Multi-Party Blocked Account AgreementAccount Control Agreement |
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Search Account Control Agreement by:
Exhibit 10.44
Multi-Party Blocked Account Agreement
This Multi-Party Blocked Account Agreement (this “Agreement”), dated as of July 19, 2005, is made by and among Diamond Jo Worth, LLC (“Customer”), U.S. Bank National Association, as Trustee as Secured Party (the “Secured Party”) and U.S. Bank National Association, as securities intermediary (the “Securities Intermediary”).
The Customer maintains a securities account at the Securities Intermediary with the following number: Account No. 790235002 (the “Account”) in which Account financial assets (as defined in Section 8-102(a)(9) of the Uniform Commercial Code as in effect in the State of New York (the “UCC”) may be credited and which for purposes hereof shall include, without limitation, all cash, checks, securities and other assets credited to the Account).
The Customer has granted to the Secured Party, pursuant to the Pledge and Security Agreement, dated as of July 19, 2005, among, inter alia, the Customer and the Secured Party, security interests (the “Security Interests”) in the Account and the financial assets credited thereto. Customer, the Secured Party and the Securities Intermediary are entering into this Agreement to perfect the Security Interests in the Account and the financial assets credited thereto. The Securities Intermediary will follow the terms of this Agreement unless it is otherwise ordered by a court order or there is a bankruptcy filing in which the trustee in bankruptcy orders the Securities Intermediary to do anything contrary to this Agreement. Subject to the terms of this Agreement, the Securities Intermediary recognizes the Security Interests in the Account and the financial assets credited thereto.
1. Account. As used in this Agreement, “Notice Party” means the Secured Party. Until such time as the Securities Intermediary shall have received any “entitlement order” (within the meaning of Section 8-102(a)(8) of the UCC) relating to the Account or any financial asset credited thereto from the Notice Party in a Timely Manner, the Securities Intermediary shall comply with entitlement orders of the Customer in respect of the Account and any or all financial assets credited thereto. As used in this Agreement, “Timely Manner” means receipt of the relevant entitlement order at a time and in a manner affording the Securities Intermediary a reasonable opportunity to act thereon. After the Securities Intermediary has received an entitlement order originated by the Notice Party directing the disposition of funds in the Account, and until such time as the Securities Intermediary has received a contrary notice from the Notice Party:
(a)
The Securities Intermediary shall comply
with entitlement orders without further consent by Customer or any other
person. The Notice Party shall have the exclusive right to provide
entitlement orders to the Securities Intermediary as to the disposition of all
financial assets then or thereafter credited to the Account, and the Securities
Intermediary shall not comply with any entitlement order from the Customer or
any other person in connection with the Account unless consented to in writing
by the Notice Party and received by the Securities Intermediary in a Timely
Manner;
(b)
The Securities Intermediary, subject to
its applicable availability policy in effect from time to time, will transfer
on each business day all immediately available funds credited to the Account by
wire transfer, or other method of transfer mutually agreeable to the Securities
Intermediary and the Notice Party, as the Notice Party may from time to time
direct the Securities Intermediary in accordance with the Securities
Intermediary’s usual and customary procedures for funds transfers; and
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U.S. Bank |
Multi-Party Blocked Account Agreement |
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(c)
The Customer agrees it shall not make any
attempt to access the Account or financial assets credited thereto or issue any
entitlement order in respect thereof.
2.
Reliance Upon Instructions. The Customer and the Notice Party, as the case
may be, are responsible (severally and not jointly to the extent applicable to
it) for, and the Securities Intermediary may rely upon, the contents of any
entitlement order or other notice or instructions that the Securities Intermediary
reasonably believes in good faith to be from the Customer or Notice Party, as
the case may be, without any independent investigation. To the extent
commercially reasonable and consistent with the Securities Intermediary’s
current practice, the Securities Intermediary shall have no duty to inquire
into the authority of the person in giving such entitlement order, notice or
instruction.
3.
Information. The Securities Intermediary will from time to
time provide to Customer information regarding the Account. For an
additional fee, the Securities Intermediary will provide certain duplicate
information as may be reasonably requested by the Secured Party.
4.
Financing Documents. The Securities Intermediary shall not be deemed
to have any knowledge (imputed or otherwise) of: (a) any of the terms or
conditions of any security agreement or any document referred to therein or
relating to any financing arrangement between the Customer and the Secured
Party, or any breach thereof, or (b) any occurrence or existence of a
default. The Securities Intermediary has no obligation to inform any
person of such breach or to take any action in connection with any of the
foregoing, except such actions regarding the Account or the financial assets
credited thereto as are specified in this Agreement. The Securities
Intermediary is not responsible for the enforceability or validity of the
Security Interests in the Account and the financial assets credited thereto.
5.
Set-Off. The Customer and the Secured Party authorize
the Securities Intermediary to debit the Account, from time to time, for:
(a) financial assets credited to the Account, including, without
limitation, any automated clearinghouse transactions which are returned for any
reason; and (b) any amount then due from the Customer or the Secured Party
to the Securities Intermediary under this Agreement or related to the Account,
the financial assets credited thereto and the services provided hereunder and
the Account, provided the Securities Intermediary advises the Customer and the
Secured Party of the amount thereof in accordance with the Securities
Intermediary’s then current practice. Subject to the terms of this
Agreement, the Securities Intermediary agrees that each of the Security
Interests is superior to any right of set-off, security interest or other lien
which the Securities Intermediary might otherwise have in the Account or the
financial assets credited thereto.
6.
Rules. Use of the services provided pursuant to this
Agreement is subject to all applicable laws, regulations, rules and funds
transfer systems and clearing arrangements, whether or not the Securities
Intermediary is a party to them (“Rules”). Funds will be made
available pursuant to the Rules and the Securities Intermediary’s
applicable availability policies.
7.
Recording Conversations. Customer, the Secured Party or the Securities
Intermediary may record, store and use all telephone conversations and data
transmissions.
8.
Charges and Fees. The Customer will pay the Securities
Intermediary’s charges and fees applicable to this service as specified
in writing or as otherwise agreed by the Customer and the Securities
Intermediary and such charges and fees may be charged directly against the
Account.
9.
Liability. The Securities Intermediary will be liable
only for direct damages if it fails to exercise ordinary care. The
Securities Intermediary shall be deemed to have exercised ordinary care if its
action or failure to act is in conformity with general banking usages or is
otherwise a commercially
reasonable practice of the banking industry. The Securities Intermediary shall not be liable for any special, indirect or consequential damages, even if it has been advised of the possibility of such damages.
10.
Indemnification. The Customer agrees to indemnify the
Securities Intermediary for, and hold the Securities Intermediary harmless
from, all claims, demands, losses, liabilities and expenses, including
reasonable legal fees and expenses, resulting from or with respect to this
Agreement, the Account, the financial assets credited thereto and the services
provided hereunder, including, without limitation: (a) any action taken,
or not taken, by the Securities Intermediary in regard thereto in accordance
with the terms of this Agreement; (b) financial assets credited to the
Account, including, without limitation, any automated clearinghouse
transactions, which are returned for any reason, and any adjustments; and
(c) any failure of the Customer to pay any invoice or charge of the
Securities Intermediary for services in respect to this Agreement, the Account,
the financial assets credited thereto or any amount owing to the Securities Intermediary
from the Customer with respect thereto or to the service provided hereunder,
except to the extent such claims, demands, losses, liabilities and expenses are
caused by the gross negligence or wilful misconduct of the Securities
Intermediary. To the extent of such indemnity, the Customer and the
Secured Party agree that the Securities Intermediary shall have set-off rights
against the Account. The Notice Party agrees to reimburse the Securities
Intermediary for any amounts described in subsections (b) and (c) of
this Section in the event and to the extent that there are insufficient
funds in the Account to cover any amounts described in subsections (b) and
(c) of this Section after receiving notice from the Notice Party
pursuant to Section 1, solely to the extent of the amounts received by the
Notice Party from the Account within ten (10) days prior to such notice by
Securities Intermediary giving notice. Any amount due under this
indemnity that remains unpaid for thirty (30) days after notice hereof shall
bear interest at the federal funds rate from the date of the notice to the date
of payment. This indemnity shall survive the termination of this
Agreement.
11.
Failure to Perform. None of the Customer, Secured Party or the
Securities Intermediary will be liable for any failure to perform its
obligations when the failure arises out of causes beyond its control,
including, without limitation, an act of a governmental regulatory/authority,
an act of God, accident, equipment failure, labor disputes or system failure,
provided it has exercised such diligence as the circumstances require. As
between Customer and Secured Party, if any conflict exists between this
Section 11 and any of the security agreements referred to in the recitals
hereto, the provisions of such security agreement shall govern.
12. Governing Law






