	Employee
addressed to him at 

Allen
H. Vogel

11 Bunker Hill Run

East Brunswick, New Jersey 08816

Fax No. 732-238-2491

        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, postage prepaid, if mailed; when receipt acknowledged, if telecopied; or the next business day, if timely delivered to an air courier guaranteeing overnight delivery. 

        3.    Counterparts.    This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

        4.    Headings.    The headings in this Agreement are for convenience of reference only, and
shall not limit or otherwise affect the meaning hereof. 

        5.    Governing Law.    This Agreement shall be governed by, and construed in accordance with,
the internal substantive laws of the State of New Jersey, disregarding all principles of conflicts of laws and the like. 

        6.    Severability.    In the event that any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby. 

        7.    Entire Agreement.    This Agreement, together with the Employment Agreement, is intended
by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein, disregarding all prior and contemporaneous agreements or understandings. 

        8.    Interpretation.    When the context in which words are used in this Agreement indicates
that such is the intent, singular words shall include the plural and vice versa and masculine words shall include the feminine and the neuter genders and vice versa. The term EquiFin shall include any
successor entity by merger or otherwise or any entity purchasing all of the Corporation's capital stock then owned by EquiFin. 

        9.    Successors.    Except as otherwise provided in this Agreement, all provisions of this
Agreement shall be binding upon, inure to the benefit of, and be enforceable by and against the 

6

 

respective heirs, executors, administrators, personal representatives, successors and assigns of the parties. 

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

	 	EQUINOX BUSINESS CREDIT CORP.
	 	 	 
	 	 	 
	 	By:	 
	 	 	

	 	 	Name:

Title:
	 	 	 
	 	 	 
	 	
 Allen H. Vogel

7

QuickLinks

STOCK AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]