EXHIBIT 4.30
EXECUTION COPY
SECURITY AND PLEDGE AGREEMENT
SECURITY AND PLEDGE AGREEMENT (the "Agreement"), dated as of January 31
2003 by and among AMERICAN COMMERCIAL LINES LLC, a Delaware corporation (the
"Borrower"), and the subsidiaries of the Borrower signatory hereto (together
with the Borrower, the "Grantors"), each a debtor and debtor-in-possession under
Chapter 11 of the Bankruptcy Code and JPMORGAN CHASE BANK, as agent (in such
capacity, the "Agent") for the financial institutions and other lenders (the
"Lenders") party to the Credit Agreement (as hereinafter defined).
WHEREAS, contemporaneously with the execution and delivery of this
Agreement, the Agent, the Lenders and the Grantors are entering into a Revolving
Credit and Guaranty Agreement dated as of the date hereof (as amended, modified
or supplemented from time to time, the "Credit Agreement"); and
WHEREAS, unless otherwise defined herein, terms defined in the Credit
Agreement are used herein as therein defined; and
WHEREAS, it is a condition precedent to the making of Loans and the
issuance of Letters of Credit that the Grantors shall have granted a security
interest, pledge and lien on (x) all cash and cash equivalents maintained in the
Letter of Credit Account pursuant to Section 364(c)(2) of the Bankruptcy Code
and (y) certain of the Grantors' assets and properties and the proceeds thereof
pursuant to Sections 364(c)(2), 364(c)(3) and 364(d)(1) of the Bankruptcy Code;
and
WHEREAS, the grant of such security interest, pledge and lien has been
authorized pursuant to Sections 364(c)(2), 364(c)(3) and 364(d)(1) of the
Bankruptcy Code by the Interim Order and (after its entry by the Bankruptcy
Court) the Final Order; and,
WHEREAS, to supplement the Interim Order and the Final Order without in
any way diminishing or limiting the effect of the Interim Order and the Final
Order or the security interest, pledge and lien granted thereunder, the parties
hereto desire to more fully set forth their respective rights in connection with
such security interest, pledge and lien; and
WHEREAS, this Agreement has been approved by the Interim Order and (after
its entry by the Bankruptcy Court) the Final Order;
NOW, THEREFORE, in consideration of the premises and in order to induce
the Lenders to make Loans and issue Letters of Credit, the Grantors hereby agree
with the Agent as follows:
SECTION 1. GRANT OF SECURITY AND PLEDGE. Each of the Grantors hereby
transfers, grants, bargains, sells, conveys, hypothecates, assigns, pledges and
sets over to the Agent for its benefit and the ratable benefit of the Lenders
and hereby grants to the Agent for its benefit and the ratable benefit of the
Lenders, a perfected pledge and security interest in all of each Grantors'
right, title and interest in and to the following (the "Collateral"), which
pledge and security interest shall be subject to the priorities and other terms
set forth in Section 2.23 of the Credit Agreement:
(a) all present and future accounts, accounts receivable, rents,
charters, charter hires, freights, sub-freights, cargoes, operating profits,
rights to stoppage in transit, and other rights of each of the Grantors to
payment for goods sold or leased or for services rendered (except those
evidenced by instruments or chattel paper), whether now existing or hereafter
arising and wherever arising, and whether or not they have been earned by
performance (collectively, the "Accounts");
(b) all goods and merchandise now owned or hereafter acquired by
each of the Grantors wherever located, whether in the possession of a Grantor or
of a bailee or other person for sale, storage, transit, processing, use or
otherwise consisting of whole goods, components, supplies, materials, or
consigned, returned or repossessed goods which are held for sale or lease or to
be furnished (or have been furnished) under any contract of service or which are
raw materials, work-in-process, finished goods or materials used or consumed in
such Grantor's business or processed by or on behalf of any Grantor
(collectively, the "Inventory");
(c) all machinery, all manufacturing, distribution, selling, data
processing and office equipment, all furniture, furnishings, appliances,
fixtures and trade fixtures, tools, tooling, molds, dies, vehicles, aircraft,
vessels, boilers, engines, masts, spars, rigging, boats, pumps, anchors, cables,
chains, tackle, apparel, fittings, equipment, other appurtenances and all other
goods of every type and description (other than Inventory), in each instance
whether now owned or hereafter acquired by each of the Grantors and wherever
located (collectively, the "Equipment");
(d) all works of art now owned or hereafter acquired by each of the
Grantors, including, without limitation, paintings, sketches, drawings, prints,
sculptures, crafts, tapestries, porcelain, carvings, artifacts, renderings and
designs;
(e) all rights, interests, choses in action, causes of action,
claims and all other intangible property of each of the Grantors of every kind
and nature (other than Accounts, Trademarks, Patents and Copyrights), in each
instance whether now owned or hereafter acquired by such Grantor, including,
without limitation, all general intangibles, but excluding avoidance actions
under the Bankruptcy Code (it being understood and agreed, however, that the
proceeds of any such avoidance actions shall be available to repay the
Obligations); all corporate and other business records; all loans, royalties,
and other obligations receivable; all inventions, designs, trade secrets,
computer programs, software, printouts and other computer materials, goodwill,
registrations, copyrights, licenses, franchises, customer lists, credit files,
correspondence, and advertising materials (to the extent the same are
assignable); all customer and supplier contracts, firm sale orders, rights under
license and franchise agreements (including all license agreements with any
other Person in connection with any of the Patents and Trademarks or such other
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Person's names or marks, whether such Grantor is a licensor or licensee under
any such license agreement but only to the extent such license agreements are
assignable), and other contracts and contract rights; all interests in
partnerships and joint ventures; all tax refunds and tax refund claims; all
right, title and interest under leases, subleases, licenses and concessions and
other agreements to the extent assignable relating to real or personal property;
all payments due or made to each of the Grantors in connection with any
requisition, confiscation, condemnation, seizure or forfeiture of any property
by any person or governmental authority; all deposit accounts (general or
special) with any bank or other financial institution; all credits with and
other claims against carriers and shippers; all rights to indemnification; all
reversionary interests in pension and profit sharing plans and reversionary,
beneficial and residual interest in trusts; all proceeds of insurance of which
each of the Grantors is beneficiary; and all letters of credit, guaranties,
liens, security interest and other security held by or granted to each of the
Grantors; and all other intangible property, whether or not similar to the
foregoing (collectively, the "General Intangibles");
(f) all chattel paper, all instruments, all notes and debt
instruments and all payments thereunder and instruments and other property from
time to time delivered in respect thereof or in exchange therefor, and all bills
of lading, warehouse receipts and other documents of title and documents, in
each instance whether now owned or hereafter acquired by each of the Grantors;
(g) all property or interests in property now or hereafter acquired
by each of the Grantors which may be owned or hereafter may come into the
possession, custody or control of the Agent or any agent or affiliate of the
Agent in any way or for any purpose (whether for safekeeping, deposit, custody,
pledge, transmission, collection or otherwise), and all rights and interests of
each of the Grantors, now existing or hereafter arising and however and wherever
arising, in respect of any and all (i) notes, drafts, letters of credits,
stocks, bonds, and debt and equity securities, whether or not certificated, and
warrants, options, puts and calls and other rights to acquire or otherwise
relating to the same; (ii) money (including all cash and cash equivalents held
in the Letter of Credit Account (as defined and referred to in the Credit
Agreement)); (iii) proceeds of loans, including, without limitation, Loans made
under the Credit Agreement; and (iv) insurance proceeds and books and records
relating to any of the property covered by this Agreement; together, in each
instance, with all accessions and additions thereto, substitutions therefor, and
replacements, proceeds and products thereof;
(h) all trademarks, trade names, trade styles, service marks, prints
and labels on which said trademarks, trade names, trade styles and service marks
have appeared or appear, designs and general intangibles of like nature, now
existing or hereafter adopted or acquired, and all registrations and recordings
thereof, including, without limitation, applications, registrations and
recordings in the United States Patent and Trademark Office or in any similar
office or agency of the United States, any State thereof, or any other country
or political subdivision thereof (except for "intent to use" applications for
trademark or service xxxx registrations filed pursuant to Section 1(b) of the
Xxxxxx Act, unless and until an Amendment to Allege Use or a Statement of Use
under Sections 1(c) and 1(d) of said Act has been filed), all whether now owned
or hereafter acquired by each of the Grantors, including, but not limited to,
those described in Schedule 3 annexed hereto and made a part hereof, and all
reissues, extensions or renewals thereof and all licenses thereof (together, in
each case, with the goodwill of the
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business connected with the use of, and symbolized by each such trademark,
service xxxx, trade name and trade dress, all of the foregoing being herein
referred to as the "Trademarks");
(i) all letters patent of the United States or any other country,
and all registrations and recordings thereof, including, without limitation,
applications, registrations and recordings in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
State thereof or any other country or any political subdivision thereof, all
whether now owned or hereafter acquired by each of the Grantors, including, but
not limited to, those described in Schedule 3 annexed hereto and made a part
hereof, and (ii) all reissues, continuations, continuations-in-part or
extensions thereof and all licenses thereof (all of the foregoing being herein
referred to as the "Patents");
(j) all copyrights of the United States, or any other country, and
all registrations and recordings thereof, including, without limitation,
applications, registrations and recordings in the United States Copyright Office
or in any similar office or agency of the United States, any State thereof, or
any other country or political subdivision thereof, all whether now owned or
hereafter acquired by each of the Grantors, including, but not limited to, those
described in Schedule 3 hereto and all renewals and extensions thereof and all
licenses thereof (all of the foregoing being herein referred to as the
"Copyrights");
(k) all books, records, ledger cards and other property at any time
evidencing or relating to the Accounts, Equipment, General Intangibles,
Trademarks, Patents or Copyrights;
(l) (i) all the shares of capital stock and membership interests
owned by each Grantor, as applicable, listed on Schedule 4 hereto of the issuers
listed thereon (individually, an "Issuer", and collectively, the "Issuers") and
all shares of capital stock and membership interests of any Issuer obtained in
the future by such Grantor and the certificates representing or evidencing all
such shares (the "Pledged Shares"); (ii) all other property which may be
delivered to and held by the Agent in respect of the Pledged Shares pursuant to
the terms hereof; (iii) subject to Section 9 below, all dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed, in respect of, in exchange for or upon the conversion of
the securities referred to in clauses (i) and (ii) above; and (iv) subject to
Section 9 below, all rights and privileges of each Grantor, as applicable, with
respect to the securities and other property referred to in clauses (i), (ii)
and (iii) (the items referred to in clauses (i) through (iv) being collectively
called the "Pledged Collateral");
(m) all other personal property of each of the Grantors, whether
tangible or intangible, and whether now owned or hereafter acquired; and
(n) all proceeds and products of any of the foregoing, in any form,
including, without limitation, any claims against third parties for loss or
damage to or destruction of any or all of the foregoing and to the extent not
otherwise included, all (i) payments under insurance (whether or not the Agent
is the loss payee thereof), or any indemnity, warranty or guaranty, payable by
reason of loss or damage to or otherwise with respect to any of the foregoing
Collateral and (ii) cash.
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Notwithstanding anything contained herein to the contrary, the total amount of
shares of capital stock or other ownership interests of any Person pledged
pursuant to Section 1(l) above that is not incorporated or organized in the
United States shall in no event exceed sixty-five percent (65%) of the total
outstanding shares of capital stock or such other ownership interests thereof.
SECTION 2. SECURITY FOR OBLIGATIONS. This Agreement and the Collateral
secure the payment of all obligations of each of the Grantors, now or hereafter
existing, under the Credit Agreement and the other Loan Documents (and any other
documents in respect of such obligations), and in respect of Indebtedness
permitted by Section 6.03(v) of the Credit Agreement, whether for principal,
interest, fees, expenses or otherwise, and all obligations of each of the
Grantors now or hereafter existing under or in respect of this Agreement (all
such obligations of the Grantor being herein called the "Obligations").
SECTION 3. DELIVERY OF PLEDGED COLLATERAL; OTHER ACTION. Upon written
request by the Agent (and without further order of the Bankruptcy Court), all
certificates or instruments representing or evidencing the Pledged Collateral
shall be delivered to and held by the Agent pursuant hereto and shall be
accompanied by duly executed instruments of transfer or assignment in blank, all
in form and substance satisfactory to the Agent. Upon the occurrence and during
the continuance of any Event of Default, the Agent shall have the right (for the
ratable benefit of the Lenders), at any time in its discretion and without
notice to the Grantors to transfer to or to register in the name of the Agent or
any of its nominees any or all of the Pledged Collateral.
SECTION 4. REPRESENTATIONS AND WARRANTIES. Each Grantor, jointly and
severally, represents and warrants as follows:
(a) All of the Inventory and/or Equipment is located at the places
specified in Schedule 1 hereto. The chief places of business and chief executive
offices of each of the Grantors and the offices where each Grantor keeps its
records concerning any Accounts and all originals of all chattel paper which
evidence any Account are located at the places specified in Schedule 2 hereto.
All registered trade names under which each of the Grantors have sold and will
sell Inventory are listed on Schedule 3 hereto.
(b) Each of the Grantors owns the Collateral free and clear of any
lien, security interest, charge or encumbrance except for the security interest
created by this Agreement and except as permitted under Section 6.01 of the
Credit Agreement. No effective financing statement or other instrument similar
in effect covering all or any part of the Collateral is on file in any recording
office, except (x) such as may have been filed in favor of the Agent relating to
this Agreement and (y) in favor of any holder of a Lien permitted under Section
6.01 of the Credit Agreement.
(c) As of the Filing Date, no Grantor owns any material Trademarks,
Patents or Copyrights or has any material Trademarks, Patents or Copyrights
registered in, or the subject of pending applications in, the United States
Patent and Trademark Office or any similar office or agency in any other country
or any political subdivision thereof, other than those described in Schedule 3
hereto. The registrations for the Collateral disclosed on such Schedule 3 hereto
are valid and subsisting and in full force and effect. None of the material
Patents or Copyrights have been abandoned or dedicated.
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(d) The Pledged Shares have been duly authorized and validly issued
and are fully paid and non-assessable.
(e) Each Grantor, as the case may be, is the legal and beneficial
owner of the Pledged Shares as described on Schedule 4, free and clear of any
lien, security interest, option or other charge or encumbrance, except for the
security interest created by this Agreement and the Final Order and Liens
permitted under Section 6.01.
(f) Except as disclosed on Schedule 4, the Pledged Shares described
in Section 1(l) hereof constitute all of the issued and outstanding shares of
stock of each of the Issuers and no Issuer is under any contractual obligation
to issue any additional shares of stock or any other securities, rights or
indebtedness.
(g) Except for the Interim Order and the Final Order, no
authorization, approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required either (i) for the grant
and pledge by each of the Grantors of the security interests granted hereby or
for the execution, delivery or performance of this Agreement by each of the
Grantors or (ii) for the perfection of the security interests (except for such
recordation of preferred ship mortgages with the United States Coast Guard as
may be required by the Ship Mortgage Act) or the exercise by the Agent of its
rights and remedies hereunder.
SECTION 5. FURTHER ASSURANCES.
(a) Each of the Grantors agrees that from time to time, at the
expense of the Grantors, it will promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary,
or that the Agent may reasonably request, in order to perfect and protect any
security interest granted or purported to be granted hereby or to enable the
Agent to exercise and enforce any of its rights and remedies hereunder with
respect to any Collateral. Without limiting the generality of the foregoing, and
without further order of the Bankruptcy Court, each of the Grantors will execute
and file such financing or continuation statements, or amendments thereto, and
such other instruments or notices, as may be necessary, or as the Agent may
reasonably request, in order to perfect and preserve the security interests
granted or purported to be granted hereby.
(b) Each Grantor hereby authorizes the Agent to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral without the signature of such Grantor where permitted
by law.
(c) Each Grantor will furnish to the Agent from time to time
statements and schedules further identifying and describing the Collateral and
such other reports in connection with the Collateral as the Agent may reasonably
request, all in reasonable detail.
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SECTION 6. AS TO EQUIPMENT AND INVENTORY. Each Grantor shall:
(a) Keep the Equipment and Inventory (other than Inventory sold in
the ordinary course of business) at the places specified therefor in Schedule 1
hereto or, upon 30 days' prior written notice to the Agent following any
transfer thereof to a different jurisdiction, at other places in jurisdictions
where all action required by Section 5 shall have been taken to assure the
continuation of the perfection of the security interest of the Agent (for its
benefit and the ratable benefit of the Lenders) with respect to the Equipment
and Inventory.
(b) Subject to provisions of the Credit Agreement, maintain or cause
to be maintained in good repair, working order and condition, excepting ordinary
wear and tear and damage due to casualty, all of the Equipment, and make or
cause to be made all appropriate repairs, renewals and replacements thereof, to
the extent not obsolete and consistent with past practice of such Grantor, as
quickly as practicable after the occurrence of any loss or damage thereto which
are necessary or reasonably desirable to such end, except where the failure to
do any of the foregoing would not result in a material adverse effect on the
assets, properties, condition (financial or otherwise), operations or prospects
of the Grantors, taken as a whole.
(c) Until satisfaction in full of the Obligations, at any time when
an Event of Default has occurred and is continuing: (i) each Grantor will
perform any and all reasonable actions requested by the Agent to enforce the
Agent's security interest in the Inventory and all of the Agent's rights
hereunder, such as subleasing warehouses to the Agent or its designee, placing
and maintaining signs, appointing custodians, transferring Inventory to
warehouses, and delivering to the Agent warehouse receipts and documents of
title in the Agent's name; (ii) if any Inventory is in the possession or control
of any of the Grantors' agents, contractors or processors or any other third
party, each such Grantor will notify the Agent thereof and will notify such
agents, contractors or processors or third party of the Agent's security
interest therein and, upon request, instruct them to hold all such Inventory for
the Agent and such Grantor's account, as their interests may appear, and subject
to the Agent's instructions; (iii) the Agent shall have the right to hold all
Inventory subject to the security interest granted hereunder; and (iv) the Agent
shall have the right to take possession of the Inventory or any part thereof and
to maintain such possession on such Grantor's premises or to remove any or all
of the Inventory to such other place or places as the Agent desires in its sole
discretion. If the Agent exercises its right to take possession of the
Inventory, such Grantor, upon the Agent's demand, will assemble the Inventory
and make it available to the Agent at such Grantor's premises at which it is
located.
SECTION 7. AS TO ACCOUNTS.
(a) Each Grantor shall keep its chief place of business and chief
executive office and the offices where it keeps its records concerning the
Accounts, and the offices where it keeps all originals of all chattel paper
which evidence Accounts, at the location or locations therefor specified in
Section 4(a) or, upon 15 days' prior written notice to the Agent, at such other
locations in a jurisdiction where all actions required by Section 5 shall have
been taken with respect to the Accounts. Each Grantor will hold and preserve
such records and chattel paper and will permit representatives of the Agent, at
any time during normal business hours and upon reasonable prior written notice,
to inspect and make abstracts from such records and chattel paper in accordance
with Section 5.06 of the Credit Agreement.
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(b) Except as otherwise provided in this subsection (b), each
Grantor shall continue to collect in accordance with its customary practice, at
its own expense, all amounts due or to become due to such Grantor under the
Accounts and, prior to the occurrence and continuance of an Event of Default,
such Grantor shall have the right to adjust, settle or compromise the amount or
payment of any Account, or release wholly or partly any account debtor or
obligor thereof, or allow any credit or discount thereon, all in accordance with
its customary practices. In connection with such collections, the Grantors may,
upon the occurrence and during the continuation of an Event of Default, take
(and at the direction of the Agent shall take) such action as the Grantors or
the Agent may reasonably deem necessary or advisable to enforce collection of
the Accounts; provided, that upon written notice by the Agent to any Grantor,
following the occurrence and during the continuation of an Event of Default, of
its intention so to do, the Agent shall have the right to notify the account
debtors or obligors under any Accounts of the assignment of such Accounts to the
Agent and to direct such account debtors or obligors to make payment of all
amounts due or to become due to such Grantor thereunder directly to the Agent
and, upon such notification and at the expense of such Grantor, to enforce
collection of any such Accounts, and to adjust, settle or compromise the amount
or payment thereof, in the same manner and to the same extent as such Grantor
might have done. After receipt by such Grantor of the notice referred to in the
proviso to the preceding sentence, and unless and until such notice is rescinded
by the Agent by written notice to such Grantor (i) all amounts and proceeds
(including instruments) received by such Grantor in respect of the Accounts
shall be received in trust for the benefit of the Agent (for the ratable benefit
of the Lenders) hereunder, shall be segregated from other funds of the Grantors
and shall be forthwith paid over to the Agent in the same form as so received
(with any necessary endorsement) to be held as cash collateral and either (A)
released to the Grantors if such Event of Default shall have been cured or
waived or (B) if such Event of Default shall be continuing, applied as provided
by Section 15, and (ii) the Grantors shall not adjust, settle or compromise the
amount or payment of any Account, or release wholly or partly any account debtor
or obligor thereof, or allow any credit or discount thereon.
SECTION 8. AS TO TRADEMARKS, PATENTS AND COPYRIGHTS.
(a) Each Grantor shall, either itself or through licensees, continue
to use the Trademarks as each is currently used in the Grantor's business in
order to maintain the Trademarks in full force free from any claim of
abandonment for nonuse and each such Grantor will not (and will not permit any
licensee thereof to) do any act or knowingly omit to do any act whereby any
Trademark may become invalidated, unless such failure to use a Trademark is not
reasonably likely to have a material adverse effect on the assets, properties,
condition (financial or otherwise), operations or prospects of the Grantors
taken as a whole.
(b) No Grantor will do any act, or omit to do any act, whereby the
Patents or Copyrights may become abandoned or dedicated and each such Grantor
shall notify the Agent immediately if it knows of any reason or has reason to
know that any application or registration may become abandoned or dedicated,
unless such abandonment or dedication is not reasonably likely to have a
material adverse effect on the condition (financial or otherwise), operations or
properties of the Grantors taken as a whole.
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(c) No Grantor will, either itself or through any agent, employee,
licensee or designee (i) file an application for the registration of any Patent
or Trademark with the United States Patent and Trademark Office or any similar
office or agency in any other country or any political subdivision thereof or
(ii) file any assignment of any patent or trademark, which such Grantor may
acquire from a third party, with the United States Patent and Trademark Office
or any similar office or agency in any other country or any political
subdivision thereof, unless such Grantor shall, within 30 days after the date of
such filing, notify the Agent thereof, and, upon request of the Agent, execute
and deliver any and all assignments, agreements, instruments, documents and
papers as the Agent may request to evidence the Agent's interest in such Patent
or Trademark and the goodwill and general intangibles of such Grantor relating
thereto or represented thereby, and such Grantor hereby constitutes the Agent
its attorney-in-fact to execute and file all such writings for the foregoing
purposes, all lawful acts of such attorney being hereby ratified and confirmed;
such power being coupled with an interest is irrevocable until the Obligations
are paid in full.
(d) Each Grantor will take all necessary steps in any proceeding
before the United States Patent and Trademark Office, the United States
Copyright Office or any similar office or agency in any other country or any
political subdivision thereof, to maintain in all material respects each
application and registration of all material Trademarks, Patents and Copyrights,
including, without limitation, filing of renewals, affidavits of use, affidavits
of incontestability and opposition, interference and cancellation proceedings.
(e) Each Grantor will, without further order of the Bankruptcy
Court, perform all acts and execute and deliver all further instruments and
documents, including, without limitation, assignments for security in form
suitable for filing with the United States Patent and Trademark Office, and the
United States Copyright Office, respectively, reasonably requested by the Agent
at any time to evidence, perfect, maintain, record and enforce the Agent's
interest in all material Trademarks, Patents and Copyrights or otherwise in
furtherance of the provisions of this Agreement, and each Grantor hereby
authorizes the Agent to execute and file one or more accurate financing
statements (and similar documents) or copies thereof or of this Security
Agreement with respect to material Patents, Trademarks and Copyrights signed
only by the Agent.
(f) Each Grantor will, upon acquiring knowledge of any use by any
person of any term or design likely to cause confusion with any material
Trademark, promptly notify the Agent of such use, and if requested by the Agent,
shall join with the Agent, at such Grantor's expense, in such action as the
Agent, in its reasonable discretion, may deem advisable for the protection of
the Agent's interest in and to the Trademarks.
SECTION 9. AS TO THE PLEDGED COLLATERAL; VOTING RIGHTS; DIVIDENDS; ETC.
(a) So long as no Event of Default shall have occurred and be
continuing:
(i) the Grantors (as applicable) shall be entitled to exercise
any and all voting and other consensual rights pertaining to the
Pledged Collateral or any part thereof for any purpose not
inconsistent with the terms of this Agreement;
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(ii) notwithstanding the provisions of Section 1 hereof, such
Grantors shall be entitled to receive and retain any and all
dividends and other distributions paid in respect of the Pledged
Collateral; provided, that any and all
(A) dividends paid or payable other than in cash in respect
of, and instruments and other property received,
receivable or otherwise distributed in respect of, or in
exchange for, any Pledged Collateral, and
(B) dividends and other distributions paid or payable in
cash in respect of any Pledged Collateral in connection
with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus
or paid-in-surplus,
(C) cash paid, payable or otherwise distributed in respect
of, or in redemption of, or in exchange for, any Pledged
Shares;
shall be, and shall be forthwith delivered to the Agent to hold as, Pledged
Collateral and shall, if received by any of the Grantors, be received in trust
for the benefit of the Agent, be segregated from the other property or funds of
such Grantor, and be forthwith delivered to the Agent as Pledged Collateral in
the same form as so received (with any necessary endorsement); and
(iii) the Agent shall execute and deliver (or cause to be
executed and delivered) to the Grantors (as applicable) all such
proxies and other instruments as the Grantors (as applicable) may
reasonably request for the purpose of enabling such Grantor to
exercise the voting and other rights which it is entitled to
exercise pursuant to paragraph (i) above and to receive the
dividends which it is authorized to receive and retain pursuant to
paragraph (ii) above;
(b) Upon the occurrence and during the continuance of an Event of
Default:
(i) upon written notice from the Agent to the Grantors (as
applicable) to such effect, all rights of such Grantors (as
applicable) to exercise the voting and other consensual rights which
it would otherwise be entitled to exercise pursuant to Section
9(a)(i) and to receive the dividends which it would otherwise be
authorized to receive and retain pursuant to Section 9(a)(ii) shall
cease, and all such rights shall thereupon become vested in the
Agent, who shall thereupon have the sole right to exercise such
voting and other consensual rights and to receive and hold as
Pledged Collateral any such dividends; and
(ii) all dividends which are received by such Grantors
contrary to the provisions of paragraph (i) of this Section 9(b)
shall be received in trust for the benefit of the Agent, shall be
segregated from other funds of the Grantors and shall be forthwith
paid over to the Agent as Pledged Collateral in the same form as so
received (with any necessary endorsement).
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SECTION 10. INSURANCE. Upon the occurrence and during the continuance of
any Event of Default, all insurance payments in respect of Inventory and
Equipment shall be held, applied and paid to the Agent as specified in Section
15 hereof.
SECTION 11. TRANSFERS TO OTHERS; LIENS; ADDITIONAL SHARES. Each Grantor
shall not:
(a) Sell, assign (by operation of law or otherwise) or otherwise
dispose of any of the Collateral, except for dispositions otherwise permitted by
the Credit Agreement.
(b) Create or suffer to exist any lien, security interest or other
charge or encumbrance upon or with respect to any of the Collateral to secure
any obligation of any person or entity, except for the security interest created
by this Agreement, the Credit Agreement and the Final Order, or except as
otherwise permitted by the Credit Agreement.
(c) Each of the Grantors (as applicable) agrees that it will (i)
cause each of the Issuers that are wholly-owned Subsidiaries not to issue any
stock or other securities in addition to or substitution for the Pledged Shares
issued by such Issuer, except to the respective Grantor and (ii) pledge
hereunder, immediately upon its acquisition (directly or indirectly) thereof,
any and all such additional shares of stock or other securities of each Issuer
of the Pledged Shares.
SECTION 12. AGENT APPOINTED ATTORNEY-IN-FACT. Each Grantor hereby
irrevocably appoints the Agent such Grantor's attorney-in-fact (which
appointment shall be irrevocable and deemed coupled with an interest), with full
authority in the place and stead of such Grantor and in the name of such Grantor
or otherwise, from time to time in the Agent's discretion, upon and during the
occurrence and continuation of an Event of Default, to take any action and to
execute any instrument which the Agent may deem necessary or advisable to
accomplish the purposes of this Agreement, including, without limitation:
(i) to obtain and adjust insurance required to be paid to the
Agent pursuant to Section 10,
(ii) to ask, demand, collect, xxx for, recover, compound,
receive and give acquittance and receipts for moneys due and to
become due under or in respect of any of the Collateral,
(iii) to receive, endorse, and collect any drafts or other
instruments, documents and chattel paper, in connection with clause
(i) or (ii) above,
(iv) to receive, endorse and collect all instruments made
payable to the Grantors representing any dividend or other
distribution in respect of the Pledged Collateral or any part
thereof and to give full discharge for the same, and
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(v) to file any claims or take any action or institute any
proceedings which the Agent may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the
rights of the Agent with respect to any of the Collateral.
SECTION 13. AGENT MAY PERFORM. If any Grantor fails to perform any
agreement contained herein, the Agent may itself perform, or cause performance
of, such agreement, and the reasonable expenses of the Agent incurred in
connection therewith (as to which invoices have been furnished) shall be payable
by the Grantors under Section 16(b).
SECTION 14. THE AGENT'S DUTIES. The powers conferred on the Agent
hereunder are solely to protect its interest and the interests of the Lenders in
the Collateral and shall not impose any duty upon it to exercise any such
powers. Except for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Agent shall have no
duty as to any Collateral or as to the taking of any necessary steps to preserve
rights against prior parties or any other rights pertaining to any Collateral,
including, without limitation, ascertaining or taking action with respect to
calls, conversions, exchanges, maturities, tenders or other matters relative to
any Pledged Collateral, whether or not the Agent has or is deemed to have
knowledge of such matters.
SECTION 15. REMEDIES. If any Event of Default shall have occurred and be
continuing, and subject to the provisions of Section 7 of the Credit Agreement:
(a) The Agent may exercise in respect of the Collateral, in addition
to other rights and remedies provided for herein or otherwise available to it,
and without application to or order of the Bankruptcy Court, all the rights and
remedies of a secured party on default under the Uniform Commercial Code and
also may (i) require each Grantor to, and each Grantor hereby agrees that it
will at its expense and upon request of the Agent forthwith, assemble all or
part of the Collateral as directed by the Agent and make it available to the
Agent at a place to be designated by the Agent which is reasonably convenient to
both parties and (ii) without notice except as specified in the following
sentence, sell the Collateral or any part thereof in one or more parcels at
public or private sale, at any of the Agent's offices or elsewhere, for cash, on
credit or for future delivery, and at such price or prices and upon such other
terms as the Agent may deem commercially reasonable. Each Grantor agrees that,
to the extent notice of such sale shall be required by law, at least ten days'
notice to the Grantors of the time and place of any public sale or the time
after which any private sale is to be made shall constitute reasonable
notification. The Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. The Agent 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.
(b) The Agent may instruct the Grantors not to make any further use
of the Patents, Copyrights or Trademarks or any xxxx similar thereto for any
purpose to the extent that such use would be inconsistent with the exercise by
the Agent of any other remedies under this Section.
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(c) The Agent may license, whether general, special or otherwise,
and whether on an exclusive or nonexclusive basis, any of the Trademarks,
Patents or Copyrights throughout the world for such term or terms, on such
conditions, and in such manner, as the Agent shall in its sole discretion
determine.
(d) The Agent may (without assuming any obligations or liability
thereunder), at any time, enforce (and shall have the exclusive right to
enforce) against any licensee or sublicensee all rights and remedies of the
Grantors in, to and under any one or more license agreements with respect to the
Collateral, and take or refrain from taking any action under any thereof, and
each of the Grantors hereby releases the Agent from, and agrees to hold the
Agent free and harmless from and against any claims arising out of, any action
taken or omitted to be taken with respect to any such license agreement except
claims involving gross negligence, willful misconduct or bad faith of the Agent.
(e) In the event of any such license, assignment, sale or other
disposition of the Collateral, or any of it, each Grantor shall supply its
know-how and expertise relating to the Trademarks, Patents or Copyrights, and
its customer lists and other records relating to the Trademarks, Patents or
Copyrights to the Agent or its designee.
(f) In order to implement the assignment, sale or other disposal of
any of the Trademarks, Patents or Copyrights, the Agent may, at any time,
pursuant to the authority granted in Section 12 hereof, execute and deliver on
behalf of the Grantors, one or more instruments of assignment of the Trademarks,
Patents or Copyrights (or any application of registration thereof), in form
suitable for filing, recording or registration in any country.
(g) All cash proceeds received by the Agent in respect of any sale
of, collection from, or other realization upon all or any part of the Collateral
may, in the discretion of the Agent, be held by the Agent as collateral for, and
then or at any time thereafter or shall, upon instruction from the Required
Lenders, be applied (after payment of any amounts payable to the Agent pursuant
to Section 16 hereof) in whole or in part against, all or any part of the
Obligations in such order as provided for in the Credit Agreement. Any surplus
of such cash or cash proceeds held by the Agent and remaining after payment in
full of all the Obligations shall be paid over to the Grantors or to whomsoever
may be lawfully entitled to receive such surplus.
(h) If at any time when the Agent shall determine to exercise its
right to sell all or any part of the Pledged Collateral pursuant to this Section
15, such Pledged Collateral or the part thereof to be sold shall not be
effectively registered under the Securities Act of 1933, as amended, and as from
time to time in effect, and the rules and regulations thereunder (the
"Securities Act"), the Agent is hereby expressly authorized to sell such Pledged
Collateral or such part thereof by private sale in such manner and under such
circumstances as the Agent may deem necessary or advisable in order that such
sale may legally be effected without such registration. Without limiting the
generality of the foregoing, in any such event the Agent, in compliance with
applicable securities laws, (a) may proceed to make such private sale
notwithstanding that a registration statement for the purpose of registering
such Pledged Collateral or such part thereof shall have been filed under such
Securities Act, (b) may approach and negotiate with a restricted number of
potential purchasers to effect such sale and (c) may restrict such sale to
purchasers as to their number, nature of business and investment intention
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including without limitation to purchasers each of whom will represent and agree
to the satisfaction of the Agent that such purchaser is purchasing for its own
account, for investment, and not with a view to the distribution or sale of such
Pledged Collateral, or part thereof, it being understood that the Agent may
cause or require each Grantor, and each Grantor hereby agrees upon the written
request of the Agent, to cause (i) a legend or legends to be placed on the
certificates to be delivered to such purchasers to the effect that the Pledged
Collateral represented thereby have not been registered under the Securities Act
and setting forth or referring to restrictions on the transferability of such
securities; and (ii) the issuance of stop transfer instructions to such Issuer's
transfer agent, if any, with respect to the Pledged Collateral, or, if such
Issuer transfers its own securities, a notation in the appropriate records of
such Issuer. In the event of any such sale, each Grantor does hereby consent and
agree that the Agent shall incur no responsibility or liability for selling all
or any part of the Pledged Collateral at a price which the Agent may deem
reasonable under the circumstances, notwithstanding the possibility that a
substantially higher price might be realized if the sale were public and
deferred until after registration as aforesaid.
SECTION 16. INDEMNITY AND EXPENSES.
(a) Each Grantor, jointly and severally, agrees to indemnify the
Agent from and against any and all claims, losses and liabilities growing out of
or resulting from this Agreement (including, without limitation, enforcement of
this Agreement), except claims, losses or liabilities directly arising from the
Agent's own gross negligence, willful misconduct or bad faith.
(b) The Grantors will upon demand pay to the Agent the amount of any
and all reasonable expenses (as to which invoices have been furnished),
including the reasonable fees and disbursements of its counsel and of any
experts and agents, which the Agent may incur in connection with (i) the
administration of this Agreement, (ii) the custody, preservation, use or
operation of, or the sale of, collection from, or other realization upon, any of
the Collateral, (iii) the exercise or enforcement of any of the rights of the
Agent hereunder or (iv) the failure by any of the Grantors to perform or observe
any of the provisions hereof.
(c) The Grantors assume all responsibility and liability arising
from the use of the Trademarks, Patents and Copyrights.
(d) Each of the Grantors agrees that the Agent does not assume, and
shall have no responsibility for, the payment of any sums due or to become due
under any agreement or contract included in the Collateral or the performance of
any obligations to be performed under or with respect to any such agreement or
contract by any of the Grantors, and except as the same may have resulted from
the gross negligence, willful misconduct or bad faith of the Agent, each of the
Grantors hereby jointly and severally agree to indemnify and hold the Agent
harmless with respect to any and all claims by any person relating thereto.
SECTION 17. SECURITY INTEREST ABSOLUTE. All rights of the Agent and
security interests hereunder, and all obligations of each of the Grantors
hereunder, shall be absolute and unconditional, irrespective of any circumstance
which might constitute a defense available to, or a discharge of, any guarantor
or other obligor in respect of the Obligations.
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SECTION 18. AMENDMENTS; ETC. No amendment or waiver of any provision of
this Agreement, nor any consent to any departure by any of the Grantors
herefrom, shall in any event be effective unless the same shall be in writing
and signed by the party against whom enforcement is sought, and then such waiver
or consent shall be effective only in the specific instance and for the specific
purpose for which given.
SECTION 19. ADDRESSES FOR NOTICES. All notices and other communications
provided for hereunder shall be in writing and shall be given in accordance with
the applicable provisions of the Credit Agreement.
SECTION 20. CONTINUING SECURITY INTEREST. This Agreement shall create a
continuing security interest in the Collateral and shall (i) remain in full
force and effect until payment in full of the Obligations, (ii) be binding upon
each of the Grantors, their successors and assigns and (iii) inure, together
with the rights and remedies of the Agent hereunder, to the benefit of the Agent
and each of the Lenders and their respective successors, transferees and
assigns. Upon the payment in full of the Obligations, the security interest
granted hereby shall terminate and all rights to the Collateral shall revert to
the Grantors subject to any existing liens, security interests or encumbrances
on such Collateral. Upon any such termination, the Agent will, at the Grantor's
expense, execute and deliver to the Grantors such documents as the Grantors
shall reasonably request to evidence such termination.
SECTION 21. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, except as
required by mandatory provisions of law and except to the extent that the
validity or perfection of the security interest hereunder, or remedies
hereunder, in respect of any particular Collateral are governed by the laws of a
jurisdiction other than the State of New York and by Federal law (including,
without limitation, the Bankruptcy Code) to the extent the same has pre-empted
the law of the State of New York or such other jurisdiction.
SECTION 22. HEADINGS. Section headings in this Agreement are included
herein for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.
[SIGNATURE PAGES FOLLOW]
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IN WITNESS WHEREOF, each of the Grantors and the agent have caused
this Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first above written.
GRANTORS:
AMERICAN COMMERCIAL LINES LLC
AMERICAN COMMERCIAL LINES HOLDINGS LLC
LOUISIANA DOCK COMPANY LLC
AMERICAN COMMERCIAL TERMINALS LLC
JEFFBOAT LLC
ACL CAPITAL CORP.
AMERICAN COMMERCIAL BARGE LINE LLC
AMERICAN COMMERCIAL LINES INTERNATIONAL LLC
ACBL LIQUID SALES LLC
AMERICAN COMMERCIAL LOGISTICS LLC
HOUSTON FLEET LLC
LEMONT HARBOR & FLEETING SERVICES LLC
AMERICAN COMMERCIAL TERMINALS-MEMPHIS LLC
ORINOCO TASA LLC
ORINOCO TASV LLC
By: _______________________________________
Title:
JPMORGAN CHASE BANK,
INDIVIDUALLY AND AS AGENT
By: _______________________________________
Title:
Signature Page to Security and Pledge Agreement
SCHEDULE 1
Locations of Equipment and Inventory
SCHEDULE 2
Locations of Chief Executive
Office, Chief Place of Business
and Locations Where Records
Concerning Accounts are Kept
SCHEDULE 3
Trademarks, Patents, Copyrights
SCHEDULE 4
PLEDGED STOCK
GRANTOR ISSUER CLASS NO. OF SHARES
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