STOCK PLEDGE AGREEMENT
This
Stock Pledge Agreement (this “Agreement”), dated as of November 30, 2007,
among LV ADMINISTRATIVE SERVICES INC., as administrative and collateral agent
for the Creditor Parties (as defined below) (the “Pledgee”), NEWMARKET
TECHNOLOGY, INC., a Nevada corporation (the “Company”), and each of the
other undersigned parties (the Company and each such other undersigned party,
a
“Pledgor” and collectively, the “Pledgors”).
BACKGROUND
The
Company has entered into a Security Agreement dated as of the date hereof (as
amended, modified, restated or supplemented from time to time, the “Security
Agreement”), pursuant to which the Pledgee and the other Creditor Parties
(as defined in the Security Agreement) party thereto provides or will provide
certain financial accommodations to the Company and certain subsidiaries of
the
Company.
In
order
to induce the Pledgee and the other Creditor Parties to provide or continue
to
provide the financial accommodations described in the Security Agreement, each
Pledgor has agreed to pledge and grant a security interest in the collateral
described herein to the Pledgee on the terms and conditions set forth
herein.
NOW,
THEREFORE, in consideration of the premises and for other good and valuable
consideration the receipt of which is hereby acknowledged, the parties hereto
agree as follows:
1. Defined
Terms. All capitalized terms used herein which are not defined
shall have the meanings given to them in the Security Agreement.
2. Pledge
and Grant of Security Interest. To secure the full and punctual
payment and performance of (the following clauses (a) and (b), collectively,
the
“Obligations”) (a) all obligations owing to Pledgee and the other
Creditor Parties under the Security Agreement and the Ancillary Agreements
(the
Security Agreement and the Ancillary Agreements, as each may be amended,
restated, modified and/or supplemented from time to time, collectively, the
“Documents”) and (b) all other obligations and liabilities of each
Pledgor to the Pledgee and the other Creditor Parties whether now existing
or
hereafter arising, direct or indirect, liquidated or unliquidated, absolute
or
contingent, due or not due and whether under, pursuant to or evidenced by a
note, agreement, guaranty, instrument or otherwise, including, without
limitation, obligations of each Pledgor for post-petition interest, fees, costs
and charges that would have accrued or been added to the Obligations but for
the
commencement of such case), each Pledgor hereby pledges, assigns, hypothecates,
transfers and grants a security interest to the Pledgee, for the ratable benefit
of the Creditor Parties, in all of the following (the
“Collateral”):
(a) the
shares of stock or other equity interests set forth on Schedule A annexed
hereto and expressly made a part hereof (together with any additional shares
of
stock or other equity interests acquired by any Pledgor, the “Pledged
Stock”), the certificates representing the Pledged Stock and all dividends,
cash, instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or
all
of the Pledged Stock;
(b) all
additional shares of stock or other equity interests of any issuer (each, an
“Issuer”) of the Pledged Stock from time to time acquired by any Pledgor
in any manner, including, without limitation, stock dividends or a distribution
in connection with any increase or reduction of capital, reclassification,
merger, consolidation, sale of assets, combination of shares, stock split,
spin-off or split-off (which shares shall be deemed to be part of the
Collateral), and the certificates representing such additional shares, and
all
dividends, cash, instruments and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange
for
any or all of such shares; and
(c) all
options and rights, whether as an addition to, in substitution of or in exchange
for any shares of any Pledged Stock and all dividends, cash, instruments and
other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all such options and
rights.
3. Delivery
of Collateral. All certificates representing or evidencing the
Pledged Stock shall be delivered to and held by or on behalf of Pledgee pursuant
hereto and shall be accompanied by duly executed instruments of transfer or
assignments in blank, all in form and substance satisfactory to the
Pledgee. Each Pledgor hereby authorizes the Issuer upon demand by the
Pledgee to deliver any certificates, instruments or other distributions issued
in connection with the Collateral directly to the Pledgee, in each case to
be
held by the Pledgee, subject to the terms hereof. Upon the occurrence
and during the continuance of an Event of Default (as defined below), the
Pledgee shall have the right, during such time in its discretion and without
notice to the Pledgor, to transfer to or to register in the name of the Pledgee
or any of its nominees any or all of the Pledged Stock. In addition,
the Pledgee shall have the right at such time to exchange certificates or
instruments representing or evidencing Pledged Stock for certificates or
instruments of smaller or larger denominations.
4. Representations
and Warranties of each Pledgor. Each Pledgor jointly and
severally represents and warrants to the Pledgee (which representations and
warranties shall be deemed to continue to be made until all of the Obligations
have been paid in full in cash and each Document and each agreement and
instrument entered into in connection therewith has been irrevocably terminated)
that:
(a) the
execution, delivery and performance by each Pledgor of this Agreement and the
pledge of the Collateral hereunder do not and will not result in any violation
of any agreement, indenture, instrument, license, judgment, decree, order,
law,
statute, ordinance or other governmental rule or regulation applicable to any
Pledgor;
(b) this
Agreement constitutes the legal, valid, and binding obligation of each Pledgor
enforceable against each Pledgor in accordance with its terms;
(c) (i)
all
Pledged Stock owned by each Pledgor is set forth on Schedule A hereto and
(ii) each Pledgor is the direct and beneficial owner of each share of the
Pledged Stock;
(d) all
of
the shares of the Pledged Stock have been duly authorized, validly issued and
are fully paid and non-assessable;
(e) no
consent or approval of any person, corporation, governmental body, regulatory
authority or other entity, is or will be necessary for (i) the execution,
delivery and performance of this Agreement, (ii) the exercise by the Pledgee
of
any rights with respect to the Collateral or (iii) the pledge and assignment
of,
and the grant of a security interest in, the Collateral hereunder;
(f) there
are
no pending or, to the best of Pledgor’s knowledge, threatened actions or
proceedings before any court, judicial body, administrative agency or arbitrator
which may materially adversely affect the Collateral;
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(g) each
Pledgor has the requisite power and authority to enter into this Agreement
and
to pledge and assign the Collateral to the Pledgee, for the ratable benefit
of
the Creditor Parties, in accordance with the terms of this
Agreement;
(h) each
Pledgor owns each item of the Collateral and, except for the pledge and security
interest granted to the Pledgee hereunder, the Collateral shall be, immediately
following the closing of the transactions contemplated by the Documents, free
and clear of any other security interest, mortgage, pledge, claim, lien, charge,
hypothecation, assignment, offset or encumbrance whatsoever (collectively,
“Liens”);
(i) there
are
no restrictions on transfer of the Pledged Stock contained in the certificate
of
incorporation or by-laws (or equivalent organizational documents) of any Issuer
or otherwise which have not otherwise been enforceably and legally waived by
the
necessary parties;
(j) none
of
the Pledged Stock has been issued or transferred in violation of the securities
registration, securities disclosure or similar laws of any jurisdiction to
which
such issuance or transfer may be subject;
(k) the
pledge and assignment of the Collateral and the grant of a security interest
under this Agreement vest in the Pledgee, for the ratable benefit of the
Creditor Parties, all rights of each Pledgor in the Collateral as contemplated
by this Agreement; and
(l) the
Pledged Stock constitutes the percentage of the issued and outstanding shares
of
capital stock of each Issuer as set forth on Schedule A attached
hereto.
5. Covenants. Each
Pledgor jointly and severally covenants that, until the Obligations shall be
indefeasibly satisfied in full in cash and each Document and each agreement
and
instrument entered into in connection therewith is irrevocably
terminated:
(a) No
Pledgor will sell, assign, transfer, convey, or otherwise dispose of its rights
in or to the Collateral or any interest therein; nor will any Pledgor create,
incur or permit to exist any Lien whatsoever with respect to any of the
Collateral or the proceeds thereof other than that created hereby.
(b) Each
Pledgor will, at its expense, defend the Pledgee’s right, title and security
interest in and to the Collateral against the claims of any other
party.
(c) Each
Pledgor shall at any time, and from time to time, upon the written request
of
the Pledgee, execute and deliver such further documents and do such further
acts
and things as the Pledgee may reasonably request in order to effectuate the
purposes of this Agreement including, but without limitation, delivering to
the
Pledgee, upon the occurrence of an Event of Default, irrevocable proxies in
respect of the Collateral in form satisfactory to the Pledgee. Until
receipt thereof, so long as an Event of Default has occurred and is continuing
beyond any applicable grace period, this Agreement shall constitute the
Pledgor’s proxy to the Pledgee or its nominee to vote all shares of Collateral
then registered in each Pledgor’s name.
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(d) No
Pledgor will consent to or approve the issuance of (i) any additional shares
of
any class of capital stock or other equity interests of the Issuer; or (ii)
any
securities convertible either voluntarily by the holder thereof or automatically
upon the occurrence or nonoccurrence of any event or condition into, or any
securities exchangeable for, any such shares, unless, in either case, such
shares are pledged as Collateral pursuant to this Agreement.
6. Voting
Rights and Dividends. In addition to the Pledgee’s rights and
remedies set forth in Section 8 hereof, in case an Event of Default shall have
occurred and be continuing, beyond any applicable cure period, the Pledgee
shall
(i) be entitled to vote the Collateral, (ii) be entitled to give consents,
waivers and ratifications in respect of the Collateral (each Pledgor hereby
irrevocably constituting and appointing the Pledgee, with full power of
substitution, the proxy and attorney-in-fact of each Pledgor for such purposes)
and (iii) be entitled to collect and receive for its own use cash dividends
paid
on the Collateral which dividends shall be applied as set forth in Section
10
hereof. Unless and until there shall have occurred and be continuing
an Event of Default, each Pledgor shall be permitted to exercise or refrain
from
exercising any voting rights or other powers; provided that, in each case,
no
vote shall be cast or any consent, waiver or ratification given or any action
taken or omitted to be taken if, in the reasonable judgment of the Pledgee,
such
action would have a material adverse effect on the value of the Collateral
or
any part thereof; and, provided, further, that each Pledgor shall
give at least five (5) days’ written notice of the manner in which such Pledgor
intends to exercise, or the reasons for refraining from exercising, any voting
rights or other powers other than with respect to any election of directors
and
voting with respect to any incidental matters. Following the
occurrence and during the continuance of an Event of Default, all rights of
each
Pledgor to vote and to give consents, waivers and ratifications shall cease
and
all dividends and all other distributions in respect of any of the Collateral,
shall be delivered to the Pledgee to hold as Collateral and shall, if received
by any Pledgor, be received in trust for the benefit of the Pledgee, be
segregated from the other property or funds of any other Pledgor, and be
forthwith delivered to the Pledgee as Collateral in the same form as so received
(with any necessary endorsement).
7. Event
of Default. An “Event of Default” under this Agreement
shall occur upon the happening of any of the following events:
(a) An
“Event of Default” under any Document or any agreement or note related to
any Document shall have occurred and be continuing beyond any applicable cure
period;
(b) Any
Pledgor shall breach any term or provision of any Document to which its is
a
party, including, without limitation, this Agreement, in any material respect,
which breach is not cured within any applicable cure or grace period provided
in
respect thereof (if any);
(c) Any
representation or warranty of any Pledgor made herein, in any Document or in
any
agreement, statement or certificate given in writing pursuant hereto or thereto
or in connection herewith or therewith shall be false or misleading in any
material respect;
(d) Any
attachments or levies in excess of $50,000 in the aggregate are made upon any
Pledgor’s assets or a judgment is rendered against any Pledgor’s property
involving a liability of more than $50,000 which shall not have been vacated,
discharged, stayed or bonded within thirty (30) days form the entry thereof;
or
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(e) Any
Pledgor shall (i) apply for, consent to, or suffer to exist the appointment
of,
or the taking of possession by, a receiver, custodian, trustee, liquidator
or
other fiduciary of itself or of all or a substantial part of its property,
(ii)
make a general assignment for the benefit of creditors, (iii) commence a
voluntary case under any state or federal bankruptcy laws (as now or hereafter
in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a petition
seeking to take advantage of any other law providing for the relief of debtors,
(vi) not challenge within ten (10) days of the filing thereof, or fail to have
dismissed within forty five (45) days, any petition filed against it in any
involuntary case under such bankruptcy laws, or (vii) take any action for the
purpose of effecting any of the foregoing.
8. Remedies. In
case an Event of Default shall have occurred and is continuing, the Pledgee
may:
(a) Transfer
any or all of the Collateral into its name, or into the name of its nominee
or
nominees;
(b) Exercise
all corporate rights with respect to the Collateral including, without
limitation, all rights of conversion, exchange, subscription or any other
rights, privileges or options pertaining to any shares of the Collateral as
if
it were the absolute owner thereof, including, but without limitation, the
right
to exchange, at its discretion, any or all of the Collateral upon the merger,
consolidation, reorganization, recapitalization or other readjustment of the
Issuer thereof, or upon the exercise by the Issuer of any right, privilege
or
option pertaining to any of the Collateral, and, in connection therewith, to
deposit and deliver any and all of the Collateral with any committee,
depository, transfer agent, registrar or other designated agent upon such terms
and conditions as it may determine, all without liability except to account
for
property actually received by it; and
(c) Subject
to any requirement of applicable law, sell, assign and deliver the whole or,
from time to time, any part of the Collateral at the time held by the Pledgee,
at any private sale or at public auction, with or without demand, advertisement
or notice of the time or place of sale or adjournment thereof or otherwise
(all
of which are hereby waived, except such notice as is required by applicable
law
and cannot be waived), for cash or credit or for other property for immediate
or
future delivery, and for such price or prices and on such terms as the Pledgee
in its sole discretion may determine, or as may be required by applicable
law.
Each
Pledgor hereby waives and releases any and all right or equity of redemption,
whether before or after sale hereunder. At any such sale, unless
prohibited by applicable law, the Pledgee may bid for and purchase the whole
or
any part of the Collateral so sold free from any such right or equity of
redemption. All moneys received by the Pledgee hereunder, whether
upon sale of the Collateral or any part thereof or otherwise, shall be held
by
the Pledgee and applied by it as provided in Section 10 hereof. No
failure or delay on the part of the Pledgee in exercising any rights hereunder
shall operate as a waiver of any such rights nor shall any single or partial
exercise of any such rights preclude any other or future exercise thereof or
the
exercise of any other rights hereunder. The Pledgee shall have no
duty as to the collection or protection of the Collateral or any income thereon
nor any duty as to preservation of any rights pertaining thereto, except to
apply the funds in accordance with the requirements of Section 10
hereof. The Pledgee may exercise its rights with respect to property
held hereunder without resort to other security for or sources of reimbursement
for the Obligations. In addition to the foregoing, Pledgee shall have
all of the rights, remedies and privileges of a secured party under the Uniform
Commercial Code of New York (the “UCC”) regardless of the jurisdiction in
which enforcement hereof is sought.
9. Private
Sale. Each Pledgor recognizes that the Pledgee may be unable to
effect (or to do so only after delay which would adversely affect the value
that
might be realized from the Collateral) a public sale of all or part of the
Collateral by reason of certain prohibitions contained in the Securities Act,
and may be compelled to resort to one or more private sales to a restricted
group of purchasers who will be obliged to agree, among other things, to acquire
such Collateral for their own account, for investment and not with a view to
the
distribution or resale thereof. Each Pledgor agrees that any such
private sale may be at prices and on terms less favorable to the seller than
if
sold at public sales and that such private sales shall be deemed to have been
made in a commercially reasonable manner. Each Pledgor agrees that
the Pledgee has no obligation to delay sale of any Collateral for the period
of
time necessary to permit the Issuer to register the Collateral for public sale
under the Securities Act.
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10. Proceeds
of Sale. The proceeds of any collection, recovery, receipt,
appropriation, realization or sale of the Collateral shall be applied by the
Pledgee as follows:
(a) First,
to
the payment of all costs, reasonable expenses and charges of the Pledgee and
to
the reimbursement of the Pledgee for the prior payment of such costs, reasonable
expenses and charges incurred in connection with the care and safekeeping of
the
Collateral (including, without limitation, the reasonable expenses of any sale
or any other disposition of any of the Collateral), reasonable attorneys’ fees
and reasonable expenses, court costs, any other fees or expenses incurred or
expenditures or advances made by the Pledgee in the protection, enforcement
or
exercise of its rights, powers or remedies hereunder;
(b) Second,
to the payment of the Obligations, in whole or in part, in such order as the
Pledgee may elect, whether or not such Obligations are then due;
(c) Third,
to
such persons, firms, corporations or other entities as required by applicable
law including, without limitation, Section 9-615(a)(3) of the UCC;
and
(d) Fourth,
to the extent of any surplus to the Pledgors or as a court of competent
jurisdiction may direct.
In
the
event that the proceeds of any collection, recovery, receipt, appropriation,
realization or sale are insufficient to satisfy the Obligations, each Pledgor
shall be jointly and severally liable for the deficiency plus the costs and
reasonable fees of any attorneys employed by the Pledgee to collect such
deficiency.
11. Waiver
of Marshaling. Each Pledgor hereby waives any right to compel any
marshaling of any of the Collateral.
12. No
Waiver. Any and all of the Pledgee’s rights with respect to the
Liens granted under this Agreement shall continue unimpaired, and Pledgor shall
be and remain obligated in accordance with the terms hereof, notwithstanding
(a)
the bankruptcy, insolvency or reorganization of any Pledgor, (b) the release
or
substitution of any item of the Collateral at any time, or of any rights or
interests therein, or (c) any delay, extension of time, renewal, compromise
or
other indulgence granted by the Pledgee in reference to any of the
Obligations. Each Pledgor hereby waives all notice of any such delay,
extension, release, substitution, renewal, compromise or other indulgence,
and
hereby consents to be bound hereby as fully and effectively as if such Pledgor
had expressly agreed thereto in advance. No delay or extension of
time by the Pledgee in exercising any power of sale, option or other right
or
remedy hereunder, and no failure by the Pledgee to give notice or make demand,
shall constitute a waiver thereof, or limit, impair or prejudice the Pledgee’s
right to take any action against any Pledgor or to exercise any other power
of
sale, option or any other right or remedy.
13. Expenses. The
Collateral shall secure, and each Pledgor shall pay to the Pledgee on demand,
from time to time, all reasonable costs and expenses, (including but not limited
to, reasonable attorneys’ fees and costs, taxes, and all transfer, recording,
filing and other charges) of, or incidental to, the custody, care, transfer,
administration of the Collateral or any other collateral, or in any way relating
to the enforcement, protection or preservation of the rights or remedies of
the
Pledgee under this Agreement or with respect to any of the
Obligations.
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14. The
Pledgee Appointed Attorney-In-Fact and Performance by the
Pledgee. Upon the occurrence of an Event of Default, each Pledgor
hereby irrevocably constitutes and appoints the Pledgee as such Pledgor’s true
and lawful attorney-in-fact, with full power of substitution, to execute,
acknowledge and deliver any instruments and to do in such Pledgor’s name, place
and stead, all such acts, things and deeds for and on behalf of and in the
name
of such Pledgor, which such Pledgor could or might do or which the Pledgee
may
deem necessary, desirable or convenient to accomplish the purposes of this
Agreement, including, without limitation, to execute such instruments of
assignment or transfer or orders and to register, convey or otherwise transfer
title to the Collateral into the Pledgee’s name. Each Pledgor hereby
ratifies and confirms all that said attorney-in-fact may so do and hereby
declares this power of attorney to be coupled with an interest and
irrevocable. If any Pledgor fails to perform any agreement herein
contained, the Pledgee may itself perform or cause performance thereof, and
any
costs and expenses of the Pledgee incurred in connection therewith shall be
paid
by the Pledgors as provided in Section 10 hereof.
15. Recapture. Notwithstanding
anything to the contrary in this Agreement, if the Pledgee or any other Creditor
Party receives any payment or payments on account of the Obligations, which
payment or payments or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside and/or required to be repaid to
a
trustee, receiver, or any other party under the United States Bankruptcy Code,
as amended, or any other federal or state bankruptcy, reorganization, moratorium
or insolvency law relating to or affecting the enforcement of creditors’ rights
generally, common law or equitable doctrine, then to the extent of any sum
not
finally retained by the Pledgee or such other Creditor Party, each Pledgor’s
obligations to the Pledgee and the other Creditor Parties shall be reinstated
and this Agreement shall remain in full force and effect (or be reinstated)
until payment shall have been made to the Pledgee and the other Creditor
Parties, which payment shall be due on demand.
16. NewMarket
China. The Pledgor hereby instructs NewMarket China, Inc.
(“NewMarket China”) to act upon any instruction delivered to it by the
Pledgee with respect to the Pledged Stock issued by NewMarket China to Pledgor
without seeking any further instruction from the Pledgor, and, by its
acknowledgement hereof, NewMarket China hereby agrees to do
so. NewMarket China, by its written acknowledgment and acceptance
hereof, hereby acknowledges receipt of a copy of this Agreement and agrees
promptly to note on its books and records the security interest granted under
this Agreement. NewMarket China also waives any rights or
requirements at any time hereafter to receive a copy of this Agreement in
connection with the registration of any Collateral in the name of the Pledgee
or
its nominee or the exercise of voting rights by the Pledgee or its nominee
in
accordance with the terms of this Agreement.
17. Captions. All
captions in this Agreement are included herein for convenience of reference
only
and shall not constitute part of this Agreement for any other
purpose.
18. Miscellaneous.
(a) This
Agreement constitutes the entire and final agreement among the parties with
respect to the subject matter hereof and may not be changed, terminated or
otherwise varied except by a writing duly executed by the parties
hereto.
(b) No
waiver
of any term or condition of this Agreement, whether by delay, omission or
otherwise, shall be effective unless in writing and signed by the party sought
to be charged, and then such waiver shall be effective only in the specific
instance and for the purpose for which given.
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(c) In
the
event that any provision of this Agreement or the application thereof to any
Pledgor or any circumstance in any jurisdiction governing this Agreement shall,
to any extent, be invalid or unenforceable under any applicable statute,
regulation, or rule of law, such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform
to
such statute, regulation or rule of law, and the remainder of this Agreement
and
the application of any such invalid or unenforceable provision to parties,
jurisdictions, or circumstances other than to whom or to which it is held
invalid or unenforceable shall not be affected thereby, nor shall same affect
the validity or enforceability of any other provision of this
Agreement.
(d) This
Agreement shall be binding upon each Pledgor, and each Pledgor’s successors and
assigns, and shall inure to the benefit of the Pledgee and its successors and
assigns for the ratable benefit of the Creditor Parties.
(e) Any
notice or other communication required or permitted pursuant to this Agreement
shall be given in accordance with the Security Agreement.
(f) THIS
AGREEMENT AND THE OTHER DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW.
(g) EACH
PLEDGOR HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
IN
THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
TO
HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY PLEDGOR, ON THE ONE HAND,
AND THE PLEDGEE AND/OR ANY OTHER CREDITOR PARTY, ON THE OTHER HAND, PERTAINING
TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS OR TO ANY MATTER ARISING OUT
OF
OR RELATED TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS, PROVIDED,
THAT EACH PLEDGOR ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE
TO BE
HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK;
AND FURTHERPROVIDED, THAT NOTHING IN THIS AGREEMENT SHALL BE
DEEMED OR OPERATE TO PRECLUDE THE PLEDGEE OR ANY OTHER CREDITOR PARTY FROM
BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
THE INDEBTEDNESS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
INDEBTEDNESS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
PLEDGEE. EACH PLEDGOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO
SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
PLEDGOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF
PERSONAL JURISDICTION, IMPROPER VENUE OR
FORUMNONCONVENIENS. EACH PLEDGOR HEREBY WAIVES
PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY
SUCH
ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER
PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PLEDGOR
AT
THE ADDRESS SET FORTH IN THE SECURITY AGREEMENT AND THAT SERVICE SO MADE SHALL
BE DEEMED COMPLETED UPON SUCH PLEDGOR’S ACTUAL RECEIPT THEREOF.
(h) THE
PARTIES HERETO DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE
BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE
ALL
RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE
ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PLEDGEE
AND/OR ANY OTHER CREDITOR PARTY, AND/OR ANY PLEDGOR ARISING OUT OF, CONNECTED
WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEN IN
CONNECTION WITH THIS AGREEMENT, ANY OTHER DOCUMENT OR THE TRANSACTIONS RELATED
HERETO OR THERETO.
(i) It
is
understood and agreed that any person or entity that desires to become a Pledgor
hereunder, or is required to execute a counterpart of this Agreement after
the
date hereof pursuant to the requirements of any Document, shall become a Pledgor
hereunder by (x) executing a Joinder Agreement in form and substance
satisfactory to the Pledgee, (y) delivering supplements to such exhibits and
annexes to such Documents as the Pledgee shall reasonably request and/or set
forth in such joinder agreement and (z) taking all actions as specified in
this
Agreement as would have been taken by such Pledgor had it been an original
party
to this Agreement, in each case with all documents required above to be
delivered to the Pledgee and with all documents and actions required above
to be
taken to the reasonable satisfaction of the Pledgee.
(j) This
Agreement may be executed in one or more counterparts, each of which shall
be
deemed an original and all of which when taken together shall constitute one
and
the same agreement. Any signature delivered by a party by facsimile
or electronic transmission shall be deemed an original signature
hereto.
[Remainder
of Page Intentionally Left Blank]
8
IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
and
year first written above.
NEWMARKET TECHNOLOGY, INC. | |||
|
By:
|
/s/ Xxxxxx X. Xxxxxx | |
Name Xxxxxx X. Xxxxxx | |||
Title CEO | |||
LV ADMINISTRATIVE SERVICES INC., | |||
as Agent | |||
|
By:
|
/s/ Xxxxx Xxxxxxxxx | |
Name Xxxxx Xxxxxxxxx | |||
Title Authorized Signatory | |||
Acknowledged
and accepted this
______
day of November 2007.
NEWMARKET
CHINA, INC.
|
|||
|
By:
|
/s/ Xxxxxx X. Xxxxx | |
Name Xxxxxx X. Xxxxx | |||
Title CFO | |||
9
SCHEDULE
A
Pledged
Stock
Pledgor
|
Issuer
|
Class
of Stock
|
Stock
Certificate Number
|
Par
Value
|
Number
of Shares
|
%
of outstanding Shares
|
NewMarket
Technology, Inc.
|
IP
Global Voice, Inc.
|
Common
|
22
|
$.0001
|
4,075,000
|
65%
|
NewMarket
Technology, Inc.
|
NewMarket
China, Inc.
|
Series
A Preferred
|
N/A
|
No
Par
|
250,000
|
100%
|
NewMarket
Technology, Inc.
|
NewMarket
Broadband, Inc.
|
Common
|
1
|
No
Par
|
1,000
|
100%
|
NewMarket
Technology, Inc.
|
Netsco,
Inc.
|
Common
|
2
|
No
Par
|
100
|
100%
|
NewMarket
Technology, Inc.
|
NewMarket
Intellectual Property, Inc.
|
Common
|
1
|
No
Par
|
1,000
|
100%
|
NewMarket
Technology, Inc.
|
RedMoon,
Inc.
|
Common
|
44
|
$.0001
|
8,032,817
|
11%
|
NewMarket
Technology, Inc.
|
Defense
Technology Systems, Inc.
|
Class
C Preferred
|
100
|
$.01
|
600,000
|
100%
|
NewMarket
Technology, Inc.
|
Defense
Technology Systems, Inc.
|
Class
D Preferred
|
200
|
$.01
|
3,400,000
|
100%
|
NewMarket
Technology, Inc.
|
Broker
Payment Services
|
|||||
NewMarket
Technology, Inc.
|
TekVoice
Communications, Inc.
|
Common
|
6
|
$.001
|
762,122
|
10%
|
NewMarket
Technology, Inc.
|
VirtualHealth
Technologies, Inc.
|
Common
|
6122
|
$.001
|
1,400,000
|
3%
|