EXHIBIT 10.6
SECURITY AGREEMENT
This is a Security Agreement between OMEGA PROTEIN, INC., ("Debtor") and
the UNITED STATES OF AMERICA ("Secured Party").
RECITALS
Debtor and certain other entities have entered into a Title XI Financial
Agreement with Secured Party dated this date (the "Financial Agreement"). Words
which are capitalized herein and in the attached Exhibit A which are defined in
the Financial Agreement shall have the same meanings as given in the Financial
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained in the
Financial Agreement, the parties do hereby agree as follows:
1. Grant of a Security Interest. In order to secure the payment of the
Promissory Note, Debtor does hereby grant Secured Party a security interest in
the collateral described on Exhibit A hereto ("Collateral").
2. Indebtedness Secured. This Security Agreement shall secure the payment of
all amounts owing under the Promissory Note and all other amounts owed by the
Debtor to the Secured Party.
3. Events of Default. All of the events of default enumerated in the Financial
Agreement shall constitute events of default under this Security Agreement, and
the effect of the occurrence of any event of default shall have the same effect
specified in the Financial Agreement. Secured Party shall have all the rights
and remedies available to Secured Party under the Virginia Business and Commerce
Code and such other rights and remedies as are available under applicable law,
subject to the provisions of the Financial Agreement. Immediately upon the
occurrence of an event of default, but before any judicial action regarding such
default, Secured Party may enter upon any premises where the Collateral may be
located and marshal, secure, protect, and do all things necessary to preserve
the Collateral.
4. Financial Agreement Governs. In the event of a conflict between the
Financial Agreement and this Security Agreement, the Financial Agreement shall
control. Specifically, and without limiting the foregoing, the terms of the
security interest granted hereunder are subject to the provisions of Article II,
Section 4 of the Financial Agreement.
DATED: May , 1998
Omega Protein, Inc.
By:
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Controller and Assistant Treasurer
United States of America
By:
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Name:
Title: Chief, Financial Services Branch
Southeast Region
NOAA, National Marine Fisheries Services