Initial Public Offering (IPO): Registration Statement (General Form) — Form S-1
Filing Table of Contents
Document/Exhibit Description Pages Size
1: S-1 Brighstar Corp. Form S-1 HTML 1.42M
2: EX-4.1 Form of Common Stock Certificate 4 22K
3: EX-4.2 Certificate of Designation 34 124K
4: EX-4.3 Stockholders' Agreement 41 165K
5: EX-4.4 Purchase Agreement 246 961K
6: EX-4.5 Redemption Agreement 8 47K
7: EX-10.1 Amended & Restated Distribution Agreement 32 129K
W/Motorola
16: EX-10.10 Kyocera Wireless Corp. Supply Agreement 6 44K
17: EX-10.11 Amendment to Supply Agreement W/Kyocera 1 18K
18: EX-10.12 Amendment No. 2 to Supply Agreement W/Kyocera 2± 19K
19: EX-10.13 Amendment No. 3 to Supply Agreement W/Kyocera 1 18K
20: EX-10.14 Amendment No. 4 to Supply Agreement W/Kyocera 2 20K
21: EX-10.15 Amendment No. 5 to Supply Agreement W/Kyocera 2± 19K
22: EX-10.16 Contract for Services W/Otecel S.A. 42 170K
23: EX-10.17 Operating Agreement W/Narbitec 33 128K
24: EX-10.18 First Amendment to Operating Agreement 3 21K
25: EX-10.19 Development and Supply Agreement W/Csi Wireless 44 190K
8: EX-10.2 Exclusive Distribution Agreement W/Motorola 19 73K
26: EX-10.20 First Amendment to Development and Supply 16 67K
Agreement
27: EX-10.21 Employment Agreement / Denise Gibson 11 66K
28: EX-10.22 Executive Employment Agreement/ Marcelo Claure 17 90K
29: EX-10.23 Executive Employment Agreement W/Oscar Fumagali 10 60K
30: EX-10.24 Independent Contractor Agreement/ Victor Raul 8 41K
Califa
31: EX-10.25 Independent Contractor Agreement/ Carlos M. Touyaa 8 41K
32: EX-10.26 Industrial Multi-Tenant Lease 40 183K
33: EX-10.27 Lease Agreement 94 395K
34: EX-10.28 Factoring Agreement/ Factor Banarte 18 118K
35: EX-10.29 Factoring Agreement/ Bbva Bancomer, S.A. 15 65K
9: EX-10.3 Motorola Master Distributor Agreement 23± 94K
36: EX-10.30 Revolving Credit and Security Agreement W/Pnc Bank 131 511K
37: EX-10.31 Amended and Restated Payment Terms Agreement 22 101K
W/Motorola
38: EX-10.32 Intercreditor Agreement W/Motorola 29 124K
39: EX-10.33 Amended and Restated Stock Pledge and Security 14 63K
Agreement W/Motorola
40: EX-10.34 Limited Security Agreement W/Motorola 22 91K
41: EX-10.35 Security Agreement W/Motorola 22 98K
42: EX-10.36 Amended and Restated Security Agreement W/Motorola 13 67K
43: EX-10.37 Amended and Restated Unconditional Guaranty/ 9 45K
Brightstar Corp W/Motorola
44: EX-10.38 Amended and Restated Unconditional Guaranty/ 9 45K
Brightstar U.S.,Inc. W/Motorola
45: EX-10.39 Unconditonal Guaranty W/Motorola 16 70K
10: EX-10.4 Amendment One to Motorola Master Distributor 3 25K
Agreement
46: EX-10.40 Amended and Restated Personal Guaranty W/Motorola 5 32K
47: EX-10.41 Stock Pledge and Security Agreement W/Motorola 11 51K
48: EX-10.42 Amended and Restated Security Agreement W/Motorola 14 67K
49: EX-10.43 Amended and Restated Stock Pledge and Security 10 49K
Agreement/ Motorola
50: EX-10.44 Amended and Restated Pledge Agreement/Telcel C.A. 8± 42K
51: EX-10.45 Promissory Note W/American Express 5± 32K
52: EX-10.49 Purchase Agreement/El Salvador 14 64K
11: EX-10.5 First Amendment to Motorola Master Distributor 2 20K
Agreement
53: EX-10.50 Amendment No. 1 to Purchase Agreement /El Salvador 2 21K
54: EX-10.51 Purchase Agreement/ Guatemala 14 64K
55: EX-10.52 Amendment No. 1 to Purchase Agreement/Guatemala 2 23K
56: EX-10.53 2004 Stock Incentive Plan 20 89K
57: EX-10.54 Cellular Essential Properties Cross License Agmt 17 58K
12: EX-10.6 U.S. Distribution Agreement W/Motorola 30 105K
13: EX-10.7 Distributor Agreement W/Sendo America, Inc. 26 100K
14: EX-10.8 Distribution Agreement W/Sagem S.A. 33 117K
15: EX-10.9 Distributor Agreement W/Samsung 16 68K
58: EX-21 List of Subsidiaries 1 18K
59: EX-23.2 Consent of Deloitte & Touche LLP 1 17K
EX-10.42 — Amended and Restated Security Agreement W/Motorola
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PORTIONS OF THIS DOCUMENT INDICATED BY AN [***] HAVE BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT OF SUCH INFORMATION.
EXHIBIT 10.42
AMENDED AND RESTATED SECURITY AGREEMENT
This AMENDED AND RESTATED SECURITY AGREEMENT (the "Agreement") is made as
of April 23,2004, by BRIGHTSTAR US, INC., a Florida corporation (the "Debtor"),
in favor of MOTOROLA, INC., a Delaware corporation, in its capacity as agent for
itself and the other Motorola Parties (in such capacity, the "Secured Party").
Preliminary Statements
(a) The Debtor entered into a security agreement dated May 24, 2002 (the
"Original Security Agreement"), in favor of Motorola, Inc.
(b) The Debtor desires to amend the Original Security Agreement and to
restate it in its entirety as so amended and the Secured Party is willing to
allow such amendment and restatement.
NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Debtor agrees to amend and restate the Original Security
Agreement in its entirety as follows:
1. Definitions. All capitalized terms used but not defined in this
Agreement have the meanings given in the Amended and Restated Payment Terms
Agreement, dated as of April 23, 2004, by and among Motorola, Inc. (in its
capacity as agent for itself and the other Motorola Parties), Brightstar Corp.
and the other persons and entities that are parties thereto (as the same may be
amended, restated, supplemented or otherwise modified from time to time, the
"Payment Terms Agreement"). All terms defined in the UCC and used in this
Agreement have the meanings given to them in the UCC; provided, that if a term
is defined in Article 9 of the UCC differently than in another Article of the
UCC, the term has the meaning given in Article 9.
2. Amendment and Restatement; Guaranties and Liens Unimpaired. This
Agreement amends, restates and replaces the Original Security Agreement in its
entirety. It is the intention and understanding of the parties that (a) this
Agreement shall continue the obligations under the Original Security Agreement
(and any Brightstar Obligations represented, guarantied or secured thereby) and
shall not act as a novation of the Original Security Agreement (or any
Brightstar Obligations represented, guarantied or secured thereby), (b) all
guaranties and all security interests, pledges and other liens guarantying or
securing the Original Security Agreement (or any Brightstar Obligations
represented, guarantied or secured thereby) shall remain in full force and
effect and shall guarantee and secure this Agreement (and all Brightstar
Obligations represented, guarantied or secured thereby), and (c) the priority of
all guaranties and all security interests, pledges and other liens guarantying
or securing any obligations under the Original Security Agreement (or any
Brightstar Obligations represented, guarantied or secured thereby) shall not be
impaired by the execution, delivery or performance of this Agreement.
3. Security Interest. The Debtor hereby grants to the Secured Party a
security interest in all of the Debtor's right, title and interest in and to all
personal property of the Debtor, including, without limitation, all goods
(including inventory, equipment and any accessions thereto), accounts (including
health-care-insurance receivables), general intangibles (including
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payment intangibles), chattel paper (whether tangible or electronic),
instruments (including promissory notes), investment property (including
securities), documents, deposit accounts, letter-of-credit rights (whether or
not the letter of credit is evidenced by a writing), supporting obligations, any
other contract rights or rights to the payment of money and insurance claims and
proceeds, whether such property or the Debtor's right, title or interest therein
or thereto is now owned or existing or hereafter acquired or arising and
wherever such property may now or hereafter be located, together with all cash
and non-cash proceeds thereof and all replacements, attachments and products
thereof (collectively, the "Collateral"). The Secured Party acknowledges that
its security interest in the Collateral and its rights under this Agreement
(including, without limitation, its rights as a secured party following the
occurrence of an Event of Default) are subject to the terms of the PNC
Intercreditor Agreement.
4. Obligations Secured. The security interest granted in this Agreement
secures the prompt payment and performance in full of the Brightstar
Obligations.
5. Ownership. The Debtor represents and warrants to the Secured Party
that it owns the Collateral and the Collateral is free and clear of all Liens,
other than Permitted Liens, and agrees that it will keep the Collateral free and
clear from all Liens, other than Permitted Liens.
6. Name and Offices. There has been no change in the name of the
Debtor, or the name under which the Debtor conducts business, within the 5 years
preceding the date of execution of this Agreement (or, if the Debtor has not
been in existence for 5 years, since the date of its organization) and the
Debtor has not moved its executive offices or changed the jurisdiction of its
organization within the 5 years preceding the date of execution of this
Agreement (or, if the Debtor has not been in existence for 5 years, since the
date of its organization). The organizational identification number of the
Debtor as provided herein is correct.
7. Title/Taxes. The Debtor has good and marketable title to the
Collateral and will warrant and defend it against all claims. The Debtor will
not transfer, sell, or lease the Collateral (except for sales of inventory in
the ordinary course of business). The Debtor agrees to pay promptly all taxes
and assessments upon or for the use of the Collateral and on this Agreement. At
its option, the Secured Party may discharge taxes, liens, security interests or
other encumbrances at any time levied or placed on the Collateral. The Debtor
agrees to reimburse the Secured Party, on demand, for any such payment made by
the Secured Party. Any amounts so paid shall be added to the Brightstar
Obligations and be secured hereunder, and shall bear interest payable by the
Debtor at the annual rate of eighteen percent per annum (18% p.a.).
8. Waivers. The Debtor waives presentment, demand, protest, notice of
dishonor, notice of default, demand for payment, notice of intention to
accelerate, and notice of acceleration of maturity. The Debtor further agrees
not to assert against the Secured Party as a defense (legal or equitable), as a
set-off, as a counterclaim, or otherwise, any claims the Debtor may have against
any seller or lessor that provided personal property or services relating to any
part of the Collateral. The Debtor waives any exemptions with regard to the
Collateral. The Debtor waives any and all rights to notice or to hearing prior
to the Secured Party's taking immediate possession or control of any Collateral,
and to any bond or security which might be
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required by applicable law prior to the exercise of any of the Secured Party's
remedies against any Collateral.
9. Extensions, Releases. The Debtor agrees that the Secured Party may
extend, renew or modify any of the Brightstar Obligations and grant any
releases, compromises or indulgences with respect to any security for the
Brightstar Obligations, or with respect to any party liable for the Brightstar
Obligations, all without notice to or consent of the Debtor and without
affecting the liability of the Debtor or the enforceability of this Agreement.
10. Notifications of Change. The Debtor will notify the Secured Party in
writing at least 30 days prior to any change in: (i) the Debtor's chief place of
business and/or residence; (ii) the Debtor's name or identity; or (iii) the
Debtor's corporate structure (including, without limitation, the jurisdiction of
its organization). The Debtor will keep the Collateral at the location(s)
previously provided to the Secured Party until such time as the Secured Party
provides written advance consent to a change of location. The Debtor will bear
the cost of preparing and filing any documents necessary to protect the Secured
Party's Liens.
11. Collateral Condition and Lawful Use. The Debtor represents that the
Collateral is in good repair and condition and that the Debtor shall use
reasonable care to prevent the Collateral from being damaged or depreciating.
The Debtor shall immediately notify the Secured Party of any material loss or
damage to the Collateral. The Debtor shall not permit any item of equipment to
become a fixture to real estate or an accession to other personal property. The
Debtor represents it is in compliance in all material respects with all federal,
state and local laws, rules and regulations applicable to its properties, the
Collateral, operations, business, and finances, including, without limitation,
any federal or state laws relating to liquor (including 18 U.S.C. Section 3617,
et seq.) or narcotics (including 21 U.S.C. Section 801, et seq.) and all
applicable federal, state and local laws, and regulations intended to protect
the environment.
12. Risk of Loss and Insurance. The Debtor shall bear all risk of loss
with respect to the Collateral. The injury to or loss of the Collateral, either
partial or total, shall not release the Debtor from payment or other performance
hereof. The Debtor agrees to obtain and keep in force casualty and hazard
insurance on the Collateral naming the Secured Party as loss payee. Such
insurance is to be in form and amounts reasonably satisfactory to the Secured
Party. All such policies shall provide to the Secured Party a minimum of 30 days
written notice of cancellation. The Debtor shall furnish to the Secured Party
such policies or other evidence of such policies satisfactory to the Secured
Party. The Secured Party is authorized, but not obligated, to purchase any or
all insurance or "Single Interest Insurance" protecting such interest as the
Secured Party deems appropriate against such risks and for such coverage and for
such amounts, including either the amount of the Brightstar Obligations or value
of the Collateral at its discretion, all at the Debtor's expense. In such event,
the Debtor agrees to reimburse the Secured Party for the cost of such insurance
and the Secured Party may add such cost to the Brightstar Obligations. The
Debtor shall bear the risk of loss to the extent of any deficiency in the
effective insurance coverage with respect to loss or damage to any of the
Collateral. The Debtor hereby assigns to the Secured Party the proceeds of all
such insurance and directs any insurer to make payments directly to the Secured
Party (except to the extent payable to the Agent under the PNC Credit
Agreement). The Debtor hereby appoints the Secured Party its attorney-in-fact,
which appointment shall be irrevocable and coupled with an interest for so long
as the
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Brightstar Obligations are unpaid, to file proof of loss and/or any other forms
required to collect from any insurer any amount due from any damage or
destruction of the Collateral, to agree to and bind the Debtor as to the amount
of said recovery, to designate payee(s) of such recovery, to grant releases to
any insurer, to grant subrogation rights to any insurer, and to endorse any
settlement check or draft. The Debtor agrees not to exercise any of the
foregoing powers granted to the Secured Party without the Secured Party's prior
written consent.
13. Financing Statements. No Financing Statement (other than any in
favor of the Secured Party) covering any of the Collateral or proceeds thereof
is on file in any public filing office except with respect to Permitted Liens
relating to the PNC Credit Agreement. This Agreement, or a copy thereof, or any
financing statement authorized hereunder may be recorded. On request of the
Secured Party, the Debtor will execute or authorize one or more financing
statements in form satisfactory to the Secured Party and will pay all costs and
expenses of filing the same or of filing this Agreement in all public filing
offices, where filing is deemed by the Secured Party to be desirable. The
Secured Party is authorized to file Financing Statements relating to the
Collateral without the Debtor's signature where authorized by law. The Debtor
appoints the Secured Party as its attorney- in- fact to execute such documents
necessary to accomplish perfection of the Secured Party's security interest. The
appointment is coupled with an interest and shall be irrevocable as long as any
Brightstar Obligations remain outstanding. The Debtor further agrees to take
such other actions as might be requested for the perfection, continuation and
assignment, in whole or in part, of the security interests granted herein. If
certificates are issued or outstanding as to any of the Collateral, the Debtor
will cause the security interests of the Secured Party to be properly protected,
including perfection of notation thereon.
14. Contracts. Chattel Paper, Accounts, General Intangibles. The Debtor
warrants that the Collateral consisting of contract rights, chattel paper,
accounts, or general intangibles is (i) genuine and enforceable in accordance
with its terms except as limited by law; (ii) not subject to any defense,
set-off, recoupment claim, or counterclaim of a material nature against the
Debtor; (iii) not subject to any other circumstances that would impair the
validity, enforceability or amount of such Collateral; and (iv) consistent with
each other representation or warranty made by the Debtor to the Secured Party.
Effective upon the occurrence of an Event of Default, the Debtor shall not
amend, modify or supplement any lease, contract or agreement contained in the
Collateral or waive any provision therein, without the prior written consent of
the Secured Party.
15. Account Information Upon the occurrence of an Event of Default, the
Debtor shall from time to time upon the request of the Secured Party, provide
the Secured Party with schedules describing all accounts and contracts,
including customers, addresses, credited or acquired by the Debtor and, at the
Secured Party's request, shall execute and deliver written assignments of
contracts and other documents evidencing such accounts and contracts to the
Secured Party. Together with each schedule, the Debtor shall, if requested by
the Secured Party, furnish the Secured Party with copies of the Debtor's sales
journals, invoices, customer purchase orders or the equivalent, and original
shipping or delivery receipts for all goods sold, and the Debtor warrants the
genuineness thereof.
16. Account and Contract Debtors. Upon the occurrence of an Event of
Default, the Secured Party shall have the right to notify the account and
contract debtor obligated on any or
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all of the Collateral to make payment thereof directly to the Secured Party and
the Secured Party may take control of all proceeds of any such Collateral, which
rights the Secured Party may exercise at any time. The cost of such collection
and enforcement, including reasonable attorneys' fees and expenses, shall be
borne solely by the Debtor whether the same is incurred by the Secured Party or
the Debtor. Upon demand of the Secured Party, the Debtor will, upon receipt of
all checks, drafts, cash and other remittances in payment on any Collateral,
deposit the same in a special deposit account maintained with a financial
institution acceptable to the Secured Party, over which the Secured Party has
control.
17. Modification to Accounts. Upon the occurrence of an Event of
Default, no discount, credit or allowance shall be granted by the Debtor to any
account or contract debtor and no return of merchandise shall be accepted by the
Debtor without the Secured Party's prior written consent. The Secured Party may,
after Default, settle or adjust disputes and claims directly with the account or
contract debtor for amounts and upon terms that the Secured Party considers
advisable, and in such cases, the Secured Party will credit the Brightstar
Obligations with the net amounts received by the Secured Party, after deducting
all of the expenses incurred by the Secured Party. The Debtor agrees to
indemnify and defend the Secured Party and hold it harmless with respect to any
claim or proceeding arising out of any matter related to collection of the
Collateral.
18. Government Contracts. If any accounts receivable or proceeds of
inventory covered hereby arise from obligations due to the Debtor from any
governmental unit or organization, the Debtor shall immediately notify the
Secured Party in writing and execute all documents and take all actions demanded
by the Secured Party to ensure recognition by such governmental unit or
organization of the rights of the Secured Party in the Collateral.
19. Inventory. So long as no Default has occurred, the Debtor shall have
the right in the ordinary course of business, to process and sell the Debtor's
inventory. Upon demand of the Secured Party, the Debtor will, upon receipt of
all checks, drafts, cash and other remittances, in payment of the Collateral
sold, deposit the same in a special deposit account maintained with a financial
institution acceptable to the Secured Party, over which the Secured Party (and,
to the extent required by the PNC Credit Agreement, the Agent) has control. The
Debtor shall comply with all federal, state, and local laws, regulations,
rulings, and orders applicable to the Debtor or its assets or business, in all
respects. Without limiting the generality of the previous sentence, the Debtor
shall comply with all requirements of the federal Fair Labor Standards Act in
the conduct of its business and the production of inventory. The Debtor shall
notify the Secured Party immediately of any violation by the Debtor of the Fair
Labor Standards Act, and a failure of the Debtor to so notify the Secured Party
shall constitute a continuing representation that all inventory then existing
has been produced in compliance with the Fair Labor Standards Act.
20. Instruments, Chattel Paper. Any Collateral that is instruments,
chattel paper and negotiable documents will be properly assigned to, deposited
with and held by the Secured Party, unless the Secured Party shall hereafter
otherwise direct or consent in writing; provided, however, that the Debtor shall
not be obligated to deliver such instruments, chattel paper nor negotiable
documents to the Secured Party so long as that collateral is pledged to the
Agent to secure the loans by the Lenders under the PNC Credit Agreement as in
effect on this date to the extent such loans are permitted under the Payment
Terms Agreement. The Secured Party may,
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without notice, after the occurrence of an Event of Default, exercise any or all
rights of collection, conversion, or exchange and other similar rights,
privileges and options pertaining to the Collateral, but shall have no duty to
do so.
21. Collateral Duties. The Secured Party shall have no custodial or
ministerial duties to perform with respect to the Collateral pledged except as
set forth herein; and by way of explanation and not by way of limitation, the
Secured Party shall incur no liability for any of the following: (i) loss or
depreciation of the Collateral (unless caused by its willful misconduct), (ii)
its failure to present any paper for payment or protest, to protest or give
notice of nonpayment, or any other notice with respect to any paper or
Collateral, or (iii) its failure to present or surrender for redemption,
conversion or exchange any bond, stock, paper or other security whether in
connection with any merger, consolidation, recapitalization, or reorganization,
arising out of the refunding of the original security, or for any other reason,
or its failure to notify any party hereto that the Collateral should be so
presented or surrendered.
22. Transfer of Collateral. The Secured Party may assign its rights in
the Collateral or any part thereof, to the assignee, as well as any subsequent
holder hereof, who shall thereupon become vested with all the powers and rights
herein given to the Secured Party with respect to the property so transferred
and delivered, and the Secured Party shall thereafter, be forever relieved and
fully discharged from any liability with respect to such property so
transferred, but with respect to any property not so transferred the Secured
Party shall retain all rights and powers hereby given, and provided the
foregoing shall not relieve the Secured Party of any obligations with respect to
any representations and warranties relating to goods sold to the Debtor by the
Secured Party to the extent but only to the extent such representations and
warranties are specified in the Distribution Agreement.
23. Substitute Collateral. With the prior written consent of the Secured
Party, other Collateral may be substituted for the original Collateral herein in
which event all rights, duties, obligations, remedies and security interests
provided for, created or granted hereunder shall apply fully to such substitute
Collateral.
24. Inspection, Books and Records. The Debtor will at all times keep
accurate and complete records covering each item of the Collateral, including
the proceeds therefrom. The Secured Party, or any of its agents, shall have the
right, at intervals to be determined by the Secured Party and without hindrance
or delay, to inspect, audit, and examine the Collateral and to make extracts
from the books, records, journals, orders, receipts, correspondence and other
data relating to the Collateral, the Debtor's business or any other transaction
between the parties hereto. The Debtor will, at its expense, furnish the Secured
Party copies thereof upon request.
25. Attorneys' Fees and Other Costs of Collection. The Debtor shall pay
all of the Secured Party's reasonable expenses incurred in preparing and
enforcing this Agreement and in preserving and liquidating the Collateral,
including but not limited to, reasonable paralegal's, attorney's and expert's
fees and expenses, whether incurred without the commencement of a suit, in any
trial, arbitration, or administrative proceeding, or in any appellate or
bankruptcy proceeding.
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26. Remedies on Default (Including Power of Sale). If any Default or
Event of Default occurs, all of the Brightstar Obligations shall be immediately
due and payable, without notice and the Secured Party shall have all the rights
and remedies of a secured party under the Uniform Commercial Code. Without
limitation thereto, the Secured Party shall have the following rights and
remedies; (i) to take immediate possession of the Collateral, without notice or
resort to legal process, and for such purpose, to enter upon any premises on
which the Collateral or any part thereof may be situated and to remove the same
therefrom, or, at its option, to render the Collateral unusable or dispose of
such Collateral on the Debtor's premises; (ii) to require the Debtor to assemble
the Collateral and make it available to the Secured Party at a place to be
designated by the Secured Party; (iii) to exercise its right of set-off against
amounts, if any, owed to the Debtor by the Secured Party, without advance
notice, regardless of whether such accounts are general or special; (iv) to
dispose of the Collateral, as a unit in parcels, separately or with any real
property interests also securing the Brightstar Obligations, in any county or
place selected by the Secured Party, at either private or public sale (at which
public sale the Secured Party may be the purchaser) with or without having the
Collateral physically present at said sale; (v) any notice of sale, disposition
or other action by the Secured Party required by law and sent to the Debtor at
the Debtor's address shown above, or at such other address of the Debtor as may
from time to time be shown on the records of the Secured Party, at least 10 days
prior to such action, shall constitute reasonable notice to the Debtor and such
notice shall be deemed given or sent when mailed postage prepaid to the Debtor,
address as provided herein; (vi) the Secured Party shall be entitled to apply
the proceeds of any sale or other disposition of the Collateral, and the
payments received by the Secured Party with respect to any of the Collateral, to
the Brightstar Obligations in such order and manner as the Secured Party may
determine; and (vii) any Collateral that is subject to rapid declines in value
and is customarily sold in recognized markets may be disposed of by the Secured
Party in a recognized market for such collateral without providing notice of
sale.
27. Remedies are Cumulative. No failure on the part of the Secured Party
to exercise, and no delay in exercising, any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise by
the Secured Party of any right, power or remedy hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.
The remedies herein provided are cumulative and are not exclusive of any
remedies provided by law, in equity, or in other Brightstar Documents.
28. Bankruptcy.
(a) In the event any of the Brightstar Parties files a voluntary
petition seeking relief under Title 11 of the United States Code ("Bankruptcy
Code"), or any of the Brightstar Parties becomes the subject of an involuntary
bankruptcy proceeding in which an order for relief is entered and not dismissed
within 30 days, or otherwise becomes the subject of any petition seeking any
reorganization, arrangement, composition, readjustment liquidation, dissolution,
assignment for the benefit of creditors, or similar relief under any present or
future federal or state laws or statutes relating to bankruptcy, insolvency, or
other relief for debtors, or any of the Brightstar Parties seeks, consents to or
acquiesces to the appointment of a trustee, receiver, conservator or liquidator,
the Debtor (for itself and on behalf of each of the other Brightstar Parties)
agrees that the Secured Party will not be adequately protected and therefore
will be entitled to immediate relief from any automatic stay prescribed by
applicable state or federal law
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including, but not limited to, 11 U.S.C. Section 362(a), for cause, to enforce
its rights under this Agreement and the other Brightstar Documents unless the
Secured Party expressly reserves its right to do otherwise. This entitlement
shall be irrespective of any of the requirements of state or federal law
including, but not limited to, 11 U.S.C. Section 362, and the Secured Party
shall not be obligated to satisfy those requirements in order to obtain relief
from any stay, restraining order or injunction. The Secured Party shall also be
entitled to automatically and immediately exercise its rights to set off and
apply, directly or through any of the Motorola Parties, any and all deposits
(whether general or special, time or demand, provisional or final, or otherwise)
and other assets and properties at any time held in the possession, custody or
control of the Secured Party or any of the Motorola Parties, and any
indebtedness at any time owing by the Secured Party or any of the Motorola
Parties, to or for the credit, account or benefit of any of the Brightstar
Parties, against any and all of the Brightstar Obligations.
(b) The Debtor hereby warrants and represents that, by executing
and delivering this Agreement or any other document contemplated herein, or by
entering into any of the other transactions referred to in this Agreement or in
any of the other Brightstar Documents, none of the Brightstar Parties intends to
hinder, delay or defraud any person or entity to whom any of the Brightstar
Parties is indebted or shall become indebted. The consideration the Brightstar
Parties have received or shall receive in connection with their execution of the
Brightstar Documents consists of the continuation of the extended payment terms,
and other accommodations as set forth therein, for so long as the Brightstar
Parties shall perform and observe the terms and conditions of the Brightstar
Documents. The foregoing consideration is valid, fair and substantial.
(c) To the best knowledge of the Debtor, there are no present or
threatened claims or litigation which affect or might affect the Collateral, or
any interest therein, including without limitation, any claims, liens or
encumbrances with respect to such property.
(d) The Debtor hereby represents and warrants that neither it nor
(to its knowledge) any of the other Brightstar Parties has any intent: (i) to
file a voluntary petition under any chapter of the Bankruptcy Code or in any
manner to seek relief, protection, reorganization, liquidation, dissolution or
similar relief for debtors under any local, state, federal or other insolvency
laws or laws providing for relief of debtors, or in equity, either at the
present time, or at any time hereafter unless otherwise agreed by the parties;
or (ii) directly or indirectly to cause an involuntary petition under any
chapter of the Bankruptcy Code to be filed against any of the Brightstar
Parties, or directly or indirectly, to cause any of the Brightstar Parties to
become the subject of any proceedings pursuant to any local, state, federal or
other insolvency laws, or laws providing for relief of debtors, or in equity,
either at the present time, or at any time hereafter; or (iii) directly or
indirectly to cause the Collateral or any portion thereof or any interest of any
of the Brightstar Parties therein to become the property of any debtor's estate
administered pursuant to the provisions of the Bankruptcy Code or the subject of
any local, state, federal or other bankruptcy, dissolution, liquidation or
insolvency proceedings, either at the present time or at any time hereafter. The
Debtor (for itself and on behalf of each of the other Brightstar Parties)
acknowledges therefore that the filing of any such petition or the seeking of
any such relief by any of the Brightstar Parties, whether directly or
indirectly, within 360 days from the date hereof, would be in bad faith by such
Brightstar Party, and solely for purposes of delaying, inhibiting or otherwise
impeding the exercise by the Secured Party of its rights and remedies against
such
Amended and Restated Security Agreement (Brightstar US) - Page 8
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Brightstar Party and against the Collateral pursuant to the Brightstar Documents
or in equity, and would constitute a bad faith filing.
(e) Each of the Brightstar Parties is solvent and the transactions
contemplated in this Agreement and the other Brightstar Documents shall not
result in any of the Brightstar Parties becoming insolvent
(f) The Debtor (for itself and on behalf of each of the other
Brightstar Parties) further agrees that to the extent the Secured Party or any
of the Motorola Parties has received, or will receive, by virtue of the
Brightstar Documents, "transfers" or "preferences" as such terms are defined by
the Bankruptcy Code, the Secured Party or such Motorola Party has given new
value and reasonably equivalent value contemporaneously in exchange for such
transfers and such transfers have not rendered any of the Brightstar Parties
insolvent. To the extent that the Secured Party or any of the Motorola Parties
has received or will receive by virtue of the Brightstar Documents, "transfers"
or "preferences", it is hereby agreed that the Secured Party or such Motorola
Party will not have received more than it would if any of the Brightstar Parties
commenced proceedings under Chapter 7 of the Bankruptcy Code.
(g) Insofar as any Motorola Party shall continue to ship inventory
to any of the Brightstar Parties, any and all payments made by any of the
Brightstar Parties to the Secured Party or any Motorola Party pursuant to the
Brightstar Documents shall be construed as payments of a debt incurred by the
Brightstar Parties in the ordinary course of business or financial affairs of
the Brightstar Parties, the Secured Party and the Motorola Parties, in fact made
in the ordinary course of business or financial affairs of the Brightstar
Parties, the Secured Party and the Motorola Parties, and made according to
ordinary business terms consistent with the Brightstar Documents. Upon
information and belief, by entering into the Brightstar Documents, the parties
hereto believe neither the Secured Party nor any Motorola Party is receiving
voidable preferences as defined in 11 U.S.C. Section 547 and 549.
(h) Notwithstanding the provisions of the preceding paragraphs, in
the event any payments made by any of the Brightstar Parties to the Secured
Party or any of the Motorola Parties, directly or indirectly, or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, voided, and/or required to be repaid to a trustee, receiver or any
other party appointed under the Bankruptcy Code, state or federal law, common
law or equitable cause, the Brightstar Obligations or part thereof intended to
be satisfied shall be reinstated or shall continue to be effective, as the case
may be, and shall remain fully enforceable pursuant to the Brightstar Documents
and applicable law to the extent that such payments or transfers are voided, set
aside or required to be disgorged.
(i) In the event a voluntary or involuntary proceeding under the
Bankruptcy Code or applicable state law is commenced by or against any of the
Brightstar Parties, the Debtor (for itself and on behalf of each of the other
Brightstar Parties) agrees that the Secured Party and the Motorola Parties shall
have an allowed secured claim against such Brightstar Party in the amount of the
Brightstar Obligations as of the date of the commencement of such proceeding,
secured by a valid, perfected lien encumbering all of the Collateral.
Amended and Restated Security Agreement (Brightstar US) - Page 9
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(j) The Debtor (for itself and on behalf of each of the other
Brightstar Parties) acknowledges and agrees that none of the Brightstar Parties
has either legal nor equitable title or interest in any of the accounts
established by the Debtor pursuant to this Agreement or any of the other
Brightstar Documents (collectively, the "Accounts") or the monies, securities or
other assets deposited therein and further that the Accounts and the monies,
securities and other assets deposited therein shall not be deemed property of
the estate of any of the Brightstar Parties pursuant to 11 U.S.C. Section 541,
or property of an insolvency estate pursuant to any other applicable state or
federal statutes in the event that an insolvency proceeding is voluntarily or
involuntarily commenced with respect to any of the Brightstar Parties.
Similarly, the Debtor (for itself and on behalf of each of the other Brightstar
Parties) acknowledges and agrees that any payments made by any account debtor of
any of the Brightstar Parties, whether domestic or foreign, directly to the
Secured Party pursuant to the Brightstar Documents shall not be deemed property
of the Bankruptcy estate of any of the Brightstar Parties pursuant to 11 U.S.C.
Section 541 or property of an insolvency estate pursuant to any other applicable
state or federal statutes. The Secured Party shall be immediately entitled to
continue to receive payments due and owing under the Brightstar Documents from
the account debtors of any of the Brightstar Parties.
(k) The foregoing Bankruptcy provisions collectively constitute a
material inducement for the Secured Party to enter into this Agreement.
29. Notices. Any notice, demand or other communications required to or
permitted to be given or made hereunder in writing, shall be deemed given or
made when (a) delivered in person; (b) five (5) days after such communication is
posted in the mails; or (c) one (1) day after such communication is sent by a
nationally recognized overnight courier service. Such communications shall be
addressed as follows:
If to the Secured Party to: Motorola, Inc
798 International Parkway
Sunrise, Florida 33325
Attn: PCS Latin America Director of
Finance
With a copy to: Shook, Hardy & Bacon L.L.P.
Miami Center, Suite 2400
201 South Biscayne Boulevard
Miami, Florida 33131-4332
Attn: John M. Barkett, Esq.
If to the Debtor to: Brightstar US, Inc.
625 Forest Edge Drive
Vernon Hills, Illinois 60061
Attn: Denise Gibson
With a copy to: Kirkpatrick & Lockhart LLP
Miami Center, 20th Floor
201 South Biscayne Boulevard
Miami, Florida 33131
Attn: Clayton E. Parker, Esq.
Amended and Restated Security Agreement (Brightstar US) - Page 10
[***] Denotes Confidential Treatment Requested
or at such other address or addresses as the party addressed may from time to
time designate in writing.
30. Miscellaneous. (i) Amendments and Waivers. No waivers, amendments or
modifications of any provision of this Agreement shall be valid unless in
writing and signed by an officer of the Secured Party. No waiver by the Secured
Party of any Default shall operate as a waiver of any other Default or of the
same Default on a future occasion. Neither the failure of, nor any delay by, the
Secured Party in exercising any right, power or privilege granted pursuant to
this Agreement shall operate as a waiver thereof, nor shall a single or partial
exercise thereof preclude any other or further exercise of any other right,
power or privilege. (ii) Assignment. All rights of the Secured Party hereunder
are freely assignable, in whole or in part, and shall inure to the benefit of
and be enforceable by the Secured Party, its successors, assigns and affiliates.
The Debtor shall not assign its rights and interest hereunder without the prior
written consent of the Secured Party, and any attempt by the Debtor to assign
without the Secured Party's prior written consent is null and void. Any
assignment shall not release the Debtor from the Brightstar Obligations. This
Agreement shall be binding upon the Debtor, and its successors and assigns.
(iii) Applicable Law. This Agreement shall be governed by and construed under
the law of the State of Florida without regard to that State's conflict of laws
principles. (iv) Severability. If any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective but only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement. (v) Captions. The captions contained herein are inserted for
convenience only and shall not affect the meaning or interpretation of this
Agreement or any provision hereof. The use of the plural shall also mean the
singular, and vice versa. (vi) Binding Contract. The Debtor by execution and the
Secured Party by acceptance of this Agreement, agree that each party is bound by
all terms and provisions of this Agreement. (vii) Construction. This document
shall be construed without regard to any presumption or rule requiring
construction against the party causing such document or any portion thereof to
be drafted. (viii) Execution and Delivery. This Agreement may be validity
executed and delivered by fax or other electronic transmission.
31. WAIVER OF JURY TRIAL. THE DEBTOR AND THE SECURED PARTY HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EACH MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER AGREEMENT BETWEEN ANY OF
THE BRIGHTSTAR PARTIES, ON ONE HAND, AND ANY MOTOROLA PARTY ON THE OTHER HAND,
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF EACH PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR
THE DEBTOR AND THE SECURED PARTY ENTERING INTO THIS AGREEMENT. THE PROVISIONS OF
THIS ARTICLE HAVE BEEN FULLY NEGOTIATED BY THE PARTIES HERETO AND THESE
PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. NEITHER THE DEBTOR NOR THE SECURED
PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE
PROVISIONS OF THIS ARTICLE WILL NOT BE ENFORCED IN ALL INSTANCES. NEITHER THE
DEBTOR NOR THE SECURED PARTY SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION, IN WHICH
A JURY TRIAL HAS BEEN WAIVED, WITH ANY OTHER ACTION IN WHICH A JURY TRIAL HAS
NOT BEEN OR CANNOT BE WAIVED.
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32. Waiver of Plea of Jurisdictions or Venue. Because the Debtor and the
Secured Party each have a significant interest in consistent interpretation of
this Agreement, the Debtor designates Miami, Florida as the sole forum for
resolution of any dispute arising hereunder. The Debtor hereby waives any plea
of jurisdiction or venue as not having a place of business in Miami-Dade County,
Florida, and hereby specifically authorizes any action brought upon the
enforcement of this Agreement by the Secured Party to be instituted and
prosecuted in either the Circuit Court of Miami-Dade County, Florida, or in the
United States District Court for the Southern District of Florida, at the
election of the Secured Party. The Debtor further agrees that a final judgment
in any action or proceeding will be conclusive and may be enforced against it in
any other jurisdiction or in any other manner provided by law.
[Signature page(s) to follow]
Amended and Restated Security Agreement (Brightstar US) - Page 12
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IN WITNESS WHEREOF, THE DEBTOR HAS EXECUTED AND DELIVERED THIS AGREEMENT
TO MOTOROLA AS OF THE DATE WRITTEN ABOVE.
BRIGHTSTAR US, INC.
BY: /s/ DENISE GIBSON
--------------------------------
NAME: DENISE GIBSON
TITLE: PRESIDENT
ORGANIZATIONAL IDENTIFICATION NUMBER:
P00000088485
ACCEPTED:
MOTOROLA, INC.
BY: /s/ DENNIS J. STRAND
---------------------------------
NAME: DENNIS J. STRAND
TITLE: CFO-PLS
I HEREBY CERTIFY the foregoing instrument was acknowledged before me
this___ day of April, 2004 by Dense Gibson, who in his/her capacity as President
of BRIGHTSTAR US, INC., a Florida corporation and who is personally known to me
or has produced________________________________as identification.
/s/
---------------------------------
NOTARY PUBLIC
NAME OF NOTARY PRINTED :_____________
[***] Denotes Confidential Treatment Requested
EXHIBIT 6(a)
OWNERSHIP OF ALL SHARES
OF BRIGHTSTAR ISSUED AND OUTSTANDING
PREFERRED STOCK
SHARES OF
SERIES A
PREFERRED
NAME STOCK:
---- --------------
Falcon Mezzanine Partners, LP 1,351,214.575
Prudential Capital Partners, L.P. 1,307,909.867
Prudential Capital Partners Management
Fund L.P. 43,304.705
[***] 600,000.000
Arrow Investment Partners 7,287.449
RCG Carpathia Master Fund, Ltd. 440,283.401
NUMBER OF
SHARES OF
NAME COMMON STOCK
---- --------------
R. Marcelo Claure 19,825,752
David Peterson 1,043,461
Dates Referenced Herein
| Referenced-On Page |
|---|
| This ‘S-1’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| Filed on: | | 8/9/04 | | | | | | | None on these Dates |
| | 4/23/04 | | 1 |
| | 5/24/02 | | 1 |
| List all Filings |
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