Exhibit 10.54

 

TRADEMARK SECURITY AGREEMENT

 

This TRADEMARK SECURITY AGREEMENT (this “Agreement”), dated as of November 18,
2004, is made among Smart & Final Inc., a Delaware corporation (the “Borrower”),
American Foodservice Distributors, a California corporation (“Foodservice”),
Smart & Final Stores Corporation, a California corporation (“S&F Stores”), Smart
& Final Oregon, Inc., an Oregon corporation (“Oregon”), Port Stockton Food
Distributors, Inc., a California corporation (“Port Stockton”), Casino Frozen
Foods, Inc., a California corporation (“Casino Foods”), Amerifoods Trading
Company, a Florida corporation (“Amerifoods”), FoodServiceSpecialists.com, Inc.,
an Oregon corporation (“Foodservice Specialists”), Okun Produce International,
Inc., a Florida corporation (“Okun”), and HL Holding Corporation, a Nevada
corporation (“HL Holding”) (collectively, the “Grantors”), and BNP PARIBAS, as
Administrative Agent (the “Administrative Agent”) for each of the Lender
Parties.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to a Credit Agreement, dated as of November 30, 2001 (as
amended and restated as of the date hereof (as so amended and restated, the
“Amended and Restated Credit Agreement” and as the same may be further amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the various financial institutions as are or
may become parties thereto (the “Lenders”) and the Administrative Agent, the
Lender Parties have extended Commitments to make Advances to the Borrower;

 

WHEREAS, in connection with the Credit Agreement, the Grantors have executed and
delivered a Security Agreement, dated as of November 30, 2001 (as the same may
be amended, restated, supplemented or otherwise modified from time to time, the
“Security Agreement”);

 

WHEREAS, as a condition precedent to the effectiveness of the Amended and
Restated Credit Agreement and the making of Advances thereunder, the Grantors
are required to execute and deliver this Agreement; and

 

WHEREAS, the Grantors have duly authorized the execution, delivery and
performance of this Agreement;

 

NOW THEREFORE, for good and valuable consideration the receipt of which is
hereby acknowledged, and in order to induce the Lender Parties to make Advances
to the Borrower pursuant to the Credit Agreement, each Grantor agrees, for the
benefit of each Lender Party, as follows.

 

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided (or incorporated by reference) in the Security
Agreement.

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SECTION 2. Grant of Security Interest. For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, to secure all of the
Secured Obligations, each Grantor does hereby mortgage, pledge and hypothecate
to the Administrative Agent, and grant to the Administrative Agent a security
interest in, for its benefit and the benefit of each Lender Party, all of the
following property (the “Trademark Collateral”), whether now owned or hereafter
acquired or existing by it:

 

(a) all United States, state and foreign trademarks, trade names, corporate
names, company names, business names, fictitious business names, internet domain
names, trade styles, service marks, certification marks, collective marks,
logos, other source or business identifiers, designs and general intangibles of
a like nature, all registrations and applications for any of the foregoing,
including, but not limited to the registrations and applications referred to in
Item A of Attachment I hereto, all extensions or renewals of any of the
foregoing, all of the goodwill of the business connected with the use of and
symbolized by the foregoing, the right to sue for past, present and future
infringement or dilution of any of the foregoing or for any injury to goodwill,
and all proceeds of the foregoing, including, without limitation, licenses,
royalties, income, payments, claims, damages, and proceeds of suit (all of the
foregoing items in this clause (a) being collectively called a “Trademark”), now
existing anywhere in the world or hereafter adopted or acquired, whether
currently in use or not; and

 

(b) all agreements providing for the granting of any right in or to Trademarks
(whether such Grantor is licensee or licensor thereunder) including, without
limitation, each agreement referred to in Item B of Attachment 1 attached
hereto.

 

SECTION 3. Security Agreement. This Agreement has been executed and delivered by
the Grantors for the purpose of registering the security interest of the
Administrative Agent in the Trademark Collateral with the United States Patent
and Trademark Office and corresponding offices in other countries of the world.
The security interest granted hereby has been granted as a supplement to, and
not in limitation of, the security interest granted to the Administrative Agent
for its benefit and the benefit of each Lender Party under the Security
Agreement. The Security Agreement (and all rights and remedies of the
Administrative Agent and each Lender Party thereunder) shall remain in full
force and effect in accordance with its terms.

 

SECTION 4. Acknowledgment. Each Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Administrative Agent with respect to
the security interest in the Trademark Collateral granted hereby are more fully
set forth in the Security Agreement, the terms and provisions of which
(including the remedies provided for therein) are incorporated by reference
herein as if fully set forth herein.

 

SECTION 5. Loan Document, etc. This Agreement is a Loan Document executed
pursuant to the Credit Agreement and shall (unless otherwise expressly indicated
herein) be construed, administered and applied in accordance with the terms and
provisions of the Credit Agreement.

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SECTION 6. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of
which shall constitute together but one and the same agreement.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered by their respective officers thereunto duly authorized as
of the day and year first above written.

 

SMART & FINAL INC.

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

AMERICAN FOODSERVICE DISTRIBUTORS

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

 

Trademark Security Agreement

--------------------------------------------------------------------------------

SMART & FINAL STORES CORPORATION

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

SMART & FINAL OREGON, INC.

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

PORT STOCKTON FOOD DISTRIBUTORS, INC.

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

 

Trademark Security Agreement

--------------------------------------------------------------------------------

CASINO FROZEN FOODS, INC.

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

AMERIFOODS TRADING COMPANY

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

FOODSERVICESPECIALISTS.COM, INC.

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

 

Trademark Security Agreement

--------------------------------------------------------------------------------

OKUN PRODUCE INTERNATIONAL, INC.

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

HL HOLDING CORPORATION

By:

 

/s/ Richard N. Phegley

--------------------------------------------------------------------------------

Name:

 

Richard N. Phegley

Title:

 

Senior Vice President and Chief Financial Officer

By:

 

/s/ Jan P. Berger

--------------------------------------------------------------------------------

Name:

 

Jan P. Berger

Title:

 

Vice President and Treasurer

 

Trademark Security Agreement

--------------------------------------------------------------------------------

BNP PARIBAS, as the Administrative Agent

By:

 

/s/ Clive Bettles

--------------------------------------------------------------------------------

Name:

 

Clive Bettles

Title:

 

Managing Director

By:

 

/s/ Janice S. Ho

--------------------------------------------------------------------------------

Name:

 

Janice S. Ho

Title:

 

Director

 

Trademark Security Agreement

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ATTACHMENT 1

TO TRADEMARK SECURITY AGREEMENT

 

Item A. Trademarks

 

Trademark Assets in the United States

 

Trademarks owned by Smart & Final Stores Corporation

Mark

--------------------------------------------------------------------------------

   Registered

--------------------------------------------------------------------------------

   Filed

--------------------------------------------------------------------------------

  

Status

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BAY HARBOR®

(Reg. No. 2,704,013)

   04/08/2003    12/17/2001    Renewal due 04/8/2013

PRO PRIDE®

(Reg. No. 2,840,102)

   05/11/2004    10/30/2002    Renewal due 05/11/2014

PRO PRIDE®

(Reg. No. 2,840,101)

   05/11/2004    10/30/2002    Renewal due 5/11/2014

PRO PRIDE®

(Reg. No. 2,840,103)

   05/11/2004    10/30/2002    Renewal due 05/11/2014

PRO VALUE®

(Reg. No. 2,838,632)

   05/04/2004    03/11/2003    Renewal due 05/04/2014

PRO VALUE™

(Serial No. 78/224,385

        03/11/2003   

ITU

Allowed 08/03/2004

SEQUANA™

(Serial No. 78/266,701)

        06/24/2003   

Use

Published 09/14/2004

SMART ALLIANCE®

(Reg. No. 2,877,183)

   08/24/2004    02/25/2003    Renewal due 08/24/2014

SMART CASH & CARRY™

(Serial No. 78/332,957)

        11/25/2003   

Use

Pending

--------------------------------------------------------------------------------

Trademarks owned by Smart & Final Stores Corporation

Mark

--------------------------------------------------------------------------------

   Registered

--------------------------------------------------------------------------------

   Filed

--------------------------------------------------------------------------------

  

Status

--------------------------------------------------------------------------------

SMART PRO CASH & CARRY™

(Serial No. 78/350,892)

        01/12/2004   

ITU

Pending

UNITED GROCERS CASH & CARRY™

(Serial No. 78/332,954)

        11/25/2003   

Use

Pending

PRO VALUE®

(Reg. No. 2,834,510)

   04/20/2004    03/11/2003    Renewal due 04/20/2014

SMART & FINAL CHEF’S REVIEW ™ (& design)

(Serial No. 78/351,278)

        01/13/2004   

Use

Published 09/30/2004

SMART & FINAL CHEF’S REVIEW ™ (& design)

(Serial No. 78/351,266)

        01/13/2004   

Use

Published 09/30/2004

SMART & FINAL CHEF’S REVIEW ™ (& design)

(Serial No. 78/333,183)

        11/25/2003   

Use

Published 09/29/2004

SMART & FINAL CHEF’S REVIEW ™ (& design)

(Serial No. 78/333,082)

        11/25/2003   

Use

Published 09/29/2004

SMART & FINAL CHEF’S REVIEW ™ (& design)

(Serial No. 78/332,956)

        11/25/2003   

Use

Published 09/29/2004

SMART & FINAL CHEF’S REVIEW ™ (& design)

(Serial No. 78/332,904)

        11/25/2003   

Use

Pending

SMART & FINAL CHEF’S REVIEW ™ (& design)

(Serial No. 78/332,884)

        11/25/2003   

Use

Published 09/29/2004

SMART & FINAL CHEF’S REVIEW ™ (& design)

(Serial No. 78/332,863)

        11/25/2003   

Use

Published 09/29/2004

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Foreign Trademark Assets

 

Trademark Asset

(Reg./Serial No.)

--------------------------------------------------------------------------------

   Jurisdiction

--------------------------------------------------------------------------------

  

Registrant/Applicant

--------------------------------------------------------------------------------

  

Status

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PRO PRIDE®

(Reg. No. 805031)

   Mexico   

Smart & Final Stores

Corporation

  

Registered 09/08/2003

Renewal due 04/30/2013

PRO PRIDE®

(Reg. No. 806032)

   Mexico   

Smart & Final Stores

Corporation

  

Registered 09/08/2003

Renewal due 04/30/2013

PRO VALUE®

(Reg. No. 823105)

   Mexico   

Smart & Final Stores

Corporation

  

Registered 02/27/2004

Renewal due 09/11/2013

PRO VALUE®

(Reg. No. 823106)

   Mexico   

Smart & Final Stores

Corporation

  

Registered 02/27/2004

Renewal due 09/11/2013

 

Item B. Trademark Licenses

 

1. Smart & Final Inc., Smart & Final Stores Corporation and American Foodservice
Distributors licensed to GFS Holdings, Henry Lee Company, GFS Stores LLC, and
GFS Orlando LLC the following trademarks, the term for these licenses expires as
of September 6, 2005:

 

Ambiance   Smart and Final     Bay Harbor   Smart and Final Iris Co.     Davis
Lay   Smart Buy     Dec-O-Toppes   Smart Cash     Iris   Smart Partners     La
Romanella   Smart Pro     Montecito   Smart Track     Pro Pride   Smart U    
Pro Value   Smart University     Rushing Waters   Smarty     Smart & Final  
Snack’rs     Smart Advantage   Tender-Lee    

.