Document:

Pledge Agreement

 Exhibit 10.4 
  
 PLEDGE AGREEMENT 
  
 THIS PLEDGE AGREEMENT, dated as of September 19, 2005 (as amended, supplemented or modified from time to time, this “Pledge
Agreement”) is made by FOUNTAIN POWERBOAT INDUSTRIES, INC., a Nevada corporation with its principal office at 1653 Whichard’s Beach Road, Washington, North Carolina 27889 (the “Pledgor”), in favor of REGIONS
BANK, an Alabama chartered bank with offices in Charlotte, North Carolina (the “Bank”). Except as otherwise provided herein, capitalized terms used herein without definition shall have the meanings given to them in the Loan
Agreement referred to below. 
  
 BACKGROUND STATEMENT

  
 A. The Borrower, the Parent and the Bank are parties to a
Loan Agreement, dated as of even date herewith (as amended, modified or supplemented from time to time, the “Loan Agreement”), providing for the availability of a $16,500,000 term loan facility (the “Loan”) to the
Borrower upon the terms and conditions set forth therein. 
  
 B.
As a condition to making the Loan to the Borrower, the Parent has guaranteed to the Bank the payment in full of the Obligations under the Loan Agreement and the other Loan Documents. 
  
 C. It is a further condition to the making of the Loan to the Borrower that the Pledgor shall have agreed, by executing and
delivering this Agreement, to secure the payment in full of their respective obligations under the Loan Agreement and the other Loan Documents. The Bank is relying on this Agreement in their decision to extend credit to the Borrower under the Loan
Agreement, and would not enter into the Loan Agreement without the execution and delivery of this Agreement by the Pledgor. 
  
 D. The Pledgor will obtain benefits as a result of the making of the Loan to the Borrower, which benefits are hereby acknowledged, and, accordingly,
desire to execute and deliver this Agreement. 
  
 STATEMENT OF
AGREEMENT 
  
 NOW, THEREFORE, in consideration of the
foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Pledgor and the Bank, for themselves, their successors and assigns, hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1 Defined Terms. In addition to the terms defined elsewhere in this Pledge Agreement, the following terms shall have the meanings set forth
below: 
  
 “Pledged Collateral” means (i) the
shares of Capital Stock described on Schedule I hereto (the “Pledged Shares”), and all dividends, distributions, cash, instruments and other property and proceeds from time to time received, receivable or otherwise made upon
or 

 
distributed in respect of or in exchange for any or all of the Pledged Shares; (ii) all additional shares of Capital Stock of any issuer of the Pledged
Shares from time to time acquired by any Pledgor in any manner, and the certificates representing such additional shares, and all dividends, distributions, cash, instruments and other property from time to time received, receivable or otherwise made
upon or distributed in respect of or in exchange for any or all of such shares; and (iii) to the extent not otherwise excluded in the foregoing, all cash and non-cash proceeds thereof. Notwithstanding the foregoing, “Pledged Collateral”
shall not include the Parent’s treasury stock. 
  
 1.2 UCC
Terms. Unless otherwise defined herein, or unless the context otherwise requires, all terms used herein which are defined in the North Carolina Uniform Commercial Code (the “UCC”) shall have the meanings therein stated.

  
 1.3 Capitalized Terms. All capitalized terms not
defined herein shall have the meanings given to them in the Loan Agreement. 
  
 ARTICLE II 
  
 CREATION
OF SECURITY INTEREST 
  
 2.1 Pledge and Grant of Security
Interest. The Pledgor hereby pledges, assigns and delivers to the Bank and grants to the Bank a Lien upon and security interest in all of its right, title and interest in and to the Pledged Collateral. 
  
 2.2 Security for Secured Obligations. This Agreement and the Pledged
Collateral secure the full and prompt payment, at any time and from time to time as and when due (whether at the stated maturity, by acceleration or otherwise), of all liabilities and obligations of the Borrower and the Pledgor, whether now existing
or hereafter incurred, created or arising and whether direct or indirect, absolute or contingent, due or to become due, under, arising out of or in connection with the Loan Agreement, this Agreement, or any of the other Loan Documents to which it is
or hereafter becomes a party, or any Hedge Agreement required or permitted under the Loan Agreement and to which the Borrower and the Bank are parties, including, without limitation, (i) in the case of the Borrower, all obligations, including,
without limitation, all principal of and interest on the Loan, all fees, expenses, indemnities and other amounts payable by the Borrower under the Loan Agreement or any other Loan Document (including interest accruing after the filing of a petition
or commencement of a case by or with respect to the Borrower seeking relief under any applicable federal and state laws pertaining to bankruptcy, reorganization, arrangement, moratorium, readjustment of debts, dissolution, liquidation or other
debtor relief, specifically including, without limitation, the Bankruptcy Code and any fraudulent transfer and fraudulent conveyance laws, whether or not the claim for such interest is allowed in such proceeding), and all obligations of the Borrower
to the Bank under any Hedge Agreement required or permitted under the Loan Agreement and to which the Borrower and the Bank are parties, and (ii) in the case of the Pledgor, all of its liabilities and obligations under the Guaranty; and in each case
under (i) and (ii) above, (a) all such liabilities and obligations that, but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, would become due, and (b) all fees, costs and expenses payable by the Pledgor under
Section 7.1 (the liabilities 

  

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and obligations of the Pledgor described in this Section 2.2, collectively, the “Secured Obligations”). 
  
 2.3 Security Interests Absolute. All rights of the Bank and security
interests hereunder, and all obligations of the Pledgor hereunder, shall be absolute and unconditional and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 
  
 (i) any extension, renewal, settlement, compromise or waiver
in respect of any Secured Obligation, the Note or any other document evidencing or securing such Secured Obligation, by operation of law or otherwise; 
  
 (ii) any modification or amendment or supplement to the Loan Agreement, the Note or any other document evidencing or securing any Secured
Obligation; 
  
 (iii) any non-perfection or
invalidity of any direct or indirect security for any Secured Obligation; 
  
 (iv) any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Borrower or its assets or any resulting disallowance, release or discharge of all or any portion of the Secured Obligations;

  
 (v) the existence of any claim, set-off or
other right which the Pledgor may have at any time against the Borrower, the Bank or any other corporation or person, whether in connection herewith or any unrelated transactions; provided, that nothing herein shall prevent the assertion of
any such claim by separate suit or compulsory counterclaim; 
  
 (vi) any invalidity or unenforceability relating to or against the Borrower or the Pledgor for any reason of any Secured Obligation, or any provision of applicable law or regulation purporting to prohibit the payment
by the Borrower or the Pledgor of the Secured Obligations; 
  
 (vii) any failure by the Bank (A) to file or enforce a claim against the Borrower or the Pledgor (in a bankruptcy or other proceeding), (b) to give notice of the existence, creation or incurring by the Borrower of any
new or additional indebtedness or obligation under or with respect to the Secured Obligations, (c) to commence any action against the Borrower or the Pledgor, (d) to disclose to the Pledgor any facts which the Bank may now or hereafter know with
regard to the Borrower or (e) to proceed with due diligence in the collection, protection or realization upon any collateral securing the Secured Obligations; or 
  
 (viii) any other act or omission to act or delay of any kind by the Borrower, the Pledgor or the Bank or any
other corporation or person or any other circumstance whatsoever which might, but for the provisions of this clause, constitute a legal or equitable discharge of the Pledgor’s obligations hereunder. 
  

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 ARTICLE III

  
 REPRESENTATIONS AND WARRANTIES 
  
 The Pledgor represents and warrants as follows: 
  
 3.1 Ownership of Pledged Collateral. The Pledgor owns, or has valid
rights as a lessee or licensee with respect to, all Pledged Collateral purported to be pledged by it hereunder, free and clear of any Liens except for the Liens granted to the Bank pursuant to the Security Documents, and except for other Permitted
Liens. 
  
 3.2 Pledged Shares. All Pledged Shares have been
duly authorized and validly issued, and are fully paid and non-assessable, and are subject to no options to purchase or similar rights of any Person. The Pledgor will not become a party to or otherwise bound by any agreement, other than this Pledge
Agreement, which restricts in any manner the rights of any present or future holder of any of the Pledged Shares with respect thereto. 
  
 3.4 Validity, Perfection and Priority of Security Interests. Upon delivery of all certificates or instruments representing or evidencing the
Pledged Collateral to the Bank, the Bank will have a valid and perfected security interest in the Pledged Collateral subject to no prior Lien. No registration, recordation or filing with any governmental body agency or official is required in
connection with the execution or delivery of this Pledge Agreement, or necessary for the validity or enforceability hereof or for the perfection of the security interests of the Bank granted hereby. The Pledgor has not performed any acts which might
prevent the Bank from enforcing any of the terms and conditions of this Pledge Agreement or which would limit the Bank in any such enforcement. 
  
 3.5 Authorization; Consent. The execution, delivery and performance by the Pledgor of this Pledge Agreement require no action by or in respect of,
or filing with, any Governmental Authority and do not contravene, or constitute (with or without the giving of notice or lapse of time or both) a default under, any provision of applicable law or of any agreement, judgment, injunction, order, decree
or other instrument binding upon or affecting the Pledgor. 
  
 3.6
No Restrictions. There are no statutory or regulatory restrictions, prohibitions or limitations on the Pledgor’s ability to grant to the Bank a Lien upon and security interest in the Pledged Collateral pursuant to this Agreement or
(except for the provisions of the federal Anti-Assignment Act and Anti-Claims Act, as amended) on the exercise by the Bank of its rights and remedies hereunder (including any foreclosure upon or collection of the Pledged Collateral), and there are
no contractual restrictions on the Pledgor’s ability so to grant such Lien and security interest. 
  
 3.7 Capital Stock. As of the date hereof, the Capital Stock required to be pledged hereunder by the Pledgor consists of the number and type of
shares of Capital Stock as identified on Schedule I for the Pledgor. All of the Capital Stock has been duly and validly issued and is fully paid and nonassessable and not subject to any preemptive rights, warrants, options or similar rights
or restrictions in favor of third parties or any contractual or other restrictions upon transfer. As to each issuer thereof, the Capital Stock pledged hereunder constitutes 100% of the outstanding capital stock or other equity interest in such
issuer, except as set forth on Schedule I. 
  

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 ARTICLE IV 

 
 COVENANTS 
  
 The Pledgor agrees that so long as any Secured Obligation remains unpaid:

  
 4.1 Liens on Pledged Collateral. The Pledgor will not
sell or otherwise dispose of, or grant any option with respect to, any of the Pledged Collateral or create or suffer to exist any Lien (other than security interests in favor of the Bank) on any Pledged Collateral. The Pledgor agrees that he will
cause each issuer of the Pledged Shares not to issue any stock or other securities in addition to or in substitution for the Pledged Shares issued by such issuer, except to the Pledgor and the Pledgor will pledge hereunder, immediately upon his
acquisition (directly or indirectly) thereof, any and all additional shares of stock or other securities of each issuer of the Pledged Shares. 
  
 4.2 Delivery of Pledged Collateral. All certificates or instruments representing or evidencing the Pledged Collateral shall be delivered to and
held by or on behalf of the Bank pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, with signatures appropriately guaranteed, and
accompanied in each case by any required transfer tax stamps, all in form and substance satisfactory to the Bank. 
  
 4.3 Change in Law. The Pledgor will promptly notify the Bank in writing of any change in law known to him (and will use his best efforts to become
aware of any such change in law) which (i) adversely affects or will adversely affect the validity, perfection or priority of the security interests or (ii) requires or will require a change in the procedures to be followed in order to maintain and
protect the validity, perfection and priority of the security interests. 
  
 4.4 Protection of Security Interest; Further Assurances. The Pledgor will, at his expense and in such manner and form as the Bank may require, execute, deliver, file and record any financing statement, specific
assignment or other paper and take any other action that may be necessary or desirable, or that the Bank may request, in order to create, preserve, perfect or validate the security interests granted hereby or to enable the Bank to exercise and
enforce its rights hereunder with respect to any of the Pledged Collateral. To the extent permitted by applicable law, the Pledgor hereby authorizes the Bank to execute and file, in its name, a Uniform Commercial Code financing statement which the
Bank in its sole discretion may deem necessary or appropriate to further perfect the security interests. 
  

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 ARTICLE V 

 
 CERTAIN PROVISIONS RELATING TO PLEDGED COLLATERAL 
  
 5.1 Ownership. Except to the extent otherwise expressly permitted by
or pursuant to the Loan Agreement, the Pledgor will cause the Capital Stock pledged by it hereunder to constitute at all times 100% of the Capital Stock in each issuer held by the Pledgor. 
  
 5.2 Right to Receive Distributions on Pledged Collateral; Voting.

  
 (a) So long as no Event of Default shall have occurred and be
continuing: 
  
 (i) The Pledgor shall be entitled
to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral or any part thereof for any purpose not inconsistent with the terms of this Pledge Agreement or the Loan Agreement. 
  
 (ii) The Pledgor shall be entitled to receive and retain any
and all dividends, interest and other payments and distributions made upon or with respect to the Pledged Collateral, provided, however, that any and all 
  
 (A) dividends and interest paid or payable other than in cash in respect of, and instruments and other
property received, receivable or otherwise distributed in respect of, or in exchange for, any Pledged Collateral, 
  
 (B) dividends and other distributions paid or payable in cash in respect of any Pledged Collateral in connection with a partial or total
liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus, and 
  
 (C) cash paid, payable or otherwise distributed in respect of principal of, in redemption of, or in exchange for, any Pledged Collateral,

  
 shall be, and shall be forthwith delivered to the Bank to
hold as, Pledged Collateral and shall, if received by the Pledgor, be received in trust for the benefit of the Bank, be segregated from the other property or funds of the Pledgor and be forthwith delivered to the Bank as Pledged Collateral in the
same form as so received (with any necessary endorsement). 
  
 (iii) The Bank shall execute and deliver (or cause to be executed and delivered) to the Pledgor all such proxies, powers of attorney, consents, ratifications and waivers and other instruments as the Pledgor may
reasonably request for the purpose of enabling each the Pledgor to exercise the voting and other rights which he is entitled to exercise pursuant to paragraph (i) above and to receive the dividends or interest payments which he is authorized to
receive and retain pursuant to paragraph (ii) above. 
  

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 (b) Upon the occurrence and during the continuance of an Event of Default: 
  
 (i) All rights of the Pledgor to receive the dividends and
interest payments which he would otherwise be authorized to receive and retain pursuant to Section 5.2(a)(ii) shall cease, and all such rights shall thereupon become vested in the Bank which shall thereupon have the sole right to receive and
hold as Pledged Collateral such dividends and interest payments. 
  
 (ii) All dividends and interest payments which are received by the Pledgor contrary to the provisions of paragraph (i) of this Section 5.2(b) shall be received in trust for the benefit of the Bank, shall be
segregated from other funds of the Pledgor and shall be forthwith paid over to the Bank as Pledged Collateral in the same form as so received (with any necessary endorsement). 
  
 (c) Upon the occurrence and during the continuance of an Event of Default and upon notice by the Bank to the Pledgor, all
rights of the Pledgor to exercise the voting and other consensual rights which he would otherwise be entitled to exercise pursuant to Section 5.2(a)(i) shall cease, and all such rights shall thereupon become vested in the Bank which shall
thereupon have the sole right to exercise such voting and other consensual rights. 
  
 ARTICLE VI 
  
 GENERAL
AUTHORITY; REMEDIES 
  
 6.1 General Authority. The
Pledgor hereby irrevocably appoints the Bank and any officer or agent thereof, with full power of substitution, as his true and lawful attorney-in-fact, in the name of the Pledgor or its own name, for the sole use and benefit of the Bank, but at the
Pledgor’s expense, at any time during the occurrence and continuance of an Event of Default, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to carry out the terms
of this Pledge Agreement and, without limiting the foregoing, the Pledgor hereby gives the Bank the power and right on its behalf, without notice to or further assent by the Pledgor to do the following: 
  
 (i) to receive, take, endorse, assign and deliver any and
all checks, notes, drafts, acceptances, documents and other negotiable and nonnegotiable instruments taken or received by the Pledgor as, or in connection with, the Pledged Collateral; 
  
 (ii) to demand, sue for, collect, receive and give acquittance for any and all monies due or to become due
upon or in connection with the Pledged Collateral; 
  
 (iii) to commence, settle, compromise, compound, prosecute, defend or adjust any claim, suit, action or proceeding with respect to, or in connection with, the Pledged Collateral; 
  
 (iv) to sell, transfer, assign or otherwise deal in or with
the Pledged Collateral or any part thereof, as fully and effectually as if the Bank were the absolute owner thereof; and 
  

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 (v) to do, at its option, but at the expense of the Pledgor, at any time or from time to
time, all acts and things which the Bank deems necessary to protect or preserve the Pledged Collateral and to realize upon the Pledged Collateral. 
  
 6.2 Rights and Remedies. If an Event of Default shall have occurred and be continuing, the Bank shall be entitled to exercise in a commercially
reasonable manner in respect of the Pledged Collateral all of its rights, powers and remedies provided for herein or otherwise available to it under any other Loan Document, by law, in equity or otherwise, including all rights and remedies of a
secured party under the UCC, and shall be entitled in particular, but without limitation of the foregoing, to exercise the following rights, which the Pledgor agrees to be commercially reasonable: 
  
 (a) Without notice to the Pledgor, to cause any or all of the Pledged Shares
or other Pledged Collateral to be transferred of record into the name of the Bank or its nominee; 
  
 (b) To exercise (i) all voting, consensual and other rights and powers pertaining to the Capital Stock (whether or not transferred into the name of the
Bank), at any meeting of shareholders, partners, members or otherwise, and (ii) any and all rights of conversion, exchange, subscription and any other rights, privileges or options pertaining to the Capital Stock as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion any and all of the Capital Stock upon the merger, consolidation, reorganization, reclassification, combination of shares or interests, similar rearrangement or other
similar fundamental change in the structure of the applicable issuer, or upon the exercise by the Pledgor or the Bank of any right, privilege or option pertaining to such Capital Stock), and in connection therewith, the right to deposit and deliver
any and all of the Capital Stock with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Bank may determine, and give all consents, waivers and ratifications in respect of the
Capital Stock, all without liability except to account for any property actually received by it, but the Bank shall have no duty to exercise any such right, privilege or option or give any such consent, waiver or ratification and shall not be
responsible for any failure to do so or delay in so doing; and for the foregoing purposes the Pledgor will promptly execute and deliver or cause to be executed and delivered to the Bank, upon request, all such proxies and other instruments as the
Bank may request to enable the Bank to exercise such rights and powers; AND IN FURTHERANCE OF THE FOREGOING AND WITHOUT LIMITATION THEREOF, EACH PLEDGOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE ADMINISTRATIVE AGENT AS THE TRUE AND LAWFUL
PROXY AND ATTORNEY-IN-FACT OF SUCH PLEDGOR, WITH FULL POWER OF SUBSTITUTION IN THE PREMISES, TO EXERCISE ALL SUCH VOTING, CONSENSUAL AND OTHER RIGHTS AND POWERS TO WHICH ANY HOLDER OF ANY INVESTMENTS WOULD BE ENTITLED BY VIRTUE OF HOLDING THE SAME,
WHICH PROXY AND POWER OF ATTORNEY, BEING COUPLED WITH AN INTEREST, IS IRREVOCABLE AND SHALL BE EFFECTIVE FOR SO LONG AS THIS AGREEMENT SHALL BE IN EFFECT; and 
  

(c) To sell, resell, assign and deliver, in its sole discretion, in accordance with the UCC, all or any of the Pledged Collateral, in one or more
parcels, on any securities exchange on which any Capital Stock may be listed, at public or private sale, at any of the Bank’s offices or elsewhere, for cash, upon credit or for future delivery, at such time or times and at such price or 

  

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prices and upon such other terms as the Bank may deem satisfactory. If any of the Pledged Collateral is sold by the Bank upon credit or for future delivery,
the Bank shall not be liable for the failure of the purchaser to purchase or pay for the same and, in the event of any such failure, the Bank may resell such Pledged Collateral. In no event shall the Pledgor be credited with any part of the Proceeds
of sale of any Pledged Collateral until and to the extent cash payment in respect thereof has actually been received by the Bank. Each purchaser at any such sale shall hold the property sold absolutely, free from any claim or right of whatsoever
kind, including any equity or right of redemption of the Pledgor, and the Pledgor hereby expressly waives all rights of redemption, stay or appraisal, and all rights to require the Bank to marshal any assets in favor of the Pledgor or any other
party or against or in payment of any or all of the Secured Obligations, that it has or may have under any rule of law or statute now existing or hereafter adopted. No demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law, as referred to below), all of which are hereby expressly waived by the Pledgor, shall be required in connection with any sale or other disposition of any part of the Pledged Collateral. If any notice of a proposed sale or
other disposition of any part of the Pledged Collateral shall be required under applicable law, the Bank shall give the Pledgor at least ten (10) days’ prior notice of the time and place of any public sale and of the time after which any
private sale or other disposition is to be made, which notice the Pledgor agrees is commercially reasonable. The Bank shall not be obligated to make any sale of Pledged Collateral if it shall determine not to do so, regardless of the fact that
notice of sale may have been given. The Bank may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without
further notice, be made at the time and place to which the same was so adjourned. Upon each public sale and, to the extent permitted by applicable law, upon each private sale, the Bank may purchase all or any of the Pledged Collateral being sold,
free from any equity, right of redemption or other claim or demand, and may make payment therefor by endorsement and application (without recourse) of the Secured Obligations in lieu of cash as a credit on account of the purchase price for such
Pledged Collateral. 
  
 6.3 Application of Proceeds.

  
 (a) All Proceeds collected by the Bank upon any sale, other
disposition of or realization upon any of the Pledged Collateral, together with all other moneys received by the Bank hereunder, shall be applied as follows: 
  

(i) first, to payment of the expenses of such sale or other realization, including reasonable compensation to the Bank and its agents
and counsel, and all expenses, liabilities and advances incurred or made by the Bank, its agents and counsel in connection therewith or in connection with the care, safekeeping or otherwise of any or all of the Pledged Collateral, and any other
unreimbursed expenses for which the Bank is to be reimbursed pursuant to Section 7.1; 
  
 (ii) second, after payment in full of the amounts specified in clause (i) above, to payment of the Secured Obligations; and

  
 (iii) finally, after payment in full of the
amounts specified in clauses (i) and (ii) above, any surplus then remaining shall be paid to the Pledgor, or its successors or 

  

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assigns, or to whomsoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct. 
  
 (b) The Pledgor shall remain liable to the extent of any deficiency between
the amount of all Proceeds realized upon sale or other disposition of the Pledged Collateral pursuant to this Agreement. Upon any sale of any Pledged Collateral hereunder by the Bank (whether by virtue of the power of sale herein granted, pursuant
to judicial proceeding, or otherwise), the receipt of the Bank or the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Pledged Collateral so sold, and such purchaser or purchasers shall not be obligated
to see to the application of any part of the purchase money paid over to the Bank or such officer or be answerable in any way for the misapplication thereof. 
  
 6.4 Registration; Private Sales. 
  
 (a) If, at any time after the occurrence and during the continuance of an Event of Default, the Pledgor shall have received from the Bank a written
request or requests that the Pledgor cause any registration, qualification or compliance under any federal or state securities law or laws to be effected with respect to all or any part of the Capital Stock, the Pledgor will, as soon as practicable
and at its expense, use its best efforts to cause such registration to be effected and be kept effective and will use its best efforts to cause such qualification and compliance to be effected and be kept effective as may be so requested and as
would permit or facilitate the sale and distribution of such Capital Stock, including, without limitation, registration under the Securities Act of 1933, as amended (the “Securities Act”), appropriate qualifications under applicable
blue sky or other state securities laws and appropriate compliance with any other applicable requirements of Governmental Authorities; provided, that the Bank shall furnish to the Pledgor such information regarding the Bank as the Pledgor may
reasonably request in writing and as shall be required in connection with any such registration, qualification or compliance. The Pledgor will cause the Bank to be kept advised in writing as to the progress of each such registration, qualification
or compliance and as to the completion thereof, will furnish to the Bank such number of prospectuses, offering circulars or other documents incident thereto as the Bank from time to time may request, and will indemnify the Bank and all others
participating in the distribution of such Capital Stock against all claims, losses, damages and liabilities caused by any untrue statement (or alleged untrue statement) of a material fact contained therein (or in any related registration statement,
notification or the like) or by any omission (or alleged omission) to state therein (or in any related registration statement, notification or the like) a material fact required to be stated therein or necessary to make the statements therein not
misleading, except insofar as the same may have been caused by an untrue statement or omission based upon information furnished in writing to the Pledgor by the Bank expressly for use therein. 
  
 (b) The Pledgor recognizes that, by reason of certain prohibitions contained
in the Securities Act and applicable state securities laws as in effect from time to time, the Bank may be compelled, with respect to any sale of all or any part of the Capital Stock conducted without registration or qualification under the
Securities Act and such state securities laws, to limit purchasers to any one or more Persons who will represent and agree, among other things, to acquire such Capital Stock for their own account, for investment and not with a view to the
distribution or resale thereof. The Pledgor acknowledges that any such private sales may be 

  

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made in such manner and under such circumstances as the Bank may deem necessary or advisable in its sole and absolute discretion, including at prices and on
terms less favorable than those obtainable through a public sale without such restrictions (including, without limitation, a public offering made pursuant to a registration statement under the Securities Act), and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner and agrees that the Bank shall have no obligation to conduct any public sales and no obligation to delay the sale of any Capital
Stock for the period of time necessary to permit its registration for public sale under the Securities Act and applicable state securities laws, and shall not have any responsibility or liability as a result of its election so not to conduct any
such public sales or delay the sale of any Capital Stock, notwithstanding the possibility that a substantially higher price might be realized if the sale were deferred until after such registration. The Pledgor hereby waives any claims against the
Bank arising by reason of the fact that the price at which any Capital Stock may have been sold at any private sale was less than the price that might have been obtained at a public sale or was less than the aggregate amount of the Secured
Obligations, even if the Bank accepts the first offer received and does not offer such Capital Stock to more than one offeree. 
  
 (c) The Pledgor agrees that a breach of any of the covenants contained in this Section 6.4 will cause irreparable injury to the Bank and the other
Secured Parties, that the Bank and the other Secured Parties have no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section 6.4 shall be specifically enforceable against
the Pledgor. 
  
 6.5 Collateral Accounts. Upon the
occurrence and during the continuance of an Event of Default, the Bank shall have the right to cause to be established and maintained, at its principal office or such other location or locations as it may establish from time to time in its
discretion, one or more accounts (collectively, “Collateral Accounts”) for the collection of cash Proceeds of the Pledged Collateral. Such Proceeds, when deposited, shall continue to constitute Pledged Collateral for the Secured
Obligations and shall not constitute payment thereof until applied as herein provided. The Bank shall have sole dominion and control over all funds deposited in any Collateral Account, and such funds may be withdrawn therefrom only by the Bank. Upon
the occurrence and during the continuance of an Event of Default, the Bank shall have the right to apply amounts held in the Collateral Accounts in payment of the Secured Obligations in the manner provided for in Section 6.3. 
  
 6.6 Waivers. The Pledgor, to the greatest extent not prohibited by
applicable law, hereby (i) agrees that it will not invoke, claim or assert the benefit of any rule of law or statute now or hereafter in effect, or take or omit to take any other action, that would or could reasonably be expected to have the effect
of delaying, impeding or preventing the exercise of any rights and remedies in respect of the Pledged Collateral, the absolute sale of any of the Pledged Collateral or the possession thereof by any purchaser at any sale thereof, and waives the
benefit of all such laws and further agrees that it will not hinder, delay or impede the execution of any power granted hereunder to the Bank, but that it will permit the execution of every such power as though no such laws were in effect, (ii)
waives all rights that it has or may have under any rule of law or statute now existing or hereafter adopted to require the Bank to marshal any Pledged Collateral or other assets in favor of the Pledgor or any other party or against or in payment of
any or all of the Secured Obligations, and (iii) waives all rights that it has or may have under any 

  

 11 

 
rule of law or statute now existing or hereafter adopted to demand, presentment, protest, advertisement or notice of any kind (except notices expressly
provided for herein). 
  
 ARTICLE VII 
  
 MISCELLANEOUS 
  
 7.1 Indemnity and Expenses. The Pledgor agrees: 
  
 (a) To indemnify and hold harmless the Bank and each of its respective
directors, officers, employees, agents and affiliates from and against any and all claims, damages, demands, losses, obligations, judgments and liabilities (including, without limitation, reasonable attorneys’ fees and expenses) in any way
arising out of or in connection with this Pledge Agreement and the transactions contemplated hereby, except to the extent the same shall arise as a result of the gross negligence or willful misconduct of the party seeking to be indemnified; and

  
 (b) To pay and reimburse the Bank upon demand for all
reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) that the Bank may incur in connection with (i) the custody, use or preservation of, or the sale of, collection from or other realization
upon, any of the Pledged Collateral, including the reasonable expenses of re-taking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on the Pledged Collateral, (ii) the exercise or enforcement of any rights or
remedies granted hereunder (including, without limitation, under Article VI), under any of the other Loan Documents or otherwise available to it (whether at law, in equity or otherwise), or (iii) the failure by the Pledgor to perform or
observe any of the provisions hereof. The provisions of this Section 7.1 shall survive the execution and delivery of this Pledge Agreement, the repayment of any of the Secured Obligations, the termination of the commitments under the Loan
Agreement and the termination of this Pledge Agreement or any other Loan Document. 
  
 7.2 No Waiver. The Bank’s failure at any time or times hereafter to require strict performance by the Pledgor of any of the provisions of this Pledge Agreement shall not waive, affect or diminish any right
of the Bank at any time or times hereafter to demand strict performance therewith and with respect to any other provision of this Pledge Agreement, and any waiver of any Event of Default shall not waive or affect any other Event of Default, whether
prior or subsequent thereto, and whether of the same or a different type. None of the provisions of this Pledge Agreement shall be deemed to have been waived by any act or knowledge of the Bank, its agents, officers or employees except by an
instrument in writing signed by an officer of the Bank and directed to the Pledgor specifying such waiver. 
  
 7.3 Binding Effect. This Pledge Agreement and all other instruments and documents executed and delivered pursuant hereto or in connection herewith
shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. 
  
 7.4 Governing Law. This Agreement shall be construed and interpreted in accordance with the internal laws and judicial decisions of the State of
North Carolina without giving effect to the conflict of laws principles thereof, except to the extent that matters of perfection and validity of the security interests hereunder, or remedies hereunder, are governed by the laws of a jurisdiction
other than the State of North Carolina. 
  

 12 

 7.5 Survival of Agreement. All representations and warranties of the Pledgor and all obligations
of the Pledgor contained herein shall survive the execution and delivery of this Pledge Agreement. 
  
 7.6 Continuing Security Interest; Term; Successors and Assigns; Assignment; Termination and Release; Survival. This Agreement shall create a
continuing security interest in the Pledged Collateral and shall secure the payment and performance of all of the Secured Obligations as the same may arise and be outstanding at any time and from time to time from and after the date hereof, and
shall (i) remain in full force and effect until the Maturity Date or when all of the Secured Obligations have been paid and finally discharged in full (the “Termination Requirements”), (ii) be binding upon and enforceable against
the Pledgor and its successors and assigns (provided, however, that the Pledgor may not sell, assign or transfer any of its rights, interests, duties or obligations hereunder without the prior written consent of the Bank) and (iii)
inure to the benefit of and be enforceable by the Bank and its successors and assigns. Upon any sale or other disposition by the Pledgor of any Pledged Collateral in a transaction expressly permitted hereunder or under or pursuant to the Loan
Agreement or any other applicable Loan Document, the Lien and security interest created by this Agreement in and upon such Pledged Collateral shall be automatically released, and upon the satisfaction of all of the Termination Requirements, this
Agreement and the Lien and security interest created hereby shall terminate; and in connection with any such release or termination, the Bank, at the request and expense of the Pledgor, will execute and deliver to the Pledgor such documents and
instruments evidencing such release or termination as the Pledgor may reasonably request and will assign, transfer and deliver to the Pledgor, without recourse and without representation or warranty, such of the Pledged Collateral as may then be in
the possession of the Bank (or, in the case of any partial release of Pledged Collateral, such of the Pledged Collateral so being released as may be in its possession). 
  
 7.7 Notice. Except as otherwise provided herein, notice to the Pledgor or to the Bank shall be given or delivered in
the manner set forth in Section 10.05 of the Loan Agreement. 
  
 7.8 Severability. To the extent any provision of this Pledge Agreement is prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Pledge Agreement. 
  
 7.9 Captions. The captions to the sections of this Pledge Agreement have been inserted for convenience only and shall not limit or modify any of the terms hereof. 
  
 7.10 Counterparts. This Pledge Agreement may be executed in two or
more counterparts, which when assembled shall constitute one and the same agreement. 
  
 7.11 Amendments and Waivers. Any provision of this Pledge Agreement may be amended or waived, if, but only if, such amendment or waiver is in writing and is signed by the Pledgor and the Bank. 
  
 7.12 Conflict of Terms. The terms of this Pledge Agreement and the
terms of the Loan Agreement shall be construed and interpreted to the full extent possible to give effect to all such 

  

 13 

 
terms. In the event of any conflict between the terms of this Pledge Agreement and the Loan Agreement, the terms of the Loan Agreement shall control.

  
 [The remainder of this page is left blank intentionally.]

  

 14 

 IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed as of
the day and year first above written. 
  

			
	FOUNTAIN POWERBOATS, INC.
		
	By:	 	/s/    REGINALD M. FOUNTAIN,
JR.        
	Name:	 	Reginald M. Fountain, Jr.
	Title:	 	President
	
	FOUNTAIN POWERBOAT INDUSTRIES, INC.
		
	By:	 	/s/    REGINALD M. FOUNTAIN,
JR.        
	Name:	 	Reginald M. Fountain, Jr.
	Title:	 	President

  
 ACCEPTED AND AGREED TO AS OF THE
DATE FIRST ABOVE WRITTEN:  
  

			
	REGIONS BANK
		
	By:	 	/s/    KEMP SIMMONS        
	Name:	 	Kemp Simmons
	Title:	 	Vice President

  
 Signature Page to
Pledge Agreement 

 SCHEDULE I 
  

PLEDGED SHARES 
  

												
	 Pledgor

	  	 Name of Issuer

	  	Type of
Interests

	  	Certificate
Number, if
Applicable

	  	No. of
Shares/Units,
if Applicable

	  	Percentage of
outstanding
Interests
in Issuer

	 
	Fountain Powerboat Industries, Inc.	  	Fountain Powerboats, Inc.	  	Common
Stock	  	5	  	784,314	  	100	%Omnibus Agreement

 Exhibit 10.5 
  
 OMNIBUS AMENDMENT AND AGREEMENT 
  
 STATE OF NORTH CAROLINA 
  
 COUNTY OF BEAUFORT 
  
 This Omnibus Amendment and Agreement (this “Amendment”) is made and entered into as of this 13th day of September, 2005, by and among
Brunswick Corporation, a Delaware corporation (“Brunswick”), Fountain Powerboat Industries, Inc., a Nevada corporation (“FPII”), Fountain Powerboats, Inc., a North Carolina corporation (the
“Company”), and Reginald M. Fountain, Jr. (“RMF”). 
  
 WITNESSETH: 
  
 WHEREAS, the
parties to this Amendment have heretofore entered into that certain Master Agreement, dated as of July 17, 2003, and other agreements and instruments referenced therein, relating to the guaranty by Brunswick (the “Brunswick
Guaranty”) of a loan from Bank of America, N. A. (the “Bank”) to the Company in the amount of Eighteen Million Dollars ($18,000,000.00), as evidenced by a promissory note, dated July 17, 2003, issued by the Company to the
Bank (the “BOA Loan”); 
  
 WHEREAS, the Company
has arranged for a loan from Regions Bank for the purpose of refinancing and paying in full the BOA Loan; 
  
 WHEREAS, as part of such refinancing, the BOA Loan guaranteed by Brunswick will be paid and satisfied in full and the Brunswick Guaranty will be
terminated; 
  
 WHEREAS, the Company has requested
Brunswick’s consent to enter into such refinancing with Regions Bank in order to pay off the BOA Loan guaranteed by Brunswick, and Brunswick desires to consent to the Company entering into such refinancing; and 
  
 WHEREAS, in connection with the payoff of the BOA Loan, the parties have
agreed to enter into this Amendment for the purpose of amending the Master Agreement and certain other agreements and instruments referenced therein, as well as terminating the liens and 

 
security interests securing the obligations on behalf of the Company and/or RMF to Brunswick as a consequence of the Brunswick Guaranty and the Contingent
Purchase Agreement related to the BOA Loan. 
  
 NOW, THEREFORE, in
consideration of the Satisfaction of the BOA Loan by the Company and in further consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

  
 I. Definitions. 
  
 The following terms shall have the meanings set forth herein for the purpose
of this Amendment and the transactions described herein: 
  
 1.
“Beaufort County UCC” shall mean the Uniform Commercial Code financing statement from the Company, as debtor, to Brunswick, as secured party, filed May 31, 2002 in Book 1260, at Page 898 in the office of the Register of Deeds of
Beaufort County, North Carolina. 
  
 2. “Beaufort County
Company Deed of Trust” shall mean the Deed of Trust from the Company to PRLAP, Inc., Trustee for Brunswick, in the maximum principal sum of Eighteen Million Dollars ($18,000,000.00), dated July 17, 2003, recorded in Book 1339, at Page 948
in the office of the Register of Deeds of Beaufort County, North Carolina. 
  
 3. “Beaufort County RMF Deed of Trust” shall mean the Deed of Trust from RMF to PRLAP, Inc., Trustee for Brunswick, in the maximum principal sum of Three Million Three Hundred Thousand Dollars
($3,300,000.00), dated July 17, 2003, recorded in Book 1339, at Page 957 in the office of the Register of Deeds of Beaufort County, North Carolina. 
  
 4. “Blocked Account Agreement” shall mean the Blocked Account Agreement, dated July 17, 2003, between the Company, the Bank and
Brunswick. 
  

 2 

 5. “Brunswick Security Agreement” shall mean the Security Agreement, dated July 17,
2003, from the Company as debtor/pledgor to Brunswick as secured party. 
  
 6. “Edgecombe County RMF Deed of Trust” shall mean the Deed of Trust from RMF to PRLAP, Inc., Trustee for Brunswick, in the maximum principal sum of Three Million Three Hundred Thousand Dollars ($3,300,000.00), dated July
17, 2003, recorded in Book 1369, at Page 1002 in the office of the Register of Deeds of Edgecombe County, North Carolina. 
  
 7. “Engine Supply Agreement” shall mean the Engine Supply Agreement, dated July 17, 2003, among RMF, FPII, the Company and the Mercury
Marine Division of Brunswick. 
  
 8. “Investment Property
Security Agreement” shall mean the Investment Property Security Agreement, dated November 1, 2002, between RMF and Brunswick, as amended on July 17, 2003. 
  
 9. “Life Insurance Assignments” shall mean the assignments by the Company of life insurance policies on the
life of RMF to Brunswick, relating to policy numbers 13-698-623 and 15-024-651 issued by the Northwestern Mutual Life Insurance Company. 
  
 10. “Pitt County RMF Deed of Trust” shall mean the Deed of Trust from RMF to PRLAP, Inc., Trustee for Brunswick, in the maximum principal
sum of Three Million Three Hundred Thousand Dollars ($3,300,000.00), dated July 17, 2003, recorded in Book 1549, at Page 635 in the office of the Register of Deeds of Pitt County, North Carolina. 
  
 11. “Master Agreement” shall mean the Master Agreement,
dated July 17, 2003, between and among Brunswick, FPII, the Company, and RMF, 
  
 12. “Recorded Security Instruments” shall mean the Beaufort County UCC, the State UCC’s, the Beaufort County Company Deed of Trust, the Beaufort County RMF Deed 

  

 3 

 
of Trust, the Edgecombe County RMF Deed of Trust and the Pitt County RMF Deed of Trust, collectively. 
  
 13. “State UCC’s” shall mean the Uniform Commercial
Code Financing Statements recorded in the office of the Secretary of State of North Carolina in which the Company is named as debtor and Brunswick is named as secured party, bearing filing numbers 20020061934F, 20030072989A and the Uniform
Commercial Code Financing Statement recorded in the office of the Secretary of State of North Carolina in which RMF is named as the debtor and Brunswick is named as secured party, bearing filing number 20030073148K. 
  
 14. “Subordination Agreement” shall mean the Subordination
Agreement, dated July 17, 2003, between the Bank and Brunswick. 
  
 15. “Satisfaction of the BOA Loan” shall mean payment in full of the BOA Loan, and delivery of documentation of such payment to Brunswick, which may be evidenced by a paid receipt, certificate of satisfaction of the related
Recorded Security Instruments, original or copy of the promissory note relating to the BOA Loan being marked paid and satisfied, copy of payoff letter from Bank together with documents evidencing such payment, or other similar confirmation of
payment. 
  
 16. Capitalized terms used but not defined herein
shall have the respective meanings ascribed thereto in the Master Agreement. 
  
 II. Consent to Refinance. 
  
 Brunswick hereby consents and agrees that the Company may refinance the BOA Loan by negotiating and entering into a new loan transaction with Regions Bank wherein any or all of the Collateral may be pledged to Regions Bank as security for
the obligations to Regions Bank. As part of such refinancing, the BOA Loan and all related indebtedness to the Bank shall be paid in full and the Brunswick Guaranty and all obligations of Brunswick related to the BOA Loan shall be terminated without
such payment constituting a default under any agreement between the parties hereto, and without triggering the Brunswick Purchase Option. 
  

 4 

 III. Cancellation of Recorded Security Instruments. 
  
 Effective upon Satisfaction of the BOA Loan, the parties hereto further agree
to the following: 
  
 1. The Beaufort County UCC and State
UCC’s shall be automatically and permanently released, and the Company, RMF or any person or entity authorized by the Company or RMF, respectively, shall be authorized to file UCC-3 termination statements terminating the Beaufort County UCC and
State UCC’s. 
  
 2. All other Recorded Security Instruments
shall, as between the parties thereto, be automatically and permanently released, and Brunswick shall promptly take such action as is reasonably necessary to cause such original Recorded Security Instruments and any documents or instruments
evidencing the debts or obligations secured thereby to be marked paid and satisfied in full, and to be canceled and/or terminated on the appropriate public records, including but not limited to the filing of Certificates of Satisfaction and other
appropriate documentation in the offices of the Registers of Deeds for the counties in which the Recorded Security Instruments have been recorded. 
  
 IV. Termination of Other Documents. 
  
 Effective upon Satisfaction of the BOA Loan, the parties hereto further agree to the following: 
  
 1. The Life Insurance Assignments shall automatically terminate and Brunswick
shall promptly execute and deliver to the Company such terminations, cancellations, reassignments or other documentation as may be reasonably required by the Northwestern Mutual Life Insurance Company or reasonably requested by Company to evidence
the reassignment of Northwestern Mutual Life Insurance Policy Numbers 13698-623 and 15-024-651 to the Company, free from any restrictions or limitations imposed or required by Brunswick. 
  

 5 

 2. The Brunswick Security Agreement shall automatically terminate without any further action by the
parties thereto. 
  
 3. The Contingent Purchase Agreement shall
automatically terminate without any further action by the parties thereto. 
  
 4. The Investment Property Security Agreement shall automatically terminate without any further action by the parties thereto. Upon the request of RMF, Brunswick shall promptly take such action as may be reasonably
necessary to cause the securities described in the Investment Property Security Agreement, or the street name accounts in which such securities are registered, to be reconveyed to RMF free from any claim or interest of Brunswick. 
  
 5. The RMF Reimbursement Agreement shall automatically terminate without any
further action by the parties thereto. 
  
 6. The Subordination
Agreement shall automatically terminate to the extent it is possible to do so, and Brunswick shall execute and deliver such agreements, terminations, cancellations, revocations and documents as may be reasonably necessary or reasonably requested by
the Bank or the Company to evidence its consent to the cancellation of the Subordination Agreement. 
  
 7. The Blocked Account Agreement shall automatically terminate to the extent it is possible to do so, and Brunswick shall execute and deliver such
agreements, terminations, cancellations, revocations and documents as may be reasonably necessary or reasonably requested by the Bank or the Company to evidence its consent to the cancellation of the Blocked Account Agreement. 
  
 8. The FPII Make-Up Option shall automatically terminate without any further
action by the parties hereto. 
  

 6 

 V. Amendments to Master Agreement. 
  
 Effective upon Satisfaction of the BOA Loan, the Master Agreement shall be automatically amended as provided herein,
effective as of the date of such satisfaction. Except as amended hereby, the Master Agreement shall continue in full force and effect in accordance with its terms. The amendments to the Master Agreement are as follows: 
  
 1. Sections 2.2, 2.3, 2.4, 2.5, and 2.9.2
shall be deleted in their entirety, and shall be of no further force or effect. 
  
 2. Section 2.6 shall be amended in its entirety by deleting such section and inserting in lieu thereof the following: 
  
 2.6 Engine Supply Agreement. FPII and the Company will enter into the Engine Supply Agreement which will have a term ending on June 30, 2011.

  
 3. The first sentence of Section 2.7 shall be amended
by deleting such sentence and inserting in lieu thereof the following: 
  
 Brunswick shall have the option (the “Brunswick Purchase Option”) commencing on July 1, 2007, and ending three months after audited financial statements of FPII and the Company have been provided to Brunswick covering the
two full fiscal year periods commencing on or after July 1, 2007 (the “Brunswick Option Period”), to purchase any or all of the shares of Capital Stock held by RMF, as well as all options held by RMF to purchase Capital Stock (the
“RMF Shares”) at the Option Share Purchase Price. 
  
 4. The last sentence of Section 3.10 shall be amended by deleting such sentence and inserting in lieu thereof the following: 
  
 FPII shall at all times keep available for issuance the shares of Capital Stock issuable under the FPII Purchase Option. 
  

 7 

 VI. Amendment to Engine Supply Agreement. 
  
 Effective upon Satisfaction of the BOA Loan, and upon compliance by Brunswick
with the terms and provisions of this Amendment, the Engine Supply Agreement shall be automatically amended as provided herein, effective as of the date of such satisfaction. The amendments to the Engine Supply Agreement are as follows: 

 
 Section 1.1 of the Engine Supply Agreement shall be amended in its
entirety by deleting such section and inserting in lieu thereof the following: 
  
 1.1. The term (the “Term”) of this Agreement shall be from the date of this Agreement to June 30, 2011. 
  
 VII. Representations. 
  
 1. RMF, FPII and the Company, jointly and severally, represent and warrant to Brunswick that (a) the execution, delivery and performance by FPII and the
Company, as applicable, of this Amendment have been duly authorized by all requisite corporate action on the part of FPII and the Company, (b) this Amendment has been duly executed and delivered by FPII and the Company, and (c) this Amendment
constitutes FPII’s and the Company’s legal, valid and binding obligations, enforceable against each in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. 
  
 2. Brunswick represents and warrants to the RMF, FPII and the Company that (a) the execution, delivery and performance by Brunswick of this Amendment have
been duly authorized by all requisite corporate action on the part of Brunswick, (b) this Amendment has been duly executed and delivered by Brunswick, and (c) this Amendment constitutes Brunswick’s legal, valid and binding obligations,
enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by general
principles of equity. 
  

 8 

 VIII. Applicable Law; Choice of Forum. 
  
 This Amendment shall be governed by and construed and enforced in accordance
with the internal laws of the State of North Carolina. The parties agree that any suit, action or proceeding brought in connection with or arising out of this Amendment shall be brought solely in the Federal Courts of the Northern District of
Illinois or, if such court lacks jurisdiction, in the State Court located in Lake County, Illinois. Any party may plead this section as a waiver of jurisdiction in any other court in which an action, suit or proceeding is brought. 
  
 IX. Further Assurances; Reimbursement of Expenses. 
  
 Brunswick, FPII, the Company and RMF will, at the reasonable request of any
other party, execute and deliver to such other party all such further instruments, assignments, releases, terminations, assurances and other documents, and take all such actions as such other party may reasonably request, in connection with
completing and confirming the actions agreed to in this Amendment. Unless prohibited by applicable Law with respect to the Beaufort County Company Deed of Trust, the Beaufort County RMF Deed of Trust, the Edgecombe County RMF Deed of Trust or the
Pitt County RMF Deed of Trust, FPII, the Company or RMF shall reimburse Brunswick for all reasonable legal fees and other out-of-pocket expenses incurred by Brunswick in connection with the negotiation and drafting of this Amendment and the
performance by Brunswick of any actions in order to effect the transactions contemplated herein. 
  
 X. Execution in Counterparts. 
  
 This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, and shall become binding when each of the parties hereto shall have executed and delivered a counterpart of this
Amendment to each other party. 
  
 XI. Severability.

  
 If any provision of this Amendment shall be held invalid,
illegal or unenforceable, such provision shall not affect or impair the validity, legality or enforceability of this 

  

 9 

 
Amendment or any of the other provisions hereof, and there shall be substituted for the provision at issue a valid and enforceable provision as similar as
possible to the provision at issue. 
  
 [Signature Page Follows]

  

 10 

 IN WITNESS WHEREOF, the parties hereto have each caused this Amendment to be entered into and signed,
effective and delivered as of the date and year first above written. 
  

			
	 BRUNSWICK CORPORATION

		
	By:	 	/s/    WILLIAM L.
METZGER        
	 Title:
	 	VP Treasurer

  

			
	 FOUNTAIN POWERBOAT INDUSTRIES, INC.

		
	By:	 	/s/    REGINALD M. FOUNTAIN,
JR.        
	 Title:
	 	Chairman, C.E.O., President

  

			
	 FOUNTAIN POWERBOATS, INC.

		
	By:	 	/s/    REGINALD M. FOUNTAIN,
JR.        
	 Title:
	 	Chairman, C.E.O., President

  

			
		
	/s/    REGINALD M. FOUNTAIN,
JR.        	 	(SEAL)
	Reginald M. Fountain, Jr.	 	 

  

 11 

			
	 STATE OF ILLINOIS
	  	)
	 	  	) S.S.
	 COUNTY OF LAKE
	  	)

  
 This instrument was
signed before me, Marsha T. Vaughn, a Notary Public for the State of Illinois, on September 13, 2005 by William L. Metzger, Treasurer of Brunswick Corporation and who appeared before me personally. 
  

							
				
	  	 	 OFFICIAL SEAL
 MARSHA T. VAUGHN
 NOTARY PUBLIC, STATE OF ILLINOIS
 MY COMMISSION EXPIRES 1-12-2008
	 	 	 	/S/    MARSHA T.
VAUGHN        
	 (seal)
	 	 	 	 	Marsha T. Vaughn, Notary Public

  
 My Commission Expires: 1-12-2008

 STATE OF NORTH CAROLINA 
 COUNTY OF PITT 
  
 I, Laura R. Norton, a Notary Public in and for Craven County and said State, do hereby certify that REGINALD M. FOUNTAIN, JR. personally came before me
this day and acknowledged that he is President of FOUNTAIN POWERBOAT INDUSTRIES, INC., a corporation, and that he executed the foregoing on behalf of the corporation. 
  
 WITNESS my hand and official seal, this the 16th day of September, 2005. 
  

	
	
	/s/    LAURA R. NORTON        
	Notary Public

  
 My Commission Expires:

  
 March 27, 2009 
  
 [Seal of Notary Public] 
  
 Notary seal or stamp must appear within this box. 
  

 13 

 STATE OF NORTH CAROLINA 
 COUNTY OF PITT 
  
 I, Laura R. Norton, a Notary Public in and for Craven County and said State, do hereby certify that REGINALD M. FOUNTAIN, JR. personally came before me
this day and acknowledged that he is President of FOUNTAIN POWERBOATS, INC., a corporation, and that he executed the foregoing on behalf of the corporation. 
  
 WITNESS my hand and official seal, this the 16th day of September, 2005. 
  

	
	
	/s/    LAURA R. NORTON        
	Notary Public

  
 My Commission Expires:

  
 March 27, 2009 
  
 [Seal of Notary Public] 
  
 Notary seal or stamp must appear within this box. 
  

 14 

 STATE OF NORTH CAROLINA 
 COUNTY OF PITT 
  
 I, Laura R. Norton, a Notary Public in and for Craven County and said State, do hereby certify that REGINALD M. FOUNTAIN, JR. personally appeared before
me this day and acknowledged that he executed the foregoing instrument. 
  
 WITNESS my hand and notarial seal, this the 16th day of September, 2005. 
  

	
	
	/s/    LAURA R. NORTON        
	Notary Public

  
 My Commission Expires:

  
 March 27, 2009 
  
 [Seal of Notary Public] 
  
 Notary seal or stamp must appear within this box. 
  

 15

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