SEC Contract Filing

Filing Date: 2022-01-21

Document Content:
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>exhibit105thirdpartypledge.htm
<DESCRIPTION>EX-10.5
<TEXT>
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<title>Document</title></head><body><div id="ic58976a3d2ea4b9b9ed4407c4a131a17_1"></div><div style="min-height:72pt;width:100%"><div style="text-align:right;text-indent:36pt"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:700;line-height:120%">Exhibit 10.5</font></div></div><div style="text-align:center"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:700;line-height:100%">THIRD PARTY PLEDGE AGREEMENT</font></div><div style="text-align:center"><font><br></font></div><div style="text-align:center"><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:100%">Dated as of January 20, 2022</font></div><div><font><br></font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:100%">1.&#160;&#160;&#160;&#160;GRANT OF SECURITY INTEREST. In consideration of any credit or other financial accommodation heretofore, now or hereafter extended or made to WORLD OF JEANS &#38; TOPS, a California corporation (&#34;Borrower&#34;), by WELLS FARGO BANK, NATIONAL ASSOCIATION (&#34;Bank&#34;), and for other valuable consideration, as security for the payment of all Indebtedness, specifically including, without limitation, Indebtedness extended pursuant to that certain Credit Agreement dated as of the date hereof between the Borrower and the Bank (the &#8220;Credit Agreement&#8221;) and any Reimbursement Obligations (as defined below), of Borrower to Bank, the undersigned TILLY&#8217;S, INC., a Delaware corporation (&#34;Owner&#34;) hereby assigns, transfers to and pledges with Bank, and grants to Bank a security interest in, the following money and property, together with all other money and property as may as any time be delivered to and deposited with Bank&#58;</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:100%">all of the issued and outstanding equity interests in World of Jeans &#38; Tops, a California corporation, beneficially owned or held by Owner, including but not limited to 20,000,000 shares of common stock of World of Jeans &#38; Tops, a California corporation, evidenced by certificate No. 20</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:100%">(collectively called &#34;Collateral&#34;), together with whatever is receivable or received when any of the Collateral or proceeds thereof are sold, collected, exchanged or otherwise disposed of, whether such disposition is voluntary or involuntary, including without limitation, (a)&#160;all rights to payment, including returned premiums, with respect to any insurance relating to any of the foregoing, (b)&#160;all rights to payment with respect to any claim or cause of action affecting or relating to any of the foregoing, and (c)&#160;all stock rights, rights to subscribe, stock splits, liquidating dividends, cash dividends, dividends paid in stock, new securities or other property of any kind which Owner is or may hereafter be entitled to receive on account of any securities pledged hereunder, including without limitation, stock received by Owner due to stock splits or dividends paid in stock or sums paid upon or in respect of any securities pledged hereunder upon the liquidation or dissolution of the issuer thereof (hereinafter called &#34;Proceeds&#34;), and in the event that Owner receives any such Proceeds, Owner will hold the same in trust on behalf of and for the benefit of Bank and will immediately deliver all such Proceeds to Bank in the exact form received, with the endorsement of Owner if necessary and&#47;or appropriate undated stock powers duly executed in blank, to be held by Bank as part of the Collateral, subject to all terms hereof. </font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:11pt;font-weight:400;line-height:100%">2.&#160;&#160;&#160;&#160;CONTINUING AGREEMENT&#59; REVOCATION&#59; OBLIGATION UNDER OTHER AGREEMENTS. This is a continuing agreement and all rights, powers and remedies hereunder shall apply to (a) all past, present and future Indebtedness of Borrower to Bank, including that arising under successive transactions which shall either continue the Indebtedness, increase or decrease it, or from time to time create new Indebtedness after all or any prior Indebtedness has been satisfied, specifically including, without limitation, any Reimbursement Obligations (as defined below), and notwithstanding the death, incapacity, dissolution, liquidation or bankruptcy of Borrower or Owner or any other event or proceeding affecting Borrower or Owner, (b) all obligations of Owner to Bank under that certain Continuing Guaranty dated as of the date hereof, (c) all obligations of Owner and rights of Bank under this Agreement&#59; and (d) all present and future obligations of Owner to Bank of other kinds. This Agreement shall not apply to any new Indebtedness created after actual receipt by Bank of written notice of its revocation as to such new Indebtedness&#59; provided however, that loans or advances made by Bank to Borrower after revocation under commitments existing prior to receipt by Bank of such revocation, and extensions, renewals or modifications, of any kind, of Indebtedness incurred by Borrower or committed by Bank prior to receipt by Bank of such revocation, shall not be considered new Indebtedness, including any Reimbursement Obligations. For the avoidance of doubt, and notwithstandin