EXHIBIT 10.2
STOCK PLEDGE, HYPOTHECATION AND
SECURITY AGREEMENT
This STOCK PLEDGE, HYPOTHECATION AND
SECURITY AGREEMENT, dated as of November 8, 2006 (together with all
amendments, if any, from time to time hereto, this
“Agreement”) between AYIN HOLDING COMPANY, INC.
, a Delaware corporation (the “Pledgor”) and NEW
STREAM COMMERCIAL FINANCE, LLC , a Delaware limited liability
company (“Pledgee”).
W I T N E S S E T
H:
WHEREAS, AYIN TOWER MANAGEMENT
SERVICES, INC., a Delaware corporation (“Borrower”),
and Pledgee have entered into certain financing arrangements
pursuant to certain financing agreements, including, without
limitation, the Loan and Security Agreement dated as of November 8,
2006 (the “Loan Agreement”) and certain notes,
instruments, guaranties and other agreements executed and/or
delivered in connection therewith (all of the foregoing, together
with the Credit Agreement, as the same now exists or may hereafter
be amended, restated, renewed, extended, replaced, supplemented or
otherwise modified, collectively, the
“Agreements”);
WHEREAS, Pledgor is the record and
beneficial owner of the shares of Stock listed in Schedule I
hereto;
WHEREAS, Pledgor owns all of the
issued and outstanding capital stock of Borrower and benefits from
the credit facilities made available to Borrower under the Loan
Agreement;
WHEREAS, Pledgor has requested that
Pledgee continue to make loans and advances to Borrower, which
loans and advances will have a direct benefit to Pledgor, and, in
consideration of the foregoing, Pledgor has agreed to secure the
payment and performance of the Borrower’s Obligations under
the Agreements by executing and delivering to Pledgee this Pledge
Agreement, delivering to Pledgee the Pledged Securities which are
registered in the name of Pledgor, together with appropriate powers
duly executed in blank by Pledgor, and delivering to Pledgee any
and all other documents which Pledgee deems necessary to protect
Pledgee’s interests hereunder;
NOW, THEREFORE, in consideration of
the premises and the covenants hereinafter contained and to induce
Lender to make Loans under the Loan Agreement, it is agreed as
follows:
1.
Definitions . Unless otherwise
defined herein, terms defined in the Loan Agreement are used herein
as therein defined, and the following shall have (unless otherwise
provided elsewhere in this Agreement) the following respective
meanings (such meanings being equally applicable to both the
singular and plural form of the terms defined):
“Bankruptcy Code” means
title 11, United States Code, as amended from time to time, and any
successor statute thereto.
“Event of Default”
means:
(a)
a case or proceeding shall have been commenced involuntarily
against Borrower or Pledgor in a court having competent
jurisdiction seeking a decree or order: (i) under the United
States Bankruptcy Code or any other applicable Federal, state or
foreign bankruptcy or other similar law, and seeking either (A) the
appointment of a custodian, receiver, liquidator, assignee, trustee
or sequestrator (or similar official) for such Person or of any
substantial part of its properties, or (B) the reorganization or
winding up or liquidation of the affairs of any such Person, and
such case or proceeding shall remain undismissed or unstayed for
sixty (60) consecutive days or such court shall enter a decree or
order granting the relief sought in such case or proceeding; or
(ii) invalidating or denying any Person’s right, power, or
competence to enter into or perform any of its obligations
hereunder or invalidating or denying the validity or enforceability
of this Agreement or any action taken hereunder or thereunder;
or
(b)
Borrower or Pledgor shall (i) commence any case, proceeding or
other action under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency,
reorganization, conservatorship or relief of debtors, seeking to
have an order for relief entered with respect to it or seeking
appointment of a custodian, receiver, liquidator, assignee, trustee
or sequestrator (or similar official) for it or any substantial
part of its properties, (ii) make a general assignment for the
benefit of creditors, (iii) consent to or take any action in
furtherance of, or, indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in paragraphs (b) or (c)
of this definition or clauses (i) and (ii) of this paragraph (c),
or (iv) shall admit in writing its inability to, or shall be
generally unable to, pay its debts as such debts become
due.
“Pledged Collateral” has
the meaning assigned to such term in Section 2 hereof.
“Pledged Entity” means
an issuer of Pledged Shares.
“Pledged Shares” means
those shares listed on Schedule I hereto.
“Obligations” has the
meaning assigned to such term in the Loan Agreement.
2.
Pledge . Pledgor hereby
pledges to Lender, and grants to Lender a first priority security
interest in all of the following (collectively, the “Pledged
Collateral”):
(a)
the Pledged Shares and the certificates representing the Pledged
Shares, and all dividends, distributions, cash, instruments and
other property or proceeds from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or
all of the Pledged Shares; and
(b)
such portion, as determined by Lender as provided in Section 6(d)
below, of any additional shares of stock of a Pledged Entity from
time to time acquired by Pledgor in any manner (which shares shall
be deemed to be part of the Pledged Shares), and the certificates
representing such additional shares, and all dividends,
distributions, cash, instruments and other property or proceeds
from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such Stock.
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3.
Security for Obligations
. As
security for the prompt and unconditional payment and performance
when due of the Borrower’s Obligations to Pledgee, Pledgor
hereby pledges, hypothecates, assigns, transfers and sets over to
Pledgee, the Pledged Property, and grants to Pledgee a continuing
security interest in the Pledged Property and the proceeds
thereof.
4.
Delivery of Pledged
Collateral . All certificates and
all promissory notes and instruments evidencing the Pledged
Collateral shall be delivered to and held by or on behalf of Lender
pursuant hereto. All Pledged Shares shall be accompanied by
duly executed instruments of transfer or assignment in blank, all
in form and substance satisfactory to Lender.
5.
Representations and
Warranties . Pledgor represents
and warrants to Lender that:
(a)
Pledgor is, and at the time of delivery of the Pledged Shares to
Lender will be, the sole holder of record and the sole beneficial
owner of such Pledged Collateral pledged by Pledgor free and clear
of any Lien thereon or affecting the title thereto, except for any
Lien created by this Agreement;
(b)
All of the Pledged Shares have been duly authorized, validly issued
and are fully paid and non-assessable;
(c)
Pledgor has the right and requisite authority to pledge, assign,
transfer, deliver, deposit and set over the Pledged Collateral
pledged by Pledgor to Lender as provided herein;
(d)
The Pledged Shares have not been issued or transferred in violation
of the securities registration, securities disclosure or similar
laws of any jurisdiction to which such issuance or transfer may be
subject;
(e)
All of the Pledged Shares are presently owned by Pledgor, and are
presently represented by the certificates listed on Part A of
Schedule I hereto. As of the date hereof, there are no
existing options, warrants, calls or commitments of any character
whatsoever relating to the Pledged Shares;
(f)
No consent, approval, authorization or other order or other action
by, and no notice to or filing with, any Governmental Authority or
any other Person is required (i) for the pledge by Pledgor of the
Pledged Collateral pursuant to this Agreement or for the execution,
delivery or performance of this Agreement by Pledgor, or (ii) for
the exercise by Lender of the voting or other rights provided for
in this Agreement or the remedies in respect of the Pledged
Collateral pursuant to this Agreement, except as may be required in
connection with such disposition by laws affecting the offering and
sale of securities generally;
(g)
The pledge, assignment and delivery of the Pledged Collateral
pursuant to this Agreement will create a valid first priority Lien
on and a first priority perfected security interest in favor of the
Lender in the Pledged Collateral and the proceeds thereof, securing
the payment of the Obligations, subject to no other
Lien;
(h)
This Agreement has been duly authorized, executed and delivered by
Pledgor and constitutes a legal, valid and binding obligation of
Pledgor enforceable against Pledgor in accordance
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with its terms;
and
(i)
The Pledged Shares constitute 100% of the issued and outstanding
shares of Stock of each Pledged Entity.
The representations and warranties
set forth in this Section 5 shall survive the execution and
delivery of this Agreement.
6.
Covenants . Pledgor covenants
and agrees that until the Termination Date:
(a)
Without the prior written consent of Lender, Pledgor will not sell,
assign, transfer, pledge, or otherwise encumber any of its rights
in or to the Pledged Collateral, or any unpaid dividends, interest
or other distributions or payments with respect to the Pledged
Collateral or grant a Lien in the Pledged Collateral, unless
otherwise expressly permitted by the Loan Agreement;
(b)
Pledgor will, at its expense, promptly execute, acknowledge and
deliver all such instruments and take all such actions as Lender
from time to time may request in order to ensure to Lender the
benefits of the Liens in and to the Pledged Collateral intended to
be created by this Agreement, including the filing of any necessary
Code financing statements, which may be filed by Lender with or (to
the extent permitted by law) without the signature of Pledgor, and
will cooperate with Lender, at Pledgor’s expense, in
obtaining all necessary approvals and making all necessary filings
under federal, state, local or foreign law in connection with such
Liens or any sale or transfer of the Pledged
Collateral;
(c)
Pledgor has and will defend the title to the Pledged Collateral and
the Liens of Lender in the Pledged Collateral against the claim of
any Person and will maintain and preserve such Liens;
and
(d)
Pledgor will, upon obtaining ownership of any additional Stock or
promissory notes or instruments of a Pledged Entity or Stock or
promissory notes or instruments otherwise required to be pledged to
Lender pursuant to any of the Loan Documents, which Stock, notes or
instruments are not already Pledged Collateral, promptly (and in
any event within three (3) Business Days) deliver to Lender a
Pledge Amendment, duly executed by Pledgor, in substantially the
form of Schedule II hereto (a “ Pledge Amendment
”) in respect of any such additional Stock, notes or
instruments, pursuant to which Pledgor shall pledge to Lender all
of such additional Stock, notes and instruments. Pledgor
hereby authorizes Lender to attach each Pledge Amendment to this
Agreement and agrees that all Pledged Shares listed on any Pledge
Amendment delivered to Lender shall for all purposes hereunder be
considered Pledged Collateral.
7.
Pledgor’s Rights
. As long
as no Event of Default shall have occurred and be continuing and
until written notice shall be given to Pledgor in accordance with
Section 8(a) hereof:
(a)
Pledgor shall have the right, from time to time, to vote and give
consents with respect to the Pledged Collateral, or any part
thereof for all purposes not inconsistent with the provisions of
this Agreement, the Loan Agreement or any other Loan Document;
provided, however, that no vote shall be cast, and no consent shall
be given or action taken, which would have the effect of impairing
the position or interest of Lender in respect of the Pledged
Collateral or which would authorize,
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effect or consent to (unless and to
the extent expressly permitted by the Loan Agreement):
(i)
the dissolution or liquidation, in whole or in part, of a Pledged
Entity;
(ii)
the consolidation or merger of a Pledged Entity with any other
Person;
(iii)
the sale, disposition or encumbrance of all or substantially all of
the assets of a Pledged Entity, except for Liens in favor of
Lender;
(iv)
any change in the authorized number of shares, the stated capital
or the authorized share capital of a Pledged Entity or the issuance
of any additional shares of its Stock; or
(v)
the alteration of the voting rights with respect to the Stock of a
Pledged Entity; and
(b)
except as expressly permitted under the Loan Agreement, all
dividends, payments and interest and all other distributions in
respect of any of the Pledged Shares, whenever paid or made, shall
be delivered to Lender to hold as Pledged Collateral and shall, if
received by Pledgor, be received in trust for the benefit of
Lender, be segregated from the other property or funds of Pledgor,
and be forthwith delivered to Lender as Pledged Collateral in the
same form as so received (with any necessary
endorsement).
8.
Defaults and Remedies;
Proxy.
(a)
Upon the occurrence of an Event of Default and during the
continuation of such Event of Default, and concurrently with
written notice to Pledgor, Lender (personally or through an agent)
is hereby authorized and empowered to transfer and register in its
name or in the name of its nominee the whole or any part of the
Pledged Collateral, to exchange certificates or instruments
representing or evidencing Pledged Collateral for certificates or
instruments of smaller or larger denominations, to exercise the
voting and all other rights as a holder with respect thereto, to
collect and receive all cash dividends, interest, principal and
other distributions made thereon, to sell in one or more sales
after ten (10) days’ notice of the time and place of any
public sale or of the time at which a private sale is to take place
(which notice Pledgor agrees is commercially reasonable) the whole
or any part of the Pledged Collateral and to otherwise act with
respect to the Pledged Collateral as though Lender was the outright
owner thereof. Any sale shall be made at a public or private
sale at Lender’s place of business, or at any place to be
named in the notice of sale, either for cash or upon credit or for
future delivery at such price as Lender may deem fair, and Lender
may be the purchaser of the whole or any part of the Pledged
Collateral so sold and hold the same thereafter in its own right
free from any claim of Pledgor or any right of redemption.
Each sale shall be made to the highest bidder, but Lender reserves
the right to reject any and all bids at such sale which, in its
discretion, it shall deem inadequate. Demands of performance,
except as otherwise herein specifically provided for, notices of
sale, advertisements and the presence of property at sale are
hereby waived and any sale hereunder may be conducted by an
auctioneer or any officer or agent of Lender. PLEDGOR HEREBY
IRREVOCABLY CONSTITUTES AND APPOINTS LENDER AS THE PROXY AND
ATTORNEY IN FACT OF PLEDGOR WITH RESPECT TO THE PLEDGED COLLATERAL,
INCLUDING THE RIGHT TO VOTE THE PLEDGED SHARES, WITH FULL POWER
OF
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SUBSTITUTION TO
DO SO. THE APPOINTMENT OF LENDER AS PROXY AND ATTORNEY IN
FACT IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE
TERMINATION DATE. IN ADDITION TO THE RIGHT TO VOTE THE
PLEDGED SHARES, THE APPOINTMENT OF LENDER AS PROXY AND ATTORNEY IN
FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGH
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