EXHIBIT 10.22
EXECUTIVE STOCK PLEDGE AGREEMENT
THIS PLEDGE AGREEMENT is made as of June 30, 1995, between Xxxxx X. XxXxxx
("Pledgor"), and Corinthian Schools, Inc., a Delaware corporation (the
"Company").
The Company and Pledgor are parties to an Executive Stock Agreement, dated
June 30, 1995, pursuant to which Pledgor purchased 2,500 shares of the Company's
Class B Common Stock, $.01 par value per share (the "Pledged Shares"), for an
aggregate purchase price of $25,000. The Company has allowed Pledgor to purchase
the Pledged Shares by delivery to the Company of a promissory note (the "Note")
in the aggregate principal amount of $24,975.00. This Pledge Agreement provides
the terms and conditions upon which the Note is secured by a pledge to the
Company of the Pledged Shares.
NOW, THEREFORE, in consideration of the premises contained herein and other
good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, and in order to induce the Company to accept the Note as partial
payment for the Pledged Shares, Pledgor and the Company hereby agree as follows:
1. Pledge. Pledgor hereby pledges to the Company, and grants to the Company
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a security interest in, the Pledged Shares as security for the prompt and
complete payment when due of the unpaid principal of and interest on the Note
and full payment and performance of the obligations and liabilities of Pledgor
hereunder.
2. Delivery of Pledged Shares. Upon the execution of this Pledge Agreement,
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Pledgor shall deliver to the Company the certificate(s) representing the Pledged
Shares, together with duly executed forms of assignment sufficient to transfer
title thereto to the Company.
3. Voting Riqhts; Cash Dividends. Notwithstanding anything to the contrary
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contained herein, during the term of this Pledge Agreement until such time as
there exists a default in the payment of principal or interest on the Note or
any other default under the Note or hereunder, Pledgor shall be entitled to all
voting rights with respect to the Pledged Shares and shall be entitled to
receive all cash dividends paid in respect of the Pledged Shares. Upon the
occurrence of and during the continuance of any such default, Pledgor shall no
longer be able to vote the Pledged Shares and the Company shall retain all such
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cash dividends payable on the Pledged Shares as additional security hereunder.
4. Stock Dividends; Distributions, etc. If, while this Pledge Agreement is
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in effect, Pledgor becomes entitled to receive or receives any securities or
other property in addition to, in substitution of, or in exchange for any of the
Pledged Shares (whether as a distribution in connection with any
recapitalization, reorganization or reclassification, a stock dividend or
otherwise), Pledgor shall accept such securities or other property on behalf of
and for the benefit of the Company as additional security for Pledgor's
obligations under the Note and shall promptly deliver such additional security
to the Company together with duly executed forms of assignment, and such
additional security shall be deemed to be part of the Pledged Shares hereunder.
5. Default. If Pledgor defaults in the payment of the principal or interest
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under the Note when it becomes due (whether upon demand, acceleration or
otherwise) or any other event of default under the Note or this Pledge Agreement
occurs (including the bankruptcy or insolvency of Pledgor), the Company may
exercise any and all the rights, powers and remedies of any owner of the Pledged
Shares (including the right to vote the shares and receive dividends and
distributions with respect to such shares) and shall have and may exercise
without demand any and all the rights and remedies granted to a secured party
upon default under the Uniform Commercial Code of California or otherwise
available to the Company under applicable law. Without limiting the foregoing,
the Company is authorized to sell, assign and deliver at its discretion, from
time to time, all or any part of the Pledged Shares at any private sale or
public auction, on not less than ten days written notice to Pledgor, at such
price or prices and upon such terms as the Company may deem advisable. Pledgor
shall have no right to redeem the Pledged Shares after any such sale or
assignment. At any such sale or auction, the Company may bid for, and become the
purchaser of, the whole or any part of the Pledged Shares offered for sale. In
case of any such sale, after deducting the costs, attorneys' fees and other
expenses of sale and delivery, the remaining proceeds of such sale shall be
applied to the principal of and accrued interest on the Note; provided that
after payment in full of the indebtedness evidenced by the Note, the balance of
the proceeds of sale then remaining shall be paid to Pledgor and Pledgor shall
be entitled to the return of any of the Pledged Shares remaining in the hands of
the Company. Pledgor shall be liable for any deficiency if the remaining
proceeds are insufficient to pay the indebtedness under the Note in full,
including the fees of any attorneys employed by the Company to collect such
deficiency.
6. Costs and Attorneys' Fees. All costs and expenses (including reasonable
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attorneys' fees) incurred in exercising any right, power or remedy conferred by
this Pledge Agreement or in
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the enforcement thereof, shall become part of the indebtedness secured hereunder
and shall be paid by Pledgor or repaid from the proceeds of the sale of the
Pledged Shares hereunder.
7. Payment of Indebtedness and Release of Pledged Shares. Upon payment in
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full of the indebtedness evidenced by the Note, the Company shall surrender the
Pledged Shares to Pledgor together with all forms of assignment.
8. No Other Liens: No Sales or Transfers. Pledgor hereby represents and
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warrants that he has good and valid title to all of the Pledge Shares, free and
clear of all liens, security interests and other encumbrances, and Pledgor
hereby covenants that, until such time as all of the outstanding principal of
and interest on the Note has been repaid, Pledgor shall not (i) create, incur,
assume or suffer to exist any pledge, security interest, encumbrance, lien or
charge of any kind against the Pledged Shares or Pledgor's rights or a holder
thereof, other than pursuant to this Agreement and the Executive Stock
Agreement, or (ii) sell or otherwise transfer any Pledged Shares or any interest
therein.
9. Further Assurances. Pledgor agrees that at any time and from time to
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time upon the written request of the Company, Pledgor shall execute and deliver
such further documents (including UCC financing statements) and do such further
acts and things as the Company may reasonably request in order to effect the
purposes of this Pledge Agreement.
10. Severability. Any provision of this Pledge Agreement which is
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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.
11. No Waiver; Cumulative Remedies. The Company shall not by any act,
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delay, omission or otherwise be deemed to have waived any of its rights or
remedies hereunder, and no waiver shall be valid unless in writing, signed by
the Company, and then only to the extent therein set forth. A waiver by the
Company of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Company would otherwise have
on any future occasion. No failure to exercise nor any delay in exercising on
the part of the Company, any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies herein provided are cumulative and may be
exercised singly or concurrently, and are not exclusive of any rights or
remedies provided by law.
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12. Waivers, Amendments; Applicable Law. None of the terms or provisions of
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this Pledge Agreement may be waived, altered, modified or amended except by an
instrument in writing, duly executed by the parties hereto. This Agreement and
all obligations of the Pledgor hereunder shall together with the rights and
remedies of the Company hereunder, inure to the benefit of the Company and its
successors and assigns. This Pledge Agreement shall be governed by, and be
construed and interpreted in accordance with, the laws of the State of
California.
IN WITNESS WHEREOF, this Pledge Agreement has been executed as of the date
first above written.
CORINTHIAN SCHOOLS, INC.
By /s/ Xxxx St. Pierre
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Its SECRETARY
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/s/ Xxxxx X. XxXxxx
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Xxxxx X. XxXxxx
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CONSENT
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The undersigned spouse of Executive hereby acknowledges that I have read
the foregoing Executive Stock Pledge Agreement and that I understand its
contents. I am aware that the Pledge Agreement provides for a security interest
in my spouse's shares of Common Stock. I agree that my spouse's interest in the
Common Stock is subject to this Pledge Agreement and any interest I may have in
such Common Stock shall be irrevocably bound by this Pledge Agreement and
further that my community property interest, if any, shall be similarly bound by
this Pledge Agreement.
I am aware that the legal, financial and other matters contained in the
Pledge Agreement are complex and I am free to seek advice with respect thereto
from independent counsel. I have either sought such advice or determined after
carefully reviewing this Pledge Agreement that I will waive such right.
/s/ Xxxxx X. XxXxxx
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[Spouse]
/s/ Xxxxx X. XxXxxx
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Witness
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