Document:

Unassociated Document

    

      PROMISSORY
        NOTE

      

      THIS
        NOTE
        HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
        "ACT"), OR UNDER ANY STATE SECURITIES LAW AND MAY NOT BE PLEDGED, SOLD, ASSIGNED
        OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH
        RESPECT THERETO UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAW OR
        AN
        EXEMPTION FROM SUCH REGISTRATION.

      

        
          	
                  $10,000,000

                	
                  New
                    York, New York

                
	 	
                  May
                    8, 2007

                

        

         

      

      FOR
        VALUE
        RECEIVED, the undersigned, Leisurecorp LLC, a Dubai limited liability company
        (the "Borrower"), hereby promises to pay the order of GPS Industries, Inc.,
        a
        Nevada corporation, with principal executive offices located at Suite 214,
        5500
        152nd Street, Surrey, British Columbia, Canada V35 S59 ("Lender"), the principal
        sum of TEN MILLION U.S. DOLLARS ($10,000,000), at the times, at the place,
        and
        in the manner provided in this Note. 

       

      The
        Borrower shall repay the principal of this Note as follows: 

       

      (1) 
$2,000,000
        shall be due and payable on June 30, 2007 (“Payment #1”);

       

      (2) 
$4,000,000
        shall be due and payable on October 31, 2007 (“Payment #2”); and

       

      (3) 
$4,000,000
        shall be due and payable on December 31, 2007 (“Payment #3”);

       

      provided
        that, if such day falls on a Saturday, Sunday or banking holiday in New York,
        such amounts shall be due instead on the next business day. 

       

      The
        principal of this Note may be prepaid at any time, in whole or in part, without
        penalty or premium. 

       

      This
        Note
        shall not bear interest when no Event of Default has occurred and is continuing.
        Following the occurrence and during the continuance of an Event of Default,
        the
        unpaid principal balance of this Note then due and owing shall bear interest
        at
        a rate of six percent (6%) per annum. All such interest shall be computed
        on the
        basis of a year of 365 days and the number of days actually elapsed. Anything
        herein to the contrary notwithstanding, if an Event of Default occurs, all
        interest accruing following the occurrence and during the continuance of
        such an
        Event of Default shall be payable at the rate provided above in cash on the
        Lender's demand. 

       

      Notwithstanding
        the foregoing or any other provision contained in this Note, nothing herein
        contained shall authorize or permit the exaction or payment of interest by
        the
        Borrower where the same would be unlawful or prohibited by any applicable
        law or
        would violate the applicable usury law of any jurisdiction. In any such event,
        this Note shall automatically be deemed amended to permit interest charged
        at an
        amount equal to, but not greater than, the maximum permitted by
        law.

       

      All
        principal (and any interest) shall be payable in the lawful money of the
        United
        States at the offices of Lender, or at such other place as may be designated
        in
        writing by the holder of this Note. All payments hereunder shall be made
        without
        reduction by reason of set-off, counter-claim or otherwise.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      This
        Note
        is executed and delivered as consideration for the purchase by Lender of
        the
        Borrower's Series B Convertible Preferred Stock and Warrants pursuant to
        that
        certain Securities Purchase Agreement, dated as of April 27, 2007. This Note
        is
        secured by that certain Pledge and Security Agreement, of even date herewith,
        from the Borrower in favor of the Lender (the “Security
        Agreement”).

       

      An
“Event
        of Default” shall mean that Borrower fails to make a payment of principal on
        this Note within 15 days of the scheduled date on which such principal payment
        is due under this Note.

       

      Should
        the indebtedness represented by this Note, or any part thereof, be collected
        in
        law or in equity, or in bankruptcy, receivership or in any other court
        proceedings, or this Note be placed in the hands of attorneys for collection
        after default, the Borrower agrees to pay, in addition to the principal,
        interest and other amounts due and payable hereon and hereunder, all costs
        and
        expenses incurred in connection with such collection, including, without
        limitation, reasonable attorneys’ and collection fees.

       

      The
        Borrower hereby waives, to the fullest extent permitted by law, diligence,
        presentment, demand for payment, protest, notice of dishonor and any and
        all
        other notices or demands of every kind and the right to plead the statute
        of
        limitations as a defense to any action hereunder. No delay on the part of
        the
        holder hereof in exercising any rights hereunder shall operate as a waiver
        of
        such rights.

       

      All
        notices and other communications provided for hereunder shall be in writing
        and
        shall be sent by (a) registered or certified mail postage prepaid, return
        receipt requested (b) messenger or (c) telecopy, followed by first-class
        mail,
        to the party to whom addressed at the following respective addresses or telecopy
        numbers or to such other address or telecopy number as the party affected
        may
        hereafter designate:

       

      (i)          
         If
        to the
        Lender:

      

      GPS
        Industries, Inc.

      Suite
        214

      5500
        152nd Street

      Surrey,
        British Columbia

      Canada
        V35 S59

      Attn:
        Chief Executive Officer

      Telecopier:
        (604) 576-7460 

      

      (ii)         
         If
        to the
        Borrower:

       

      David
        Spencer 

      Chief
        Executive Officer 

      Istithmar
        Leisure 

      P.O.
        Box
        17000, Dubai, UAE 

      Telephone:
        +9714-3687630 

      Telecopy:
        +9714-3687654

      

      This
        Note
        may not be changed orally, but only by an agreement in writing, which is
        signed
        by the party or parties against whom enforcement of any waiver, change,
        modification or discharge is sought.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      The
        terms
        and conditions of this Note shall inure to the benefit of and be binding
        upon
        the respective successors and assigns of the parties. Nothing in this Note,
        express or implied, is intended to confer upon any party other than the parties
        hereto or their respective successors and assigns any rights, remedies,
        obligations, or liabilities under or by reason of this Note, except as expressly
        provided in this Note.

       

      This
        Note
        shall not be subject to offset or deduction for any reason.

       

      THIS
        NOTE
        AND THE RIGHTS AND OBLIGATIONS OF THE BORROWER AND LENDER HEREUNDER SHALL
        BE
        GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
        NE W
        YORK.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      LENDER:

      

      LEISURECORP
        LLC

      

      

      By:________________________________

      Name:

      Title:

      

      [SIGNATURE
        PAGE TO PROMISSORY NOTE]

      

      
        
           

        

        
          4Unassociated Document

    PLEDGE
      AND SECURITY AGREEMENT

     

    PLEDGE
      AND SECURITY AGREEMENT (this “Agreement”)
      dated
      as of May 8, 2007, made by Leisurecorp LLC, a Dubai limited liability company
      (“Pledgor”),
      in
      favor of GPS Industries, Inc., a Nevada corporation (“Pledgee”).

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      pursuant to that certain Securities Purchase Agreement, dated as of May 8,
      2007
      (the “Securities
      Purchase Agreement”),
      concurrently with the execution of this Agreement Pledgee is selling and issuing
      to Pledgor (i) 1,000,000 shares (the “Pledged
      Shares”)
      of
      Series B Convertible Preferred Stock of Pledgee and (ii) warrants to purchase
      40,983,607 shares of the Pledgee’s common stock (the “Common
      Stock”)
      at an
      exercise price per share of $.122 (the “Pledged
      Warrants”),
      all
      in consideration of Pledgor’s promissory note in favor of Pledgee dated the date
      hereof in the principal amount of $10,000,000 (the “Promissory
      Note”);
      and

     

    WHEREAS,
      in order to secure Pledgor’s obligations to Pledgee under the Promissory Note,
      Pledgor has agreed to pledge to Pledgee the Pledged Shares and the Pledged
      Warrants in accordance with the terms of this Agreement;

     

    NOW,
      THEREFORE, in consideration of the premises and the agreements herein and other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereby agree as follows:

     

    1.  
Definitions.
      All
      terms used in this Agreement which are defined in Article 9 of the Uniform
      Commercial Code as currently in effect in the State of New York (the
“Code”)
      and
      which are not otherwise defined herein shall have the same meanings herein
      as
      set forth in the Code. The term “Default”
shall
      mean the occurrence of an “Event of Default” under the Promissory Note or any
      material breach of any of Pledgor's representations, warranties or covenants
      in
      this Agreement. All other terms used but not defined herein shall have the
      meanings ascribed to such terms in the Promissory Note.

     

    2.  
Pledge
      and Grant of Security Interest in Pledged Collateral.

     

    (a)  
As
      collateral security for all of the Obligations (as defined in Section 3 hereof),
      Pledgor hereby pledges and assigns to Pledgee, and grants to Pledgee a
      continuing security interest in, the following:

     

    (i)  
the
      Pledged Shares, any certificates representing the Pledged Shares, and all shares
      of Common Stock issuable upon the conversion of the Pledged Shares;

     

    (ii)  
the
      Pledged Warrants and all shares of Common Stock issuable upon the exercise
      of
      the Pledged Warrants, and

     

    (iii)  
all
      proceeds of any and all of the foregoing;

     

    in
      each
      case, as Pledgor’s interest therein may arise or appear (whether by ownership,
      security interest, claim or otherwise). The foregoing collateral is herein
      referred to as the “Pledged
      Collateral,”
      provided, however, that to the extent that any of the foregoing assets are,
      from
      time to time, released pursuant to Section 11 below, such released assets shall
      cease being “Pledged Collateral” and shall after such release no longer be
      subject to this Agreement, and shares of Series B Convertible Preferred Stock
      and warrants that are, from time to time, released pursuant to Section 11 shall
      cease being “Pledged Shares” and “Pledged Warrants.”

     

    
      
         

      

      
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    3.  
Security
      for Obligations.
      The
      security interest created hereby in the Pledged Collateral constitutes
      continuing collateral security for the following (collectively, the
“Obligations”):
      (i)
      The prompt payment and satisfaction by Pledgor of all of its liabilities and
      obligations under the Promissory Note; (ii) the performance by Pledgor of all
      of
      its obligations arising under, or contemplated by, this Agreement; and (iii)
      the
      payment of all amounts from time to time owing to Pledgee by the Pledgor under
      this Agreement, including payment of any and all costs and expenses (including,
      without limitation, reasonable attorneys’ fees and expenses) incurred by Pledgee
      in the collection of the Promissory Note and in the enforcement of its rights
      under this Agreement.

     

    4.  
Delivery
      of the Pledged Collateral.
      All
      certificates and instruments currently representing the Pledged Shares and
      Pledged Warrants are being delivered to Pledgee concurrently with the execution
      and delivery of this Agreement, to be held by it hereunder. The certificates
      and
      instruments being delivered hereunder consist of three stock certificates (two
      for 400,000 shares of the Pledged Shares each, and one for 200,000 shares of
      the
      Pledged Shares), and three separate warrants (two evidencing the right to
      purchase 16,393,442 shares of Common Stock each, and one evidencing the right
      to
      purchase 8,196,723 shares of Common Stock). All other certificates and other
      instruments constituting Pledged Collateral from time to time shall be delivered
      to Pledgee promptly upon the receipt thereof by or on behalf of the Pledgor.
      All
      such certificates and instruments shall be held by Pledgee pursuant hereto
      and
      shall be delivered in suitable form for transfer by delivery or shall be
      accompanied by duly executed instruments of transfer or assignment in blank,
      all
      in form and substance satisfactory to Pledgee. Any new, additional or different
      securities or other property (other than regular cash dividends) which may
      now
      or hereafter become distributable with respect to the Pledged Collateral by
      reason of (i) any stock split, stock dividend, recapitalization, combination
      of
      shares, exchange of shares or other change affecting the Common Stock as a
      class
      or (ii) any merger, consolidation or other reorganization affecting the capital
      structure of Pledgee shall, upon receipt by Pledgor, be promptly delivered
      to
      and deposited with Pledgee as part of the Pledged Collateral hereunder. To
      the
      extent Pledgee reasonably deems it necessary or advisable to perfect its
      security interest hereunder in addition to its possession of the Pledged
      Collateral, Pledgor hereby authorizes Pledgee, concurrently with its execution
      and delivery of this Agreement or at any time that Pledgee may thereafter
      determine, to prepare and file UCC-1 financing statements naming Pledgor as
      the
      debtor and Pledgee as secured party and describing the collateral pledged
      hereunder in reasonable detail. 

     

    5.  
Representations
      and Warranties.
      Pledgor
      represents and warrants to Pledgee as follows:

     

    (a)  
Pledgor
      is and will be at all times the record and beneficial owner of the Pledged
      Collateral, free and clear of any lien, security interest, option or other
      charge or encumbrance, except for the security interest created by this
      Agreement or any other general security interest granted by the Pledgor or
      Pledgor’s affiliates.

     

    
      
         

      

      
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    (b)  
This
      Agreement creates a valid security interest in favor of Pledgee in the Pledged
      Collateral, as security for the Obligations. Such security interest is, or
      in
      the case of Pledged Collateral in which Pledgor obtains rights after the date
      hereof, will be, a perfected, first priority security interest upon the
      Pledgor’s delivery of the Pledged Collateral to Pledgee as described in Section
      4 above.

     

    6.  
Covenants.
      So long
      as any of the Obligations shall remain outstanding, Pledgor shall, unless
      Pledgee shall otherwise consent in writing:

     

    (a)  
at
      its
      expense, defend the Pledgor’s right, title and interest in and to the Pledged
      Collateral and Pledgee’s security interest therein against the claims of any
      other person;

     

    (b)  
not
      sell,
      assign (by operation of law or otherwise), exchange or otherwise dispose of
      any
      Pledged Collateral or any interest therein, other than as contemplated
      hereunder;

     

    (c)  
shall
      not
      convert, or attempt to convert, any of the Pledged Shares or exercise, or
      attempt to exercise, the Pledged Warrants;

     

    (d)  
not
      create or suffer to exist any lien, security interest or other charge or
      encumbrance upon or with respect to any Pledged Collateral except for the
      security interest created hereby and any general security interest granted
      by
      the Pledgor or Pledgor’s affiliates; and

     

    (e)  
not
      make
      or consent to any amendment or other modification with respect to any Pledged
      Collateral or enter into any agreement or permit to exist any restriction with
      respect to any Pledged Collateral other than pursuant hereto and other than
      those imposed by U.S. federal and state securities laws.

     

    7.  
Voting
      Rights, Dividends, Etc. in Respect of the Pledged Collateral.

     

    (a)  
So
      long
      as no Default shall have occurred and be continuing:

     

    (i)  Pledgor
      may exercise any and all voting and other consensual rights pertaining to the
      Pledged Shares for any purpose not inconsistent with the terms of this
      Agreement;

     

    (ii)  Pledgor
      may receive and retain any and all dividends paid in cash in respect of the
      Pledged Collateral; and

     

    (iii)  Pledgee
      will execute and deliver (or cause to be executed and delivered) to Pledgor
      all
      such proxies and other instruments as Pledgor may reasonably request for the
      purpose of enabling Pledgor to exercise the voting and other rights which it
      is
      entitled to exercise pursuant to paragraph (i) of this Section 7(a) and to
      receive the dividends which it is authorized to receive and retain pursuant
      to
      paragraph (ii) of this Section 7(a).

     

    
      
         

      

      
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    (b)  
Upon
      the
      occurrence and during the continuance of a Default;

     

    (i)  
all
      rights of Pledgor to exercise the voting and other consensual rights which
      it
      would otherwise be entitled to exercise pursuant to paragraph (i) of subsection
      (a) of this Section 7, and to receive the dividends which it would otherwise
      be
      authorized to receive and retain pursuant to paragraph (ii) of subsection (a)
      of
      this Section 7, shall cease with respect to Pledged Shares having an aggregate
      Value equal to any unpaid principal and interest amounts then due and owing
      under the Promissory Note (the “Relevant Collateral”), and all such rights shall
      thereupon become vested in Pledgee or any person to whom the Relevant Collateral
      is transferred pursuant to Section 9, who shall thereupon have the sole right
      to
      exercise such voting and other consensual rights and to receive and hold as
      Pledged Collateral such dividends. “Value” shall mean, for every $10 due and
      owing, one share of Preferred Stock and warrants to purchase 40.983 shares
      of
      Common Stock;

     

    (ii)  
without
      limiting the generality of the foregoing, Pledgee may, at its option, exercise
      any and all rights of conversion, exchange, or any other rights, privileges
      or
      options pertaining to any of the Relevant Collateral as if it were the absolute
      owner thereof, including, without limitation, the right to exchange, in its
      discretion, any and all of the Relevant Collateral upon the merger,
      consolidation, reorganization, recapitalization or other adjustment of Pledgee,
      or upon the exercise by Pledgee of any right, privilege or option pertaining
      to
      any Relevant Collateral, and, in connection therewith, to deposit and deliver
      any and all of the Relevant Collateral with any committee, depository, transfer
      agent, registrar or other designated agent upon such terms and conditions as
      it
      may determine; and

     

    (iii)  
all
      dividends which are received by the Pledgor contrary to the provisions of
      paragraph (i) of this Section 7(b) shall be received in trust for the benefit
      of
      Pledgee, shall be segregated from other funds of Pledgor, and shall be forthwith
      paid over to Pledgee as Pledged Collateral in the exact form received with
      any
      necessary endorsement and/or appropriate stock powers duly executed in blank,
      to
      be held by Pledgee as Pledged Collateral and as further collateral security
      for
      the Obligations.

     

    8.  
Additional
      Provisions Concerning the Pledged Collateral.
      If
      Pledgor fails to perform any agreement or obligation contained herein, Pledgee
      itself may perform, or cause performance of, such agreement or obligation,
      and
      the expenses of Pledgee incurred in connection therewith shall be payable by
      Pledgor.

     

    9.  
Remedies
      Upon Default.
      If a
      Default shall have occurred and be continuing, and subject to the limitations
      imposed by the U.S. Securities Act of 1933, as amended (the “Securities
      Act”),
      and
      any applicable state “blue sky” laws and regulations, Pledgee shall have the
      following rights and remedies, and only such rights and remedies:

     

    (a)  
Pledgee
      may, at its election, exercise any or all of the rights and remedies granted
      to
      a secured party under the provisions of the Uniform Commercial Code (as now
      or
      hereafter in effect), including (without limitation) the power to dispose of
      any
      Relevant Collateral by public or private sale, in one or more parts, at any
      exchange or broker's board or elsewhere, at such price or prices and on such
      other terms as are commercially reasonable. Pledgee shall give Pledgor 15 days
      prior notice of any such sale, and Pledgor agrees that, to the extent notice
      of
      sale shall be required by law, at least 15 days prior notice to Pledgor of
      the
      time and place of any public sale or the time after which any private sale
      is to
      be made shall constitute reasonable notification. Pledgee shall not be obligated
      to make any sale of Pledged Collateral regardless of notice of sale having
      been
      given. Pledgee 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.
      In
      connection with any such public or private sale of any Relevant Collateral,
      Pledgee shall have the right to exercise any rights available to a holder of
      Pledged Collateral, including the right to convert Pledged Shares into shares
      of
      Common Stock.

     

    
      
         

      

      
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    (b)  
Pledgor
      recognizes that Pledgee may deem it impracticable to effect a public sale of
      all
      or any part of the Pledged Shares or any other securities constituting Relevant
      Collateral and that Pledgee may, therefore, determine to make one or more
      private sales of any such securities to a restricted group of purchasers who
      will be obligated to agree, among other things, to acquire such securities
      for
      their own account, for investment and not with a view to the distribution or
      resale thereof. Pledgor acknowledges that any such private sale may be at prices
      and on terms less favorable to Pledgee than the prices and other terms which
      might have been obtained at a public sale and, notwithstanding the foregoing,
      agrees that such private sales shall be deemed to have been made in a
      commercially reasonable manner and that Pledgee shall have no obligation to
      delay the sale of any such securities for the period of time necessary to permit
      the issuer of such securities to register such securities for public sale under
      the Securities Act.

     

    (c)  
Any
      cash
      held by Pledgee as Pledged Collateral and all cash proceeds received by Pledgee
      in respect of any sale of, collection from, or other realization upon, all
      or
      any part of the Pledged Collateral shall be applied as follows:

     

    (i)  
First,
      to
      the payment of the reasonable costs and expenses, including reasonable
      attorneys' fees and legal expenses, incurred by Pledgee in connection with
      (A)
      the administration of this Agreement, (B) the custody, preservation, use or
      operation of, or the sale of, collection from, or other realization upon, any
      Pledged Collateral, and (C) the exercise or enforcement of any of the rights
      of
      Pledgee hereunder;

     

    (ii)  
Second,
      at the option of Pledgee, to the payment or other satisfaction of any liens
      and
      other encumbrances upon any of the Pledged Collateral;

     

    (iii)  
Third,
      to
      the payment of the Obligations, first in respect of any fees not covered by
      clause (i) above, and, second, in respect of amounts owing under the Promissory
      Note at such time;

     

    (iv)  
Fourth,
      to the payment of any other amounts required by applicable law; and

     

    (v)  
Fifth,
      the surplus proceeds, if any, to Pledgor or to whomsoever shall be lawfully
      entitled to receive the same or as a court of competent jurisdiction shall
      direct.

     

    (d)  
Pledgor
      hereby waives and releases any and all rights of equity of redemption whether
      before or after any sale, transfer, or other disposition or application
      contemplated by this Section 9 and, except as herein expressly required, any
      and
      all notice to Pledgor of the foregoing action.

     

    
      
         

      

      
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    10.  
Deficiency.
      If the
      proceeds of sale, collection or other realization of or upon any Relevant
      Collateral are insufficient to cover the costs and expenses of such realization
      and the payment in full of the Obligations owing at such time, Pledgor shall
      remain liable for any such deficiency.

     

    11.  
Release
      of Pledged Collateral.
      The
      Pledged Collateral shall promptly be released from the pledge created by, and
      provisions of this Agreement, and returned to Pledgor in accordance with the
      following provisions:

     

    (a)  
A
      stock
      certificate representing 200,000 Pledged Shares and a Pledged Warrant evidencing
      the right to purchase 8,196,723 shares of Common Stock shall be released
      following the payment by Pledgor of Payment #1; 

     

    (b)  
A
      stock
      certificate representing 400,000 Pledged Shares and a Pledged Warrant evidencing
      the right to purchase 16,393,442 shares of Common Stock shall be released
      following the payment by Pledgor of Payment #2; and

     

    (c)  
A
      stock
      certificate representing 400,000 Pledged Shares and a Pledged Warrant evidencing
      the right to purchase 16,393,442 shares of Common Stock shall be released
      following the payment by Pledgor of (i) Payment #3, (ii) any interest that
      may
      have accrued under the Promissory Note, and (iii) any other outstanding amount
      owed by Pledgor to Pledgee hereunder. 

     

    Upon
      the
      satisfaction in full of the Obligations, this Agreement and the security
      interest created hereby shall terminate and all rights to the Pledged Collateral
      shall revert to Pledgor, and Pledgee will promptly (A) return to Pledgor such
      of
      the Pledged Collateral as shall not have been returned to Pledgor, sold or
      otherwise disposed of or applied pursuant to the terms hereof, and
      (B) execute and deliver to Pledgor such documents as Pledgor shall
      reasonably request to evidence such termination.

     

    12.  
Attorney-in-Fact.
      Without
      limiting any other provision of this Agreement, Pledgee is hereby appointed
      the
      attorney-in-fact of Pledgor for the purpose of carrying out the provisions
      of
      this Agreement and taking any action and executing any instruments which Pledgee
      may deem reasonably necessary or advisable to accomplish the purposes hereof,
      which appointment as attorney-in-fact is irrevocable and coupled with an
      interest. Pledgee shall promptly notify the Pledgor of any action taken by
      Pledgee pursuant to this Section 12; provided,
      however,
      that
      the failure to provide such notice shall in no way impair the rights of Pledgee
      to take any such actions hereunder. Without limiting the generality of the
      foregoing, so long as Pledgee shall be entitled under this Agreement to make
      collections in respect of Pledged Collateral, Pledgee shall have the right
      and
      power to receive, endorse and collect all checks made payable to the order
      of
      the Pledgor representing any dividend, payment, or other distribution in respect
      of the Pledged Collateral or any part thereof and to give full discharge for
      the
      same.

     

    
      
         

      

      
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          -

        
          

        

      

      
         

      

    

     

    13.  
Expenses.
      Each
      party to this Agreement shall pay all of its own expenses incurred in connection
      with this Agreement.

     

    14.  
Notices,
      Etc.
      All
      notices and other communications provided for hereunder shall be delivered
      in
      the manner set forth in Article XV of the Securities Purchase
      Agreement.

     

    15.  
Miscellaneous.

     

    (a)  
No
      amendment of any provision of this Agreement shall be effective unless it is
      in
      writing and signed by the parties hereto, and no waiver of any provision of
      this
      Agreement, and no consent to any departure by Pledgor therefrom, shall be
      effective unless it is in writing and signed by Pledgee, and then such waiver
      or
      consent shall be effective only in the specific instance and for the specific
      purpose for which given.

     

    (b)  
No
      failure on the part of the Pledgee or Pledgee to exercise, and no delay in
      exercising, any right hereunder shall operate as a waiver thereof; nor shall
      any
      single or partial exercise of any such right preclude any other or further
      exercise thereof or the exercise of any other right. The rights and remedies
      of
      Pledgee provided herein are cumulative and are in addition to, and not exclusive
      of, any rights or remedies provided by law.

     

    (c)  
Any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining portions
      hereof or thereof or affecting the validity or enforceability of such provision
      in any other jurisdiction.

     

    (d)  
This
      Agreement may be executed in two counterparts, each executed counterpart
      constituting an original but together only one Agreement.

     

    (e)  
This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York.

     

    (f)  
If
      any
      litigation or other proceeding is commenced in connection with this Agreement,
      the losing party shall pay the expenses of the prevailing party, including
      but
      not limited to reasonable attorney's fees and expenses.

     

    
      
         

      

      
        -
          7
          -

        
          

        

      

      
         

      

       

    

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

    

      
        	 	 
	 	
                PLEDGOR:

              
	 	 
	 	
                LEISURECORP
                  LLC, a Dubai limited liability company

              
	 	 

                

              
	 	
                PLEDGEE:

              
	 	 
	 	
                GPS
                  INDUSTRIES, INC.

              
	 	 
	 	
                By:

              	
                 

                
                  

                

                Robert
                  C. Silzer, Sr., Chief Executive
                  Officer

              

      

    

    

    [SIGNATURE
      PAGE TO PLEDGE AND SECURITY AGREEMENT]

     

    
      
         

      

      
        -
          8
          -

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