EXHIBIT B
PLEDGE AGREEMENT
This Pledge Agreement (the "Agreement") is entered into as of the 15th
day of May, 2000 between HydroChem Holding, Inc. ("Lender") and B. Tom Carter,
Jr. ("Pledgor").
WHEREAS, Lender has granted a stock option (the "Stock Option") dated as
of the date hereof to Pledgor under which an aggregate of 16,089 shares of
Lender's Class Common Stock (the "Shares") may be purchased by Pledgor at an
exercise price of $1.00 per share; and
WHEREAS, simultaneously herewith, Pledgor is (i) exercising the Stock
Option to purchase the Shares which will be represented by Lender's stock
certificate no. CA-33, and (ii) executing a Secured Promissory Note (the "Note")
to Lender dated as of the date hereof in the principal amount of Sixteen
Thousand Eighty Nine 00/100 Dollars ($ 16,089.00) with interest as therein
specified which is in full payment for the Shares; and
WHEREAS, Pledgor desires to pledge all of the Stock Collateral (as such
term is hereinafter defined) as collateral and security for Pledgor's
obligations and duties under the Note and this Agreement.
NOW, THEREFORE, for and in consideration of the premises and the
covenants herein contained, and in consideration of the extension of credit to
Pledgor as evidenced by the Note, the parties hereto agree as follows:
1. Pledge of Stock Collateral. As collateral and security for the prompt
and full performance of all duties and obligations of Pledgor under the Note and
this Agreement, Pledgor hereby pledges, assigns and transfers unto Lender, and
grants a security interest to Lender in and to the following property of Pledgor
(collectively, the "Stock Collateral"):
(a) The Shares;
(b) All stock rights, rights to subscribe, dividends (including,
but not limited to, cash dividends, stock dividends, dividends paid in stock and
liquidating dividends), and any other rights and property interest (including,
but not limited to, accounts, contract rights, instruments and general
intangibles) arising out of or relating to the Shares;
(c) All other or additional (or less) stock or other securities
or property (including cash) paid or distributed in respect of the Shares by way
of stock split, spin off, reclassification, combination of shares or similar
corporate rearrangement;
(d) All other or additional (or less) stock or other securities
or property (including cash) paid or distributed in respect of the Shares by
reason of any consolidation, merger, exchange of stock, conveyance of assets,
liquidation or similar corporate reorganization; and
(e) All proceeds (both cash and non-cash) of the foregoing,
whether now or hereafter arising under the foregoing.
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The above referenced certificate representing the Shares, together with an
irrevocable stock powers executed in blank, are herewith delivered to Lender to
hold pursuant to the terms of this Agreement.
2. Dividends. So long as there exists no default by Pledgor under
the Note or this Agreement during the term hereof, all dividends and other
amounts with respect to the Stock Collateral shall be paid to the Pledgor.
3. Voting Rights. During the term of this Agreement, and so long as
Pledgor is not in default in the performance of any of the terms of the Note or
this Agreement, Pledgor shall have the sole and exclusive right to vote the
Stock Collateral on all corporate questions before the stockholders of Lender,
and Lender shall execute and deliver to Pledgor in a due and timely manner
proxies in favor of Pledgor to this end.
4. Representations and Warranties. Pledgor represents and warrants to
Lender (i) that the Shares are validly issued, fully paid and nonassessable,
(ii) that the Shares are validly pledged to Lender in accordance with law, and
(iii) that Pledgor has, and will have, good and marketable title to the Shares,
free and clear of all liens and encumbrances (other than the security interest
granted herein).
5. Covenants. Until full performance of Pledgor's duties and obligations
under the Note and this Agreement, Pledgor shall (i) deliver to Lender (a)
immediately upon Pledgor's receipt of any stock or other securities paid or
distributed in respect of the Shares, the certificates representing such stock
or securities, and (b) irrevocable stock powers executed in blank for all such
stock or securities; (ii) defend, at Pledgor's sole expense, the title to the
Stock Collateral or any part thereof; and (iii) promptly, upon request by
Lender, execute, acknowledge and deliver any financing statement, endorsement,
renewal, affidavit, deed, assignment, continuation statement, security
agreement, certificate or other document as Lender may require in order to
perfect, preserve, maintain, protect, continue and/or extend the lien and
security interest of Lender under this Agreement and the priority thereof.
6. Full Performance. Upon full performance of Pledgor's duties and
obligations under the Note and this Agreement, Lender shall deliver to Pledgor
all of the Stock Collateral that remains pledged hereunder and this Agreement
shall thereupon terminate.
7. Default. Pledgor shall be in default under this Agreement on the
occurrence of any of the following events or conditions:
(a) Failure to make any payment in accordance with the
terms of the Note; or
(b) Pledgor's failure to observe, keep or perform any
covenant, agreement or condition required by this Agreement to be observed, kept
or performed; or
(c) Pledgor's insolvency, or the appointment of an
assignee for the benefit of creditors or of a receiver for Pledgor, or in the
event that a petition under any provision of the Federal Bankruptcy Act is
filed either by or against Pledgor.
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8. Remedies. Upon the occurrence of any event of default, in addition to
any other right or remedy that Lender may then have under the Texas Business and
Commerce Code or otherwise, Lender may sell, assign and deliver, in its sole
discretion, all or any part of the Stock Collateral in one or more parcels, and
all right, title and interest, claim and demand therein, at public or private
sale, for cash or other property, upon credit or for future delivery, Pledgor
hereby waiving and releasing any and all equity or right of redemption.
9. No Waiver of Rights or Remedies. No failure or delay by Lender in
exercising any right, power or privilege under the Note or this Agreement shall
operate as a waiver thereof, and no single or partial exercise thereof shall
preclude any other or future exercise of any other right, power or privilege.
10. Notice. Any notice required or permitted hereunder shall be
given in writing and shall be deemed effective when delivered in person or when
deposited in the U.S. mails, postage prepaid, for delivery as registered or
certified mail, return receipt requested, and addressed as follows:
If to Pledgor:
B. Tom Carter, Jr.
5956 Sherry Lane
Suite No. 930
Dallas, Texas 75225
If to Lender:
HydroChem Industrial Services, Inc.
900 Georgia Avenue
Deer Park, Texas 77536
Attention: General Counsel
(or to such other address as may be stated in written notices furnished by any
party to the other party).
11. Governing Law. This Agreement shall be governed by and construed
under and in accordance with the Texas Business and Commerce Code and other
applicable laws of the State of Texas.
12. Parties Bound. This Agreement shall be binding on and inure to
the benefit of the parties hereto and their respective heirs, executors,
administrators, representatives, successors and assigns.
13. Severability. In case any one or more of the provisions contained in
this Agreement shall, for any reason, be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision hereof, and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision had never been
contained herein.
14. Entire Agreement. This Agreement constitutes the entire
understanding between the parties with respect to the subject matter hereof, and
it supercedes all other prior or contemporaneous agreements, understandings,
restrictions warranties or representations between the parties including, but
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not limited to, the Old Pledge Agreement which is hereby cancelled. This
Agreement may be amended or waived in the future only by a written instrument
signed by both parties.
15. Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning of this
Agreement or its interpretation.
16. Stockholders Agreement. Notwithstanding any other provision of this
Agreement, Lender hereby acknowledges that is takes the Stock Collateral subject
to the terms and conditions of that certain Stockholders Agreement dated as of
December 15, 1993, as amended, by and among Lender and all holders of Lender's
capital stock.
IN WITNESS WHEREOF, the parties have executed this Agreement and
caused the same to be duly delivered on the day and year hereinabove first set
forth.
PLEDGOR:
/s/ B. Tom Carter, Jr.
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B. Tom Carter, Jr.
LENDER:
HydroChem Holding, Inc.
By: /s/ Pelham H. A. Smith
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Pelham H.A. Smith,
Vice President
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