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EXHIBIT 10.50
STOCK PLEDGE AGREEMENT
This STOCK PLEDGE AGREEMENT (this "Agreement") is made and entered into
this 14th day of June, 2000, by and between ELTRAX SYSTEMS, INC., a Minnesota
corporation ("Pledgor"), and PNC BANK, NATIONAL ASSOCIATION, a national banking
association, as collateral and administrative agent for Lenders (as identified
below) (together with its successors in such capacity, the "Agent").
RECITALS:
Pledgor, the various financial institutions that are parties thereto
from time to time as lenders ("Lenders"), and Agent have entered into a certain
Revolving Credit and Security Agreement dated March 16, 2000 (together with all
amendments thereto, the "Credit Agreement"), pursuant to which Lenders may from
time to time make loans or extend other financial accommodations to or for the
benefit of Pledgor. To secure the payment and performance of such loans and
other obligations under the Credit Agreement, Pledgor has granted to Agent, for
the benefit of itself and Lenders, a security interest in and lien upon
substantially all of Pledgor's property.
A condition to Lenders' willingness to fund any Loans is Pledgor's
execution and delivery of this Agreement. To induce Lenders to make loans and
otherwise extend credit pursuant to the Credit Agreement, Pledgor has agreed to
grant a continuing security interest in and to the Pledged Collateral (as
hereinafter defined) as security for the timely payment and performance of the
Secured Obligations (as hereinafter defined).
NOW, THEREFORE, for Ten Dollars ($10.00) in hand paid to Pledgor and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and to secure the timely payment and performance of the
Secured Obligations (as defined below), Pledgor agrees as follows:
1. DEFINITIONS. Capitalized terms used herein, unless otherwise defined, shall
have the meaning ascribed to them in the Credit Agreement. As used herein, the
following terms shall have the following meanings:
"Company" shall mean Solemn Acquisition Corporation, a
Delaware corporation.
"Pledged Collateral" shall have the meaning ascribed to in
Section 2 hereof.
"Power" shall have the meaning ascribed to it in Section 2
hereof.
"Secured Obligations" shall mean all of the Obligations under
(and as defined in) the Credit Agreement.
"Stock" shall mean and include 3,000 shares of capital stock
of Company, evidenced by Stock Certificate No. 1.
2. PLEDGE; AGENT'S DUTIES.
(a) Pledgor hereby pledges, assigns, transfers, sets over and
delivers to Agent for its benefit and the ratable benefit of Lenders, and hereby
grants to Agent for its benefit and the ratable benefit of Lenders, a security
interest in all of the Stock and all options for the purchase of shares of
capital stock of Company,
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herewith delivered to Agent, for its benefit and the benefit of Lenders,
accompanied by stock powers ("Powers") duly executed in blank, with signatures
properly guaranteed, and all proceeds thereof and all dividends at anytime
payable in connection therewith (said Stock, Powers, proceeds and dividends
hereinafter collectively called the "Pledged Collateral") as security for the
due and punctual payment and performance of the Secured Obligations.
(b) Agent shall have no duty with respect to any of the
Pledged Collateral other than the duty to use reasonable care in the safe
custody of any tangible items of the Pledged Collateral in its possession.
Without limiting the generality of the foregoing, Agent shall be under no
obligation to sell any of the Pledged Collateral or otherwise to take any steps
necessary to preserve the value of any of the Pledged Collateral or to preserve
rights in the Pledged Collateral against any other Persons, but may do so at its
option, and all expenses incurred in connection therewith shall be for the sole
account of Pledgor. Notwithstanding the foregoing, if Pledgor gives written
notice to Agent that Pledgor desires for the Stock to be sold (other than as
expressly permitted in the Credit Agreement) and identifies to Agent a purchaser
for the Stock who is ready, willing and able to purchase the Stock for a net
purchase price that is at least equal to the total of the Secured Obligations
outstanding at the time of the sale (or, if the Stock is publicly traded on a
recognized stock exchange, the net proceeds that would be realized from a sale
of the Stock through such exchange would be at least equal to the total of the
Secured Obligations outstanding at the time of sale), then Agent will sell (or
permit Pledgor or its broker to sell) the Stock, within ten (10) days after
Agent's receipt of written notice from Pledgor requesting such sale, and all net
proceeds from such sale shall be held in trust for the benefit of Agent and
Lenders and promptly turned over to Agent to be held by Agent as collateral
security for the Secured Obligations until all of the Secured Obligations are
indefeasibly paid in full. Pledgor agrees to indemnify and defend Agent and hold
Agent harmless from and against any loss, cost or expense that Agent may ever
suffer or incur as a result of any such sale, including any taxes payable in
connection with any such sale.
3. VOTING RIGHTS. During the term of this Agreement, and so long as no Event of
Default shall exist, Pledgor shall have the right to vote all or any portion of
the Stock on all corporate questions for all purposes not inconsistent with the
terms of this Agreement or any of the other Loan Documents. To that end, if
Agent transfers all or any portion of the Pledged Collateral, into its name or
the name of its nominee, to the extent authorized to do so under this Agreement
or any of the other Loan Documents, Agent shall, upon the request of Pledgor,
unless an Event of Default shall have occurred, execute and deliver or cause to
be executed and delivered to Pledgor, proxies with respect to the Pledged
Collateral. Pledgor hereby grants to Agent, effective upon or after the
occurrence of any Event of Default, an IRREVOCABLE PROXY pursuant to which Agent
shall be entitled to exercise all voting powers pertaining to the Pledged
Collateral, including to call and attend all meetings of the shareholders of the
Company to be held from time to time with full power to act and vote in the
name, place and stead of Pledgor (whether or not the Stock shall have been
transferred into its name or the name of its nominee or nominees), give all
consents, waivers and ratifications in respect of the Pledged Collateral and
otherwise act with respect thereto as though it were the outright owner thereof,
and any and all proxies theretofore executed by Agent shall terminate and
thereafter be null and void and of no effect whatsoever.
4. COLLECTION OF DIVIDEND PAYMENTS. During the term of this Agreement, and so
long as there shall not occur or exist any Event of Default, Pledgor shall have
the right to receive and retain any and all dividends payable by Company on
account of any of the Pledged Collateral except as otherwise provided in the
Loan Documents. Upon or after the occurrence of any Event of Default, all
dividends payable by Company on account of any of the Pledged Collateral shall
be paid to Agent, for the benefit of itself and Lenders, and any such sum
received by Pledgor shall be deemed to be held by Pledgor in trust for the
benefit of Agent and Lenders and shall be forthwith turned over to Agent for
application by Agent to the Secured Obligations in such order of application as
is specified in the Credit Agreement.
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5. REPRESENTATIONS AND WARRANTIES OF PLEDGOR. Pledgor warrants and represents to
Agent and Lenders as follows (which representations and warranties shall be
deemed continuing): (a) Pledgor is the legal and beneficial owner of the Pledged
Collateral; (b) all of the shares of the Stock have been duly and validly
issued, are fully paid and nonassessable, and are owned by Pledgor free of any
Liens except for Agent's security interest hereunder; (c) the Stock constitutes
all of the issued and outstanding capital stock of the Company; (d) there are no
contractual or charter restrictions upon the voting rights or upon the transfer
of any of the Pledged Collateral; (e) Pledgor has the right to vote, pledge and
grant a security interest in or otherwise transfer the Pledged Collateral
without the consent of any other party and free of any Liens and applicable
restrictions imposed by any Governmental Body and without any restriction under
the by-laws or charter of Pledgor or Company or any agreement among Pledgor's or
Company's shareholders; (f) this Agreement has been duly authorized, executed
and delivered by Pledgor and constitutes a legal, valid and binding obligation
of Pledgor, enforceable in accordance with its terms except to the extent that
the enforceability thereof may be limited by bankruptcy, insolvency or other
similar laws of general application affecting the enforcement of creditors'
rights; (g) the execution, delivery and performance by Pledgor of this Agreement
and the exercise by Agent of its rights and remedies hereunder do not and will
not result in the violation of the by-laws or charter of Pledgor, any agreement,
indenture, instrument or Applicable Law by which Pledgor or Company is bound or
to which Pledgor or Company is subject (except Pledgor makes no representation
or warranty about Agent's prospective compliance with any federal or state laws
or regulations governing the sale or exchange of securities); and (h) no
consent, filing, approval, registration or recording is required (x) for the
pledge by Pledgor of the Pledged Collateral pursuant to this Agreement or (y) to
perfect the Lien created by this Agreement.
6. AFFIRMATIVE COVENANTS OF PLEDGOR. Until all of the Secured Obligations have
been satisfied in full and the Credit Agreement has been terminated, Pledgor
covenants that it will: (a) warrant and defend at its own expense Agent's right,
title, special property and security interest in and to the Pledged Collateral,
for its benefit and the benefit of Lenders, against the claims of any Person;
(b) promptly deliver to Agent all written notices, and will promptly give
written notice to Agent of any other notices received by Pledgor with respect to
the Pledged Collateral; and (c) deliver to Agent promptly to hold under this
Agreement any shares of the capital stock of Company subsequently acquired by
Pledgor, whether acquired by Pledgor by virtue of the exercise of any stock
options included within the Pledged Collateral or otherwise.
7. NEGATIVE COVENANTS OF PLEDGOR. Until all of the Secured Obligations have been
satisfied in full and the Credit Agreement has been terminated, Pledgor
covenants that it will not, unless expressly permitted by the Credit Agreement,
(a) sell, convey or otherwise dispose of any of the Pledged Collateral or any
interest therein; (b) incur or permit to be incurred any Lien whatsoever upon or
with respect to any of the Pledged Collateral or the proceeds thereof, other
than the security interest created hereby; (c) consent to the issuance by
Company of any new stock; or (d) consent to any merger or other consolidation of
Company with or into any corporation or other entity.
8. SUBSEQUENT CHANGES AFFECTING PLEDGED COLLATERAL. Pledgor represents to Agent
and Lenders that Pledgor has made its own arrangements for keeping informed of
changes or potential changes affecting the Pledged Collateral (including rights
to convert, rights to subscribe, payment of dividends, reorganization or other
exchanges, tender offers and voting rights), and Pledgor agrees that Agent and
Lenders shall have no responsibility or liability for informing Pledgor of any
such changes or potential changes or for taking any action or omitting to take
any action with respect thereto. Agent may, at any time that an Event of Default
exists, at its option and without notice to Pledgor, transfer or register the
Pledged Collateral or any portion thereof into its or its nominee's name with or
without any indication that such Pledged Collateral is subject to the security
interest hereunder.
9. STOCK ADJUSTMENTS. If during the term of this Agreement any stock dividend,
reclassification, readjustment or other change is declared or made in the
capital structure of Company, or any option included within the Pledged
Collateral is exercised, or both, all new, substituted and additional shares, or
other securities, issued by reason of any such change or exercise shall, if
received by Pledgor, be held in trust for
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Agent's and Lenders' benefit and shall be promptly delivered to and held by
Agent, for the benefit of itself and Lenders, under the terms of this Agreement
in the same manner as the Pledged Collateral originally pledged hereunder.
10. WARRANTS, OPTIONS AND RIGHTS. If during the term of this Agreement
subscription warrants or any other rights or options shall be issued or
exercised in connection with the Pledged Collateral, then such warrants, rights
and options shall be immediately assigned by Pledgor to Agent, for the benefit
of itself and Lenders, and all new stock or other securities so acquired by
Pledgor shall be immediately assigned to Agent, for the benefit of itself and
Lenders, to be held under the terms of this Agreement in the same manner as the
Pledged Collateral originally pledged hereunder.
11. REGISTRATION. If Agent determines that it is advisable to register under or
otherwise comply in any way with the Securities Act of 1933 or any similar
federal or state law, or if such registration or compliance is required with
respect to the securities included in the Pledged Collateral prior to sale
thereof by Agent, then upon or at any time after the occurrence of an Event of
Default, Pledgor will use its best efforts to cause any such registration to be
effectively made, at no expense to Agent and Lenders, and to continue such
registration effective for such time as may be reasonably necessary in the
opinion of Agent, and will reimburse Agent and Lenders for any expense incurred
by Agent or Lenders, including reasonable attorneys' fees and accountants' fees
and expenses, in connection therewith.
12. CONSENT. Pledgor hereby consents that from time to time, before or after the
occurrence or existence of any Default or Event of Default, with or without
notice to or assent from Pledgor, any other security at any time held by or
available to Agent or any Lender for any of the Secured Obligations may be
exchanged, surrendered, or released, and any of the Secured Obligations may be
changed, altered, renewed, extended, continued, surrendered, compromised, waived
or released, in whole or in part, as Agent or Lenders may see fit, and Pledgor
shall remain bound under this Agreement and under the other Loan Documents
notwithstanding any such exchange, surrender, release, alteration, renewal,
extension, continuance, compromise, waiver or inaction, extension of further
credit or other dealing.
13. REMEDIES UPON DEFAULT. Upon or after the occurrence of any Event of Default,
Agent shall have, in addition to any other rights given by law or the rights
given hereunder or under each of the other Loan Documents, all of the rights and
remedies with respect to the Pledged Collateral of a secured party under the
UCC. In addition, Agent may cause all or any part of the Stock held by it to be
transferred into its name or the name of its nominee or nominees, if it has not
already done so. Upon or at any time after the occurrence of an Event of
Default, Agent may sell or cause the Pledged Collateral, or any part thereof,
which shall then be or shall thereafter come into Agent's possession or custody,
to be sold at any broker's board or at public or private sale, in one or more
sales or lots, at such price as Agent may deem best, and for cash or on credit
or for future delivery, and the purchaser of any or all of the Pledged
Collateral so sold shall thereafter hold the same absolutely, free from any
claim, encumbrance or right of any kind whatsoever or Pledgor or arising through
Pledgor. If any of the Pledged Collateral is sold by Agent upon credit or for
future delivery, Agent shall not be liable for the failure of the purchaser to
pay the same and in such event Agent may resell such Pledged Collateral. Unless
the Pledged Collateral threatens to decline speedily in value or is or becomes
of a type sold on a recognized market, Agent will give Pledgor reasonable notice
of the time and place of any public sale thereof, or of the time after which any
private sale or other intended disposition is to be made. Any sale of the
Pledged Collateral conducted in conformity with reasonable commercial practices
of banks, insurance companies or other financial institutions disposing of
property similar to the Pledged Collateral shall be deemed to be commercially
reasonable. Any requirements of reasonable notice shall be met if such notice is
mailed to Pledgor, as provided in Section 21 below, at least ten (10) days
before the time of the sale or disposition. Any other requirement of notice,
demand or advertisement for sale is, to the extent permitted by Applicable Law,
waived. Agent or any Lender may, in its own name, or in the name of a designee
or nominee, buy at any public sale of the Pledged Collateral and, if permitted
by Applicable Law, buy at any private sale thereof. Pledgor will pay to Agent on
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demand all expenses (including court costs and reasonable attorneys' fees and
expenses) of, or incident to, the enforcement of any of the provisions hereof
and all other charges due against the Pledged Collateral, including taxes,
assessments or Liens upon the Pledged Collateral and any expenses, including
transfer or other taxes, arising in connection with any sale, transfer or other
disposition of Pledged Collateral. In connection with any sale of Pledged
Collateral by Agent, Agent shall have the right to execute any document or form,
in its name or in the name of Pledgor, which may be necessary or desirable in
connection with such sale, including Form 144 promulgated by the Securities and
Exchange Commission. In view of the fact that federal and state securities laws
may impose certain restrictions on the method by which a sale of the Pledged
Collateral may be effected after an Event of Default, Pledgor agrees that Agent
may, from time to time, attempt to sell all or any part of the Pledged
Collateral by means of a private placement restricting the bidders and
prospective purchasers to those who will represent and agree that they are
purchasing for investment only and not for distribution. Pledgor agrees that any
such private sales may be at prices and other terms less favorable to the seller
than if sold at public sales and that such private sales shall not by reason
thereof be deemed not to have been made in a commercially reasonable manner.
Agent shall be under no obligation to delay a sale of any of the Pledged
Collateral for the period of time necessary to permit the issuer of such
securities to register such securities for public sale under the Securities Act
of 1933, as amended, even if the issuer would agree to do so. Agent shall apply
the cash proceeds actually received from any sale or other disposition to the
reasonable expenses of retaking, holding, preparing for sale, selling and the
like, to reasonable attorneys' fees, and all legal expenses, travel and other
expenses which may be incurred by Agent in attempting to collect the Secured
Obligations or to enforce this Agreement or in the prosecution or defense of any
action or proceeding related to the subject matter of this Agreement; and then
to the Secured Obligations in the manner authorized by the Credit Agreement.
14. REDEMPTION; MARSHALING. Pledgor hereby waives and releases to the fullest
extent permitted by Applicable Law any right of equity of redemption with
respect to the Pledged Collateral before or after a sale conducted pursuant to
13 hereof. Pledgor agrees that neither Agent nor Lenders shall be required to
marshal any present or future security (including this Agreement and the Pledged
Collateral pledged hereunder) for, or guaranties of, the Secured Obligations or
any of them, or to resort to such security or guaranties in any particular
order; and all of Agent's rights hereunder and in respect of such security and
guaranties shall be cumulative and in addition to all other rights, however
existing or arising. To the fullest extent that it lawfully may, Pledgor hereby
agrees that it will not invoke any law relating to the marshaling of collateral
which might cause delay in or impede the enforcement of Agent's rights under
this Agreement or under any other instrument evidencing any of the Secured
Obligations or under which any of the Secured Obligations is outstanding or by
which any of the Secured Obligations is secured or guaranteed, and to the
fullest extent that it lawfully may Pledgor hereby irrevocably waives the
benefits of all such laws.
15. TERM. This Agreement shall become effective only when accepted by Agent and,
when so accepted, shall constitute a continuing agreement and shall remain in
full force and effect until the Credit Agreement is terminated and all of the
Secured Obligations have been fully and finally paid, satisfied and discharged,
at which time this Agreement shall terminate and Agent shall deliver to Pledgor,
at Pledgor's expense, such of the Pledged Collateral as shall not have been sold
or otherwise applied pursuant to this Agreement. Notwithstanding the foregoing,
in no event shall any termination of this Agreement terminate any indemnity set
forth in this Agreement or any of the other Loan Documents, all of which
indemnities shall survive any termination of this Agreement or any of other Loan
Documents.
16. RULES AND CONSTRUCTION. The singular shall include the plural and vice
versa, and any gender shall include any other gender as the text shall indicate.
All references to "including" shall mean "including, without limitation."
17. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon Pledgor and its
successors and assigns, and shall inure to the benefit of Agent and Lenders and
their respective successors and assigns.
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18. CONSTRUCTION AND APPLICABLE LAW. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
Applicable Law, but, if any provision of this Agreement shall be held to be
prohibited or invalid under any Applicable Law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement. This Agreement shall be governed by and construed in accordance with
the internal laws of the State of Georgia.
19. COOPERATION AND FURTHER ASSURANCES. Pledgor agrees that it will cooperate
with Agent and will upon Agent's request execute and deliver, or cause to be
executed and delivered, all such other stock powers, instruments, financing
statements, certificates, legal opinions and other documents, and will take all
such other action as Agent may request from time to time, in order to carry out
the provisions and purposes hereof, including delivering to Agent, if requested
by Agent, irrevocable proxies with respect to the Stock in form satisfactory to
Agent. Until receipt thereof, this Agreement shall constitute Pledgor's proxy to
Agent or its nominee to vote all shares of the Stock then registered in
Pledgor's name (subject to Pledgor's voting rights under Section 3 hereof).
20. AGENT'S EXONERATION. Under no circumstances shall Agent be deemed to assume
any responsibility for or obligation or duty with respect to any part or all of
the Pledged Collateral of any nature or kind, other than the physical custody
thereof, or any matter or proceedings arising out of or relating thereto. Agent
shall not be required to take any action of any kind to collect, preserve or
protect its or Pledgor's rights in the Pledged Collateral or against other
parties thereto. Agent's prior recourse to any part or all of the Pledged
Collateral shall not constitute a condition of any demand, suit or proceeding
for payment or collection of the Secured Obligations.
21. NOTICES. All notices, requests and demand to or upon either party hereto
shall be given in the manner and become effective as stipulated in the Credit
Agreement.
22. PLEDGOR'S OBLIGATIONS NOT AFFECTED. The obligations of Pledgor hereunder
shall remain in full force and effect without regard to, and shall not be
impaired by (a) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of Pledgor; (b) any exercise
or nonexercise, or any waiver, by Agent or Lenders of any right, remedy, power
or privilege under or in respect of any of the Secured Obligations or any
security thereof (including this Agreement); (c) any amendment to or
modification of the Credit Agreement, the other Loan Documents or any of the
Secured Obligations; (d) any amendment to or modification of any instrument
(other than this Agreement) securing any of the Secured Obligations; or (e) the
taking of additional security for, or any guaranty of, any of the Secured
Obligations or the release or discharge or termination of any security or
guaranty for any of the Secured Obligations, whether or not Pledgor shall have
notice or knowledge of any of the foregoing.
23. NO WAIVER, ETC. No act, failure or delay by Agent shall constitute a waiver
of any of its rights and remedies hereunder or otherwise. No single or partial
waiver by Agent or Lenders of any Default or Event of Default or right or remedy
which Agent or Lenders may have shall operate as a waiver of any other Default,
Event of Default, right or remedy or of the same Default, Event of Default,
right or remedy on a future occasion. Pledgor hereby waives presentment, notice
of dishonor and protest of all instruments included in or evidencing any of the
Secured Obligations or the Pledged Collateral, and any and all other notices and
demands whatsoever (except as expressly provided herein).
24. SECTION HEADINGS. The section headings herein are for convenience of
reference only, and shall not affect in any way the interpretation of any of the
provisions hereof.
25. AGENT APPOINTED ATTORNEY-IN-FACT. Pledgor hereby constitutes and appoints
Agent, with full power of substitution, Pledgor's attorney-in-fact for the
purpose of carrying out the provisions of this
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Agreement and taking any action and executing any instrument which Agent may
deem necessary or advisable to accomplish the purposes hereof, which appointment
is coupled with an interest and is irrevocable. Without limiting the generality
of the foregoing, Agent shall have the power to arrange for the transfer, upon
or at any time after the occurrence of an Event of Default, of any of the
Pledged Collateral on the books of Company to the name of Agent or Agent's
nominee. Pledgor agrees to indemnify and save Agent and Lenders harmless from
and against any liability or damage which Agent or any Lender may suffer or
incur, in the exercise or performance of any of Agent's powers and duties
specifically set forth herein.
26. USE OF LOAN PROCEEDS. Pledgor hereby represents and warrants to Agent and
Lenders that none of the loan proceeds heretofore and hereafter received by it
under the Credit Agreement are for the purpose of purchasing any "margin
security" as that term is defined in either Regulation U promulgated by the
Board of Governors of the Federal Reserve System, or refinancing any
indebtedness originally incurred to purchase any such "margin security."
27. WAIVER OF SUBROGATION AND OTHER CLAIMS. Pledgor recognizes that Agent, in
exercising its rights and remedies with respect to the Pledged Collateral, may
likely be unable to find one or more purchasers thereof if, after the sale of
the Pledged Collateral, Company was, because of any claim based on subrogation
or any other theory, liable to Pledgor on account of the sale by Agent of the
Pledged Collateral in full or partial satisfaction of the Secured Obligations or
liable to Pledgor on account of any indebtedness owing to Pledgor that is
subordinated to any or all of the Secured Obligations. Pledgor hereby agrees,
therefore, that if Agent sells any of the Pledged Collateral in full or partial
satisfaction of the Secured Obligations, Pledgor shall in such case have no
right or claim against Company on account of any such subordinated indebtedness
or on the theory that Pledgor has become subrogated to any claim or right of
Agent or Lenders against Company or on any basis whatsoever, and Pledgor hereby
expressly waives and relinquishes all such rights and claims against the
Company.
28. COUNTERPARTS; TELECOPIED SIGNATURES. This Agreement may be executed in any
number of counterparts and by different parties to this Agreement on separate
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute one and the same agreement. Any signature
delivered by a party by facsimile transmission shall be deemed to be an original
signature hereto.
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29. WAIVERS. PLEDGOR HEREBY WAIVES: NOTICE OF AGENT'S ACCEPTANCE OF THIS
AGREEMENT; NOTICE OF EXTENSIONS OF CREDIT, LOANS, ADVANCES OR OTHER FINANCIAL
ASSISTANCE BY AGENT AND LENDERS; TO THE FULLEST EXTENT PERMITTED BY LAW, THE
RIGHT TO TRIAL BY JURY (WHICH AGENT ALSO WAIVES) IN ANY ACTION, SUIT, PROCEEDING
OR COUNTERCLAIM CONCERNING THIS AGREEMENT OR ANY OF THE PLEDGED COLLATERAL;
PRESENTMENT AND DEMAND FOR PAYMENT OF ANY OF THE SECURED OBLIGATIONS; PROTEST
AND NOTICE OF DISHONOR OR DEFAULT WITH RESPECT TO ANY OF THE SECURED
OBLIGATIONS; AND ALL OTHER NOTICES TO WHICH PLEDGOR MIGHT OTHERWISE BE ENTITLED
EXCEPT AS HEREIN OTHERWISE EXPRESSLY PROVIDED.
IN WITNESS WHEREOF, Pledgor has signed, sealed and delivered this
Agreement on the day and year first above written.
PLEDGOR:
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ATTEST: ELTRAX SYSTEMS, INC.
By: /S/ Xxxxxxx X. Xxxxxxx, III By: /s/ Xxxxxxx X. X'Xxxxxx
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XXXXXXX X. XXXXXXX, III, Secretary XXXXXXX X. X'XXXXXX, President and Chief
Executive Officer
[CORPORATE SEAL]
Accepted in Atlanta, Georgia:
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AGENT:
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PNC BANK, NATIONAL ASSOCIATION, as Agent
By: /s/ Xxxxxx X. Xxxxxxx
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Name: Xxxxxx X. Xxxxxxx
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Title: Vice President
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