Exhibit 10.4
EXECUTION COPY
SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT
SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT, dated as of October
27, 1999, between BARNES & NOBLE, INC., a corporation duly organized and validly
existing under the laws of the State of Delaware (the "Company"); each of the
Subsidiaries of the Company identified under the caption "SUBSIDIARY GUARANTORS"
on the signature pages hereof (individually, a "Subsidiary Guarantor" and,
collectively, the "Subsidiary Guarantors" and, together with the Company, the
"Obligors"); and THE CHASE MANHATTAN BANK, as agent for the lenders or other
financial institutions or entities party, as lenders, to the Credit Agreement
referred to below (in such capacity, together with its successors in such
capacity, the "Administrative Agent").
The Company, the Subsidiary Guarantors, certain lenders and the
Administrative Agent (i) are parties to a Amended and Restated Credit Agreement
dated as of November 18, 1997 (as modified and supplemented and in effect from
time to time, the "Amended and Restated Credit Agreement"), providing, subject
to the terms and conditions thereof, for extensions of credit (by making of
loans and issuing letters of credit) to be made by said lenders to the Company
in an aggregate principal or face amount not exceeding $850,000,000 (as that
amount may be increased as provided therein), and (ii) concurrently herewith and
in connection with the Babbage's Etc. Acquisition, are entering into Amendment
No. 2 to the Amended and Restated Credit Agreement. The Obligors and the Agent
wish to amend the Security Agreement referred to in the Amended and Restated
Credit Agreement in certain respects and, accordingly, agree as follows:
Section 1. Definitions. Except as otherwise defined in this
Amendment, terms defined in the Amended and Restated Credit Agreement are used
herein as defined therein.
Section 2: Amendments. Subject to the satisfaction of the conditions
precedent specified in Section 3 below, but effective as of the date hereof, the
Annexes to the Security Agreement shall be amended as follows:
(a) Annex 1. Annex 1 to the Security Agreement shall be amended in its
entirety to read as Annex 1 hereto.
(b) Annex 2. Annex 2 to the Security Agreement shall be amended in its
entirety to read as Annex 2 hereto.
(c) Annex 3. Annex 3 to the Security Agreement shall be amended in its
entirety to read as Annex 3 hereto.
(d) Annex 4. Annex 4 to the Security Agreement shall be amended in its
entirety to read as Annex 4 hereto.
(e) Annex 5. Annex 5 to the Security Agreement shall be amended in its
entirety to read as Annex 5 hereto.
Section 2. Conditions Precedent. As provided in Section 2 above, the
amendments set forth in Section 2 shall become effective, as of the date hereof,
upon the due execution and delivery of this Amendment by the Obligors and the
Agent.
1
Section 3. Miscellaneous. Except as herein provided, the Security
Agreement shall remain unchanged and in full force and effect. This Amendment
may be executed in any number of counterparts, all of which taken together shall
constitute one and the same amendatory instrument and any of the parties hereto
may execute this Amendment by signing any such counterpart. This Amendment shall
be governed by, and construed in accordance with, the internal laws of the State
of New York.
[signature pages to follow]
IN WITNESS WHEREOF, the parties hereto have caused this Second
Amendment to be duly executed and delivered as of the day and year first above
written.
BARNES & NOBLE, INC.
By /s/Michael Archbold
-------------------------------
Title:Vice President, Treasurer
SUBSIDIARY GUARANTORS
B. DALTON BOOKSELLER, INC.
By /s/Michael Archbold
-------------------------------
Title:Vice President, Treasurer
BARNES & NOBLE BOOKSELLERS, INC.
By /s/Michael Archbold
-------------------------------
Title:Vice President, Treasurer
MARBORO BOOKS CORP.
By /s/Michael Archbold
-------------------------------
Title:Vice President, Treasurer
DOUBLEDAY BOOK SHOPS, INC.
By /s/Michael Archbold
-------------------------------
Title:Vice President, Treasurer
CCI HOLDINGS, INC.
By/s/Michael Archbold
-------------------------------
Title:Vice President, Treasurer
BABBAGE'S ETC. LLC
By /s/Leonard Riggio
-------------------------------
Title: Chairman
VENDAMERICA, INC.
By /s/Michael Archbold
-------------------------------
Title:Vice President, Treasurer
THE CHASE MANHATTAN BANK,
as Administrative Agent
By /s/Barry K. Bergman
-------------------------------
Title:Vice President
ANNEX 1
PLEDGED STOCK
BARNES & NOBLE, INC.
Issuer Certificate Registered Number of Shares
Nos. Owner
- -------------------------- -------------- --------------------- --------------------------------
B. Dalton Bookseller, C-1 Barnes & Noble, Inc. 360 shares of common stock,
Inc. par value $100
Barnes & Noble Booksellers, 1 Barnes & Noble, Inc. 100 shares of common stock,
Inc. par value $1
Marboro Books Corp. 4 Barnes & Noble, Inc. 10 shares of common stock, no
par value
CCI Holdings, Inc. 1 Barnes & Noble, Inc. 3,000 shares of common stock,
par value $1
B&N. Sub Corp 1 Barnes & Noble, Inc. 100 shares of common stock,
par value $1
B. DALTON BOOKSELLER, INC.
Issuer Certificate Registered Number of Shares
Nos. Owner
- -------------------------- -------------- --------------------- --------------------------------
Doubleday Book Shops, 5 B. Dalton 1,000 shares of common stock,
Inc. Bookseller, Inc. par value $1
Babbage's Etc. LLC N/A B. Dalton 86.5% Membership Interest
Bookseller, Inc.
Vendamerica, Inc. 2 B. Dalton 1,000 shares of common stock,
Bookseller, Inc. no par value
BARNES & NOBLE BOOKSELLERS, INC.
NONE
MARBORO BOOKS CORP.
NONE
DOUBLEDAY BOOK SHOPS, INC.
NONE
CCI HOLDINGS, INC.
- ------------------
NONE
BABBAGE'S ETC. LLC.
- -------------------
NONE
VENDAMERICA, INC
- ----------------
Certificate Registered
Issuer Nos. Owner Number of Shares
-------------------- ------------ ---------------------- -------------------------
Babbage's Etc. LLC N/A Vendamerica, Inc. 13.5% Membership
Interest
ANNEX 2
LIST OF PATENTS AND PATENT APPLICATIONS
BARNES & NOBLE, INC.
- --------------------
File Patent Country Registration No. Date
- -----------------------------------------------------------------------------------------------------
NONE
B. DALTON BOOKSELLER, INC.
- --------------------------
File Patent Country Registration No. Date
- -----------------------------------------------------------------------------------------------------
NONE
BARNES & NOBLE BOOKSELLERS, INC.
- --------------------------------
File Patent Country Registration No. Date
- -----------------------------------------------------------------------------------------------------
NONE
MARBORO BOOKS CORP.
- -------------------
File Patent Country Registration No. Date
- -----------------------------------------------------------------------------------------------------
NONE
DOUBLEDAY BOOK SHOPS, INC.
- --------------------------
File Patent Country Registration No. Date
- -----------------------------------------------------------------------------------------------------
NONE
CCI HOLDINGS, INC.
- ------------------
File Patent Country Registration No. Date
- -----------------------------------------------------------------------------------------------------
NONE
BABBAGE'S ETC. LLC
- ------------------
File Patent Country Registration No. Date
- -----------------------------------------------------------------------------------------------------
NONE
VENDAMERICA, INC.
- -----------------
File Patent Country Registration No. Date
- -----------------------------------------------------------------------------------------------------
NONE
ANNEX 3
LIST OF TRADE NAMES, TRADEMARKS, SERVICES MARKS,
TRADEMARK AND SERVICE MARK REGISTRATIONS AND
APPLICATIONS FOR TRADEMARK AND SERVICE MARK REGISTRATIONS
A. U.S. Trademarks
------------------
BARNES & NOBLE, INC.
- --------------------
Application (A)
Registration (R)
Mark or Series (S) No.
- -------------------------------------------------------------------
Blink 75/320,806(A)
What Are You Reading 75/057,954(A)
Premier Music (Design) 1,903,140(R)
Meet Me at Barnes & Noble 1,910,598(R)
The Book Lover's Second Home 1,930,860(R)
Nite Reader 2,105,941(R)
B. DALTON BOOKSELLER, INC.
- --------------------------
Application (A)
Registration (R)
Mark or Series (S) No.
- -------------------------------------------------------------------
Books Dalton 1,667,902 (R)
B. Dalton Jr. 1,684,036 (R)
B. Dalton Jr. (Design) 1,667,039 (R)
Booksavers 1,597,933 (R)
P.B. Pages 1,814,553 (R)
B. Dalton's 1,293,494 (R)
Barnes & Noble Jr.
(Design) 1,609,403 (R)
1
Barnes & Noble Jr. 1,606,005 (R)
B. Dalton Bookseller 846,824 (R)
B. Dalton 1,158,498 (R)
Hooked on Books 1,147,660 (R)
People Who Know Books
Know B. Dalton 1,306,552 (R)
Amaranth Press 1,404,928 (R)
Pickwick 1,047,832 (R)
Lamp of Learning
(Design) 1,607,811 (R)
BARNES & NOBLE BOOKSELLERS, INC.
- --------------------------------
Application (A)
Registration (R)
Mark or Series (S) No.
- -------------------------------------------------------------------
Bookstar (Design) 1,558,604 (R)
Amaranth Press 1,404,928(R)
MARBORO BOOKS CORP.
- -------------------
Application (A)
Registration (R)
Mark or Series (S) No.
- -------------------------------------------------------------------
NONE
CCI HOLDINGS, INC.
- ------------------
Application (A)
Registration (R)
Mark or Series (S) No.
- -------------------------------------------------------------------
NONE
DOUBLEDAY BOOK SHOPS, INC.
- --------------------------
Application (A)
Registration (R)
Mark or Series (S) No.
- -------------------------------------------------------------------
The Old Corner (Mass.) 0025314 (R)
Bookstore
Books of All Publishers
Since 1910 (and Design) 1,516,823 (R)
BABBAGE'S ETC. LLC
- ------------------
Application (A)
Registration (R)
Mark or Series (S) No.
- -------------------------------------------------------------------
Babbage's 1,345,315 (R) and
1,569,315 (R)
America's Software for 1,547,310 (R) and
the Home 1,553,597 (R)
Babbage's Software for 1,345,205 (R)
the Home
Gamestop 1,707,460 (R)
VENDAMERICA, INC.
- -----------------
Application (A)
Registration (R)
Mark or Series (S) No.
- -------------------------------------------------------------------
NONE
B. U.S. Tradenames
------------------
BABBAGE'S ETC. LLC
- ------------------
- ------------------------------------
- -----------------------------------------------------------------
Mark
- -----------------------------------------------------------------
Software Etc.
VENDAMERICA, INC.
- -----------------
- ------------------------------------
- -----------------------------------------------------------------
Mark
- -----------------------------------------------------------------
NONE
Foreign Trademarks
------------------
BARNES & NOBLE, INC.
- --------------------
Application (A) Registration or
Mark Registration (R) Country Filing Date (F)
- ---------------------------------------------------------------------------------------------------------------
NONE
B. DALTON BOOKSELLER, INC.
- --------------------------
Application (A) Registration or
Mark Registration (R) Country Filing Date (F)
- ---------------------------------------------------------------------------------------------------------------
NONE
BARNES & NOBLE BOOKSELLERS, INC.
- --------------------------------
Application (A) Registration or
Mark Registration (R) Country Filing Date (F)
- ---------------------------------------------------------------------------------------------------------------
NONE
MARBORO BOOKS CORP.
- -------------------
Application (A) Registration or
Mark Registration (R) Country Filing Date (F)
- ---------------------------------------------------------------------------------------------------------------
NONE
DOUBLEDAY BOOK SHOPS, INC.
- --------------------------
Application (A) Registration or
Mark Registration (R) Country Filing Date (F)
- ---------------------------------------------------------------------------------------------------------------
NONE
CCI HOLDINGS, INC.
- ------------------
Application (A) Registration or
Mark Registration (R) Country Filing Date (F)
- ---------------------------------------------------------------------------------------------------------------
NONE
BABBAGE'S ETC. LLC
- ------------------
Application (A) Registration or
Mark Registration (R) Country Filing Date (F)
- ---------------------------------------------------------------------------------------------------------------
NONE
VENDAMERICA, INC.
- -----------------
Application (A) Registration or
Mark Registration (R) Country Filing Date (F)
- ---------------------------------------------------------------------------------------------------------------
NONE
ANNEX 4
LIST OF CONTRACTS, LICENSES AND OTHER AGREEMENTS
RELATING TO INTELLECTUAL PROPERTY
BARNES & NOBLE, INC.
- --------------------
License Agreement dated as of February 11, 1989 between Barnes & Noble College
Bookstores, Inc. and Barnes & Noble Discount Bookstores, Inc. (a predecessor of
B. Dalton Bookseller, Inc.), and Consents to License Agreement Assignments,
dated as of November 18, 1988 and November 16, 1992, respectively.
B. DALTON BOOKSELLER, INC.
- --------------------------
Letter Agreement dated as of February 21, 1989 from Scribner's Book Companies,
Inc. and MacMillan, Inc. to B. Dalton Bookseller, Inc.
BARNES & NOBLE BOOKSELLERS, INC.
- --------------------------------
NONE
MARBORO BOOKS CORP.
- -------------------
NONE
DOUBLEDAY BOOK SHOPS, INC.
- --------------------------
Trade Mark and Service Mark License dated as of May 31, 1990 between Bantam
Doubleday Dell Publishing Group, Inc. and Doubleday Book Shops, Inc.
CCI HOLDINGS, INC.
- ------------------
NONE
BABBAGE'S ETC. LLC
- ------------------
NONE
VENDAMERICA, INC.
- -----------------
NONE
ANNEX 5
LIST OF LOCATIONS
BARNES & NOBLE, INC. B. DALTON BOOKSELLER, INC.
- ----------------------------------------------------------------------
1. 122 Fifth Avenue 1. 122 Fifth Avenue
New York, NY 10011 New York, NY 10011
2. 1400 Old Country Road 2. 1400 Old Country Road
Westbury, New York 11590 Westbury, NY 11590
BARNES & NOBLE BOOKSELLERS, INC. 3. 100 Middlesex Center Boulevard
- -------------------------------- Jamesburg, NJ 08831
4. 331 Herrod Drive
1. 122 Fifth Avenue Jamesburg, NJ 08831
New York, NY 10011
5. 308 Herrod Drive
Jamesburg, NJ 08831
2. 1400 Old Country Road
Westbury, New York 11590
MARBORO BOOKS CORP.
- -------------------
CCI HOLDINGS, INC.
1. 122 Fifth Avenue ------------------
New York, NY 10011
1. 122 Fifth Avenue
2. 1400 Old Country Road New York, NY 10011
Westbury, New York 11590
2. 1400 Old Country Road
3. One Pond Road Westbury, NY 11590
Rockleigh, NJ 07647
3. 6411 Vurleson Road
Austin, TX 78744
DOUBLEDAY BOOK SHOPS, INC.
- --------------------------
1. 122 Fifth Avenue
New York, NY 10011
2. 1400 Old Country Road
Westbury, New York 11590
BABBAGE'S ETC. LLC
- ------------------
1. 122 Fifth Avenue
New York, NY 10011
2. 1400 Old Country Road
Westbury, New York 11590
3. 2250 William D. Tate Avenue
Grapevine, TX 76051
VENDAMERICA, INC
- ----------------
1. 122 Fifth Avenue
New York, NY 10011
2. 1400 Old Country Road
Westbury, New York 11590
3. 2250 William D. Tate Avenue
Grapevine, TX 76051