Sample Business Contracts

Repayment and Stock Pledge Agreement - Build-A-Bear Workshop Inc. and Maxine A. Clark

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         This Repayment and Stock Pledge Agreement (this "Agreement or "Pledge
Agreement") is made as of April 3, 2000 between Build-A-Bear Workshop, Inc., a
Delaware corporation ("Pledgee"), and Maxine A. Clark ("Pledgor").


         A. Pursuant to Pledgor's purchase of shares of Pledgee's common stock,
par value $.01 per share ("Common Stock"), under the Restricted Stock Purchase
Agreement dated April 3, 2000 (the "Purchase Agreement"), between Pledgor and
Pledgee under the Build-A-Bear Workshop, Inc. 2000 Stock Option Plan (the "Stock
Plan"), and Pledgor's payment for such shares with monies advanced pursuant to
that certain promissory note executed by Pledgor in favor of the Pledgee dated
April 3, 2000 (the "Note"), Pledgor has purchased 274,815 shares of Common Stock
(the "Shares") at a price of $4.50 per share, for a total purchase price of

         B. It is a condition precedent to the extension of credit pursuant to
the Note that the Pledgor shall have executed and delivered this Pledge
Agreement in favor of the Pledgee.

         NOW, THEREFORE, in consideration of the foregoing and for other
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto do hereby agree as follows:

1. Creation and Description of Security Interest. Pledgor hereby grants a lien
on and pledges all of the Shares (herein sometimes referred to as the
"Collateral") represented by certificate number ____, duly endorsed in blank or
with executable stock powers in form and substance satisfactory to Pledgee, and
herewith delivers said certificate to the Secretary of Pledgee (the "Escrow
Agent"), who shall hold said certificate subject to the terms and conditions of
this Pledge Agreement.

         The pledged stock shall be held by the Escrow Agent as security for the
repayment of the Note, and any costs and expenses incurred in the enforcement or
attempted enforcement of the Note, and any extensions or renewals thereof, and
the Escrow Agent shall not encumber, sell or otherwise dispose of such Shares
except in accordance with the provisions of this Pledge Agreement.

2. Pledgor's Representations and Covenants. Pledgor represents and covenants to
Pledgee, its successors and assigns, as follows:

                  (a) Pledgor will pay the principal sum of the Note secured
         hereby, together with interest thereon, at the time and in the manner
         provided in the Note.

                  (b) The Shares are free of all other encumbrances, defenses
         and liens (other than the lien granted hereunder), and Pledgor will not
         encumber or allow to be


         encumbered the Shares without the prior written consent of Pledgee or
         enter into any agreement that could restrict Pledgee's exercise of its
         rights hereunder or under the Note.

                  (c) Pledgor shall pay, prior to the delinquency date, all
         taxes, liens, assessments and other charges levied against the
         Collateral, and in the event Pledgor fails to do so, Pledgee shall have
         the right, but not the obligation, to pay all or any portion of such
         taxes and charges without contesting the validity or legality thereof.
         Any payment made by Pledgee pursuant to this Section 2(c) shall become
         part of the indebtedness of Pledgor secured hereunder, and until paid
         by Pledgor, shall bear interest at the default rate per annum set forth
         in the Note.

3. Voting Rights. During the term of this pledge, Pledgor shall vote the Shares
pledged hereunder solely in accordance with the provisions of that certain
Stockholders' Agreement dated as of April 3, 2000 among the Company and certain
of its stockholders a party thereto.

4. Stock Adjustments. In the event during the term of this Agreement of any
stock dividend, reclassification, readjustment, or other changes declared or
made in the capital structure of Pledgee, all new, substituted and additional
shares or other securities issued by reason of any such change shall be
delivered to and held by the Pledgee under the terms of this Pledge Agreement in
the same manner as the Shares originally pledged hereunder. In the event of
substitution of such securities, Pledgor, Pledgee and Escrow Agent shall
cooperate and execute such documents as are reasonable so as to provide for the
substitution of such Collateral and, upon such substitution, references to
"Shares" in this Pledge Agreement shall include the substituted shares of
capital stock of Pledgor as a result thereof.

5. Warrants and Rights. In the event that, during the term of this Agreement,
subscription warrants or other rights or options shall be issued in connection
with the Shares, such rights, warrants and options shall be the property of
Pledgor and, if exercised by Pledgor, all new stock or other securities so
acquired by Pledgor as it relates to the Share then held by Pledgee shall be
immediately delivered to Pledgee, to be held under the terms of this Agreement
in the same manner as the Shares pledged hereunder.

6. Repayment. Pledgor hereby agrees that at any time if Borrower shall have
received any cash payment or other distribution in respect of, or upon transfer,
sale or other disposition of, the Shares, then and in each such case, Pledgor
shall immediately deliver to Pledgee such amount as in partial or full payment
of principal and interest on the Note.

7. Default. Pledgor shall be deemed to be in default of the Note and of this
Pledge Agreement upon the occurrence of any of the following events (each such
event, an "Event of Default"):

                  (a) Payment of principal or interest on the Note shall be
         delinquent for a period of 30 days or more beyond the due date thereof;


                  (b) Pledgor fails to perform any of the covenants or other
         agreements set forth in this Agreement for a period of 10 days; or

                  (c) Any representation or warranty herein shall be untrue in
         any material respect; or

                  (d) Pledgee shall cease to have valid perfected first priority
         lien on all or any part of the Collateral.

8.       Pledgee's Rights Upon or Event of Default.

                  (a) In the case of an Event of Default, Pledgee shall have the
         right to accelerate payment of the Note upon notice to Pledgor, and
         Pledgee shall thereafter be entitled to pursue all remedies available
         to a secured party under the Missouri Uniform Commercial Code in effect
         from time to time (whether or not applicable to the Collateral) or
         available at law or equity or otherwise.

                  (b) In the case of an Event of Default, in addition to any
         other rights or remedies otherwise available, Pledgee may, without
         notice and at its option, with respect to any Collateral which shall
         then be in, or shall thereafter come into, the possession or custody of
         Pledgee, Pledgee may sell or cause the same to be sold at any broker's
         board or at any public or private sale, in one or more sales or lots,
         at such price or prices as Pledgee may deem best, for cash or on credit
         or for future delivery, without assumption of any credit risk. The
         purchaser of any or all Collateral so sold shall thereafter hold the
         same absolutely, free from any lien, encumbrance or right of any kind
         whatsoever. Unless any of the Collateral threatens to decline speedily
         in value or is or becomes of a type sold on a recognized market,
         Pledgee will give Pledgor reasonable notice of the time and place of
         any public sale thereof, or of the time after which any private sale or
         other intended disposition is to be made. Any sale of the Collateral
         conducted in conformity with reasonable commercial practices of banks,
         insurance companies, commercial finance companies or other financial
         institutions disposing of property similar to the Collateral shall be
         deemed to be commercially reasonable. Any requirements of reasonable
         notice shall be met if such notice is mailed to the Pledgor at least
         ten (10) days before the time of the sale or disposition. Any other
         requirement of notice, demand or advertisement for sale is, to the
         extent permitted by law, waived. Pledgee may, in its own name or in the
         name of a designee or nominee, buy any of the Collateral at any public
         sale and, if permitted by applicable law, at any private sale. All
         expenses (including court costs and attorney's fees, expenses and
         disbursements) of, or incident to, the enforcement of any of the
         provisions hereof shall be recoverable from the proceeds of the sale of
         any of the Collateral for the period of time necessary to register such
         securities for public sale under the Securities Act of 1933, as amended
         (the "Securities Act"), or under any other applicable securities law.
         In view of the fact that the Securities Act and other applicable
         securities laws may impose certain restrictions on the method by which
         a sale of the Collateral may be effected, Pledgor agrees that upon the
         occurrence of an Event of Default, Pledgee may, from time to time,
         attempt to sell all or any part of the Collateral


         by means of a private sale, restricting the prospective purchasers to
         those who will represent and agree that they are purchasing for
         investment only and not for distribution. Pledgor acknowledges that any
         such private sales may be at prices and on terms less favorable to
         Pledgor than those obtainable through a public sale without such
         restrictions (including, without limitation, a public offering made
         pursuant to a registration statement under the Securities Act) and,
         notwithstanding such circumstances, Pledgor agrees that any such
         private sale shall be deemed to have been made in a commercially
         reasonable manner and that Pledgee shall have no obligation to engage
         in public sales and no obligation to delay the sale of any Collateral
         for the period of time necessary to permit the registration thereof for
         a form of public sale requiring registration under the Securities Act
         or under any other applicable securities laws. Pledgor waives any
         claims against Pledgee arising by reason of the fact that the price at
         any private sale was less than the price that might have been obtained
         at a public sale, even if Pledgee shall accept the first offer received
         and does not offer the Collateral to more than one prospective

9. Withdrawal or Substitution of Collateral. Pledgor shall not sell, withdraw,
pledge, substitute, grant any options in or otherwise dispose of all or any part
of the Collateral without the prior written consent of Pledgee.

10. Term. The pledge of Shares set forth herein shall continue until the
indefeasible payment in full in cash of all indebtedness secured hereby, at
which time the Shares shall be promptly delivered to Pledgor, without any
representation, warranty or covenant thereto or any recourse in respect thereof.

11. Recourse. In addition to the Collateral pledged hereunder, as additional
security for the payment and performance of all obligations of Pledgor hereunder
and under the Note, Pledgor hereby agrees that the Company shall have recourse
to personal assets of Pledgor (other than the Collateral) in an amount not to
exceed six hundred eighteen thousand three hundred thirty-three dollars and
seventy-five cents ($618,333.75); provided, however, that Pledgee shall have
recourse to Pledgor's personal assets pursuant to this Section 11 only in the
event that the Fair Market Value of the Collateral in possession of Pledgee at
the Maturity Date is less than fifty percent (50%) of the outstanding unpaid
principal balance of the Note on such date. For purposes of this Section 11,
"Fair Market Value" shall be determined pursuant to the Plan except in the event
the Common Stock is not publicly traded on an exchange or quoted on NASDAQ or a
successor quotation system, in which case the "Fair Market Value" for purposes
hereof shall be the value of the Collateral (determined without additional
premiums for control or discounts for minority interests or restrictions on
transfer) determined by an independent valuation consultant or appraiser of
recognized national standing selected by Pledgee and consented to by Pledgor,
which consent shall not be unreasonably withheld.

12. Insolvency. Pledgor agrees that if a bankruptcy or insolvency proceeding is
instituted by or against her or if a receiver is appointed for the property of
Pledgor, or if Pledgor makes an assignment for the benefit of creditors, or the
Pledgor shall take any action in furtherance of any of the foregoing, or the
Pledgor shall generally not, or shall be unable to, or shall admit in writing
her inability to, pay her debts as they become due, the entire amount unpaid on
the Note shall

become immediately due and payable, and Pledgee may proceed as provided in the
case of an Event of Default.

13. Invalidity of Particular Provisions. Pledgor and Pledgee agree that the
enforceability of invalidity of any provision or provisions of this Agreement
shall not render any other provision or provisions herein contained
unenforceable or invalid.

14. Successors or Assigns. Pledgor and Pledgee agree that all of the terms of
this Agreement shall be binding on their respective permitted successors and
assigns, and that the term "Pledgor" and the term "Pledgee" as used herein shall
be deemed to include, for all purposes, the respective designees, successors,
assigns, heirs, executors and administrators. Pledgor shall not assign or
otherwise transfer all or any of her rights and obligations hereunder without
the prior written consent of Pledgee, in its sole discretion. This Agreement
shall be freely assignable by Pledgee.

15. Defined Terms. Capitalized terms used herein without definition shall have
the meanings ascribed to such terms under the Purchase Agreement or the Stock

16. Governing Law. This Pledge Agreement shall be interpreted and governed by
the internal laws of the State of Missouri.


         IN WITNESS WHEREOF, the parties hereto have executed this Repayment and
Stock Pledge Agreement as of the day and year first above written.

         "PLEDGOR"                       Maxine A. Clark

                                         /s/ Maxine Clark
                                         12 Greenbriar, St. Louis, MO 63124

         "PLEDGEE"                        BUILD-A-BEAR WORKSHOP, INC.

                                         /s/ Maxine Clark
                                         By:  Maxine Clark
                                         Its:   President