PLEDGE AGREEMENT
PLEDGE AGREEMENT, dated as of July 22, 1997, by and between Xxxxxx X.
Xxxxxx (the "Executive") and LogiMetrics, Inc. (the "Company").
W I T N E S S E T H:
WHEREAS, the Executive has purchased from the Company 850,000 shares (the
"Shares") of the Company's Common Stock, par value $.01 per share ("Common
Stock"); and
WHEREAS, in connection with such purchase the Company has loaned to the
Executive the sum of $459,000; such loan being evidenced by a non-recourse
secured promissory note (the "Note") in the principal amount of $459,000 made by
the Executive in favor of the Company; and
WHEREAS, the loan to the Executive is to be secured by a pledge by the
Executive to the Company of the Shares and the other Collateral referenced
herein; and
WHEREAS, the parties hereto desire to set forth the terms of and to
evidence the Executive's grant to the Company of a security interest in the
Collateral.
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Executive hereby agrees with the Company as
follows:
Section 1. Definitions. The following terms, when used in this Agreement,
shall have the following meanings (such definitions to be equally applicable to
the singular and plural forms thereof):
"Default" means the failure to make any payment of principal of or interest
on, or any other amounts due under, the Note when due, whether at maturity, upon
acceleration or otherwise.
"Distributions" means all stock dividends, liquidating dividends, shares of
stock resulting from stock splits, reclassifications, warrants, options,
non-cash dividends and other distributions on or with respect to the Shares,
whether similar or dissimilar to the foregoing, but shall not include Dividends.
"Dividends" means regular dividends declared with respect to the Shares.
"Liabilities" means the Note, and all amounts becoming due thereunder, and
all other payment obligations of the Executive hereunder or thereunder or any
instrument executed pursuant hereto or thereto.
Section 2. Grant of Security Interest. As security for payment of all
Liabilities, the Executive hereby pledges, assigns and transfers to the Company,
and grants to the Company a continuing security interest in and to, the Shares,
together with all Dividends and Distributions, interest and other payments and
rights with respect thereto, together with all proceeds thereof (collectively,
the "Collateral"). The Executive further pledges, assigns and transfers to the
Company, and grants to the Company a continuing security interest in and to, and
agrees to duly endorse to the order of the Company, any additional Collateral,
together will all proceeds thereof, delivered by the Executive to the Company
for the purposes of pledge under this Agreement. Any Collateral delivered by the
Executive to the Company may be endorsed by the Company, in its own name or in
the name of the Executive, on behalf of the Executive to the order of the
Company.
Section 3. Stock Powers, Endorsements, Etc. The Executive shall, from time
to time, upon request of the Company, promptly execute such endorsements and
deliver to the Company such stock powers and similar documents, satisfactory in
form and substance to the Company, with respect to the Collateral as the Company
may reasonably request and shall, from time to time, upon request of the
Company, promptly transfer any securities which are part of the Collateral into
the name of any nominee designated by the Company on the books of the
corporation or other entity issuing such securities; provided, however, that the
Company shall not be entitled to effect or demand a transfer of the Collateral
into the name of the Company or the Company's nominee without the consent of the
Executive unless and until a Default shall have occurred.
Section 4. Certain Other Agreements Regarding Collateral. The Executive
shall deliver (properly endorsed where necessary) to the Company:
(a) after a Default shall have occurred and be continuing, promptly
upon receipt thereof by the Executive and without any request therefor by the
Company, all Dividends and Distributions, and other proceeds of the Collateral,
all of which shall be held by the Company as additional Collateral; and
(b) at any time after a Default shall have occurred and be continuing,
promptly upon request of the Company, such consents or proxies and other
documents as may be necessary to allow the Company to exercise any voting power
or other right with respect to any securities included in the Collateral;
provided, however, that unless a Default shall have occurred and be continuing,
the Executive shall be entitled:
(i) to exercise, as the Executive shall deem appropriate, all
voting or other powers with respect to securities pledged hereunder
(including but not limited to the Shares); and
(ii) to receive and retain for the Executive's own account any
and all Dividends paid in cash.
Section 5. Actions Upon Default. Whenever a Default shall have occurred and
be continuing, the Company may exercise from time to time any and all rights and
remedies available to it under applicable law, including but not limited to all
rights of a secured party available to it under the Uniform Commercial Code.
Without limiting the above, the Company may from time to time, whether before or
after any of the Liabilities shall become due and payable, but only if a Default
shall have occurred, without notice to the Executive, take any or all of the
following actions:
(a) transfer all or any part of the Collateral into the name of the Company
or its nominee; and
(b) execute (in the name, place and stead of the Executive) any or all
endorsements, assignments, stock powers and other instruments of conveyance or
transfer with respect to all or any of the Collateral.
The Executive understands that compliance with the Federal securities laws,
applicable blue sky or other state securities laws or similar laws analogous in
purpose or effect may strictly limit the course of conduct of the Company if the
Company were to attempt to dispose of all or any part of the Collateral and may
also limit the extent to which or the manner in which any subsequent transferee
of the Collateral may dispose of the same. Accordingly, the Executive agrees
that IF ANY COLLATERAL IS SOLD AT ANY PUBLIC OR PRIVATE SALE, THE COMPANY MAY
ELECT TO SELL ONLY TO A BUYER WHO WILL GIVE FURTHER ASSURANCES, SATISFACTORY IN
FORM AND SUBSTANCE TO THE COMPANY, RESPECTING COMPLIANCE WITH THE REQUIREMENTS
OF THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY AND ALL APPLICABLE STATE
SECURITIES LAWS; AND A SALE SUBJECT TO SUCH CONDITION SHALL BE DEEMED
COMMERCIALLY REASONABLE. The Company shall have the right to bid upon or
purchase the Shares, or any other part of the Collateral, or all of the
foregoing, at any such sale, less any and all amounts owing to the Company by
the Executive under the Note, this Agreement or otherwise, and that any such
purchase is commercially reasonable.
Section 6. Application of Moneys. Any moneys received by the Company upon
payment to it of any Collateral held by it or as proceeds of any of the
Collateral may be applied by the Company first to the payment of any expenses
incurred by it in connection with the Collateral, including, without limitation,
reasonable attorneys' fees and legal expenses, and all other amounts payable to
the Company by the Executive, and any balance of such moneys so received by the
Company may be applied to all Liabilities of the Executive (including, without
limitation, the principal amount of the Note outstanding whether or not such
principal amount is at that time due and payable) in such order of application
as the Company in its sole discretion may determine. Any amounts remaining after
payment of the Liabilities may be applied by the Company to the payment of any
and all other amounts owing, whether or not then due, to the Company from the
Executive and any remaining balance thereafter shall be paid to the Executive.
Section 7. Release of Collateral. Upon the indefeasible payment in full of
the Liabilities, the Company shall, upon the request of the Executive, promptly
reassign and redeliver to the Executive the Collateral which has not been sold,
disposed of, retained or applied by the Company in accordance with the terms
hereof, together with such endorsements, stock powers and similar documents as
the Executive may reasonably request. Such reassignment and redelivery shall be
without warranty by or recourse to the Company, except as to the absence of any
prior assignments by the Company of its interest in the Collateral. In the event
that the Executive proposes to sell, transfer or otherwise dispose of all or a
portion of the Shares, upon the request of the Executive, the Company shall
release from its security interest the Shares to be sold by the Executive and,
at the sole expense of the Executive, shall deliver such Shares as directed by
the Executive, free and clear of any security interest hereunder, upon receipt
from or on behalf of the Executive of the net proceeds of such sale, transfer or
other disposition in cash in next day or immediately available funds.
Section 8. Non-Recourse Nature of Liabilities. The Company's sole recourse
for the payment of the Liabilities shall be limited to the Collateral securing
the Note. THE COMPANY SHALL NOT HAVE THE RIGHT TO ENFORCE THE LIABILITIES
AGAINST THE EXECUTIVE OR ANY OF THE EXECUTIVE'S OTHER ASSETS OR PROPERTY.
Section 9. Miscellaneous.
(a) To the fullest extent permitted by applicable law, this Agreement
shall continue to be effective or be reinstated, as the case may be, if at any
time any amount received by the Company in respect of the Liabilities is
rescinded or must otherwise be restored or returned by the Company upon the
insolvency or bankruptcy of the Executive or upon the appointment of any
receiver, intervenor, conservator, trustee or similar official for the Executive
or any substantial part of his assets, or otherwise, all as though such payments
had not been made.
(b) No remedy herein conferred is intended to be exclusive of any
other remedy herein conferred or otherwise available to the Company, but every
such remedy shall be cumulative and in addition to every other remedy herein
conferred, or conferred on the Company by any other agreement or instrument or
now or hereafter existing at law, in equity or by statute.
(c) Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction, shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
(d) Except as otherwise expressly provided herein, no term or
provision of this Agreement may be amended, waived, discharged or terminated
orally, but only by an instrument in writing signed by the parties.
(e) THIS AGREEMENT AND ALL RIGHTS HEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO THE CONFLICTS OF LAWS PROVISIONS THEREOF. THE EXECUTIVE HEREBY
CONSENTS AND SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE
COURTS LOCATED IN THE STATE OF NEW YORK HAVING SUBJECT MATTER JURISDICTION IN
CONNECTION WITH ANY AND ALL DISPUTES ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT, THE NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. FURTHER,
THE EXECUTIVE HEREBY CONSENTS AND AGREES THAT SERVICE OF PROCESS BY THE COMPANY,
OR ANY PARTY ACTING ON BEHALF OF THE COMPANY, SHALL BE DEEMED VALIDLY AND
PROPERLY EFFECTED AGAINST THE EXECUTIVE UPON THE MAILING OF A COPY OF SUCH
PROCESS BY CERTIFIED MAIL, POSTAGE PREPAID, TO THE EXECUTIVE AT ITS ADDRESS SET
FORTH ABOVE.
(f) No course of dealing and no delay on the part of any party hereto
in exercising any right, power, or remedy conferred by this Agreement shall
operate as a waiver thereof or otherwise prejudice such party's rights, powers
and remedies hereunder or in connection herewith. No single or partial exercise
of any power or remedy conferred by this Agreement shall preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.
(g) This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors, assigns and legal
representatives.
(h) This Agreement constitutes the entire agreement among the parties
with respect to the matters covered hereby and supersedes all previous written,
oral or implied agreements and understandings among the parties with respect to
such matters.
(i) All notices or other communications required or permitted
hereunder shall be in writing and shall be delivered personally, by facsimile or
sent by certified, registered or express air mail, postage prepaid, and shall be
deemed given which so delivered personally, or by facsimile, or if mailed, five
days after the date of mailing, as follows:
If to the Company: 00 Xxxxxxx Xxxxx
Xxxxxxx, Xxx Xxxx 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attention: Chief Executive Officer
If to the Executive: 0 Xxxxxxx Xxxxx
Xxxxxxxx Xxxxxxx, Xxx Xxxxxx 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
or at such other addresses as shall be furnished in writing to the other party
hereto.
(j) The headings in this Agreement are for reference purposes only,
and shall not in any way affect the meaning or interpretation
(k) This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original agreement, but all of which together shall
constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have duly executed this Agreement as
of the date first written above.
Witness:
Xxxxxxxxx Xxxxxxxx /s/ Xxxxxx X. Xxxxxx
__________________________ ________________________
Name: Xxxxxxxxx Xxxxxxxx Xxxxxx X. Xxxxxx
LOGIMETRICS, INC.
By: /s/ Xxxxxxx X. Xxxxxxx
Name: Xxxxxxx X. Xxxxxxx
Title: Chief Financial Officer
