Document:

Exhibit
10.3

STOCK
PLEDGE AGREEMENT

STOCK PLEDGE
AGREEMENT (“Stock Pledge Agreement”) entered into as of the 15th day of
June, 2007 by and between John Fife (the “Secured Party”), and David
Saltman, a California resident with an address at 514 Via de la Valle, Suite
200, Solana Beach, CA  92075 (the “Pledgor”).

RECITALS

A.                                   The
Pledgor has agreed to pledge certain securities to secure performance by Open
Energy Corporation a Nevada corporation (“Maker”) of its obligations
under its Note and Warrant Purchase Agreement (the “Agreement”), which
obligations are evidenced by an original discount note (the “Note”) in
an aggregate face amount of up to One Million and 00/100 Dollars
($1,000,000.00) payable to the Secured Party or his transferees or
assigns.  Capitalized terms in this Stock
Pledge Agreement which are not identified herein will have the meanings given
such terms in the Agreement.

B.                                     The
Secured Party is willing to accept the Note only upon receiving the pledge of
certain stock as set forth in this Stock Pledge Agreement.

NOW, THEREFORE, in
consideration of the premises, the mutual covenants and conditions contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

1.                                       Grant
of Security Interest.  The Pledgor
hereby pledges to the Secured Party as collateral and security for the Secured
Obligations (as defined in Section 2) the securities set forth on the
attached Schedule 1 of this Stock Pledge Agreement, together with
medallion guaranteed stock powers and an irrevocable instruction letter to the
transfer agent (the “Transfer Agent”) of the common stock (the “Collateral
Shares”) of the Maker.  Unless
otherwise set forth on Schedule 1 of this Stock Pledge Agreement, the
Pledgor is the beneficial and record owner of the Collateral Shares set forth
on such Schedule 1.  Such
Collateral Shares, together with any additions, replacements, accessions or
substitutes therefor or proceeds thereof, are hereinafter referred to
collectively as the “Collateral.”

2.                                       Secured
Obligations.  During the term hereof,
the Collateral shall secure the performance by the Pledgor of its obligations,
covenants, and agreements under this Stock Pledge Agreement and the performance
of its Obligations under the Note (the “Secured Obligations”).

3.                                       Perfection
of Security Interests.  (a)  Upon execution of this Stock Pledge
Agreement, the Pledgor shall deliver the Collateral Shares, together with Stock
Powers (with Medallion Guarantees annexed), to the Secured Party.

(b)                                 The
Pledgor will, at its own expense, cause to be searched the public records with
respect to the Collateral and will execute, deliver, file and record (in such
manner and form as the Secured Party may require), or permit the Secured Party
to file and record, as the Pledgor’s 

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attorney-in-fact,
any financing statements, any carbon, photographic or other reproduction of a
financing statement or this Stock Pledge Agreement (which shall be sufficient
as a financing statement hereunder), any specific assignments or other paper
that may be reasonably necessary or desirable, or that the Secured Party may
request, in order to create, preserve, perfect or validate any Security
Interest or to enable the Secured Party to exercise and enforce its rights
hereunder with respect to any of the Collateral.  The Pledgor hereby appoints the Secured Party
as the Pledgor’s attorney-in-fact to execute in the name and behalf of the
Pledgor such additional financing statements as the Secured Party may request.

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

5.                                       The
Pledgor’s Warranty.  A. Title.  The Pledgor represents and warrants hereby to
the Secured Party as follows with respect to the Collateral Shares:

(i)                                     The
Collateral is free and clear of any encumbrances of every nature whatsoever,
other than restrictions on the resale thereof mandated by the Federal or any
applicable state securities laws, and the Pledgor is the sole owner of the
Collateral Shares;

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

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

B.                                     Other.  (i) The Pledgor has made necessary inquiries
of the Maker and believes that the Maker fully intends to fulfill and has the
capability of fulfilling its obligations to transfer the Collateral Shares upon
occurrence of an Event of a Default under the Note or this Stock Pledge
Agreement.

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

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

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

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

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

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

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

(a)                                  The
Pledgor hereby irrevocably appoints the Secured Party as the Pledgor’s
attorney-in-fact, with full authority in the place and stead of the Pledgor and
in the name of the Pledgor, the Secured Party or otherwise, from time to time
at the Secured Party’s discretion, to take any action and to execute any
instrument that the Secured Party may reasonably deem necessary or advisable to
accomplish the purposes of this Stock Pledge Agreement, including:  (i) upon the occurrence and during the
continuance of an Event of Default (as defined below), to receive, endorse, and
collect all instruments made payable to the Pledgor representing any dividend,
interest payment or other distribution in respect of the Collateral or any part
thereof to the extent permitted hereunder and to give full discharge for the
same and to execute and file governmental notifications and reporting forms;
(ii) to arrange for the transfer of the Collateral on the books of the Maker or
any other person to the name of the Secured Party or to the name of the Secured
Party’s nominee.

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

11.                                 Remedies
upon Default.  Upon the occurrence
and during the continuance of an Event of Default under the Note (“Event of
Default”):

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

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

(c)                                  The
Pledgor hereby acknowledges that the sale by the Secured Party of any
Collateral pursuant to the terms hereof in compliance with the Securities Act,
as well as applicable “Blue Sky” or other state securities laws, may require
strict limitations as to the manner in which the Secured Party or any
subsequent transferee of the Collateral may dispose thereof.  The Pledgor acknowledges and agrees that in
order to protect the Secured Party’s interest it may be necessary to sell the
Collateral at a price less than the maximum price attainable if a sale were
delayed or were made in another manner, such as a public offering under the
Securities Act.  The Pledgor has no
objection to sale in such a manner and agrees that the Secured Party shall have
no obligation to obtain the maximum possible price for the Collateral.  Without limiting the generality of the
foregoing, the Pledgor agrees that, upon the occurrence and during the
continuation of an Event of Default, the Secured Party may, subject to
applicable law, from time to time attempt to sell all or any part of the
Collateral by a private placement, restricting the bidders and prospective
purchasers 

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to those who will
represent and agree that they are purchasing for investment only and not for
distribution.  In so doing, the Secured
Party may solicit offers to buy the Collateral or any part thereof for cash,
from a limited number of investors reasonably believed by the Secured Party to
be institutional investors or other accredited investors who might be
interested in purchasing the Collateral. 
If the Secured Party shall solicit such offers, then the acceptance by
the Secured Party of one of the offers shall be deemed to be a commercially
reasonable method of disposition of the Collateral.

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

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

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

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

The Pledgor
acknowledges that there is no adequate remedy at law for failure by it to
comply with the provisions of this Section 11 and that such failure
would not be adequately compensable in damages, and therefore agrees that its
agreements contained in this Section 11 may be specifically enforced.

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

12.                                 
(a)                               Term
of Agreement.  This Stock Pledge
Agreement shall continue in full force and effect until payment in full of the
Note.  Upon payment in full of the Note,
the security interests in the relevant Collateral shall be deemed released, and
any portion of the Collateral not transferred to or sold by the Secured Party
and, if not used, the Irrevocable Transfer Agent 

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Instructions,
stock powers and other related documents shall be returned to the Pledgor.  Upon termination of this Pledge Agreement,
the relevant Collateral shall be returned within five (5) trading days to the
Pledgor, as contemplated above.

(b)                                 Application
of Proceeds.  Upon the occurrence and
during the continuance of an Event of Default, any cash held by the Secured
Party as Collateral and all cash proceeds received by the Secured Party in
respect of any sale of, collection from, or other realization upon all or any
part of the Collateral pursuant to the exercise by the Secured Party of its
remedies as a secured creditor as provided in Section 11 shall be
applied from time to time by the Secured Party as provided in the Note.

13.                                 Indemnity
and Expenses.  The Pledgor agrees:

(a)                                  To
indemnify and hold harmless the Secured Party and each of his 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 Stock Pledge Agreement or the Secured Obligations, except
to the extent the same shall arise as a result of the gross negligence or
willful misconduct of the party seeking to be indemnified; and

(b)                                 To
pay and reimburse the Secured Party upon demand for all reasonable costs and
expenses (including, without limitation, reasonable attorneys’ fees and
expenses) that the Secured Party may incur in connection with (i) the custody,
use or preservation of, or the sale of, collection from or other realization
upon, any of the Collateral, including the reasonable expenses of re-taking,
holding, preparing for sale or lease, selling or otherwise disposing of or
realizing on the Collateral, (ii) the exercise or enforcement of any rights or
remedies granted hereunder, under the Note or otherwise available to it
(whether at law, in equity or otherwise), or (iii) the failure by the Pledgor
to perform or observe any of the provisions hereof.  The provisions of this Section 13 shall
survive the execution and delivery of this Stock Pledge Agreement, the
repayment of any of the Secured Obligations, the termination of the commitments
of the Secured Party under the Note and the termination of this Stock Pledge
Agreement.

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

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

(a)                                  THE
VALIDITY OF THIS STOCK PLEDGE AGREEMENT, ITS CONSTRUCTION, INTERPRETATION, AND
ENFORCEMENT, AND THE RIGHTS OF THE PARTIES HERETO SHALL BE DETERMINED UNDER,
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS
(WITHOUT REFERENCE TO THE CHOICE OF LAW PRINCIPLES THEREOF).  THE PARTIES AGREE THAT ALL ACTIONS OR
PROCEEDINGS ARISING IN 

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CONNECTION WITH
THIS STOCK PLEDGE AGREEMENT SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND
FEDERAL COURTS LOCATED IN THE COUNTY OF COOK, STATE OF ILLINOIS OR, AT THE SOLE
OPTION OF THE SECURED PARTY, IN ANY OTHER COURT IN WHICH THE SECURED PARTY
SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER
JURISDICTION OVER THE MATTER IN CONTROVERSY.

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

(c)                                  THE
PLEDGOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT, OR OTHER
PROCESS ISSUED IN ANY ACTION OR PROCEEDING AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINT, OR OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL ADDRESSED TO THE PLEDGOR AT ITS ADDRESS FOR NOTICES IN ACCORDANCE WITH
THIS STOCK PLEDGE AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON
THE EARLIER OF THE PLEDGOR’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER
DEPOSIT IN THE UNITED STATES MAILS, PROPER POSTAGE PREPAID.

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

16.                                 Amendments;
etc.                                               No
amendment or waiver of any provision of this Stock Pledge Agreement nor consent
to any departure by the Pledgor herefrom shall in any event be effective unless
the same shall be in writing and signed by the Secured Party, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.  No
failure on the part of the Secured Party to exercise, and no delay in exercising
any right under this Stock Pledge Agreement, any other document or documents
delivered in connection with the transactions contemplated by the Note, this
Stock Pledge Agreement, the Deficiency Guaranty (as defined in the Note) or any
of the other Loan Agreements, as defined in the Note, or otherwise with respect
to any of the Secured Obligations, shall operate as a waiver thereof; nor shall
any single or partial exercise of any right under this Stock Pledge Agreement,
any other of the Loan Agreements, or otherwise with respect to any of the
Secured Obligations preclude any other or further exercise thereof or the
exercise of any other right.  The
remedies provided for in this Stock Pledge Agreement or otherwise with respect
to any of the Secured Obligations are cumulative and not exclusive of any
remedies provided by law.

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

If to the Pledgor:

David Saltman

514 Via de la
Valle, Suite 200

Solana Beach,
CA  92075

Fax No.:     858-794-8811

with a copy to:                                                                 John
Hart, Esq.

514 Via de la
Valle, Suite 200

Solana Beach,
CA  92075

Fax No.:     858-794-8811

If to the Secured
Party:                      John
Fife

303 East Wacker
Drive

Suite 301

Chicago, IL  60601

Fax No.:
312-819-9701

with a copy to:                                                                 Merrill
E. Weber, Esq.

303 East Wacker
Drive

Suite 301

Chicago, IL  60601

Fax No.:
312-819-9701

Any notice given
pursuant to this Section 17 shall be deemed to have been given:  (a) if delivered in person, when delivered;
(b) if delivered by fax, on the date of transmission if transmitted on a
Business Day before 4:00 p.m. at the place of receipt or, if not, on the next
succeeding Business Day (as defined in the Note); (c) if delivered by overnight
courier, two (2) days after delivery to such courier properly addressed; or (d)
if by United States mail, four (4) Business Days after depositing in the United
States mail, with postage prepaid and properly addressed.  Any party hereto may change the address or
fax number at which it is to receive notices hereunder by notice to the other
party in writing in the foregoing manner.

18.                                 Continuing
Security Interest.                                      This
Stock Pledge Agreement shall create a continuing security interest in the
Collateral and shall:  (a) remain in full
force and effect until the indefeasible payment in full of the Secured
Obligations, including the cash collateralization, expiration, or cancellation
of all Secured Obligations, if any, consisting of letters of credit, and the
full and final termination of any commitment to extend any financial
accommodations under the Note; (b) be binding upon the Pledgor and its
successors and assigns; and (c) inure to the benefit of the Secured Party and
his successors, transferees, and assigns. 
Upon the indefeasible payment in full of the Secured Obligations,
including the cash collateralization, expiration, or cancellation of all 

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Secured
Obligations, if any, consisting of letters of credit, and the full and final
termination of any commitment to extend any financial accommodations under the
Note, the security interests granted herein shall automatically terminate and
all rights to the Collateral shall revert to the Pledgor.  Upon any such termination, the Secured Party,
at the Pledgor’s expense, shall execute and deliver to the Pledgor such
documents as the Pledgor shall reasonably request to evidence such
termination.  Such documents shall be
prepared by the Pledgor and shall be in form and substance reasonably
satisfactory to the Secured Party.

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

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

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

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

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

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

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

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

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

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

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

 

	
  

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  David Saltman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JOHN FIFE

  

 

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Schedule 1

Pledged Interests:
1,600,000 shares of Common Stock

Name of
Maker:  Open Energy Corporation

Jurisdiction of
Organization: Nevada

Type of Interest:
Shares of Common Stock

Number of
Shares/Units outstanding (if applicable): 
91,981,278

Certificate
Number(s) (if any):   420, 421, 701

Percentage of
Outstanding Interests in Maker:  1.7%

Date
Acquired:  December 31, 2005, March 31,
2006 and June 30, 2006

 11
 

Schedule 2

Pledgor
Information:

For Pledgor That
Is a Registered Organization

Jurisdiction of
Organization:

Type of
Organization:

Organizational ID
Number (if any):

For Pledgor That
Is An Individual

Address of
Principal Residence:                    See
Notice section

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

Type of
Organization: 

 

 12Exhibit
10.4

THIS NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS.

	
  No. 2007A-2

  	
  Up to $1,000,000.00

  	
  Original Issue Date:
  June 15, 2007

  
	
  Holder:

  	
  John Fife

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  303 East Wacker Drive

  	
   

  
	
   

  	
  Suite 301

  	
   

  
	
   

  	
  Chicago, IL 60601

  	
   

  

 

SERIES 2007 SECURED ORIGINAL ISSUE DISCOUNT NOTE

DUE OCTOBER 15, 2007

WITH OPTION TO EXTEND MATURITY DATE TO NOVEMBER 15, 2007

THIS Note, in the principal amount of up to One Million and 00/100
Dollars ($1,000,000.00), evidencing a loan (the “Loan”) made on June 15,
2007 (the “Loan Origination Date”), is one of a duly authorized issue of
Notes of Open Energy Corporation, a Nevada corporation with offices at 514 Via
de la Valle, Suite 200, Solana Beach, CA 
92075 (the “Maker”), collectively or individually designated as
the Note, as the case may be (the “Note”), due not later than
November  15, 2007 (“Maturity Date”),
in an aggregate face amount of up to One Million and 00/100 Dollars
($1,000,000.00).  This Note is issued
pursuant to that certain Note and Warrant Purchase Agreement of even date
herewith by and between the Maker and the Holder.

FOR VALUE RECEIVED, the Maker promises to pay to the
Holder or registered assigns the sum of Nine Hundred Fifty Thousand and 00/100
Dollars ($950,000.00) if paid on or prior to the four (4) month anniversary
(the “Initial Maturity Date”) of the Loan Origination Date, or, if the
term of the Loan is extended to November 15, 2007 as provided in Section
6(b) below, the Maker promises to pay to the Holder or registered assigns
the sum of One Million and 00/100 Dollars ($1,000,000.00).  Upon the occurrence of an Event of Default,
the amount of principal due hereunder shall conclusively be One Million and
00/100 Dollars ($1,000,000.00), and all amounts due hereunder shall be
immediately due and payable, and any amounts not so paid shall bear interest at
the rate of 18% per annum from the date of such default through and including
the date of payment.  The principal of
and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts, at the address of the Holder last appearing on the
Note Register.

This Note is subject to the following additional provisions:

Section 1.              Exchangeability
and Transferability.  This
Note is exchangeable for an equal aggregate principal amount of Notes of
different authorized denominations, as requested by the 

Holder surrendering the same, but shall not be issuable in
denominations of less than integral multiples of Twenty Thousand Dollars
($20,000) unless such amount represents the full principal balance of Notes
outstanding to such Holder.  No service
charge will be made for such registration of transfer or exchange.  The Holder, by acceptance hereof, agrees to
give written notice to the Maker before transferring this Note; such notice
will describe briefly the proposed transfer and will give the Maker the name,
address, and tax identification number of the proposed transferee, and will
further provide the Maker with an opinion of the Holder’s counsel reasonably
satisfactory to Maker’s counsel that such transfer can be accomplished in
accordance with federal and applicable state securities laws (unless such
transaction is permitted by the plan of distribution in an effective
Registration Statement).  Promptly upon
receiving such written notice, the Maker shall effect the transfer as directed
by the Holder.

Section 2.              Interest
Rate Limitation.  The
parties intend to conform strictly to the applicable usury laws in effect from
time to time during the term of the Loan. 
Accordingly, if any transaction contemplated hereby would be usurious
under such laws, then notwithstanding any other provision hereof:  (i) the aggregate of all interest that is
contracted for, charged, or received under this Note or under any other of the
Loan Documents shall not exceed the maximum amount of interest allowed by
applicable law (the “Highest Lawful Rate”), and any excess shall be
promptly credited to the Maker by the Holder (or, to the extent that such
consideration shall have been paid, such excess shall be promptly refunded to
the Maker by the Holder); (ii) neither the Maker nor any other person now or
hereafter liable hereunder shall be obligated to pay the amount of such
interest to the extent that it is in excess of the Highest Lawful Rate; and
(iii) the effective rate of interest shall be reduced to the Highest Lawful
Rate.  All sums paid, or agreed to be
paid, to the Holder for the use, forbearance, and detention of the debt of the
Maker to the Holder shall, to the extent permitted by applicable law, be
allocated throughout the full term of the Note until payment is made in full so
that the actual rate of interest does not exceed the Highest Lawful Rate in
effect at any particular time during the full term thereof.  If the total amount of interest paid or
accrued pursuant to this Note under the foregoing provisions is less than the total
amount of interest that would have accrued if a varying rate per annum equal to
the interest rate under the Note had been in effect, then the Maker agrees to
pay to the Holder an amount equal to the difference between (x) the lesser of
(A) the amount of interest that would have accrued if the Highest Lawful Rate
had at all times been in effect, or (B) the amount of interest that would have
accrued if a varying rate per annum equal to the interest rate under this Note
had at all times been in effect, and (y) the amount of interest accrued in
accordance with the other provisions of this Note.

Section 3.              Prepayment;
Extension.     (a)           The Maker shall have the right to
prepay this Note in whole or in part prior to the Maturity Date.  The Maker shall give at least five (5)
Business Days, but not more than ten (10) Business Days, written notice of any
intention to prepay this Note prior to the Maturity Date or any extension
thereof to the Holder, which notice shall specify the “Prepayment Date”.

(b)           By
written notice given at least Five (5) Business Days prior to the Initial
Maturity Date, the Maker may require the Holder to renew the Loan (the “Loan
Renewal”) for an additional thirty (30) days, to November 15, 2007 (the “Second
Maturity Date”) under the same terms and subject to the same conditions as
the financing contemplated hereby, so long as the Maker is not then in default
of any provisions related to the financing contemplated hereby.  In such case, the amount due on the Second
Maturity Date shall be One Million and 00/100 Dollars ($1,000,000).

 2
 

Section 4.              Definitions.  For the purposes hereof, the following terms
shall have the following meanings:

“Business Day” means any day except Saturday, Sunday and any day
which shall be a legal holiday or a day on which banking institutions in the
State of New York are authorized or required by law or other government action
to close.

“Change of Control Transaction” means the occurrence of any of
(i) an acquisition after the date hereof by an individual or legal entity or
“group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act)
of in excess of forty-nine percent (49%) of the voting securities of a person,
coupled with a replacement of more than one-half of the members of such
person’s board of directors which is not approved by those individuals who are
members of the board of directors on the date hereof in one or a series of
related transactions, or (ii) the merger of such person with or into another
entity, consolidation or sale of all or substantially all of the assets of such
person in one or a series of related transactions, unless following such
transaction, the holders of such person’s securities continue to hold at least
forty (40%) of such securities following such transaction.  The execution by such person of an agreement
to which such person is a party or by which it is bound providing for any of
the events set forth above in (i) or (ii) does not constitute the occurrence of
the event until after the event in fact occurs.

“Common Stock” means the Common Stock of the Issuer.

Section 5.              Except as expressly provided
herein, no provision of this Note shall alter or impair the obligation of the
Maker, which is absolute and unconditional, to pay the principal of, interest
and liquidated damages (if any) on, this Note at the time, place, and rate, and
in the coin or currency, herein prescribed. 
This Note is a direct obligation of the Maker.

Section 6.              If this Note shall be mutilated,
lost, stolen or destroyed, the Maker shall execute and deliver, in exchange and
substitution for and upon cancellation of a mutilated Note, or in lieu of or in
substitution for a lost, stolen or destroyed Note, a new Note for the principal
amount of this Note so mutilated, lost, stolen or destroyed but only upon receipt
of evidence of such loss, theft or destruction of such Note, and of the
ownership hereof, and indemnity, if requested, all reasonably satisfactory to
the Maker.

Section 7.              Choice of
Law and Venue; Submission to Jurisdiction; Service of Process.

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

 3
 

MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY.

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

(c)           THE MAKER HEREBY
WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT, OR OTHER PROCESS ISSUED IN
ANY ACTION OR PROCEEDING AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT, OR
OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO MAKER.

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

(e)           To the extent
determined by such court, the Maker shall reimburse the Holder for any
reasonable legal fees and disbursements incurred by the Holder in enforcement
of or protection of any of its rights under any of this Note.

Section 8.              Any waiver by the Maker or the
Holder of a breach of any provision of this Note shall not operate as or be
construed to be a waiver of any other breach of such provision or of any breach
of any other provision of this Note.  The
failure of the Maker or the Holder to insist upon strict adherence to any term
of this Note on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Note. 
Any waiver must be in writing.

Section 9.               If any provision of this Note is
invalid, illegal or unenforceable, the balance of this Note shall remain in
effect, and if any provision is inapplicable to any person or circumstance, it
shall nevertheless remain applicable to all other persons and circumstances.

Section 10.            Whenever any payment or other
obligation hereunder shall be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day (or, if such next
succeeding Business Day falls in the next calendar month, the preceding
Business Day in the appropriate calendar month).

Section 11.            Security.  The obligation of the Maker for payment of
principal, interest and all other sums hereunder, in the event of a default and
failure of the Maker to perform hereunder, is secured by (i) a Guarantee of the
Guarantor, and (ii) the pledge of certain securities (the “Pledged Shares”)
by the Guarantor as Pledgor under the terms and conditions of a Stock Pledge
Agreement.

 4
 

Section 12.            Waiver of Jury Trial.

THE MAKER HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE.  THE MAKER REPRESENTS THAT IT HAS REVIEWED
THIS WAIVER AND KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 
IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

Section 13.            Fees and Expenses.              Each
party shall be responsible for paying its own expenses incurred in connection
with this transaction, except that the Maker shall pay to the Holder
simultaneously with the execution and delivery of this Note a legal and professional
fee in the amount of Five Thousand Dollars ($5,000.00).

IN WITNESS WHEREOF, the Maker has caused this instrument to be duly executed by an
officer duly authorized for such purpose, as of the date first above indicated.

	
   

  	
  OPEN ENERGY CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
					

 

 5

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