Exhibit 10.36

 

EXECUTION VERSION

 

SECOND LIEN SECURED NOTE NOTICE AND CONFIRMATION OF GRANT OF SECURITY INTEREST
IN TRADEMARKS

 

THIS SECOND LIEN SECURED NOTE NOTICE AND CONFIRMATION OF GRANT OF SECURITY
INTEREST IN TRADEMARKS (this “Agreement”), dated as of December 4, 2014, 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 “Second Priority Note Collateral Agent”) with respect to the
11% Senior Secured Second Priority Notes due 2020 (the “Second Priority Notes”)
issued by HD SUPPLY, Inc., a Delaware corporation (the “Issuer”) pursuant to the
Indenture, dated as of April 12, 2012 (as amended pursuant to the First
Supplemental Indenture, dated as of April 12, 2012, and as further amended,
amended and restated, waived, supplemented or otherwise modified from time to
time, the “Second 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 April 12, 2012 (as
amended, amended and restated, waived, supplemented or otherwise modified from
time to time, the “Second Priority Note Collateral Agreement”), among the
Issuer, certain Subsidiaries of the Issuer and the Second Priority Note
Collateral Agent, each Grantor granted to the Second Priority Note Collateral
Agent a security interest in its Intellectual Property, including Trademarks;
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 Second Priority Notes
Indenture, each Grantor agrees, for the benefit of the Second 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 Second Priority Notes
Indenture and the Second Priority Note Collateral Agreement.

 

SECTION 2. Confirmation of Security Interest. Each Grantor hereby confirms that
pursuant to the Second Priority Note Collateral Agreement, subject to existing
licenses to use the Trademarks granted by such Grantor in the ordinary course of
its business, it granted to the Second Priority Note Collateral Agent, for the
benefit of the Secured Parties, a security interest in all of the Trademarks 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 Trademarks, 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

 

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any Trademark 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 thereto would result in a breach,
default or termination of such Trademark 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 Second Priority Note Collateral Agreement with the United States Patent and
Trademark Office. This Agreement is expressly subject to the terms and
conditions of the Second Priority Note Collateral Agreement. The Second Priority
Note Collateral Agreement (and all rights and remedies of the Second 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 Second Priority Note Collateral Agent
with respect to the security interest in the Trademarks are fully set forth in
the Second Priority Notes Indenture and the Second 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.

 

* * *

 

[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.

 

 

 

 

 

HD SUPPLY FACILITIES MAINTENANCE, LTD.

 

By:

HD Supply GP & Management, Inc.,

 

 

its general partner

 

 

 

 

 

 

 

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

 

[SIGNATURE PAGE—SECOND LIEN NOTICE AND CONFIRMATION OF GRANT OF SECURITY
INTEREST IN TRADEMARKS]

 

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WILMINGTON TRUST, NATIONAL ASSOCIATION

 

As Note Collateral Agent

 

 

 

 

 

By:

/s/ Lynn M. Steiner

 

 

Name:

Lynn M. Steiner

 

 

Title:

Vice President

 

[SECOND LIEN SECURED NOTE NOTICE AND CONFIRMATION OF GRANT OF SECURITY INTEREST
IN TRADEMARKS]

 

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Schedule A

 

Trademarks

 

HD Supply Facilities Maintenance, Ltd.

 

TRADEMARK

 

Status

 

Ser. No./Reg. 
No.

 

App. Date/Reg. 
Date

MAINTENANCE WAREHOUSE

 

Registered

 

RN: 4,610,425

 

9/23/2014

MAINTENANCE WAREHOUSE

 

Registered

 

RN: 4,375,851

 

7/30/2013

MAINTENANCE WAREHOUSE & Design

 

Registered

 

RN: 4,376,494

 

7/30/2013

MAINTENANCE WAREHOUSE & Design

 

Registered

 

RN: 4,606,259

 

9/16/2014

 

HDS IP Holding, LLC

 

TRADEMARK

 

Status

 

Ser. No./Reg. 
No.

 

App. Date/Reg. 
Date

ASPEN & Design

 

Registered

 

RN: 4,461,343

 

1/7/2014

CREATIVE TOUCH INTERIORS

 

Registered

 

RN: 4,406,141

 

9/24/2013

VISTRA & Design

 

Registered

 

RN: 4,392,346

 

8/27/2013

HD SUPPLY HARDWARE SOLUTIONS(1)

 

Registered

 

RN: 114-257

 

3/4/2014

AQUAGUARD 5 STEP POOL CARE SYSTEM & Design

 

Registered

 

RN: 4,535,768

 

05/27/2014

BRIGHTON MANOR

 

Registered

 

RN: 4,129,736

 

4/17/2012

BRIGHTON MANOR & Design

 

Registered

 

RN: 4,535,779

 

5/27/2014

GREENBLOGIC

 

Registered

 

RN: 4,155,442

 

6/5/2012

GRIDADVANCE

 

Registered

 

RN: 4,538,054

 

5/27/2014

MAINTENANCE WAREHOUSE

 

Pending

ITU

 

SN: 86/303,044

 

6/6/2014

MAINTENANCE WAREHOUSE

 

Pending

 

SN: 86/424,236

 

10/15/2014

PROUDLY DRIVEN BY A VETERAN

 

Pending

 

SN: 86/320,061

 

6/25/2014

RELIA+

 

Pending

ITU

 

SN: 86/436,537

 

10/28/2014

RELIA+

 

Pending

ITU

 

SN: 86/436,545

 

10/28/2014

RELIA+

 

Pending

ITU

 

SN: 86/436,549

 

10/28/2014

 

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(1) This trademark is registered in the State of Alabama.

 

A - 1

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RELIACARE

 

Registered

 

RN: 4,492,443

 

3/4/2014

SEASONS

 

Pending

ITU

 

SN: 86/373,220

 

8/21/2014

SEASONS

 

Pending

ITU

 

SN: 86/373,226

 

8/21/2014

SEASONS

 

Pending

ITU

 

SN: 86/435,093

 

10/27/2014

SEASONS

 

Pending

ITU

 

SN: 86/435,138

 

10/27/2014

SPEEDBUILD

 

Allowed

 

SN: 86/160,304

 

1/8/2014

SPEEDBUILD

 

Allowed

 

SN: 86/160,701

 

1/8/2014

TRUESTOCK

 

Pending

ITU

 

SN: 86/373,181

 

8/21/2014

TRUESTOCK

 

Pending

ITU

 

SN: 86/373,202

 

8/21/2014

TRU PERSPECTIVE

 

Pending

ITU

 

SN: 86/309,319

 

6/13/2014

WE BUILD YOUR CITY AND KEEP IT RUNNING

 

Registered

 

RN: 4,374,791

 

7/30/2013

 

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