Exhibit 10.16

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 April 12, 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 “First
Priority Note Collateral Agent”) with respect to the 8 1/8% Senior Secured First
Priority Notes due 2019 (the “First Priority Notes”) issued by HD SUPPLY, Inc.,
a Delaware corporation (the “Issuer”) pursuant to the Indenture, dated as of the
date hereof (as amended pursuant to the 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 “First Priority Notes
Indenture”), among the Issuer, 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 “First Priority Note Collateral Agreement”), among the Issuer,
certain Subsidiaries of the Issuer and the First Priority Note Collateral Agent,
each Grantor granted to the First Priority 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 First Priority Notes
Indenture, each Grantor agrees, for the benefit of the First Priority Note
Collateral Agent, 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 provided by reference in the First Priority Notes
Indenture and the First Priority Note 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 First Priority 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

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Note Security Document in any right, title or interest of such Grantor under or
in any Copyright Licenses with Persons other than the Issuer, 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 First Priority Note Collateral Agreement with the United States Copyright
Office. This Agreement is expressly subject to the terms and conditions of the
First Priority Note Collateral Agreement. The First Priority Note Collateral
Agreement (and all rights and remedies of the First Priority 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 First Priority Note Collateral Agent
with respect to the security interest in the Copyrights are fully set forth in
the First Priority Notes Indenture and the First Priority Note 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.

* * *

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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/ Vidya Chauhan

  Name:   Vidya Chauhan   Title:   Vice President

 

FIRST LIEN SECURED NOTE GRANT OF SECURITY INTEREST IN COPYRIGHTS

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WILLIAMS BROS. LUMBER COMPANY, LLC By:  

/s/ Vidya Chauhan

  Name:   Vidya Chauhan   Title:   Vice President

 

FIRST LIEN SECURED NOTE GRANT OF SECURITY INTEREST IN COPYRIGHTS

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HDS IP HOLDING, LLC By:  

/s/ Ricardo Nunez

  Name:   Ricardo Nunez   Title:   Vice President

 

FIRST LIEN SECURED NOTE GRANT OF SECURITY INTEREST IN COPYRIGHTS

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WILMINGTON TRUST, NATIONAL ASSOCIATION, as First Priority Note Collateral Agent
By:  

/s/ Jane Schweiger

  Name:   Jane Schweiger   Title:   Vice President

 

FIRST LIEN SECURED NOTE NOTICE AND CONFIRMATION OF GRANT OF SECURITY INTEREST IN
COPYRIGHTS

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Schedule A

Copyrights

Creative Touch Interiors, Inc.

 

Title

   Registration No.      Registration Date

NL-16

     VA 1-048-833       3/27/2000

HDS IP Holding, LLC

 

Title

   Registration No.      Registration Date

Powerscope

     TX 7-364-190       3/5/2009

WaterCity

     VA 1-708-882       8/5/2008

Williams Bros. Lumber Company, LLC

 

Title

   Registration No.      Registration Date

Architectural millwork sales catalog

     TX 3-036-953       3/5/1991

 

A-1