Exhibit 10.35

 

EXECUTION VERSION

 

FIRST LIEN SECURED NOTE GRANT OF SECURITY INTEREST IN COPYRIGHTS

 

THIS FIRST LIEN SECURED NOTE GRANT OF SECURITY INTEREST IN COPYRIGHTS (this
“Agreement”), dated as of December [4], 2012, is made by each of the signatories
hereto (each, a “Grantor”) in favor of WILMINGTON TRUST, NATIONAL ASSOCIATION
(“Wilmington Trust”), as note collateral agent (in such capacity, the “Note
Collateral Agent”) with respect to the 5.25% Senior Secured First Priority Notes
due 2021 (the “Notes”) issued by HD SUPPLY, Inc., a Delaware corporation (the
“Company”) pursuant to the Indenture, dated as of the date hereof (as amended
pursuant to that First Supplemental Indenture, dated as of the date hereof, and
as further amended, amended and restated, waived, supplemented or otherwise
modified from time to time, the “Indenture”), among the Company, the Subsidiary
Guarantors from time to time parties thereto, and Wilmington Trust.

 

WHEREAS, pursuant to the Collateral Agreement, dated as of the date hereof (as
amended, amended and restated, waived, supplemented or otherwise modified from
time to time, the “Collateral Agreement”), among the Company, the Subsidiary
Guarantors party thereto from time to time and the Note Collateral Agent, each
Grantor granted to the Note Collateral Agent a security interest in its
Intellectual Property, including Copyrights; and

 

WHEREAS, each Grantor has duly authorized the execution, delivery and
performance of this Agreement.

 

NOW THEREFORE, for good and valuable consideration, the receipt of which is
hereby acknowledged, subject to the conditions of the Indenture, each Grantor
agrees, for the benefit of the Note Collateral Agent, as follows:

 

SECTION 1.  Definitions.  Unless otherwise defined herein or the context
other-wise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided or provided by reference in the Indenture
and the Collateral Agreement.

 

SECTION 2.  Grant of Security Interest.  Each Grantor hereby grants, subject to
existing licenses to use the Copyrights granted by such Grantor in the ordinary
course of its business, to the Note Collateral Agent, for the benefit of the
Secured Parties, a security interest in all of the Copyrights of such Grantor
(including, without limitation, those items listed on Schedule A hereto under
such Grantor’s name) and to the extent not otherwise included, all Proceeds and
products of any and all of the Copyrights, as collateral security for the prompt
and complete payment and performance when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations of such Grantor, except that no
security interest is or will be granted pursuant thereto or any other Note
Security Document in any right, title or interest of such Grantor under or in
any

 

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Copyright Licenses with Persons other than the Company, a Restricted Subsidiary
or an Affiliate thereof for so long as, and to the extent that, the granting of
such a security interest pursuant hereto would result in a breach, default or
termination of such Copyright Licenses.

 

SECTION 3.  Purpose.  This Agreement has been executed and delivered by the
Grantors for the purpose of recording the security interest granted pursuant to
the Collateral Agreement with the United States Copyright Office.  This
Agreement is expressly subject to the terms and conditions of the Collateral
Agreement.  The Collateral Agreement (and all rights and remedies of the Note
Collateral Agent 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 Note Collateral Agent with respect to
the security interest in the Copyrights are fully set forth in the Indenture and
the Collateral 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.  Counterparts.  This Agreement may be executed in counterparts, each
of which will be deemed an original, but all of which together constitute one
and the same original.

 

* * *

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

2

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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.

 

 

 

CREATIVE TOUCH INTERIORS, INC.

 

 

 

 

 

By:

/s/ Ricardo Nuñez

 

 

Name:

Ricardo Nuñez

 

 

Title:

Vice President and Secretary

 

 

 

 

 

HDS IP HOLDING, LLC

 

 

 

 

 

By:

/s/ Ricardo Nuñez

 

 

Name:

Ricardo Nuñez

 

 

Title:

Vice President and Secretary

 

 

 

 

 

HSI IP, INC.

 

 

 

 

 

By:

/s/ Ricardo Nuñez

 

 

Name:

Ricardo Nuñez

 

 

Title:

Vice President and Secretary

 

[Signature Page to First Lien Secured Note Notice Grant of Security Interest in
Copyrights]

 

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WHITE CAP CONSTRUCTION SUPPLY, INC.

 

 

 

 

 

By:

/s/ Ricardo Nuñez

 

 

Name:

Ricardo Nuñez

 

 

Title:

Vice President and Secretary

 

 

 

 

 

 

 

HD SUPPLY FACILITIES MAINTENANCE INC, LTD.

 

By:

HD Supply GP & Management, Inc.,

 

 

its general partner

 

 

 

 

 

 

 

By:

/s/ Ricardo Nuñez

 

 

Name:

Ricardo Nuñez

 

 

Title:

Vice President and Secretary

 

[Signature Page to First Lien Secured Note Notice Grant of Security Interest in
Copyrights]

 

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HD SUPPLY, INC.

 

 

 

 

 

By:

/s/ Ricardo Nuñez

 

 

Name:

Ricardo Nuñez

 

 

Title:

Senior Vice President, General Counsel and Secretary

 

[Signature Page to First Lien Secured Note Notice Grant of Security Interest in
Copyrights]

 

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WILMINGTON TRUST, NATIONAL ASSOCIATION

 

As Note Collateral Agent

 

 

 

 

 

By:

/s/ Lynn M. Steiner

 

 

Name:

Lynn M. Steiner

 

 

Title:

Vice President

 

[Signature Page to First Lien Secured Note Notice Grant of Security Interest in
Copyrights]

 

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Schedule A

 

Copyrights

 

Creative Touch Interiors, Inc.

Title

 

Registration 
No.

 

Registration 
Date

FW-08

 

VA 1-048-833

 

3/27/2000

 

HDS IP Holding, LLC

Title

 

Registration 
No.

 

Registration 
Date

Powerscope

 

TX7-364-190

 

3/5/2009

WaterCity

 

VA1-708-882

 

8/5/2008

 

HSI IP, Inc.

Title

 

Registration 
No.

 

Registration 
Date

Tools and industrial supplies: product catalog

 

TX6-012-472

 

7/15/2004

One vision, one company, one direction.

 

TX6-020-162

 

8/30/2004

 

White Cap Construction Supply, Inc.

Title

 

Registration 
No.

 

Registration 
Date

White Cap Construction Supply: the contractor trader.

 

TX6-205-672

 

3/23/2005

White Cap Construction Supply: the contractor trader.

 

TX6-151-123

 

3/28/2005

 

HD Supply Facilities Maintenance, Ltd.

Title

 

Registration 
No.

 

Registration 
Date

AmeriFile Spring/Summer Catalog U

 

TX0006838826

 

5/2/2008

 

A-1

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HD Supply, Inc.

 

Title

 

Registration 
No.

 

Registration 
Date

Maintenance warehouse catalog : maintenance warehouse catalog

 

TX0003628770

 

8/10/1993

Maintenance warehouse Kenmore appliance program

 

TX0003242540

 

2/5/1992

Maintenance warehouse plumbing repair parts order guide: vol. one.

 

TX0003209107

 

12/6/1991

Hospitality lodging catalog: plumbing, electrical, hardware—no. 1 May 1992/July
1992

 

TX0003318988

 

5/14/1992

Commercial institutional catalog: plumbing, electrical, hardware

 

TX0003374930

 

8/3/1992

Commercial institutional catalog: plumbing, electrical, hardware

 

TX0003317708

 

5/14/1992

Maintenance warehouse wholesale catalog

 

TX0003485093

 

2/4/1993

Maintenance warehouse wholesale catalog

 

TX0003364590

 

8/5/1992

Maintenance warehouse wholesale catalog

 

TX0003259113

 

2/5/1992

Maintenance warehouse wholesale catalog

 

TX0003122004

 

8/5/1991

Maintenance warehouse wholesale catalog

 

TX0003010475

 

1/28/1991

Maintenance warehouse wholesale catalog

 

TX0002920868

 

7/16/1990

Maintenance warehouse wholesale catalog

 

TX0002742030

 

1/31/1990

Maintenance warehouse wholesale catalog

 

TX0002633358

 

8/14/1989

Maintenance warehouse wholesale catalog

 

TX0002567867

 

2/2/1989

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0002427460

 

4/7/1988

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0002397162

 

9/6/1988

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0001682101

 

10/21/1985

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0001636878

 

7/19/1985

Maintenance warehouse hospitality catalog

 

TX0003374944

 

8/4/1992

Maintenance warehouse hospitality catalog

 

TX0004225062

 

2/14/1996

Maintenance warehouse hospitality catalog

 

TX0004877685

 

10/30/1998

Maintenance warehouse catalog

 

TXu000282175

 

3/20/1987

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0001859414

 

3/13/1986

 

A-2

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Title

 

Registration 
No.

 

Registration 
Date

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0001901887

 

9/10/1986

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0002002558

 

2/13/1987

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0002024492

 

3/4/1987

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0002233221

 

12/11/1987

Paint, plumbing, electrical, hardware wholesale catalog

 

TX0002139758

 

8/3/1987

Maintenance warehouse wholesale catalog

 

TX0003926430

 

9/16/1994

Maintenance warehouse wholesale catalog

 

TX0003926428

 

9/16/1994

Maintenance warehouse wholesale catalog

 

TX0004036245

 

3/30/1995

Maintenance warehouse wholesale catalog

 

TX0004110761

 

8/4/1995

Maintenance warehouse wholesale catalog

 

TX0004523515

 

4/14/1997

Maintenance warehouse wholesale catalog

 

TX0004792730

 

10/30/1998

 

A-3

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