Document:

Exhibit 10.2

PLEDGE
AND SECURITY AGREEMENT

 

PLEDGE
AND SECURITY AGREEMENT (this “Agreement”), dated as of February 4, 2020, made by SG Blocks, Inc., a Delaware corporation
with an address at 195 Montague Street, 14th Floor, Brooklyn, New York 11201 (the “Pledgor”), in favor of the noteholders
listed on Schedule A hereto (the “Secured Creditors”).

 

WHEREAS,
each of the Secured Creditors have agreed to make loans to the Pledgor to be evidenced by certain 9% secured notes due 2023 (the
“Notes”) issuable pursuant to the respective Securities Purchase Agreements with the Secured Creditors, dated even
date herewith; and

 

WHEREAS,
in order to induce the Secured Creditors to extend the loans to be evidenced by the Notes, the Pledgor has agreed to execute and
deliver to the Secured Creditors a pledge and security agreement providing for the pledge and grant to the Secured Creditors of
a security interest in the Pledgor’s interest in the collateral identified and defined below.

 

NOW,
THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Secured Creditors to accept
the Notes, the Pledgor hereby agrees with the Secured Creditors as follows:

 

SECTION
1. Definitions. All terms used in this Agreement which are defined in Article 9 of the Uniform Commercial Code (the “Code”)
currently in effect in the State of New York and which are not otherwise defined herein shall have the same meanings herein as
set forth therein.

 

SECTION
2. Pledge and Grant of Security Interest. (a) As collateral security for all of the Obligations (as defined in Section
3 hereof), the Pledgor hereby pledges, assigns and grants to the Secured Creditors a continuing security interest in: (i) the
royalty payable owed to the Pledgor pursuant to the exclusive license agreement executed on October 3, 2019 (the “Pledged
Collateral”) and (i) all proceeds of the foregoing.

 

(b)
 The Pledgor hereby represents and warrants to the Secured Creditors as follows:

 

(i) The
Pledged Collateral is not pledged to secure any indebtedness other than the Notes;

 

(ii) The
execution, delivery, and performance of the Pledgor of this Agreement will not violate any provision of law, any order of any
court or other agency of government, or any agreement or other instrument to which the Pledgor is a party or by which the Pledgor
is bound, or be in conflict with, result in a breach of or constitute (with due notice, lapse of time, or both) a default under
any such agreement or other instrument, or result in the creation or imposition of any lien, charge, or encumbrance of any nature
whatsoever upon any of the property of assets of the Pledgor, except as contemplated by the provisions of this Agreement;

 

(iii) This
Agreement constitutes the legal, valid and binding obligation of the Pledgor and is enforceable against the Pledgor in accordance
with the terms hereof; and

 

(iv) The
Pledgor is the legal and beneficial owner of the Pledged Collateral.

 

    

     

    

 

SECTION
3. Security for Obligations. The security interest created hereby in the Pledged Collateral constitutes continuing collateral
security for all of the following obligations, whether now existing or hereafter incurred (the “Obligations”):

 

(a)
 the prompt payment by the Pledgor, as and when due and payable, of all amounts owing
by it in respect of the Notes; and

 

(b)
 the due performance and observance by the Pledgor of all of its other obligations from
time to time existing under this Agreement.

 

SECTION
4. Covenants as to the Pledged Collateral. So long as any of the Obligations shall remain outstanding, the Pledgor will
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.

 

SECTION
5. Additional Provisions Concerning the Pledged Collateral. The Pledgor hereby authorizes the Secured Creditors to file,
without the signature of the Pledgor where permitted by law, one or more financing or continuation statements, and amendments
thereto, relating to the Pledged Collateral.

 

SECTION
6. Remedies Upon Default. If any Event of Default under the Notes shall have occurred and be continuing:

 

(a)
 The Secured Creditors may, exercise in respect of the Pledged Collateral, in addition
to other rights and remedies provided for herein or otherwise available to them, all of the rights and remedies of a secured party
on default under the Code then in effect in the State of Delaware, and without limiting the generality of the foregoing and without
notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private
sale at such price or prices and on such other terms as the Secured Creditors may deem commercially reasonable. The Pledgor agrees
that, to the extent notice of sale shall be required by law, at least five days’ notice to the Pledgor of the time and place
of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Secured
Creditors shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given. The Secured
Creditors 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.

 

(b)
 All cash proceeds received by the Secured Creditors in respect of any sale of, collection
from, or other realization upon, all or any part of the Pledged Collateral shall be applied by the Secured Creditors against the
Obligations. Any surplus of such cash or cash proceeds held by the Secured Creditors and remaining after payment in full of all
of the Obligations shall be paid over to the Pledgor or to such person as may be lawfully entitled to receive such surplus.

 

(c)
 In the event that the proceeds of any such sale, collection or realization are insufficient
to pay all amounts to which the Secured Creditors are legally entitled, the Pledgor shall remain liable for the deficiency and
the Secured Creditors shall retain all rights to collect on such Obligations provided by applicable law.

 

SECTION
7. Notices, Etc. All notices and other communications provided for hereunder shall be in writing and shall be mailed, faxed
or delivered, if to the Pledgor, to it at the address set forth above; and if to the Secured Creditors to them at the addresses
set forth on Schedule A, or as to any of such parties at such other address as shall be designated by such parties in a
written notice to the other parties hereto complying as to delivery with the terms of this Section 7. All such notices and other
communications shall be effective (i) if mailed, when deposited in the mail, (ii) if faxed, when the facsimile transmission is
acknowledged as received, or (iii) if delivered, upon delivery.

 

    - 2 -

     

    

 

SECTION
8. Miscellaneous.

 

(a)
 No amendment of any provisions of this Agreement shall be effective unless it is in
writing and signed by the Pledgor and the Secured Creditors, and no waiver of any provision of this Agreement, and no consent
to any departure by the Pledgor, shall be effective unless it is in writing and signed by the Secured Creditors, 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 Secured Creditors 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 the Secured Creditors 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 unenforceabilty without invalidating the remaining
portions hereof or thereof or affecting the validity or enforceability of such provision on any other jurisdiction.

 

(d)
 This Agreement shall create a continuing security interest in the Pledged Collateral
and shall (i) remain in full force and effect until the payment in full or release of the Obligations and (ii) be binding on the
Pledgor and its assigns and shall inure, together with all rights and remedies of the Secured Creditors hereunder, to the benefit
of the Secured Creditors and their heirs, transferees and assigns.

 

(e)
 Upon the satisfaction in full of the Obligations: (i) this Agreement and the security
interest created hereby shall terminate and all rights to the Pledged Collateral shall revert to the Pledgor, and (ii) the Secured
Creditors will, upon the Pledgor’s request at the Pledgor’s expense, (A) return to the Pledgor such of the Pledged
Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof and (B) execute and deliver
to the Pledgor such documents as the Pledgor shall reasonably request to evidence such termination.

 

(f)
This Agreement shall be governed by and construed in accordance with the laws of the State of New York, except as required by
mandatory provisions of law and except to the extent that the validity and perfection or the perfection and the effect of perfection
or non-perfection of the security interest created hereby, or remedies hereunder, in respect of any particular Pledged Collateral
are governed by the law of a jurisdiction other than the State of New York. The parties hereto agree that all actions or proceedings
arising in connection with this Agreement shall be tried and litigated exclusively in the State and Federal courts located in
Kings County, New York. The aforementioned choice of venue is intended by the parties to be mandatory and not permissive in nature,
thereby precluding the possibility of litigation between the parties with respect to or arising out of this Agreement in any jurisdiction
other than that specified in this paragraph. Each party hereby waives any right it may have to assert the doctrine of forum non
conveniens or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this paragraph,
and stipulates that the State and Federal courts located in New York shall have in personam jurisdiction and venue over each of
them for the purpose of litigating any dispute, controversy, or proceeding arising out of or related to this Agreement. Each party
hereby authorizes and accepts service of process sufficient for personal jurisdiction in any action against it as contemplated
by this paragraph by registered or certified mail, return receipt requested, postage prepaid, to its address for the giving of
notices as set forth in this Agreement. Any final judgment rendered against a party in any action or proceeding shall be conclusive
as to the subject of such final judgment and may be enforced in other jurisdictions in any manner provided by law.

 

    - 3 -

     

    

 

IN
WITNESS WHEREOF, the Pledgor has caused this Agreement to be executed and delivered as of the date first above written.

 

	 	SG BLOCKS, INC.
	 	 	 	 
	 	By:	        
	 	 	Name:  	Paul M. Galvin
	 	 	Title: 	Chairman and CEO

 

    - 4 -

     

    

 

SCHEDULE
A

 

Secured
Creditors

 

 

 

 

 

 

 

 

 

 

- 5 -sph-ex101_156.htm

Exhibit 10.1

SIXTH AMENDMENT 

TO

PENSION PLAN FOR ELIGIBLE EMPLOYEES OF

SUBURBAN PROPANE L.P. AND SUBSIDIARIES

(as Amended and Restated Effective January 1, 2013)

 

 

In accordance with the authorization of Article XI of the Pension Plan for Eligible  Employees of Suburban Propane L.P. and Subsidiaries, said Plan is amended, as set forth herein, for purposes of good faith compliance with the 2017 Required Amendments List and the final hybrid plan regulations, including transitional guidance issued by the Internal Revenue Service.  Any applicable effective dates are incorporated by reference.

FIRST:  Section 1.38 is amended to add the following:

 

For periods after the termination of the Plan, the Periodic Interest Rate shall be equal to the average of the Periodic Interest Rates used under the Plan during the 5-year period ending on the date of the Plan termination. A Periodic Interest Rate that is a variable rate may be rounded to the nearest multiple of 25 basis points, or less, for annual interest crediting periods; for interest crediting periods less frequent than annual, the rounding interval must not exceed a pro-rata portion of 25 basis points. However, the rounding interval may be 1 basis point regardless of the length of the interest crediting period.  For Plan Years beginning on or after January 1, 2012, if the Periodic Interest Rate was less than zero for the prior Plan Year, the Interest Crediting Rate may be assumed to be zero for the current Plan Year and all future Plan Years for the purpose of the accrued benefit requirements under Code Section 411(b)(1)(B).

 

SECOND:  The following is added at the end of Section 5.06:

 

Increases to a Participant's Accrued Benefit required under Code Section 411(b) due to commencement after Normal Retirement Age shall be reflected in the Account as additional interest credits.

 

THIRD:  The following new Section 11.07 is added to Article XI:

 

11.07  Amendment of Periodic Interest Rate:   In the case of an amendment to change the  Periodic Interest Rate from one rate (the “old rate”) to another rate, both of which satisfy the requirements of Regulation § 1.411(b)(5)-1(d), the Periodic Interest Rate will not be deemed to be in excess of market rate of return merely because the Plan provides that the benefit of any Participant who is benefiting under the Plan as of the applicable amendment date will never be less than had the old rate continued, without regard to any additional cash balance credits to the Participant’s account after the applicable amendment date.  In the case of an amendment to replace the Periodic Interest Rate that does not satisfy the requirements of Regulation §1.411(b)(5)-1(d) with rate that does satisfy those requirements, such new rate may be applied to amounts accrued prior to the effective date of the amendment, in accordance with the provisions of Regulation §1.411(b)(5)-1(e )(3)(vi) without violating Code Section 411(d)(6).  An amendment changing the look-back month or stability period used to determine the Periodic 

 

 

Interest Rate shall not be treated as reducing Accrued Benefits in violation of Code Section 411(d)(6) merely on account of such amendment provided that (a) if the amendment is effective on or after the adoption date, any interest credited for the one-year period commencing on the date the amendment is effective shall be determined using the pre-amendment look-back month and stability period, if that would result in a greater interest credit, and (b) if  the amendment is adopted with retroactive effect,  the look-back month and stability period will be determined based on the lookback month and stability period that results in the greater interest credits for the period beginning with the effective date and ending one year after the adoption date.

 

FOURTH:In all other respects, the Plan is ratified and approved. 

 

 

Intending to be legally bound by the provisions of this Amendment to the Plan, as set forth herein, the duly authorized Members of the Benefits Administration Committee have signed it this 20th day of December, 2019.

 

	
 
	
Daniel S. Bloomstein

	
 
	
 

	
 
	
 

	
 
	
Steven C. Boyd

	
 
	
 

	
 
	
 

	
 
	
A. Davin D’Ambrosio

	
 
	
 

	
 
	
 

	
 
	
Michael A. Kuglin

	
 
	
 

	
 
	
 

	
 
	
Sandra N. Zwickel

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