Exhibit 10.4
EXECUTION COPY
SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT
SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT, dated as of October
27, 1999, between XXXXXX & XXXXX, INC., a corporation duly organized and validly
existing under the laws of the State of Delaware (the "Company"); each of the
Subsidiaries of the Company identified under the caption "SUBSIDIARY GUARANTORS"
on the signature pages hereof (individually, a "Subsidiary Guarantor" and,
collectively, the "Subsidiary Guarantors" and, together with the Company, the
"Obligors"); and THE CHASE MANHATTAN BANK, as agent for the lenders or other
financial institutions or entities party, as lenders, to the Credit Agreement
referred to below (in such capacity, together with its successors in such
capacity, the "Administrative Agent").
The Company, the Subsidiary Guarantors, certain lenders and the
Administrative Agent (i) are parties to a Amended and Restated Credit Agreement
dated as of November 18, 1997 (as modified and supplemented and in effect from
time to time, the "Amended and Restated Credit Agreement"), providing, subject
to the terms and conditions thereof, for extensions of credit (by making of
loans and issuing letters of credit) to be made by said lenders to the Company
in an aggregate principal or face amount not exceeding $850,000,000 (as that
amount may be increased as provided therein), and (ii) concurrently herewith and
in connection with the Babbage's Etc. Acquisition, are entering into Amendment
No. 2 to the Amended and Restated Credit Agreement. The Obligors and the Agent
wish to amend the Security Agreement referred to in the Amended and Restated
Credit Agreement in certain respects and, accordingly, agree as follows:
Section 1. Definitions. Except as otherwise defined in this
Amendment, terms defined in the Amended and Restated Credit Agreement are used
herein as defined therein.
Section 2: Amendments. Subject to the satisfaction of the conditions
precedent specified in Section 3 below, but effective as of the date hereof, the
Annexes to the Security Agreement shall be amended as follows:
(a) Annex 1. Annex 1 to the Security Agreement shall be amended in its
entirety to read as Annex 1 hereto.
(b) Annex 2. Annex 2 to the Security Agreement shall be amended in its
entirety to read as Annex 2 hereto.
(c) Annex 3. Annex 3 to the Security Agreement shall be amended in its
entirety to read as Annex 3 hereto.
(d) Annex 4. Annex 4 to the Security Agreement shall be amended in its
entirety to read as Annex 4 hereto.
(e) Annex 5. Annex 5 to the Security Agreement shall be amended in its
entirety to read as Annex 5 hereto.
Section 2. Conditions Precedent. As provided in Section 2 above, the
amendments set forth in Section 2 shall become effective, as of the date hereof,
upon the due execution and delivery of this Amendment by the Obligors and the
Agent.
1
Section 3. Miscellaneous. Except as herein provided, the Security
Agreement shall remain unchanged and in full force and effect. This Amendment
may be executed in any number of counterparts, all of which taken together shall
constitute one and the same amendatory instrument and any of the parties hereto
may execute this Amendment by signing any such counterpart. This Amendment shall
be governed by, and construed in accordance with, the internal laws of the State
of New York.
[signature pages to follow]
IN WITNESS WHEREOF, the parties hereto have caused this Second
Amendment to be duly executed and delivered as of the day and year first above
written.
XXXXXX & XXXXX, INC.
By /s/Xxxxxxx Xxxxxxxx
-------------------------------
Title:Vice President, Treasurer
SUBSIDIARY GUARANTORS
X. XXXXXX BOOKSELLER, INC.
By /s/Xxxxxxx Xxxxxxxx
-------------------------------
Title:Vice President, Treasurer
XXXXXX & XXXXX BOOKSELLERS, INC.
By /s/Xxxxxxx Xxxxxxxx
-------------------------------
Title:Vice President, Treasurer
MARBORO BOOKS CORP.
By /s/Xxxxxxx Xxxxxxxx
-------------------------------
Title:Vice President, Treasurer
DOUBLEDAY BOOK SHOPS, INC.
By /s/Xxxxxxx Xxxxxxxx
-------------------------------
Title:Vice President, Treasurer
CCI HOLDINGS, INC.
By/s/Xxxxxxx Xxxxxxxx
-------------------------------
Title:Vice President, Treasurer
BABBAGE'S ETC. LLC
By /s/Xxxxxxx Xxxxxx
-------------------------------
Title: Chairman
VENDAMERICA, INC.
By /s/Xxxxxxx Xxxxxxxx
-------------------------------
Title:Vice President, Treasurer
THE CHASE MANHATTAN BANK,
as Administrative Agent
By /s/Xxxxx X. Xxxxxxx
-------------------------------
Title:Vice President
ANNEX 1
PLEDGED STOCK
XXXXXX & NOBLE, INC.
Issuer Certificate Registered Number of Shares
Nos. Owner
-------------------------- -------------- --------------------- --------------------------------
X. Xxxxxx Bookseller, C-1 Xxxxxx & Noble, Inc. 360 shares of common stock,
Inc. par value $100
Xxxxxx & Xxxxx Booksellers, 1 Xxxxxx & Noble, Inc. 100 shares of common stock,
Inc. par value $1
Marboro Books Corp. 4 Xxxxxx & Xxxxx, Inc. 10 shares of common stock, no
par value
CCI Holdings, Inc. 1 Xxxxxx & Noble, Inc. 3,000 shares of common stock,
par value $1
B&N. Sub Corp 1 Xxxxxx & Xxxxx, Inc. 100 shares of common stock,
par value $1
X. XXXXXX BOOKSELLER, INC.
Issuer Certificate Registered Number of Shares
Nos. Owner
-------------------------- -------------- --------------------- --------------------------------
Doubleday Book Shops, 5 X. Xxxxxx 1,000 shares of common stock,
Inc. Bookseller, Inc. par value $1
Babbage's Etc. LLC N/A X. Xxxxxx 86.5% Membership Interest
Bookseller, Inc.
Vendamerica, Inc. 2 X. Xxxxxx 1,000 shares of common stock,
Bookseller, Inc. no par value
XXXXXX & XXXXX BOOKSELLERS, INC.
NONE
MARBORO BOOKS CORP.
NONE
DOUBLEDAY BOOK SHOPS, INC.
NONE
CCI HOLDINGS, INC.
------------------
NONE
BABBAGE'S ETC. LLC.
-------------------
NONE
VENDAMERICA, INC
----------------
Certificate Registered
Issuer Nos. Owner Number of Shares
-------------------- ------------ ---------------------- -------------------------
Babbage's Etc. LLC N/A Vendamerica, Inc. 13.5% Membership
Interest
ANNEX 2
LIST OF PATENTS AND PATENT APPLICATIONS
XXXXXX & XXXXX, INC.
--------------------
File Patent Country Registration No. Date
-----------------------------------------------------------------------------------------------------
NONE
X. XXXXXX BOOKSELLER, INC.
--------------------------
File Patent Country Registration No. Date
-----------------------------------------------------------------------------------------------------
NONE
XXXXXX & XXXXX BOOKSELLERS, INC.
--------------------------------
File Patent Country Registration No. Date
-----------------------------------------------------------------------------------------------------
NONE
MARBORO BOOKS CORP.
-------------------
File Patent Country Registration No. Date
-----------------------------------------------------------------------------------------------------
NONE
DOUBLEDAY BOOK SHOPS, INC.
--------------------------
File Patent Country Registration No. Date
-----------------------------------------------------------------------------------------------------
NONE
CCI HOLDINGS, INC.
------------------
File Patent Country Registration No. Date
-----------------------------------------------------------------------------------------------------
NONE
BABBAGE'S ETC. LLC
------------------
File Patent Country Registration No. Date
-----------------------------------------------------------------------------------------------------
NONE
VENDAMERICA, INC.
-----------------
File Patent Country Registration No. Date
-----------------------------------------------------------------------------------------------------
NONE
ANNEX 3
LIST OF TRADE NAMES, TRADEMARKS, SERVICES MARKS,
TRADEMARK AND SERVICE XXXX REGISTRATIONS AND
APPLICATIONS FOR TRADEMARK AND SERVICE XXXX REGISTRATIONS
A. U.S. Trademarks
------------------
XXXXXX & XXXXX, INC.
--------------------
Application (A)
Registration (R)
Xxxx or Series (S) No.
-------------------------------------------------------------------
Blink 75/320,806(A)
What Are You Reading 75/057,954(A)
Premier Music (Design) 1,903,140(R)
Meet Me at Xxxxxx & Xxxxx 1,910,598(R)
The Book Lover's Second Home 1,930,860(R)
Nite Reader 2,105,941(R)
X. XXXXXX BOOKSELLER, INC.
--------------------------
Application (A)
Registration (R)
Xxxx or Series (S) No.
-------------------------------------------------------------------
Books Xxxxxx 1,667,902 (R)
X. Xxxxxx Xx. 1,684,036 (R)
X. Xxxxxx Xx. (Design) 1,667,039 (R)
Booksavers 1,597,933 (R)
P.B. Pages 1,814,553 (R)
X. Xxxxxx'x 1,293,494 (R)
Xxxxxx & Noble Jr.
(Design) 1,609,403 (R)
1
Xxxxxx & Noble Jr. 1,606,005 (R)
X. Xxxxxx Bookseller 846,824 (R)
X. Xxxxxx 1,158,498 (R)
Hooked on Books 1,147,660 (R)
People Who Know Books
Know X. Xxxxxx 1,306,552 (R)
Amaranth Press 1,404,928 (R)
Pickwick 1,047,832 (R)
Lamp of Learning
(Design) 1,607,811 (R)
XXXXXX & XXXXX BOOKSELLERS, INC.
--------------------------------
Application (A)
Registration (R)
Xxxx or Series (S) No.
-------------------------------------------------------------------
Bookstar (Design) 1,558,604 (R)
Amaranth Press 1,404,928(R)
MARBORO BOOKS CORP.
-------------------
Application (A)
Registration (R)
Xxxx or Series (S) No.
-------------------------------------------------------------------
NONE
CCI HOLDINGS, INC.
------------------
Application (A)
Registration (R)
Xxxx or Series (S) No.
-------------------------------------------------------------------
NONE
DOUBLEDAY BOOK SHOPS, INC.
--------------------------
Application (A)
Registration (R)
Xxxx or Series (S) No.
-------------------------------------------------------------------
The Old Corner (Mass.) 0025314 (R)
Bookstore
Books of All Publishers
Since 1910 (and Design) 1,516,823 (R)
BABBAGE'S ETC. LLC
------------------
Application (A)
Registration (R)
Xxxx or Series (S) No.
-------------------------------------------------------------------
Babbage's 1,345,315 (R) and
1,569,315 (R)
America's Software for 1,547,310 (R) and
the Home 1,553,597 (R)
Babbage's Software for 1,345,205 (R)
the Home
Gamestop 1,707,460 (R)
VENDAMERICA, INC.
-----------------
Application (A)
Registration (R)
Xxxx or Series (S) No.
-------------------------------------------------------------------
NONE
B. U.S. Tradenames
------------------
BABBAGE'S ETC. LLC
------------------
------------------------------------
-----------------------------------------------------------------
Xxxx
-----------------------------------------------------------------
Software Etc.
VENDAMERICA, INC.
-----------------
------------------------------------
-----------------------------------------------------------------
Xxxx
-----------------------------------------------------------------
NONE
Foreign Trademarks
------------------
XXXXXX & XXXXX, INC.
--------------------
Application (A) Registration or
Xxxx Registration (R) Country Filing Date (F)
---------------------------------------------------------------------------------------------------------------
NONE
X. XXXXXX BOOKSELLER, INC.
--------------------------
Application (A) Registration or
Xxxx Registration (R) Country Filing Date (F)
---------------------------------------------------------------------------------------------------------------
NONE
XXXXXX & XXXXX BOOKSELLERS, INC.
--------------------------------
Application (A) Registration or
Xxxx Registration (R) Country Filing Date (F)
---------------------------------------------------------------------------------------------------------------
NONE
MARBORO BOOKS CORP.
-------------------
Application (A) Registration or
Xxxx Registration (R) Country Filing Date (F)
---------------------------------------------------------------------------------------------------------------
NONE
DOUBLEDAY BOOK SHOPS, INC.
--------------------------
Application (A) Registration or
Xxxx Registration (R) Country Filing Date (F)
---------------------------------------------------------------------------------------------------------------
NONE
CCI HOLDINGS, INC.
------------------
Application (A) Registration or
Xxxx Registration (R) Country Filing Date (F)
---------------------------------------------------------------------------------------------------------------
NONE
BABBAGE'S ETC. LLC
------------------
Application (A) Registration or
Xxxx Registration (R) Country Filing Date (F)
---------------------------------------------------------------------------------------------------------------
NONE
VENDAMERICA, INC.
-----------------
Application (A) Registration or
Xxxx Registration (R) Country Filing Date (F)
---------------------------------------------------------------------------------------------------------------
NONE
ANNEX 4
LIST OF CONTRACTS, LICENSES AND OTHER AGREEMENTS
RELATING TO INTELLECTUAL PROPERTY
XXXXXX & XXXXX, INC.
--------------------
License Agreement dated as of February 11, 1989 between Xxxxxx & Noble College
Bookstores, Inc. and Xxxxxx & Xxxxx Discount Bookstores, Inc. (a predecessor of
X. Xxxxxx Bookseller, Inc.), and Consents to License Agreement Assignments,
dated as of November 18, 1988 and November 16, 1992, respectively.
X. XXXXXX BOOKSELLER, INC.
--------------------------
Letter Agreement dated as of February 21, 1989 from Xxxxxxxx'x Book Companies,
Inc. and MacMillan, Inc. to X. Xxxxxx Bookseller, Inc.
XXXXXX & NOBLE BOOKSELLERS, INC.
--------------------------------
NONE
MARBORO BOOKS CORP.
-------------------
NONE
DOUBLEDAY BOOK SHOPS, INC.
--------------------------
Trade Xxxx and Service Xxxx License dated as of May 31, 1990 between Bantam
Doubleday Dell Publishing Group, Inc. and Doubleday Book Shops, Inc.
CCI HOLDINGS, INC.
------------------
NONE
BABBAGE'S ETC. LLC
------------------
NONE
VENDAMERICA, INC.
-----------------
NONE
ANNEX 5
LIST OF LOCATIONS
XXXXXX & XXXXX, INC. X. XXXXXX BOOKSELLER, INC.
----------------------------------------------------------------------
1. 000 Xxxxx Xxxxxx 1. 000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
2. 0000 Xxx Xxxxxxx Xxxx 2. 0000 Xxx Xxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000 Xxxxxxxx, XX 00000
XXXXXX & XXXXX BOOKSELLERS, INC. 3. 000 Xxxxxxxxx Xxxxxx Xxxxxxxxx
-------------------------------- Xxxxxxxxx, XX 00000
4. 000 Xxxxxx Xxxxx
1. 000 Xxxxx Xxxxxx Xxxxxxxxx, XX 00000
Xxx Xxxx, XX 00000
5. 000 Xxxxxx Xxxxx
Xxxxxxxxx, XX 00000
2. 0000 Xxx Xxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
MARBORO BOOKS CORP.
-------------------
CCI HOLDINGS, INC.
1. 000 Xxxxx Xxxxxx ------------------
Xxx Xxxx, XX 00000
1. 000 Xxxxx Xxxxxx
2. 0000 Xxx Xxxxxxx Xxxx Xxx Xxxx, XX 00000
Xxxxxxxx, Xxx Xxxx 00000
2. 0000 Xxx Xxxxxxx Xxxx
3. Xxx Xxxx Xxxx Xxxxxxxx, XX 00000
Xxxxxxxxx, XX 00000
3. 0000 Xxxxxxxx Xxxx
Xxxxxx, XX 00000
DOUBLEDAY BOOK SHOPS, INC.
--------------------------
1. 000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
2. 0000 Xxx Xxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
BABBAGE'S ETC. LLC
------------------
1. 000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
2. 0000 Xxx Xxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
3. 0000 Xxxxxxx X. Xxxx Xxxxxx
Xxxxxxxxx, XX 00000
VENDAMERICA, INC
----------------
1. 000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
2. 0000 Xxx Xxxxxxx Xxxx
Xxxxxxxx, Xxx Xxxx 00000
3. 0000 Xxxxxxx X. Xxxx Xxxxxx
Xxxxxxxxx, XX 00000
