Amended and Restated Indemnification Collateral Account Security and Control Agreement
Exhibit 4.2
Amended and Restated
Indemnification Collateral Account Security
and Control Agreement
Indemnification Collateral Account Security
and Control Agreement
among
MetLife, Inc.,
as Secured Party
as Secured Party
ALICO Holdings LLC,
as Pledgor
as Pledgor
Deutsche Bank Trust Company Americas,
as Securities Intermediary and Pledge Collateral Agent
as Securities Intermediary and Pledge Collateral Agent
Deutsche Bank Trust Company Americas,
as Stock Purchase Contract Agent
as Stock Purchase Contract Agent
and
American International Group, Inc.
Dated as of March 8, 2011
Table of Contents
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ARTICLE I |
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Definitions |
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SECTION 1.1 Certain Terms Defined; Interpretation
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2 | |||||
ARTICLE II |
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Grant of Security Interests; Financing Statements |
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SECTION 2.1 Grant of Security Interests
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7 | |||||
SECTION 2.2 Financing Statements
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8 | |||||
SECTION 2.3 Satisfaction of Obligation to Transfer Collateral
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8 | |||||
SECTION 2.4 Name and Address of Pledgor
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8 | |||||
SECTION 2.5 Secured Party and Pledge Collateral Agent May Perform
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9 | |||||
SECTION 2.6 Secured Party and Pledge Collateral Agent Appointed Attorneys-in-Fact
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9 | |||||
SECTION 2.7 Taxes
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9 | |||||
SECTION 2.8 Voting Rights
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10 | |||||
SECTION 2.9 Ability to Enforce Collateral
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10 | |||||
SECTION 2.10 Security Interest Absolute
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13 | |||||
SECTION 2.11 Further Assurances
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ARTICLE III |
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Appointment and Status of Securities Intermediary and Pledge Collateral Agent; Indemnification Collateral Account |
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SECTION 3.1 Appointment; Identification of Indemnification Collateral
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14 | |||||
SECTION 3.2 Status of Securities Intermediary
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SECTION 3.3 Representations, Warranties and Covenants of Securities Intermediary
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15 | |||||
SECTION 3.4 Representations, Warranties and Covenants of Pledge Collateral Agent
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SECTION 3.5 Representations, Warranties and Covenants of Pledgor
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17 | |||||
SECTION 3.6 Use of Depositories
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SECTION 3.7 Merger, Conversion, Consolidation or Succession to Business
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SECTION 3.8 Rights in Other Capacities
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ARTICLE IV |
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Collateral Services |
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SECTION 4.1 Delivery of Indemnification Collateral
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18 | |||||
SECTION 4.2 Release of Indemnification Collateral
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SECTION 4.3 Substitutions
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19 | |||||
SECTION 4.4 Common Equity Units as Collateral.
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20 | |||||
SECTION 4.5 Treatment of Proceeds
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22 | |||||
SECTION 4.6 Exclusive Control
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SECTION 4.7 Statements
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23 | |||||
SECTION 4.8 Notice of Adverse Claims
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23 | |||||
SECTION 4.9 Subordination of Lien; Set-off
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SECTION 4.10 No Release Without Consent
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24 |
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ARTICLE V |
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General Terms and Conditions |
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SECTION 5.1 Standard of Care; Limitation of Liability; Indemnification.
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SECTION 5.2 No Obligation Regarding Quality of Collateral
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SECTION 5.3 No Responsibility Concerning Indemnification Provisions
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26 | |||||
SECTION 5.4 No Duty of Oversight
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SECTION 5.5 Advice of Counsel
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26 | |||||
SECTION 5.6 No Collection Obligations
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SECTION 5.7 Fees and Expenses
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SECTION 5.8 Effectiveness of Instructions; Reliance; Risk Acknowledgements; Additional Terms.
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26 | |||||
SECTION 5.9 Certain Rights.
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SECTION 5.10 Indemnification Collateral Account Disclosure
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29 | |||||
SECTION 5.11 Force Majeure
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SECTION 5.12 No Implied Duties
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ARTICLE VI |
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Miscellaneous |
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SECTION 6.1 Resignation or Removal of Securities Intermediary and Pledge Collateral Agent
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29 | |||||
SECTION 6.2 Termination
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30 | |||||
SECTION 6.3 Certificates of Authorized Persons
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SECTION 6.4 Notices.
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30 | |||||
SECTION 6.5 Cumulative Rights; No Waiver
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SECTION 6.6 Severability; Amendments; Assignment
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SECTION 6.7 Governing Law; Jurisdiction; Waiver of Immunity; Jury Trial Waiver
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SECTION 6.8 No Third Party Beneficiaries
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SECTION 6.9 Counterparts
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32 | |||||
SECTION 6.10 USA PATRIOT ACT
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32 | |||||
SECTION 6.11 Agreement of Stock Purchase Contract Agent
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33 | |||||
SCHEDULE I Contact Persons for Confirmation |
SI-1 | |||||
SCHEDULE II Investment Guidelines |
SII-1 |
ii
This Amended and Restated Indemnification Collateral Account Security and Control
Agreement, dated as of March 8, 2011 (the “Agreement”), by and among MetLife, Inc., a
Delaware corporation, as secured party for its own benefit and for the benefit of all other
Acquiror Indemnified Parties (as defined in the Amended Stock Purchase Agreement referred to below)
(“Secured Party”), ALICO Holdings LLC, a Delaware limited liability company (“Pledgor”), Deutsche
Bank Trust Company Americas, a New York banking corporation, in its capacity as securities
intermediary hereunder (“Securities Intermediary”) and Deutsche Bank Trust Company Americas, a New
York banking corporation, as pledge collateral agent hereunder (“Pledge Collateral Agent”), for
certain limited purposes, Deutsche Bank Trust Company Americas, a New York banking corporation, in
its capacity as Stock Purchase Contract Agent (“Stock Purchase Contract Agent”) under the Pledge
Agreement described below, and, for certain limited purposes, American International Group, Inc., a
Delaware corporation (“AIG”).
W i t n e s s e t h:
Whereas, Secured Party, AIG, and Pledgor have entered into a Stock Purchase
Agreement, dated as of March 7, 2010 (as the same may be amended from time to time, the “Stock
Purchase Agreement”), containing provisions in Article XI thereof for the indemnification of
Secured Party and the other Acquiror Indemnified Parties (Article XI thereof, other than the
provisions in Section 11.03 thereof, being referred to as the “Indemnification Provisions”);
Whereas, pursuant to the Stock Purchase Agreement, Secured Party, AIG, Pledgor and
certain other parties named therein have entered into the Ancillary Agreements (as defined below),
in furtherance of the agreements and arrangements contemplated in the Stock Purchase Agreement;
Whereas, pursuant to the Investor Rights Agreement, dated as of November 1, 2010 (as
the same may be amended from time to time, the “Investor Rights Agreement”), by and among Secured
Party, AIG and Pledgor, Secured Party has granted to Pledgor certain rights relating to the
registration of the Subject Securities (as defined therein) and set forth certain agreements with
respect to Pledgor’s ownership of the Securities (as defined therein) and Subject Securities;
Whereas, Secured Party, AIG, and Pledgor have entered into the Coordination
Agreement, dated as of March 1, 2011 (as the same may be amended from time to time, the
“Coordination Agreement”), which, among other things, (i) amends certain indemnification provisions
of the Stock Purchase Agreement (the Stock Purchase Agreement, as amended by the Coordination
Agreement, the “Amended Stock Purchase Agreement”) and (ii) provides for a limited waiver of the
requirements and restrictions relating to the Subject Securities under the Investor Rights
Agreement (as amended, the “Amended Investor Rights Agreement”) solely in connection with the AIG
Public Offerings (as defined therein);
Whereas, Secured Party and Deutsche Bank Trust Company Americas, a New York banking
corporation, as Stock Purchase Contract Agent, acting on behalf of all holders of Common Equity
Units (as defined below), including Pledgor, and Securities Intermediary in its capacity as
Collateral Agent (in such capacity, “Collateral Agent”), have entered into a Pledge Agreement,
dated as of November 1, 2010 (as the same may by amended from time to time, the
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“Pledge Agreement”), in connection with the issuance of Common Equity Units to Pledgor as part
of the consideration paid to Pledgor by Secured Party pursuant to the Stock Purchase Agreement;
Whereas, pursuant to the Stock Purchase Agreement, Secured Party, AIG and Pledgor
have entered into an Indemnification Collateral Account Security and Control Agreement, dated as of
November 1, 2010 (the “Indemnification Control Agreement”), whereby Securities Intermediary and
Pledge Collateral Agent act on behalf of Secured Party and Pledgor in respect of Indemnification
Collateral (as defined below) and Pledge Collateral (as defined below) delivered to Securities
Intermediary and Pledge Collateral Agent, respectively, by Pledgor for the benefit of Secured Party
(both for its own benefit and the benefit of the other Acquiror Indemnified Parties), subject to
the terms thereof;
Whereas, pursuant to this Agreement, Pledgor pledges to Secured Party, for
the benefit of Secured Party and the other Acquiror Indemnified Parties, the Indemnification
Collateral and the Pledge Collateral in order to secure the payment of Pledgor’s obligations to
Secured Party and the other Acquiror Indemnified Parties under the Indemnification Provisions, this
Agreement, and the Ancillary Agreements;
Whereas, Secured Party, Pledgor, Securities Intermediary, Pledge Collateral Agent,
Stock Purchase Contract Agent and AIG desire to amend and restate the Indemnification Control
Agreement in its entirety;
Now, Therefore, in consideration of the mutual promises set forth herein and for
other good and valuable consideration, the parties hereto agree as follows:
ARTICLE I
Definitions
Definitions
SECTION 1.1 Certain Terms Defined; Interpretation. For all purposes of this Agreement,
except as otherwise expressly provided or unless the context otherwise requires:
(a) the terms defined in this Article I shall have the meanings assigned to them in this
Article I and, where the context requires, include the plural as well as the singular, and nouns
and pronouns of the masculine gender include the feminine and neuter genders;
(b) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Article, Section or other subdivision;
(c) the terms “bank,” “chattel paper,” “deposit account,” “entitlement holder,” “entitlement
order,” “financial asset,” “general intangible,” “investment property,” “payment intangible,”
“proceeds,” “security,” “security entitlement” and “securities intermediary” shall have the
meanings set forth in Articles 8 and 9 of the UCC (as defined below);
(d) Section headings are included in this Agreement for convenience only and shall have no
substantive effect on its interpretation; and
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(e) the following terms have the meanings given to them in this Section 1.1(e):
“Acquiror Indemnified Parties” shall have the meaning set forth in the Amended Stock Purchase
Agreement.
“AIG” shall have the meaning set forth in the Preamble hereto.
“AIG Equity Unit Public Offering” shall have the meaning set forth in the Coordination
Agreement.
“Amended Investor Rights Agreement” shall have the meaning set forth in the Recitals hereto.
“Amended Stock Purchase Agreement” shall have the meaning set forth in the Recitals hereto.
“Ancillary Agreements” shall mean the Transition Services Agreement, the Amended Investor
Rights Agreement and the Special Asset Protection Agreement.
“Authorized Person” shall mean any person, whether or not an officer or employee of a Secured
Party or Pledgor, duly authorized by a Secured Party or Pledgor, respectively, to give Written
Instructions on behalf of a Secured Party or Pledgor, respectively; each such person to be
designated in a Certificate of Authorized Persons which contains a specimen signature of such
person.
“Business Day” shall have the meaning set forth in the Amended Stock Purchase Agreement.
“Closing Date” shall have the meaning set forth in the Amended Stock Purchase Agreement.
“Code” shall have the meaning set forth in the Amended Stock Purchase Agreement.
“Collateral” shall have the meaning set forth in the Pledge Agreement.
“Collateral Agent” shall have the meaning set forth in the Recitals hereto.
“Common Equity Units” shall have the meaning set forth in the Stock Purchase Contract
Agreement.
“Common Stock” shall mean the common stock, par value $0.01 per share, of Secured Party.
“Coordination Agreement” shall have the meaning set forth in the Recitals hereto.
“Deposit Account” shall mean the non-interest bearing Federal Deposit Insurance Corporation guaranteed deposit account (Account No. S54232.8)
designated “MetLife, Inc., Indemnification Coll A/C” (as the same may be redesignated,
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renumbered or otherwise modified) established and maintained by the Securities Intermediary as
a bank in connection with the securities account.]
“Depository” shall mean the Treasury/Reserve Automated Debt Entry System maintained at The
Federal Reserve Bank of New York for receiving and delivering securities, The Depository Trust
Company, Euroclear Bank S.A./N.V., Clearstream Banking, société anonyme, and any depository,
book-entry system or clearing agency (and their respective successors and assigns) authorized to
act as a securities depository or clearing agency, pursuant to applicable law and identified to
Pledgor from time to time.
“Eligible Collateral” shall have the meaning set forth in the Indemnification Provisions.
“Equity Units Net Proceeds” shall mean any Net Proceeds from the AIG Equity Unit Public
Offering
“Excess Collateral Amount” shall have the meaning set forth in Section 4.2 hereof.
“Fair Value” shall have the meaning set forth in Section 11.05 of the Amended Stock Purchase
Agreement.
“Includible Amounts” shall have the meaning set forth in Section 2.7 hereof.
“Indemnification Collateral” shall mean all of Pledgor’s right, title and interest, now or
hereafter existing, in and to the Indemnification Collateral Account (including the Deposit
Account), the Initial Collateral, the Pledge Collateral, all investment property, financial assets
and securities entitlements credited or required or agreed to be credited to the securities account
constituting part of the Indemnification Collateral Account, any and all funds credited to the
Deposit Account constituting part of the Indemnification Collateral Account, all dividends,
interest, cash, securities, instruments (as defined in Article 9 of the UCC), general and payment
intangibles (each as defined in Article 9 of the UCC), account (as defined in Article 9 of the
UCC), security entitlements, investment property and other financial assets at any time and from
time to time received, receivable or otherwise distributed in respect of or in exchange for, or as
a renewal of, or reinvestment for, or substitution of, amounts or property in the Indemnification
Collateral Account, all rights, powers, remedies and privileges of Pledgor under or with respect to
the Indemnification Collateral Account or any of the foregoing and under or with respect to the
Stock Purchase Contract Agreement, all deposit accounts, general and payment intangibles (each as
defined in Article 9 of the UCC), accounts (as defined in Article 9 of the UCC) and chattel paper
related to or associated with any of the foregoing, and all proceeds and returns of and from any of
the foregoing.
“Indemnification Collateral Account” shall mean the securities account (Account No. S54232.6)
established and maintained by Securities Intermediary and designated “MetLife, Inc.,
Indemnification Coll A/C” (as the same may be redesignated, renumbered or otherwise modified), and
the Deposit Account.
“Indemnification
Instruction, Waiver and Acknowledgment” means the
Indemnification Collateral Substitution Instruction, Waiver and Acknowledgment, dated March 2, 2011, among Secured Party, Pledgor, Securities Intermediary, Pledge Collateral Agent,
Stock Purchase Contract Agent and AIG, and delivered to the Securities Intermediary in accordance
with Section 6.6(a) of the Coordination Agreement, which waived certain provisions
of this Agreement in order to permit the release of Common Equity Units and the
substitution of cash therefor and specify the amounts thereof, all as set forth in Section
6.6(b) and Section 6.6(g) of the Coordination Agreement.
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“Indemnification Provisions” shall have the meaning set forth in the Recitals hereto.
“Initial Collateral” shall mean Eligible Collateral required by the Indemnification Provisions
to be credited to the Indemnification Collateral Account on the Closing Date, the particular
composition of such Eligible Collateral for these purposes to be determined pursuant to the Amended
Stock Purchase Agreement.
“Investment Guidelines” shall mean the investment guidelines set forth as Schedule II hereto.
“Investor Rights Agreement” shall have the meaning set forth in the Recitals hereto.
“Liquidation Cash Proceeds” shall have the meaning set forth in Section 2.9 hereof.
“Law” shall have the meaning set forth in the Amended Stock Purchase Agreement.
“Losses” shall have the meaning set forth in Section 5.1 hereof.
“Managing Underwriter” means Xxxxxxx, Xxxxx & Co., as an underwriter in connection with the
AIG Equity Unit Public Offering.
“Net Proceeds” shall mean, with respect to any offer of securities, the aggregate proceeds
received by the applicable offeror, less underwriting discounts and commissions to be paid to the
underwriter(s) in connection with the applicable offering.
“Notice of Enforcement” shall mean a notice pursuant to Section 2.9 hereof that a Secured
Party is enforcing its rights against all or any portion of the Indemnification Collateral.
“Obligations” shall mean all present and future obligations and liabilities (whether actual or
contingent) of Pledgor to Secured Party and the other Acquiror Indemnified Parties under this
Agreement, the Indemnification Provisions and the Ancillary Agreements.
“Permitted Investments” shall mean any of the investments in which any cash, from time to
time, contained in the Indemnification Collateral Account and forming part of the Indemnification
Collateral, is invested by the Securities Intermediary in accordance with the Investment
Guidelines.
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“Person” shall mean a legal person, including any individual, corporation, estate,
partnership, joint venture, association, joint-stock company, limited liability company, trust,
unincorporated organization or government or any agency or political subdivision thereof or any
other entity of whatever nature.
“Pledge Agreement” shall have the meaning set forth in the Recitals hereto.
“Pledge Collateral” shall mean all Pledgor’s right, title and interest, now or hereafter
existing, in and to the Collateral that is credited, or required under this Agreement and the
Pledge Agreement to be credited, to (or that is otherwise related to) the Pledge Collateral
Accounts established under the Pledge Agreement, all dividends, interest, cash, securities,
instruments (as defined in Article 9 of the UCC), security entitlements, investment property and
other financial assets at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for, or as a renewal of, or reinvestment for, or
substitution of, amounts or property in the Pledge Collateral Accounts, all rights, powers,
remedies and privileges of Pledgor under or with respect to the Collateral, the Pledge Collateral
Accounts or any of the foregoing, the Stock Purchase Contracts associated with the Common Equity
Units from time to time credited or required to be credited to the Indemnification Collateral
Account, all deposit accounts, general or payment intangibles, accounts (as defined in Article 9 of
the UCC), instruments (as defined in Article 9 of the UCC) and chattel paper related to or
associated with any of the foregoing, and all proceeds and returns of and from any of the
foregoing.
“Pledge Collateral Accounts” shall mean the Pledged Unit Subaccounts established under Section
11.11 of the Pledge Agreement to hold the Collateral that secures the performance of Pledgor
(referred to as the “Initial Holder” in the Pledge Agreement) under the Stock Purchase Contracts
that relate to and form part of the Common Equity Units constituting a portion of the
Indemnification Collateral and under the Pledge Agreement.
“Pledge Collateral Agent” shall have the meaning set forth in the Preamble hereto.
“Pledgor” shall have the meaning set forth in the Preamble hereto.
“Secured Party” shall have the meaning set forth in the Preamble hereto.
“Securities Intermediary” shall have the meaning set forth in the Preamble hereto.
“Special Asset Protection Agreement” shall mean the Special Asset Protection Agreement, dated
as of November 1, 2010, by and among Secured Party, Pledgor, AIG and American Life Insurance
Company, a Delaware-domiciled insurance company, as the same may be amended from time to time.
“Stock Purchase Agreement” shall have the meaning set forth in the Recitals hereto.
“Stock Purchase Contract” shall have the meaning set forth in the Stock Purchase Contract
Agreement.
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“Stock Purchase Contract Agent” shall have the meaning set forth in the Preamble hereto.
“Stock Purchase Contract Agreement” shall mean the Stock Purchase Contract Agreement, to be
dated as of November 1, 2010, between Secured Party and Stock Purchase Contract Agent, as the same
may be amended from time to time.
“Tax” shall have the meaning set forth in the Amended Stock Purchase Agreement.
“Tax Authority” shall have the meaning set forth in the Amended Stock Purchase Agreement.
“Tax Law” shall have the meaning used in the Amended Stock Purchase Agreement.
“Tax Returns” shall have the meaning set forth in the Amended Stock Purchase Agreement.
“Transition Services Agreement” shall mean the Transition Services Agreement, dated as of
November 1, 2010, by and between Secured Party and AIG, as the same may be amended from time to
time.
“Treasury Security” has the meaning set forth in the Stock Purchase Contract Agreement.
“UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of
New York.
“Unpaid Obligation Amount” shall have the meaning set forth in Section 2.9 hereof.
“Written Instructions” shall mean written communications received by Securities Intermediary
or Pledge Collateral Agent via letter, facsimile transmission, or other method or system specified
by Securities Intermediary or Pledge Collateral Agent, as the case may be, as available for use in
connection with this Agreement.
ARTICLE II
Grant of Security Interests; Financing Statements
Grant of Security Interests; Financing Statements
SECTION 2.1 Grant of Security Interests. As security for the Obligations, Pledgor hereby
pledges to Secured Party (for its own benefit and the benefit of the other Acquiror Indemnified
Parties), and grants to Secured Party (for its own benefit and the benefit of the other Acquiror
Indemnified Parties) a security interest in, the Indemnification Collateral. For the protection of
such security interest and pledge and as further security for the Obligations, Pledgor also pledges
to Pledge Collateral Agent for the benefit of Secured Party, and grants to Pledge Collateral Agent
for the benefit of Secured Party a security interest in, the Pledge Collateral.
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SECTION 2.2 Financing Statements. Pledgor agrees to take all actions which may be necessary
or advisable under all applicable laws to perfect the security interests created and granted by
this Agreement in favor of Secured Party (for its own benefit and the benefit of the other Acquiror
Indemnified Parties) and Pledge Collateral Agent against Pledgor, to ensure that the security
interest of Secured Party (for its own benefit and the benefit of the other Acquiror Indemnified
Parties) in the Indemnification Collateral is a first priority lien, senior and prior in right of
claim to any creditors claiming an interest in and to the Indemnification Collateral (except as
provided below with respect to the Pledge Collateral), and to ensure that the security interest of
Secured Party (for its own benefit and the benefit of the other Acquiror Indemnified Parties) in
the Pledge Collateral granted to Pledge Collateral Agent for the benefit of Secured Party (for its
own benefit and the benefit of the other Acquiror Indemnified Parties) pursuant to this Agreement
for the purpose of securing the Obligations ranks pari passu with the security interest in the
Pledge Collateral granted to Collateral Agent pursuant to the Pledge Agreement for the benefit of
Secured Party. In furtherance thereof, Pledgor hereby authorizes the Secured Party to record and
file with the appropriate filing office, at Pledgor’s own expense, UCC-1 financing statements
(including any continuation statements with respect to such financing statements when applicable)
with respect to the security interests in the Indemnification Collateral and the Pledge Collateral
granted to Secured Party (for its own benefit and the benefit of the other Acquiror Indemnified
Parties) and Pledge Collateral Agent, respectively, pursuant to this Agreement, and Secured Party
shall deliver a file-stamped copy of such financing statements or continuation statements to
Pledgor. Secured Party hereby acknowledges on its own behalf and on behalf of the other Acquiror
Indemnified Parties that portions of the Pledge Collateral are subject to the lien created under,
and the rights in favor of the Collateral Agent granted by, the terms of the Pledge Agreement and
agrees (i) not to exercise any of its remedies hereunder with respect to any Common Equity Unit
that is not a Pledged Unit and (ii) not to take any action under this Agreement with respect to the
Pledge Collateral relating to any Pledged Unit with respect to which its remedies hereunder are not
being exercised.
SECTION 2.3 Satisfaction of Obligation to Transfer Collateral. Pledgor will be required to
deliver Indemnification Collateral as follows: (i) in the case of cash, payment or delivery to the
Indemnification Collateral Account; (ii) in the case of certificated securities that cannot be
delivered by book-entry, delivery in appropriate physical form to Securities Intermediary
accompanied by duly executed instruments of transfer properly completed and executed in blank;
(iii) in the case of securities that can be delivered in book-entry form, the giving of written
instructions to the issuer or the appropriate securities intermediary sufficient if complied with
to result in a legally effective transfer of the relevant interest to Securities Intermediary; and
(iv) in the case of uncertificated securities that cannot be delivered in book-entry form, the
giving of instructions to the issuer or its transfer agent sufficient if complied with to result in
a legally effective transfer of the relevant interest to the Securities Intermediary. In the case
of Pledge Collateral, Stock Purchase Contract Agent, Pledgor, Secured Party, Securities
Intermediary and Pledge Collateral Agent agree to take such actions as may be necessary to ensure
that the Pledge Collateral required to be credited to the Pledge Collateral Accounts under the
Pledge Agreement is properly so credited in the manner required by the Pledge Agreement.
SECTION 2.4 Name and Address of Pledgor. Pledgor represents that its exact legal name is
ALICO Holdings LLC and that it is a Delaware limited liability company and its mailing
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address is: ALICO Holdings LLC, c/o American International Group, Inc., 00 Xxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000. Pledgor covenants with Secured Party (for its own benefit and the benefit of
the other Acquiror Indemnified Parties) as follows:
(i) without providing at least ten (10) days’ prior written notice to Secured Party (or such
shorter period as may be agreed at any time by Secured Party in writing), it will not change its
name or its mailing address, and
(ii) without the prior written consent of Secured Party, not to be unreasonably withheld, it
will not change its type of organization, jurisdiction of organization or other legal structure.
SECTION 2.5 Secured Party and Pledge Collateral Agent May Perform. If Pledgor fails to
perform any of its obligations under this Agreement, Secured Party may itself perform, or cause
performance of, such obligations with respect to the Indemnification Collateral, and Pledge
Collateral Agent, pursuant to instructions from Secured Party, may itself perform, or cause
performance of, such obligations with respect to the Pledge Collateral, and the expense of Secured
Party or Pledge Collateral Agent incurred in connection with such performance shall be payable by
Pledgor.
SECTION 2.6 Secured Party and Pledge Collateral Agent Appointed Attorneys-in-Fact. Pledgor
hereby irrevocably constitutes and appoints Secured Party, Pledge Collateral Agent and any officer
or agent thereof, with full power of substitution, as its true and lawful attorneys-in-fact with
full irrevocable power and authority in the place and stead of Pledgor or in Secured Party’s or
Pledge Collateral Agent’s own name (but for the benefit of Secured Party and the other Acquiror
Indemnified Parties), for the purpose of carrying out the terms of this Agreement, to take any and
all appropriate action and to execute any and all documents and instruments that may be necessary
or useful to accomplish the purposes of this Agreement, including, without limitation, taking any
action which may be necessary in any applicable jurisdiction to perfect and to maintain the
perfection and priority of Secured Party’s interest in the Indemnification Collateral Account and
the Indemnification Collateral and Pledge Collateral Agent’s security interest (for the benefit of
Secured Party and the other Acquiror Indemnified Parties) in the Pledge Collateral and the Pledge
Collateral Accounts, including, without limitation, the filing of any financing and continuation
statements in any applicable jurisdiction and to take any action and to execute any instrument,
representing any dividend, interest payment or other distribution in respect of the Indemnification
Collateral or the Pledge Collateral or any part thereof and to give full discharge for the same as
Secured Party or Pledge Collateral Agent (for the benefit of Secured Party and the other Acquiror
Indemnified Parties) may deem necessary or advisable to accomplish the purpose of this Agreement.
To the extent permitted by law, Pledgor hereby ratifies all that said attorneys shall lawfully do
or cause to be done by virtue hereof. This power of attorney is a power coupled with an interest
and is irrevocable.
SECTION 2.7 Taxes. Pledgor will include all income and gain, including any accrued income or
gain, to the extent any such income or gain is required to be taken into account for Tax purposes
pursuant to applicable Tax Law, on or with respect to the Eligible Collateral and Indemnification
Collateral held in the Indemnification Collateral Account and the Pledge Collateral held in any
Pledge Collateral Account including all gains, dividends, interest,
9
proceeds, returns and other amounts (such amounts, the “Includible Amounts”) in Pledgor’s
gross income for federal, state, local and other Tax purposes, whether or not the Includible
Amounts have been distributed, and the Includible Amounts shall be reported, as and to the extent
required by Law, by the Securities Intermediary and Pledge Collateral Agent to the IRS, or any
other relevant Tax Authority, on IRS Form 1099 or 1042S (or other appropriate form) as income and
gain earned by the Pledgor, and Pledgor shall duly pay any Taxes resulting therefrom. Any other
Tax Returns required to be filed will be prepared and filed by Pledgor with the IRS and any other
relevant Tax Authority as required by law. Pledgor shall indemnify the Secured Party against any
and all Taxes relating to the Eligible Collateral, Indemnification Collateral or Pledge Collateral,
including all Taxes imposed on a Secured Party to the extent that the Secured Party is required by
applicable Tax Law (including section 468B of the Code and any temporary or final regulations
issued thereunder) to include any Includible Amounts in the Secured Party’s gross income for
federal, state, local or other Tax purposes and all Taxes resulting from the disposition or
transfer of the Eligible Collateral, Indemnification Collateral or Pledge Collateral (including any
transfer or disposition that is made in order to satisfy the payment of an Unpaid Obligation
Amount), and Pledgor’s right to indemnity with respect to such Taxes shall be considered an Unpaid
Obligation Amount for purposes of this Agreement. The Securities Intermediary and the Pledge
Collateral Agent are holding the Indemnification Collateral Account and the Pledge Collateral
Accounts for the benefit of the Secured Party and not for their own account. Pledgor shall pay or
reimburse the Stock Purchase Contract Agent, the Pledge Collateral Agent and the Securities
Intermediary upon request for any transfer taxes or other taxes relating to the Indemnification
Collateral or the Pledge Collateral incurred in connection herewith and shall indemnify and hold
harmless the Stock Purchase Contract Agent, the Pledge Collateral Agent and the Securities
Intermediary from any amounts that they are obligated to pay in the way of such taxes. Any
payments of income from the Indemnification Account or the Pledge Collateral Accounts shall be
subject to withholding regulations then in force with respect to United States taxes. The Pledgor
shall provide the Stock Purchase Contract Agent, the Pledge Collateral Agent and the Securities
Intermediary with appropriate W-9 forms for tax identification number certifications, or W-8 forms
for non-resident alien certifications. Except as otherwise provided herein, the Pledgor shall be
entitled to any interest earnings in the Indemnification Account and the Pledge Collateral
Accounts. It is understood that the Pledge Collateral Agent and the Securities Intermediary shall
only be responsible for income reporting with respect to income earned on the Pledge Collateral
Accounts and the Indemnification Account and will not be responsible for any other reporting. This
paragraph shall survive notwithstanding any termination of this Agreement or the resignation or
removal of the Stock Purchase Contract Agent, the Pledge Collateral Agent or the Securities
Intermediary.
SECTION 2.8 Voting Rights. Pledgor shall be entitled to exercise any and all voting and
other consensual rights, if any, pertaining to the Indemnification Collateral, the Pledge
Collateral or any part thereof for any purpose, subject to the limitations set forth in the Amended
Investor Rights Agreement. Neither Pledge Collateral Agent nor Securities Intermediary shall have
any obligation to or responsibilities with respect to the exercise of voting or any other
consensual rights pertaining to the Indemnification Collateral, the Pledge Collateral or any part
thereof.
SECTION 2.9 Ability to Enforce Collateral. In accordance with the terms of this Agreement,
the Indemnification Provisions and the Ancillary Agreements, from time to time,
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Secured Party may determine that it or any of the other Acquiror Indemnified Parties is owed
an amount in respect of the Obligations, which amount may be equal in value to all or any part of
the amount to the credit of the Indemnification Collateral Account. In such event, which may occur
multiple times as provided in the agreements or provisions constituting the Obligations, Secured
Party is entitled in accordance with the Indemnification Provisions to make a demand upon Pledgor
for, or otherwise receive, payment for such Obligations (for its own benefit or the benefit of the
other applicable Acquiror Indemnified Parties). Pursuant to Section 11.05(a) of the Amended Stock
Purchase Agreement, Pledgor may in some instances satisfy such demand by delivering Eligible
Collateral that is credited to the Indemnification Collateral Account with a Fair Value equal to
the amount demanded; provided, however, that any such delivery of Eligible Collateral will be made
in the following order of priority: (i) first, in cash and Permitted Investments then held in the
Indemnification Collateral Account; provided, that any such Permitted Investments shall have been
liquidated into cash in accordance with the Investment Guidelines (the “Liquidation Cash Proceeds”)
prior to making any such delivery from the Indemnification Collateral Account; and (ii), only to
the extent that the aggregate Fair Value of the cash and such Liquidation Cash Proceeds then held
in the Indemnification Collateral Account is less than the amount required to be delivered by the
Pledgor, second, by delivery of any cash and such Liquidation Cash Proceeds then held in the
Indemnification Collateral Account, plus such number of Common Equity Units credited to the
Indemnification Collateral Account the Fair Value of which equals the amount required to be so
delivered less the Fair Value of any such cash and Liquidation Cash Proceeds then held in the
Indemnification Control Account.
Upon receipt from Pledgor of a request complying with the requirements of such Section
11.05(a) that some or all of the amount demanded be paid using Eligible Collateral constituting
Indemnification Collateral, Secured Party agrees to instruct Securities Intermediary to withdraw
the requested amount of cash from the Indemnification Collateral Account and/or debit the requested
number of Common Equity Units and transfer such cash and/or Common Equity Units to such account as
Secured Party may designate in payment of Obligations with a Fair Value represented by such
transferred cash and/or Common Equity Units. Securities Intermediary may conclusively assume, in
complying with such instructions from the Secured Party, that Secured Party has received the
foregoing request from Pledgor and that the amount of Eligible Collateral to be withdrawn as
specified in such instructions is in the proper amount and shall comply with such instructions as
soon as practicable.
The failure of Pledgor to satisfy such demand or make such payment in full (in either case,
regardless of whether such demand is permitted by the Indemnification Provisions to be satisfied by
Pledgor prior to default by delivering a request to Secured Party in the manner described above
that Secured Party debit Eligible Collateral from the Indemnification Collateral Account), after
compliance by Secured Party with the terms of the applicable provisions or agreement constituting
the relevant Obligations and the terms of the Indemnification Provisions, including, without
limitation, any terms relating to the resolution of disagreements regarding the amount or existence
of any indemnification or other Obligation, shall constitute a default hereunder. It shall also
constitute a default hereunder if, in the case of any payment required to be made under Article II,
Section 6.12 or Sections 11.02(a)(vii),(viii) or (ix) of the Amended Stock Purchase Agreement or
the non-indemnification provisions of any Ancillary Agreement, or
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pursuant to the Special Asset Protection Agreement, the Pledgor and AIG shall fail to make
such payment in full in accordance with Sections 6.24 and 11.05(a)(i) and (ii) of the Amended Stock
Purchase Agreement.
Upon the occurrence of a default for any of the reasons set forth above, Secured Party may
exercise in respect of the Indemnification Collateral, and Pledge Collateral Agent may, for the
benefit of Secured Party (whether for Secured Party’s benefit or for the benefit of other Acquiror
Indemnified Parties) and upon the instructions of Secured Party, exercise in respect of the Pledge
Collateral (subject to the last sentence of Section 2.2), in addition to other rights and remedies
provided for herein or in Section 11.05(a) of the Amended Stock Purchase Agreement or otherwise
available to it, all the rights and remedies of a secured party on default under the UCC, or under
other applicable law, with respect to such portions of the Indemnification Collateral having in the
aggregate a value equal to the amount of the Obligations then due to Secured Party but unpaid (the
“Unpaid Obligation Amount”), such value to equal, to the extent Eligible Collateral is applied, the
Fair Value of such Eligible Collateral and otherwise to equal such other amount as shall be
determined in a manner consistent with applicable law. Any instructions from Secured Party shall
specify the portions of the Indemnification Collateral with respect to which such remedies shall be
exercised as specified in Section 11.05 of the Amended Stock Purchase Agreement and shall certify
that such Indemnification Collateral has the value required by the preceding sentence.
Secured Party may also, without notice except as required by law, upon the occurrence and
during the continuance of any such default direct Securities Intermediary from time to time, to the
extent permitted by law, to (i) transfer, deliver, and pay over to Secured Party, or as Secured
Party directs, all or any part of the Indemnification Collateral and the proceeds thereof
(including, without limitation, any distributions of cash and securities made in respect of the
Indemnification Collateral (which, for the avoidance of doubt shall include any interest earned on
the funds in the Deposit Account and any dividends, interest, distributions, amounts received in
respect of redemption and all other proceeds of any Permitted Investments earned or accrued after
such time), including Pledge Collateral to the extent it relates to Pledged Units being applied to
the payment of any Unpaid Obligation Amount) in an amount up to the Unpaid Obligation Amount and
Secured Party may apply any cash received from Securities Intermediary to the payment of the
Obligations then due to Secured Party but unpaid, and (ii) sell the Indemnification Collateral in
an amount up to the Unpaid Obligation Amount or any part thereof in one or more parcels at public
or private sale, at any exchange, broker’s board or at any of Secured Party’s or Securities
Intermediary’s offices or elsewhere, for cash, on credit or for future delivery, and upon such
other terms as Secured Party may deem commercially reasonable, and Secured Party may instruct
Pledge Collateral Agent, as secured party for the benefit of Secured Party (for its own benefit and
the benefit of the other Acquiror Indemnified Parties), to take such action with respect to the
Pledge Collateral (subject to the last sentence of Section 2.2), including, without limitation, the
transfer at the time specified by Secured Party of any such Pledge Collateral out of any Pledged
Unit Subaccount to the appropriate other subaccount under the Pledge Agreement, as may be necessary
or desirable to effectuate the transfer or sale of Indemnification Collateral described above;
provided, that the aggregate value (calculated as provided in the Amended Stock Purchase Agreement
and herein) of the Indemnification Collateral, any such transferred Pledge Collateral and the
proceeds of the disposition thereof
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applied to the payment of the Obligations at any time shall not exceed the Unpaid Obligation
Amount at such time, the amount of the Unpaid Obligations to be certified to Securities
Intermediary and Pledge Collateral Agent; and provided, further, that Secured Party shall not
exercise, or cause Pledge Collateral Agent to exercise, any rights with respect to the Pledge
Collateral that would breach the covenant set forth in the last sentence of Section 2.2 or that
would adversely affect the operation of the Pledge Agreement, any Stock Purchase Contract or the
Stock Purchase Contract Agreement.
Pledgor acknowledges that to the extent the Indemnification Collateral credited to the
Indemnification Collateral Account or the Pledge Collateral credited to the Pledge Collateral
Accounts under the Pledge Agreement is of a type sold in a recognized market, no notice by Secured
Party or Pledge Collateral Agent to Pledgor shall be required prior to the sale of any
Indemnification Collateral or Pledge Collateral hereunder. In the event such notice is given,
neither Secured Party nor Pledge Collateral Agent shall be obligated to make any sale of
Indemnification Collateral or Pledge Collateral regardless of such notice having been given.
Secured Party or Pledge Collateral Agent, as the case may be, may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so adjourned. Upon any sale
or transfer of any Common Equity Units contained in the Indemnification Collateral, whether upon
Secured Party’s exercise of its rights as a secured party hereunder or upon the instructions of
Pledgor in connection with a substitution of Indemnification Collateral, the Pledge Collateral
associated with such Common Equity Units being sold shall, if such Common Equity Units shall
continue to be outstanding after such sale or other transfer, be transferred from the Pledge
Collateral Accounts to the other appropriate subaccounts with the Collateral Agent under the Pledge
Agreement.
SECTION 2.10 Security Interest Absolute. All rights of Secured Party and Pledge Collateral
Agent for benefit of the Secured Party and the security interests granted hereunder, and all
obligations of Pledgor hereunder, shall be absolute and unconditional irrespective of: (i) any
change in time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to any departure from the
Indemnification Provisions; (ii) any exchange, release or non-perfection of any other collateral,
or any release or amendment or waiver of or consent to departure from any guaranty, for all or any
of the Obligations; or (iii) any other circumstance which might otherwise constitute a defense
available to, or a discharge of, Pledgor in respect of the Obligations other than full and final
payment thereof.
SECTION 2.11 Further Assurances. Pledgor, Secured Party, Securities Intermediary and Pledge
Collateral Agent agree that, at any time and from time to time at the expense of Pledgor, Pledgor
shall promptly execute and deliver all further instruments and documents and take all further
action that may be necessary or desirable or that Secured Party, Securities Intermediary or Pledge
Collateral Agent (upon the instructions of Secured Party, in the case of Securities Intermediary or
Pledge Collateral Agent) may reasonably request in order to create, perfect, and protect any pledge
or security interest granted or purported to be granted hereby or to enable Secured Party to
exercise and enforce its rights and remedies hereunder with respect to the Indemnification
Collateral and to enable Pledge Collateral Agent to exercise and enforce for
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the benefit of Secured Party its rights and remedies hereunder with respect to the Pledge
Collateral. If Pledgor shall fail to execute such instruments or documents or to take such further
action, Securities Intermediary or Pledge Collateral Agent, upon the instructions of Secured Party,
may do so in Pledgor’s stead in their own names or as Pledgor’s attorneys-in-fact, and at Pledgor’s
expense.
ARTICLE III
Appointment and Status of Securities Intermediary and
Pledge Collateral Agent;
Indemnification Collateral Account
Appointment and Status of Securities Intermediary and
Pledge Collateral Agent;
Indemnification Collateral Account
SECTION 3.1 Appointment; Identification of Indemnification Collateral. Secured Party and
Pledgor hereby appoint Securities Intermediary and Pledge Collateral Agent to perform their
respective duties as set forth herein and authorize Securities Intermediary to hold that portion of
the Indemnification Collateral consisting of cash or securities in the Indemnification Collateral
Account and Pledge Collateral Agent to hold that portion of the Pledge Collateral required to be so
held in the Pledge Collateral Accounts established under the Pledge Agreement in the name of the
Securities Intermediary or the name of its nominees, except as otherwise provided in the Pledge
Agreement. Securities Intermediary and Pledge Collateral Agent hereby accept such appointments and
agree to establish and maintain the Indemnification Collateral Account and the Pledge Collateral
Accounts under the Pledge Agreement and this Agreement and maintain appropriate records identifying
the Indemnification Collateral in the Indemnification Collateral Account as pledged by Pledgor to
Secured Party and the Pledge Collateral in the Pledge Collateral Accounts as pledged by Pledgor to
Pledge Collateral Agent for benefit of Secured Party. Pledgor hereby authorizes Securities
Intermediary to, and Securities Intermediary agrees with Pledgor, Secured Party and Pledge
Collateral Agent that Securities Intermediary will, comply with all Written Instructions, including
entitlement orders relating to the securities account that is part of the Indemnification
Collateral Account and instructions relating to the disposition of funds in the deposit account
that is part of the Indemnification Collateral Account, originated by Secured Party with respect to
the Indemnification Collateral, and that it will comply with all Written Instructions of Pledge
Collateral Agent with respect to the Pledge Collateral Accounts, without further consent or
direction from Pledgor or any other party. Pledge Collateral Agent agrees with Secured Party that
it will act as secured party for benefit of Secured Party with respect to the Pledge Collateral and
the Pledge Collateral Accounts under the Pledge Agreement and will comply with all Written
Instructions originated by Secured Party with respect to the Pledge Collateral and the Pledge
Collateral Accounts without further consent or direction from Pledgor or any other party.
SECTION 3.2 Status of Securities Intermediary; Investment of Funds. Securities Intermediary
represents that it is a securities intermediary within the meaning of Section 8-102(a)(14) of the
UCC with respect to the Indemnification Collateral Account and Pledge Collateral Accounts.
Pledgor, Secured Party, Pledge Collateral Agent and Securities Intermediary intend that all assets,
including cash, held in the securities account constituting part of the Indemnification Collateral
Account and in the Pledge Collateral Accounts under the
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Pledge Agreement shall be treated as financial assets, but agree that any cash being held in
the Indemnification Collateral Account shall be held in the deposit account of the Securities
Intermediary that comprises part of the Indemnification Collateral Account. The parties agree that
Securities Intermediary is a bank with respect to any deposit account comprising part of the
Indemnification Collateral Account. The parties further agree that any cash held in the
Indemnification Collateral Account shall, at the written instruction of the Pledgor complying with Section 5.9(e) herein, be invested in Permitted Investments and credited to
the securities account constituting part of the Indemnification Collateral Account.
SECTION 3.3 Representations, Warranties and Covenants of Securities Intermediary. Securities
Intermediary represents and warrants to, and covenants with, Secured Party and Pledgor as follows:
(i) While it is acting as Securities Intermediary hereunder, Securities Intermediary will
remain qualified as a securities intermediary and as a bank. Securities Intermediary, in the
ordinary course of its business, maintains and, while it is acting as Securities Intermediary
hereunder, will continue to maintain securities accounts for others, and, while it is acting as
Securities Intermediary hereunder, will continue to make deposit accounts available to customers.
(ii) The portion of the Indemnification Collateral Account that is intended to be a securities
account and the Pledge Collateral Accounts are and will be maintained by Securities Intermediary as
securities accounts to which financial assets are or may be credited, and the portion of the
Indemnification Collateral Account that is intended to be a deposit account will be maintained as a
deposit account by Securities Intermediary in its capacity as a bank.
(iii) Except for the rights and interests of Secured Party, Pledge Collateral Agent and
Pledgor described in this Agreement and the Pledge Agreement, Securities Intermediary has not been
advised of any right or claim (including any adverse claim) to, or interest in, the Indemnification
Collateral Account, the Indemnification Collateral, the Pledge Collateral or the Pledge Collateral
Accounts.
(iv) All property delivered to Securities Intermediary to be credited to the securities
account constituting part of the Indemnification Collateral Account or to the Pledge Collateral
Accounts will be in the possession of Securities Intermediary or to its credit on the books of
other securities intermediaries or Depositories in a quantity corresponding to the types and
aggregate amounts credited to such securities account and all other securities accounts maintained
by Securities Intermediary.
(v) Securities Intermediary will not change the names or account numbers of either the
securities account or the deposit account constituting part of the Indemnification Collateral
Account, or of the Pledge Collateral Accounts, without the prior written consent of Secured Party.
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(vi) Other than this Agreement and the Pledge Agreement, Securities Intermediary has not
entered into and will not enter into any agreement with any person relating to the Indemnification
Collateral, the Indemnification Collateral Account or any financial asset or cash credited to it or
to the Pledge Collateral, and the Pledge Collateral Accounts or any financial asset or cash
credited to them, including any control agreement or any agreement that purports to limit or
condition the obligation of Securities Intermediary to comply with entitlement orders or
instructions of Secured Party or the entitlement orders of Pledge Collateral Agent. Securities
Intermediary has not agreed to comply, will not comply and will not agree to comply with
entitlement orders or instructions of any Person other than Secured Party with respect to the
Indemnification Collateral Account or the Indemnification Collateral and Pledge Collateral Agent
with respect to the Pledge Collateral and the Pledge Collateral Accounts.
(vii) The “securities intermediary’s jurisdiction” (within the meaning of Section 8-110 of the
UCC) of Securities Intermediary is and will remain for the term of this Agreement the State of New
York and the “bank’s jurisdiction” (within the meaning of Section 9-304 of the UCC) in respect of
the Deposit Account is and will remain for the term of this Agreement the State of New York.
SECTION 3.4 Representations, Warranties and Covenants of Pledge Collateral Agent. Pledge
Collateral Agent represents and warrants to, and covenants with, Secured Party as follows:
(a) Except for the rights and interests of Secured Party and Pledgor described in this
Agreement and the Pledge Agreement, Pledge Collateral Agent has not been advised of any right or
claim (including any adverse claim) to or interest in the Pledge Collateral or the Pledge
Collateral Accounts.
(b) All property delivered to Pledge Collateral Agent to be credited to the Pledge Collateral
Accounts will be in the possession of Securities Intermediary or to its credit on the books of
other securities intermediaries or Depositories in a quantity corresponding to the types and
aggregate amounts credited to such securities account and all other securities accounts maintained
by Securities Intermediary.
(c) Pledge Collateral Agent will not change the names or account numbers of the Pledge
Collateral Accounts without the prior written consent of Secured Party.
(d) Other than this Agreement and the Pledge Agreement, Pledge Collateral Agent has not
entered into and will not enter into any agreement with any Person relating to the Pledge
Collateral Accounts, including any control agreement or any agreement that purports to limit or
condition the obligation of Pledge Collateral Agent to follow the instructions of Secured Party or
of Securities Intermediary to comply with entitlement orders or instructions of Pledge Collateral
Agent with respect to the Pledge Collateral Accounts. Pledge Collateral Agent has not agreed to
comply, will not comply and will not agree to comply with entitlement orders or any other
instructions of any person other than Secured Party with respect to the Pledge Collateral and the
applicable Collateral Accounts, except as set forth in the Pledge Agreement.
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SECTION 3.5 Representations, Warranties and Covenants of Pledgor. Pledgor represents and
warrants to, and covenants with, Secured Party, Pledge Collateral Agent and Securities Intermediary
as follows:
(a) It has not granted and will not grant, or permit to exist, any security or other interest
in or any right or claim (including any adverse claim) to the Indemnification Collateral Account,
the Indemnification Collateral, the Pledge Collateral or the Pledge Collateral Accounts except
those contemplated by this Agreement and the Pledge Agreement; and
(b) Other than this Agreement, the Pledge Agreement and any customary funds transfer, account
or other customer agreement with Securities Intermediary not inconsistent with this Agreement,
Pledgor has not entered into and will not enter into any agreement with any person relating to the
Indemnification Collateral Account, the Indemnification Collateral, the Pledge Collateral or the
Pledge Collateral Accounts.
SECTION 3.6 Use of Depositories. Secured Party and Pledgor hereby authorize Securities
Intermediary to utilize Depositories in connection with its performance hereunder. Indemnification
Collateral or Pledge Collateral held by Securities Intermediary in a Depository will be held
subject to the rules, terms and conditions of such Depository. Where Indemnification Collateral or
Pledge Collateral is held in a Depository, Securities Intermediary shall identify on its records as
belonging to Pledgor and pledged to Secured Party or Pledge Collateral Agent for the benefit of
Secured Party, as appropriate, a quantity of securities as part of a fungible bulk of securities
held in Securities Intermediary’s account at such Depository. Securities deposited in a Depository
will be represented in accounts which include only assets held by Securities Intermediary for its
customers.
SECTION 3.7 Merger, Conversion, Consolidation or Succession to Business. Any Person into
which Pledge Collateral Agent or Securities Intermediary may be merged or converted or with which
it may be consolidated, or any Person resulting from any merger, conversion or consolidation to
which Pledge Collateral Agent or Securities Intermediary shall be a party, or any person succeeding
to all or substantially all of the corporate trust business of Pledge Collateral Agent or
Securities Intermediary shall be the successor of Pledge Collateral Agent or Securities
Intermediary, respectively, hereunder without the execution or filing of any paper with any party
hereto or any further act on the part of any of the parties hereto except where an instrument of
transfer or assignment is required by law to effect such succession, anything herein to the
contrary notwithstanding; provided, however, that if Pledge Collateral Agent and Securities
Intermediary are no longer the same corporate entity, such merger, conversion, consolidation or
succession to business shall instead be treated as a simultaneous resignation of Pledge Collateral
Agent and Securities Intermediary hereunder.
SECTION 3.8 Rights in Other Capacities. Pledge Collateral Agent and Securities Intermediary
and their affiliates may (without having to account therefor to Pledgor, Secured Party or Stock
Purchase Contract Agent) accept deposits from, lend money to, make investments in and generally
engage in any kind of banking, trust or other business with Pledgor, Secured Party or Stock
Purchase Contract Agent, any other person interested herein and any holder of Common Equity Units
(and any of their respective subsidiaries or affiliates) as if it were not acting as Pledge
Collateral Agent or Securities Intermediary, as the case may be, and Pledge
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Collateral Agent, Securities Intermediary and their affiliates may accept fees and other
consideration from Pledgor, Secured Party, Stock Purchase Contract Agent and any holder of Common
Equity Units without having to account for the same to the Pledgor or Secured Party, subject to its
other representations and covenants herein.
ARTICLE IV
Collateral Services
Collateral Services
SECTION 4.1 Delivery of Indemnification Collateral. At the Closing (as defined in the
Amended Stock Purchase Agreement), Pledgor shall deliver or cause to be delivered in the method
specified in Section 2.3 to Securities Intermediary the Initial Collateral for credit to and/or
deposit in the Indemnification Collateral Account, and Pledge Collateral Agent shall establish the
Pledge Collateral Accounts and credit the Pledge Collateral thereto as provided in the Pledge
Agreement.
SECTION 4.2 Release of Indemnification Collateral. At any time on or after each of the dates
which is the 12-month, 24-month and 30-month anniversary of the Closing Date (or if, in each case,
such date is not a Business Day, on the next succeeding Business Day), or as otherwise provided in
Section 11.05(c) of the Amended Stock Purchase Agreement, Pledgor shall be entitled to withdraw
Indemnification Collateral from the Indemnification Collateral Account to the extent and in the
amount and manner set forth in such Section 11.05(c) (the amount permitted to be withdrawn being
the “Excess Collateral Amount”); provided, however, any such withdrawal of Indemnification
Collateral in accordance with Section 11.05(c) (other than Section 11.05(c)(i)) of the Amended
Stock Purchase Agreement shall be made in the following order of priority: (i) first, releasing any
Common Equity Units then held in the Indemnification Collateral Account; and (ii) second, solely to
the extent the amount of Indemnification Collateral to be so released exceeds the stated amount of
the Common Equity Units released pursuant to clause (i) above, any cash then held in the
Indemnification Collateral Account and any Permitted Investments then held in the Indemnification
Collateral Account in which cash held in the Indemnification Collateral Account has been invested;
provided, further, that any such Permitted Investments shall have been liquidated in accordance
with the guidelines specified in the Investment Guidelines prior to making any such withdrawal;
provided, further, that Pledgor has delivered written notice to Secured Party, with a copy to
Securities Intermediary, at least ten (10) Business Days in advance of the proposed date of
withdrawal detailing the Indemnification Collateral proposed to be withdrawn and specifying the
account or address to which the withdrawn Collateral should be delivered; provided, further, that
Securities Intermediary has received a Written Instruction and/or entitlement order from Secured
Party at least five (5) Business Days in advance of the requested withdrawal authorizing the
withdrawal of such Excess Collateral Amount and specifying the particular Indemnification
Collateral to be withdrawn; and provided, further, that upon the occurrence of a Parent Bankruptcy,
no Indemnification Collateral shall be released hereunder pursuant to Sections 11.05(c)
except to the extent, in the manner and at the time or times permitted thereby; provided, that in
connection with each such withdrawal all of the conditions in this Section 4.2 have been
complied with. Secured Party hereby agrees that it shall timely deliver an appropriate entitlement
order to the Securities Intermediary adequate to permit a permitted transfer of any Excess
Collateral Amount. If any Common Equity Units are withdrawn from the Indemnification Collateral
Account, the
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corresponding Pledge Collateral shall be transferred from the Pledge Unit Subaccounts to the
appropriate other subaccounts under the Pledge Agreement. In order to facilitate the withdrawal
hereunder of Indemnification Collateral and Pledge Collateral while such Collateral is evidenced by
securities, the Secured Party shall provide the appropriate registrar for such Collateral a
sufficient supply of securities for purposes of issuance and exchange and shall cause such
registrars to coordinate and cooperate with the Securities Intermediary and Pledge Collateral Agent
to effect such withdrawal. The Securities Intermediary and the Pledge Collateral Agent, as such,
shall have no responsibility for any delay by any registrar to provide securities to effect any
such withdrawal or the related issuance and exchange.
If any Indemnification Collateral is required to remain in the Indemnification Collateral
Account after the 30-month anniversary of the Closing Date, Pledgor similarly shall be entitled
thereafter to withdraw any Excess Collateral Amount; provided, however, that Pledgor has delivered
written notice to Secured Party and Securities Intermediary at least ten (10) Business Days in
advance of the proposed date of withdrawal detailing the Indemnification Collateral proposed to be
withdrawn and specifying the account or address to which the withdrawn Collateral should be
delivered; and provided, further, that Securities Intermediary has received a Written Instruction
and/or entitlement order from Secured Party at least five (5) Business Days in advance of the
requested withdrawal authorizing the withdrawal of such Excess Collateral Amount. Secured Party
hereby agrees that it will timely deliver an appropriate entitlement order to Securities
Intermediary adequate to permit a permitted transfer of any Excess Collateral Amount. If any
Common Equity Units are withdrawn from the Indemnification Collateral Account, the corresponding
Pledge Collateral shall be transferred from the Pledge Collateral Accounts to the appropriate other
Collateral Accounts under the Pledge Agreement.
If Secured Party does not intend to deliver an instruction and/or entitlement order to
Securities Intermediary authorizing a withdrawal under the circumstances described above, Secured
Party shall deliver to Pledgor a notice providing detail of the defects in Pledgor’s withdrawal
request not later than five (5) Business Days prior to the proposed date of withdrawal. Secured
Party will give written notice to Securities Intermediary and Pledge Collateral Agent upon the
satisfaction in full of the Obligations. If any Common Equity Units remain in the Indemnification
Collateral Account upon such satisfaction in full (and provided such notice has been received by
the Securities Intermediary and the Pledge Collateral Agent), such Common Equity Units will be
transferred to Pledgor or upon its order and the corresponding Pledge Collateral shall be
transferred from the Pledge Collateral Accounts to the other appropriate subaccounts under the
Pledge Agreement.
SECTION 4.3 Substitutions. Subject to the provisions of this Section 4.3, Pledgor may
substitute cash for any Indemnification Collateral then held in the Indemnification Collateral
Account. As a condition to effecting a substitution, at least ten (10) Business Days in advance of
the proposed date of substitution, Pledgor shall be required to deliver written notice to Secured
Party, with a copy to Securities Intermediary, specifying: (i) the proposed date of substitution,
(ii) the amount of cash proposed to be transferred to the Indemnification Collateral Account and
(iii) the Indemnification Collateral proposed to be withdrawn from the Indemnification Collateral
Account. Pledgor shall be entitled to effect the proposed substitution; provided, that Securities
Intermediary has received a Written Instruction and/or entitlement order from Secured
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Party at least five (5) Business Days in advance of the requested withdrawal authorizing
Securities Intermediary to effect the substitution and that, prior to such substitution, the
Pledgor shall have delivered to the Secured Party a written opinion of outside counsel for the
Pledgor, in form and substance reasonably acceptable to the Secured Party stating that (i) this
Agreement is effective to create a security interest in the cash credited to the Deposit Account
and the Permitted
Investments then held in the Indemnification Collateral Account
in
favor of the Secured Party; (ii) by virtue of this Agreement, the Secured Party’s security interest
in the cash credited to the Deposit Account and the Permitted
Investments then held in the Indemnification Collateral Account has been perfected; and (iii) no adverse claim under
Article 8 of the UCC may be asserted against the Secured Party’s security interest in any financial
asset credited to Eligible Collateral credited to the Indemnification Collateral Account.
Securities Intermediary shall be entitled to conclusively assume that such opinion has been
delivered unless Secured Party gives it written notice to the contrary.
Secured Party hereby agrees that it will timely deliver an appropriate entitlement order to
the Securities Intermediary adequate to permit a permitted substitution of Indemnification
Collateral; provided, however, that it shall not be required to deliver such an instruction and/or
entitlement order unless the amount of cash proposed to be transferred to
the Indemnification Collateral Account is at least equal to the Fair Value of the Indemnification
Collateral proposed to be withdrawn from the Indemnification Collateral Account. If Secured Party
does not intend to deliver an instruction and/or entitlement order to Securities Intermediary
authorizing a substitution of Indemnification Collateral under the circumstances described above
Secured Party shall deliver to Pledgor a notice, not later than five (5) Business Days prior to the
proposed date of withdrawal, providing details of the shortfall in the amount of cash to be transferred as compared to the Fair Value of the Indemnification Collateral
proposed to be withdrawn.
If any substitution involves the withdrawal of Common Equity Units from the Indemnification
Collateral Account, the Pledge Collateral corresponding to such Common Equity Units shall be
transferred from the Pledge Collateral Accounts to the other appropriate subaccounts under the
Pledge Agreement. Substitutions of Pledge Collateral pursuant to the terms of Sections 5.1(c), 5.2
and 5.3 of the Pledge Agreement shall be effected in accordance with such terms and Section 4.4(a)
hereof.
Notwithstanding the foregoing, (i), solely in connection with the AIG Equity Unit Public
Offering, all or a portion of the Equity Units Net Proceeds will be directly deposited by the
Managing Underwriter in accordance with the Indemnification Instruction, Waiver and Acknowledgment
by wire transfer of immediately available funds to the Indemnification Collateral Account as
Eligible Collateral and substituted for Indemnification Collateral then held in the Indemnification
Collateral Account in accordance with the Indemnification Instruction,
Waiver and Acknowledgment contemplated by Section 6.6(b)
of the Coordination Agreement, and (ii) Pledgor will be permitted to substitute any proceeds of a
sale or transfer of Common Equity Units permitted under the Amended Investor Rights Agreement
following reasonable notice to Secured Party with a copy to Securities Intermediary, and Secured
Party hereby agrees that it will timely deliver an appropriate securities entitlement order to
Securities Intermediary adequate to permit such substitution of Indemnification Collateral in the
case of clause (ii).
SECTION 4.4 Common Equity Units as Collateral.
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(a) Collateral Substitutions. If Pledgor effects a Collateral Substitution (as such term is
defined in the Stock Purchase Contract Agreement) with respect to any Stock Purchase Contracts
forming part of Common Equity Units credited to the Indemnification Collateral Account by
exercising its right to do so under the Stock Purchase Contract Agreement, the Stock Purchase
Contracts and the Pledge Agreement, the Normal Common Equity Units or Stripped Common Equity Units
(as such terms are defined in the Stock Purchase Contract Agreement) created pursuant to such
Collateral Substitution, but not the Debt Securities or Treasury Securities (as such terms are
defined in the Stock Purchase Contact Agreement) released from the security interest created
pursuant to the Pledge Agreement, shall, unless otherwise agreed by Secured Party, be credited to
the Indemnification Collateral Account as additional Indemnification Collateral, and the Debt
Securities or Treasury Securities released from the security interest created pursuant to the
Pledge Agreement shall be released from the security interest created pursuant to this Agreement
and delivered to the Pledgor. Secured Party shall be entitled to retain the Normal Common Equity
Units or Stripped Common Equity Units created pursuant to such Collateral Substitution without
there being any reduction in the Obligations as a result of such retention.
(b) Cash Settlement. If Pledgor effects an Early Settlement, Cash Settlement or Cash Merger
Early Settlement (as such terms are defined in the Stock Purchase Contract Agreement) other than as
described in Section 4.4(d) below of any Stock Purchase Contracts forming part of Common Equity
Units credited to the Indemnification Collateral Account for cash by exercising its right to do so
under the Stock Purchase Contract Agreement, the Stock Purchase Contracts and the Pledge Agreement,
or duly elects not to exercise its Put Right upon a Final Failed Remarketing (as such terms are
defined in the Stock Purchase Contract Agreement and Pledge Agreement, respectively), the Common
Stock so acquired, but not the cash paid therefor, shall, unless otherwise agreed by Secured Party,
be credited to the Indemnification Collateral Account as additional Indemnification Collateral.
Secured Party shall be entitled to retain the cash paid as the purchase price for such Common Stock
without there being any reduction in the Obligations as a result of such retention. The Debt
Securities or Treasury Securities in the Pledge Collateral Accounts relating to the Stock Purchase
Contracts pursuant to which such cash purchase was made shall be released from the Pledge
Collateral Accounts to Pledgor upon such purchase pursuant to the terms of the Pledge Agreement.
(c) Remarketing. If Pledgor purchases Common Stock with the cash proceeds of any remarketing,
in accordance with the terms of the Stock Purchase Contract Agreement, the Stock Purchase Contracts
and the Pledge Agreement, of Debt Securities forming part of the Common Equity Units credited to
the Indemnification Collateral Account, the Common Stock so acquired, but not the cash received
therefore, shall, unless otherwise agreed by Secured Party, be credited to the Indemnification
Collateral Account as additional Indemnification Collateral. Secured Party shall be entitled to
retain cash proceeds as the purchase price for such Common Stock without there being any reduction
in the Obligations as a result of such retention. The Debt Securities sold in such remarketing
that were credited to the Pledge Collateral Accounts shall be released from the Pledge Collateral
Accounts pursuant to the terms of the Pledge Agreement.
If Pledgor purchases Common Stock pursuant to Stock Purchase Contracts relating to any Common
Equity Units credited to the Indemnification Collateral Account in consideration for
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the cash proceeds of Treasury Securities, the Common Stock so acquired shall, unless otherwise
agreed by Secured Party, be credited to the Indemnification Collateral Account as additional
Indemnification Collateral. Secured Party shall be entitled to retain such consideration as the
purchase price for such Common Stock without there being any reduction in the Obligations as a
result of such retention.
(d) Put Right; Settlement in Kind. If Pledgor purchases Common Stock pursuant to Stock
Purchase Contracts relating to any Common Equity Units credited to the Indemnification Collateral
Account in consideration for any Debt Securities pursuant to its deemed exercise of the Put Right
or in connection with a Cash Merger Early Settlement (each as defined in the Stock Purchase
Contract Agreement), the Common Stock so acquired, but not such Debt Securities, shall, unless
otherwise agreed by Secured Party, be credited to the Indemnification Collateral Account as
additional Indemnification Collateral. Secured Party shall be entitled to retain such
consideration as the purchase price for such Common Stock without there being any reduction in the
Obligations as a result of such retention, and such Debt Securities or Treasury Securities shall be
released from the Pledge Collateral Accounts pursuant to the Pledge Agreement.
(e) Termination Events. If, pursuant to Stock Purchase Contracts relating to any Common
Equity Units credited to the Indemnification Collateral Account, Pledgor takes Debt Securities or
Treasury Securities free and clear of the lien of the Pledge Agreement rather than Common Stock as
a result of a Termination Event (as defined in the Stock Purchase Contract Agreement), such Debt
Securities or Treasury Securities so acquired, shall, unless otherwise agreed by Secured Party, be
credited to the Indemnification Collateral Account as additional Indemnification Collateral and
shall be released from the Pledge Collateral Accounts pursuant to the Pledge Agreement.
(f) Cooperation. So long as no default has occurred and is continuing, upon request of
Pledgor to exercise any of its rights with respect to Common Equity Units credited to the
Indemnification Collateral Account as set forth in Sections 4.4(a) through (d) above, Secured Party
and Securities Intermediary shall cooperate with Pledgor, including by delivering any appropriate
instruction or notice required pursuant to the terms of the Stock Purchase Contract Agreement and
Pledge Agreement, to effect the exercise of such rights.
SECTION 4.5 Treatment of Proceeds. Except as set forth in Sections 2.9 and 4.4 hereof, all
dividends, interest, distributions and all other
interest or other earnings (which for the avoidance of doubt shall include any earnings on any Permitted Investments)
(collectively, “Earnings”) of the
Indemnification Collateral shall be released from the security interest created pursuant to this
Agreement and Securities Intermediary shall promptly upon receipt
thereof (i) deliver to the
Collateral Agent for distribution to the Pledgor as provided in the
Pledge Agreement all Earnings relating to the Pledge Collateral and
(ii) deliver to Pledgor all Earnings not
relating to the Pledge Collateral.
SECTION 4.6 Exclusive Control. Securities Intermediary is authorized to act upon any Written
Instructions, including entitlement orders with respect to the securities account that is part of
the Indemnification Collateral Account and instructions relating to the deposit account that is
part of the Indemnification Collateral Account, solely and exclusively from Secured Party.
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Securities Intermediary is authorized to act upon any Written Instructions, including
entitlement orders with respect to the Pledge Collateral Accounts, solely and exclusively from
Pledge Collateral Agent. Secured Party hereby covenants for the benefit of Pledgor that Secured
Party will not originate entitlement orders or instructions concerning the Indemnification
Collateral Account or the Indemnification Collateral or cause Pledge Collateral Agent to take any
action with respect to the Pledge Collateral or the Pledge Collateral Accounts except as provided
in Sections 2.9, 4.2, 4.3 and 4.4 hereof with respect to payment of Obligations when due, the
substitution, withdrawal, release or transfer of Indemnification Collateral or Pledge Collateral,
the treatment of proceeds and the exercise its rights as a secured party upon default. The
foregoing covenant is for the benefit of Pledgor only and will not be deemed to constitute a
limitation on Secured Party’s right, as between Securities Intermediary and Secured Party, to
originate entitlement orders and instructions with respect to the Indemnification Collateral
Account and the Indemnification Collateral, on Securities Intermediary’s obligation to comply with
those entitlement orders and instructions without further consent by Pledgor, on Secured Party’s
right, as between Secured Party and Pledge Collateral Agent, to instruct Pledge Collateral Agent to
take action with respect to the Pledge Collateral or the Pledge Collateral Accounts, or on Pledge
Collateral Agent’s obligation to comply with those instructions without further consent by Pledgor.
Securities Intermediary agrees that it will, without inquiry or consent of Pledgor or any person
acting or purporting to act on behalf of Pledgor, comply with Written Instructions (including
entitlement orders and instructions relating to the deposit account that is part of the
Indemnification Collateral Account) from Secured Party with respect to the Indemnification
Collateral Account. Without prejudice to the exclusive right of Secured Party to give entitlement
orders, if Securities Intermediary receives conflicting directions with respect to the
Indemnification Collateral Account or the Indemnification Collateral from Pledgor and Secured
Party, Securities Intermediary will act at the direction of Secured Party and will be fully
protected in so acting. Pledge Collateral Agent agrees to comply with instructions given pursuant
to the Pledge Agreement and with instructions given by Secured Party pursuant to this Agreement
without further consent from Pledgor. If instructions of Secured Party to Pledge Collateral Agent
pursuant to this Agreement conflict with the obligations of the Pledge Collateral Agent under the
Pledge Agreement, Pledge Collateral Agent shall be entitled to comply with the Pledge Agreement and
not to comply with such conflicting instructions given pursuant to this Agreement.
SECTION 4.7 Statements. Securities Intermediary shall furnish Pledgor and Secured Party with
monthly Indemnification Collateral Account statements in accordance with its customary procedures.
Securities Intermediary shall also furnish Pledgor and Secured Party with monthly statements with
respect to the Pledge Collateral Accounts in accordance with its customary procedures. The
requirements of this Section 4.7 shall be performed by the Securities Intermediary by granting each
of the Pledgor and the Secured Party on-line read only access to the Indemnification Collateral
Account and the Pledge Collateral Accounts.
SECTION 4.8 Notice of Adverse Claims. Upon receipt of written notice of any lien,
encumbrance or adverse claim against the Indemnification Collateral Account, the Pledge Collateral
Accounts or any portion of the Indemnification Collateral or Pledge Collateral, Securities
Intermediary shall use reasonable efforts to notify Secured Party and Pledgor as promptly as
practicable under the circumstances.
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SECTION 4.9 Subordination of Lien; Set-off. The parties agree that any security interest in
or lien on, or right of set-off with respect to, any of the Indemnification Collateral or the
Pledge Collateral that Securities Intermediary or Pledge Collateral Agent may now or in the future
may have is hereby subordinated to the security interest of Secured Party hereunder, except to the
extent of any fees, charges, expenses and other amounts owed to Securities Intermediary or Pledge
Collateral Agent and incurred in connection with the performance of the duties of Securities
Intermediary hereunder and the maintenance and operation of the Indemnification Collateral Account
and the Indemnification Collateral, for which Securities Intermediary shall have a prior claim to
the Indemnification Collateral.
SECTION 4.10 No Release Without Consent. Securities Intermediary and Pledge Collateral Agent
agree that they will not extend any credit nor make any loans secured by the Indemnification
Collateral, the Indemnification Collateral Account, the Pledge Collateral or the Pledge Collateral
Accounts, including without limitation any so-called “margin loans.” Except as provided in
Sections 2.9, 4.2, 4.3, 4.4 and 4.5 hereof or in the Pledge Agreement, no payments of principal or
interest, or addition, substitution, sale, transfer, release, withdrawal or other alienation of
Indemnification Collateral or the Pledge Collateral shall be made except upon the written consent
of Secured Party.
ARTICLE V
General Terms and Conditions
General Terms and Conditions
SECTION 5.1 Standard of Care; Limitation of Liability; Indemnification.
(a) Except as otherwise expressly provided herein, Securities Intermediary and Pledge
Collateral Agent shall not be liable for any costs, expenses, damages, liabilities or claims,
including attorneys’ fees (“Losses”) incurred by or asserted against Pledgor or Secured Party,
except those Losses arising out of the gross negligence or willful misconduct of Securities
Intermediary or Pledge Collateral Agent, respectively. Neither Securities Intermediary nor Pledge
Collateral Agent shall have any liability whatsoever for the action or inaction of any Depository.
In no event shall Securities Intermediary or Pledge Collateral Agent be liable to Pledgor, Secured
Party or any third party for special, indirect or consequential damages, or lost profits or loss of
business, arising in connection with this Agreement, nor shall Securities Intermediary or Pledge
Collateral Agent be liable:
(i) for acting in accordance with any Written Instructions actually received by
Securities Intermediary or Pledge Collateral Agent and reasonably believed by Securities
Intermediary or Pledge Collateral Agent, respectively, to have been given by an
Authorized Person of Secured Party;
(ii) for conclusively presuming that all disbursements of cash or deliveries of
securities directed by Secured Party by a Written Instruction are in accordance with
this Agreement, the Pledge Agreement or the Indemnification Provisions, as the case may
be,
(iii) for holding property in any particular country, including, but not limited
to, losses resulting from nationalization, expropriation or other governmental
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actions; regulation of the banking or securities industry; exchange or currency
controls or restrictions, devaluations or fluctuations; availability of cash or
securities or market conditions which prevent the transfer of property or execution of
securities transactions or affect the value of property; or
(iv) for the insolvency of any depository or for any Indemnification Collateral or
Pledge Collateral held by such depository;
provided, however, that Securities Intermediary or Pledge Collateral Agent has not acted with gross
negligence or engaged in willful misconduct with respect to the specific Loss against which
indemnification is sought.
(b) Securities Intermediary and Pledge Collateral Agent each shall have the right to appoint
agents in connection with any of their respective duties hereunder, and the Securities
Intermediary and Pledge Collateral Agent shall not be liable for any action taken or omitted by
such agents selected in good faith and with due care in accordance with the terms of this
Agreement; provided, however, that neither the Securities Intermediary nor the Pledge Collateral
Agent shall be permitted to appoint any subcustodian in connection with any of their respective
duties hereunder. The appointment of agents pursuant to this Section 5.1(b) shall be subject to
prior written consent of the Secured Party, which consent shall not be unreasonably withheld.
(c) AIG agrees to indemnify Securities Intermediary and Pledge Collateral Agent and hold
Securities Intermediary and Pledge Collateral Agent harmless from and against any and all claims,
liabilities, losses, damages, fines, penalties and expenses sustained or incurred by or asserted
against Securities Intermediary or Pledge Collateral Agent, as the case may be, by reason of or as
a result of any action or inaction, or arising out of the performance of Securities Intermediary
or Pledge Collateral Agent, respectively, hereunder, including reasonable fees and expenses of
counsel incurred by Securities Intermediary or Pledge Collateral Agent, as the case may be, in a
defense of claims by AIG, Pledgor or Secured Party; provided, AIG shall not indemnify either
Securities Intermediary or Pledge Collateral Agent for those losses arising out of Securities
Intermediary’s or Pledge Collateral Agent’s gross negligence or willful misconduct. This
indemnity shall be a continuing obligation of AIG and its successors and assigns, notwithstanding
the resignation or removal of Securities Intermediary or Pledge Collateral Agent or the
termination of this Agreement.
SECTION 5.2 No Obligation Regarding Quality of Collateral. Without limiting the generality
of Section 5.1, neither Securities Intermediary nor Pledge Collateral Agent shall be under any
obligation to inquire into, and shall not be liable for, any losses incurred by Pledgor, Secured
Party or any other person as a result of the receipt or acceptance of fraudulent, forged or invalid
Indemnification Collateral or Pledge Collateral, or Indemnification Collateral or Pledge Collateral
which otherwise is not freely transferable or deliverable without encumbrance in any relevant
market. Neither Securities Intermediary nor Pledge Collateral Agent shall be required to advise any
party as to selling or retaining, or taking or refraining from taking any action with respect to,
any securities or other property deposited hereunder.
25
SECTION 5.3 No Responsibility Concerning Indemnification Provisions. It is understood and
agreed that, notwithstanding references to the Indemnification Provisions in this Agreement,
neither Securities Intermediary nor Pledge Collateral Agent has any interest in, or any duty,
responsibility or obligation with respect to, the Indemnification Provisions (including without
limitation, any duty, responsibility or obligation to monitor Pledgor’s or Secured Party’s
compliance with the Indemnification Provisions or to know the terms of the Indemnification
Provisions).
SECTION 5.4 No Duty of Oversight. Securities Intermediary is not at any time under any duty
to monitor the value of any Indemnification Collateral in the Indemnification Collateral Account or
whether the Indemnification Collateral is of a type required or permitted to be held in the
Indemnification Collateral Account.
SECTION 5.5 Advice of Counsel. Securities Intermediary and Pledge Collateral Agent may, with
respect to questions of law, obtain the advice of counsel selected in good faith and shall be fully
protected with respect to anything done or omitted by it in good faith in conformity with such
advice.
SECTION 5.6 No Collection Obligations. Securities Intermediary and Pledge Collateral Agent
shall be under no obligation to take action to collect any amount payable on Indemnification
Collateral in default, or if payment is refused after due demand and presentment.
SECTION 5.7 Fees and Expenses. AIG agrees to pay to Securities Intermediary and Pledge
Collateral Agent the fees as may be agreed upon from time to time. AIG shall reimburse Securities
Intermediary and Pledge Collateral Agent for all reasonable costs associated with transfers of
Indemnification Collateral and Pledge Collateral to Securities Intermediary and records kept in
connection with this Agreement. AIG shall also reimburse Securities Intermediary and Pledge
Collateral Agent for reasonable out-of-pocket expenses (including reasonable attorneys’ fees and
expenses) which are a normal incident of the services provided hereunder. The obligations of AIG
under this Section shall be a continuing obligation of AIG, its successors and assigns,
notwithstanding the resignation or removal of Securities Intermediary or Pledge Collateral Agent or
the termination of this Agreement.
SECTION 5.8 Effectiveness of Instructions; Reliance; Risk Acknowledgements; Additional Terms.
(a) Secured Party shall have the right, by one or more written instruments executed and
delivered to Securities Intermediary or Pledge Collateral Agent, to direct the time, method and
place of conducting any proceeding for the realization of any right or remedy available to
Securities Intermediary or Pledge Collateral Agent, or of exercising any power conferred on
Securities Intermediary or Pledge Collateral Agent, or to direct the taking or refraining from
taking of any action authorized by this Agreement; provided, however, that (i) such direction shall
not conflict with the provisions of any law or of this Agreement or involve Securities Intermediary
or Pledge Collateral Agent in personal liability and (ii) Securities Intermediary or Pledge
Collateral Agent shall be indemnified to its satisfaction as provided herein. Subject to the terms
below, Securities Intermediary and Pledge Collateral Agent shall be entitled, in the absence of bad
faith, to rely upon any Written Instructions actually received by Securities
26
Intermediary or Pledge Collateral Agent, respectively, and reasonably believed by it to have
been duly authorized and delivered by Secured Party.
(b) In each case that Securities Intermediary or Pledge Collateral Agent may or is
required hereunder to take any action, including without limitation to make any
determination or judgment, to give consents, to exercise rights, powers or remedies, to
release or sell Indemnification Collateral or Pledge Collateral or otherwise to act
hereunder, the Securities Intermediary or Pledge Collateral Agent may seek direction from
Secured Party. Securities Intermediary or Pledge Collateral Agent shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in accordance with
the direction from Secured Party. Unless direction is otherwise expressly provided herein,
if Securities Intermediary or Pledge Collateral Agent shall request direction from Secured
Party with respect to any action, Securities Intermediary or Pledge Collateral Agent shall
be entitled to refrain from such action unless and until such agent shall have received
direction from Securities Intermediary or Pledge Collateral Agent, and the agent shall not
incur liability to any Person by reason of so refraining.
(c) If Securities Intermediary or Pledge Collateral Agent receives Written
Instructions which appear on their face to have been transmitted via (i) computer
facsimile, email, the Internet or other insecure electronic method, or (ii) secure
electronic transmission containing applicable authorization codes, passwords and/or
authentication keys, Secured Party understands and agrees that neither Securities
Intermediary nor Pledge Collateral Agent can determine the identity of the actual sender of
such Written Instructions and that Securities Intermediary or Pledge Collateral Agent, as
the case may be, shall conclusively presume that such Written Instructions have been sent
by an Authorized Person. Secured Party shall be responsible for ensuring that only its
Authorized Persons transmit such Written Instructions to Securities Intermediary and Pledge
Collateral Agent and that all of its Authorized Persons treat applicable user and
authorization codes, passwords and/or authentication keys with extreme care.
(d) Secured Party acknowledges and agrees that it is fully informed of the protections
and risks associated with the various methods of transmitting Written Instructions to
Securities Intermediary and Pledge Collateral Agent and that there may be more secure
methods of transmitting Written Instructions than the method(s) selected by it. Secured
Party agrees that the security procedures (if any) to be followed in connection with its
transmission of Written Instructions provide to it a commercially reasonable degree of
protection in light of its particular needs and circumstances.
SECTION 5.9 Certain Rights.
(a) Whenever in the administration of the provisions of this Agreement Securities Intermediary
and Pledge Collateral Agent shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering any action to be taken hereunder, such matter (unless
other evidence in respect thereof be herein specifically prescribed) may, in the absence of gross
negligence or bad faith on the part of Securities Intermediary and Pledge Collateral Agent, be
deemed to be conclusively proved and established by a certificate signed by one of the
27
Secured Party’s officers, and delivered to Securities Intermediary and Pledge Collateral Agent
and such certificate, in the absence of gross negligence or bad faith on the part of the Securities
Intermediary and Pledge Collateral Agent, shall be full warrant to the Securities Intermediary and
Pledge Collateral Agent for any action taken, suffered or omitted by it under the provisions of
this Agreement upon the faith thereof.
(b) The Securities Intermediary and Pledge Collateral Agent shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, entitlement order, approval or other paper
or document, may conclusively rely and shall be fully protected in acting or refraining from acting
thereon if believed to be genuine and to have been signed or presented by the proper party or
parties and may conclusively rely on the truth of the statements and the correctness of the
opinions expressed therein.
(c) Neither Securities Intermediary nor Pledge Collateral Agent shall have any responsibility,
other than complying with the express terms and provisions of this Agreement, for perfecting or
maintaining the perfection of any security interest granted to it or to the Secured Party hereunder
or for filing or re-filing any financing statement or continuation statement in any public office
at any time or times.
(d) In the event funds or securities transfer instructions, investment instructions or
instructions to sell or liquidate investments are given (other than in writing at the time of
execution of this Agreement), whether in writing, by telecopier or otherwise, Securities
Intermediary and Pledge Collateral Agent are authorized to seek confirmation of such instructions
by telephone call-back to the person or persons designated on Schedule I hereto, and Securities
Intermediary and Pledge Collateral Agent may rely upon the confirmations of anyone purporting to be
the person or persons so designated. The persons and telephone numbers for call-backs may be
changed only in writing actually received and acknowledged by Securities Intermediary and Pledge
Collateral Agent. The parties to this Agreement acknowledge that such security procedure is
commercially reasonable.
(e) The Securities Intermediary shall have no obligation to invest and reinvest any cash held
in the Indemnification Collateral Account in the absence of a written investment direction from
Pledgor specifying the investment to be made and
certifying that such investment constitutes a Permitted Investment. Any investment will be made by
the Securities Intermediary
as soon as practicable after receipt of
a written direction therefor. In no event shall the Securities
Intermediary be liable for the selection of investments or for investment losses incurred thereon.
The Securities Intermediary shall have no liability in respect of losses incurred as a result of
the liquidation of any investment prior to its stated maturity or the failure of Pledgor to provide
to the Securities Intermediary timely written investment direction. Any written investment
direction or written direction to sell or liquidate investments shall be in the form of Written
Instructions and any sale or liquidation of Permitted Investments
shall be made in accordance with the Investment Guidelines.
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SECTION 5.10 Indemnification Collateral Account Disclosure. Securities Intermediary and
Pledge Collateral Agent are authorized to supply any information regarding the Indemnification
Collateral Account or the Pledge Collateral Accounts which is required by any law or governmental
regulation now or hereafter in effect.
SECTION 5.11 Force Majeure. Neither Securities Intermediary nor Pledge Collateral Agent
shall be responsible or liable for any failure or delay in the performance of its obligations under
this Agreement arising out of or caused, directly or indirectly, by circumstances beyond its
reasonable control, including without limitation, acts of God; earthquakes; fires; floods; wars;
civil or military disturbances; sabotage; epidemics; riots; interruptions, loss or malfunctions of
utilities, computer (hardware or software) or communications service; accidents; labor disputes;
acts of civil or military authority; governmental actions; inability to obtain labor, material,
equipment or transportation.
SECTION 5.12 No Implied Duties. Neither Securities Intermediary nor Pledge Collateral Agent
shall have any duties or responsibilities whatsoever except such duties and responsibilities as are
specifically set forth in this Agreement, and no covenant or obligation shall be implied against
Securities Intermediary or Pledge Collateral Agent in connection with this Agreement. No provision
of this Agreement shall require the Securities Intermediary or Pledge Collateral Agent to expend or
risk its own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.
ARTICLE VI
Miscellaneous
Miscellaneous
SECTION 6.1 Resignation or Removal of Securities Intermediary and Pledge Collateral Agent.
Subject to the appointment and acceptance of a successor Pledge Collateral Agent or Securities
Intermediary as provided below:
(i) Pledge Collateral Agent and Securities Intermediary may resign at any time by
giving notice thereof to Secured Party; provided, that Pledge Collateral Agent may
resign only if it also resigns as Collateral Agent under and in accordance with the
Pledge Agreement; and
(ii) Pledge Collateral Agent and Securities Intermediary may be removed at any time
by Secured Party; provided, that any such removal of the Pledge Collateral Agent is also
effected in connection with the removal of the Collateral Agent under and in accordance
with the Pledge Agreement.
Secured Party shall promptly notify Pledgor of any resignation or removal of Pledge Collateral
Agent or Securities Intermediary pursuant to this Section 6.1. Upon any such resignation or
removal, Secured Party shall have the right to appoint a successor Pledge Collateral Agent or
Securities Intermediary, as the case may be, provided, such appointment of the Pledge Collateral
Agent also complies with the Pledge Agreement. If no successor Pledge Collateral Agent or
Securities Intermediary shall have been so appointed and shall have accepted such appointment
29
within thirty (30) days after the retiring Pledge Collateral Agent’s or Securities Intermediary’s
giving of notice of resignation or Secured Party’s giving notice of such removal, then the retiring
or removed Pledge Collateral Agent or Securities Intermediary may petition any court of competent
jurisdiction, at the expense of Secured Party, for the appointment of a successor Pledge Collateral
Agent or Securities Intermediary. Pledge Collateral Agent and Securities Intermediary shall each
be a bank, trust company or national banking association with a combined capital and surplus of at
least $50,000,000. Upon the acceptance of any appointment as Pledge Collateral Agent or Securities
Intermediary hereunder by a successor Pledge Collateral Agent or Securities Intermediary, as the
case may be, such successor Pledge Collateral Agent or Securities Intermediary, as the case may be,
shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Pledge Collateral Agent or Securities Intermediary, as the case may be, and the
retiring Pledge Collateral Agent or Securities Intermediary, as the case may be, shall take all
appropriate action, subject to payment of any amounts then due and payable to it hereunder, to
transfer any money and property held by it hereunder (including the Indemnification Collateral or
the Pledge Collateral) to such successor. The retiring Pledge Collateral Agent or Securities
Intermediary shall, upon such succession, be discharged from its duties and obligations as Pledge
Collateral Agent or Securities Intermediary hereunder. After any retiring Pledge Collateral
Agent’s or Securities Intermediary’s resignation hereunder as Pledge Collateral Agent or Securities
Intermediary, the provisions of Article V shall continue in effect for its benefit in respect of
any actions taken or omitted to be taken by it while it was acting as the Pledge Collateral Agent
or Securities Intermediary. Any resignation or removal of Pledge Collateral Agent or Securities
Intermediary hereunder, at a time when such person is acting as Pledge Collateral Agent or
Securities Intermediary, shall be deemed for all purposes of this Agreement as the simultaneous
resignation or removal of Pledge Collateral Agent and Securities Intermediary.
SECTION 6.2 Termination. This Agreement shall terminate upon (a) the receipt by Security
Intermediary and Pledge Collateral Agent of Written Instructions from Secured Party expressly
stating that Secured Party no longer claims any security interest in either the Indemnification
Collateral or the Pledge Collateral, the subsequent transfer of the Indemnification Collateral from
the Indemnification Collateral Account pursuant to Section 4.2 and the corresponding transfers of
the Pledge Collateral under the Pledge Agreement, or (b) the transfer of all of the Indemnification
Collateral and Pledge Collateral to Secured Party pursuant to an entitlement order delivered to
Securities Intermediary and an instruction delivered to Pledge Collateral Agent. Except as
otherwise provided herein, all obligations of the parties to each other hereunder shall cease upon
termination of this Agreement.
SECTION 6.3 Certificates of Authorized Persons. Secured Party and Pledgor agree to furnish
to Securities Intermediary and Pledge Collateral Agent a new Certificate of Authorized Persons in
the event of any change in the then present Authorized Persons. Until such new Certificate is
received, Securities Intermediary and Pledge Collateral Agent shall be fully protected in acting
upon Written Instructions of such present Authorized Persons.
SECTION 6.4 Notices.
30
(a) Any notice or other instrument in writing, authorized or required by this
Agreement to be given to Securities Intermediary, shall be sufficiently given if addressed
to Securities Intermediary and received by it at its offices at Deutsche Bank Trust Company
Americas, Trust and Securities Services, 00 Xxxx Xxxxxx, 00xx Xxxxx, XX: NYC60-2710, Xxx
Xxxx, XX 00000, Fax: 000-000-0000, Attention: Corporates Team / MetLife, Inc., with a copy
to Deutsche Bank National Trust Company Trust & Securities Services, 000 Xxxxx Xxx, 0xx
Xxxxx, XX: JCY03-0699, Xxxxxx Xxxx, XX 00000-0000, Fax: 000-000-0000, Attention: Corporates
Team / MetLife, Inc., or at such other place as Securities Intermediary may from time to
time designate in writing.
(b) Any notice or other instrument in writing, authorized or required by this
Agreement to be given to Pledge Collateral Agent, shall be sufficiently given if addressed
to Pledge Collateral Agent and received by it at its offices at Deutsche Bank Trust Company
Americas, Trust and Securities Services, 00 Xxxx Xxxxxx, 00xx Xxxxx, XX: NYC60-2710, Xxx
Xxxx, XX 00000, Fax: 000-000-0000, Attention: Corporates Team / MetLife, Inc., with a copy
to Deutsche Bank National Trust Company Trust & Securities Services, 000 Xxxxx Xxx, 0xx
Xxxxx, XX: JCY03-0699, Xxxxxx Xxxx, XX 00000-0000, Fax: 000-000-0000, Attention: Corporates
Team / MetLife, Inc., or at such other place as Pledge Collateral Agent may from time to
time designate in writing.
(c) Any notice or other instrument in writing, authorized or required by this
Agreement to be given to Secured Party shall be sufficiently given if addressed to Secured
Party and received by it at its offices at MetLife, Inc., 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx
Xxxx, XX 00000; Attention: General Counsel; Facsimile: (000) 000-0000, or at such other
place as Secured Party may from time to time designate in writing.
(d) Any notice or other instrument in writing, authorized or required by this
Agreement to be given to Pledgor shall be sufficiently given if addressed to Pledgor and
received by it at its offices at ALICO Holdings LLC, c/o American International Group,
Inc., 00 Xxxx Xxxxxx, Xxx Xxxx, XX 00000; Attention: General Counsel; Facsimile: (000)
000-0000, or at such other place as Pledgor may from time to time designate in writing.
(e) Any notice or other instrument in writing, authorized or required by this
Agreement to be given to Stock Purchase Contract Agent shall be sufficiently given if
addressed to Stock Purchase Contract Agent and received by it at its offices at Deutsche
Bank Trust Company Americas, Trust and Securities Services, 00 Xxxx Xxxxxx, 00xx Xxxxx, XX:
NYC60-2710, Xxx Xxxx, XX 00000, Fax: 000-000-0000, Attention: Corporates Team / MetLife,
Inc., with a copy to Deutsche Bank National Trust Company Trust & Securities Services, 000
Xxxxx Xxx, 0xx Xxxxx, XX: JCY03-0699, Xxxxxx Xxxx, XX 00000-0000, Fax: 000-000-0000,
Attention: Corporates Team / MetLife, Inc., or at such other place as Stock Purchase
Contract Agent may from time to time designate in writing.
Any such notice or other instrument in writing may be delivered by first class mail, personal
delivery or telecopy.
SECTION 6.5 Cumulative Rights; No Waiver. Each and every right granted to Secured Party,
Pledgor, Securities Intermediary or Pledge Collateral Agent hereunder or under any other
31
document delivered hereunder or in connection herewith, or allowed it by law or equity, shall
be cumulative and may be exercised from time to time. No failure on the part of Secured Party,
Pledgor, Securities Intermediary or Pledge Collateral Agent to exercise, and no delay in
exercising, any right will operate as a waiver thereof, nor will any single or partial exercise by
Secured Party, Pledgor, Securities Intermediary or Pledge Collateral Agent of any right preclude
any other future exercise thereof or the exercise of any other right.
SECTION 6.6 Severability; Amendments; Assignment. In case any provision in or obligation
under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected thereby.
This Agreement may not be waived, amended or modified in any manner except by a written agreement
executed by the parties hereto. This Agreement shall extend to and shall be binding upon the
parties hereto, and their respective successors and assigns; provided, however, that, except
pursuant to Section 3.7 or Section 6.1, this Agreement shall not be assignable by
any party without the written consent of the other parties and any purported assignment in
violation of this provision shall be null and void.
SECTION 6.7 Governing Law; Jurisdiction; Waiver of Immunity; Jury Trial Waiver. This
Agreement and the Indemnification Collateral Account shall be governed by and construed in
accordance with the local law of the State of New York. The State of New York shall be deemed to
be the jurisdiction of Securities Intermediary in its capacity as securities intermediary for the
Indemnification Collateral Account and hereunder and in its capacity as bank with respect to the
Deposit Account, any other deposit account comprising part of the Indemnification Collateral
Account governed by this Agreement and hereunder. Secured Party, Pledgor, Pledge Collateral Agent,
Securities Intermediary and Stock Purchase Contract Agent hereby consent to the jurisdiction of a
state or federal court situated in New York City, New York in connection with any dispute arising
hereunder. To the extent that in any jurisdiction Secured Party, Pledgor, Securities Intermediary,
Pledge Collateral Agent or Stock Purchase Contract Agent may now or hereafter be entitled to claim,
for itself or its assets, immunity from suit, execution, attachment (before or after judgment) or
other legal process, they each irrevocably agree not to claim, and hereby waives, such immunity.
Secured Party, Pledgor, Securities Intermediary, Pledge Collateral Agent and Stock Purchase
Contract Agent each hereby irrevocably waive any and all rights to trial by jury in any legal
proceeding arising out of or relating to this Agreement.
SECTION 6.8 No Third Party Beneficiaries. In performing hereunder, Securities Intermediary
and Pledge Collateral Agent are acting solely on behalf of Secured Party and Pledgor and no
contractual or service relationship shall be deemed to be established hereby between Securities
Intermediary or Pledge Collateral Agent and any other person.
SECTION 6.9 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but such counterparts shall, together, constitute only
one instrument.
SECTION 6.10 USA PATRIOT ACT. Pledgor and Secured Party hereby acknowledge that Securities
Intermediary and Pledge Collateral Agent are subject to federal laws, including the Customer
Identification Program (CIP) requirements under the USA PATRIOT Act and its implementing
regulations, pursuant to which Securities Intermediary and Pledge Collateral
32
Agent must obtain, verify and record information that allows Securities Intermediary or Pledge
Collateral Agent, as the case may be, to identify each of Pledgor and Secured Party. Accordingly,
prior to opening the Indemnification Collateral Account hereunder and the Collateral Accounts under
the Pledge Agreement Securities Intermediary and Pledge Collateral Agent will ask Pledgor and/or
Secured Party to provide certain information including, but not limited to, Pledgor’s and/or
Secured Party’s name, physical address, tax identification number and other information that will
help Securities Intermediary to identify and verify each of Pledgor’s and Secured Party’s identity
such as organizational documents, certificate of good standing, license to do business, or other
pertinent identifying information. Pledgor and Secured Party agree that Securities Intermediary
and Pledge Collateral Agent cannot open the Indemnification Collateral Account hereunder or the
Collateral Accounts under the Pledge Agreement unless and until Securities Intermediary and Pledge
Collateral Agent verify Pledgor’s and/or Secured Party’s identity in accordance with its CIP.
SECTION 6.11 Agreement of Stock Purchase Contract Agent. Stock Purchase Contract Agent
agrees that, to the extent that Pledgor must take actions or give instructions pursuant to this
Agreement that must be taken or given by Stock Purchase Contract Agent under the Pledge Agreement,
Stock Purchase Contract Agent shall take those actions or give those instructions when, if and in
the manner requested by Pledgor. In taking any such actions or giving any such instructions, Stock
Purchase Contract Agent shall incur no liability to any other party to this Agreement for taking
such actions or giving such instructions in the manner instructed by Pledgor. In connection with
its execution and performance hereunder the Stock Purchase Contract Agent is entitled to all
rights, privileges, protections, immunities, benefits and indemnities provided to it under the
Stock Purchase Contract Agreement.
33
In Witness Whereof, the parties hereto have caused this Agreement to be executed by
their respective officers, thereunto duly authorized, as of the day and year first above written.
MetLife, Inc. as Secured Party |
||||
By: | /s/ Xxxxxx X. Xxxxxxx | |||
Name: | Xxxxxx X. Xxxxxxx | |||
Title: | Senior Vice President and Treasurer | |||
ALICO Holdings LLC, as Pledgor |
||||
By: | /s/ Xxxxx X. Schreibet | |||
Name: | Xxxxx X. Schreibet | |||
Title: | Manager | |||
Deutsche Bank Trust Company Americas, as Securities Intermediary and Pledge Collateral Agent |
||||
By: | /s/ Xxxxx Xx | |||
Name: | Xxxxx Xx | |||
Title: | Vice President | |||
By: | /s/ Xxxxxxxx Xxxxx | |||
Name: | Xxxxxxxx Xxxxx | |||
Title: | Assistant Vice President | |||
Amended and Restated Indemnification Collateral Account, Security
and Control Agreement
and Control Agreement
For the limited purpose set forth in Section 6.11: Deutsche Bank Trust Company Americas, as Stock Purchase Contract Agent |
||||
By: | /s/ Xxxxx Xx | |||
Name: | Xxxxx Xx | |||
Title: | Vice President | |||
By: | /s/ Xxxxxxxx Xxxxx | |||
Name: | Xxxxxxxx Xxxxx | |||
Title: | Assistant Vice President | |||
For the limited purposes set forth in Section 5.1(c) and Section 5.7 American International Group, Inc. |
||||
By: | /s/ Xxxxx X. Xxxxxxxxx | |||
Name: | Xxxxx X. Xxxxxxxxx | |||
Title: | Executive Vice President-Treasury and Capital Markets | |||
Amended and Restated Indemnification Collateral Account, Security
and Control Agreement
and Control Agreement
SCHEDULE I
Contact Persons for Confirmation
Name |
Phone Number | |
Xxx Xxxxxxxx |
(000) 000-0000 (Office); | |
(000) 000-0000 (Cell) | ||
Morita Xxxxxxxx |
(000) 000-0000 |
SI-1
SCHEDULE II
Investment Guidelines
ALM Investment Guidelines
Portfolio
Objective
|
The Portfolio’s Objective is Safety of Principal. | |
Investible
Assets
|
Treasury Bills (1- and 3-month) and Treasury Money Market Funds | |
Asset
Distribution |
Maximum | ||||||||
Neutral | Allowable | |||||||
Point | Holdings | |||||||
Fixed Income |
||||||||
US Treasury Bills/Money
Market Funds * |
100.0 | % | 100 | % | ||||
US Treasuries / Agencies |
0.0 | % | 0 | % | ||||
Residential MBS |
0.0 | % | 0 | % | ||||
Commercial MBS |
0.0 | % | 0 | % | ||||
ABS |
0.0 | % | 0 | % | ||||
Corporates |
||||||||
NAIC 1 |
0.0 | % | 0 | % | ||||
NAIC 2 |
0.0 | % | 0 | % | ||||
Total Fixed Income |
100.0 | % |
* | Not to exceed 10% of any one Treasury Money Market Fund |
Upon receipt of a Written Instruction from
Secured Party to sell or liquidate any Permitted
Investments at least five (5) Business Days prior to the proposed date of withdrawal from the
Indemnification Collateral Account, Securities Intermediary will sell or liquidate sufficient
Permitted Investments in the Indemnification Collateral Account in order to provide for a
sufficient amount of cash in the Indemnification Collateral Account
so as to permit the withdrawal.
SII-1