PLEDGE AND SECURITY AGREEMENT
EXHIBIT 10.9
THIS PLEDGE AND SECURITY AGREEMENT is made as
of March 3, 2008, by and between Xedar Corporation, a Colorado corporation
(hereinafter "Pledgor"), and Xxxx X. Xxxxxxxxxx, III (hereinafter
"Pledgee").
1. Background. As of
this date, Pledgee has loaned Pledgor up to $1,000,000 pursuant to the terms of
a secured subordinated promissory note (the “Note”) issued to
Pledgee. Therefore, the parties enter into this
Agreement.
2. Pledge. Pledgor
hereby grants a security interest to Pledgee in the following
"Collateral": All present and future property of Pledgor wherever
located and however described (including, without limitation, any and all
present and future goods, whether constituting inventory, equipment, farm
products or consumer goods (and whether or not constituting a fixture) and any
and all present and future instruments, money, documents, chattel paper,
accounts, contract rights, and general intangibles), together, in each case,
with all proceeds and products thereof. Pledgee acknowledges and
agrees that the security interest granted hereby is and shall be subordinate in
every respect to the security interest(s) of KeyBank National Association
("KeyBank") in and to the Collateral under those certain Commercial Security
Agreements dated June 7, 2007 and September 28, 2007.
3. Rights to Collateral.
During the term of this pledge, and for so long as the Pledgor is not in default
in the performance of any of the terms of this Agreement or in the payment of
the Note, the Pledgor shall have the right to possess, use, hypothecate,
transfer and otherwise dispose of the Collateral in the ordinary course of
business. Pledgor will not sell or otherwise dispose of the Collateral or any
interest therein, outside the ordinary course of business, without the prior
written consent of Pledgee except for tangible assets that are obsolete, broken
or no longer required for the operation of the Pledgor's business in the
ordinary course
4. Payment of Note. Upon full payment
of the Note, the Pledgee's rights pursuant to this Pledge and Security Agreement
shall immediately terminate and thereafter Pledgor shall own all right, title,
and interest in and to the Collateral free of any encumbrances and without
obtaining the consent of any other person.
5. Default. In
the event that the Pledgor defaults in the performance of any of the terms of
this Agreement or in the payment of the Note, then the Pledgee shall have all
the rights and remedies provided in the Uniform Commercial Code in force in the
State of Colorado at the date of this Agreement and any rights which may be
added by subsequent amendment, and, in this connection, the Pledgee may, upon 30
days’ written notice to the Pledgor sent by registered mail, without liability
for any diminution in price which may have occurred, and subject to the rights
of KeyBank, sell all the Collateral in such a manner and for such price as the
Pledgee may determine. Out of the proceeds of the sale, subject to
the rights of KeyBank, the Pledgee may retain an amount equal to the principal
and interest then due on the Note, plus the amount of the expenses of the sale,
including attorney’s fees, and shall pay any balance of such proceeds to the
Pledgor. In the event that the proceeds of any sale are insufficient
to cover the principal and interest of the Note plus expenses of the sale, the
Pledgor shall remain liable to the Pledgee for any deficiency.
6. Miscellaneous. The
rights of Pledgee shall inure to the benefit of any subsequent holder of an
interest in the Note. This Agreement shall be governed under the laws
of the State of Colorado.
IN WITNESS
WHEREOF, the undersigned has executed this Note as of the day and year
first above written.
PLEDGOR: Xedar Corporation,
a Colorado corporation
By: /s/ Xxxxxx X.
Xxxxx
Xxxxxx
X. Xxxxx, CFO
PLEDGEE:
/s/
Xxxx X. Xxxxxxxxxx, III
Xxxx X. Xxxxxxxxxx,
III
